Your Directors take pleasure in submitting the 36^th Annual Report and the Audited Annual Accounts of the Company for the year ended 31 March, 2026.

1. FINANCIAL HIGHLIGHTS

(' in Lakhs)

Standalone Operating Results:

During the year under review, the Revenue from Operations of the Company is ' 3,76,285.62 Lakhs as compared to ' 3,48,644.76 Lakhs in the previous Financial Year. Exports Turnover registered in the same period is ' 2,18,933.60 Lakhs as against the Export Turnover of ' 1,99,639.28 Lakhs in the previous Financial Year.

During the year under review, Company has earned a Profit Before Tax (PBT) of ' 1,60,900.11 Lakhs and Profit After Tax (PAT) of ' 1,27,699.72 Lakhs as compared to PBT of ' 1,32,046.32 Lakhs and PAT of ' 1,02,150.88 Lakhs respectively in the previous Financial Year.

Consolidated Operating Results:

During the year under review, on a Consolidated basis, your Company (together with its Subsidiaries and Joint Ventures) has earned Revenue from Operations of ' 4,41,986.40 Lakhs as compared to ' 4,28,744.39 Lakhs in the previous Financial Year. Correspondingly, the Consolidated Profit After Tax (PAT) registered during the year under review is ' 1,27,015.82 Lakhs (After Minority Interest) as compared to PAT (After Minority Interest) of ' 1,06,073.60 Lakhs in the previous Financial Year.

2. DIVIDEND:

The Board of Directors is pleased to recommend a Dividend of ' 16.00 (800%) per Equity Share of the face value of ' 2/- each amounting to ' 14,931.26 Lakhs for the Financial Year 2025-26.

The Dividend, if declared/approved by the Shareholders at the ensuing Annual General Meeting, will be paid to those Shareholders, whose names stand registered in the Register of Members as on Record Date. In respect of shares held in dematerialised form, it will be paid to the members whose names are furnished by National Securities Depository Limited and Central Depository Services (India) Limited, as beneficial owners.

3. SHARE CAPITAL:

The paid up Equity Share Capital of the Company as on 31 March, 2026 is ' 1,866.41 Lakhs. During the year under review, the Company has neither issued shares with differential voting rights nor granted stock option or sweat equity.

4. FINANCE:

Cash and cash equivalents as at 31 March, 2026 were ' 21,506.40 Lakhs. The Company continues to focus on judicious management of its Working Capital, Receivables, Inventories, while other Working Capital parameters were kept under strict check through continuous monitoring.

Capital Expenditure Outlay:

During the year under review, the Company has incurred Capex of ' 10,414.95 Lakhs (including work-in-progress).

Deposits:

During the year under review, the Company has neither accepted nor renewed any deposits within the meaning of Section 73 of the Companies Act, 2013. Particulars of Loans, Guarantees or Investments: During the year under review, Company has not provided any loan but it has provided Guarantees covered under the provisions of Section 186 of the Companies Act, 2013. The details of Guarantees

provided and Investments made by the Company are given in the Notes to the Financial Statements.

Internal Financial Control and Audit:

The Company has in place adequate internal financial controls with reference to the Financial Statements. The Statutory Auditors of the Company have audited such controls with reference to the Financial Reporting and their Audit Report is annexed as Annexure A to the Independent Auditors' Report under the Standalone Financial Statements and the Consolidated Financial Statements which forms part of the Integrated Annual Report.

Related Party Transactions:

All the Related Party Transactions entered during the financial year were on an Arm's Length basis and were in the Ordinary Course of Business. There are no materially significant Related Party Transactions made by the Company with Promoters, Directors, Key Managerial Personnel (KMP) which may have a potential conflict with the interest of the Company at large.

Prior Omnibus approval of the Audit Committee is obtained on yearly basis for the transactions which are of a foreseen and repetitive nature. The transactions entered into pursuant to the omnibus approval so granted were placed before the Audit Committee and the Board of Directors for their approval on quarterly basis. The details of Related Party Transactions entered by the Company are disclosed in Form AOC-2 - as per Annexure A.

The Policy on Related Party Transactions as approved by the Board of Directors is uploaded on the website of the Company viz. https://aiaengineering.com/ wp-content/uploads/2026/02/Policy-Related-Party-Transactions.pdf.

Credit Rating:

CRISIL has reaffirmed the Long Term rating and the Short Term rating of the Company as CRISIL AA / Stable and CRISIL A1 respectively.

Dun & Bradstreet Information India Private Limited (D&B) has evaluated the Company during September, 2024 and reassigned a Dun Bradstreet Rating of 5A I, which indicates that overall status of the Company is Strong.

5. HUMAN RESOURCES:

Among the various resources essential for the success of any organisation, human capital stands as one of the most impactful. Recognising its significance, your Company dedicates considerable time and effort to nurturing and developing this invaluable asset, ensuring its optimal contribution to the Company's growth and success.

Every asset requires careful management, maintenance and development-human resources are no exception. Given its critical importance, Company continuously seeks innovative and efficient approaches to talent management. To achieve this, your Company collaborates with leading global agencies and consultants, ensuring access to top-tier professionals in its domain.

