Your Directors have immense pleasure in presenting the 18^th Annual Report on the business and operations of
the Company together with the Audited Financial Statements for the financial year ended March 31, 2026.

1. STATE OF COMPANY'S AFFAIRS

During the financial year ended March 31 2026, your company has recorded a total revenue of Rs. 59,524.52
lakhs against Rs. 44,468.57 lakhs in the previous year, representing an increase of 33.85%. During the year,
the company has incurred Profit after Tax of Rs. 1,676.41 lakhs as compared to profit of Rs. 1,381.71 lakhs in
the previous year representing an increase of 21.36%. A detailed analysis on the Company's performance is
included in the "Management's Discussion and Analysis" Report, which forms part of this Report.

2. FINANCIAL PERFORMANCE

Financial performance of the Company for Financial Year 2025-26 is summarized below:

The company has disclosed its results on quarterly basis of which results are subjected to limited review and
publishes audited financial results on an annual basis. The Financial Statements as stated above are also
available on the Company's website bhatiamobile .com /financial-report/

3. ROAD AHEAD

Our vision of becoming one of the top retail mobile chains and moving towards sustainable growth. Our
priorities are as follows:

• Focus on increasing outlets with multiple products

• Maintaining Price Competitiveness

• Technology enabled inventory management system

• Cross promotion through intelligent marketing

• Moving up the value chain Expanding the product line under own brand

4. DIVIDEND

The Board is pleased to recommend a dividend of 1% i.e. Re. 0.01 per equity share for the financial year 2025¬
26. The dividend if approved by the members will be paid to the members within time limit defined in the
Companies Act, 2013.

5. UNCLAIMED DIVIDEND

As on 31 March 2026 the Company's unclaimed dividend balance was Rs. 5,03,716/-.

6. TRANSFER TO RESERVES

During the year under review, no amount was transferred to any Reserve.

7. SHARE CAPITAL

The Paid-up Share Capital as on March 31, 2026 was Rs. 1406.52 lakhs.

During the previous year on September 11, 2024, the Company had issued and allotted 1,55,00,000
Convertible Warrants on preferential basis to persons belonging to promoter group and identified non¬
promoter category at an issue price of Rs. 23.75/- per warrant in accordance with the applicable provisions
of the Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Pursuant to the allotment, an amount equivalent to 25% of the warrant issue price i.e. Rs. 5.9375/- per
warrant was received upfront by the Company.

During the year under review, upon receipt of the balance 75% of the warrant issue price from the respective
warrant holders, the Company converted the aforesaid warrants into fully paid-up equity shares and allotted
50,00,000 Equity Shares on September 30, 2025 and 1,05,00,000 Equity Shares on March 09, 2026.
Consequently, all the 1,55,00,000 Convertible Warrants stood converted into 1,55,00,000 fully paid-up Equity
Shares of the Company and the said Equity Shares rank pari-passu in all respects with the existing Equity
Shares of the Company.

Apart from this the Company has not issued any shares with different rights, sweat equity shares or
employee stock options. As on March 31, 2026, 100% of the total paid-up capital of the Company stands in
the dematerialized form.

8. SUBSIDIARIES AND ASSOCIATES

As on March 31, 2026, the Company did not have any Subsidiary/ Associate Company.

9. MATERIAL CHANGES

There have been no material changes and commitments, which affect the financial position of the company
which have occurred between the end of the financial year to which the financial statements relate and the
date of this Report.

10. CHANGE IN NATURE OF BUSINESS, IF ANY

During the Financial Year, there has been no change in the business of the company or in the nature of
business carried by the company during the financial year under review.

11. STATUTORY INFORMATION

The Company is engaged into the retail distribution business of mobile handsets, tablets, data-cards,
Television, mobile accessories, mobile related products. Apart from this business, the Company is not
engaged in any other business/activities.

12. DEPOSITS

During the year, Company has not accepted any deposits from public within the meaning of the Section 73
of the Companies Act, 2013.

13. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S
OPERATIONS IN FUTURE

There was no significant material order passed by the regulators or courts or tribunals impacting the going
concern status and company's operation in nature.

14. DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with Section 152(6) of the Companies Act, 2013 read with the Articles of Association of the
Company, Mr. Nikhil Harbanslal Bhatia (DIN: 02063706), Whole Time Director of the Company, retire by
rotation and is being eligible has offered himself for re-appointment at the ensuing Annual General Meeting.
Company's policy on directors' appointment and remuneration is available on the website of the company
at bhatiamobile.com/policies/

Based on the confirmations received from Directors, none of the Directors are disqualified from appointment
under Section 164 of the Companies Act, 2013.

