The Directors of your company take pleasure in presenting the Thirty-second Annual Report on the business and operations of the
company together with financial statements for the financial year ended March 31, 2026.

1. Financial Results & Appropriations:

a) Financial Results (Rs. in Crores)

b) Company's Performance

Your Company reported resilient financial performance with growth across income, profitability, and margins. Total Income
for FY26 stood at Rs 684.9 crore, compared to Rs. 608.8 crore in FY25, reflecting YoY growth of 12.5%. EBITDA increased
to Rs 67.2 Cr from Rs. 58.0 crore, a growth of 15.8%, driven by operating Leverage. The EBITDA margin has inched up
from 9.5% in FY25 to 9.8% in FY26. PAT rose by 49.0% to Rs 29.0 crore in FY26 compared to the same period last year.
Capacity utilization also improved to 74% in FY26 versus 68% in FY25.

Going forward, evolving geo-political developments, logistics costs, and forex volatility may impact export markets and
imported raw material costs.

c) Disclosures under Section 134(3) (1) of the Companies Act, 2013 - Material Changes and Commitment

There were no material changes and commitments affecting the financial position of the Company which occurred between
the end of the financial year to which these financial statements relate and the date of this Report.

d) Dividend

The Board has proposed Final Dividend of 15% of Face Value i.e. INR.1.5 per share for FY 2025-26 which shall be paid
subject to the approval of Shareholders in the ensuing Annual General Meeting.

e) Transfer of unclaimed dividend to Investor Education and Protection Fund

During the year under review, Company has transferred following unclaimed dividend amount to IEPF account.

f) Reserves

The Board of Directors does not propose to transfer any amount to the reserves.

g) Credit Rating: Summary of rating action obtained from ICRA

h) Details of Internal Financial Controls with reference to the Financial Statements

Adequate Internal Control systems commensurate with the nature of the Company's business and size and complexity of
its operations have been developed with the help of independent expert agency and the same are operating satisfactorily.
Internal control systems consisting of policies and procedures are designed to ensure accuracy and completeness of the
accounting records and the timely preparation of reliable financial information, timely feedback on achievement of operational
and strategic goals, compliance with policies, procedure, applicable laws and regulations and that all assets and resources
are acquired economically, used efficiently and adequately protected.

The Internal Financial Controls with reference to the financial statements were adequate and operating effectively as
endorsed by Statutory Auditors in their report.

i) Details in respect of frauds reported by Auditors

During the year under review, there have not been any instances of fraud and accordingly, the Statutory Auditors have not
reported any frauds either to the Audit Committee or to the Board under Section 143(12) of Companies Act, 2013 (the Act).

2. Industry Outlook and Business Overview

Details on economic outlook, industrial outlook, business overview and SWOT analysis of the company is covered in the
Management Discussion and Analysis report.

3. Financial Information and Disclosuresa) Report on Performance of Subsidiaries, Associates and Joint Venture Companies

Since Company does not have any Subsidiary, Joint Venture or Associate Company, therefore this clause is not applicable
to the Company.

b) Conversion of Company or Change in nature of business.

During the year under review, there was no instance of conversion of company or there is no change in the nature of the
business; therefore, disclosure under this clause is not required.

c) Share Capital

There is no change in the Authorised Share Capital and Paid-Up Share Capital during the year. The Authorised Share Capital
is 1,20,00,000 equity shares of Rs.10/- each and Paid-Up Share Capital is 1,09,46,300 equity shares of Rs.10/- each.

d) Deposits

During the year under review, the Company has not accepted any deposits from the public.

e) Disclosure regarding significant and material orders passed by Regulators or Courts or Tribunal.

During the year under review, there were no significant and material orders passed by the Regulators or Courts or Tribunals
impacting the going concern status and Company's operations in future.

f) Particulars of contracts or arrangements made with Related Parties.

All related party transactions that were entered into, during the financial year, were on arm's length basis and in the ordinary
course of the business. There are no materially significant related party transactions made by the company with Promoters,
Key Managerial Personnel or other designated persons which may have potential conflict with interest of the company at
large.

However, Form AOC-2 is attached herewith as Annexure VII.g) Particulars of Loans, Guarantees or Investments under Section 186 of The Companies Act, 2013.

