Dear Members

Your Directors are pleased to present their Forty Fifth Report together with the audited Stand-alone and Consolidated financial statements of the Company for the year ended March 31, 2026.

FINANCIAL RESULTS

This discussion on the financial performance and results of operations of your Company for the year ended March 31, 2026, which are summarized below, should be read in conjunction with its audited stand-alone and the consolidated financial statements containing financials and notes thereto of Sagar Cements Limited and its subsidiaries, namely Sagar Cements (M) Private Limited and Andhra Cements Limited.

During the year the Consolidated Revenue from Operations stood at Rs 2,65,002 Lakhs, registering a increased by 17% as compared to previous year and Profit before Interest, Depreciation and Tax stood at H31,354 Lakhs, registering an increase by 93% as compared to previous year. To avoid repetition in the Directors' Report, further details about other aspects of the performance of the Company during the year 2025-26 have been furnished in the Management Discussion and Analysis Report as annexure to this report.

DIVIDEND

Dividend has been considered by your Board taking into consideration the factors like overall profitability, cash flow, capital requirements and other business consideration as well as the applicable regulatory requirements read with the dividend distribution policy adopted by your Company, which is available on your Company's website and can be accessed at: . Considering the inadequate profits, no dividend is proposed for the year.

TRANSFER TO RESERVES

No transfer to any reserve is proposed and accordingly, the entire balance available in the Statement of Profit and Loss is retained in it

.

SHARE CAPITAL

AUTHORISED SHARE CAPITAL:

The authorised share capital of the company is Rs 292,50,00,000/- comprising of 124,75,00,000 Equity Shares of Rs 2/- each and 4,30,00,000 Preference Shares of H10/- each as on March 31, 2026.

PAID-UP SHARE CAPITAL:

As on March 31, 2026, the paid-up share capital of the company was Rs 26,14,15,096/- divided into 13,07,07,548 equity shares of Rs2/- each and there were no changes in the share capital of your Company during the year under report.

UTILIZATION OF FUNDS RAISED THROUGH ISSUE OF EQUITY SHARES

During FY 2026, no funds were raised through Rights Issue, Preferential issue etc., and hence there is no requirement to provide any explanation as required under Regulation 32(4) of the SEBI (LODR) Regulations, 2015.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The performance of subsidiaries viz., Sagar Cements (M) Private Limited and Andhra Cements Limited, both of which were acquired by your Company, is satisfactory and on the expected lines.

Salient features of the financials of the above mentioned two subsidiaries have been given in form AOC-1 as Annexure-1 to this report. Your Company does not have any Joint Ventures or Associate Companies.

During FY 2025 26, Sagar Cements Limited, as promoter of its subsidiary, Andhra Cements Limited (ACL), made an Offer for Sale (OFS) of equity shares through the stock exchange mechanism in compliance with SEBI guidelines and Rule 19A of the Securities Contracts (Regulation) Rules, 1957 Pursuant to approvals of the Investment Committee of the Board, the Company divested part of its holdings, thereby reducing its stake from 90% to 75%. Consequently, the public shareholding in ACL increased to 25%, enabling ACL to achieve the mandated Minimum Public Shareholding (MPS) requirement within the stipulated time period. The transaction was duly approved by the Audit Committee and executed in accordance with SEBI OFS Circulars and operational guidelines of BSE and NSE.

The Board of Directors of your Company at its meeting held on March 30, 2026, has accorded its in-principle approval for the merger of one of our subsidiary companies viz., Andhra Cements Limited with it, which will be subject to necessary approvals as may be required from the regulatories and other authorities concerned.

ESTABLISHMENT OF NEW DIVISION:

The Board of Directors of your Company accorded approval for establishment of new division namely superfine building materials to carry on the business of highly processed, micronized, or extremely fine-grade materials designed for superior strength, smooth finishing, and high-performance in construction projects. These materials, which range from specialized cements to manufactured sands, are crucial for modern, durable, and sustainable building techniques. Demand is surging for superfine products for luxury architectural finishes, and these advanced materials help clients meet strict green building certifications. Superfine is extension of our Product Portfolio and are mostly generated from GGBS (Ground Granulated Blast-furnace Slag), Silica and Fly ash.

