To,
The Members,
Your directors have pleasure in presenting the 25th Annual Report on the business and operations of the Company, together with the audited accounts for the financial year ended March 31, 2026.
FINANCIAL RESULTS
The Audited Financial Statements of your Company as on March 31, 2026, are prepared in accordance with the relevant applicable Indian Accounting Standards ("Ind AS") and Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") and the provisions of the Companies Act, 2013 ("Act"):
Financial performance of the Company is summarised in the table below:
| Particulars | Standalone | Consolidated | ||
| 2025-26 | 2024-25 | 2025-26 | 2024-25 | |
| Revenue from Operations including other Income | 9218.93 | 7,775.24 | 9218.93 | 7,778.96 |
| Less Expenses: | ||||
| Cost of goods sold | 5572.34 | 4,718.55 | 5572.34 | 4,718.55 |
| Employee benefits Expenses | 1520.93 | 1,229.16 | 1520.93 | 1,229.16 |
| Finance cost | 48.25 | 43.82 | 48.26 | 43.82 |
| Depreciation and Amortisation expenses | 307.43 | 279.85 | 307.43 | 279.85 |
| Other Expenses | 900.67 | 709.92 | 900.20 | 710.00 |
| Total Expenses | 8349.62 | 6,981.30 | 8349.16 | 6,981.38 |
| Profit before exceptional items and tax | 869.31 | 793.94 | 869.77 | 797.58 |
| Profit before tax | 869.31 | 793.94 | 869.77 | 797.58 |
| Tax expense | 204.96 | 187.45 | 205.21 | 187.64 |
| Net Profit for the year | 664.35 | 606.49 | 664.56 | 609.94 |
| Net profit attributable to - | ||||
| Owners of the Holding Company | 664.35 | 606.49 | 664.56 | 609.94 |
The standalone revenue from operations increased from 7,775.24 million to 9,218.93 million, an increase of 18.57 % over the previous financial year notwithstanding challenging business environment. The standalone Profit After Tax increased from 606.49 million to 664.35 million, an increase of 9.54% over the previous financial year. The standalone EPS of your company increased from 29.03 to 31.59 in the current year.
The consolidated EBITDA of your company grew at a faster pace in the current year registering a growth of 25.7% over the previous year.
TRANSFER TO RESERVES
The Company has transferred 21.96 million to General reserve for the financial year ended March 31, 2026.
DIVIDEND
Based on the Companys performance and keeping in mind the shareholders interest, the Directors recommend a dividend of 6.30/- per equity share (126%) on the fully paid-up equity shares of 5/- each of the Company, for the year 2025-26. The dividend on equity shares is subject to the Shareholders approval at the ensuing Annual General Meeting (AGM). The
Record Date for the purpose of payment of dividend for the financial year ended March 31, 2026, is Thursday, July 16, 2026.
BUYBACK OF SHARES
The Board of Directors of the Company, at its meeting held on April 17, 2026, approved the buyback of fully paid-up equity shares of face value of 5 each ("Equity Shares") for an aggregate amount not exceeding 47,00,00,000 (Rupees Forty-Seven Crore Only), at a price of 1,000 per Equity Share ("Buyback Price"), payable in cash, from the equity shareholders/ beneficial owners of the Equity Shares of the Company, other than the promoters, members of the promoter group and persons in control of the Company, through the tender offer route by way of the stock exchange mechanism, in accordance with the provisions of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended ("Buyback Regulations"). The offer size of the Buyback was 9.80% and 9.80% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on audited standalone and consolidated basis, respectively as on March 31, 2025. The buyback process was completed on May 14, 2026 and 4,70,000 shares were extinguished on May 18, 2026.
DIVIDEND DISTRIBUTION POLICY
The Company had adopted a Dividend Distribution Policy that sets out the parameters and circumstances that will be taken into account by the Board in determining the distribution of dividend to its shareholders and/or retaining profits earned by the
Company. The policy is available on the website of the Company at the weblink: -
https://windlas.com/wp-content/uploads/2021/11/
Dividend-Distribution-Policy.pdf
EMPLOYEES STOCK OPTIONS SCHEME
a) ESOP 2021 Scheme:
The Board of Directors of the Company at its meeting held on April 16, 2021, had approved introduction of the Windlas Biotech Limited Employees Stock Option Scheme 2021 ("ESOP 2021"/ "Plan") for the benefit of the present and future employees of the Company. Each Option when exercised would be converted into one equity share of 5/- each fully paid-up.
