DEAR SHAREHOLDERS,

Your Directors have the pleasure of presenting their 86^th Annual Report together with the Audited Financial Statements for the period ended 31^st March 2026.

All India's sugar production for the 2025-26 season is expected to reach 324 lakh tonnes, compared to the previous year's (2024-25) 296 lakh tonnes. There is an increase in overall production. The Government of India in order to control the falling sugar prices has continued the release mechanism for the sale of Sugar and has also maintained the minimum selling price at Rs.31/- per kg.

Our total crushing of sugar cane for the company including both units for the year ending on March 31^st 2026 was 19.51 Lakh MT and the total bagging was 19.97 Lakh quintals of sugar. The Company has produced 993.48 Lakh BLS Ethanol during this year.

The brief financial results of the Company are as shown below:

During this year Company has achieved a recovery of 11.65% at Ugar and 10.68% at Jewargi. The company has earned Profit of Rs. 1361.20 Lakh compared to last year's loss of Rs. (1,624.95) Lakh.

Transfer to Reserve: No amount has been transferred to the Reserve for the Financial Year 2025-26.

DIVIDEND: The board has recommended 10% (Rs. 0.10/- per share) Dividend for this year. (previous year Dividend was nil)

Pursuant to Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 [SEBI Listing Regulations], the Board of Directors of the Company had formulated a Dividend Distribution Policy ('the Policy).

The Policy is available on the Company's website URL:

http: / /web.ugarsugar.com/Investor_Relations/Corporate_%20Announcements/Dividend-Distribution Policy.pdf

OPERATIONS:

SUGAR AT UGAR:

Your Directors expect to procure approximately 25 to 28 Lakh MT of sugarcane at Ugar and Jewargi Units during the crushing season 2026-27. The above figures would be determined after observing the monsoon rains.

Our Company continues to pursue its environmental friendly approach toward Industrial growth. Constant improvements are being made in the process and equipment to minimize the discharge of effluents and emissions.

The Company does not have any outstanding deposits from public.

Further, your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 (“the Act”) and the Companies(Acceptance of Deposits) Rules, 2014 during the financial year 2025-26. Accordingly, there are no unclaimed or unpaid deposits lying with the Company for the year under review. Hence the requirement for furnishing of details of deposits which are not in compliance with Chapter V of the Act is not applicable.

The company has not advanced any loans pursuant to Section 186 of the Companies Act, 2013. The Company has given Corporate Guarantees amounting to Rs.42 Cr. to Karnataka Grameena Bank (KGB Bank). Rs. 20 Cr. from Indian Bank Ltd and Rs. 15 Cr. From The Vishweshwar Sahakari Bank Ltd., Pune, Branch Sangli. Details of the investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements at Note No C.

• Mr. Shishir Shirgaokar (DIN NO- 00166186) aged 81 years, is liable to retire by rotation at this AGM & being eligible offers himself for reappointment. Being a fit and proper person, the Board intends to reappoint him as a Director

• Mrs. Shilpa Kumar (DIN NO- 02404667) aged 59 years, is liable to retire by rotation at this AGM & being eligible offers herself for reappointment. Being a fit and proper person, the Board intends to reappoint her as a Director.

• During the year there are no any changes in KMP appointment.

• All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 46 of SEBI (Listing Obligations and Disclosures Requirements) Regulation 2015. The details of the appointment of independent Directors are disclosed on the Company's website with the following link www.ugarsugar.com

http://web.ugarsugar.com/Investor_Relations/Corporate_Announcements.asp?child=3&parent=7

Based on the recommendation of the Nomination and Remuneration Committee (NRC), the Board has adopted the Remuneration Policy for Directors, KMPs and other employees. NRC has formulated the criteria for determining qualifications, positive attributes and independence of an Independent Director, as well as the criteria for Performance Evaluation of individual Directors, the Board as a whole and the Committees. The Company?s policy on the appointment and remuneration of Directors, and other matters as provided in Section 178(3) of the Act, is disclosed in the Corporate Governance Report, which forms part of the Annual Report and is also available at the link mentioned below.

https://www.ugarsugar.com

Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosures Requirements) Regulation 2015, the Independent Directors have evaluated the performance of working Directors. The Board has carried out an annual performance evaluation of the directors individually as well as the evaluation of the working of its Audit Committees and Nomination & Remuneration Committees.