Securing exceptional talent is just the beginning; fostering growth through structured training is equally vital. Company upholds a corporate philosophy of continuous improvement, offering comprehensive orientation programs and periodic skill enhancement initiatives. To facilitate this, it has established a dedicated training and development cell that systematically tailors programs based on individual skill mapping.

Employee safety and well-being are foundational to our corporate ethos. Company prioritises both physical and mental health by promoting safe work practices and championing holistic wellness. Regular wellness sessions, such as expert-led yoga workshops, underscore its commitment to the overall well-being of its workforce.

Just like any asset, employees have a lifecycle and optimising it is a scientific and strategic endeavor. Your Company meticulously structures each stage—onboarding, training, career progression and succession planning—to maximise value. Objective performance appraisal system of the Company ensures fairness, accountability and meaningful growth opportunities for all team members.

At the heart of its organisational philosophy lies continuous refinement of HR practices. Through collaboration with leading consultants, Company remains at the forefront of talent acquisition, organisational structuring, and human resource management. While honoring the core values, Company embraces modern strategies and innovations to enhance operational efficiency, leveraging its carefully curated talent pool to propel its growth trajectory. Effective 21 November 2025, the Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour codes referred to as "New Labour Codes”. The Company has assessed its employee benefit obligations in accordance with the revised definition of wages and FAQs issued by The Ministry of Labour & Employment. Accordingly, an incremental liability of ' 433.35 lakhs towards gratuity has been recognised during the year ended 31 March 2026.

6. MATERIAL CHANGES, TRANSACTIONS AND COMMITMENTS:

There are no material changes and commitments, affecting the financial position of the Company which

have occurred between the close of Financial Year on 31 March, 2026 to which the Financial Statements relates and the date of this Report.

Effective 21 November 2025, the Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour codes referred to as "New Labour Codes". The Company has assessed its employee benefit obligations in accordance with the revised definition of wages and FAQs issued by The Ministry of Labour & Employment. Accordingly, an incremental liability of ' 433.35 lakhs towards gratuity has been recognised during the year ended 31 March 2026.

7. BUSINESS PROSPECTS:

Company manufactures a range of Hi-chrome consumable wear parts like Grinding Media, Mill Liners, and Castings collectively referred to as Mill internals that are used in the process of Crushing and Grinding in Cement, Mining and Thermal Power industries.

With a strong foundation in areas of engineering, metallurgy and comminution technology, the Company has since last few years focused on Mining Industries as a pillar of growth. The Serviceable Addressable market opportunity is in excess of 2 million tonnes per annum in the segments of Gold, Copper and Iron Ore Mining where the Company is focused on-and the penetration of High Chrome mill internals is not more than 25-30%, which offers a significant headroom for conversion of Mines into High Chrome based solutions offered by the Company. However, since last few years, the Company has been facing several challenges in the form of competition from local Players, trade barriers like Anti-dumping duties and general resistance to change. To overcome these challenges, the Company has made considerable transformative efforts over last few years to radically change its approach to induce the Mines in converting to the Company's solutions.

Company's solutions contemplate to enhance grinding efficiency, operational reliability, recovery of metal, resulting in total value of performance for Mining Industries worldwide where grinding capacity is severely constrained due to deteriorating quality of ore bodies both in terms of metal content and grindability due to higher hardness.

Unlike traditional wear parts suppliers, Company has emerged as a strategic performance partner for mining industries. The Company's focus is now shifted to provide end-to-end solutions for grinding mills, enabling its customers to improve grinding efficiency through highly reliable replacement parts (mill internals). Company's core strength lies in designing application-specific grinding solutions,

tailored to customer's unique operating conditions and performance objectives, which require high reliability and process improvement focused on increase in output, recovery and energy saving. The Company is now offering a complete package of tailor made solutions for SAG mills and Ball Mills- primarily involving designing and supplying a combination of Mill Liners (Metal, Rubber and Composite Liners), along with a Unique New Generation Discharge System, which ensures strong improvement in the operating efficiencies of the Mills, resulting into a significant savings in the Power costs and a remarkable improvement in the recoveries of metals. The Grinding efficiency improvement (increased output/reduction in energy consumption) is done through NewGen discharge system and lining system. The Company has, over last 3 years, modified grinding mills in iron ore, copper and gold in more than 12 mills located in mines in different geographies. With 100% success rate, the Company now is at an advance stage of conducting similar trials in some of the largest Copper and Gold Mines in Chile, Peru and Ghana, which will establish the uniqueness of the solutions offered by the Company on the Global Mining map. As a natural corollary, the Company expects to increase the sale of Grinding media also in this space- as a crossselling proposition. The Company's Key differentiators vis-a-vis the competition are Ability to offer total solution for Mill Grinding Efficiency and Reliability; a Comprehensive Product portfolio including Mill Liners, New Generation Discharge System, and Grinding Media, Manufacturing Excellence, Global Supply Chain & Execution, and a Global Service Network.

