The Board of Directors are pleased to present Thirty Eighth Annual Report along with the audited financial statements for
the financial year ended March 31, 2026.

FINANCIAL RESULTS

The financial performance of the Company on standalone basis for the year ended March 31, 2026 is summarized below:

(' in lacs except per share data)

Financial Review and Highlights

The financial performance of the Company during FY
2025-26 reflects sustained growth in business operations,
improved operational efficiencies, and enhanced profitability.
The comparative financial information for FY 2024-25 has
been restated pursuant to the acquisition of the L5 Electric
Three-Wheeler Undertaking of Atul Greentech Private
Limited and, accordingly, is not directly comparable with the
figures originally reported for that period.

Strong Growth in Vehicle Sales

The Company recorded robust growth in vehicle sales during
FY 2025-26, driven by sustained demand across domestic
and export markets, expansion of distribution networks, and
continued focus on customer-centric product offerings. The
increase in sales volumes contributed significantly to the
overall growth in revenue and profitability during the year.

Significant Rise in Revenue from Operations

Revenue from Operations increased by 15.22% to '78,574
lakhs during FY 2025-26 as compared to '68,196 lakhs
in FY 2024-25. Total Income increased by 15.50% to
'79,342 lakhs from '68,695 lakhs in the previous year.
The growth was primarily driven by higher sales volumes,
improved market penetration, and continued demand for
the Company’s products across key markets.

Impressive Performance in Export Segment

The Company’s export business continued to perform
strongly during the year. Export volumes increased from
3,236 units in FY 2024-25 to 5,517 units in FY 2025¬
26, registering a growth of 70.5%. Export revenue also
increased from '5,227 lakhs in the previous year to '8,730
lakhs in FY 2025-26, reflecting a growth of 67.02%. The
growth was driven by increased demand for the Company’s

products in international markets and continued focus on
expanding its export footprint.

Improved Operating Profitability (EBITDA)

The Company achieved a significant improvement in
operating profitability during FY 2025-26. Earnings Before
Interest, Tax, Depreciation and Amortization (EBITDA)
increased by 42.91% to '8,925 lakhs from '6,245
lakhs in FY 2024-25. The EBITDA margin improved to
11.36% from 9.16% in the previous year, reflecting better
operational efficiencies, effective cost management, and an
improved product mix.

Sharp Increase in Profit

Profit Before Tax (PBT) increased by 53.68% to '7,171
lakhs during FY 2025-26 from '4,666 lakhs in FY 2024¬
25. The substantial growth in PBT was attributable to
higher operating profits, stable finance costs, and improved
business performance across operating segments.

Profit After Tax (PAT) registered a robust growth of 54.38%
and stood at '5,396 lakhs during FY 2025-26 as compared
to '3,479 lakhs in FY 2024-25. Consequently, Total
Comprehensive Income increased to '5,396 lakhs from
'3,436 lakhs in the previous year. Earnings per Share (EPS)
improved significantly to '19.35 per share from '12.54 per
share, reflecting enhanced value creation for shareholders.

The highlights of consolidated results with performance of
associate and subsidiary companies are described in this
report separately.

DIVIDEND

In line with the Company’s Dividend Distribution Policy
and considering the strong financial performance during
the year, the Board of Directors is pleased to recommend
a dividend of ' 3.00 (Rupees Three only) per equity share
of face value ' 5.00 each for the financial year ended March
31, 2026, subject to the approval of the shareholders at the
ensuing Annual General Meeting.

The dividend pay-out is in accordance with the Company’s
policy of balancing shareholder returns with the need to
retain adequate resources for future growth, expansion, and
business opportunities. Upon approval by the shareholders,
the dividend will be paid within the prescribed timelines
under the applicable provisions of the Companies Act, 2013
and other applicable laws.

CAPITAL STRUCTURE

As on March 31, 2026, the company’s authorised share
capital was ' 15,00,00,000/- (Rupees Fifteen Crores Only)
divided into 3,00,00,000 (Three Crore only) equity shares of
' 5/- (Rupees Five only) each.