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for the selection and appointment of Directors, senior management, and their remuneration and includes other matters as prescribed under the provisions of Section 178 of Companies Act and Regulation 19 of SEBI (LODR) 2015. The Nomination & Remuneration Policy is available on the website of the Company on the following link

http://web.ugarsugar.com/Investor_Relations/Corporate_Announcements.asp?child=3&parent7

During the year, 4 (Four) Board Meetings and Four Audit Committee Meetings were convened and held, the details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013. The dates and related information is given in the corporate governance report.

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013, we confirm that-

I] That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

ii] The directors had selected such accounting policies and applied them consistently and made a judgment 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 and of the profit and loss of the Company for that period;

iii] The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv] The directors had prepared the annual accounts on a going concern basis;

v] The directors, in the case of the listed company, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively and;

vi] The directors had devised a proper system to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively;

Our Company has been following good Corporate Governance since its inception. The shares of our Company are listed on BSE Ltd. and the National Stock Exchange of India Ltd. (NSE Ltd.) We are regularly and timely complying with the requirements as per the Listing Agreement. The company has paid the Annual Listing Fees for the Financial Year 2025-26 and 2026-27. As required by SEBI Guidelines, a Corporate Governance Report is annexed.

During the year, the Company has not issued any fresh shares and the Authorized share capital is Rs. 20,00,00,000. The paid-up equity share capital of the Company is Rs. 11,25,00,000/- shares of Rs. One each.

During this year electricity generated was 1968.56 Lakh KW of which we have exported 763.96 Lakh KW in open market through PTC India Ltd., by consuming 6.10 Lakh MT of Bagasse.

The production of Ethanol was 993.48 Lakh BL, as compared to 942.24 Lakh BL during the previous year. During the year under review, we have supplied 989.17 Lakh BL Ethanol to the Oil Companies.

The Company has manufactured 0.97 Lakh cases at Ugar during this year as against 2.84 Lakh cases during the previous year.

Our Company has provided connectivity with NSDL & CDSL for the dematerialization of its shares for trading in electronic form under ISIN-No: INE071E01023. So far 9,99,74,082 Equity shares have been dematerialized by the shareholders, i.e. 88.87% of total shareholdings on 31^st March 2026. The annual fees of depositories for the FY 2025-26 have been paid by the Company.

All the energy conservation measures successfully implemented in the past are giving satisfactory results.

Details technology absorption, foreign exchange earnings, and outgo pursuant to Section 134 (3) (m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed as Annexure I. The annexure form part of this report.

The Company doesn?t have any Subsidiary Company as on 31^st March 2026.

There are no qualifying remarks in the Statutory Auditors Report.

The Company's Auditors, M/s. Kirtane &Pandit LLP, Chartered Accountants, having FRN-105215W were appointed in the 82nd Annual General Meeting for a term of five years and no ratification is required every year. They have confirmed their eligibility under Section 141 of the Companies Act, 2013 for the financial year 2026-27. The auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.

Pursuant to Section 148 of the Companies Act, 2013 read with The Companies {Cost Records and Audit) Amendment Rules, 2014, the cost audit records are maintained by the Company in respect of its Cost Audit of Sugar, Industrial Alcohol, and Electrical Energy. Your Directors have appointed M/s Dhananjay V. Joshi & Associates Cost Accountants, {Firm Registration No: 000030), on the recommendation of the Audit Committee, to audit the cost accounts of the Company for the financial year 2026-27 on the remuneration of Rs. 3,50,000/- subject to the ratification by General Body.

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed CS Manasi Joshi, Company Secretaries in Practice, Sangli (Membership No A74373) to undertake the Secretarial Audit of the Company who has consented to the same. The Report of Secretarial Audit is annexed herewith as "Annexure- II."

The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year in the format prescribed in the Companies (CSR Policy) Rules, 2014 are set out in "Annexure-III" of this Report. The Committee has formulated policy for CSR activities and is placed on the website of the Company at https://www.ugarsugar.com.

The Company has Internal Financial Controls with proper checks and balances to ensure that transactions are properly authorized, recorded, and reported apart from safeguarding its assets. These systems are reviewed and improved on a regular basis.

During the year under review no material or serious observations were received from the Internal Auditors of the Company for inefficiency or inadequacy of Internal Financial Controls.