The cement industry continues to be closely aligned with global infrastructure development trends. In several developed economies, infrastructure spending has largely plateaued, leading to relatively stable cement production levels and, consequently, steady demand for the Company's products. However, high-growth markets such as India continue to witness significant government-led investments in infrastructure, which are expected to drive higher cement consumption and increased demand for the Company's wear parts and related solutions. The Company also continues to enjoy its dominant position in the Thermal Power Industry in India, which is also now poised to grow, given the impetus on this sector as well now being considered in wake of significant increase in the Demand for Power expected due to massive investment planned in the Data Centers in India.

The Company remains confident of its longterm growth prospects, supported by continued customer acquisition and increasing opportunities within the mining segment. The Company believes that its differentiated product portfolio, efficient manufacturing facilities in India, strong global sales

and technical support network, international office and warehouse infrastructure, and ongoing product development initiatives collectively provide a distinct competitive advantage. These capabilities position the Company well to achieve sustained growth and further strengthen its presence in global markets.

8. FUTURE EXPANSION:

Company's robust liquidity framework enables it to maintain financial flexibility while pursuing growth opportunities. Despite challenges such as disturbed geo political scenario, Company has consistently focused on generating net cash flow from operations. In FY 2025-26, the Company generated net cash of ' 612.54 Crore from operations ensuring adequate resources to fund reinvestments and mitigate financial risks. Company's internal accruals supports strategic investments and sustainable expansion.

The Company's current capacity stands at 4,36,000 MT per annum (After Closure of Welcast Plant at Bangalore).

Company is reviewing implementation of manufacturing plants at China and Ghana in phased Manner since last one year. However, considering current Geo Political Scenario, Company is acting cautiously on subject matter. Same process would be expedited in second half of FY 2026-27 hoping overall Geo Political scenario will normalise.

Company has taken up ambitious renewable Power project of INR 30 Cr during FY 2025-26. Said project was expected to start in second half of the fiscal year

2025- 26 however same will become operational from beginning 2^nd Quarter of fiscal year 2026-27. In fiscal year 2026-27 from second half, it is estimated that 60% to 70% of total power consumption will come from renewable sources.

Company is planning to provide flexibility to its recently commissioned Rubber and Composite Liners manufacturing plant by investing ' 25 Crores in FY

2026- 27.

9. SUBSIDIARY COMPANIES/ASSOCIATE COMPANY:

Pursuant to the provisions of Section 129(3) of the Companies Act, 2013, a Statement containing salient features of Financial Statement of Subsidiary Companies in Form AOC 1 is given as Annexure B.

The Company will make available the Annual Accounts of the Subsidiary Companies and the related detailed information to any member of the Company who may be interested in obtaining the same. The Annual Accounts of the Subsidiary Companies will also be kept open for inspection at the Registered Office of the Company. The Consolidated Financial Statements presented by the Company include financial results of

its Subsidiary Companies and Joint Ventures.

The separate Audited Financial statements in respect of each of the Subsidiary Companies are also available on the website of your Company at https://aiaengineering.com/investor-financials/. Vega Industries (Middle East) FZC, UAE has additionally acquired 14% stake in the business of Vega MPS Pty Ltd., Australia making total stake of 70%.

The Board of Directors of Welcast Steels Limited ("WSL'), a Subsidiary Company, in its meeting held on 15 October 2025 had decided to close down its only factory at Bangalore w.e.f. 15 December 2025. Since labour disputes are pending before various courts and other judicial forums, management intends to maintain the status quo.

10. INSURANCE:

The Company has taken adequate insurance coverage of all its Assets and Inventories against various types of risks viz. fire, floods, earthquake, cyclone, etc.

11. INDUSTRIAL RELATIONS (IR):

The Company continues to maintain harmonious industrial relations. Company periodically reviews its HR policies and procedures to aid and improve the living standards of its employees, and to keep them motivated and involved with the larger interests of the organisation. The Company has systems and procedures in place to hear and resolve employees' grievances in a timely manner and provides avenues to its employees for their all-round development on professional and personal levels. All these measures aid employee satisfaction and involvement, resulting in good Industrial Relations.

12. CORPORATE GOVERNANCE:

In line with the Company's commitment to good Corporate Governance Practices, your Company has complied with all the mandatory provisions of Corporate Governance as prescribed in Regulations 17 to 27 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (SEBI LODR Regulations).

A separate Report on Corporate Governance and Practicing Company Secretary's Report thereon is included as a part of the Annual Report.

13. MANAGEMENT DISCUSSION AND ANALYSIS (MDA):

MDA covering details of Operations, International Markets, Research and Development, Opportunities and Threats etc. for the year under review is given as a separate Statement, which forms part of this Annual Report.

14. RISK MANAGEMENT:

Risk Management Process is navigating a Dynamic Environment. The Company faces diverse risks in its operations and commitments. In response, Company has instituted a robust risk management process that empowers it to identify, assess and mitigate such risks proactively. The Risk Management approach of the Company is pivotal in protecting its stakeholder's interests, ensuring consistent and sustainable growth, augmenting its value and successfully realising its strategic objectives.