The division will leverage to provide data-driven material predictions, reducing on-site waste by ensuring perfect fits for prefabricated components. This initiative targets the high-precision construction market, focusing on advanced concrete additives.

The Superfine materials are used in High-performance/ultra- high-performance concrete (UHPC), Repairing structural cracks and micro-fissures in dams, bridges, and tunnels, Interior finishing, including false ceilings and plastering and Industrial, commercial, and residential cladding/roofing.

The management has identified a significant growth opportunity in superfine building materials, and the creation of a specialized division aligns with the Company's long-term strategic goals.

PERFORMANCE OF YOUR COMPANY'S PLANTS

Your Company's integrated cement plants located at Mattampally in Suryapet District, Telangana and at Gudipadu Village, Ananthapur District, Andhra Pradesh and the grinding unit located at Bayyavaram village, Visakhapatnam District, Andhra Pradesh and Kalinga Nagar Industrial Complex, Tehsil - Dangadi, Jajpur District, Odisha are doing well and the products generated in these units are catering to the major market in South India and parts of Odisha and its neighbouring States. Further details about the performance of these plants have been given elsewhere in the Integrated Report.

FUTURE OUTLOOK, RISK MANAGEMENT SYSTEM AND INTERNAL CONTROL AND ITS ADEQUACY

Details relating to future outlook, risk management system and internal control and its adequacy have been given in detail in the Management Discussion and Analysis Report, which is part of the Directors Report. The Company has an adequate Internal Financial Control System, commensurate with the size, scale and complexity of its operations.

The Company has a suitable risk management policy to identify and mitigate risks. This Policy, inter-alia, includes identification of various elements of risk, including those which, in the opinion of the Board, may threaten the existence of the Company.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS

Your Company continues to enjoy cordial relationship with all its personnel at its Plants, Offices and on the field.

Your company is organizing training programmes wherever required for the employees concerned to improve their skill. They are also encouraged to participate in the seminars organized by the external agencies related to the areas of their operations.

Your company continues to focus on attracting and retaining competent personnel and providing a holistic environment where they get opportunities to grow and realize their full potential. Your company is committed to providing all its employees with a healthy and safe work environment.

POLICY ON PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

Regarding the Sexual Harassment of Women at the workplace (Prevention, Prohibition & Redressal) Act, 2013, your Company has an Internal Complaints Committee. No complaints were received or disposed of during the year under the above Act and no complaints were pending either at the beginning or at the end of the year. Your Company has complied with the provisions relating to the constitution of Internal Complaints Committee (ICC). ICC is responsible for redressal of complaints related to sexual harassment and follows the guidelines provided in the policy. ICC has its presence at corporate offices as well as at manufacturing units.

AWARDS & RECOGNITIONS ACROSS UNITS (FY 2025-26):

Your company has already achieved ISO Certification ISO 9001:2015 for Quality Management System Standard,

ISO 14001:2015 for Environmental Management System Standard, ISO 45001:2018 for Occupational Health and Safety Management System Standard and ISO 50001:2018 for Energy Management.

Further your Company has achieved following awards: Mattampalli Unit:

Received the "BIS Award of Honour" for outstanding performance in quality, safety, and operational excellence.

Received following excellence awards from Quality Circle Forum Of India (QCFI), Hyderabad:

Sustainable Mining Excellence Award

CSR Excellence Award

Energy Efficiency Award

Health & Safety Excellence Award

AFR Excellence Award

Plant Environment Excellence Award

Renewable Energy, Green Energy & CO 2 Excellence Award

Water Excellence Award

Productivity Excellence Award

Logistics Excellence Award

Received the following awards from IBM, Hyderabad:

1 st Prize for Environmental Monitoring (Mine-2)

1 st Prize for Sustainable Mine Development (Mine-1)

1 st Prize for Innovation in Mining (Mine-1)

2 nd Prize for Publicity & Propaganda (Mine-1)

3 rd Prize for Overall Mine Performance (Mine-1)

Gudipadu Unit:

Received Certificates of Appreciation from the Bureau of Indian Standards (BIS), Vijayawada, for OPC and PPC products.

