2. Financial & Operational Review:

During the year under review following were the operational performance of the company:

a) Revenue from operations increased from Rs. 17094.20 Lakh to Rs. 24705.14 Lakh in comparison to previous year (according to IND- AS Financial Statements).

b) Net profit of the company has increased from Rs. 152.62 Lacs to Rs. 332.71 Lacs.

c) Finance cost increased from Rs. 166.43 Lacs to Rs. 490.71 Lacs as compared to the previous year.

d) Depreciation and amortization expenses increased from Rs. 105.61 Lakh to Rs. 248.01 Lakh as compared to the previous year.

e) Reserves of the company increased from Rs. 1540.89 lakh to Rs. 1873.73 lakh.

f) Highlights of the performance of the company has been discussed in detail in Management Discussion and Analysis report attached herewith.

3. Dividend:

Based on Company's performance and in order to conserve resources, your directors do not recommend any dividend for the year.

4. Share Capital

As on 31st March, 2026, your Company has Total Paid up Share Capital of Rs. 822.66 Lakh divided into 82,61,600 Equity shares of Rs. 10/- and balance being partly paid shares.

Further after closing of the reporting period, the company at its Board Meeting held on April 09, 2026 allotted 8,00,000 convertible warrants to Mr. Pawan Kumar Garg, Mr. Ankur Garg and Mr. Kunal Garg on preferential basis.

5. Transfer to Reserves

The Board of Directors has decided to retain the entire amount of profit for Financial Year 202526 in the statement of profit and loss.

6. Public Deposits

The Company has not accepted any deposits from the public by invitation during the year.

7. Board of Directors and Key managerial Persons:

During the year under review, Ms. Neelu Kambo (DIN: 11040743) was appointed by the board in its meeting dated 10^th April 2025 as Additional (Independent) Director, her appointment was regularized by the members through postal ballot mechanism on 28^th June 2025.

Further, Mr. Atul Kumar Garg, Whole-time Director (DIN: 00250868) resigned on June 02, 2026 due to personal reasons of advancing age and other pre-occupations which needs personal attention. He confirmed that there were no other material reasons of his resignation. The Executive Committee of Directors took note of and relieved him from his duties on same date.

The necessary disclosures of appointment and resignation were duly made to the BSE Ltd. and necessary compliances were made in this regard.

In addition, Mr. Ankur Garg (DIN: 00616599), Whole-time Director of the Company was reappointed for a term of 5 (five) years by the shareholders on 28^th June 2025 through Postal Ballot exercise.

Pursuant to the provisions of Section 152 of the Companies Act, 2013 and the Articles of Association of the Company Mr. Ankur Garg (DIN: 00616599), Whole-time Director of the Company retires from the Board by rotation, at the ensuing Annual General Meeting (AGM) of the Company and being eligible he has offered himself for re-appointment. The Board recommends the proposal of his re-appointment for consideration of the members at the ensuing AGM of the Company.

8. Declaration from Independent Directors

The company had received the declarations u/s 149(7) of the Companies Act, 2013 from all Independent Directors that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI Listing Regulations. In terms of Regulation 25(8) of the SEBI Listing Regulations the Independent Directors have confirmed that they are not aware of any circumstance or situation which exist or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgement and without any external influence.

In terms of Section 150 of the Companies Act, 2013 read with Rule 6 of the Companies (Appointment and

Qualification of Directors) Rules, 2014, Independent Directors of the Company have confirmed that they have registered themselves with the databank maintained by the Indian Institute of Corporate Affairs.

In the opinion of the Board, all the independent directors on the Board of the Company possess requisite qualifications and attributes of integrity, expertise and experience. They fulfill the conditions specified in the Act read along with the rules made thereunder and are independent of the Management.

9. Director's Responsibility Statemen t:

Pursuant to Section 134 (5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, state the following:

a) that in the preparation of the annual financial statements, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

b) that such accounting policies have been selected and applied consistently and judgment and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31^st March, 2026 and of the profit of the Company for the year ended on that date;

c) that proper and sufficient care has been taken 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) that the annual financial statements have been prepared on a going concern basis;

e) that proper internal financial controls were in place and that the financial control were adequate and were operating effectively;

f) that proper systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.