Risk Management Process Risk Identification:

• Identifying potential events impacting the successful implementation of strategies or the achievement of objectives.

• Events can arise from internal or external factors.

• Identified risks are then classified into three categories: Unit risk, Industry risk and Macroeconomic risk.

Risk Assessment and Mitigation

• Perform risk assessment to evaluate the potential impact of identified risks on achieving objectives.

• Risks are classified as Low, Medium or High based on their assessed impact and likelihood.

• To address the risks, mitigation plans are developed with specific timelines for implementation.

Creating and updating Risk Register

• Identified risks and approved mitigation plans are recorded in risk registers.

• Risk registers are reviewed and updated every quarter.

Risk Monitoring

• Monitoring the approved mitigation plan closely.

• Providing regular updates on the progress of its execution.

Review and Reporting

• Periodically identify and report top-priority risks and any significant policy deviations.

Board of Directors

The highest level of authority responsible for overseeing the overall risk management activities of the organisation.

Risk Management Committee (RMC)

Key to guiding the development of the Risk Management framework; monitoring and reviewing the Risk Management Policy and reporting to the Board on Risk Management activities.

Chief Risk Officer (CRO)

The CRO oversees risk management processes at the management level, reviewing reports of Risk Champions for reporting to the RMC, ensuring alignment with the risk management framework objectives, serving as a communication link between the RMC and Risk Champions and recommending framework improvements in line with global best practices.

Risk Champions

Unit heads and Head of Departments designated as Risk Champions monitor the external, macro-economic and industry landscapes, identify and assess risks and develop appropriate mitigation strategies within their respective areas of responsibility.

Risk Coordinators

Individuals designated as Risk Coordinators work closely with Risk Champions to support risk management activities in monitoring risks, implementing mitigation strategies and ensuring effective communication within their designated areas.

Enterprise Risk Management (ERM) Framework

Company's robust ERM Framework guides its practices in identifying, mitigating and monitoring key business risks. Company's risk management framework is aligned with operational and strategic objectives to enhance operational efficiency and safeguard shareholder's value. The framework offers a holistic view of your Company's strategic and operational risk position, facilitating continuous assessment and monitoring of overall risk exposure.

Aligning ERM with COSO framework

Your Company's Risk Management Policy aligns its risk management framework with the globally recognised Committee of Sponsoring Organisations (COSO) Framework for Enterprise Risk Management, integrating risk with strategy and performance. This commitment has competitively positioned the Company in a dynamic market. By incorporating risk into strategy-setting, your Company makes informed decisions, strategically allocate capital, strengthen risk oversight and manage performance effectively. This approach empowers the Company to identify opportunities within its risk appetite, foster resilience and enhance its marketplace reputation.

Internal Control Systems

To supplement its ERM framework, the Company has implemented robust internal control systems to ensure efficiency in operations, optimum utilisation of resources, reliable financial reporting and compliance with all applicable laws & regulations. The internal control system is aligned with the COSO Internal

Control Integrated Framework. Well-defined Risk Control Matrices of the Company serve as the primary document for internal control assessment, categorised into entity and process-level controls and IT controls. The design and operating effectiveness of internal controls are evaluated by the Internal Auditors (all controls) as well as by the Statutory Auditors (controls concerning financial statements). The findings are presented to the Audit Committee on a periodic basis.

Key Risks

Please refer to the Management Discussion and Analysis Section of this Report which describes key risks that may impact the operations of the Company.

15. POLICIES:

(a) Vigil Mechanism / Whistle Blower Policy:

The Company has adopted a Vigil Mechanism/ Whistle Blower Policy through which the Company encourages employees to bring to the attention of Senior Management including Audit and Risk Management Committee, any unethical behavior and improper practice and wrongful conduct taking place in the Company. The brief details of such vigil mechanism forms part of the Corporate Governance Report.

(b) Policy on protection of Women against Sexual Harassment at Workplace:

I n line with the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 and Rules made thereunder, the Company has adopted a policy for the same. The brief details of the said policy form part of the Corporate Governance Report of this Annual Report. The Company has not received any complaint during the Financial Year 2025-26 in this regard.

(c) Code of Conduct to Regulate, Monitor and Report Trading by Insiders:

In Compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, the Company has revised Model Code of Conduct of Insider Trading Regulations from time to time. The Company adopted the Code of Conduct to regulate, monitor and report trading by Designated Person(s) in order to protect the Investor's Interest. The details of the said Code of Conduct forms part of the Corporate Governance Report.

(d) Policy for Business Responsibility and Sustainability Report:

In pursuance of Regulation 34 of SEBI LODR Regulations, top 1000 companies based on market capitalisation (calculated as on March 31 of every financial year) are required to prepare and enclose with its Annual Report, a Business Responsibility and Sustainability Report describing the initiatives taken by them from an environmental, social and governance perspectives. A separate report on Business Responsibility and Sustainability Report is annexed herewith as Annexure C.