The Company’s paid up capital is ' 13,87,56,400/- (Rupees
Thirteen Crores Eighty Seven Lakh Fifty Six Thousand Four
Hundred Only) divided into 2,77,51,280 (Two Crore Seventy

Seven Lakh Fifty One Thousand Two Hundred Eighty only)
equity shares of ' 5/- (Rupees Five only) each.

There is no change in share capital of the Company
during the year.

CONSOLIDATED FINANCIAL STATEMENTS

As per Regulation 33 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (hereinafter
referred to as “Listing Regulations”) and applicable
provisions of the Companies Act, 2013 read with the rules
issued thereunder, the Consolidated Financial Statements
of the Company for the financial year 2025-26 have
been prepared in compliance with applicable Accounting
Standards and on the basis of audited financial statements
of the Company and its subsidiary companies, as approved
by the respective Board of Directors.

In accordance with Section 136 of the Act, the financial
statements, including consolidated financial statements,
auditor’s report and every other document required by law
to be annexed or attached to the financial statements are
available for inspection at Registered Office of the Company
during business hours on all days except Saturdays, Sundays
and public holidays upto the date of the AGM. Any member
desirous of obtaining a copy of the said financial statements
may write to the Company Secretary at the Registered
Office of the Company. The financial statements including
consolidated financial statements of subsidiaries and all
other documents required to be attached to this report have
been uploaded on the website of the Company at https://
atulauto.co.in/subsidiaries-reports.aspx

PERFORMANCE OF SUBSIDIARIES, ASSOCIATE
COMPANIES AND JOINT VENTURES

Pursuant to provisions of Section 129(3) of the Act read
with Rule 5 of the Companies (Accounts) Rules, 2014,
a statement containing salient features of the financial
statements of the Company’s Subsidiaries, Associates and
Joint Ventures in Form AOC-1 is attached to the consolidated
financial statements.

During the year under review, there are no companies which
have become or ceased to be its Subsidiaries, joint ventures
or associate companies. The Company does not have any
Associate Company or Joint Venture. The performance
of subsidiary companies during financial year 2025¬
26 are as under:

Khushbu Auto Finance Limited

Khushbu Auto Finance Limited (KAFL), the wholly owned
retail finance subsidiary of the Company, continued to
support the retail financing of the Company’s three-wheelers
during the financial year, FY 2025-26, KAFL financed 5,931
vehicles with aggregate disbursements of ' 14,488 lakhs, as
compared to 6,569 vehicles with disbursements of ' 14,438
lakhs during FY 2024-25.

The Assets Under Management (AUM) of KAFL increased
to ' 260.39 crore as on March 31, 2026, reflecting steady
growth in its loan portfolio.

KAFL delivered a strong financial performance during the
year, with its Profit After Tax (PAT) increasing to ' 294 lakhs as
against ' 167 lakhs in the previous financial year, registering
a growth of approximately 76%, the Board believes that
KAFL will continue to play a vital role in strengthening the
retail-financing ecosystem for the Company’s products and
contribute to the sustainable growth of the business.

As per explanation provided under the Regulation 24 of
the SEBI (Listing Obligations and Disclosure Requirements)
regulations, 2015, the term “material subsidiary” shall mean
a subsidiary, whose income or net worth exceeds twenty
percent of the consolidated income or net worth respectively,
of the listed entity and its subsidiaries in the immediately
preceding accounting year. KAFL, wholly owned subsidiary
of the Company is to be considered as unlisted material
subsidiary for FY 2025-26 since net-worth of KAFL is more
than 20% of net-worth of the Company as on March 31,
2025, end of preceding financial year.

Shri Gurudeo Madhukar Yadwadkar, Independent Director
(DIN: 01432796) of the Company is the Independent
Director of KAFL in compliance with regulation 24 of the
SEBI Listing Regulations.

