The Directors have pleasure in presenting before you the 12^th Annual Report of the Company together with the Audited
Financial Statements for the year ended 31^st March, 2026. The accounts are prepared in accordance with the Companies
(Indian Accounting Standards) Rule, 2015 (IND AS) prescribed under Section 133 of the Companies Act, 2013 (“the Act”).

FINANCIAL RESIHTS • (Rupees in Lakhs)

DIVIDEND :

The Board of Directors recommends the payment of Dividend
for the year ended 31^st March, 2026 at the rate of Rs.0.60/-
per share. Subject to approval of Shareholders, the Equity
Dividend shall be paid, subject to the provision of Section
126 of the Act to those Shareholders whose names stand on
the Register of Members on 02^nd September, 2026.

The Dividend in respect of shares held in electronic form,
will be paid to all those beneficial owners of the shares as
per the details furnished by depositories for the purpose at
the close of business hours on 24^th August, 2026.

OPERATIONS:

The Company is a Specialty Paper manufacturing company
offering niche quality of papers and has long standing
goodwill in the market.

The Company has maintained its performance in terms of
revenue at Rs. 808 crores (Rs. 809 crores in the last year) by

larger tonnage of paper by 1675 MT, by lowering average net
sales realization of paper per MT with a view to pass on the
benefit of cost reduction to the customer.

There is strong emphasis in other companies manufacturing
commodity papers to compete with some of the products
manufactured by the Company considering higher
realisations fetched by Pudumjees's products. Whilst in
some cases these competitors do have inherent advantage
of lower cost due to their location, the others tend to
produce somewhat lower quality of papers at lesser costs.
At times, therefore, it becomes necessary for the Company to
pass on the benefit of cost reduction to customers without
compromising on stringent and consistent quality of papers
and its margins.

The Company has successfully completed its capex
programme of over Rs.110 crores by installing an AFBC boiler,
modernizing certain important parts of three of the paper
making machines and setting up of a Solar Power Plant.

The 15.4 MW Solar Power Plant has been successfully setup
and operationalized in December 2025 at Bhalwani near
Solapur. With this, the Company's annual power requirement
of about 38% would be comprising of renewable energy
which apart from reducing cost of energy, will also reduce
carbon footprints by about 27000 MT.

The recent general order passed by Maharashtra Electricity
Regulatory Commission (MERC) in March 2026 has changed
the banking norms thereby restricted consumption of power
generated to only during solar hours which has the effect of
reducing the aforesaid percentage to 31% with the lapse of
remaining power. This matter is currently in appeal before
the Appellate Tribunal for Electricity (APTEL) which has
stayed operation of the said order until its judgement.

The management is also actively considering to setup
Battery Energy Storage System (BESS) at Bhalwani to avoid
lapse of aforesaid power and also to generate more power by
setting up of another Solar Power Plant in due course once
clarity on the regulatory framework for banking emerges and
MERC's Regulations for BESS are announced.

The Company is in the process of obtaining Environmental
Clearance for setting up a Specialty Paper manufacturing
facility of 68,000 MT per annum at Mahad which has become
necessary after the Supreme Court judgement in Vanashakti
versus Union of India in August 2025, setting aside Central
Government's Notification dated 29.1.2025. Simultaneously
the Company is also in advanced stage of discussion with
machinery manufacturers for the project.

Hygiene Products Division has achieved about 17% of
improvement in its revenue. The Division mainly caters
to Institutional customers such as Corporates, Airports,
Business Hotels, Restaurants etc. The newly established
vertical of supply of Paper Bags and Paper Cups for various
applications including food grade segment, has received
good response. The business of this segment is dominated
by many unorganized players and, therefore, it may take
some more time to achieve fair profitability.

TRANSFER OF AMOUNTS AND SHARES TO
INVESTOR EDUCATION AND PROTECTION FUND :

Pursuant to the provision of Sections 124 and 125 of the
Act, relevant amounts like unclaimed dividend etc., which
remained unpaid or unclaimed for a period of seven years
have been transferred by the Company, from time to time
on due dates, to the Investor Education and Protection Fund
(‘IEPF').

In compliance with these provisions read with the Investor
Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016, the Company has
transferred 1,08,100 shares to the Demat Account of the IEPF
Authority maintained with NSDL, in respect of which dividend
had remained unpaid/unclaimed for a consecutive period
of 7 years or more. The details of the Shareholders whose
shares transferred to IEPF Authority and procedure to claim
refund of unclaimed dividend amount and shares from IEPF

authority are available on the website of the Company viz:
https://pudumjee.com/unclaimed-dividends/.