(e) Dividend Distribution Policy:

The Board of Directors had approved the Dividend Distribution Policy in line with SEBI LODR Regulations. The Policy is hosted on website of the Company at https://aiaengineering.com/wp-content/uploads/2025/04/Dividend-Distribution-Policy.pdf.

16. DIRECTORS AND KEY MANAGERIAL PERSONNEL

(KMP):

(a) Board of Directors and KMP

Mr. Rajendra S. Shah, Chairman and NonExecutive Director of the Company has resigned as the Chairman & Non-Executive, NonIndependent Director of the Company with from close of business hours on 20th April, 2026 and Mr. Bhadresh K. Shah, Managing Director of the Company became the Chairman of the Company with effect from 21 April, 2026. Now the Board of Directors of the Company is led by the Chairman & Managing Director and comprises nine other Directors, including one Whole-Time Director, five Independent Directors (including one Woman Independent Director) and three Non-Executive Directors (other than Independent Directors).

All the Independent Directors of the Company have furnished declarations that they meet the criteria of Independence as prescribed under the Companies Act, 2013 and SEBI LODR Regulations.

Considering the integrity, expertise and experience (including the proficiency), the Board of Directors recommends the reappointment of Mrs. Bhumika Shyamal Shodhan (DIN: 02099400), Director of the Company who retires by rotation at the ensuing Annual General Meeting and being eligible, offered herself for re-appointment.

The Board of Directors also recommends the reappointment of Mr. Bhadresh Kantilal Shah (DIN:00058177) as Managing Director of the Company for a period of five years with effect from 01 October, 2026.

Mr. Udayan Dileep Choksi (DIN: 02222020) has been appointed as an Independent Director with effect from 20 September, 2025 for a first consecutive term of five years which is approved

by shareholder on 35 Annual General Meeting dated 15 September, 2025.

Mr. Nitin Chandrashanker Shukla (DIN: 00041433) has been appointed as an Independent Director of the Company with effect from 30 January, 2026. Appointment of Mr. Nitin Chandrashanker Shukla has been approved by shareholders on 14 March, 2026. Mr. Malay Jaynedra Dalal (DIN: 01896746) has been appointed as an Independent Director of the Company with effect from 20 April, 2026 subject to the approval of shareholders.

The Board of Directors is satisfied about the integrity, expertise and experience (including proficiency) of all Independent Directors appointed by the Company.

As required under SEBI LODR Regulations amended from time to time, the information on the particulars of the Director proposed for appointment/reappointment has been given in the Notice of the Annual General Meeting.

(b) Meetings:

During the year under review, six Board Meetings

and four Audit Committee Meetings were

convened and held. The detail of composition of

Audit Committee is as under:-

Mr. Piyush B. Shah, Chairman

Mrs. Janaki U. Shah, Member

Mr. Sanjay S. Majmudar, Member

Mr. Udayan D. Choksi, Member

All recommendations made by the Audit

Committee during the year were accepted by the

Board.

The details of Composition of all the Committees and dates of the meetings are given in the Corporate Governance Report. The intervening gap between the meetings was within the period prescribed under the Companies Act, 2013 and SEBI LODR Regulations.

(c) Committees of the Board of Directors:

In compliance with the requirement of applicable laws and as part of the best governance practice, the Company has following Committees of the Board as on 31 March, 2026.

(i) Audit Committee

(ii) Stakeholders Relationship Committee

(iii) Nomination and Remuneration Committee

(iv) Corporate Social Responsibility Committee

(v) Risk Management Committee

The details with respect to the aforesaid Committees are given in the Corporate Governance Report.

(d) Board Evaluation:

Pursuant to the provisions of the Companies Act, 2013 and SEBI LODR Regulations, 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 Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

(e) Familiarisation Program for Independent Directors:

The Independent Directors have been updated with their roles, rights and responsibilities in the Company by specifying them in their Appointment Letter alongwith necessary documents, reports and internal policies to enable them to familiarise with the Company's procedures and practices. The Company has through presentations at regular intervals, familiarised and updated the Independent Directors with the strategy, operations and functions of the Company and Engineering Industry as a whole. The details of such familiarisation programmes for Independent Directors is posted on the website of the Company and can be accessed at https://aiaengineering.com/wp-content/ uploads/2026/06/Independent-Director-Familiarization-Program-2025-26.pdf.

(f) Nomination and Remuneration Policy:

The Board has on the recommendation of the Nomination & Remuneration Committee framed a Policy for selection and appointment of Directors, Senior Management Personnel and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report which is a Part of the Board's Report. The detailed Policy is placed on the website of the Company at https://aiaengineering.com/wp-content/ uploads/2025/04/Nomination-Remuneration-Policy-.pdf.

(g) Directors' Responsibility Statement:

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 Clause (c) of Sub-Section (3) of Section 134 of the Companies Act, 2013, which states that—

i. in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

ii. 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;

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

iv. the Directors have prepared the Annual Accounts on a going concern basis;

v. the Directors have laid down Internal Financial Controls to be followed by the Company and that such Internal Financial Controls are adequate and were operating effectively; and

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

17. AUDITORS:

Statutory Auditors:

BSR & Co. LLP, Chartered Accountants (Firm Registration 101248W/W-100022) were re-appointed as Statutory Auditors of the Company for a period of five years from the conclusion of 32^nd Annual General Meeting till the conclusion of 37^th Annual General Meeting.

