Your Directors are pleased to present the Forty Forth (44^th) Annual Report on the business and operations of your Company along with the audited financial statements and accounts for the year ended 31^st March, 2026.

FINANCIAL HIGHLIGHTS

Highlights for the financial year are as under:

(Amount in Rs. Crores)

Operations and Financial Overview and the State of the Company's Affairs

During the year under review, your Company posted a sales turnover of Rs. 312.09 Crore as against a total Sales turnover of Rs. 272.67 in the previous year registering a 14.45% growth over the previous year.

The Company made a Profit/(Loss) before tax of Rs. 16.99 Crores for the year 2025-26 as compared to Profit of Rs. 10.71 Crores in the previous year. The Profit/(Loss) after tax was at Rs.12.69 Crores as compared to Rs. 7.21 Crores in the previous year.

The Company is engaged in the business of manufacture, sale, and marketing of a wide range of drip and sprinkler irrigation systems, automation, and allied agricultural solutions for both individual farmers and community irrigation projects, supported by a strong pan-India network of channel partners and multi-locational manufacturing facilities.

The Company's focus on innovative, precision farming technologies has contributed to significant water and energy savings. Aligned with its strategic priorities, the Company has actively engaged in projects that enhance farm productivity and resource efficiency, while continuing to explore broader market opportunities both domestically and internationally. MEIL remains committed to sustainable growth, regulatory compliance, and value creation for all stakeholders through operational excellence and customer-centric solutions.

A detailed analysis of the operations and financial results of your Company during the year under review is included in the Management Discussion and Analysis, forming part of this Annual Report.

Consolidated Financial Statement

The Consolidated Financial Statements of the Company and its joint venture company prepared in accordance with the Companies Act, 2013 ("the Act") and applicable Accounting Standards along with all relevant documents and the Auditors' Report forms a part of this Annual Report.

Nature of Business

The Company continues to be engaged in the activities pertaining to manufacturing, selling, processing, exporting, importing and dealing in irrigation pipes, and irrigation systems and providing agricultural services.

There has been no change in the nature of business of the Company during the period under review.

Dividend

Your Directors have not recommended any dividend for the year ended 31^st March, 2026.

Unpaid Dividend & shares transferred to Investor Education and Protection Fund (IEPF)

In accordance with the provisions of Sections 124 and 125 of the Companies Act, 2013 ("Act") and Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016 ("IEPF Rules"), the dividends that are unclaimed/ unpaid for a period of seven years from the date of transfer to the Unpaid Dividend Account shall be transferred to the Investor Education and Protection Fund (IEPF) administered by the Central Government within the stipulated time period. During the review period, the Company has transferred 36,17,700 (Thirty-Six Lakh Seventeen Thousand Seven Hundred Only) shares and dividend amounting to Rs. 2,68,482.50/- (Rupees Two Lakh Sixty-Eight Thousand Four Hundred Eighty-Two and Fifty Paise Only) to the Investor Education and Protection Fund.

Rs. 1,72,66,223 (Rupees One Crore Seventy Two Lacs Sixty Six Thousand Two Hundred Twenty Three only) is lying in the unpaid dividend account of the Company as of 31^st March, 2026.

Members are requested to note that pursuant to Section 124 of the Act read with the Rules framed thereunder dividends if not encashed or claimed for a period of 7 (seven) years from the date of transfer to the Unpaid Dividend Account of the Company, will be transferred to the Investor Education and Protection Fund ("IEPF"). Further, all the shares in respect of which dividend has remained unclaimed for 7 (seven) consecutive years or more from the date of transfer to unpaid dividend account shall also be transferred to IEPF. In view of this, Members are requested to claim their dividends from the Company, within the stipulated timeline

Members who wish to claim their dividend declared in past and which remains unclaimed, are requested to contact, KFin Technologies Ltd. Selenium Tower B, Plot 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad-500 032, Telangana or write to the Company at its Registered office.

Transfer to reserve

The details of amount to transfer in General Reserve is provided in Note No. 11(B) to the financial statement.

Share Capital

During the year, with the allotment of 8,278 equity shares on exercising of Stock Options by employees, the total equity shares of the Company increased from 2,79,38,091 to 2,79,46,369 equity shares of Rs. 10/- each. The said equity shares have been listed on the BSE Limited and National Stock Exchange of India Limited and all the shares rank pari passu with the existing equity shares in all respects.