10. Meetings of the Board:

The Board met Eight (8) times during the financial year ended on 31^st March, 2026. The intervening gap between two meetings was within the period prescribed by the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as "Listing Regulations"). Further the Composition of Board, number and attendance of each director in various Committees of Board is as required in accordance with Secretarial Standard-1 on Board Meetings and Listing Regulations.

11. Board Evaluation:

Regulation 10,19(4) and 20(4) of LODR Regulations mandates that the board shall monitor and review the board evaluation framework. The Companies Act, 2013 states that an annual evaluation needs to be made by the board of its own performance and that of its committees and individual directors, Schedule IV of the Companies Act, 2013 states that the performance evaluation of independent directors shall be done by the entire Board of Directors, excluding the director being evaluated.

The evaluation of all the directors and the Board as a whole was conducted based on the criteria and framework adopted by the Board. The said criteria also contemplate evaluation of the directors based on their performance as director apart from their specific role as independent, non-executive and executive directors as mentioned below: -

a) Executive Director, being evaluated as directors as mentioned above, will also be evaluated on basis of targets/criteria given to them by board from time to time as well as their terms of appointment.

b) Independent Director, as director will be evaluated on meeting their obligations connected with their independence criteria as well as adherence with the requirements of professional conduct, roles, etc. applicable to independent directors as described in the Schedule IV of the Companies Act, 2013.

12. Details of fraud reported by the Auditors under section 143 (12) other than those which are reportable to the Central Government:

No such fraud has been reported under section 143(12) of the Companies Act, 2013.

13. Subsidiary, Associates and Joint Ventures:

During the period under review, the Company had no subsidiary, associates & joint ventures, hence the Company is not required to provide a report on the performance and financial position of each of the subsidiaries, associates and joint venture companies included in the financial statements as required under Companies act, 2013.

14. Particulars of Employees:

The information required pursuant to Section 197 read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is enclosed as Annexure-B which forms part of this report.

Further, there were no employee getting salary in excess of the limit as specified under the provisions of Section 197 (12) of the Companies Act, 2013 read with rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

15. Board and its Committees:

The Board has accepted all recommendations made by the Audit Committee from time to time.

16. Auditors:

A) Statutory Auditors

M/s Mittal Gupta & Co., Chartered Accountants, Kanpur (ICAI FRN No. 001874C) were appointed as Statutory Auditors of the company to hold office for the term of 5 (Five) consecutive years from the conclusion of the 34^th Annual General Meeting of the Company held on 30^th September, 2023 until the conclusion of the 39^th Annual General Meeting of the

Company to be held in the year, 2028. Accordingly, they continued to hold the office of Statutory Auditors of the Company during the financial year under scrutiny.

The Auditors' Report for the Financial Year 2025-2026 does not contain any qualification, reservation or adverse remark requiring clarification or explanation in the Directors' Report.

B) Secretarial Auditors

The Company had appointed Mr. Sarvesh S. Srivastava, Practicing Company Secretaries (Certificate of Practice no. 20291) (Peer Review no. 7108/2025 dt. 14.08.2025) as the Secretarial Auditors of your Company for the period of five years commencing on April 01, 2025, until March 31, 2030 at 36^th AGM held on 30.09.2025. The Secretarial Audit Report is annexed as Annexure -C which forms part of this Report. Further, the Comments made in the Secretarial Auditor's Report are self-explanatory and need no further elucidation.

C) Internal Auditors

Pursuant to provisions of Section 138 read with Rule 13 of Companies (Accounts) Rules 2014, your Company engaged the services of M/s S. N. Saraogi and Associates Chartered Accountants, Kanpur, to conduct the Internal Audit of the functions and activities of the Company for the Financial Year 2025-26.

The Internal Audit Report is placed before the Audit Committee of the Company for its review, at regular intervals.

D) Cost Auditors

Pursuant to section 148 of the Companies Act, 2013, the Board of Directors on the recommendation of the Audit Committee, appointed M/s Hammad Abbas & Co., Cost Accountants (Firm Registration Number 003385) as the Cost Auditors of the company for the Financial Year 2025-26 and has

recommended their remuneration to the Shareholders for ratification at the 36^th Annual General Meeting which was duly approved by shareholders.