The options granted shall vest not later than 5 (five) years from the date of grant of such options. Number of Options that may be granted to an employee under the "ESOP 2021" shall not exceed one-fifth of the total number of Options reserved under the "ESOP 2021" in aggregate per employee or any such ceiling number of options as may be determined by the Committee within such limit with respect to an individual employee.
The Company has obtained in-principle approval for listing upto a maximum of 331,696 equity shares of 5/- each of Windlas Biotech Limited to be allotted pursuant to options granted prior to listing of the Company under ESOP 2021 vide approval letter dated June 24, 2022 and June 27, 2022 from NSE and BSE, respectively.
Disclosure under SEBI ("Share Based Employees Benefits and Sweat Equity) Regulations, 2021 (SBEB 2021 Regulations") regarding details of the "ESOP 2021" is given below.
| Date of Shareholders Approval of the Scheme | April 17, 2021 (prior to the IPO) |
| Total number of options approved under the Scheme | 546,222 |
| Number of options Granted | 419,439 (Options granted on May 3, 2021) |
| Vesting of Options | Options granted under Plan shall vest not earlier than 1 (One) year and not later than maximum Vesting Period of 5 (five) years from the date of Grant. |
| Exercise Price/ Pricing Formula | 275.35 (The fair value of option has been determined using Black-Scholes option pricing model) |
| Maximum period within which the grant shall be vested | 5 (Five) years from the date of Grant |
| Number of Options lapsed during the Year | 0 (Nil) |
| Number of Options outstanding as on March 31, 2026 | 48,784 |
Employee-wise detail of options granted to:
| i. Key managerial personnel (KMP) | KMP | Options granted |
| Mrs. Komal Gupta | 41,183 | |
| Mr. Mohammed Aslam | 19,862 | |
| Mr. Om Prakash Sule | 17,602 | |
| Mr. Pawan Kumar Sharma | 17,020 | |
| Mr. Ananta Narayan Panda | 1,365 | |
| ii. Any other employee who received a grant in any one year of options amounting to 5% or more of the options granted during the year | Nil | |
| iii. Identified employees who were granted options during any one year equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of our Company at the time of grant | Nil |
b) ESOS 2023 Scheme:
The Nomination and Remuneration Committee and the Board of Directors of your Company in their meeting held on August 8, 2023, had approved introduction of "WBL Employee Stock Option Scheme 2023 ("ESOS 2023") for the benefit of present and future eligible employees of the Company. Each Options when exercised would be converted into one equity shares of 5 (Rupees five) each fully paid-up.
The Company has obtained in-principle approval for listing upto a maximum of 315,000 equity shares of 5/- each of Windlas Biotech Limited to be allotted pursuant to options granted under ESOS 2023 vide approval letter dated October 6, 2023 and October 10, 2023 from NSE and BSE, respectively.
Disclosure under SEBI ("Share Based Employees Benefits and Sweat Equity) Regulations, 2021 (SBEB 2021 Regulations") regarding details of the "ESOS 2023" is given below.
| Date of Shareholders Approval of the Scheme | September 12, 2023 |
| Total number of options approved under the Scheme | 315,000 |
| Number of options Granted | 307,750 (Options granted on October 17, 2023) |
| Vesting of Options | Options granted under ESOS 2023 shall vest not earlier than 1 (One) year and not later than 4 (four) years from the date of Grant. |
| Exercise Price/ Pricing Formula | A discount of upto 25% is applied on the Market Price of the Share to arrive at the exercise price on the date of grant of options by the Nomination and Remuneration Committee of the Board of Directors. |
| Maximum period within which the grant shall be vested | 4 (Four) years from the date of Grant |
| Number of Options lapsed during the Year | 2,250 |
| Number of Options outstanding as on March 31, 2026 | 247,880 |
Employee-wise detail of options granted to:
| i. Key managerial personnel (KMP) | KMP | Options granted |
| Mrs. Komal Gupta | 167,000 | |
| Mr. Mohammed Aslam | 25,000 | |
| Mr. Om Prakash Sule | 5,000 | |
| Mr. Pawan Kumar Sharma | 15,000 | |
| Mr. Ananta Narayan Panda | 1,500 |
| ii. Any other employee who received a grant in any one year of options amounting to 5% or more of the options granted during the year | Name | Options granted |
| Mr. Roshan Mon | 25,000 | |
| iii. Identified employees who were granted options during any one year equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of our Company at the time of grant | Nil |
c) Windlas Plan 2025:
The Nomination and Remuneration Committee and the Board of Directors of your Company in their meeting held on May 22, 2025, had approved introduction of "Windlas Plan 2025" (the "Plan") for the benefit of present and future eligible employees of the Company. The Plan proposes the grant of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) to eligible employees. Each Unit when exercised would be converted into one equity share of Rs. 5 /- (Rupees Five) each fully paid-up.