Accordingly, the Paid-up Share Capital of the Company stood at Rs. 27,94,24,690/- comprising of 27,94,24,69 equity shares of Rs. 10 each as of 31^st March, 2026.

Report on performance of Joint Venture Your Company entered into Joint Venture (JV) arrangement in F'19 with TOP Greenhouses Limited, Israel, to set up Mahindra Top Greenhouses Private Limited (MTGPL) for the protected cultivation business. The JV provides an opportunity for both Joint Venture partners to draw on the strengths of each other and grow a protected cultivation business by providing hi-tech, economical, and relevant solutions to protected cultivation customers, both large and small.

The company has 60% holding in the Joint Venture. Further, it was observed that due to the unsatisfactory performance, MTGPL is incurring huge cost leading to financial unviability in the long run. Considering the above, MTGPL has discontinued the business operations of Joint Venture since April 01, 2024.

The details of Joint Ventures, during the period under review, is given in Form AOC-1 and is attached and marked as Annexure No. IX and forms part of this Report.

Holding Company

The promoters of the Company i.e. Mahindra and Mahindra Limited ("M & M") hold 1,51,44,433 equity shares which represent 54.20% of the total paid-up share capital of the Company. Your Company continues to be a subsidiary company of M & M.

Stock Options

The Nomination and Remuneration Committee of the Board of Directors, inter alia, administers and monitors the Employees Stock Option Scheme of the Company "the ESOS". The ESOS is in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and there have been no material changes in the said scheme during the year under review.

During the year under review, 8,278 Stock Options under the ESOS were exercised immediately after vesting. Accordingly, the Company made the allotment of 8,278 Equity Shares.

The particulars required to be disclosed pursuant to the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and Rule 12(9) of the Companies (Share Capital and Debentures) Rules, 2014 are appended as "Annexure No.II" to this Report.

Voting rights on the shares issued to employees under the ESOS are either exercised by them directly or through their appointed proxy.

Corporate Governance & Management Discussion and Analysis Report

Your Company believes that sound practices of good Corporate Governance, Transparency, Accountability, and Responsibility are the fundamental guiding principles for all decisions, transactions, and policy matters of the Company. A Report on Corporate Governance, along with a certificate from the Statutory Auditors of the Company regarding the compliance of conditions of Corporate Governance as stipulated under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (the "LODR Regulations") forms part of this Annual Report.

Further, the Management Discussion and Analysis Report for the year under review, as stipulated under LODR Regulations, forms part of this Report as Annexure No. I.

Risk Management

The Company has constituted a Risk Management Committee. The committee comprises of Mr. Ramesh Ramachandran, Mr. Viswananthan Kapilanandan and Ms. Aruna Rajendra Bhinge. Mr. Ramesh Ramachandran is the Chairman of this Committee. The Company has adopted the Risk Management Policy. The Committee is entrusted with the responsibility to assist the Board of Directors in:

(a) overseeing and approving the Company's enterprisewide risk management framework; and

(b) overseeing that all the risks that the organization faces such as strategic, financial, credit, market, liquidity, security, property, IT, legal, regulatory, reputational, sustainability (particularly, ESG related risks), information, cyber security risks and other risks have been identified and assessed.

There is an adequate mechanism in place for risks and uncertainties that can impact its ability to achieve its strategic objectives, risk assessment, risk mitigation and minimization procedures and periodical review.

Further, detailed terms of reference of the Risk Management Committee are included in the Report on Corporate Governance, which forms part of this Annual Report.

Industrial relations

The Company believes that sustainable growth can only be achieved in an organization which focuses on a performance culture and where employees are engaged and empowered to be the best they can be.

Employees at all levels have contributed to the performance of your Company. Your Directors place on record the Cooperation of employees during the year under report. The Directors also place on record the unstinted Cooperation extended by the staff members during the period under review.

Our mission is to protect and enhance the well-being of our employees, visitors, and other stakeholders. A safe work environment is non-negotiable, for which we follow strict safety standards in all our facilities. Our safety practices ensure all possible safety hazards are identified and eliminated, not only at the workplace but also during employee travel. We promote holistic safety culture to improve safety beyond work.