During the year under review, Company has not extended any Loans, Guarantees, Investments and Securities to any other
individual or entity under Section 186 of the said Act.

h) Disclosure under Section 43(a) (ii) of Companies Act, 2013

The Company has not issued any shares with differential rights and hence no information as per provisions of Section 43(a)
(ii) of the Act read with Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014 is required to be furnished.

i) Disclosure under Section 54(1) (d) of Companies Act, 2013

The Company has not issued any sweat equity shares during the year under review and hence no information as per
provisions of Section 54(1) (d) of the Act read with Rule 8(13) of the Companies (Share Capital and Debenture) Rules,
2014 is required to be furnished.

j) Disclosure under Section 62(1)(b) of Companies Act, 2013

The Company has not issued any equity shares under Employees Stock Option Scheme during the year under review and
hence no information as per provisions of Section 62(1) (b) of the Act read with Rule 12(9) of the Companies (Share Capital
and Debenture) Rules, 2014 is required to be furnished.

4. Disclosures related to Board, Committees, Remuneration and Policies:a) Directors and Key Managerial Personnel

The Board met seven times during the year under review. The intervening gap between the meetings was within the period
prescribed under the Companies Act, 2013 and the SEBI Listing Regulations. The Committees of the Board usually meet
on the day of the Board meeting, or whenever the need arises for transacting business.

Adv. Shrikant Malegaonkar, Independent Director resigned from the Company with effect from 6^th April 2026 due to personal
reasons and health issues.

The Board of Directors at its meeting held on 9^th May, 2026 approved the following appointment/ re-appointments based
on the recommendations of the Nomination and Remuneration Committee:

• Mr. Sunil Mahendra Suratwala (DIN: 00490715) appointed as an Additional Director (Non-Executive and Independent)
with effect from 9^th May, 2026. His appointment will be placed before the members of the Company for approval via
Postal Ballot.

• Mrs. Moushmi Shaha (DIN: 02915342) re-appointed as an Independent Woman Director for a second term of five
years commencing from 22^nd July 2026 up to 21^st July 2031. Her re-appointment will be placed before the members
of the Company for approval via Postal Ballot.

• Mr. Ankem Sri Prasad Mohan (DIN: 09413926) re-appointed as an Independent Director for a second term of five
years commencing from 21^st December 2026 up to 20^th December 2031. His re-appointment will be placed before
the members of the Company for approval at the ensuing Annual General Meeting.

Mr. Tuljaram R. Maheshwari is liable to retire by rotation at the ensuing Annual General Meeting and being eligible, offers
himself for re-appointment.

Details regarding appointment of Directors, composition of Board of Directors and Committees, meetings held during the
year under review and terms of reference of Committees are provided in Corporate Governance Report.

There is no change in the composition of Board of Directors and Key Managerial Personnel during the financial year 2025¬
26. There are no Directors or Key Managerial Personnel were appointed or resigned during the year.

b) Declaration by Independent Directors and Compliance with Code of Conduct.

In terms of Section 149(7) of the Act, and Regulations 16(1)(b) and 25(8) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“LODR”), the Independent Directors have submitted their declaration confirming
compliance with the criteria of independence as stipulated under Section 149(6) of the Act and Regulations 16(1)(b) of SEBI
(LODR).

There is no change which may affect the status of Independent Directors as Independent Directors of the Company and
the Board is satisfied of the integrity, expertise and experience (including proficiency in terms of Section 150(1) of the Act
and applicable rules thereunder) of all Independent Directors on the Board.

All the Directors and Senior Management Personnel have also complied with the Code of Conduct of the company as
required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for its Directors and Senior
Management.

The Managing Director and Chief Executive officer, Chief Financial Officer and Whole Time Director have given Declaration
regarding compliance with the Company's code of conduct for Directors and Employees under Regulation 34(3) read with
Part D of Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 which is annexed
herewith as Annexure I.

c) Information of Board Meeting procedure during the Financial Year 2025-26.

The Board meetings of the Company are conducted as per the provisions of the Companies Act, 2013 and applicable
Secretarial Standards. Information as mentioned in the Act and all other material information, as may be decided by the
management, were placed before Board for their consideration. Details on the matters to be discussed along with relevant
supporting documents, data and other information is also furnished in the form of detailed agenda to the Board and the
Committees concerned, to enable directors take critical decisions and accordingly advise the management.

d) Director's Remuneration Policy and Criteria for Matters under Section 178 and Payment of Commission.

As stipulated under Section 178 of the Act, the Board has approved a Nomination and Remuneration Policy of the Company.

The Policy documents mention in detail the mechanism for appointment, cessation, evaluation and remuneration of the
Directors, Key Managerial Personnel and Senior Management of the Company. Information on the Policy and details of the

criteria for determining qualifications, positive attributes and other matters in terms of Section 178 of the Act is provided in
the Corporate Governance Report.

The Company has paid Performance Bonus of Rs. 20 Lacs to Mr. T R. Maheshwari, CEO, CFO and Whole Time Director
during the financial year under review.

e) Annual evaluation of the performance of the Board and its Committees.

