Your directors take immense pleasure in presenting the 15th Annual Report on the business and operations of the Company along with the audited financial statements for the financial year ending March 31, 2026. Standalone and Consolidated performance of the Company and its subsidiaries and associate have been referred to wherever required.
FINANCIAL PERFORMANCE:
The financial performance of the Company for the financial year ending March 31, 2026, is summarized below:
| |
Standalone
|
Consolidated
|
| |
FY 2025-26
|
FY 2024-25
|
FY 2025-26
|
FY 2024-25
|
|
Revenue from operations
|
7,398.72
|
11,120.60
|
7,433.44
|
10,836.71
|
|
Other income
|
429.04
|
675.65
|
451.33
|
800.26
|
|
Total Revenue
|
7,827.76
|
11,796.25
|
7,884.77
|
11,636.97
|
|
Total Expenses
|
7,328.51
|
11,248.57
|
7,790.98
|
11,033.24
|
|
Profit before tax
|
499.25
|
547.68
|
93.79
|
603.73
|
|
Tax expenses
|
(167.63)
|
(191.02)
|
(170.42)
|
(214.97)
|
|
Profit after tax
|
331.62
|
356.66
|
(77.11)
|
388.76
|
|
Total comprehensive income for the year, net of tax
|
331.61
|
355.48
|
1,124.47
|
474.35
|
Note: The standalone and consolidated financial statements of the Company for the financial year ended March 31,2026, have been prepared in accordance with the Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs and as amended from time to time.
STATE OF COMPANY'S AFFAIRS:
During the year under review, the Company operated in a dynamic and evolving defence and aerospace environment characterised by changing procurement cycles, extended project execution timelines, and evolving customer requirements. While the Company's revenue for the year witnessed a decline compared to the previous financial year, primarily due to the timing of project milestones, deferred order execution, and the nature of long-gestation defence programmes, the Company successfully demonstrated operational resilience by maintaining its profitability through disciplined financial management and enhanced operational efficiencies.
The management continued to focus on prudent cost optimisation, effective resource utilisation, and improved project execution, which enabled the Company to protect its operating margins despite lower topline performance. Continuous monitoring of overheads, optimisation of manufacturing processes, and efficient supply chain management contributed significantly towards sustaining the Company's bottom line. The Company's emphasis on value engineering, productivity enhancement, and strategic procurement initiatives further strengthened its financial stability during the year.
The Company remained committed to strengthening its position in the defence and aerospace sector by investing in product development, enhancing engineering capabilities, and pursuing opportunities across defence manufacturing, aerospace systems, and indigenous defence programmes. The management continued to engage with existing and prospective customers, participate in strategic defence initiatives, and explore new business opportunities aligned with the Government of India's emphasis on self-reliance in defence manufacturing and the Make in India and Atmanirbhar Bharat initiatives. These strategic efforts are expected to support long-term growth and improve the Company's order pipeline in the coming years.
There were no material changes affecting the financial position of the Company other than those disclosed elsewhere in this Report. The Directors remain confident that the Company's strong technical capabilities, experienced management team, sound financial discipline, and continued focus on operational excellence position it favourably to capitalise on emerging opportunities in the defence and aerospace sector. While the industry continues to face challenges arising from project execution cycles and evolving geopolitical and economic conditions, the Directors are optimistic about the Company's long-term
growth prospects and its ability to create sustainable value for all stakeholders.
STANDALONE FINANCIAL RESULTS:
The standalone revenue from operations decreased to ?7,398.72 Mn for FY 2025-26 as compared to m,120.60 Mn in FY 2024-25. EBITDA for FY 2025-26 stood at ?187.85 Mn compared to ?28.82 Mn achieved in FY 2024-25. The profit after tax stood at ?331.62 Mn for FY 2025-26 as compared to ?356.66 Mn in FY 2024-25.
CONSOLIDATED FINANCIAL RESULTS:
The consolidated revenue from operations is ?7,433.44 Mn for FY 2025-26 as compared to ?10,836.71 Mn in FY 2024¬ 25. EBITDA for FY 2025-26 stood at ?4.41Mn compared to ?46.12 Mn attained in FY 2024-25. The profit after tax stood at ?(77.11) Mn for FY 2025-26 as compared to ?388.76 Mn in FY 2024-25.