The List of board of Directors and Key Managerial Personnel (KMP) for the F.Y. 2025-26 is as follow:

*W.e.f July 31, 2025 Mr. Kaushik Haribhai Vegad ceased to be the Company Secretary upon his resignation.
Subsequently, Ms. Chintikaben Shah was appointed as the Company Secretary of the Company w.e.f.
September 18, 2025.

15. EXTRACT OF ANNUAL RETURN

As per amended section 92(3) of Companies Act, 2013 attachment of extract of annual return to Directors
Report is discontinued. The Annual Return for FY 2025-26 is uploaded on the website of the Company and
the same is available at bhatiamobile.com/annual-report/

16. CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

Your Board endeavors that all contracts/arrangements/transactions entered by the Company during the
financial year with related parties are in the ordinary course of business and on an arm's length basis only.

During the year under review the Company had not entered into transaction with related parties which
could be considered material in accordance with the policy of the Company on materiality of related party
transactions. The Policy on Related Party Transactions is uploaded on the website of the company. The web
link is bhatiamobile.com/policies/

Further, all related party transactions entered into by the Company were in the ordinary course of business
and were on an arm's length basis, hence, disclosure in Form No. AOC-2 is not applicable to the company.
The related party transactions entered into by the company are disclosed in the note 30 in the financial
statements forming part of the Annual Report.

17. NUMBER OF MEETING HELD DURING THE YEAR:

The Details of all meeting of Board of Directors and Committee meeting had taken place during the year and
their detailed composition along with their attendance forms the part of Corporate Governance Report as
given in Annexure I. The composition of the Board and its committee is also available on the website of the
company at /bhatiamobile .com/management /.

The following Meetings of the Board of Directors were held during the Financial Year 2025-26:

18. COMPOSITION OF BOARD AND ITS COMMITTEE

The detail of the composition of the Board and its committees thereof and detail of the changes in their
composition, if any, is given in Annexure I in the Corporate Governance Report.

19. LOANS, GUARANTEES AND INVESTMENT

The particulars of loans, guarantees and investments as per Section 186 of the Act by the Company have
been disclosed in the financial statements.

20. DECLARATION BY INDEPENDENT DIRECTORS

Company has received declaration from all the independent directors duly signed by them stating that they
meet the criteria of independence as provided in section 149(6) of the Companies Act, 2013. There has been
no change in the circumstances affecting their status as Independent Directors of the Company so as to
qualify themselves to be appointed as Independent Directors under the provisions of the Companies Act,
2013 and the relevant regulations.

All the independent directors have cleared "Online Self-Assessment Test" examination with the Indian
Institute of Corporate Affairs at Manesar.

21. SEPARATE MEETING OF INDEPENDENT DIRECTORS

In terms of requirement of Schedule IV of the Companies Act, 2013, the Independent Directors of the
company have complied with the code of Independent Director. Independent Directors met separately on
February 13, 2026 and March 28, 2026 to inter alia review the performance of Non-Independent Directors
(Including the Chairman), the entire Board and the quality, quantity and timeliness of the flow of the
information between the Management and the Board.

22. WHISTLE BLOWER POLICY / VIGIL MECHANISM:

The Company has adopted a Whistle Blower Policy to provide a formal mechanism to the Directors and
employees to report their concerns about unethical behaviour, actual or suspected fraud or violation of the
Company's Code of Conduct or Ethics Policy. The Policy provides for adequate safeguards against
victimization of employees who avail of the mechanism and also provides for direct access to the Chairman
of the Audit Committee. It is affirmed that no personnel of the Company have been denied access to the
Audit Committee. The Whistle Blower Policy has been posted on the website of the Company at
bhatiamobile.com/policies/

23. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013, your directors hereby confirm:

A. That in preparation of the annual accounts, the applicable accounting standards have been followed along
with proper explanation relating to material departments;

B. That 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 if the Company at the end of the financial year and of the profit and loss of the Company for that
period;

C. That the directors had 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 for preventing
and detecting fraud and other irregularities;

D. That the directors had prepared the annual accounts on a going concern basis; and

E. The directors had laid down internal financial controls to be followed by the company and that such
internal financial controls are adequate and were operating effectively;

F. The directors had devised proper systems to ensure compliance with the provisions of all applicable laws
and that such systems were adequate and operating effectively.

24. ANNUAL EVALUATION

During the year, the Board has carried out the annual evaluation of its own performance as well as the
evaluation of the working of its Committees and individual Directors, including Chairman of the Board. This
exercise was carried out through a structured questionnaire prepared separately for Board, Committee and
individual Directors.