Pursuant to the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, the Board of Directors have carried
out an annual performance evaluation of its own performance and that of the Directors and Committees, internally.

I t included the Evaluation of the Board as a whole and its committees. The exercise was led by the Chairman of Nomination
and Remuneration Committee along with an Independent Director. The Evaluation process focused on various aspects
of the Board and Committees functioning such as composition of the Board and Committees, experience, performance of
duties and governance issues etc. Separate exercise was carried out to evaluate the performance of individual Directors on
parameters such as attendance, contribution, independent judgment and guidance and support provided to the Management.
The results of the Evaluation were shared with the Board, Chairman of respective Committees and individual Directors.

f) Directors Responsibility Statement

Pursuant to Section 134(5) of the Companies Act, 2013, the Directors, based on the representation received from the
management, confirm that:

i. in the preparation of the annual accounts for the year ended March 31, 2026, the applicable Accounting Standards
have been followed along with proper Explanation relating to material departures;

ii. the directors have selected such accounting policies and applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of
the Financial Year 2025-26 and the profit of the Company for that period;

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

iv. the directors have prepared the annual accounts on a going concern basis;

v. the directors have laid down internal financial controls to be followed by the Company and such internal financial
controls are adequate and operating effectively; and

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

g) Corporate Governance

Corporate Governance Report along with General Shareholder's Information form part of Board's Report is included in this
Annual Report.

The Managing Director and Chief Executive Officer/Chief Financial Officer and Whole Time Director have certified to the
Board with regard to financial statements and other matters as required under Regulation 17(8) read with Schedule II to
the Listing Regulations is annexed herewith as an Annexure II.

h) Corporate Social Responsibility and its Policy

Corporate Social Responsibility is an integral part of the Company's ethos and policy and it has been pursuing this on a
sustained basis. In this endeavor, the Company has contributed funds for the CSR activities/project related to promoting
rural and nationally recognized sports, promotion of education and employment, improving health etc.

During the year under review, your Company was required to spend Rs. 74,47,850 towards CSR activities against which, the
Company has spent Rs. 89,18,625. The Company also adjusted amount extra spent Rs.2,66,480 FY 2024-25. So, Company
has spent an extra amount of Rs. 17,37,255. The Annual Report on CSR activities as required to be given under Section
135 of the Companies Act, 2013 and Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 has
been provided in an Annexure - III to this Report. CSR Policy is available on the website of the company at www.silworld.
in/investors.

The composition of the CSR Committee is provided in the Corporate Governance Report.

As per Rule 4(5) of CSR Rules, the Company has received the certificate from Managing Director and Chief Executive
Officer, Chief Financial Officer and Whole Time Director the person responsible for financial management to the effect
that the funds disbursed by the Board for CSR implementation have been utilised for the purposes and in the manner as
approved by the Board.

i) Risk Management Policy

The Board of Directors have approved and adopted comprehensive Risk Management Policy for the Company.

Risk Management Policy is core to the diversified operations especially protecting Stakeholder value, improving governance
processes, achieving strategic objectives and also for preparing to deal with adverse situations or unforeseen circumstances.

The Policy will help in risk identification, risk measurement, define risk appetite and threshold limits and suggesting risk
mitigation measures. The process is ongoing and requires continuous exercise across all locations and functions of the
Company. The Audit Committee will do the periodic review of implementation, assessment and mitigation measures under
Risk Management Policy. Web link for Risk Management Policy is www.silworld.in/investors.

Risk identification and mitigation:

Asbestos businesses are navigating supply-chain pressures, Apart from above, there are risks that can impact the business
such as logistics costs and forex volatility may impact export markets and imported raw material costs.

5. Auditors:a) Statutory Auditor

Members of the Company in its 27^th Annual General Meeting had appointed M/s Joshi Apte & Company, Chartered
Accountants (Firm Registration No.: 104370W) as Statutory Auditors of the Company for a term of 5 (five) years.

M/s Joshi Apte & Company, Chartered Accountants (Firm Registration No.: 104370W), hold office until the ensuing AGM
and are eligible for reappointment for a second term of five (5) consecutive years from Financial year 2026-27 to Financial
year 2030-31 i.e. till the conclusion of 37^th Annual General Meeting. They have confirmed their eligibility under Sections
139 and 141 of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Upon recommendation by the Audit Committee, the Board proposes their reappointment from the conclusion of this AGM
until the conclusion of 37^th Annual General Meeting to be held in 2031.

