To

The Members,

Saptak Chem and Business Limited

(Formerly known as Munak Chemicals Limited)

CIN: L24299GJ1980PLC101976

Your Directors take pleasure in presenting the 47th Annual Report of the Company together with the Audited Statements of Accounts for the financial year ended March 31, 2026.

The Company's financial performance for the year under review along with previous year figures is given hereunder:

The Company is in the early stage of business revival following the capital reduction and is in the process of scaling up its business activities. The Company has successfully raised fresh capital from investors; however, the Company incurred a loss of Rs. 30.21 lakh during the year as compared with a loss of Rs. 8.62 lakh in the previous financial year. The benefits of the fund raise in terms of revenue generation and profitability are expected to be reflected in the forthcoming quarters.

The Company is engaged in the business of Trading of Chemical and Agriculture Produce. There was no change in the nature of the business of the Company during the year under review.

The Company has shifted its registered office from 201 Rangoli Appt., Opp Isanpur Police Choky, Manorama Park, Isanpur, Ahmedabad 382443 to C-608, Shyam Parisar, Nr. Dhwani Heights, B/h. Municipal School, Isanpur, Ahmedabad- 382443, within the city, w.e.f. December 29, 2025 and further shifted from C-608, Shyam Parisar, Nr. Dhwani Heights, B/h. Municipal School, Isanpur, Ahmedabad- 382443 to 6th Floor, B-Wing, B. D. Patel House, Naranpura, Ahmedabad-380 009, Gujarat, India, within the city, w.e.f. January 03, 2026, during the year under review.

The Company has not declared any dividend for the year under review.

The company does not have any amount which is required to be transferred to the Investor Education and Protection Fund (IEPF).

The loss of Rs. 30.21 lacs incurred during the financial year 2025-2026. Hence, no amount has been transferred to the General Reserve.

The Issued, Subscribed and Paid-up Equity Share Capital as on March 31, 2026 was Rs.1,07,32,270/-.

During the year under review, the company has approved the scheme of capital reduction from Rs. 10,73,22,720 (Rupees Ten Crores Seventy-Three Lakh Twenty-Two Thousand Seven Hundred Twenty Only) divided into 1,07,32,272 (One Crore Seven Lakhs Thirty-Two Thousand Two Hundred Seventy-Two Only) equity shares of Rs. 10.00 each, (Rupees Ten Only) each to Rs. 1,07,32,270 (Rupees One Crore Seven Lakh Thirty-Two Thousand Two Hundred Seventy Only) divided into 10,73,227 (Ten Lakh Seventy-Three Thousand Two Hundred Twenty-Seven) (hereinafter referred to as “the New Equity Shares”) Equity Shares of Rs. 10/- (Rupees Ten Only) each by cancelling and extinguishing, 90% of the total issued, subscribed and paid-up equity share capital of the Company and the order from the Hon'ble NCLT, Ahmedabad has been received on June 23, 2025.

During the year the company has issued, approved and allotted 40,00,000 (Forty Lakh) Convertible Equity Warrants @ Rs.10.50 per share to non-promoters of the company in the extra ordinary general meeting held on November 12, 2025, for which In-principal approval received from BSE on December 30, 2025 and 25% of the total warrant application money has been received by the Company as per Chapter V of the SEBI ICDR Compliance.

During the year under review, the Company has not issued any shares with differential voting rights.

During the year under review, the Company has not issued any sweat equity shares.

During the year under review, the Company has not issued any Employee Stock Options during the year.

The Company has no scheme of provision of money for purchase of its own shares by employees or by trustees for the benefit of employees. Hence, the details under rule 16(4) of the Companies (Share Capital and Debentures) Rules, 2014 are not required to be disclosed.

The Company has not borrowed loan from any Banks or Financial Institutions during the year under review.

The Company does not have any shares in the Demat suspense account or Unclaimed suspense account. Hence, Disclosures with respect to Demat suspense account or Unclaimed suspense account are not required to be mentioned here.