Received the following awards from the Director of Mines Safety (DMS), Nellore Region:

1 st Prize for Safe Mine Workings

1 st Prize for Drilling & Blasting

1 st Prize for "Safety is My Responsibility & Zero Harm in Mines"

2 nd Prize for Electrical Installations

2 nd Prize for Crusher & Conveyor Belts

2 nd Prize for Safety Management System

Received a Merit Certificate from the National Safety Council of India (NSCI), Navi Mumbai, for achievements in Occupational Safety & Health.

Received following excellence awards at QCFI's 4 th National Environment & Sustainability Awards & Net Zero Conclave:

Energy Excellence Award

Health & Safety Excellence Award

AFR Excellence Award

Plant Environment Excellence Award

CSR Excellence Award

Sustainable Mining Excellence Award

Water Excellence Award

Productivity Excellence Award

Received the following recognitions from IBM,

Vijayawada Region:

2 nd Prize for Publicity & Propaganda

2 nd Prize for Afforestation

Received an Appreciation Certificate under the "Bangaru Kutumbalu" initiative (P4 Program) from the MLA of Tadipatri Constituency for contributions and participation in community development initiatives.

Bayyavaram Unit:

Achieved the GreenCo Platinum Rating awarded by CII.

Received the National Award for Energy Efficient Unit from CII.

Won the Gold Award at the Chapter Convention on Quality Concepts 2025 organized by QCFI, Visakhapatnam Chapter.

Received Appreciation Certificates from BIS for PSC, CC, and GGBS products.

Received recognition at QCFI's 4 th National Environment & Sustainability Awards 2025.

Received the National Safety Council of India Safety Award 2025.

Jajpur Unit:

Received a Certificate of Participation during "Manak Mahotsav - World Standards Day" from BIS, Bhubaneswar.

Received a Safety Award from BIS, Bhubaneswar.

Received a Certificate of Appreciation from the Red Cross Society, Cuttack.

Received appreciation from the ADM, Kalinganagar, for supporting "Sukinda Slipa Mahostav 2026" promoting cultural programs, music concerts, local art exhibitions, and performances by renowned artists.

Pursuant to Section 134 (5) of the Companies Act, 2013, your board of directors, to the best of their knowledge and ability, confirm that:

in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures;

the directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give

a true and fair view of the state of affairs of the company at the end of the financial year and of the Profit of the company for that period;

the directors have taken proper and sufficient care of 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;

the directors have prepared the annual accounts on a going concern basis;

the directors have laid down internal financial controls to be followed by the company, and such internal financial controls are adequate and operating effectively; and

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.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with the provisions of Section 152 of the Companies Act, 2013, Dr. S. Anand Reddy and Smt. S. Rachana will be retiring by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment. Necessary resolutions seeking the approval of the members for the re-appointments have been incorporated in the notice of the annual general meeting of the company.

Pursuant to the Shareholders' Agreement entered into between the Company and Telangana Industrial Development Corporation Limited (TSIDC) (demerged from Andhra Pradesh Industrial Development Corporation Limited), and based on the recommendation conveyed vide Letter No. TSIDC/ DGM/EPM/SAGAR CEMENTS/IND/322/26 dated January 9, 2026, received from TSIDC and on the recommendation made by the Nomination and Remuneration committee,

Board of Directors had re-appointed Smt N. Sudha Rani as a nominee director on the Board of the Company with effect from January 20, 2026 to January 31, 2028 which was later approved by the shareholders through postal ballot on March 13, 2026.

Pursuant to the shareholders agreement executed between the company and AvH Resources India Private Limited and on the recommendation made by the Nomination and Remuneration committee. Shri. Jens Van Nieuwenborgh has been appointed as nominee director of AvH Resources India Private Limited on the Board of the company with effect from September 18, 2024, which was later approved by the shareholders through postal ballot on November 28, 2024.