Atul Greentech Private Limited

Atul Greentech Private Limited (“AGPL”), was incorporated
in the year 2020 with an objective of business of
manufacturing electric three wheelers as well as electric
vehicle spares and parts including battery packs, battery
management system, battery charger etc. for the purpose
of L5 Category electric vehicles of Atul Auto Limited and
various other applications and electric motor vehicles.

At the end of financial year 2025-26, the investment in
share capital of AGPL was ' 30 Crore.

During FY 2025-26, Atul Greentech Private Limited
(“AGPL”), a subsidiary of the Company, recorded revenue
from operations, excluding revenue attributable to the L5
Electric Three Wheeler division, of '606 Lakhs as compared
to '196 Lakhs in the previous financial year. The L5 Electric
Three Wheeler division was acquired by Atul Auto Limited
with effect from January 14, 2026. Accordingly, pursuant
to the applicable requirements of Ind AS 103, the financial
information pertaining to the L5 Electric Three Wheeler
division has been restated and incorporated in the financial
statements of Atul Auto Limited. Consequently, the figures
for FY 2025-26 as well as the comparative figures for FY
2024-25 have been restated accordingly. AGPL reported a
post-tax profit of '469 Lakhs during FY 2025-26 as against
a post-tax loss of '1,593 Lakhs in the previous financial year.
The management is taking necessary measures to
improve operational performance, optimize costs and
capitalize on emerging opportunities in both domestic and
international markets.

Acquisition of L5 Electric Vehicle Business

During the financial year, the Company acquired the L5
Electric Three-Wheeler Vehicle Division of Atul Greentech
Private Limited (“AGPL”), a subsidiary of the Company, on a
slump sale basis for a consideration of '3,526 Lakhs. The
acquired business is engaged in the manufacturing and
sale of L5 category electric three-wheelers and related
components and has established a presence in both
domestic and international markets.

The acquisition is aligned with the Company’s long¬
term strategy of strengthening its position in the electric
mobility sector. The integration of the acquired business
with the Company’s existing operations is expected to
generate operational and commercial synergies through
optimization of manufacturing capabilities, dealership
network, after-sales service infrastructure and marketing
efforts. The transaction is also expected to enhance
operational efficiency, improve market reach and create a
seamless ecosystem for electric vehicle manufacturing
and distribution.

The acquisition was undertaken on an arm’s length basis
and the consideration was determined based on a valuation
report obtained from an independent IBBI-registered valuer.
With the transfer of the L5 Vehicle Division, AGPL will be
able to focus its resources on its battery manufacturing
business, thereby enabling both entities to pursue their
respective growth strategies more effectively.

Atul Green Automotive Private Limited

Atul Green Automotive Private Limited is wholly owned
subsidiary of the Company. It is in the business of sales of
spare parts of Atul vehicles to certain international markets.

The Investment in share capital of Atul Green Automotive
Private Limited was ' 45 Lacs as on March 31, 2026. It does
not have any operating revenue during the year.

Atulease Private Limited

The Company has also incorporated Atulease Private
Limited in June-2024 with 80% equity stake in it for the
purpose of operational leasing of three-wheeler and other
vehicles. Atulease is planning to commence its business
in near future.

The Investment in share capital of Atulease Private Limited
was ' 8 Lacs as on March 31, 2026. It does not have any
operating revenue during the year.

LOANS, GUARANTEES AND INVESTMENTS

Particulars of the loans given, investment made or
guarantee given pursuant to section 186 of the Companies
Act, 2013 and the purpose for which the loan or guarantee
or investment is proposed to be utilized by the recipient of
the loan or guarantee are provided in Note No. 45 to the
Standalone Financial Statements. These loan, guarantee
and investments are in compliance with section 186 of the
Companies Act, 2013.

LIQUIDITY

The Company has cash and cash equivalents of ' 1,950
Lacs as on March 31, 2026. Moreover, the Company has
unutilized sanctioned working capital facilities ' 3,000 Lacs
from IDBI Bank, ' 750 Lacs from ICICI Bank as on March 31,
2026 to meet the liquidity requirement.

