Your Directors have pleasure in presenting 25^th (Twenty-fifth) Annual Report of the Company together with the Audited
Standalone & Consolidated Financial Statements for the Financial Year ended March 31, 2026.

FINANCIAL PERFORMANCE

The highlights of the financial performance of the Company for the Financial Year ended March 31, 2026 as compared to the
previous Financial Year are as under:

OVERVIEW AND OPERATIONAL REVIEW

The cement industry in India continued to witness stable
growth during the Financial Year 2025-26, supported
by sustained infrastructure development, urbanisation
and increased investments in housing and commercial
construction. Demand momentum remained largely driven by
government-led capital expenditure programmes, expansion
of transport infrastructure and ongoing urban and rural
development initiatives. Industry estimates indicate that
cement demand recorded mid-single-digit growth during the
year, reflecting resilient construction activity and improved
project execution across key regions.

The housing and infrastructure segments remained the
primary contributors to cement consumption, collectively
accounting for a substantial share of overall demand.
Continued focus on affordable housing, expansion of highways
and rail networks and growth in industrial and logistics
infrastructure supported steady volume expansion.

Financial Year 2025-26 also marked a phase of accelerated
capacity expansion across the industry. Major cement
manufacturers undertook both greenfield and brownfield
projects to enhance production capabilities and strengthen
regional presence. These investments reflect the industry's

confidence in long-term structural demand; however, the
increased capacity additions are expected to intensify
competitive dynamics and require disciplined pricing
strategies and efficient cost management going forward.

From a financial performance perspective, the sector
experienced an improvement in operating profitability
during the year, supported by relatively stable fuel prices,
optimisation of logistics costs and better realisations in
certain markets. Cement companies continued to focus
on operational efficiency through digitalisation, process
automation and increased adoption of renewable energy
sources to reduce energy costs and carbon footprint.
Sustainability initiatives, including the use of alternative
fuels and resource-efficient manufacturing practices,
gained further traction as the industry aligned with evolving
environmental expectations.

Policy support and regulatory developments continued
to play an important role in shaping industry sentiment.
Increased infrastructure spending and fiscal measures aimed
at improving ease of construction provided a favourable
operating environment. At the same time, the industry
remained mindful of potential challenges such as regional
supply-demand imbalances, freight cost volatility and
competitive pricing pressures arising from ongoing capacity
additions.

Overall, Financial Year 2025-26 represented a year of balanced
growth for the Indian cement sector, characterised by steady
demand expansion, continued consolidation amongst
leading players and strategic investments aimed at
strengthening long-term competitiveness. The medium-
to long-term outlook for the industry remains positive,
supported by structural drivers such as urbanisation,
infrastructure development and rising construction activity,
although prudent capital allocation and cost optimisation
will remain critical for sustaining profitability. During the year
under review, your Company has manufactured 24,54,924 MT.
of Cement Clinker as against 14,87,226 MT recorded during
the FY 2024-25. Company's subsidiary M/s. Star Cement
Meghalaya Limited has produced 14,06,856 MT. of Clinker as
against 16,35,763 MT. during the FY 2024-25. On a consolidated
basis total clinker production during the year was at 38,61,780
MT as against 31,22,989 MT during FY 2024-25. Your Company
recorded overall growth in its performance during the year.

In terms of capacity utilization, the clinkerization unit of your
Company was able to utilize 60% of its installed capacity
during the FY 2025-26 as against 36% during the FY 2024-25.
M/s. Star Cement Meghalaya Limited has utilized 70.34% of its
installed capacity during the FY 2025-26 as against more than
82% during FY 2024-25. On a consolidated basis clinkerization
units utilized 63% of its installed capacity during the FY 2025¬
26 as against 51% in FY 2024-25.

Your Company has been able to maintain the performance on
grinding front too. During the year under review, total cement
production on consolidated basis was at 52,15,439 MT. as
against 46,96,885 MT. during the FY 2024-25.

Similarly, your Company has been able to achieve sales volume
of 51,41,967 MT. of Cement as against 46,51,326 MT. during the
previous Financial Year.

UPCOMING/NEW PROJECTS

During the year, the Company's wholly owned subsidiary, Star
Cement North East Limited, successfully commissioned a
2 MTPA grinding unit in the Cachar area of Silchar district,
Assam, on February 20, 2026, taking the Company's total
grinding capacity to 9.7 MTPA. The railway siding work at
the Silchar grinding unit is progressing at a fast pace and
is expected to be operational by Q3 FY27, which will further
strengthen logistics efficiency and reduce transportation
costs.