The Company has obtained in-principle approval for listing upto a maximum of 590,250 equity shares of 5/- each of Windlas Biotech Limited to be allotted pursuant to Units granted under the Plan vide approval letter dated September 9, 2025 from both NSE and BSE.
Disclosure under SEBI ("Share Based Employees Benefits and Sweat Equity) Regulations, 2021 (SBEB 2021 Regulations") regarding details of the "Plan" is given below.
| Date of Shareholders Approval of the Scheme | July 28, 2025 |
| Total number of options approved under the Scheme | 590,250 |
| Number of options Granted | 5,70,500 (Options granted on September 15, 2025) |
| Vesting of Options | Subject to fulfilling conditions specified in the above said Plan and the Grant Letters in respect of the "Restricted Stock Units" ("RSUs") or "Performance Stock Units" ("PSUs"), the Units granted shall vest in four equal instalments of 25% each on the expiry of 12, 24, 36 and 48 months respectively from the effective date of grant of Units. |
| Exercise Price/ Pricing Formula | The said Units shall be granted at a price of Rs. 5/- i.e at face value of equity share of the Company. |
| Maximum period within which the grant shall be vested | Subject to fulfilling conditions specified in the Plan, vested Units can be exercised within a period of four years from the date of vesting. |
| Number of Options lapsed during the Year | 1,500 |
| Number of Options outstanding as on March 31, 2026 | 5,69,000 |
Employee-wise detail of options granted to:
| i. Key managerial personnel (KMP) | KMP | Options granted |
| Mrs. Komal Gupta | 3,15,000 | |
| Mr. Om Prakash Sule | 7,500 | |
| Mr. Pawan Kumar Sharma | 20,000 | |
| Mr. Ananta Narayan Panda | 1,000 | |
| ii. Any other employee who received a grant in any one year of options amounting to 5% or more of the options granted during the year | Nil | |
| iii. 1 dentified employees who were granted options during any one year equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of our Company at the time of grant | Nil |
ESOP Expenses for the year ended March 31, 2026 is 166.11 million (Refer Note 30 of Standalone Financial Statements). The options vested under "ESOP 2021", "ESOS 2023" and "Windlas Plan 2025" can be exercised within the period of 4 (Four) years from the date of vesting. There are 305,310 potential equity shares arising out of ESOPS/ Units for the year ended March 31, 2026 and the same has been considered for diluted earning per shares.
All ESOP schemes/ Windlas Plan 2025 are in compliance with the SBEB 2021 regulations. The Company has received a certificate from M/s Sandeep Joshi & Associates, Secretarial Auditor of the Company, certifying that the schemes are implemented in accordance with the SBEB 2021 Regulations. The certificate is available for inspection by members in electronic mode. Details of ESOPs/ Units granted and vested are provided in the notes (Refer Note 45 to the Standalone Financial Statements).
During the year, the Company has allotted 1,46,918 shares of 5/- each, pursuant to exercise of stock options by the eligible employees of the Company, under the Windlas Biotech Limited Employees Stock Option Scheme 2021 and WBL Employee Stock Option Scheme 2023. As a result of such allotment, the paid-up share capital increased from 10,47,96,555 (comprising of 2,09,59,311 equity share of 5/- each) as on March 31, 2025 to 10,55,31,145 (comprising of 2,11,06,229 equity share of 5/- each) as on March 31, 2026. Except as stated herein, there was no other change in the share capital of the Company.
FINANCIAL STATEMENTS
In accordance with the General Circulars issued by the Ministry of Corporate Affairs dated April 8, 2020, April 13, 2020, May 5, 2020, January 13, 2021, December 28, 2022, September 25, 2023, September 19, 2024 and September 22, 2025 ("MCA Circulars"), read with Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Annual Report for FY 2025-26 containing, inter alia, the Standalone and Consolidated Financial Statements, including the Balance Sheet, Statement of Profit and Loss and notes thereto prepared in accordance with Ind AS, the Boards Report, Management Discussion and Analysis Report and Corporate Governance Report, is being sent only through electronic mode to those Members whose e-mail addresses are registered with the Company, the Depository Participants and/or the Registrar and Share Transfer Agent.