The Report given by the Auditors on the Financial Statements of the Company is part of this Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report.

Internal Auditors:

The Board of Directors at the recommendations of the Audit Committee appointed Talati & Talati LLP Chartered Accountants as Internal Auditors of the Company for the F.Y. 2026-27.

On the recommendation of the Audit Committee, Board of Directors has also appointed Sharp & Tannan Associates, Chartered Accountants, as Internal Auditors to carry out Internal Audit for the Procurement, Store Management and Finance & Accounts Functions of the Company for the F.Y. 2026-27.

Cost Auditors:

Pursuant to and in compliance with the provisions of Section 148(1) of the Act and Rules framed thereunder, the Company has maintained the cost accounts records.

The Cost Auditors has filed the Cost Audit Report with Ministry of Corporate Affairs for the Financial Year ended 31 March, 2025 on 21 August, 2025.

The Board of Directors on the recommendation of the Audit Committee has appointed Kiran J. Mehta & Co., Cost Accountants, Ahmedabad as the Cost Auditors of the Company to conduct the audit of the cost accounting records of the Company for the F.Y. 2026-27. As required under the Companies Act, 2013, the remuneration payable to the Cost Auditors is required to be placed before the members of the Company for their ratification at the ensuing Annual General Meeting. Accordingly, a resolution seeking members' ratification to the remuneration payable to Kiran J. Mehta & Co., Cost Accountants, Ahmedabad is included in the Notice convening the 36^th Annual General Meeting.

Secretarial Auditors:

pursuant to Regulation 24A of SEBI LODR Regulations, the Company has appointed, Mr. Tushar M. Vora, Practicing Company Secretary (Peer Review No. 7768/2026), Ahmedabad as Secretarial Auditors of the Company for a term of five years of the Company to hold office from 01 April, 2025 to 31 March, 2030 to conduct Audit of the Company's Secretarial and other related records.

The Report on the Secretarial Audit for the year ended 31 March, 2026 is annexed herewith as Annexure D to this Board's Report. There was no qualification / observation in the report.

18. PARTICULARS OF ENERGY CONSERVATION,

TECHNOLOGY ABSORPTION AND FOREIGN

EXCHANGE EARNINGS AND OUTGO:

The additional information regarding 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 annexed herewith to this report.

19. CONSOLIDATED FINANCIAL STATEMENTS:

The Consolidated Financial Statements of the Company prepared in accordance with relevant Indian Accounting Standards (Ind AS) viz. Ind AS-27, Ind AS-28 and Ind AS-110 issued by the Ministry of Corporate Affairs, form part of this Annual Report.

20. ANNUAL RETURN:

I n accordance with the provisions of Section 92(3) of the Companies Act, 2013, Annual Return of the Company as on 31 March, 2026 is hosted on website of the Company at https://aiaengineering.com/wp-content/uploads/2026/07/Annual-Return.pdf.

21. CORPORATE SOCIAL RESPONSIBILITY (CSR):

As per the provisions of Section 135 of the Companies Act, 2013 and Rules made thereunder, the amount required to be spent on CSR activities during the year under review, was ' 2,419.48 Lakhs and the Company has spent ' 2,419.48 Lakhs during the Financial Year ended 31 March, 2026. The requisite details of CSR activities carried by the Company pursuant to Section 135 of the Companies Act, 2013 is annexed as Annexure E.

The composition and other details of the CSR Committee is included in the Corporate Governance Report which form part of the Board's Report.

22. PARTICULAURS OF EMPLOYEES:

The information required pursuant to Section 197 of Companies Act, 2013 read with Rule 5 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is annexed as Annexure F. The Statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this report. However, in terms of Section 136 of the Act, the Annual Report is being sent to the shareholders and others entitled thereto, excluding the said annexure, which is available for inspection by the shareholders at the Registered Office of your Company during business hours on working days of your Company. If any shareholder is interested in obtaining a copy thereof, such shareholder may write to the Company Secretary in this regard.

23. ENVIRONMENT, HEALTH AND SAFETY:

Environmental management efforts continue to focus on resource efficiency, circular economy practices, waste minimisation, and emissions reduction. Commitment towards reducing the overall environmental footprint is driven through responsible operational practices, adoption of cleaner technologies and continuous process improvement across manufacturing operations. These efforts are further reinforced through the implementation of certified environmental management systems at the Moraiya and Kerala (Grinding Media) facilities under ISO 14001. Key environmental initiatives include:

• Circular Economy:

> Elimination of plastic below 50 microns across operations and corporate locations, with the initiative also being extended to suppliers through procurement and purchase order requirements.

• Waste to Wealth: Multiple initiatives have been undertaken towards transforming industrial waste into reusable resources through recycling, recovery, and co-processing solutions.