Your Board, pursuant to the recommendation made by its Nomination and Remuneration Committee, and taken in to account her vast experience in the area of finance, skills, knowledge and the substantial contribution made during her tenure has recommended the appointment of Smt. Onteddu Rekha as an Independent Director to hold office for a second term of five years with effect from June 30, 2025, which was later approved by the shareholders at their 44 th Annual General Meeting held on June 30 ,2025.

Except Smt S. Rachana, who is a director and major shareholder in R V Consulting Services Private Limited, whose transactions with the company have been reported under the related parties disclosure in the notes to the accounts, none of the other non-executive directors has had any pecuniary relationship or transactions with the company, other than the receipt of sitting fee for the meetings of the Board and Committees thereof attended by them.

INDEPENDENT DIRECTORS DECLARATION

The Company has received necessary declarations from all the Independent Directors of the Company in accordance with Section 149 (7) of the Companies Act 2013, that they meet the criteria of independence as laid down in Section 149(6) of the said Act and Regulation 16 (1) (b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"). There has been no change in the circumstances affecting their status as an Independent Director during the year.

The Independent Directors have also confirmed that they have complied with Schedule IV of the Companies Act, 2013 and the Company's Code of Conduct.

The Board of Directors is of the opinion that all the Independent Directors possess requisite qualifications, experience and expertise in industry knowledge and corporate governance and they hold highest standards of integrity.

NUMBER OF MEETINGS OF THE BOARD

During the year 2025-26, six meetings of the Board were held and the details of these meetings of the Board as well as its committees have been given in the corporate governance report, which forms part of the Integrated Report.

CREDIT RATING

Details of Credit Ratings obtained by the Company have been given in the corporate governance report, which forms part of the Integrated Report.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND OTHER DETAILS

The Company's policy on directors' appointment and remuneration and other matters provided in Section 178 (3) of the Companies Act, 2013 have been disclosed in the Corporate Governance Report.

Under Section 178 (3) of the Companies Act, 2013, the Nomination and Remuneration Committee of the Board has adopted a policy for nomination, remuneration and other related matters for directors and senior management personnel. A gist of the policy is available in the Corporate Governance Report.

BOARD EVALUATION

The Board of Directors have carried out an annual evaluation of its own performance and of its committees as well as its

individual directors, on the basis of criteria such as composition of the board/committee structure, effectiveness, process, information flow, functioning etc.

CHANGE IN THE NATURE OF BUSINESS

There were no change in the nature of business of the Company.

AUDITOR'S

M/s. B S R and Co, Chartered Accountants (Firm Registration No. 128510W), who were appointed as statutory Auditors' of the company by the Shareholders at their 44 th Annual General Meeting held on June 30, 2025 for a term of five years will be holding their said office from the conclusion of the said Annual General Meeting till the conclusion of the 49 th Annual General Meeting to be held in the year 2030, at such remuneration as may be mutually agreed between the Board of Directors of the Company and the said Auditors.

AUDITORS' REPORT AND SECRETARIAL AUDITORS' REPORT

AUDITOR'S REPORT

The Auditor's report does not contain any qualifications, reservations or adverse remarks and it is an unmodified one.

SECRETARIAL AUDITOR'S

M/s. B S S & Associates, practicing Company Secretaries (Firm Registration No. 3744) who were appointed as Secretarial Auditors' of the Company by the Shareholders at their 44 th Annual General Meeting held on June 30, 2025 for a term of five years will be holding their said office from the conclusion of the said Annual General Meeting till the conclusion of the 49 th Annual General Meeting to be held in the year 2030, at such remuneration as may be mutually agreed between the Board of Directors of the Company and the said Auditors.

SECRETARIAL AUDITORS' REPORT

In accordance with Section 204 (1) of the Companies Act, 2013, the report furnished by the Secretarial Auditors, who carried out the secretarial audit of the company under the said

Section is given in the Annexure-2, which forms part of this report. The Secretarial Audit Report of Sagar Cements (M) Private Limited, a material subsidiary of the company is also given in the said Annexure.