FIXED DEPOSITS :

The Company accepts fresh/renewal of fixed deposits from
the public and as on 31^st March, 2026 stood at Rs.798.25 Lakhs
as against Rs. 808.80 Lakhs at the end of the previous year
(i.e. Fixed Deposit Liability).

During the year, the Company has accepted/renewed such
deposits aggregating to Rs.2.10 Lakhs, and all the deposits
falling due for repayment during the year were fully repaid
on maturity except unclaimed deposits numbering 31 with
an amount of Rs. 20.65 Lakhs as at the end of the year.

There were no over dues on account of principal or interest
on public deposits other than the unclaimed deposits as at
the year end and there have been no default in repayment
of deposits or payment of interest thereon. There are no
deposits which are not in compliance with the requirements
of Chapter V of the Act read with Companies (Acceptance of
Deposits) Rules, 2014.

AUDITORS:

i. STATUTORY AUDITORS :

The Members of the Company at the 8^th Annual General
Meeting re-appointed M/s. J. M. Agrawal & Company,
Chartered Accountants, as Statutory Auditors for further
period of five years till the conclusion of 13^th Annual
General Meeting of the Company.

There is no adverse remark or qualification in the
Statutory Auditor's Report annexed to this Annual Report.

The Auditors have reported that there is no fraud on
or by the Company noticed or reported during the year.

ii. SECRETARIAL AUDITOR :

Pursuant to provision of Section 204 read with Section
134(3) of the Act, the Board had appointed M/s. SIUT &
CO LLP, Practicing Company Secretaries, Pune to conduct
Secretarial Audit of the Company for the Financial Year
2025-26. The Secretarial Audit Report for the Financial
Year 2025-26 is annexed hereto as Annexure - 1.

There is no adverse remark or qualification in the
Secretarial Audit Report.

The Company has complied with the applicable
Secretarial Standards during the year issued by the
Institute of Company Secretaries of India.

Further in compliance with Regulation 24A of the SEBI
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 and Section 204 of the Act, the Board
of Directors of the Company at its meeting held on
26^th May, 2025, have approved the appointment of M/s.
SIUT & CO LLP, Practicing Company Secretaries, Pune
as Secretarial Auditors of the Company for a term of
five consecutive years commencing from FY 2025-26 till
FY 2029- 30.

iii. COST AUDITOR :

Pursuant to provision of Section 148 of the Act, the Board
has appointed Mr. Narhar K. Nimkar (Membership No.
F-6493), Cost Accountants in Practice, Pune to conduct
the audit of the Cost Records of the Company relating to
“PAPER” for the Financial Year 2025-26. As required under
the Act, a resolution seeking Shareholders approval for
the remuneration payable to the Cost Auditors forms
part of Notice convening the 12^th Annual General Meeting
of the Company.

DETAILS OF APPOINTMENT OF DIRECTORS AND
KEY MANAGERIAL PERSONNEL (KMP) :

In terms of provisions of the Act, Dr. Ashok Kumar (DIN:
07111155), Executive Director of the Company, retires by
rotation at the ensuing Annual General Meeting and being
eligible offers himself for re-appointment.

The details of the Directors of the Company, proposed to
be re-appointed at the 12^th Annual General Meeting, as
required by Regulation 36(3) of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and Secretarial
Standard - 2 issued by the Institute of Company Secretaries
of India are provided as Annexure at the end of the Notice
convening the 12^th Annual General Meeting of the Company.

The Shareholders of the Company had re-appointed Mr. Vinod
Kumar BeswaL (DIN: 00120095) and Mr. Nandan Damani (DIN:
00058396) as Non-Executive Independent Directors of the
Company for a second term at the Annual General Meeting
held on 21^st August, 2021, for a period commencing from
17^th September, 2021 up to 20^th October, 2025. Accordingly,
Mr. BeswaL and Mr. Damani ceased to be Directors of the
Company with effect from 20^th October, 2025 upon completion
of their respective tenure as Independent Directors.