The Management Discussion and Analysis Report gives an overview of the developments in Human Resources/Industrial Relations during the year.

Safety, Health and Environmental Performance

Your Company's commitment towards safety, health and the environment is being continuously enhanced and your Company encourages the involvement of all its employees in activities related to safety, including the promotion of safety standards. This is also demonstrated by the fact that there has been only one reportable incidence (Non-Fatal) of an accident in the last Ten years.

The Safety Committee, constituted for the same, regularly reviews the adherence to safety norms. Some of the programs undertaken by the Company include behaviour-based safety training, knowledge-based fire extinguisher training, firefighting training and safety awareness, etc.

Various health checkup programs for employees were regularly undertaken by the Company.

The requirements relating to various environmental legislations and environmental protection have been duly complied with by your Company.

Contracts and Arrangements with Related Parties During the financial year, all contracts/arrangements/ transactions entered by the Company with related parties were in the ordinary course of business and on an arms- length basis. During the year, the Company had entered into a contract/arrangement/transaction with related parties which was material in nature, in accordance with the policy of the Company on the materiality of related party transactions, details of the same mentioned hereibelow.

All related party transactions were placed before the Audit Committee for approval, wherever applicable. Prior omnibus approval is also obtained from the Audit Committee for the related party transactions which cannot be foreseen and accordingly, the required disclosures are made to the Committee on a quarterly basis for its approval. However, during the year, the Company inadvertently entered into one material transaction of Rs.20 Crores (in aggregate 45 Crore) Inter Corporate Deposite availed from the Promoter Company i.e. Mahindra and Mahindra Ltd. without taking the prior approval of Shareholders. The Company immediately repaid the Inter Corporate Deposit on 9^th April, 2026. The said transaction is not prejudicial to the minority shareholders.

Further, the Company is suo-motu taking a corrective action in this regard.

The Company's major related party transactions are generally with its holding and fellow subsidiaries or associate companies. The related party transactions are entered into based on considerations of various business exigencies, such as synergy in operations, and sales transactions through tenders or otherwise. All related party transactions are negotiated on an arms-length basis and are intended to promote the Company's interests.

The Policy on the materiality of related party transactions and dealing with related party transactions as approved by the Board of Directors may be accessed on the Company's website at the link:

The related party transactions have been set out in Annexure No. X which is given form AOC-2.

Board and Committees

1. Directors

During the year under review, the following persons are the directors of the Company.:

Dr. Sudhir Kumar Goel completed his tenure on 22^th July 2025 and Mr. Rajeev Goyal was appointed w.e.f. 19^th July 2025.

Retirement by Rotation at AGM

Pursuant to the provisions of Section 152 of the Companies Act, 2013 (the "Act"), Mr. Shriprakash Shukla, Non-Executive Non-Independent Director, Chairperson (DIN: 00007418) is liable to retire by rotation and not seeking for reappointment due to superannuation.

Retirement of Directors

Dr. Sudhir Kumar Goel (DIN: 02965596) has completed his tenure w.e.f. 22^th July 2025. The Board placed on record the gratitude for the services provided by him during his tenure.

Appointment / Re-appointment of Directors

As on date of this report, the Company has appointed three Directors as mentioned below:

i. Mr. Rajeev Goyal

Mr. Rajeev Goyal (DIN: 03139184) has been appointed as an Non-Executive Non-Independent Director on the Board of Directors of the Company, with effect from 19^th July, 2025, and is liable to retire by rotation.

ii. Mr. Balram Singh Yadav

Mr. Balram Singh Yadav (DIN:00294803) has been appointed as an Non-Executive Independent Director on the Board of Directors of the Company, with effect from 21^st April, 2026, and letter requesting from members seeks his appointment as an Independent Director for first term of five years i.e. from April 21, 2026 to April 20, 2031, subject to approval of the shareholders in ensuing Annual General Meeting, and is not liable to retire by rotation.

iii. Dr. Purvi Mehta Bhatt

Dr. Purvi Mehta (DIN:01596457) has been appointed as an Non-Executive Independent Director on the Board of Directors of the Company, with effect from 21^st April, 2026 and letter requesting from members seeks her appointment as an Independent Director for first term of five years i.e. from April 21, 2026 to April 20, 2031, subject to approval of the shareholders in ensuing Annual General Meeting, and is not liable to retire by rotation.