The Annual Report 2025-26 is also available at the Companys website at: https://windlas.com/financial- information/annual-report/
CONSOLIDATED FINANCIAL STATEMENTS
In compliance with the applicable provisions of Act including the Accounting Standard Ind AS 110 on Consolidated Financial Statements, this Annual Report also includes Consolidated Financial Statements for the financial year 2025-26. Consolidated Turnover was 9218.93 million as against 7778.96 million in the previous year. Net Profit after Tax (after minority interest) for the year stood at 664.56 million as against 609.94 million in the previous year.
Pursuant to the provisions of the Companies Act, 2013 and Regulation 33 of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015 ("Listing Regulations") and applicable Accounting Standards, the Audited Consolidated Financial Statements of the Company for the 2025-26, together with the Auditors Report, form part of this Annual Report.
OPERATIONS AND BUSINESS PERFORMANCE
Kindly refer to Management Discussion & Analysis and Corporate Governance Report which forms part of this report.
CHANGE IN NATURE OF BUSINESS
During the year under review there is no change in nature of business of the Company.
CREDIT RATING
ICRA Limited, i.e. the Credit Rating Agency has reaffirmed the long-term rating of the Company to [ICRA] A+ (pronounced ICRA A plus) ("Rating") and short-term rating at [ICRA] A1 for facilities of the Company as per their letter dated April 7, 2025.
DIRECTORS
Pursuant to Section 149, 152 and other applicable provisions of the Companies Act, 2013, one third of such of the Directors as are liable to retire by rotation, shall retire every year and, if eligible, offer themselves for re-appointment at every AGM. Accordingly, Mr. Hitesh Windlass (DIN: 02030941) and Mrs. Prachi Jain Windlass (DIN:06661073), Directors of the company will retire by rotation at the ensuing AGM, and being eligible, offered themselves for re-appointment in accordance with provisions of the Act. The Board of Directors on the recommendation of the Nomination and Remuneration Committee ("NRC") has recommended their re-appointment.
Mr. Srinivasan Venkataraman (DIN: 01132306),
Independent Director of the Company, ceased to be a Director of the Company upon completion of his first term on May 6, 2026. Consequently, he also ceased to be a member/chairman of the Committees.
The Board of Directors of the Company, based on the recommendation of the NRC Committee, appointed Dr. Tarashree Singhal (DIN:11697518) as an Additional Director/ Independent Woman Director, designated as an Independent Director, with effect from May 5, 2026. The Board of Directors has recommended the appointment of Dr. Tarashree Singhal as an
Independent Director of the Company for approval by the shareholders at the ensuing AGM.
A brief resume of the Directors being appointed/ re-appointed, the nature of expertise in specific functional areas, names of companies in which they hold directorships, committee memberships/ with chairmanships, their shareholding in the Company, etc., have been furnished in the explanatory statement to the notice of the ensuing AGM.
Your Company has received declarations from all the Independent Directors confirming that they meet with the criteria of independence as prescribed both under sub-section (6) of Section 149 of the Act and Regulation 16(1)(b) of the SEBI Listing Regulations and there has been no change in the circumstances which may affect their status as an Independent Director.
In terms of section 2(77) of the Act including Rules made thereunder, Mr. Ashok Kumar Windlass, Whole Time Director, Mr. Hitesh Windlass, Managing Director, Mr. Manoj Kumar Windlass, Joint Managing Director and Mrs. Prachi Jain Windlass, Non-Executive NonIndependent Director are related to each other.
KEY MANAGERIAL PERSONNEL
The Key Managerial Personnel (KMP) in the Company as per Section 2(51) and 203 of the Act are as follows:
Mr. Ashok Kumar Windlass, Whole time Director;
Mr. Hitesh Windlass, Managing Director;
Mr. Manoj Kumar Windlass, Joint Managing Director;
Mr. Pawan Kumar Sharma, Executive Director;
Mrs. Komal Gupta, Chief Executive Officer & Chief Financial Officer;
Mr. Ananta Narayan Panda, Company Secretary & Compliance Officer.
Mr. Ashok Kumar Windlass (DIN: 00011451) was reappointed by the Board of Directors as a Whole-time Director with effect from May 3, 2026, for a term up to May 2, 2031. His re-appointment was approved by the Shareholders through a Postal Ballot on March 19, 2026.