> Co-processing of oily sludge: A co-processing approach has been adopted wherein oily sludge generated from operations is pre-processed and utilised as an alternate fuel source. This practice supports environmentally responsible waste management through conservation of natural resources, reduction in fossil fuel consumption and avoidance of emissions associated with conventional disposal practices and additional fuel usage.

> Waste Sand Recovery and Reuse: Waste sand is recovered and reused through partnerships with the cement industry, wherein processed waste sand is utilised in cement manufacturing, thereby supporting circular utilisation of industrial byproducts.

> Sand Reclamation and Reuse: Approximately 90% of sand is reused through thermal and mechanical reclamation systems, significantly reducing fresh sand consumption and minimising operational sand waste generation.

> Slag Recovery and Reuse: Slag generated during manufacturing operations is recovered and reused, accounting for approximately 4% of the total material recovered and reused during operations.

> Use of Recycled Scrap as Raw Material: The

Company extensively utilises discarded scrap as a key raw material input across manufacturing operations, supporting resource conservation and circular material utilisation.

> Composting of Organic Waste: Food waste generated from canteen operations is composted and converted into organic manure for beneficial reuse.

> Manufacturing Sustainable Bricks: Approximately 55,000 bricks have been manufactured using waste sand, dust, and plastic waste, promoting innovative reuse of low-value waste streams.

• Enhanced resource efficiency: Resource-efficient technologies, process optimisation, and improved raw material utilisation continue to remain focus areas for reducing overall resource consumption and improving operational efficiency.

> Induction Furnace-Based Melting Process: Our melting operations are primarily based on induction furnaces powered by electricity.

> Use of Piped Natural Gas (PNG): Piped Natural Gas (PNG) has been progressively adopted in

place of conventional fossil fuels (LDO) across operations to reduce Scope 1 emissions and improve fuel efficiency.

> Installation of Variable Frequency Drives (VFDs):

Variable Frequency Drives (VFDs) have been installed in the dust collection system at the Moraiya facility to optimise power consumption and improve operational efficiency.

> Auxiliary Power Monitoring During Shutdown: Auxiliary power control and monitoring measures have been implemented during shutdown periods through chiller-related optimisation initiatives to reduce unnecessary power consumption.

> Optimisation of Furnace Cooling Pump Operations: Operational improvements have been implemented in the IT furnace cooling pump systems, resulting in significant reduction in power consumption during cold start conditions.

> Reduction in Non-Essential Lighting Consumption: Measures have been undertaken across plant locations to minimise non-essential lighting usage during non-operational hours.

• Climate Change and Emissions Management:

> GHG Emissions Accounting: Since 2021, greenhouse gas emissions across Scope 1, Scope 2 and relevant Scope 3 categories have been estimated and monitored. Renewable energy expansion targets have also been established to progressively reduce emissions intensity over the years.

> Oil Waste as an Alternate Fuel: Oil (oil sludge) waste generated from operations is reprocessed and utilised as an alternate fuel source, resulting in reduction of emissions associated with conventional disposal methods while enabling recovery and reuse of energy generated through the process. This transition has contributed to greenhouse gas emission reduction of approximately 27 MT CO₂e, while also supporting resource conservation through reduced fossil fuel consumption and avoidance of additional CO₂ emissions of approximately 14 MT.

> Reuse of Hot Water from Induction Furnace: As part of the circular resource utilisation approach, hot water recovered from induction furnace operations is further reused in the LPG vaporiser system, enabling recovery and reuse of process heat, improving resource efficiency and resulting in estimated greenhouse gas emission savings of approximately 221 MT CO₂e annually.

> Focus on Local Procurement: Increasing focus is being placed on local procurement within Gujarat to reduce transportation and distribution-

related emissions associated with supply chain operations.

> Other Low-carbon initiatives: As part of its broader sustainability and ecosystem conservation efforts, the organisation continues to undertake plantation drives and promote lower-carbon operational practices, including the use of electric vehicles. As part of a larger programme to plant 1,00,000 trees, total 30,026 saplings are planted and are being maintained across locations, supporting biodiversity enhancement, ecosystem restoration, and long-term carbon sequestration.

• Renewable Energy Expansion:

> Since 2019, investments have been made in renewable power generation infrastructure as part of the long-term decarbonisation strategy. Continued focus on renewable energy capacity expansion and adoption of lower-carbon fuel alternatives is expected to progressively increase the share of renewable electricity consumption to approximately 50% over the next year.

• Water Conservation and Management: Multiple initiatives focused on efficient water utilisation, wastewater recovery and long-term water sustainability have been implemented across operations.

> Dry Cooling Tower Systems: Dry cooling tower systems have been adopted in place of conventional wet cooling systems to reduce freshwater consumption.

> Zero Liquid Discharge (ZLD) Operations: Facilities operate under a 100% Zero Liquid Discharge (ZLD) framework, enabling treatment, recovery, and reuse of wastewater within operations. Investments have also been made in Sewage Treatment Plants (STPs) and related treatment infrastructure to further improve water recycling efficiency, with planned investments aimed at strengthening and expanding these initiatives.