Independent Directors

All the Independent Directors on the Board have given a declaration of their independence to the Company as required under Section 149(6) of the Act and Regulation 16(1 )(b) of the SEBI (LODR) Regulations. In the opinion of the Board, all the Independent Directors possess the integrity, expertise and experience including the proficiency required to be Independent Directors of the Company, meets the criteria of independence as specified in the Act and the SEBI LODR Regulations and are independent of the management and have also complied with the Code for Independent Directors as prescribed in Schedule IV of the Act.

The Independent Directors of the Company have confirmed that they have registered themselves with the Indian Institute of Corporate Affairs, Manesar and have their name included in the databank of Independent Directors within the statutory timeline.

The Board is of the opinion that the Independent Directors of the Company hold the highest standards of integrity and possess the requisite expertise and experience required to fulfil their duties as Independent Directors.

During the year under review, except sitting fees the Independent directors were not paid any commission.

The Meeting of Independent Directors was held on 17^th April, 2025 without presence of non-independent directors and management of the Company to consider and review:

a) review the performance of non-independent directors and the board of directors as a whole;

b) review the performance of the chairperson and Managing Director of the Company;and

c) assess the quality, quantity and timeliness of flow of information between the management of the Company and the Board of Directors required to effectively and reasonably perform their duties.

Remuneration/Commission drawn from Holding/Subsidiary Company:

Mr. Ramesh Ramachandran, the Managing Director of the Company also receives remuneration of Rs. 0.24 Crores per annum from Mahindra Agri Solutions Limited.

Particulars of Employees

Details of remuneration of the employees as required under Section 197 of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 will be made available during 21 days before the Annual General Meeting in electronic mode to any Shareholder upon request sent at singh.madhvendra@mahindra.com. Such details are also available on your Company's website and can be accessed at the Web-link: https://www.mahindrairrigation.com/investor- information/#1682969846893-eaa65809-0ed3

The information required pursuant to Section 197(12) read with Rule 5 (1) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (the "Rules of 2014") in respect of the ratio of remuneration of a director to the median remuneration of the employees of the Company for the financial year is annexed herewith and marked as Annexure III to this Report.

Performance Evaluation of the Board

The Company has devised a Policy for the performance evaluation of independent directors, Board of Directors, Committees, and other individual Directors, which includes criteria for performance evaluation of the Non-Executive Directors and Executive Director.

Pursuant to the provisions of the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual evaluation of its performance and that of its Committees as well as the performance of the Directors individually. Feedback was sought by way of a structured questionnaire covering various aspects of the Board's functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance and the evaluation was carried out based on responses received from the Directors.

The details of the programme for familiarization of independent directors with the Company, their roles, rights and responsibilities in the Company, the nature of the industry in which the Company operates, the business model of the Company and related matters are put up on the website of the Company. During the year, the independent directors of the Company met on 17^th April, 2025.

Your Company has adopted the following Policies which, inter alia, include criteria for determining qualifications, positive attributes, and independence of a Director. The following policies of the Company are annexed herewith and marked as Annexure IV and Annexure V respectively and forms part of this Report:

a) Policy on Appointment of Directors and Senior Management and Succession Planning for Orderly Succession to the Board of Directors and the Senior Management.

b) Policy for Remuneration of the Directors, Key Managerial Personnel, and other employees.

Meetings of the Board

Four meetings of the Board of Directors were held during the year. Details of attendance at meetings of the Board, its Committees and the AGM are included in the Report on Corporate Governance, which forms part of this Annual Report.

Committees of the Board

Your Company has duly constituted the Committees required under the Companies Act, 2013 read with applicable Rules made thereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Audit Committee

As on 31^st March, 2026, the Audit Committee comprises Independent Directors namely Mr. Viswanathan Kapilanandan (Chairman), Ms. Aruna Bhinge, Non-Executive-Independent Director and Ms. Ami Goda, Non-Executive Non-Independent Director as members.