Policy on Directors Appointment and Policy on Remuneration
Pursuant to Section 134(3)(e) and Section 178(3) of the Companies Act. 2013, the policy on appointment of Board members including criteria for determining qualifications, positive attributes, independence of a director and the policy on remuneration of directors,
KMP and other employees is disclosed in the Corporate Governance Report which is part of the Annual Report. The same are also available on the website of the Company at:-
https://windlas.com/wp-content/uploads/2025/04/ Nomination-and-Remuneration-Policy Ver-1 -1.pdf
Performance Evaluation of the Board, its Committees and Individual Directorsb>
In accordance with the applicable provisions of the Act and the Listing Regulations, the Board, in consultation with its Nomination and Remuneration Committee, has formulated a framework containing, inter-alia, the criteria for performance evaluation of the entire Board of the Company, its Committees and individual directors, including Independent Directors. The framework is monitored, reviewed and updated by the Board, in consultation with the Nomination and Remuneration Committee, based on need and new compliance requirements.
The annual performance evaluation of the Board, its Committees and each Director has been carried out for the Financial year 2025-26 in accordance with the framework. The details of evaluation process of the Board, its Committees and individual directors, including independent directors have been provided under the Corporate Governance Report which forms part of this Report.
Directors Responsibility Statement
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:
a) in the preparation of the Annual Accounts for the financial year ended March 31, 2026, the applicable accounting standards have been followed. There are no material departures from the applicable accounting standards;
b) 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 on March 31, 2026 and of the profit of the Company for that period;
c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors had prepared Annual Accounts on a going concern basis;
e) the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;
f) the Directors had devised proper system to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS
Your Company lays emphasis on human resources and caring for them at all levels. Your Company enjoyed harmonious relationships with workers and staff during the year under review and consider them their most important assets. Your Company is concerned for its people, customers, suppliers, and community at large which reflects in the Companys policy, programs and development efforts. As on March 31, 2026, your company had 1385 permanent employees. Your Company is committed to build and strengthen the human capital by defining policies that support their growth, goals, and help them achieve excellence. Various trainings, seminars and workshops were conducted during the year to train employees and enhance their overall performance.
PARTICULARS OF EMPLOYEES / MANAGERIAL REMUNERATION
The information required under Section 197 of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:
a) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year:
| Directors | Ratio to Median Remuneration |
| Mr. Vivek Dhariwal* | 1.37 |
| Mr. Ashok Kumar Windlass | 41.79 |
| Mr. Hitesh Windlass | 77.52 |
| Mr. Manoj Kumar Windlass | 77.52 |
| Mr. Pawan Kumar Sharma | 20.28 |
| Mrs. Prachi Jain Windlass | Nil |
| Mr. Srinivasan Venkataraman* | 1.50 |
| Mr. Gaurav Gulati* | 1.37 |
*The Independent Directors have only been paid sitting fee during the year.
b) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:
| Directors, Chief Executive Officer, Chief Financial Officer and Company Secretary | % increase in remuneration in the financial Year |
| Mr. Vivek Dhariwal* | 45.33 |
| Mr. Ashok Kumar Windlass | Nil |
| Mr. Hitesh Windlass** | 64.21 |
| Mr. Manoj Kumar Windlass** | 64.21 |
| Mr. Pawan Kumar Sharma | 19.47 |
| Mrs. Prachi Jain Windlass | Nil |
| Mr. Srinivasan Venkataraman* | 33.71 |
| Mr. Gaurav Gulati* | 42.99 |
| Mrs. Komal Gupta (CEO & CFO) | 28.58 |
| Mr. Ananta Narayan Panda (Company Secretary) | 13.93 |
* Mr. Vivek Dhariwal, Mr. Srinivasan Venkataraman and Mr. Gaurav Gulati are Independent Directors and they have been paid only sitting fee during the year.