For detailed analysis of the performance, including industry overview, changes and outlook, please refer to the Management's Discussion and Analysis section of this Report.
DIVIDEND:
With a view to strengthening the financial position of the Company and conserving resources for future growth opportunities and operational requirements, the Board of Directors has not recommended any dividend for the financial year ending March 31, 2026. As per Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI Listing Regulations'), the Company has adopted a Dividend Distribution Policy which is available on the website of the Company at i.e.,https://dcxindia.com.
TRANSFER TO RESERVES:
During the financial year 2025-26, the Company has not transferred any amount to General Reserves. The entire surplus for the year has been retained in the Statement of Profit and Loss to support the Company's ongoing operations, strengthen its financial position, and meet future business requirements. The Board decision is aligned with the Company's strategy to maintain a robust liquidity position and growth initiatives from internal accruals, thereby enhancing long-term stakeholder value.
The Board continues to review the need for appropriation to reserves from time to time, keeping in view the Company's growth plans, capital requirements, and overall financial strategy.
EQUITY SHARE CAPITAL:
The Authorized Share Capital of the Company is ?25,00,00,000/- divided into 12,50,00,000 Equity Shares of face value of ?2/- each and the paid-up capital is ?22,27,72,854/- divided into 11,13,86,427 Equity Shares of face value ?2/-.
DISCLOSURES:
a. During the year under review, your Company has not revised the financial statements.
b. There has been no change in the nature of business of the Company as on the date of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report for the year under review, which forms part of this Report as Annexure - 1.
DETAILS OF SUBSIDIARY AND ASSOCIATE COMPANIES:
As of March 31, 2026, the Company has two wholly owned subsidiaries: M/s. Raneal Advanced Systems Private Limited, India, and M/s. Niart Systems Limited, Israel and one associate company, M/s. ELTX Systems Private Limited, India, pursuant to sub-section (3) of section 129 of the Companies Act, 2013. Further, both subsidiary entities are considered material subsidiaries in accordance with Regulation 16(1)(c) and 24(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In line with the provisions of Section 129(3) of the Companies Act, 2013 (Act), a statement containing the salient features of the financial statements of the Company's subsidiaries and associate in Form AOC-1 is attached to the financial statements of the Company as Annexure-2. This form highlights the financial performance of each subsidiary and associate company and their contribution to the Company's overall performance as required by Rule 5 and 8(1) of the Companies (Accounts) Rules, 2014.
Audited financial statements together with the related information and other reports of each of the subsidiary Companies is available on the website of the Company at: https://dcxindia.com.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS:
Details of loans, guarantees and investments covered under the provisions of Section 186 of the Companies Act, 2013 forms part of the notes to the Financial Statements provided in this Annual Report.
DEBENTURES:
During the year under review, the Company has not issued any Debentures. As on date, the Company does not have any outstanding Debentures.
DEPOSITORY SYSTEM:
The Company's equity shares are tradable only in electronic form. As on March 31, 2026, 100% of the Company's total paid up capital representing 11,13,86,427 equity shares are in dematerialized form.
PARTICULARS OF EMPLOYEES:
The information required under Section 197 (12) of the Act, read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, relating to percentage increase in remuneration, ratio of remuneration of each Director and Key Managerial
Personnel (KMP) to the median of employees' remuneration are provided in Annexure - 3 to this Board's Report.
The statement containing particulars in terms of 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 forms part of this Annual Report. Considering the first proviso to Section 136(1) of the Companies Act, 2013, the Annual Report, excluding the aforesaid information, is being sent to the Members of the Company and others entitled thereto. The said information is available for inspection at the Registered Office of the Company during business hours on working days of the Company up to the date of the ensuing Annual General Meeting. Any shareholder interested in obtaining a copy thereof, may write to the Secretarial Team of the Company in this regard.