All the recommendations made by the Audit Committee were accepted by the Board of Directors.

Nomination and Remuneration Committee

As on 31^st March, 2026, the Nomination and Remuneration Committee comprises Directors namely Ms. Aruna Bhinge (Chairman), Ms. Ami Goda and Mr. Viswananthan Kapilanandan as members.

Further, Dr. Sudhir Kumar Goel completed his tenure on 22^nd July 2025 and Ms. Aruna Bhinge was appointed w.e.f 19^th July 2025 as Chairperson of the Committee.

Stakeholders Relationship Committee

The Stakeholders Relationship Committee comprises Directors namely Ms. Aruna Bhinge (Chairperson), Mr. Ramesh Ramachandran and Mr. Rajeev Goyal as other members.

Dr. Sudhir Kumar Goel completed their tenure w.e.f 22^th July 2025 and Mr. Rajeev Goyal was appointed w.e.f 19^th July 2025 as member of the Committee.

Risk Management Committee

As on 31^st March 2026, the Risk Management Committee comprises of Directors namely Mr. Ramesh Ramachandran (Chairman), Ms. Aruna Bhinge and Mr. Viswanathan Kapilanandan as members.

Corporate Social Responsibility

During the year under review, as per Section 135 of the Companies Act, 2013 and rules made thereunder, the Corporate Social Responsibility Committee ("CSR Committee") has been constituted with effect from March 20, 2026 with the following members and no meeting of CSR Committee has been conducted during the year under review;

1. Mr. Ramesh Ramachandran (Chairman),

2. Ms. Aruna Bhinge (Member);and

3. Mr. Viswanathan Kapilanandan (Member)

The CSR Policy of the Company may be accessed on the Company's website at the link: https://www.mahindrairrigation.com/wp-content/uploads/2023/06/ Corporate_Social_Responsibility_Policy.pdf

However, the average net profits of the Company for the immediately preceding three financial years, computed in accordance with the provisions of Section 198 of the Companies Act, 2013, are such that the Company is not required to incur CSR expenditure as contemplated under Section 135(5) of the Act for the Financial Year 2025-26. Further, CSR Committee has not earmarked/recommended to the Board, any specified project(s) for spending any amount of funds towards CSR Activity(ies) for the Financial Year 2025-26.

Accordingly, the Company has not undertaken any CSR expenditure during the year. Nevertheless, the Company remains committed to social welfare and community development initiatives and will evaluate suitable CSR opportunities when it is in a position to do so in the future.

The Annual Report on CSR activities is annexed herewith and marked as Annexure XI of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014.

Key Managerial Personnel (KMP)

In accordance with the provisions of Section 203 of the Companies Act, 2013 the following persons have been designated as KMP of the Company as on 31^st March 2026:

* Appointment of Mr. Giriraj Mohta as Chief Financial Officer, Key Managerial Personnel and Senior Management Personnel of the Company with effect from 1^st May, 2025 in place of Ms. Sunetra Ganesan on her retirement on 30^th April, 2026.

Directors' Responsibility Statement Pursuant to section 134(5)(e) of the Act, your Directors, based on the representations received from the Operating Management, and after due enquiry, state that:

a) in the preparation of the annual accounts for the year ended 31^st March, 2026, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same.

b) the Directors have selected such accounting policies and applied them consistently and made

c) judgements and estimates that are reasonable and prudent to give a true and fair view of the state of affairs of the Company as of 31^st March, 2026 and of the profit/ loss of the Company for the year ended on that date;

d) 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.

e) the Directors have prepared the annual accounts on a ‘going concern' basis.

f) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

g) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Business Responsibility and Sustainability Report

In terms of the amendment to regulation 34 (2) (1) of LODR Regulations vide Gazette notification no. SEBI/LAD-NRO/ GN/2021/22 dated May 05, 2021 which introduced new reporting requirements on ESG parameters called the Business Responsibility and Sustainability Report (BRSR) replacing the existing Business Responsibility Report (BRR) and in accordance with the circular no. SEBI/HO/CFD/ CMD-2/P/CIR/2021/562 issued by SEBI on May 10, 2021, which made reporting of BRSR mandatory for the top 1,000 listed companies (by market capitalization) from the financial year 2022-23. Further, top 500 Listed Entities are mandatorily required to undertake assessment or assurance of BRSR Core for the FY26.