The following are the Key Managerial Personnel of the Company as at March 31, 2026:

*Resigned on 03/02/2026 #Resigned on 29/12/2025 +Appointed on 11/11/2025

The following are the Directors of the Company as at March 31, 2026:

*Resigned on 03/02/2026

#Resigned on 29/12/2025

&Resigned on 13/03/2026

@Appointed on 29/09/2025

$Appointed on 01/12/2025

*Appointed on 14/10/2025

-Appointed on 09/01/2026

During the year under review, Mr. Ayush Vinod Kumar Tated (DIN: 11461830), Director retires by rotation at the forthcoming Annual General Meeting and being eligible, offer himself for re-appointment.

During the year under review the following Directors and Key Managerial Personnel were appointed and resigned:

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 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Independent Directors have complied with the Code of Conduct for Independent Directors prescribed in Schedule IV of the Companies Act, 2013 and the Code of conduct formulated by the Company as hosted on the Company's Website i.e., www.saptakchem.com.

The meetings of the Board of Directors are held at periodical intervals and are generally at the registered office of the Company, Ahmedabad. The meeting dates are decided well in advance and the agenda and notes on agenda are circulated in advance to the directors. All material information is incorporated in the notes on agenda for facilitating meaningful and focused discussion at the meeting. Where it is not practicable to attach supporting or relevant documents to the agendas, the same is tabled before the meeting. In case of business exigencies or urgency of matters, resolutions are passed by circulation. Senior Management persons are often invited to attend the Board Meetings and provide clarifications as and when required.

During the year 2025-26, 18 (Eighteen) Board Meetings were convened and duly held on:

The Last i.e. the 46th Annual General Meeting of the Company for the financial year 2024-2025 was held on 30/08/2025 at the Registered Office of the Company through Video Conferencing/other Audio Visual Means, deemed to be held at the registered office of the Company.

Further during the year One Extra Ordinary General Meeting was held on November 12, 2025 for issue of 40,00,000 (Forty Lakh) Convertible Equity Warrants on preferential basis to non-promoters.

Schedule IV of the Act, Listing Regulations and Secretarial Standard - 1 on Meetings of the Board of Directors mandates that the Independent Directors of the Company hold at least one meeting in a year, without the attendance of Non-Independent Directors.

The Independent Directors Meeting was held on March 14, 2026. The Independent Directors, inter alia, discussed and reviewed performance of Non-Independent Directors, the Board as a whole, Chairperson of the Company and assessed the quality, quantity and timeliness of flow of information between the Company's management and the Board that is necessary for the Board to effectively and reasonably perform their duties.

In addition to formal meetings, frequent interactions outside the Board Meetings also take place between the Independent Directors and with the Chairperson, and rest of the Board.

None of the Directors of the Company are disqualified from being appointed as Directors as specified in Section 164(2) of the Act read with Rule 14 of Companies (Appointment and Qualifications of Directors) Rules, 2014. All Independent Directors have given the required declarations under Section 149(6) & (7) of the Act, confirming that they meet the criteria of independence.

Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirement), Regulations, 2015, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination and Remuneration Committees.

During the year, the Board adopted a formal mechanism for evaluating its performance and as well as that of its Committees and Individual Directors, including the Chairman of the Board. The exercise was carried out through a structured evaluation process covering various aspects of the Boards functioning such as composition of the Board & Committees, experience & competencies, performance of specific duties & obligations, governance issues etc. Separate exercise was carried out to evaluate the performance of individual Directors including the Board Chairman who were evaluated on parameters such as attendance, contribution at the meetings and otherwise, independent judgment, safeguarding of minority shareholders interest etc.

The evaluation of the Independent Directors was carried out by the entire Board and that of the Chairman and the Non-Independent Directors were carried out by the Independent Directors.

The Directors were satisfied with the evaluation results, which reflected the overall engagement of the Board and its Committees with the Company.

The Company does not have Subsidiaries, Associate and Joint Venture Companies. Hence, details for the same are not required to be mentioned here.

The Company has not changed its name during the year under review.