**Remuneration includes commission paid/payable to Mr. Hitesh Windlass (Managing Director) and Mr. Manoj Kumar Windlass (Joint Managing Director) during the year.
c) Percentage increase in the median remuneration of employees in the financial year: 11.00 %
d) Number of permanent employees on the rolls of Company: 1385
e) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstance for increase in managerial remuneration:
Average percentile increase in salary of employees other than managerial personnel was 9.07 % Average percentile increase in managerial remuneration was 35.61% in 2025-26 over 202425.
f) Affirmation that the remuneration is as per the Remuneration policy of the Company:
The Company affirms that the remuneration paid is as per the Remuneration policy of the Company.
g) A statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate Annexure forming part of this Report. Further, the Report and the Accounts are being sent to the Members excluding the aforesaid Annexure. In terms of Section 136 of the Act, the said Annexure is open for inspection at the Registered Office of the Company. Any Shareholder interested in obtaining a copy of the same may write to the Company Secretary.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY
There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of this Boards Report.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Pursuant to the provisions of Section 138 of the Companies Act, 2013, read with the applicable rules framed thereunder, the Board has approved the appointment of Deloitte Touche Tohmatsu India Limited Liability Partnership, Chartered Accountants having FRN: AAE-8458 (DTTILLP) as an Internal Auditor of the Company for the financial year 2026-27.This appointment is in place of M/s Deloitte Haskins & Sells (DHS), who were the Internal Auditor of the Company for the financial year 2025-26. The Board places on records its sincere appreciation for the professional services and valuable contributions made by DHS during its tenure. Design and operating effectiveness of process controls on financial transactions is also audited by ourin house internal audit team. The audit is based on an internal audit plan, which is reviewed each year in consultation with the Statutory auditors and approved by the Audit Committee.
The Companys internal control system is designed to consider the scope, type, and magnitude of its operations. The Audit Committee provides additional oversight related to financial risks and controls, while both the Board of Directors and Audit Committee oversee the internal financial controls to ensure their adequacy and efficiency. To address these matters, the Audit Committee periodically holds meetings with the statutory auditor and the management of the Company. The internal control system ensures optimal utilization of the Companys resources and adherence to compliance standards.
Internal controls play a crucial role in safeguarding a companys assets, ensuring compliance with regulations, and minimizing risks. These controls encompass processes and procedures that help maintain the integrity and reliability of the organizations systems.
The Internal Auditor periodically audits the adequacy and effectiveness of the internal controls laid down by the management and suggests improvements.This ensures that all Assets are safeguarded and protected against loss from unauthorised use or disposition and that the transactions are authorised, recorded and reported diligently. Your Companys internal control systems are commensurate with the nature and size of its business operations. Internal Financial Controls are evaluated, and Internal Auditors Reports are regularly reviewed by the Audit Committee of the Board.
The company has an internal audit department to ensure that all operations comply with prescribed business standards through regular monitoring. The internal audit team of the Company supervises internal processes and recommends necessary changes to correct any deviations from established practices. Strict monitoring and effective reviews ensure high compliance with the rules and regulations that govern the Company. The internal audit team of the Company has necessary skills and experience, and it reports to the Chairman of the Audit Committee and the Managing Director of the Company. The audit committee recommends annual Risk-Based Audit Plan (RBAP) for conducting internal audit. The internal audit is conducted based on this approved plan, and any identified gaps in the internal control system are communicated to process owners and management for necessary action.
Statutory Auditors Report on Internal Financial Controls as required under clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 is annexed with the Independent Auditors Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report with detailed review of operations, performance and future outlook, as stipulated under Regulation 34 read with Schedule V to the Listing Regulations is presented in a separate section forming part of this Annual Report.
RELATED PARTY TRANSACTIONS
The Company has a policy on Materiality of Related Party Transactions and has been uploaded on the website of the company which can be found on https:// windlas.com/wp-content/uploads/2021/05/Policy-on- Materialitv-of-related-party.pdf
All related party transactions that were entered into during the 2025-26 were on an arms length basis and were in the ordinary course of the business. There are no materially significant related party transactions made by the Company with Promoters, Key Managerial Personnel or other designated persons which may have potential conflict with interest of the Company at large.
All related party transactions are presented to the Audit Committee. Omnibus approval is obtained for the transactions which are foreseen and repetitive in nature. A statement of all related party transactions is presented before the Audit Committee on quarterly basis, mentioning the nature, value and terms and conditions of transactions. The details of Related party transactions are provided in the accompanying financial statements.
As all related party transactions entered into by the Company were in ordinary course of business and were on an arms lengths basis, Form AOC-2 is not applicable to Company.
CORPORATE GOVERNANCE
The Company is committed to ensuring good governance practices while protecting the interest of the shareholders by using extreme care, skill and diligence in the business.
The report on Corporate Governance as stipulated under the Listing Regulations forms part of the Annual Report.
A certificate from M/s Sandeep Joshi & Associates, Company Secretary regarding compliance of the conditions of Corporate Governance, as stipulated under Schedule V of the Listing Regulations is attached as Annexure and forms part of the Annual Report.