DEBT-FREE STATUS

During the FY 2025-26, the Company has not availed any
fund-based credit facilities and hence, the Company is
enjoying debt-free status.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

During the financial year 2025-26, Shri Ramesh Chandra
Maheshwari (DIN: 09343538) has resigned as an
Independent Director of the Company with effect from
December 31, 2025 due to personal reason and other
professional commitment. Based on recommendation of
Nomination and Remuneration Committee, the Board of
Directors have appointed Dr. Kamalkishore Vora (DIN:
11166460) as an additional Independent Director of the
Company with effect from March 15, 2026 and shareholders
also approved regularization of his office as Independent
Director through postal ballot on April 18, 2026

Further during the financial year 2025-26, two Independent
Directors namely Shri Mohan Jit Walia and Shri Jaichander
Swaminathan ceased to be Directors with effect from
closing of business hours on August 08, 2025, and August
24, 2025 respectively upon completion of their second term
as Independent Directors

In accordance with the provisions of Section 152 of
the Companies Act, 2013 read with the Companies
(Appointment and Qualification of Directors) Rules, 2014
and the Articles of Association of the Company, Shri
Neeraj J. Chandra, Director, is liable to retire by rotation at
the ensuing Annual General Meeting (“AGM”) and, being
eligible, has offered himself for re-appointment.

The current term of Shri Mahendra J. Patel as Whole-time
Director and Chief Financial Officer will expire on March
31, 2027. Based on the recommendation of the Nomination
and Remuneration Committee, the Board of Directors,
at its meeting held on August 8, 2026, approved his re¬
appointment as Whole-time Director and Chief Financial
Officer for a further term of three years commencing from
April 01, 2027, subject to the approval of the shareholders
at the ensuing Annual General Meeting.

All the directors of the Company have confirmed that they are
not disqualified from being appointed as directors in terms
of Section 164 of the Companies Act, 2013. The Company
has received declarations from all the Independent Directors
confirming that they meet the criteria of independence as
prescribed under 149(6) of the Companies Act, 2013 read
with rules issued there under as well as Regulation 16(1)
(b) of the Listing Regulations (including any statutory

modification(s) or re- enactment(s) for the time being in
force). The Board is of the opinion that Independent Directors
of the Company hold highest standards of integrity and
possess requisite expertise and experience required to fulfil
their duties as I ndependent Directors. In terms of Regulation
25(8) of the Listing Regulations, Independent Directors have
confirmed that they are not aware of any circumstances or
situation which exists or may be reasonably anticipated that
could impair or impact their ability to discharge their duties.

The details of policy on Directors’ Appointment, its
remuneration including criteria for determining qualifications,
positive attributes, independence of a director and other
matters provided under subsection (3) of section 178; and
performance evaluation has been described in detail in the
report on Corporate Governance of the Company which
forms an integral part of the report.

There was no change in Directors and Key Managerial
Personnel during the year except mentioned above.

NUMBERS OF MEETINGS OF BOARD

The Board met seven times during financial year 2025¬
26, the details of which are provided in the Corporate
Governance Report. The gap between any two meetings
was within the period prescribed by the Act and the SEBI
Listing Regulations.

COMMITTEES OF THE BOARD

The Board of Directors has the following Committees as on
March 31, 2026:

a. Audit Committee

b. Nomination and Remuneration Committee

c. Stakeholders’ Relationship Committee

d. Risk Management Committee

The details of the Committees along with their composition,
number of meetings and attendance at the meetings are
provided in the Corporate Governance Report.

PERFORMANCE EVALUATION

The Nomination and Remuneration Policy of the Company
empowers the Nomination and Remuneration Committee
to formulate a process for evaluating the performance of
Individual Directors, Committees of the Board and the
Board as a whole.