The performance of the board was evaluated by the board after seeking inputs from all the directors on the
basis of the criteria such as the board composition and structure, effectiveness of board processes,
information and functioning, etc. The performance of the committees was evaluated by the board after
seeking inputs from the committee members on the basis of the criteria such as the composition of
committees, effectiveness of committee meetings, etc.

The board and the nomination and remuneration committee reviewed the performance of the individual
directors on the basis of the criteria such as the contribution of the individual director to the board and
committee meetings like decision making, participation in meeting, overall performance, etc. In addition, the
chairman was also evaluated on the key aspects of his role.

The Board acknowledged certain key improvement areas emerging through this exercise and action plans to
address these are in progress. The performance evaluation of the Non Independent Directors, performance

of Board as a whole including Chairman was carried out by the Independent Directors at a separate meeting
of the Independent Directors on February 13, 2026 and March 28, 2026.

Performance evaluation of independent directors was done by the entire board, excluding the independent
director being evaluated.

25. INTERNAL FINANCIAL CONTROL SYSTEM

The Company has a well-placed, proper and adequate internal financial control system which ensures that
all the assets are safeguarded and protected and that the transactions are authorized recorded and reported
correctly. The internal audit covers a wide variety of operational matters and ensures compliance with
specific standard with regards to availability and suitability of policies and procedures. During the year, no
reportable material weakness in the design or operation were observed.

26. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL
STATEMENTS

The Companies Act, 2013 re-emphasizes the need for an effective internal financial control system in the
company. Rule 8(5) (viii) of Companies (Accounts) Rules, 2014 requires the information regarding adequacy
of internal financial controls with reference to the financial statements to be disclosed in the board's report.
The detailed report forms part of Independent Auditors Report.

27. CORPORATE GOVERNANCE

Your Company has incorporated the appropriate standards for corporate governance. Pursuant to
Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company
is filing Corporate Governance Report to stock exchange quarterly. However, as per Regulation 34(3) read
with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 company is
giving report on corporate governance report in annual report of the company. Corporate Governance
Report is as per Annexure - I. The requisite certificate from the Auditors of the Company confirming
compliance with the conditions of Corporate Governance is attached in the report on Corporate Governance.

28. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING

The particulars required to be included in terms of Section 134(3)(m) of the Companies Act, 2013 with regard
to Conservation of energy, Technology absorption, Foreign exchange earnings and outgo are given below:

A. CONSERVATION OF ENERGY

i. The steps taken or impact on conservation of energy: Nil

ii. The steps taken by the Company for utilizing alternate sources of energy: NA

iii. The capital investment on energy conservation equipment: NA

B. TECHNOLOGY ABSORPTION

i. The efforts made towards technology absorption: NA

ii. The benefits derived like product improvement, cost reduction, product development or import
substitution: NA

iii. In case of imported technology (imported during last three years reckoned from the beginning of the
financial year): NA

iv. The expenditure incurred on research & development during the year: NA

C. FOREIGN EXCHANGE EARNING AND OUTGO

The foreign exchange earnings and expenditure of your Company: Nil

29. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Pursuant to the provisions of section 135 of the Companies Act, 2013 read with Companies (Corporate Social
Responsibility) Rules 2014; the Board has undertaken the CSR activities as per Rule 4 of Companies
(Corporate Social Responsibility Policy) Rules, 2014. The details of CSR activities for the financial year 2025¬
26 forms part of this Board report in Annexure - II

30. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As per Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements), Regulation 2015, the
Management Discussion and Analysis Report is given in Annexure - III.

31. STATUTORY AUDITORS

M/s. R P R & Co., Chartered Accountants (Firm Registration No. 131964W), Statutory Auditors of the
Company, hold office till the conclusion of the ensuing 18th Annual General Meeting. As their term of
appointment is completing at the ensuing 18th Annual General Meeting, they shall retire as Statutory
Auditors of the Company.

Based on the recommendation of the Audit Committee and the Board of Directors, the Members are
requested to consider the appointment of M/s. R. Kejriwal & Co., Chartered Accountants (Firm Registration
No. 133558W), as Statutory Auditors of the Company for a term of five consecutive years commencing from
the conclusion of the 18th Annual General Meeting till the conclusion of the 23rd Annual General Meeting
of the Company, at such remuneration as may be fixed by the Board of Directors from time to time and
mutually agreed with the Statutory Auditors.

32. INTERNAL AUDITOR

Your board has appointed Mr. Abhishek Mittal, Chartered Accountant, as an internal auditor of the company
for the financial year commencing from 1st April, 2025 to 31st March, 2026. The Internal Auditor reports
their findings on the internal Audit of the Company to the Audit Committee on a quarterly basis. The scope
of Internal audit is approved by the Audit Committee.