ANNUAL RETURN
In accordance with Section 92 (3) read with Section 134 (3)(a) of the Act, the Annual Return of the Company as on March 31, 2026 is available in the prescribed format on the Companys website at the link: https://windlas. com/annual-return/
NUMBER OF MEETINGS OF THE BOARD
During the Financial Year ended on March 31, 2026, 4 (Four) Board Meetings were held. Further, details of the meetings of the Board are given in Corporate Governance Report, forming part of Annual report. Further, maximum interval between two meetings of the Board of the Directors has not exceeded 120 days.
DEPOSITS
Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 and no amount on account of principal or interest on public deposits was outstanding as on March 31, 2026.
The Company does not have any deposits which are not in compliance with the requirements of Chapter V of the Companies Act, 2013.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
In accordance with the provisions of Section 186 of the Act, the details of Loans, Guarantees and Investments made by the Company as at March 31, 2026 are given in the notes to the Financial Statements.
CORPORATE SOCIAL RESPONSIBILITY
Your Company considers the community as its key stakeholder and endeavours to create economically viable and socially inclusive community. The CSR programmes of the Company are aimed at inclusive development and welfare of the community by carrying out activities primarily related to promoting health care including preventive health care, promoting education and skill development, and animal welfare and environmental sustainability.
Disclosure as per Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 in prescribed form is enclosed as Annexure I to the Directors Report.
During the financial year 2025-26, the Company has spent 13.95 million (2% spend requirement was 12.42 million) towards various CSR activities, in line with the requirements of Section 135 of the Companies Act, 2013 (Act). Details of composition of CSR Committee and Meetings held during 2025-26 are disclosed in the Corporate Governance Report.
SUBSIDIARY/ JOINT VENTURE
The Company had filed an application on March 18, 2026, for the dissolution of Windlas Inc., USA, a wholly owned non-operating subsidiary of the Company, with the Delaware Division of Corporations, pursuant to a resolution passed by the Board of Directors on February 5, 2026. The said wholly owned subsidiary was dissolved with effect from March 31, 2026, and consequently ceased to be a subsidiary of the Company from that date.
The Company has attached along with its financial statements, a separate statement containing the salient features of the financial statements of the said subsidiaries in "Form AOC-1".
During the year under review, the Board of Directors reviewed the affairs of its subsidiary. Also in conformity with Section 134 of the Companies Act, 2013 and Rule 8(1) of the Company (Accounts) Rules, 2014, Notes of Consolidated Financial Statement cover the highlights of performance of subsidiary and its contribution to the overall performance of the Company during the year.
A policy on material subsidiaries has been formulated and is available on the website of the Company at:-
https://windlas.com/wp-content/uploads/2025/03/
Policy-on-Material-Subsidiarie-1st-Amendment-.pdf
FAMILIARISATION PROGRAMME
The Company has a familiarisation programme for its Independent Directors which is imparted at the time of appointment of an Independent Directoron Board as well as on need basis. During the year, the Independent Directors of the Company were familiarised and the details of familiarisation programmes imparted to them are placed on the website of the Company at:-
https://windlas. com/policies/familarization- program- for-independent-directors/
SIGNIFICANT AND MATERIAL ORDERS PASSED BY COURTS, REGULATORS OR TRIBUNALS
There were no significant material orders passed by Courts/ Regulators/ Tribunals which would impact the going concern status of the Company and its future operations.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
The Company persistently promotes ethical behaviour in all its business activities and in line with the best international governance practices. The Company has established a system through which directors, employees and business associates may report unethical behaviour, malpractices, wrongful conduct, fraud, violation of Companys code of conduct without fear of reprisal. Reporting of instances of leak/ suspected leak of any Unpublished Price Sensitive Information is allowed through this vigil mechanism and the Company has made its employees aware of the same.
The policy has also been posted on the Companys website at:
https://windlas.com/wp-content/uploads/2021/05/
Vigil-Mechanism-Policy.pdf
The Audit Committee periodically reviews the existence and functioning of the mechanism. It reviews the status of complaints received, if any, under this policy on a quarterly basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Pursuant to provisions of Section 134 of the Act read with Rule 8(3) of the Companies (Accounts) Rules, 2014 the details of Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo are attached as Annexure II to this report.