In terms of the requirement of the Companies Act, 2013
and the SEBI Listing Regulations, an annual performance
evaluation is undertaken. The details of the evaluation
process, parameters etc. are set out in the Corporate
Governance Report which forms a part of this Annual Report.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 134 (5) of the
Companies Act, 2013, the Directors, based on the

information and representations received from the
Management of the Company, confirm that:

a) in the preparation of the annual accounts for the
financial year ended March 31, 2026, the applicable
accounting standards had been followed and there are
no material departures from the same;

b) they 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 March 31, 2026 and of the Profit of the
company for that period;

c) they have taken proper and sufficient care to the best
of their knowledge and ability 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;

d) they have prepared the annual accounts on a going
concern basis;

e) they have laid down internal financial controls to be
followed by the company and that such internal financial
controls are adequate and are operating effectively
during the financial year ended March 31, 2026; and

f) they had devised proper systems to ensure compliance
with the provisions of all applicable laws and such
systems were adequate and operating effectively
throughout the financial year ended March 31, 2026.

MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis forms an integral
part of this report and gives details of the overall industry
structure, economic developments, outlook, operational
performance and state of affairs of your Company.

CORPORATE GOVERNANCE

In compliance with Regulation 34 of the Listing Regulations,
a separate report on Corporate Governance along with
certificate from the Statutory Auditor on its compliance
forms an integral part of this report.

AUDITORS AND AUDITORS’ REPORT

Statutory Auditors

M/s. Maharishi & Co., Chartered Accountants (ICAI Firm
Registration No. 124872W) (“Existing Auditors”) were
appointed as statutory auditors of the Company at Thirty
Fourth AGM to hold office upto thirty ninth AGM of the
Company to audit the financial statement from FY 2022¬
23 to FY 2026-27. They have confirmed that they are not
disqualified from continuing as Auditors of the Company.
The peer review certificate of M/s. Maharishi & Co. is valid
upto May 31, 2028.

The Auditors’ Reports for the financial year ended March
31, 2026 on the financial statements (Standalone and
consolidated) of the Company is a part of Annual Report.
The auditors’ report does not contain any qualification,
reservation or adverse remark.

Secretarial Auditors

The Report of the Secretarial Auditor for Financial Year
2025-26 is annexed herewith as Annexure - A. The said
Secretarial Audit Report does not contain any qualification,
reservations, adverse remarks or disclaimer.

Further, in accordance with the provision of Regulation 24A
of the Listing Regulations, Secretarial Audit of its material
unlisted Indian subsidiary is required to be conducted.
The Secretarial Audit Report for the financial year ended
March 31, 2026 of Material Unlisted Subsidiary of the
Company namely Khushbu Auto Finance Limited is set out
at Annexure-B to this Report.

Pursuant to the provisions of Section 204 of the Act and the
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 and amended Regulation 24A of
the SEBI Listing Regulations, the Board had appointed
M/s. Hardik Hudda & Associates (ICSI Firm Registration No.
S2015GJ306400, CP No.14697), a peer reviewed Company
Secretaries in Practice as Secretarial Auditors of the
Company for a period of five years i.e., from April 1, 2025
to March 31, 2030 and shareholders have approved their
appointment in last Annual General Meeting.

The Company is not required to get its cost records audited
for the financial year 2025-26.

The Board has appointed M/s. BBM & Associates, Chartered
Accountants as Internal Auditors of the Company for the
Financial Year 2025-26 under Section 138 of the Companies
Act, 2013 as per the scope provided by the Board.

An Independent Internal Audit team carries out periodic
reviews of processes and functions, as per the annual
audit plan approved by the Audit Committee. These audits
are instrumental in evaluating the control mechanisms
and recommending improvements where needed. The
statutory auditors also review the adequacy of internal
financial controls as part of their audit procedures related
to financial reporting.

REPORTING OF FRAUDS BY AUDITORS

During the year under review, the Statutory Auditors
and Secretarial Auditors have not reported any instances
of frauds committed in the Company by its Officers or
Employees to the Audit Committee or Central Government
under section 143(12) of the Companies Act, 2013, details
of which needs to be mentioned in this Report.