The Internal Financial Controls followed by the Company are adequate and commensurate with the size and nature of the business and were operating effectively during the year under review.

All related party transactions that were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. The transactions entered into by the Company during the year were within the limits of the Powers of the Board as prescribed in Section188 read with Companies (Meetings of Board & its Powers) Rules, 2014. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel, other designated persons, or other related parties which may have a potential conflict with the interest of the Company at large.

The Company has taken Omnibus approval of the Audit Committee for the Related Party Transaction. All Related Party Transactions were placed before the Audit Committee and the Board for their approval.

The policy on Related Party Transactions as approved by the Board is uploaded on the Company?s website.

Details relating to Related Party Transactions are shown in Form No. AOC-2: (Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014) is attached as Annexure IV.

As per Section 134 of the Companies Act, 2013 (the 'Act'), your Company has provided the Standalone financial statements as on March 31, 2026. These documents are available for inspection during business hours at the Registered Office of your Company.

As on 31 March 2026, there were no subsidiaries/Associate Company/Joint Venture Company. Hence consolidation of financial statement is not required.

Your Company has devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are adequate and operating effectively.

The Company complied with the provisions of Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2).

There are no significant and material orders passed by any regulatory authority, court, or tribunal which shall impact the going concern status and the company?s operations in the future.

Pursuant to Section 92(3) of the Act and Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return for FY 2024-25 is available on Company's website at URL:http://web.ugarsugar.com/Investor_Relations/AnnualReturn.asp?child=5&parent=7

Further annual return for the year 2025-26 will uploaded to the website after filing to ROC.

Details of Remuneration as required under Section 178 and 197 (12) of the Companies Act, 2013 Read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given as "Annexure V."

Pursuant to the provisions of Section 177 of the Companies Act, 2013 read with Rule 7 of Companies (Meetings of Board and its Powers) Rules, 2014 and Clause 22 of the SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015, the Company has adopted a Whistle Blower Policy/Vigil Mechanism that encourages and supports its Directors & employees to report instances of unethical behavior, actual or suspected frauds or violation of Company?s Code of Conduct. It also provides adequate safeguards against the victimization of persons who use this mechanism and direct access to the Chairman of the Audit Committee in exceptional cases. The Whistle-blower Policy/Vigil Mechanism Policy has been posted on web site of the company on the link:

http://web.ugarsugar.com/Investor_Relations/Corporate_Announcements.asp?child=3&parent=7

The Company has in place a policy on prevention, prohibition & redressal of sexual harassment of women at work place and an Internal Complaints Committee has been constituted. No complaints are received during the year.

During the financial year under review, the Company has complied with all the provisions of the POSH Act and the rules framed thereunder. Further details are as follows:

MATERNITY BENEFIT RULE 8(5)(XIII) OF COMPANIES (ACCOUNT) RULES, 2014 : Not Applicable

Not Applicable

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.-Not Applicable

THE DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE-TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF -Not applicable

Details of the Risk Management Policy as required under the provisions of the Companies Act 2013 are placed on the Company?s website www.ugarsugar.com.

There is no change in the nature of Business of the company during the year.

No significant and material orders were passed by the regulators, the Courts, or Tribunals impacting the going concern status and the Company?s operations in the future.

Regulation 34(2) of the Listing Regulations, inter alia, provides that the annual reports shall include a Business Responsibility Report. The Company has presented its Business Responsibility Report for the Financial Year 2025-26, as Annexure - VI to this Report.

Your Directors wish to place on record their sincere appreciation for the continued support received from the Managements of the Central Bank of India, Bank of Baroda, Union Bank of India, Dombivali Nagari Sahakari Bank Ltd., Sangli Urban Co-operative Bank Ltd, and Janata Sahakari Bank Ltd., Pune, Br. Sangli, for providing working capital finance and Central Bank of India, Bank of Baroda, Union Bank of India, Saraswat Co-op Bank Ltd. Br. Kolhapur, for providing long term finance for Capital Investments and Electricity Supply Companies (ESCOM), for transmission of energy.

Your Directors thank the Government of India, the Government of Karnataka, the Government of Maharashtra, Government Authorities, Shareholders, Cane suppliers, Workers, and Staff for their Co-operation and contribution to the overall progress of the Company.