In terms of Section 139 of the Companies Act, 2013 (“the Act”), and the Companies (Audit and Auditors) Rules, 2014, made thereunder, the present Statutory Auditors of the Company M/s. P H SHAH & CO, Chartered Accountants, (FRN.- 115464W), has been appointed as the Statutory Auditors of the Company for the financial year 2025-26, to fill the casual vacancy caused due to the resignation of Mr. Meet Shah (Membership No. 16959), to hold office from October 08, 2025 till the conclusion of the 47th Annual General Meeting, duly recommended by the Audit Committee of the Company.

Further, M/s. P H SHAH & CO, Chartered Accountants, (FRN.- 115464W), the board recommended to appoint as the Statutory Auditors of the Company, for the term of 5 years from the conclusion of this 47th Annual General Meeting until the conclusion of the 52nd Annual General Meeting to be held in the year 2031 on such remuneration plus applicable taxes, and out of pocket expenses, as may be recommended by the Audit Committee and as may be mutually agreed between the Board of Directors of the Company and the Statutory Auditors from time to time.

The Company is not required to appoint the Cost Auditors pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules, 2014, since, the said provisions and rules of cost audit is not applicable to the Company.

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 Rupal Patel Practicing Company Secretary, to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as “Annexure -A”.

Reply to the qualification Remarks in Secretarial Audit Report:

1. Though the company has not uploaded the details in XBRL mode as required under Regulation 23(9) of SEBI (LODR), Regulations, 2015, the Company has uploaded the details of Related party Transactions in PDF mode.

2. Though the Company has not published Financial Results and AGM Notice in newspaper, the company has uploaded the same on Website of the company and also submitted to BSE Limited

There were no qualifications, reservations or adverse remarks made by Auditors in their respective reports. Observation made by the Statutory Auditors in their Report are self-explanatory and therefore, do not call for any further comments under section 134(3)(f) of the Companies Act, 2013.

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. During the year under review, the company retained external audit firm to review its existing internal control system with a view of strengthening the same and introduce system of self certification by all the process owners to ensure that internal controls over all the key business processes are operative. The scope and authority of the Internal Audit (IA) function is defined in the Internal Audit Charter.

The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company and its subsidiaries. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board.

In accordance with the provisions of section 177 of the Companies Act, 2013, the Board of Directors has constituted the Audit Committee of the Company for reviewing of quarterly, half-yearly and annual financial statements before submission to the Board, ensure compliance of internal control systems and internal audit, timely payment of statutory dues and other matters.

During the year under review, the Audit Committee met 4 (four) times during the year on 07/05/2025, 23/07/2025, 08/10/2025 and 22/01/2026. The Committee was reconstituted on 17/03/2026, after reconstitution, the composition of committee and attendance at its meetings is given below:

All the recommendations made by the Audit Committee were considered and accepted by the Board.

In pursuant to the provisions of section 177(9) & (10) of the Companies Act, 2013 and Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Vigil Mechanism for Directors and employees to report genuine concerns has been established. The Vigil Mechanism Policy has been uploaded on the website of the Company at http://www.saptakchem.com.

The Board of Directors of the company have constituted a Nomination & Remuneration Committee of Directors mainly for the purposes of recommending the Company's policy on Remuneration for the Managing/Executive Directors, reviewing the structure, design and implementation of remuneration policy in respect of key management personnel.

During the year, 08 (eight) committee meeting was held during the year on 29/09/2025, 14/10/2025, 11/11/2025, 01/12/2025, 29/12/2025, 09/01/2026, 03/02/2026 and 13/03/2026. The Committee was reconstituted on 17/03/2026, after reconstitution, the composition of committee and attendance at its meetings is given below:

The Board has, on the recommendation of the Nomination and Remuneration Committee, as per the policy for

selection and appointment of Directors, Key Managerial Personnel and Senior Management and their remuneration has recommended the appointment and remuneration of Directors, Key Managerial Personnel and Senior Management. The Remuneration Policy is also available on the Company's website at http://www.saptakchem.com.