Further, M/s Star Cement North East Limited, has been
declared as the preferred bidder for the limestone mine at
Parewar (SN-IV), District Jaisalmer, Rajasthan, with estimated
reserves of 271.38 million tonnes. This strategic resource
strengthens the Company's long-term raw material security
and supports its expansion into new markets.

M/s Star Cement North East Limited, has a strong pipeline of
expansion projects currently under implementation. A 2 MTPA
grinding unit in Bihar is planned as a natural extension of the
Siliguri grinding unit and is expected to be commissioned by
FY28, supported by attractive government incentives.

Backed by sufficient limestone reserves, the Company is well-
positioned to expand into North Indian markets. In Rajasthan,
the Company is developing a 3.3 MTPA clinker unit along with
a 2.5 MTPA grinding unit at Nimbol and a 2 MTPA grinding unit
at Jhajjar, Haryana. Both greenfield projects are expected
to be commissioned by FY28, significantly enhancing the
Company's production footprint.

In the Other Building Materials segment, the Company's
subsidiary, Star Smart Building Solutions Limited,
commissioned an 800 cubic meter Autoclaved Aerated
Concrete (AAC) block plant on June 2, 2025, at Chamata
Pathar, Sonapur, adjacent to the existing grinding unit near
Guwahati. This initiative marks the Company's diversification
into value-added construction materials. During the year,
the Company has also expanded its presence in value-
added construction chemicals, including Wall Putty, further
strengthening its integrated building materials portfolio
and complementing its core cement business. Additionally,
the Company has entered the Ready-Mix Concrete (RMC)
segment, with a strategic intent to scale up its presence in a
phased manner across key markets in the region.

INDIAN ECONOMY AND OUTLOOK - AT A GLANCE

During FY 2025-26, the Indian economy demonstrated
resilience and steady expansion amid evolving global
macroeconomic conditions. Supported by stable domestic
demand, continued public infrastructure investment and
improving private sector participation, India remained one of
the fastest-growing major economies in the world.

Real GDP growth for the year is estimated to have remained
robust, driven by strong performance in manufacturing,
construction and service sectors. Government-led
capital expenditure, particularly in roads, railways, urban
infrastructure, renewable energy and housing, continued to
stimulate economic activity and raise private investment.
The Production-Linked Incentive (PLI) schemes, emphasis
on "Make in India" and supply chain diversification further
strengthened the manufacturing ecosystem of the Country.

The construction and infrastructure sectors sustained growth
momentum during the year, supported by affordable housing
initiatives, urban development programs and industrial
corridor projects. Increased budgetary allocation towards
infrastructure development and logistics modernization
positively impacted demand for building materials and allied
products.

Inflation was lower than in previous years due to better
supply management and stable commodity prices. However,
changes in global energy and raw material prices continued to
create some challenges. The banking sector remained well-
capitalized, with healthy credit growth to industry, MSMEs
and retail segments continuously supporting economic
expansion.

India's external sector remained stable, with adequate
foreign exchange reserves and sustained services
exports contributing to macroeconomic stability. Policy
continuity, digital transformation initiatives and structural
reforms further enhanced the ease of doing business and
formalization of the economy.

Overall, the macroeconomic environment during FY 2025¬
26 remained conducive to growth, providing a positive
outlook for industries linked to infrastructure, housing and
manufacturing sectors. The Company continues to monitor
economic developments closely and remains well-positioned
to leverage emerging opportunities in the evolving economic
scene.

The continuing geopolitical tensions between the United
States and Iran have introduced a degree of uncertainty
into the global economic landscape and could have indirect
repercussions for the Indian economy as well as the cement
sector. Escalation of conflict in the Middle East, particularly
in strategic oil transit points such as the Strait of Hormuz, has
the effect of potential disruption in global energy markets and

pushed crude oil and gas prices upward impacting GDP of the
country.

Given India's substantial dependence on imported energy, a
sustained increase in oil and gas prices could lead to higher
fuel, transportation and logistics expenses. For the cement
industry, energy consumption and freight costs represent
a significant share of overall production and distribution
expenditure. Consequently, any rise in diesel and pet-coke
prices may exert pressure on operating margins and elevate
the cost of construction-related activities.

In addition, heightened inflationary trends arising from
higher energy prices could influence Government fiscal
priorities and curtailing infrastructure spending in the near
term. Nevertheless, strong domestic demand, continued
investments in infrastructure and steady growth in the
housing sector are expected to support the cement industry's
stability and growth prospects over the medium term.