INTERNAL FINANCIAL CONTROLS

The Board has adopted policies and procedures for ensuring
the orderly and efficient conduct of its business, including

adherence to the Company’s policies, the safeguarding of
its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial disclosures.

RELATED PARTY TRANSACTIONS

All transactions entered with related parties for the financial
year 2025-26 were on arm’s length basis and in the ordinary
course of business and that the provisions of Section 188(1)
of the Companies Act, 2013 and the Rules made thereunder,
disclosure in Form AOC-2 in terms of Section 134 of the
Companies Act, 2013 is set out in Annexure-C. Further,
there is no material transaction with any related party
during the year under review. The Company complies with
the policy on related party transactions while identification
and monitoring it.

All transactions with related parties were reviewed and
approved by the Audit Committee and are in accordance
with the Policy on Related Party Transactions formulated
by the Company. There are no materially significant related
party transactions that may have potential conflict with
interest of the Company at large.

All related party transactions are placed before the Audit
Committee as also to the Board for review and approval.
Omnibus approval of the Audit Committee was obtained
for transactions which are of repetitive nature. Transactions
entered into pursuant to omnibus approval are reviewed by
Audit Committee and a statement giving details of all related
party transactions are placed before the Audit Committee
and the Board for review on a quarterly basis. The Company
regularly makes necessary modifications to the said policy in
line with the amendments as introduced in the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015 from time to time.

The details of the related party transactions as per Indian
Accounting Standards (Ind AS) - 24 are set out in Note No.
41 to the Standalone Financial Statements of the Company.

ANNUAL RETURN

The Companies (Management and Administration)
Amendment Rules, 2020 has done away the requirement of
attaching extract of Annual Return in Form MGT-9 to Board’s
Report. The annual return in Form MGT-7 as required under
Section 92(3) of the Companies Act, 2013 read with Rule 12
of the Companies (Management and Administration) Rules,
2014 is available on the website of the Company athttps://
atulauto.co.in/subsidiaries-reports.aspx

EMPLOYEE AND RELATED DISCLOSURES

The remuneration paid to the Directors is in accordance
with the Nomination and Remuneration Policy formulated
in accordance with Section 178 of the Companies Act, 2013
and Regulation 19 of the Listing Regulations (including any
statutory modification(s) or re-enactment(s) for the time
being in force).

As per the provisions of Section 136(1) of the Act and Rule
5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Report and Financial
Statements are being sent to the Members of the Company
excluding the statement of particulars of employees under
Rule 5(2) of the said Rules. Any Member interested in
obtaining a copy of the said statement may write to the
Company Secretary at the Registered Office of the Company

Disclosures pertaining to remuneration and other details as
required under Section 197(12) of the Act, read with Rule
5(1) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 are annexed to this
report as Annexure-D.

CORPORATE SOCIAL RESPONSIBILITY

The Company has always laid emphasis on progress with
social commitment. We believe strongly in our core values of
empowerment and betterment of not only the employees but
also our communities. Following this principle, the Company
had laid the foundation of a comprehensive approach
towards promoting and facilitating various aspects of our
surrounding communities. The Report on CSR activities
which is reviewed by the Board at its meeting held on May
16, 2026 as required under the Companies (Corporate
Social Responsibility Policy) Rules, 2014 is annexed as
Annexure-E and forms an integral part of this Report.

With notification of the Companies (Amendment) Act,
2020, the roles and responsibilities of CSR Committee is
now be taken care by Board of Directors. The details of the
CSR initiatives as per the CSR Policy of the Company forms
part of the CSR Section in this Report.

During the Financial Years 2023-24 and 2024-25, the
Company was not required to incur any expenditure
towards Corporate Social Responsibility (“CSR”) under the
provisions of Section 135 of the Companies Act, 2013.