The Stakeholders Relationship Committee consisted of 3 Directors. During the year under review, 4 meetings of the committee were held on 19/04/2025, 18/07/2025, 27/10/2025 and 28/01/2026. The Committee was reconstituted on 17/03/2026, after reconstitution, the composition of committee and attendance at its meetings is given below:

The status of shareholders' complaints received so far/number not solved to the satisfaction of shareholders/number of pending share transfer transactions (as on March 31, 2026 is given below): -

Mrs. Krishna Bhavsar, Compliance Officer of the company for the purpose of complying with various provisions of Securities and Exchange Board of India (SEBI), Listing Agreement with Stock Exchanges, Registrar of Companies and for monitoring the share transfer process etc.

a) Share Transfer System:

Requests for dematerialization of physical shares are processed and completed within a period of 21 days from the date of receipt, provided they are in order in every respect. Bad deliveries are immediately returned to Depository Participants under advice to the Members.

However, as per SEBI Notification No. SEBI/LAD-NRO/GN/2018/24 dated June 08, 2018 and further amendment vide Notification No. SEBI/LAD-NRO/GN/2018/49 dated November 30, 2018, requests for effecting transfer of securities (except in case of transmission or transposition of securities) shall not be processed from April 01, 2020 unless the securities are held in the dematerialized form with the depositories. Therefore, Shareholders are requested to take action to dematerialize the Equity Shares of the Company. b) Dematerialization of shares and liquidity:

Details of Registrar and Share Transfer Agent of the Company for dematerialization of shares:

Risk management is embedded in the company's operating framework. The company believes that managing risk helps in maximizing returns. The company's approach to addressing business risk is comprehensive and includes periodic review of such risks and a framework for mitigating controls and reporting mechanism of such risks. The risk management framework is reviewed periodically by the Board and the Audit Committee. Some of the risks that the company is exposed to are:

The Company is exposed to the risk of price fluctuation of raw material as well as finished goods. The company proactively manages these risks through forward booking, Inventory management and proactive vendor development practices. The Company's reputation for quality, product differentiation and service, coupled with existence of powerful brand image with robust marketing network mitigates the impact the impact of price risk on finished goods.

The company is exposed to risks attached to various statutes and regulations including the Companies Act. The company is mitigating these risks through regular review of legal compliances carried out through internal as well as external compliance audits.

Retaining the existing talent pool and attracting new talent are major risks. The company has initiated various measures including rolling out strategic talent management system, training and integration of learning and development activities.

Emerging businesses, capital expenditure for capacity expansion, etc., are normal strategic risk faced by the company. However, the company has well-defined processes and procedures for obtaining approvals for investments in new business and capacity expansion etc.

Pursuant to Sub-section 3(a) of Section 134 and Sub-section (3) of Section 92 of the Companies Act, 2013 read with Rule 12 of Companies (Management and Administration) Rules, 2014, the copy of the Draft Annual Return of the Company for the Financial Year ended on March 31, 2026 in Form MGT-7 is uploaded on website of the Company and can be accessed at www. saptakchem. com

The company has converted 20,00,000 warrants out of 40,00,000 convertible equity warrants into shares on April 06, 2026. For which the Company has received Listing Approval from BSE Limited on May 20, 2026. Further the Company has applied for Trading Application for the same. Thereby the post issued, subscribed and paid share capital become 30,73,227 shares of Rs. 10/- each aggregating to Rs. 3,07,32,270.

The Company manages its liquidity prudently to meet our strategic objectives. We clearly understand that the liquidity in the Balance Sheet is to ensure balance between earning adequate returns and the need to cover financial and business risks. Liquidity also enables the Company to position itself for quick responses to market dynamics.

The Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2026 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares.

During the year under review, there were no proceedings that were filed by the Company or against the Company, which are pending (except the previous years which was already disclosed) under the Insolvency and Bankruptcy Code, 2016 as amended, before National Company Law Tribunal or other Courts.

During the year under review, there has been no one time settlement of loans from the Bank or Financial Institutions.

There is no significant and material order passed by the regulators or courts or tribunals impacting the going concern status and company's operations in future during the year under review.

No related party transaction has been entered into during the financial year. There were no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.

During the year under review the Company has not accepted any deposits to which the provisions of section 73, 74 of the Companies Act, 2013 read with Acceptance of Deposits Rules, 2014 as amended are applicable.

No loans, guarantees or investment under Section 186 of the Companies Act, 2013 have been given by the company during the year under review.