BOARD OF DIRECTORS:
As of March 31,2026, the Board of the Company comprised 6 Directors out of which 3 Executive Directors and 3 Non¬ Executive Independent Directors, one of whom is 1 Women Independent Director. The composition of the Board of Directors as on March 31,2026, was in due compliance with the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
BOARD MEETINGS:
During the year under review, the Board of Directors met 09 (Nine) times on the following dates:
1. April 17, 2025 6. September 02, 2025
2. May 12, 2025 7. November 12, 2025
3. May 27, 2025 8. February 12, 2026
4. August 07, 2025 9. March 30, 2026
5. August 18, 2025
AUDITORS:I. STATUTORY AUDITORS:
M/s. NBS & Co. [ICAI FRN No. 110100W] Chartered Accountants were appointed as Statutory Auditors of the Company by the Shareholders at the 11th Annual General Meeting held on July 28, 2022, for a period of 5 years, who will act as Statutory Auditors of the Company till the conclusion of the 16th Annual General Meeting of the Company.
II. SECRETARIAL AUDITOR:
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed CS Pramod S, (ICSI Membership No: A36020 and COP 13335) Practicing Company Secretary, Bengaluru as the Secretarial Auditor of the Company, for a period of five years, commencing from the financial year 2025¬ 26 to financial year 2029-30 i.e. from the conclusion of the 14th Annual General Meeting until the conclusion of the 19th Annual General Meeting of the Company to be held in the year 2030.
III. COST AUDITOR:
The Company has duly maintained cost records in accordance with the provisions of Section 148(1) of the Companies Act, 2013 ("the Act"). However, the requirement for appointment of a Cost Auditor was not applicable to the Company for the financial year 2025-26, pursuant to the provisions of Section 148 of the Act read with the applicable provisions of the Companies (Cost Records and Audit) Rules, 2014, considering that, as at March 31, 2025, the Company generated revenue only from its unit located in a Special Economic Zone (SEZ).
During the FY 2025-26, the Company commenced generation of revenue from its Domestic Tariff Area (DTA) Unit. Consequently, the provisions relating to cost audit became applicable to the Company from the financial year 2026-27. Accordingly, based on the recommendation of the Audit Committee, the Board of Directors of the Company has approved the appointment of M Ashok Kumar, Cost Accountant (Firm Registration No.102240) as the Cost Auditor of the Company for the financial year ending March 31, 2027.
Pursuant to the provisions of Section 148(3) of the Act read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, as amended from time to time, the remuneration payable to the Cost Auditor, as approved by the Board of Directors on the recommendation of the Audit Committee, is required to be ratified by the Members at a general meeting. Accordingly, a resolution seeking ratification by the Members of the remuneration payable to M Ashok Kumar, Cost Auditor of the Company for the financial year 2026-27, has been included in the Notice convening the 15th Annual General Meeting of the Company.
IV. INTERNAL AUDITOR:
Mr. Rajagopal A and Co [ICAI FRN 027895S], Chartered Accountants, was appointed as Internal Auditors for conducting the internal audit of the Company for the financial year 2025-26, who conducted the internal audit periodically and submitted their reports to the Audit Committee and the Board.
Further, the Board has appointed Rajagopal A and Co [ICAI FRN 027895S], Chartered Accountants, as an Internal Auditors for the financial year 2026-27, based on the recommendation of the Audit Committee.
STATUTORY AUDITORS' REPORT:
The Auditors' Report on the Financial Statements (Standalone and Consolidated) of the Company for the year under review, "with an unmodified opinion", as given by the Statutory Auditors, is disclosed in the Financial Statements forming part of the Annual Report. The Auditors' Report is unmodified and there are no qualifications or adverse remarks in their Report. Also, no
frauds in terms of the provisions of Section 143(12) of the Companies Act, 2013 have been reported by the Statutory Auditors in their report for the year under review.
SECRETARIAL AUDIT REPORT:
The report of the Secretarial Audit in Form MR-3 for the financial year ended March 31, 2026, is enclosed as Annexure - 4 to this Report.
The Secretarial Audit report of Raneal Advanced Systems Private Limited, a Material Subsidiary is appended to and forms part of this Report as Annexure - 4A.
There are no qualifications, reservations, adverse remarks or disclaimers given by the Secretarial Auditor in the Report.
EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMERS MADE BY THE STATUTORY AUDITORS AND THE PRACTICING COMPANY SECRETARY IN THEIR REPORTS:
There are no qualifications, reservations or adverse remarks made by the Auditors (Statutory Auditors and Secretarial Auditors) in their report. Hence, no comments are offered by the Board of Directors.