The Secretarial Audit Reports does not contain any qualification, reservation, or adverse remarks.

SECRETARIAL STANDARDS

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 from time to time and that such systems are found to be adequate and operating effectively.

MAINTENANCE OF COST RECORDS

Cost records are required to be maintained by the Company under Section 148 (1) of the Companies Act,

2013. Accordingly, such accounts and records are made and maintained.

COST AUDITORS

M/s. Narasimha Murthy & Co., Cost Accountants (FR No.000042), have been appointed as Cost Auditors of the company for the year ending March 31, 2027 A resolution seeking shareholders' approval for ratification of the remuneration payable to the said Cost Auditors has been included in the notice of the AGM.

The reports submitted by the Cost Auditors are duly filed with the appropriate authorities under Section 148 of the Companies Act, 2013.

DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS' UNDER SECTION 143 (12) OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT

No fraud was reported by the Auditors' under Sub-Section 12 of Section 143 of the Companies Act, 2013 read with the Rules made there under.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The particulars of loans, guarantees and investments have been disclosed in the financial statements at appropriate places.

DISCLOSURE OF ACCOUNTING TREATMENT

The applicable Accounting Standards as notified from time to time under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2016 issued by the Ministry of Corporate Affairs, have been followed in preparation of the financial statements of the company.

TRANSACTIONS WITH RELATED PARTIES

Information on transactions with related parties pursuant to Section 134 (3) (h) of the Companies Act, 2013 read with rule 8 (2) of the Companies (Accounts) Rules, 2014 are given in Annexure-3 in Form AOC-2 as part of this report.

All related party transactions entered into during the financial year were on an arm's length basis and in the ordinary course of business. There were no materially significant related party transactions entered into by the company with the promoters, key management personnel or other designated persons that may have potential conflict with the interests of the company at large. All related party transactions had prior approval of the Audit Committee and obtained shareholders' approval as and when required.

During the year 2025-26 your Company had not entered into transactions with any person or entity belonging to its promoter/promoter group, which holds 10% or more shareholding in the Company.

POLICY ON TRANSACTION WITH RELATED PARTIES:

Policy on dealing with related party transactions is available on the website of the company at

CORPORATE SOCIAL RESPONSIBILITY

The composition of CSR Committee and a brief outline of the Corporate Social Responsibility (CSR) Policy of the company along with the initiative taken by your Company are set out in Annexure-4 to this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. This policy is also available on the website of the company at, .

CYBERSECURITY COMMITMENT AND INITIATIVES

Your Company recognizes the critical importance of safeguarding our information assets and systems from ever- evolving cyber threats. As a responsible corporate entity, we are committed to protecting the confidentiality, integrity, and availability of the data entrusted to us by our customers, partners, employees, and other stakeholders. To this end, we have voluntarily embarked on a comprehensive Cybersecurity programme aimed at identifying, assessing, and mitigating potential risks across our IT infrastructure and processes.

We have engaged experts in the field of Cybersecurity and an entity empaneled with the Indian Computer Emergency Response Team (CERT-In), to conduct an in-depth cybersecurity assessment of our organisation. This exercise involved a thorough evaluation of our servers (including application, database, and report servers), endpoints, firewalls, network devices, and security practices against industry standards and best practices.

We have developed a time-bound plan to elevate our cybersecurity maturity to align with global standards and best practices. Implementation of high-priority initiatives, such as database activity monitoring and cybersecurity policy roll out, is already underway, with substantial completion of the remediation road-map targeted by end of FY2026.

As we progress on this multi-year journey, we will continue to assess and refine our cybersecurity strategies to stay ahead of emerging threats. Annual technical assessments, including Vulnerability Assessment and Penetration Testing (VAPT) exercises, will help validate our controls and identify new areas for improvement. We are also investing in the skills and resources needed to embed security as a core value and discipline across the organisation.

We firmly believe that a proactive and diligent approach to cybersecurity is essential to preserving the trust of our stakeholders and the resilience of our business in the digital era. Our voluntary engagement of external experts and adoption of industry best practices reaffirms SGC's commitment to upholding the highest standards of corporate governance and risk management.