During the Financial Year 2022-23, the Company had incurred
CSR expenditure in excess of its statutory obligation by '22
lakhs. In accordance with the provisions of Section 135 of
the Companies Act, 2013 and the Companies (Corporate
Social Responsibility Policy) Rules, 2014, the said excess
amount was carried forward and has been utilised against
the Company’s CSR obligation for the Financial Year
2025-26. The excess expenditure was incurred towards
contributions to eligible trusts/associations engaged in
activities relating to eradicating hunger and poverty, which
fall within the activities specified under Schedule VII of the
Companies Act, 2013.

Further, during the Financial Year 2025-26, the Company
has incurred CSR expenditure for its CSR obligation of
'24.72 lakhs (including CSR Overheads). In accordance
with the applicable provisions of Section 135 of the
Companies Act, 2013 and the Companies (Corporate Social
Responsibility Policy) Rules, 2014, the excess amount (if
any) shall be eligible to be set off against the CSR obligation

of the succeeding financial years, subject to the conditions
prescribed under the applicable law. The amount has been
spent towards contributions to eligible trusts/associations
engaged in activities relating to eradicating hunger and
poverty, for education and promoting healthcare.

The Board has approved a policy for Corporate Social
Responsibility and same has been uploaded on the website
athttps://atulauto.co.in/policiescodes/

During the Financial Year 2026-27, the Company’s
Corporate Social Responsibility (CSR) obligation exceeded
'50 lakh. Accordingly, pursuant to the provisions of Section
135 of the Companies Act, 2013 read with the Companies
(Corporate Social Responsibility Policy) Rules, 2014, the
Board of Directors, at its meeting held on August 08, 2026,
constituted the Corporate Social Responsibility (CSR)
Committee to oversee and monitor the CSR activities of the
Company which comprises following Directors:

Neeraj J. Chandra, Chairman

Mahendra J. Patel, Member

Gurudeo Yadawadkar, Member

VIGIL MECHANISM/ WHISTLE BLOWER POLICY

The Company has adopted a Whistle Blower Policy, as part
of vigil mechanism to provide appropriate avenues to the
Directors and employees to bring to the attention of the
management any issue which is perceived to be in violation
of or in conflict with the Internal Rules/ Code of Conduct of
the Company. The details of the same have been described
in more depth in Corporate Governance Report.

The Company has established system for reporting,
investigation and suitable action in line with the
whistle blower policy. The whistle blower Policy is
also available on Company’s website at weblink:
https://atulauto.co.in/policiescodes/

CREDIT RATING

During FY 2025-26, CRISIL has reaffirmed its rating CRISIL
BBB / Stable for long term bank loan facilities and CRISIL
A2 for short term bank loan facilities of the Company.

CONSERVATION OF ENERGY, RESEARCH AND
DEVELOPMENT, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars of conservation of energy, research and
development, technology absorption and foreign exchange
earnings and outgo in terms of Section 134 of the Companies
Act, 2013 read with the Companies (Accounts) Rules, 2014
for the year ended March 31, 2026 are annexed to this
report as Annexure-F.

RISK MANAGEMENT

Risk management is embedded in your Company’s operating
framework. Your Company believes that managing risks
help in maximizing returns. The Company’s approach to
addressing business risks is comprehensive and includes
periodic review of such risks and a framework for mitigating
controls and reporting mechanism of such risks. The risk
management framework is reviewed periodically by the
Board of Directors.

The Company has Risk Management Committee with the
following Members as on March 31, 2026:

Mahendra J Patel Chairman

Neeraj J Chandra Member

Gurudeo Yadawadkar Member

Hiren V Patel Member

Some of the risks that the Company is exposed to are:
Financial Risk including Credit risk, liquidity risk, Interest
risk, Market risk, Commodity Price Risk, Regulatory Risk,
Human Resource Risk, Strategic Risk, Pandemic Risk etc.