CEMENT INDUSTRY OVERVIEW

India is the second-largest cement producer in the world,
accounting for over 8% of global installed capacity, with
an installed base of nearly 700 million tonnes per annum
(MTPA). Abundant limestone reserves concentrated in
states such as Andhra Pradesh, Rajasthan, Madhya Pradesh,
Chhattisgarh,Tamil Nadu and Karnataka underpin the sector's
long-term raw material security.

1.1    Production & Demand Dynamics

India's cement sector delivered robust volume growth
in FY26. Production volumes in FY26 (April-February)
rose 9.2% year-on-year to 443.2 million metric tonnes
(MMT). Full-year FY26 output is reached approximately
490 MMT, up from 453 MMT in FY25, representing 8-9%
growth. FY27 is forecast to sustain the momentum with
7-8% growth, underpinned by housing and infrastructure
demand.

1.2    Pricing & Profitability

Average cement prices rose approximately 2% year-on-
year to '345/bag in FY26 and are projected to increase
a further 2-4% in FY27, supported by healthy demand
and improved pricing discipline. ICRA estimates that
industry PBITDA/MT will rise to '900-950 in FY26, before
moderating to '820-870 per MT in FY27, reflecting
anticipated headwinds from fuel and freight cost
inflation.

1.3    Capacity Expansion Wave

The Indian cement industry is entering one of the most
significant capacity expansion cycles in its history.
CRISIL Ratings projects 150-160 MT of new capacity
between FY25 and FY28, building upon 119 MT added in
the preceding five years. ICRA estimates 43-45 MTPA

of capacity additions in FY26 alone. Indian cement
producers plan to invest approximately '1.25 lakh crore
(US$ 14.63 billion) between FY25 and FY27 to add around
130 MT of grinding capacity, representing approximately
20% above current levels. India's top producers are
expected to collectively invest nearly '1,20,000 crore
(US$ 13.53 billion) in capital expenditure between FY26
and FY28, nearly 50% higher than the prior three-year
period.

1.4    Policy & Infrastructure Tailwinds

The Union Budget 2026-27 allocates a record '12.2 lakh
crore (US$ 138.04 billion) towards capital expenditure,
channelling funds into roads, railways, urban
infrastructure and industrial corridors. The Ministry of
Road Transport and Highways alone received '3.09 lakh
crore (US$ 34.96 billion), an approximately 8% increase
over the previous year. Indian Railways approved projects
covering over 6,000 km with a total investment of '1.53
lakh crore (US$ 17.31 billion). Landmark projects such as
the Mumbai-Ahmedabad Bullet Train Corridor consume
approximately 20,000 cubic metres of cement daily,
equivalent to constructing eight 10-storey buildings
every day, while employing nearly 20,000 workers
continuously.

Flagship programmes driving sustained construction
demand include:

•    PM Gati Shakti - National Master Plan for
multimodal connectivity

•    PMAY-Urban 2.0 - Affordable urban housing at
scale

•    AMRUT & Smart Cities Mission - Urban
infrastructure for 98 smart cities

•    Bharatmala & Sagarmala - National highway and
port-led development

•    Jal Jeevan Mission - Rural water infrastructure
across India

•    National Infrastructure Pipeline (NIP) - '102 lakh
crore project pipeline over five years

1.5    Foreign Investment & Global Positioning

FDI inflows into cement and gypsum product
manufacturing reached '52,266.94 crore (US$ 6,181.05
million) between April 2000 and December 2025. Global
players have entered the Indian market, underscoring
the sector's long-term attractiveness. Indian cement
companies are increasingly recognised as among the
world's greenest cement manufacturers, positioning
them well as international sustainability standards
tighten.

1.6    Regional Capacity Distribution

South India accounts for the largest share of installed
capacity at approximately 32%, reflecting its proximity
to limestone deposits in Andhra Pradesh, Telangana,
Tamil Nadu and Karnataka. North and East India
each contribute approximately 20%, West India
approximately 15% and Central India approximately
13%. This regional distribution shapes logistical
strategies and underlies the competitive advantage of
regionally entrenched players such as Star Cement in
the East and North East.

1.7    Structural Industry Trends

Four structural shifts are reshaping the competitive
landscape and will define winners in this cycle:

•    Premiumisation: Rising quality awareness among
retail buyers is accelerating a shift from commodity
to blended and premium grade cements across
urban and peri-urban markets.