> Groundwater Recharge and Rainwater Harvesting: Multiple groundwater recharge and rainwater harvesting structures have been established to support groundwater replenishment and maintain groundwater levels in surrounding areas.

HEALTH & SAFETY:

A proactive and prevention-focused approach towards health and safety continues to remain integral to operations, with consistent efforts towards building a strong zero-harm safety culture based on responsibility, awareness, and safe working practices. The approach is focused on the prevention of incidents, reducing occupational risks and protecting the physical and

mental well-being of employees, contractors, and visitors across locations.

Key health and safety initiatives include:

> Safety Governance Framework: Established safety governance mechanisms to ensure compliance with legal requirements and internal safety standards across operations.

> Training and Awareness Program: Regular safety training, awareness sessions and behavior-based safety initiatives conducted across locations to strengthen safety consciousness among employees.

> Employee Participation in Safety: Continued focus on creating a culture where employees actively participate in and take ownership of workplace safety practices.

> Safety Audits and Risk Assessments: Periodic safety audits, hazard identification exercises, risk assessments, and emergency preparedness drills conducted across facilities.

> Occupational Health and Well-being: Regular health camps, medical check-ups, and wellness initiatives, including stress management programmers, undertaken to support employee health and well-being.

> ISO 45001 Certified Operations: The Moraiya and Kerala (Grinding Media) facilities are certified under ISO 45001, supporting a structured approach towards occupational health and safety management across operations.

SUSTAINABILITY & SOCIAL RESPONSIBILITY:

The Company's approach towards sustainability is holistic, integrating environmental, economic, and social considerations into its operations for longterm value creation. The well-being and safety of the workforce and surrounding communities continue to remain important priorities across operations. Company believes that collaborative engagement and shared responsibility are essential for sustainable growth and continue to contribute towards building a knowledge-based and inclusive society through the following initiatives:

> Collaboration with universities to foster innovation and R & D through joint projects and applied learning. Established Skill Development Centre at GPERI, Mehsana, (Gujarat Technological University - AIA Foundry) to enhance industry-readiness among youth.

> Establishment of in-house Knowledge Center to

enhance the knowledge of workforce.

> Evaluate the ESG health of the business partners:

Company evaluates the ESG performance and ethical practices of its significant upstream vendors through structured supplier assessment mechanisms and have also initiated ESG assessments for downstream value chain partners. These initiatives are aimed at strengthening sustainability awareness, responsible business practices, and ESG alignment across the broader value chain.

> Strategic CSR investments are aimed at healthcare, education, livelihood, and community infrastructure development.

> Low-Carbon Product Solutions: Company supports customers in their Net Zero transition journey through sustainable and efficiencyenhancing products. Continuous improvements in manufacturing processes and resource efficiency have also contributed towards reducing the emissions intensity associated with products over the years.

Local Procurement and Responsible Sourcing:

Continued focus on local procurement and responsible sourcing practices to reduce supply chain-related environmental impacts and strengthen regional economic participation.

24. FRAUDS:

During the Financial Year ended on March 31, 2026, the statutory auditors, the cost auditors and the secretarial auditors have not reported to the Audit Committee, under section 143(12) of the Act, any instances of fraud committed against the Company by its officers or employees, the details of which would need to be mentioned in the Board's Report.

25. SECRETARIAL STANDARDS:

The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Meetings of the Board of Directors and General Meetings.

26. GENERAL DISCLOSURES:

During the Financial Year ended on March 31, 2026, the Company has not-

(i) i ssued any shares, warrants, debentures, bonds or any other convertible or non-convertible securities,

(ii) issued any shares with differential voting rights,

(iii) issued any sweat equity shares, and

(iv) made any changes in voting rights.

i n terms of Section 134(3) of the Act read with Rule 8(5) of the Accounts Rules, for the Financial Year ended on March 31,2026:

(i) t here were no proceedings initiated / pending against the Company under the Insolvency and Bankruptcy Code, 2016 which can materially impact the business of the Company,

(ii) there were no instances where the Company required the valuation for a one-time settlement or while taking the loan from the Banks or Financial institutions, and

(iii) no significant or material orders were passed by the Regulators or Courts or Tribunals impacting the going concern status of the Company and its operations in the future.

The equity shares of the Company were not suspended for trading during the Financial Year ended on March 31,2026.

Disclosure pertaining to explanation for any deviation or variation in connection with certain terms of public issue, right issue, preferential issue, etc. is not applicable to the Company.

There were no revisions of the financial statements and the Board's Report during the Financial Year ended on March 31,2026.

The Company has complied with the applicable provisions of The Maternity Benefit Act, 1961. i n terms of Section 134(3)(l) of the Act, apart from what is mentioned in this report, there are no material changes and commitments affecting the financial position of the Company between the end of the financial year to which the financial statements relate and the date of this report.

27. ACKNOWLEDGEMENT:

Your Directors would like to express their appreciation for the assistance and co-operation received from the Company's customers, vendors, bankers, auditors, investors and Government bodies during the year under review. Your Directors place on record their appreciation of the contributions made by employees at all levels. Your Company's consistent growth was made possible by their hard work, solidarity, cooperation and support.