We will keep our stakeholders updated on the progress of our cybersecurity initiatives through regular disclosures.

As always, we remain committed to fostering a secure and resilient operating environment and welcome any feedback or suggestions in this regard.

ANNUAL RETURN

The draft Annual Return in Form MGT-7 is available on the company's web site and the link for the same is .

PARTICULARS OF EMPLOYEES

The information required under Section 197 of the Act read with Rule 5 (1) and 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been given in the Annexure-5 , which forms part of this report.

The ratio of the remuneration of each director to the

median remuneration of the employees of the Company for the financial year:

The percentage increase in remuneration of each director, chief executive officer, chief financial officer, company secretary in the financial year:

The percentage increase in the median remuneration of employees in the financial year: 6.3%

The number of permanent employees on the rolls of Company: 818

The average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year is around 8%. The managerial remuneration is as per the approval accorded by the Nomination and Remuneration Committee of the Board and Shareholders.

* Face value of H2/- each ** Face value of H10/- each

g. Affirmation that the remuneration is as per the remuneration policy of the Company:

The Company affirms that the remuneration is as per its remuneration policy.

WHISTLE BLOWER POLICY

The Company has formulated and published a Whistle Blower Policy to provide Vigil Mechanism for directors and employees of the company to enable them to report their genuine concerns, if any. The provisions of this policy are in line with the provisions of the Section 177 (9) of the Act and the SEBI Listing Regulations and the said policy is available on the company's website at .

DEPOSITS FROM PUBLIC

The Company did not accept any deposits from public during the year.

DISCLOSURE ON DONATIONS TO POLITICAL PARTY

The Company did not donate any amount to political parties during the FY 2026.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The particulars required under Section 134 (3) (m) of the Companies Act, 2013 have been provided in the Annexure-6 , which forms part of this Report.

INSURANCE

All the properties of the Company have been adequately insured.

POLLUTION CONTROL

Your company is committed to keep the pollution at its plant within the acceptable norms and as part of this commitment, it has, inter-alia, adequate number of bag filters in the plant.

INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

During the year, the Company transferred the unclaimed and unpaid dividend of H2,32,487/- to IEPF. Further 47,785 corresponding equity shares on which dividends were unclaimed for seven consecutive years were transferred as per the requirements of the IEPF Rules. The details of the resultant benefits arising out of shares already transferred to the IEPF, year-wise amounts of unclaimed/unpaid dividends lying in the unpaid dividend account up to the year, and the corresponding equity shares, which are liable to be transferred, are provided in the Shareholder information section of the corporate governance report and are also available on our website, at .

DETAILS OF DIFFERENCE IN VALUATION

The requirement to disclose the details of difference between amount of the valuation done at the time of onetime settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof, is not applicable.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR)

Pursuant to Regulation 34(2)(f) of SEBI (LODR) Regulations, 2015, a Business Responsibility and Sustainability Report is given in Annexure-I .

OTHER DISCLOSURES

Your Directors state that no disclosure or reporting is required in respect of the following items, during the period under review:

There was no issue of equity shares with differential voting rights as to dividend, voting or otherwise etc.

There was no issue of shares (including sweat equity shares) to the employees of the Company under any Scheme.

No application has been admitted against the Company under the Insolvency and Bankruptcy Code, 2016.

There was no instance of one time settlement with any bank or financial institution.

Neither the Managing Director nor the Whole-time Director of the Company received any remuneration or commission from any of the subsidiary companies.

The Company has repaid the entire debt raised by issue of NCD's to IFC (International Finance Corporation)

ACKNOWLEDGEMENT

Your Directors place on record their appreciation of the valuable co-operation extended to the Company by its bankers and various authorities of the State and Central Government. Your Directors thank the Distributors, Dealers, Consignment Agents, suppliers and other business associates of your Company for their continued support. Your Board also takes this opportunity to place on record its appreciation of the contributions made by the employees of company at all levels and last but not least, of the continued confidence reposed by you in the Management.

For and on behalf of the Board of Directors