SECRETARIAL STANDARDS OF ICSI

During the financial year under review, the Company has
complied with the applicable provisions of the Secretarial
Standard-1 and Secretarial Standard-2 issued by the
Institute of Company Secretaries of India and notified by
Ministry of Corporate Affairs.

INDIAN ACCOUNTING STANDARDS

The Company adopted Indian Accounting Standards (Ind
AS) from April 1, 2017. Accordingly, the financial statements
have been prepared in compliance with Ind AS as per the
Companies (Indian Accounting Standards) Rules, 2015 as
amended and notified under section 133 of the Act and other
relevant provisions of the Act. In the preparation of financial
statements, no treatment which is different from that
prescribed in an Accounting Standard has been followed.

INVESTOR EDUCATION AND
PROTECTION FUND (IEPF)

In accordance with applicable provisions of the Companies
Act, 2013 read with the Investor Education and Protection
Fund (Accounting, Audit, Transfer and Refund) Rules, 2016
(“IEPF Rules”), all unclaimed dividends are required to be
transferred by the Company to IEPF, after completion of
seven (7) years. Further, according to IEPF Rules, the shares
on which dividend has not been claimed by the shareholders
for seven (7) consecutive years or more shall be transferred
to the demat account of the IEPF Authority. The details
relating to amount of dividend transferred to IEPF is
provided in the General Shareholders Information section of
this Annual Report.

OTHER DISCLOSURES

Few statutory disclosures the Company is required to

do are as under:

• The Board of Director of the Company has not proposed
any amount for transfer to the reserve for the financial
year ended March 31, 2026.

• During the year under review, your Company has not
accepted any deposit within the meaning of Sections
73 and 74 of the Companies Act, 2013 read with
the Companies (Acceptance of Deposits) Rules,
2014 (including any statutory modification(s) or re¬
enactments) for the time being in force).

• The Company has not paid any commission to any
of its Directors and hence, provision of disclosure
of commission paid to any Director as mentioned in
Section 197(14) is not applicable.

• The Managing Director of the Company has not
received any remuneration or commission from any of
Company’s subsidiaries.

• There has been no instance of any revision in the
Board’s Report or the financial statement under Section
131(1) of the Act.

• During the year under review, there were no complaints/
cases filed/ pending/ disposed-off pursuant to
the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and
the Company has complied with the provisions relating
to the constitution of Internal Complaints Committee
and other provisions under the said Act.

• The Company has complied with the Maternity Benefit
Act, 1961 and all eligible women employees are
granted paid maternity leave as per the Act.

• No application made or any proceeding is pending
under the Insolvency and Bankruptcy Code, 2016
during the financial year ended March 31, 2026.

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

• There have been no material changes/ commitments,
affecting the financial position of the company which
have occurred between end of the financial year of the
company to which the financial statements relate and
the date of the report. There has been no changes in
nature of business of the Company.

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

• The Company does not have any scheme or provision
of money for the purchase of its own shares by
employees/ Directors or by trustees for the benefit of
employees/ Directors.

• The Dividend Distribution Policy is uploaded onhttps://
atulauto.co.in/policiescodes/

• The details of difference between amount of the
valuation done at the time of one time settlement and
the valuation done while taking loan from the Banks or
Financial Institutions along with the reasons thereof
- Not Applicable

APPRECIATION

Your Directors wish to convey their gratitude and place on
record their appreciation for all the employees at all levels
for their hard work, solidarity, cooperation and dedication
during the year.

Your Directors sincerely convey their appreciation to
dealers, shareholders, vendors, bankers, business
associates, regulatory and government authorities for their
continued support.

For and on behalf of the Board of
Atul Auto LimitedNeeraj J Chandra Mahendra J PatelManaging Director Whole-time Director & CFODIN:00065159 DIN:00057735

Place: Bhayla (Dist. Ahmedabad)

Date: August 08, 2026

1

Note: Previous year’s comparative figures have been restated pursuant to the acquisition of the L5 Electric Three-Wheeler
Undertaking and, therefore, are not strictly comparable with the figures as originally reported.