M/s Hammad Abbas & Co., Cost Accountants (Firm Registration Number 003385) have confirmed that their appointment is within the limits of the Section 139 of the Companies Act, 2013, and have also certified that they are free from any disqualifications specified under Section 141 of the Companies Act, 2013. The Audit Committee has also received a certificate from the Cost Auditor certifying their independence and arm's length relationship with the Company. The Cost Audit Report for the financial year 2025-26 is being filed with Ministry of Corporate Affairs.

17. Material changes and commitments, affecting financial position of the company occurring between the end of the financial year and the date of the report.

No material change has occurred affecting the financial position of the company between the end of the financial year of the company and date of the report which this Financial Statements relate and the date of this Report. However, one of the Company's manufacturing facilities at 24B, New Sector Industrial area, Mandideep-462046 (M.P.) met with severe fire incident on 03.05.2026 which was duly intimated to Stock Exchange within prescribed time.

The incident has not affected much production capacities of company and the affected plant will be reinstated shortly.

Further, Mr. Atul Kumar Garg, Whole-time Director (DIN: 00250868) stepped down from his position and resigned on 02.06.2026 for reason of his advancing age and other preoccupations requiring personal attention.

In addition, the company has allotted convertible warrants under preferential issue to the promotors on 09.04.2026 after approval of such issuance by the shareholders via Postal Ballot exercise completed on 16.03.2026.

18. Details of significant material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and company's operations in future:

No such order has been passed against the Company.

19. Internal control system and their adequacy & Business risk management:

The Company has adequate system of internal control with reference to the financial statements. All the transactions are properly authorized, recorded and reported to the Management. The internal auditor of the Company checks and verifies the internal control and monitors them in accordance with Accounting Standards for properly maintaining the books of accounts and reporting financial statement.

Our management assessed the effectiveness of the Company's internal control over financial reporting (as defined in Clause 17 of SEBI Regulations, 2015) as of March 31, 2026. The Statutory Auditors of the company has audited the financial statements included in this annual report and has issued an attestation report on our internal control over financial reporting (as defined in section 143 of the Companies Act 2013).

Our Risk Management framework encompasses practices relating to the identification, analysis, evaluation, treatment, mitigation and monitoring of the strategic, operational, and legal and compliance risks to achieving our key business objectives. The details and its terms of reference are set out in the Management Discussion and Analysis which form part of this report.

20. Conservation of Energy, Technology Absorption and Foreign Exchange earnings and outgo:

The Company has taken adequate steps during the year regarding conservation of energy which has resulted in less consumption of electricity. The particulars relating to the Conservation of Energy, Technology absorption, Foreign Exchange Earnings and Outgo as required u/s 134 (3) (m) of the Companies Act, 2013 are enclosed as Annexure- A which forms part of this Report.

21. Corporate Social Responsibility:

CSR in terms of Section 135 and Schedule VII of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility (Rules), 2014 is not applicable to the company for the period under review.

22. Particulars of Loans, Guarantees and Investments:

Details of Loans and Investments have been provided in the financial statement of the company which forms part of this annual report.

23. Related Party Transactions:

All related party transactions that were entered into during the financial year were on arm's length basis and were in the ordinary course of the business. There were no 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. Form AOC-2 is annexed as Annexure -D which forms part of this Report.

24. Corporate Governance:

Your Company has always endeavored to adhere to high standards of Corporate Governance and ensured its compliance in both spirit and law.

A detailed report on Corporate Governance is attached herewith as Annexure-E and forms part of this report.

25. Vigil Mechanism (Whistle Blower Policy):

In pursuant to the provisions of Section 177 (9) & (10) of the Companies Act, 2013 read with Rule 7 of the Companies (Meeting of Board and its Powers) Rules, 2014 and SEBI (Listing Obligations and Disclosures Requirement), 2015, a Vigil Mechanism for directors and employee to report genuine concerns about unethical behavior, actual or suspected fraud or violation of the Company's code of conduct or ethics policy has been established.

26. Annual Return:

The Board of Directors has approved a Code of Conduct which is applicable to the Members of the Board and all employees in the course of day-to-day business operations of the company. The Code has been placed on the Company's website www.standardsurfactants.com . The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place,