The Company does not fall under the criteria as specified under the provisions Regulation 34(2)(f) of the SEBI (LODR) Regulations 2015, for the financial year 2025-26. However your Company strongly believes that sustainable and inclusive growth is possible by using the levers of environmental and social responsibility while setting aspirational goals and improving economic performance to ensure business continuity and rapid growth and thus as a good corporate governance practice the company voluntarily makes disclosure. The BRSR of your Company for the financial year ended 31^st March, 2026 forms part of this Annual Report as Annexure-VI required under Regulation 34(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Disclosures under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules framed thereunder

The Company has complied with provisions relating to the constitution of the Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (‘POSH Act') and the Rules framed thereunder.

The Company is committed to create and maintain an atmosphere in which employees can work together without fear of sexual harassment and exploitation. Every employee is made aware that the Company is strongly opposed to sexual harassment and that such behavior is prohibited both by law and the Company.

The following is the summary of Sexual Harassment complaints received and disposed of during the year 2025-2026.

Maternity Benefits Act, 1961

The Company is in compliance with the provisions relating to the Maternity Benefits Act, 1961.

Vigil Mechanism/Whistle Blower policy To ensure that the activities of the Company and its employees are conducted in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity and ethical behaviour, the Company has adopted a vigil mechanism policy. Whistle Blower or Complainant, under the said Policy, shall be entitled to direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases. This policy is explained in the Report on Corporate Governance and posted on the website of the Company.

Auditors and Auditor's Report

The Auditors, M/s. B S R & Co. LLP, Chartered Accountants, were appointed as Statutory Auditors on the 39^th Annual General Meeting of the Company for a period of 5 years i.e. from the conclusion of the 39^th AGM till the conclusion of the 44^th AGM to be held for 2025-26.

Accordingly, in terms of provision of Section 139(1) and 139(2)(b), it is proposed before the shareholders to re-appoint Messrs B S R & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 101248W/W-100022), as Statutory Auditor of the Company for the first term of five consecutive years i.e. from the conclusion of the 44^th AGM till the conclusion of the 49^th AGM to be held for FY2030- 2031.

The standalone and consolidated financial statements of the Company has been prepared in accordance with Ind AS notified under Section 133 of the Companies Act, 2013 ("Act").

The Statutory Auditor's Report does not contain any qualifications, reservations, adverse remarks or disclaimers. The Statutory Auditors of the Company have not reported any fraud to the Audit Committee of Directors as specified under Section 143(12) of the Act, during the year under review.

Cost Auditors

As per Section 148(1) of the Act read with Rule 3 of the Companies (Cost Records and Audit) Rules, 2014, the Company is mandatorily required to maintained cost records for such products or services in its books of account as may be required. Further, Section 148(3) read with Rule 14 of the Companies (Cost Records and Audit) Rules, 2014 requires the Board of directors of the Company to appoint individual, or a firm of cost accountants in practice, as cost auditor on the recommendations of the Audit committee, which shall also recommend remuneration for such cost auditor.

Accordingly, the cost accounting records of the Company are maintained and the Board of Directors, on the recommendation of the Audit Committee, appointed M/s. Arpita Fegde & Company (Firm Reg No.102386 & ICMA M. No. 29459), Mumbai as the Cost Auditors of the Company for the financial year 2026-27. M/s Arpita Fegde & Company have confirmed that their appointment is within the limits as prescribed in the Act and have also certified that they are free from any disqualification specified under sections 141(3) and 148(5) of the Act.

The Audit Committee has also received a Certificate from the Cost Auditor certifying their independence and arms-length relationship with the Company.

The Directors recommend the professional fees payable to the Cost Auditors of the Company for the year 2026-27. The approval from shareholders for the remuneration payable to the Cost Auditors is being sought at the ensuing Annual General Meeting.

The Cost Auditor is required to conduct an audit of the cost records maintained by the Company and, upon verification, submit the report on the audit of cost records to the Board of Directors of the Company. The Company is required to maintain cost records as specified by the Central Government under Section 148(1) of the Companies Act, 2013, and accordingly, the prescribed cost records have been maintained by the Company.