The Company has been proactive in the following principles and practices of good corporate governance. A report in line with the requirements of Regulation 27(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the report on Management Discussion and Analysis and the Corporate Governance practices followed by the Company and the Auditors Certificate on Compliance of mandatory requirements are given as an “Annexure B & C” respectively to this report.

The Company is committed to the tenets of good Corporate Governance and has taken adequate steps to ensure that the requirements of Corporate Governance as laid down in Regulation 27(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are complied with.

As per 27(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with the Stock Exchanges, the Corporate Governance Report, Management Discussion and Analysis and the Auditor's Certificate regarding compliance of conditions of Corporate Governance are attached separately and form part of the Annual Report.

The table containing the names and other particulars of employees in accordance with the provisions of Section 197(12) of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided as “Annexure- D” to the Board's report.

None of the employees of the Company drew remuneration of Rs. 1,02,00,000/- or more per annum and Rs.8,50,000/- or more per month during the year. No employee was in receipt of remuneration during the year or part thereof which, in the aggregate, at a rate which is in excess of the remuneration drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the company. Hence, no information is required to be furnished as required under Rule, 5(2) and 5(3) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

Employee relations throughout the Company were harmonious. The Board wishes to place on record its sincere appreciation of the devoted efforts of all employees in advancing the Company's vision and strategy to deliver good performance.

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report and is also available on the Company's website at www. saptakchem. com.

There is no fraud in the Company during the Financial Year ended March 31, 2026. This is also being supported by the Independent Auditor's Report submitted by the Statutory Auditors of the Company stating that as no fraud has been reported for the financial year ending March 31, 2026.

The Company has zero tolerance for sexual harassment at workplace and has adopted a policy against sexual harassment in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed there under.

During the financial year 2025-26, the company has not received any complaints on sexual harassment and hence no complaints are pending as on March 31, 2026.

The Company is engaged in trading activities and energy consumption is minimal. Therefore, particulars prescribed under Rule 8(3) are not applicable. The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, is Nil.

The provisions of Section 135 of the Companies Act, 2013 are not applicable to the company since the Company does not fall within the applicability criteria prescribed under Section 135 of the Companies Act, 2013 and the rules made thereunder.

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) That in the preparation of the annual financial statements for the year ended March 31, 2026, 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 March 31, 2026 and of the loss 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 controls were adequate and were operating effectively;

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

The Company declares that it has duly complied with the provisions of the Maternity Benefit Act, 1961. All eligible women employees have been extended the statutory benefits prescribed under the Act, including paid maternity leave, continuity of salary and service during the leave period, and post-maternity support such as nursing breaks and flexible return-to-work options, as applicable. The Company remains committed to fostering an inclusive and supportive work environment that upholds the rights and welfare of its women employees in accordance with applicable laws.

The Director's State that applicable Secretarial Standards i.e., SS-1 and SS-2 relating to ‘Meetings of the Board of Directors' and General Meetings', respectively, have been duly complied with.

The Company confirms that it has paid the Annual Listing Fees for the year 2025-2026 to BSE where the Company's Shares are listed.

In January 2015, SEBI notified the SEBI (Prohibition of Insider Trading) Regulation, 2015 which came into effect from May, 2015. Pursuant thereto, the Company has formulated and adopted a new code for Prevention of Insider Trading.

The New Code viz. “Code of Internal Procedures and Conduct for regulating, monitoring and reporting of Trading by Insiders” and “Code of Practices and Procedures for fair Disclosure of Unpublished Price Sensitive Information” has been framed and adopted. The Code requires pre-clearance for dealing in the Company's shares and prohibits purchase or sale of Company shares by the Directors and designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Company is Responsible for implementation of the Code.

Your Directors acknowledge thanks to the various Central and State Government Departments, Organizations and Agencies for the continued help and co-operation extended by them. The Directors also gratefully acknowledge all stakeholders of the Company viz. customers, members, dealers, vendors, banks and other business partners for the excellent support received from them during the year. The Directors place on record their sincere appreciation to all employees of the Company for their unstinted commitment and continued contribution to the Company.