Further, the Shareholders of the Company had re-appointed
Mrs. Madhu Dubhashi (DIN: 00036846) as Non-Executive
Independent Director of the Company for a second term at
the Annual General Meeting held on 21^st August, 2021, for
a period commencing from 17^th September, 2021 up to 13^th
November, 2025. Accordingly, Mrs. Dubhashi ceased to be
Director of the Company with effect from 13^th November, 2025
upon completion of her tenure as Independent Director.

The Board places on record its sincere appreciation for the
valuable guidance, support and contributions rendered by
Mr. Vinod Kumar BeswaL, Mr. Nandan Damani and Mrs. Madhu
Dubhashi during their association with the Company.

Based on the recommendation of the Nomination and
Remuneration Committee, the Board of Directors of the
Company, at its meeting held on 10^th November, 2025,
appointed Mrs. ShaiLaja Nair (DIN: 11343122) as an Additional
Director in the capacity of Non-Executive Independent
Director of the Company for a period of five consecutive years
with effect from 14^th November, 2025 up to 13^th November,
2030, subject to approval of the Members of the Company.

The appointment of Mrs. ShaiLaja Nair as an Independent
Director was subsequently approved by the Members of the

Company through Postal BaLLot on 17^th December, 2025 in
accordance with the provisions of the Act, the Rules framed
thereunder and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

Based on the recommendation of the Nomination and
Remuneration Committee and in compliance with the
SEBI (Listing ObLigations and DiscLosure Requirements)
ReguLations, 2015, the Board of Directors at its meeting
held on 31^st January, 2026 re-appointed Dr. Ashok Kumar
(DIN: 07111155) as an Executive Director of the Company for
a further term of five years with effect from 27^th May, 2026
to 26^th May, 2031, subject to the approval of the Members.
Subsequently, the Members of the Company approved
the said re-appointment through PostaL BaLLot on 05^th
March, 2026.

The Company has received declarations from aLL the
Independent Directors of the Company confirming that
they meet the criteria of independence as prescribed both
under the appLicabLe provisions of the Act and appLicabLe
reguLations of the SEBI (Listing ObLigations and DiscLosure
Requirements) Regulations, 2015 and also confirming that
they are not debarred from holding the office of Director by
virtue of any SEBI order or any other such authority.

The Board of Directors is of the opinion that the Independent
Directors hoLds the highest standard of integrity and possess
necessary expertise and experience including proficiency in
the field in which the Company operates.

MEETINGS :

During the year 4 Board Meetings and 4 Audit Committee
Meetings were convened and held. The detaiLs of which
are given in the Corporate Governance Report that forms
part of this AnnuaL Report. The intervening gap between
the Meetings was within permissibLe period prescribed
under the Act and SEBI (Listing ObLigations and DiscLosure
Requirements) ReguLations, 2015.

CORPORATE SOCIAL RESPONSIBILITY (CSR) :

The Board of Directors has constituted the Corporate SociaL
ResponsibiLity (CSR) Committee in accordance with the
provisions of Section 135 of the Act & RuLes made thereunder.

During the year under review, Mr. Nandan Damani, Chairman
of the Committee and Non-Executive Independent Director,
and Mr. Vinod Kumar BeswaL, Non-Executive Independent
Director, ceased to be members of the Committee upon
their retirement as Non-Executive Independent Directors
of the Company with effect from 20^th October, 2025.
SubsequentLy, Mr. DiLip J. Thakkar and Mr. Sanjay Kumar
Singh were inducted as members of the Committee with
effect from 21^st October,2025, and Mr. Ved P. Leekha was
appointed as Chairman of the Committee with effect from
10^th November, 2025.

As on 31^st March, 2026, the Committee comprised Mr. Ved
P. Leekha, Chairman and Non-Executive Non-Independent
Director, Mr. Basant Kumar Khaitan, Non-Executive

Independent Director, Mr. Surendra Kumar Bansai, Non¬
Executive Non-Independent Director, Mr. Diiip J. Thakkar,
Non-Executive Independent Director and Mr. Sanjay Kumar
Singh, Non-Executive Independent Director.

The major roie of this Committee is to formulate, recommend,
implement and monitor the CSR policy, activities to be
undertaken by the Company and to meet/contribute
expenditure towards its recommended Corporate Social
Responsibility objectives. This Committee carried out the
CSR Activities pursuant to section 135 read with Schedule VII
of the Act as amended from time to time and as per the CSR
policy of the Company.

For the financial year under review, the Company was
required to spend Rs.225 Lakhs on CSR activities pursuant to
Section 135(1) of the Act.