On receipt of such Cost Audit Report pertaining to the financial year 2025-26, the Company shall file the same within the prescribed timeline, as per the Companies (Cost Accounting Records) Rules, 2011 prescribed under Section 148 (6) of the Act, and Rule 6(6) of the Companies (Cost Records and Audit) Rules, 2014.

Secretarial Auditors

Provisions of Section 204 of the Companies Act, 2013 read with the Rules framed thereunder, mandates obtaining Secretarial Audit Report from Practicing Company Secretary. The Board has appointed M/s. Prajot Vaidya & Company, Practicing Company Secretaries as Secretarial Auditor of the Company for a term of 5 years from FY 2025-26 to FY 2029-30.

The Secretarial Audit Report issued by M/s. Prajot Vaidya & Company, Practicing Company Secretaries for the financial year ended on 31^st March, 2026 in Form MR-3 is annexed herewith and marked as Annexure VIII to this Report. The Secretarial Audit Report does not contain any qualification, observation, reservation or adverse remarks or disclaimer requiring explanation, except following observations.

Management Reply on remark/observation

During the quarter and year ended, the Company has inadvertently entered one material transaction of Rs.20 Crores on March 30, 2026 (in aggregate Rs.45 Crore for FY26) in the nature and form of Inter Corporate Deposits from its Promoter Company i.e. Mahindra and Mahindra Ltd. without taking the prior approval of Shareholders. The management upon realizing the same, immediately reversed the transaction within 11 days from the availing of the ICD i.e. on April 09, 2026. The said lapse is procedural in nature and transaction is not prejudicial to the interest of the stakeholders. Further, the arrangement did not result in any preferential benefit to the related party and was undertaken on commercially acceptable arm's length terms.

The above matter has been discussed and said transactions ratified in Board Meeting followed by Audit Committee dated 21^st April, 2026 and in this regard the company is suo-moto approaching the Securities and Exchange Board of India of India in accordance with the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 for the contravention of Regulation 23(4) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Public Deposits & Loans/Advances

Your Company has not accepted any deposits during the year under review. There were unclaimed/ unpaid interest warrants outstanding as of 31^st March, 2026. Your Company has neither made any loans or advances nor provided any guarantees or securities or made any investments which are required to be disclosed in the Annual Accounts of the Company.

Energy Conservation and Technology Absorption and Foreign Exchange Earnings and Outgo

The particulars relating to energy conservation, technology absorption, foreign exchange earnings and outgo as required to be disclosed under sub-section (3)(m) of Section 134 of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 are annexed herewith and marked as Annexure VII to this Report.

DISCLOSURES:

Compliance with the provisions of Secretarial Standard 1 and Secretarial Standard 2

The 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. During the year under review, the Company was in compliance with the Secretarial Standards, i.e., SS-1 and SS-2, relating to "Meetings of the Board of Directors" and "General Meetings" respectively.

Annual Return

Pursuant to Sub-section 3(a) of Section 134 and Sub-section (3) of Section 92 of the Companies Act, 2013, the Annual Return of the Company as of 31^st March, 2026 is placed on the website of the company at the following web address: https://www.mahindrairrigation.com/financials/

Dividend Distribution Policy

Pursuant to Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated a dividend distribution policy which became effective from 1^st April, 2021 stipulating factors to be considered in case of Dividend declaration.

The same has also been hosted on the website of the Company and is accessible at the web link: https://www.mahindrairrigation.com/wp-content/uploads/ 2023/06/Dividend_Distribution_Policy.pdf

General

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. Details relating to deposits covered under Chapter V of the Companies Act, 2013.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except ESOS referred to in this Report.

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and the Company's operations in future.

5. There were no frauds reported by auditors (including Secretarial and Cost auditor) to the Audit Committee or Board and not reported to the Central Government.

6. There were no material changes and commitments, if any, affecting the financial position of the Company which occurred between the end of the financial year and the date of this Report.

7. No application has been made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016.

8. Any one-time settlement and valuation were not done while taking loans from Banks or Financial Institutions.

Acknowledgements

Your Directors take this opportunity to place on record their sincere appreciation for the cooperation and continued support received from customers, vendors, suppliers, bankers, business associates and shareholders.