INTERNAL CONTROL SYSTEMS AND THE ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
The Company has established and maintains adequate internal control systems and internal financial controls commensurate with the size, scale, and complexity of its operations. These controls are designed to provide reasonable assurance regarding the reliability of financial reporting, the preparation of financial statements in accordance with applicable accounting standards, and the safeguarding of assets.
The Company has implemented well-defined policies, procedures, and standard operating frameworks to ensure orderly and efficient conduct of its business, adherence to applicable laws and regulations, prevention and detection of frauds and errors, and accuracy and completeness of accounting records. The internal financial control systems are periodically reviewed and evaluated for their effectiveness, and necessary improvements are undertaken to strengthen the overall control environment.
EMPLOYEE STOCK OPTION PLANS (ESOPS):
The Company has not formed any Employees Stock Option during the year.
VIGIL MECHANISM/WHISTLE-BLOWER:
Pursuant to provisions of Section 177 of the Companies Act, 2013 read with Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has duly established Whistle Blower Policy as part of vigil mechanism for observing the conduct of Directors and Employees and report concerns about unethical behavior, actual or suspected fraud or violation of the Company's Code of Conduct to the Chairman of the Audit Committee. This mechanism also provides for adequate safeguards against victimization of Director(s)/Employee(s) who avail of the mechanism and
also provides for direct access to the Chairman of the Audit Committee.
The said policy is available on the website of the Company
i.e.,https://dcxindia.com.
During the year under review, the Company has not received any complaints under the said mechanism.
BUY BACK OF SHARES:
Your Company has not bought back any shares during the year.
RISK MANAGEMENT POLICY:
The Company has constituted a Risk Management Committee aligned with the requirements of the Companies Act, 2013 and Regulation 21 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, consisting of Executive Director and Non-Executive Independent Directors to identify and assess business risks and opportunities. The details of the Committee and its terms of reference are set out in the Corporate Governance Report forming part of this Report.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT:
There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year till the date of this report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE:
There were no significant or material orders passed by the regulators or courts or tribunals impacting on the going concern status and Company's operations in future.
THE DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL WHO WERE APPOINTED OR RESIGNED DURING THE YEAR:
Directors
During the year, the Board of the Company was duly constituted in line with the requirements under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. For more details, please refer to the relevant section of Corporate Governance forming part of this Report.
Further, during the year, the following changes occurred in the composition of the Board of Directors:
i. Mr. Diwakaraiah Neriga Jagannatheswar resigned as an Executive Director of the Company with effect from August 31, 2025.
ii. Mr. Gopinath Vedaprakash was appointed as an Additional Whole-time Director with effect from
September 01, 2025, and further, he regularized as Whole-time Director in the 14th (Fourteenth) Annual General Meeting of the Company held on September 26, 2025.
iii. Dr. Raghavendra Rao Hosakote Shamarao was re¬ appointed as Chairman and Managing Director of the Company for a second consecutive term of 5 (Five) years effective from June 28, 2026, to June 28, 2031.
Key Managerial Personnel (KMP)
During the year, Mr. Diwakaraiah Neriga Jagannatheswar resigned as Chief Financial Officer (CFO) of the Company with effect from August 31, 2025, and CA Tuppadamane Subramanya Bhat Prasanna Kumar appointed as Chief Financial Officer (CFO) of the Company with effect from September 02, 2025.
DECLARATION BY INDEPENDENT DIRECTORS:
All Independent Directors of the Company have given declaration to the Company under Section 149(7) of the Companies Act, 2013 (the Act) that, they meet the criteria of independence as provided in Sub-Section 6 of Section 149 of the Act and also under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations). All independent directors of your Company have also given declarations to the Company under Rule 6 of Companies (Appointment and Qualification of Directors) Rules 2014. In the opinion of the Board, they fulfil the conditions of independence as specified in the Act and Listing Regulations and are independent of management. The Independent Directors have affirmed compliance with the Code of Conduct.
In the opinion of the Board of Directors of the Company, Independent Directors on the Board of Company hold the highest standards of integrity and are highly qualified, recognized and respected individuals in their respective fields. The composition of Independent Directors is an optimum mix of expertise (including financial expertise), leadership and professionalism.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
During the financial year 2025-26, all transactions with related parties were entered into at arm's length basis and in the ordinary course of business.