Details of remuneration paid to Auditors for FY 2025-26, please refer note No 33.1 of Notes to accounts.

b) Cost Auditor

As per the provisions of Section 148 of the Act and Rule 3 of the Companies (Cost Records and Audit) Rules, 2014 (“the
Rules”), the Company is required to maintain cost records with respect to certain products of the Company and get the
same audited.

Accordingly, the Board of Directors of the Company on the recommendation of Audit Committee has appointed Mr. N.K.
Nimkar, Cost Accountant (M No: F 6493) to audit the cost records of the Company for the financial year 2026-27 on a
remuneration of INR 50,000/- plus Goods and Services Tax as applicable. Accordingly, a resolution seeking member's
ratification for the remuneration payable to Cost Auditors is included in the notice convening the Annual General Meeting.
The Cost Audit Report for the financial year 2025-26 will be filed within the stipulated period of 30 days after it is submitted
by the Cost Auditors.

c) Secretarial Auditor

Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015 and its amendment
thereof members of the company in its 31^st Annual General Meeting had appointed M/s Mehta & Mehta, Company Secretaries
(ICSI Unique Code P1996MH007500) as the Secretarial Auditors of the Company for a period of 5 years from Financial
year 2025-26 to Financial year 2029-30. They also submitted their Peer Review Certificate.

d) Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, M/s. Mehta & Mehta, Company Secretaries carried out the Secretarial Audit of the

Company for the financial year 2025-26. There are no qualifications, observations, adverse remark or disclaimer in the said
Report. The Secretarial Audit Report is included as Annexure IV and forms an integral part of this Report.

e) Explanation on Comments on Audit Report

There are no qualifications, reservations or adverse remarks or disclaimers made by Statutory Auditors in their Audit Report.
Observations of the Auditors are self-explanatory. The report of the Statutory Auditors forms part of the Annual Report
2025-26.

6. Maintenance of Cost Records

Your company confirms that the cost records as specified by the Central Government under sub-section (1) of section 148 of the
Companies Act, 2013, are maintained by the Company.

7. Secretarial Standards

The company has complied with all the applicable Secretarial Standards.

8. Other Disclosuresa. Particulars of employees and related disclosures

Disclosure of remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed herewith as Annexure-V.

A statement containing particulars of employees as required under Section 197(12) of the Act read with Rules 5(2) and
5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided as separate
annexure forming part of this Report. In terms of Section 136 of the Act, the Annual Report and financial statements are
being sent to the members excluding the aforesaid annexure. The said annexure is available for inspection at the registered
and corporate office of the Company during business hours and will be made available to any shareholder, on request.

b. Conservation of Energy, Technology absorption, Foreign Exchange Earnings and Outgo

The information pertaining to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo as
required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules,
2014 are provided in Annexure - VI to this report.

c. Extract of Annual Return

As provided under Section 92(3) & 134(3)(a) of the Companies Act, 2013, Annual Return for FY 2025-26 is available on
the website of the Company and can be accessed at www.silworld.in/investors.

d. Occupational Health & Safety

The organization believes in 'Zero Harm'. The aim is to improve Health and Safety Standards of people who are working
with the organization in their capacity as employees, contractors or in any other role. Efforts are taken to minimize activities
which may affect the health and safety in working place. Steps are taken for optimum utilization of plants, with least disposal
of harmful gases in environment.

e. Disclosure as required under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013

Your Company is committed towards providing a healthy environment and thus does not tolerate any discrimination and/
or harassment in any form. The Company has in place an Internal Complaints Committee to inter-alia prevent sexual
harassment at the workplace and redress the complaints in this regard. Disclosures under the section related to complaints
is provided in the Corporate Governance Report.

f. Disclosure under Vigil Mechanism

Disclosures under Vigil Mechanism are provided in the Corporate Governance Report.

g. During the year, no application made or any proceeding pending against the Company under the Insolvency and Bankruptcy
Code, 2016.

h. Details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while
taking loan from the Banks or Financial Institutions along with the reasons thereof: Not applicable as no such event occurred.

i. The Directors and Promoter group gave declaration that unsecured Short-term borrowing received is not being given out
of funds acquired by them by borrowing or accepting loans or deposits from others.

9. Acknowledgements

Your directors place on record their acknowledgement for the co-operation received from the Local, State and Central Government,
Shareholders, Customers, Vendors, Bankers, Associates, Collaborators, Employees of the Company and all other Stakeholders
without which it would not have been possible for the Company to achieve such performance and growth.

On behalf of Board of Directors
SAHYADRI INDUSTRIES LIMITED

Sd/- Sd/-

Jayesh P. Patel Satyen V. Patel

Chairman and Managing Director

Whole Time Director
(DIN: 00131517) (DIN: 00131344)

Date : 09^lh May, 2026
Place : Pune