In fulfillment of this obligation, the Company disbursed the
entire amount of Rs.225 Lakhs towards various approved CSR
initiatives through designated implementing agencies, in
line with its CSR Policy. Of this, Rs.95.58 Lakhs was utilized by
the implementing agencies by 31^st March 2026. The remaining
unutilized amount of Rs.129.42 Lakhs, allocated for ongoing
projects, was transferred to the Company's 'Unspent CSR
Account' in accordance with Section 135(6) of the Act.

These projects are currently in progress and are expected
to be completed upon achieving its objectives The Company
continues to cioseiy monitor their implementation to ensure
meaningful and timely outcomes.

The Company remains strongly dedicated to acting as a
responsible corporate citizen and continues to consider
Corporate Social Responsibility (CSR) a core element of its
business values and approach.

The CSR Committee affirmed that the implementation
and monitoring of the CSR projects during the year was
in compliance with the CSR objectives and CSR policy of
the Company.

The CSR Policy of the Company is available on the website
of the Company viz: https://pudumjee.com/wp-content/
upioads/2026/05/PPPL-Corporate-Sociai-Responsibiiity-
Poiicy.pdf.

The other relevant disclosures as stipulated under the
Companies (Corporate Social Responsibility Policy) Rules,
2014, as amended are given in Annexure-2.

PARTICULARS OF LOAN(S), GUARANTEE(S) OR
INVESTMENT(S) :

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

PARTICULARS OF CONTRACTS OR ARRANGEMENTS
WITH RELATED PARTIES :

A policy on Related Party Transactions has been adopted by
the Board of Directors at its meeting held on 14^th November,
2015 for determining the materiality of transactions with

related parties and dealings with them. The said policy is
available at the Company's website at https://pudumjee.
com/wp-content/upioads/2026/02/PPPL-Reiated-Party-
Transactions-Poiicy-1.pdf. The Audit Committee reviews aii
related party transactions quarterly and also as and when
feit necessary.

Pursuant to Sections 134 (3), 188 (1) of the Act read with Rule
8(2) of the Companies (Accounts) Rules, 2014 the particulars
of contracts/arrangements entered into by the company
with related parties referred to in sub-section (1) of section
188 of the Act in Form AOC -2 are provided as Annexure-3.

ANNUAL EVALUATION OF PERFORMANCE OF
BOARD DIRECTOR(S) AND COMMITTEE(S) :

As required under Act, a meeting of the Independent Directors
was held on 31^st January, 2026 to evaluate the performance
of the Non-Independent Directors, wherein the evaluation
of performance of the Non-Independent Directors, including
the Chairman and also of the Board as a whole was made,
against pre-defined and identified criteria.

The criteria for evaluation of the performance of the
Independent Directors, Chairman and the Board, was
finalized by the Nomination and Remuneration Committee in
its meeting held on 22^nd January, 2016, the said committee has
carried out evaluation of the performance of every Director.
The said criteria is available at the Company's website at
https://pudumjee.com/wp-content/upioads/2025/04/
Poiicy-on-Evaiuation-of-Performance-of-Directors.pdf. The
Board of Directors at their meeting held on 31^st January, 2026
has evaluated the performance of Independent Directors.
The performance of the Committee was also generally
discussed and evaluated.

While evaluating, the principles and guidelines issued
vide master circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 of
Securities Exchange Board of India dated 11^th November,
2024 on Board Evaluation have been taken into account.

FAMILIARISATION PROGRAMME :

The details of programmes for familiarisation of
Independent Directors with the Company is available at the
Company's website at https://pudumjee.com/wp-content/
upioads/2026/02/PPPL-Famiiiarisation-Programme-for-
Independent-Directors.pdf

RISK MANAGEMENT POLICY :

In accordance with the requirements of the Act, the Company
has adopted and implemented a Risk Management Policy
for identifying risks to the Company, procedures to inform
Board members about the risk assessment & minimization
procedures, monitoring the risk management plan, etc.

VIGIL MECHANISM / WHISTLE BLOWER MECHANISM :

The Company promotes ethical behavior in aii its business
activities and has estabiished a vigii mechanism for Directors
and Empioyees to report their genuine concerns.