The particulars of every contract or arrangement entered into by the Company with related parties referred to in sub¬ section (1) of Section 188 of the Companies Act, 2013 has been disclosed in Form No. AOC-2 as Annexure - 5.
HUMAN RESOURCES:
The Company recognizes its employees as a key driver of sustainable growth and continues to focus on nurturing a performance-oriented and inclusive work culture. It strives to create an engaging and enabling work environment that supports professional growth, innovation, and collaboration across all levels of the organization.
The Company has in place robust Human Resource policies and practices aimed at attracting, developing, and retaining talent while fostering a strong culture of learning and capability building. Continuous efforts are made to enhance employee skills, strengthen leadership pipeline, and align individual aspirations with organizational goals, thereby contributing to the overall growth and success of the Company.
Our dynamic Human Resource system has helped build a fair and performance-driven culture, where individual goals are aligned with the Company's growth objectives. A key focus has been our succession planning process, which identifies and develops potential future leaders through mentorship and exposure to different functions of the business.
Going forward, the Company remains committed to creating a work environment that values talent, encourages growth, and supports long-term sustainable success.
The employee strength of the Company, at the end of Financial Year i.e., March 31, 2026, was 141.
Further, your Board of Directors report that, Policy against Sexual Harassment at workplace is in line with the requirement of the provisions of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and that the employees have been advised to address their grievances under this Act for redressal. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.
The Company has zero tolerance for sexual harassment at workplace. Appropriate reporting mechanisms are in place for ensuring protection against Sexual Harassment and the right to work with dignity. The Company has complied with the provisions relating to the constitution of the Internal Complaints Committee as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Disclosure in relation to Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013:
|
Sl. No. Particulars
|
Number of Complaints
|
|
1 Number of complaints filed during the financial year
|
Nil
|
|
2 Number of complaints disposed of during the financial year
|
Nil
|
|
3 Number of complaints pending at the end of the financial year
|
Nil
|
During the year, the Company has complied with the provisions relating to the Maternity Benefit Act, 1961.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUT GO:
The particulars in respect of conservation of energy, technology absorption and foreign exchange earnings & outgo, as required under Section 134(3)(m) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 is appended as an Annexure - 6 to this report.
CORPORATE SOCIAL RESPONSIBILITY (CSR):
The Corporate Social Responsibility (CSR) Committee has been entrusted with the prime responsibility of recommending to the Board the CSR activities to be undertaken by the Company in terms of CSR Policy, the amount of expenditure to be incurred and monitoring the implementation of the framework of the CSR Policy.
The Annual report on CSR as per Rule 8(1) of Companies (Corporate Social Responsibility Policy) Rules, 2014 have been given in Annexure - 7 forming part of this Report.
The CSR Policy of the Company is available on the website of the Company athttps://dcxindia.com.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR):
A detailed Business Responsibility and Sustainability Report (BRSR) in terms of the provisions of Regulation 34 of the SEBI (Listing Obligation and Disclosure Requirements), 2015 is enclosed as Annexure - 8 form part of this Report.
CORPORATE GOVERNANCE:
The Company remains committed to upholding the highest standards of Corporate Governance and has established robust systems and processes to ensure transparency, accountability, integrity, and ethical conduct in all its operations. The governance framework of the Company is designed to protect and enhance stakeholder value through responsible and sustainable business practices.
The Board of Directors reaffirms its continued commitment to good corporate governance and ensures compliance with applicable laws, regulations, and guidelines. The Company continuously reviews and strengthens its governance practices in line with evolving regulatory requirements and industry best practices.
In terms of Regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on Corporate Governance including a certificate from CS Pramod S, (ICSI Membership No: A36020, COP 13335) confirming compliance is enclosed as Annexure - 9 to and forms an integral part of this Report.
BOARD EVALUATION:
Pursuant to the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual performance evaluation of its own functioning, its Committees, and individual Directors.
The evaluation process was conducted in a structured manner based on criteria such as the composition and effectiveness of the Board, quality of deliberations, strategic guidance, participation in meetings, and the effectiveness of Board processes and information flow. The performance of the Committees was assessed by the Board after considering inputs from Committee members, with reference to their composition, roles, and effectiveness in discharging their responsibilities.