STATUTORY AUDITORS
In accordance with the provisions of Section 139 of the Companies Act, 2013, the members at the 24th Annual General Meeting held on July 28, 2025 had approved the appointment of M/s J C Bhalla & Co., Chartered Accountants (Firm Registration Number: 001111N), for a term of 5 (five) years, to hold office till the conclusion of 29th General Meeting, The Auditors Report for 202526 does not contain any qualification, observation, reservation or adverse remark.
The Auditors of the Company have not reported any instances of fraud committed against the Company by its officers or employees as specified under Section 143(12) of the Companies Act, 2013.
COST AUDITORS
In terms of the Section 148 of the Companies Act, 2013 read with the Companies (Cost Record and Audit)
Rules, 2014 the Company is required to maintain cost accounting records and have them audited every year.
The Board has re-appointed M/s. Saurabh Jain and Associates as Cost Auditor of the Company for 2026-27 under Section 148 and all other applicable provisions of the Act.
Shareholders approval is being sought for ratification of the remuneration proposed to be paid to M/s. Saurabh Jain and Associates, Cost Auditor of the Company in respect of Cost Audit for the financial year ending March 31, 2027 as mentioned in the Notice convening the AGM.
The Company has maintained cost records as specified under section 148(1) of the Act.
SECRETARIAL AUDITOR
Pursuant to the provisions of Regulation 24A of the SEBI Listing Regulations and Section 204 of the Act, read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, based on the recommendation of the Audit Committee and the Board of Directors, Members of the Company at the Annual General Meeting held on July 22, 2025, approved the appointment of Mr. Sandeep Joshi, Company Secretary (COP No. 19210), Proprietor of M/s Sandeep Joshi & Associates, Company Secretary, as the Secretarial Auditor of the Company for a term of five (5) consecutive years, commencing from April 1, 2025 until March 31, 2030.
The Secretarial Audit Report for the Financial Year ended March 31, 2026, issued by the Secretarial Auditor, does not contain any qualification, reservation, adverse remark or disclaimer. The said Report is annexed to this Boards Report as Annexure III and forms an integral part of this Report.
During the year under review, the Secretarial Auditor has not reported any fraud under Section 143(12) of the Companies Act, 2013.
Explanation or Comments on disqualifications, reservations, adverse remarks or disclaimers in the auditors reports:
There is no qualification, reservation or adverse remark or disclaimer made by the Auditor in their report. As regards the observations of the Statutory Auditors and the Secretarial Auditor in their Report, the same are self-explanatory and need no clarifications.
DISCLOSURE UNDERTHESEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
Your Company is fully committed to uphold and maintain the dignity of every woman working with the Company. The Company has zero tolerance towards any action on the part of any one which may fall under the ambit of Sexual Harassment at workplace. The Policy framed by the Company in this regard provides for protection against sexual harassment of women at workplace and for prevention and redressal of such complaints.
Internal Complaints Committees (ICC) have been set up to redress complaints received regarding sexual harassment.
Status of the Complaints during 2025-26 is as follows:
| Particulars | No. of Complaints |
| Number of Complaints pending as on Beginning of the Financial Year | Nil |
| Number of Complaints filed during the Financial Year | Nil |
| Number of Complaints pending as on the end of the Financial Year | Nil |
The Company has complied with the provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND GENERAL MEETINGS
The Company has complied with the provisions of Secretarial Standards on Meetings of the Board of Directors (SS-1) and on General Meetings (SS-2) issued by the Institute of Company Secretaries of India.
GENERAL DISCLOSURE
There were no proceedings, filed by the Company or against the Company, pending under the Insolvency and Bankruptcy Code, 2016 as amended, before the National Company Law Tribunal or other Courts as of March 31, 2026.
There is no instance of one-time settlement with any bank or financial institution.
ACKNOWLEDGEMENT
The Directors acknowledge with gratitude and wishes to place on record its appreciation for the dedication and commitment of the Companys employees at all levels which has continued to be our major strength. The enthusiasm and unstinting efforts of the employees have enabled the Company to remain as industry leaders. We place on record our appreciation for the support and co-operation the Company has been receiving from its suppliers, distributors, dealers, business partners, franchisee units and others associated with the Company as its trading partners. The Company looks upon them as partners in its progress and has shared with them the rewards of growth.
| For and on behalf of the Board | |
| Hitesh Windlass | Manoj Kumar Windlass |
| Designation: Managing Director | Designation: Joint Managing Director |
| DIN:02030941 | DIN:00221671 |
| Place: Gurgaon | Place : Dehradun |
| Date: May 21, 2026 | Date: May 21, 2026 |
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