•    Green Cement & Net-Zero Commitments:
Sustainability mandates are elevating capex
requirements, incentivising investments in waste
heat recovery, alternative fuels and blended
cement technologies.

•    Logistics Cost Pressures: Diesel prices, rail freight
revisions and last-mile distribution costs remain
critical operating levers, particularly for regional
players with distributed market footprints.

•    Consolidation: Large-scale M&A is progressively
concentrating volumes with operationally efficient
players, raising the competitive bar for regional and
mid-tier manufacturers.

EAST & NORTHEAST SCENARIO - A TRANSFORMING
GROWTH FRONTIER

Eastern and North Eastern India represent the most
compelling medium-to-long-term growth frontier within
the Indian cement landscape. Historically under-penetrated
relative to their demographic weight and infrastructure
potential, these geographies are now undergoing a structural
shift powered by targeted Central and State Government
investment.

2.1 North East Region (NER)

The North Eastern Region's transformation is being
driven by an unprecedented pipeline of policy
initiatives and targeted investment programmes.
Rising urbanisation, increasing household incomes and
growing contractor and retail awareness are
accelerating the shift from commodity to premium

cement grades, directly benefiting established regional
brands.

•    NESIDS (North East Special Infrastructure
Development Scheme): '8,139 crore outlay
for 2023-26, supporting connectivity, social
infrastructure and state-specific priorities across
all eight North Eastern states.

•    UNNATI 2024: A 10-year development framework
with '10,037 crore allocated for industrial
acceleration, logistics modernisation and livelihood
creation across the region.

•    60 Amrit Railway Stations: Enhanced rail funding
and station redevelopment improving intra¬
regional and pan-India freight connectivity.

•    National Highway Expansion: Ongoing NH
expansion and multimodal logistics park
development across Assam, Meghalaya, Arunachal
Pradesh, Tripura, Manipur, Mizoram, Nagaland and
Sikkim.

•    Defence & Border Infrastructure: Accelerated
construction of roads, bridges and defence
installations along sensitive border areas.

•    Hydropower & Urban Development: Large
hydropower projects and urban modernisation
programmes generating incremental demand for
specialised construction solutions.

2.2 West Bengal

West Bengal remains the largest single cement market
in Eastern India, with estimated volumes exceeding 24
million tonnes and growing at approximately 5% year-
on-year. The state's demand profile is characterised
by a dual engine of robust retail housing construction
and    accelerating government-backed infrastructure

investment.

•    PMAY-Gramin: ' 6,859 crore in PMAY-G allocations
for West Bengal, targeting millions of incremental
dwelling units across peri-urban and rural districts.

•    Kalyani Expressway & Road Upgrades: Significant
capex committed towards Kalyani Expressway
modernisation and interconnected road network
improvements across the state.

•    Urban Infrastructure: Kolkata Metropolitan Area
and Tier-2 cities attract continued investment in
commercial, residential and utility construction.

•    Real Estate Recovery: A recovering real estate
cycle in key urban centres is expected to sustain
retail demand growth in the medium term.

2.3 Bihar

Bihar is emerging as one of the most dynamic cement
markets in India, with volumes exceeding 23 million
tonnes and growing at approximately 4% year-on-year.
The state's infrastructure investment pipeline is among
the most ambitious in the country, creating sustained
structural demand.

•    PMAY-G Allocation: Bihar has been assigned a
target of over 5 million housing units under PMAY-G,
one of the largest structural housing demand
drivers in any single state.

•    Patna-Arrah Corridor: A '3,712 crore major road
corridor project signalling large-scale urban and
peri-urban infrastructure investment.

•    PMGSY & MGNREGS: Rural road connectivity
programmes and employment schemes
channelling significant government expenditure
into construction activity.

•    Irrigation & Flood Control Infrastructure: Large-
scale water management and irrigation projects
generating sustained demand for bulk cement.

Market Development & Competitive Positioning

Star Cement Limited has consistently leveraged its first-
mover advantage, brand equity and distribution depth to
outperform the broader regional market. The Company's
performance in FY25 and evolving strategy through FY26
reflect deliberate investments in market penetration, product
premiumisation and channel partner engagement.

3.1    Volume Performance & Capacity

Star Cement recorded sales volumes of 5.14 million
tonnes in FY26, up from 4.65 million tonnes in FY25.
The Company is targeting accelerated volume growth
through its ongoing capacity expansion to 15 MTPA by
the close of FY29, providing the manufacturing scale
to service growing demand across NER, West Bengal,
Bihar and adjoining markets.