In a separate meeting of the Independent Directors, the performance of the Non-Independent Directors, the Board as a whole, and the Chairperson were evaluated, taking into account the views of Executive and Non-Executive Directors. The Nomination and Remuneration Committee also reviewed the performance of individual Directors based on their contribution to Board and Committee proceedings, level of engagement, and overall effectiveness.
Performance evaluation of Independent Directors was done by the entire Board, excluding the Independent Director being evaluated.
FAMILIARISATION PROGRAMME FOR BOARD MEMBERS:
The Company continues to conduct familiarisation programmes for its Independent Directors, to enable them to gain a comprehensive understanding of the Company's business, operations, industry dynamics, and regulatory environment. These programmes also provide insights into their roles, rights, and responsibilities, in line with the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the year under review, the Independent Directors were periodically updated through presentations, meetings, and detailed notes on business performance, strategic initiatives, risk management framework, and changes in relevant laws and regulations. The Company remains committed to organizing such programmes on an ongoing basis to ensure that the Board is well-informed and equipped to discharge its duties effectively.
Details of the familiarisation programmes imparted to the Directors are available on the Company's website at: https://dcxindia.com.
DIRECTORS' RESPONSIBILITY STATEMENT:
The Directors' Responsibility Statement referred to in clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013 shall state that:
a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.
b. the directors had 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.
c. 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 and for preventing and detecting fraud and other irregularities.
d. 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.
NOMINATION AND REMUNERATION POLICY OF THE COMPANY:
The Nomination and Remuneration Policy of the Company for appointment and remuneration of the Directors, Key Managerial Personnel (KMP) and Senior Management of the Company along with other related matters have been provided in the Corporate Governance Report. As and when the need arises to appoint Director, KMP and Senior Management Personnel, the Nomination and Remuneration Committee (NRC) of the Company determines the criteria based on the specific requirements. NRC, while recommending candidatures to the Board, takes into consideration the qualification, attributes, experience and independence of the candidate.
COMMITTEES OF THE BOARD:
The Board of Directors of the Company have constituted the following committees:
• Audit Committee
• Nomination and Remuneration Committee
• Stakeholders Relationship Committee
• Risk Management Committee
• Corporate Social Responsibility Committee
The details with respect to the composition, number of meetings, attendance, powers, roles, terms of reference, etc. of the aforesaid committees are given in details in the "Report on Corporate Governance" of the Company which forms part of this Report.
DETAILS OF AMOUNT RECEIVED FROM A DIRECTOR OF THE COMPANY:
During the year under report, the Company has not received any amount from any Director of the Company pursuant to Rule 2 (1)(c) (viii) of the Companies (Acceptance of Deposits) Rules, 2014.
SECRETARIAL STANDARDS ISSUED BY THE INSTITUTE OF COMPANY SECRETARIES OF INDIA ('ICSI'):
In terms of Section 118(10) of the Companies Act, 2013, the Company has complied with the applicable Secretarial Standards i.e. SS-1 and SS-2, relating to the Meetings of
the 'Board' and 'General Meetings', respectively, as specified by the Institute of Company Secretaries of India (ICSI) and approved by the Central Government.
ANNUAL RETURN:
The Annual Return of the Company as per the provisions of Section 92(3) of the Companies Act, 2013, is available on the website of the Company https://dcxindia.com/investors/annual-return/
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND:
There was no unpaid/unclaimed dividend that was required to be transferred to the Investor Education and Protection Fund.
DEPOSITS:
The Company has neither accepted nor renewed any deposits in terms of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.
AWARDS RECEIVED DURING THE YEAR:
During the year, the following awards were received:
1. Vikrama Award from Sanatan Foundation to Dr. H S Raghavendra Rao, Chairman and Managing Director for setting a benchmark for innovation and excellence in Defence Industry.
2. Trijala Sangama National Award at National Award Ceremony 2026 from Advait National Seva Foundation to Dr. H S Raghavendra Rao, Chairman and Managing Director for his remarkable achievements and contributions to the defence industry.