The Company has reappointed Mr. Abhishek Mittal, Chartered Accountant as an internal auditor of the
company for a period of five years commencing from April 01, 2026 till March 31, 2031 in the Board Meeting
held on May 25, 2026 after obtaining his willingness and eligibility letter for appointment as Internal Auditor
of the Company. Internal Auditors are appointed by the Board of Directors of the Company, based on the
recommendation of the Audit Committee.

33. SECRETERIAL AUDITOR

Your Board had appointed Mr. Bhaveshkumar Arjunkumar Rawal, Practicing Company Secretary (FCS:
8812, COP: 10257), and a Peer Reviewed Company Secretary, as the Secretarial Auditor of the Company for
a period of five consecutive years commencing from April 01, 2025 till March 31, 2030 in accordance with
Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended.

The secretarial report for the financial year 2025-2026 is attached as Annexure-IV. The Secretarial Auditor's
observation(s) in secretarial audit report and directors' explanation thereto -

• The Superintendent, CGST & Central Excise, Range-I, Division-I, Surat Commissionerate, passed an order
against the Company raising a tax demand of Rs. 5,71,472. The Company filed an appeal against the said
order on March 24, 2025. However, the said litigation was not disclosed in the Integrated Governance
Report filed for the quarter ended March 2025.

The Company submits that the said litigation was not material as per its materiality policy and hence was
not disclosed initially. However, in the interest of enhanced transparency and good governance, the same
was disclosed in the subsequent quarter. The Company has taken steps to ensure consistency in disclosure
practices going forward.

• The Company had allotted 50,00,000 equity shares on March 09,2026 to persons belonging to the promoter
group, resulting in a transaction value exceeding Rs. 10,00,000 during the quarter. The initial disclosure
filed on March 11, 2026 inadvertently did not include the premium component in the transaction value.
Subsequently, the disclosure was revised to correctly reflect the total transaction value, including the
applicable premium.

The Company submits that the omission of the premium component in the initial disclosure was
inadvertent and occurred due to an oversight. Upon identification, the disclosure was promptly revised
with correct transaction details.

34. COMMENTS ON AUDITOR'S REPORT

The notes referred to in the Auditor Report are self-explanatory and they do not call for any further
explanation as required under section 134 of the Companies Act, 2013.

35. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

There was no employee drawing remuneration in excess of limits prescribed under section 197(12) of the
Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014. The Disclosure pertaining to remuneration as required under section
197(12) of the Companies Act, 2013 read with Rule of the Companies (Appointment and Remuneration of
Managerial Personnel) Amendment Rules, 2016 are as per Annexure - V.

The detailed remuneration policy of the Company is available on the below link:
bhatiamobile.com/policies/

36. RISK MANAGEMENT

Risks are events, situations or circumstances which may lead to negative consequences on the Company's
business. Risk Management is a structured approach to manage uncertainty. An enterprise-wide approach
to Risk Management is being adopted by the Company and key risks will now be managed within a unitary
framework. As a formal roll-out, all business divisions and corporate functions will embrace Risk
Management Structure, and make use of these in their decision making. Key business risks and their
mitigation are considered in the annual/strategic business plans and in periodic management reviews. The
risk management process over the period of time will become embedded into the Company's business
system and processes, such that our responses to risk remain current and dynamic. The detailed Statement
on Risk Management has been attached in Annexure - VI.

37. CEO/ CFO CERTIFICATION

In terms of Regulation 17(8) of the Listing Regulations, the CFO has certified to the Board of Directors of the
Company with regard to the financial statements and other matters specified in the said regulation for the
financial year 2025-26. The certificate received from CFO is attached herewith as per Annexure - VII.

38. CODE OF CONDUCT

Board of Directors has formulated and adopted Code of Conduct for Board of Directors and Senior
Management Personnel from January 19, 2018. Later, it was amended on March 27, 2025. During the year,
Board of Directors and Senior Management Personnel has complied with general duties, rules, acts and
regulations. In this regard certificate from Managing Directors as required under Schedule V of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 has been received by the Board and the same
is attached herewith as per Annexure - VIII.

Code of Conduct form Board of Directors and Senior Management Personnel is available on
bhatiamobile.com/policies/

39. COMPLIANCE CERTIFICATE FROM THE AUDITORS REGARDING COMPLIANCE OF
CONDITIONS OF CORPORATE GOVERNANCE

Corporate Governance is a set of process, practice and system which ensure that the Company is managed
in a best interest of stakeholders. The key fundamental principles of corporate governance are transparency
and accountability. At Bhatia, Company's core business objective is to achieve growth with transparency,
accountability and with independency. Company has adopted various corporate governance standard and
doing business in ethical way by which Company has enhance stakeholders' trust, shareholders' wealth
creation by improving shares valuation, market capitalization, etc.