Pursuant to Section 177 of the Act read with Regulation 22 of
the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Company has formulated a policy “Vigil
Mechanism/Whistie Blower Policy”, wherein the Employees/
Directors/Stakehoiders of the Company are free to report
any unethical or improper activity, actual or suspected
fraud or violation of the Company's Code of Conduct. This
mechanism provides safeguards against victimization of
Employees, who report under the said mechanism. During
the year under review, the Company has not received any
complaint under the said mechanism. The said policy is
available at the Company's website at https://pudumjee.
com/poiicies/.

PARTICULARS OF EMPLOYEES :

As required under Section 197(12) of the Act read with
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 the statement giving required details
is given in the Annexure-4 and 4A to this report.

In accordance with the provisions of Section 197 (12) of the
Act, read with Rule 5(2) and Rule 5(3) of the Companies
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014, the statement containing the names of the top
ten employees in terms of remuneration drawn and other
relevant particulars is provided in a separate annexure
forming part of this Report. Pursuant to Section 136 of the
Act, the Annual Report is being sent to the Shareholders
excluding the said annexure. Shareholders who wish to
obtain a copy of the annexure may write to the Company
Secretary at investors.relations@pudumjee.com.

DISCLOSURE UNDER THE SEXUAL HARASSMENT
OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013 :

An Internal Complaints Committee ('Sexual Harassment
Committee') has been constituted, under the Sexual
Harassment of Women at Workplace (Prevention, Prohibition
and Redressai) Act, 2013, to deal with the complaints,
if any, from the Company and other Companies in the
Pudumjee Group.

During the year under review, no complaints relating to
discrimination or harassment, including sexual harassment,
were received by the Committee. Consequently, there were
no complaints pending for resolution for more than ninety
days, and no complaints remained unresolved as on 31^st
March, 2026.

DISCLOSURE UNDER THE MATERNITY BENEFIT
ACT, 1961

Your Company is compliant with the statutory provisions of
the Maternity Benefit Act, 1961.

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

As required under Section 134(3)(m) of the Act, read with the
Companies (Accounts) Rules, 2014, the information relating to

Conservation of Energy, Technology Absorption and Foreign
Exchange earnings & outgo is annexed as Annexure-5 to
this Report.

REPORT ON CORPORATE GOVERNANCE :

Your Company's philosophy on Corporate Governance, sets
the goal of achieving the highest level of transparency with
integrity in all its dealings with its Stakeholders including
Shareholders, Employees, Lenders and Others. A report
on Corporate Governance along with a Certificate from the
practicing Company Secretary regarding the Compliance of
Conditions of Corporate Governance as stipulated under
the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 forms part of the Annual Report as
Annexure-6.

MATERIAL CHANGES AND COMMITMENTS, IF ANY:

There are no adverse material changes or commitments
that occurred after 31^st March, 2026, which may affect the
financial position of the Company or may require disclosure.

ANNUAL RETURN:

Pursuant to the provisions of Act, draft of Annual Return for
the financial year 2025-2026 is available on the website of
the Company at https://pudumjee.com/financial-results/.

REMUNERATION POLICY :

In accordance with the provisions of Section 178 and other
applicable provisions of the Act and the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015,
the Company has formulated remuneration policy which
inter alia, includes the criteria for determining qualifications,
positive attributes and independence of Directors. The said
policy may be referred to, at the Company's website i.e.,
https://pudumjee.com/poiicies/.

SIGNIFICANT AND MATERIAL ORDERS :

There is no significant and material order passed by the
Regulators or Courts or Tribunals impacting the going
concern status and Company's operations in future.

DIRECTORS' RESPONSIBILITY STATEMENT :

The Directors confirm that:

a) in the preparation of the annual accounts, the applicable
accounting standards have been followed along with
proper explanation relating to material departures;

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
the end of the financial year and of the profits of the
company for that period;

c) they have taken proper and sufficient care for
the maintenance of adequate accounting records
in accordance with the provisions of this Act for

safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;

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

e) they have laid down internal financial controls to be
followed by the Company and that such internal financial
controls are adequate and were operating effectively.

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

ACKNOWLEDGEMENTS :

Your Directors would like to express their sincere appreciation
of the positive co-operation received from the Bankers,
Customers, Vendors and Investors of the Company for their
continued support during the year.

The Directors also wish to place on record their deep sense
of appreciation for the dedication and contribution made by
employees at all levels and look forward to their support in
future as well.

On behalf of the Board of Directors,

Place: Mumbai A. K. Jatia,

Date: 22^nd May, 2026 Executive Chairman.