PREVENTION OF INSIDER TRADING:
The Company has adopted a Code of Conduct for Prevention of Insider Trading (Code') in accordance with SEBI (Prohibition of Insider T rading) Regulations, 2015 with a view to regulating trading in securities by the Directors, Designated Employees and Connected Persons of the Company. The objective of this Code is to protect the interest of Shareholders at large, to prevent misuse of any price sensitive information and to prevent any insider trading activity by dealing in the shares of the Company by its Directors, Designated Employees, their immediate relatives and Connected Persons.
The Code requires pre-clearance approval for dealing with the Company's shares for all transactions by the Directors and Designated Employees (together called Designated Persons) and prohibits the purchase or sale of the Company's securities by Designated Persons while in possession of Unpublished Price Sensitive Information (UPSI) in relation to the Company. The Company Secretary is responsible for the implementation and monitoring of the Code. The Company also has in place a Code for practices and procedures for fair disclosure of unpublished price sensitive information which is available on the website of the Company at:https://dcxindia.com.
The Company regularly and timely intimates the designated persons and connected persons for non-trading in the shares of the Company whenever UPSI is available and also, the Company takes steps to freeze the PAN of designated and connected persons at the platform of the CDSL i.e. the Company's designated Depository Participant for non¬ dealing of shares of the Company whenever the trading window closes for declaration of financial results.
INSOLVENCY AND BANKRUPTCY CODE, 2016:
During the financial year, neither any application nor any proceeding is initiated against the Company under the Insolvency and Bankruptcy Code, 2016.
SETTLEMENTS WITH BANKS OR FINANCIAL INSTITUTIONS:
During the year under review, no settlements were made by the Company with any Banks or Financial Institutions.
DETAILS OF PENALTIES/PUNISHMENT/ COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF THE DIRECTORS' REPORT:
There have been no material changes or commitments, including any penalties or punishments imposed by regulators or courts, which have occurred between the end of the financial year March 31, 2026, and the date of this Report, that would significantly impact the financial position or the 'going concern' status of the Company. The Company continues to maintain its robust compliance framework to ensure adherence to all statutory and regulatory requirements.
INSURANCE:
The Company's properties and assets, including buildings, plant and machinery, and stocks, are adequately insured against a wide range of perils including fire, earthquake, flood, and other business risks. The Company has in place adequate insurance coverage for all its assets, properties, and potential risks, in line with prudent business practices and applicable regulatory requirements. These policies are periodically reviewed by the management to ensure comprehensive risk mitigation against unforeseen events, including fire, natural calamities, theft, and other insurable risks.
The Company continues to assess its risk exposure and ensures that appropriate insurance covers are maintained and renewed on a timely basis, in alignment with industry standards and the scale of operations.
OTHER DISCLOSURES:
Your directors state that no disclosure or reporting is required in respect of the following items as there were no transactions pertaining to these items during the year under review:
i. Issue of equity shares with differential rights as to dividend, voting or otherwise.
ii. Issue of shares (including sweat equity shares) to employees of the company under ESOP or any other scheme.
iii. The Managing Director of the Company has not received any remuneration or commission from the subsidiary.
GREEN INITIATIVE:
We request all shareholders to support the 'Green Initiative' of the Ministry of Corporate Affairs and the Company, by enabling the service of the Annual Report, Annual General Meeting Notice and other documents through electronically to your email address registered with your Depository Participant/ Registrar and Share Transfer Agent.
ACKNOWLEDGEMENTS:
The Board of Directors places on record its sincere appreciation for the continued support and co-operation received from all stakeholders, including shareholders, customers, suppliers, bankers, financial institutions, regulatory authorities, and business associates during the year under review. Their trust and confidence in the Company have been instrumental in its sustained growth and performance.
The Directors also wish to express their gratitude to the Central and State Governments and various regulatory bodies for their guidance and support. Further, the Board acknowledges with deep appreciation the dedication, commitment, and valuable contribution of the employees at all levels, whose efforts continue to drive the Company's success.
For and on behalf of the Board of Directors
Sd/- Sd/-
Dr. H S Raghavendra Rao Shivakumar R
Chairman & Managing Director Executive Director
DIN: 00379249 DIN: 08678987
Place: Bengaluru Date: 12.08.2026
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