A certificate received from M/s R P R & Co., Statutory Auditors of the Company regarding compliance of
the conditions of Corporate Governance, as required under Schedule V of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 is attached herewith as per Annexure - IX.

40. CERTIFICATION FROM COMPANY SECRETARY IN PRACTICE

Mr. Bhaveshkumar Arjunkumar Rawal, Practicing Company Secretary has issued a certificate required
under the listing regulations, confirming that none of the Directors on the Board of the company has been
debarred or disqualified from being appointed or continuing as director of the company by SEBI/Ministry
of Corporate Affairs or any such statutory authority. The certificate is enclosed as Annexure X.

41. SEXUAL HARASSMENT OF WOMEN

Our company goal has always been to create an open and safe workplace for every employee to feel
empowered, irrespective of gender, sexual preferences, and other factors, and contribute to the best of their
abilities.

The Internal Committee (IC) has been constituted as per the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013, and the committee includes external members from NGOs
or with relevant experience. Half of the total members of the IC are women. The role of the IC is not restricted
to mere redressal of complaints but also encompasses prevention and prohibition of sexual harassment.

The Company did not receive any complaints on sexual harassment during the year 2025-26 and hence, no
complaints remain pending as of March 31, 2026.

42. APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND
BANKRUPTCY CODE, 2016

There are no proceedings initiated/ pending against your company under the Insolvency and Bankruptcy
Code, 2016 and there is no instance of one-time settlement with any Bank or Financial Institution.

43. 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 DURING THE
FINANCIAL YEAR:

It is not applicable to the company during the financial year under review.

44. SECRETARIAL STANDARDS ISSUED BY THE INSTITUTE OF COMPANY SECRETARIES OF INDIA
(ICSI)

The Company complies with all applicable mandatory Secretarial Standards issued by the Institute of
Company Secretaries of India (ICSI).

45. FRAUD REPORTING

During the year under review, no fraud has been reported by Auditors under Section 143(12) of the
Companies Act, 2013.

46. MAINTENANCE OF COST RECORDS

The company is not required to maintain Cost Records as specified by Central Government under section
148(1) of the Companies Act, 2013, and accordingly such accounts and records are not made and maintained.

47. PREVENTION OF INSIDER TRADING

The Company has adopted a Code of Internal Procedures and Conduct for Regulating, Monitoring and
Reporting of Trading by Insiders and Code of Practices and Procedures for Fair Disclosure of Unpublished
Price Sensitive with a view to regulate trading in securities by the designated persons of the Company and
their immediate relatives.

The Code requires pre-clearance for dealing in the Company's shares and prohibits the purchase or sale of
Company shares by the aforesaid persons while in possession of unpublished price sensitive information in
relation to the Company and during the period when the Trading Window is closed. The Board is responsible
for implementation of the Code.

The Company has a Prohibition of Insider Trading Policy and the same has been posted on the website of
the Company at bhatiamobile.com/policies/

48. RESEARCH & DEVELOPMENT

The Company believes that technological obsolescence is a reality. Only progressive research and
development will help us to measure up to future challenges and opportunities.

We invest in and encourage continuous innovation. During the year under review, expenditure on research
and development is not significant in relation to the nature size of operations of Company.

49. INSURANCE

All the properties and the insurable interest of the company including building and stocks wherever
necessary and to the extent required have been adequately insured. The company keeps reviewing the
insurance amount every year as per requirement.

50. APPRECIATION

Your Directors place on record their deep appreciation to employees at all levels for their hard work,
dedication and commitment and express their sincere thanks and appreciation to all the employees for their
continued contribution, support and co-operation to the operations and performance of the company.

51. ACKNOWLEDGEMENT

Your Directors would like to express their sincere appreciation of the co-operation and assistance received
from shareholders, bankers, regulatory bodies and other business constituents during the year under review.

Your Directors also wish to place on record their deep sense of appreciation for the commitment displayed
by all executives, officers and staff, resulting in successful performance of the Company during the year.

Date: June 27, 2026 By order of the Board of Directors

Place: Surat For Bhatia Communications & Retail (India) Limited

Sd/- Sd/-

Sanjeev Harbanslal Bhatia Nikhil Harbanslal Bhatia
Managing Director Whole Time Director

DIN: 02063671 DIN: 02063706