3.2    NER Market Leadership

Within the North East Region, Star Cement delivered
industry-leading volume growth of 11.4% in FY26
over FY25. The Company had a trade market share of
approximately 25% in FY26.

3.3    Premiumisation & Channel Strength

The Company has made significant strides in product
mix improvement and retail channel development
during FY26:

•    34% surge in premium cement sales, reflecting
successful brand repositioning and retailer

education programmes.

•    -1,800 new retail counters added, expanding the
touchpoint network across key district and block-
level markets.

•    1,860+ active dealers and 11,200+ RSARs, providing
unmatched last-mile reach across Eastern and
North Eastern India.

3.4    Digital Initiatives & Customer Engagement

Star Cement has invested meaningfully in digital tools
and customer-centric programmes to deepen channel
loyalty and market intelligence. The Star Saathi app-
based loyalty platform enhances engagement with
masons, contractors and retail partners.

3.5    Long-Term Demand Outlook

The Northeast regional market, sized at ~13 MMT and
growing at 8-10%, remains structurally underpenetrated,
with India's per capita cement consumption (290-340 kg)
still well below the global average of 470-520 kg - and
the North East lagging even the national mean - offering
substantial headroom for sustained volume expansion.
Star Cement, the largest manufacturer with the highest
market share in the North East, has expanded its North¬
East market share to ~25% and is scaling installed
cement capacity to 15 MTPA by the end of FY29.

Sustained Government capex under PM-DevINE and
other North East-focused infrastructure programmes,
improving rural incomes, accelerating urbanisation, and
the Company's strengthening geographic footprint into
adjacent East India markets (West Bengal and Bihar)
position Star Cement to deliver above-industry volume
growth through this cycle.

Star Cement Limited has strategically expanded
its product portfolio under its subsidiary beyond
traditional cement through the launch of Star Smart
Building Solutions (SBS), a comprehensive initiative
encompassing Autoclaved Aerated Concrete (AAC)
Blocks, Construction Chemicals, and Ready-Mix
Concrete (RMC).

Star Cement's SBS division was formally inaugurated in
June 2025, with the first dispatch of Star AAC Blocks
and Star Block Jointing Mortar from the Sonapur
manufacturing facility (Assam).

The SBS business model is not merely a commercial
diversification, it is a climate-aligned transition strategy
that positions Star Cement as a one-stop, sustainable
construction solutions provider for Northeast India and
beyond.

During FY 2025-26, we continued with the re-positioning
campaign 'Har Ghar Mein Star' to connect emotionally

with the people of North East and rightly so since this
is the only brand which has walked hand in hand & stood
with the people of North East for the last 20 years. Star
Cement is truly the son of the soil of North East which
understands what it takes to stand strong in tough
terrains & challenging weather conditions helping people
to realise their dream of building their dream home.

It is this brand story that led to the launch of the campaign
"Har Ghar Mein Star" with brand ambassadors featuring
Olympic Medallist & Weightlifter, Saikhom Mirabai
Chanu, Riyan Parag the first Indian international team
cricketer from North East, Olympian Ace boxer Lovelina
Borghoain & Star Indian Footballer and former National
Football Captain Baichung Bhutia whose journey is one
of grit, strength & unshakable foundations-just like Star
Cement. Signing of Sponsorship Agreement with All
India Football Federation is a remarkable event for the
Company.

Recognizing the efficiency and eminence of these
campaigns Star Cement was selected amongst the top
brands across cement and non-cement sectors and
awarded with the prestigious "Marketing Team of the
Year Award" by Economic Times Shark Awards.

The 'Har Ghar Mein Star' TVC was promoted through TV
advertisements, cable and Digital campaign through
Facebook, Instagram & YouTube and garner News
Coverage through press releases. We also initiated retail
branding with Signage, Inshop branding, Shop Painting
etc. to increase visibility in all our retail counters. We
also continued with the promotion of Star Weather
Shield the super-premium cement & Star Dhalai Master
the premium cement though TV ads, Cable ad & digital
campaigns in all our Social Media platforms.

PRODUCTION AND COST DEVELOPMENTS

Fly Ash

Blended cement continues to be a sustainable alternative
to Ordinary Portland Cement (OPC) due to its lower carbon
footprint and superior environmental performance. The use of
fly ash, a by-product of thermal power generation, as a partial
replacement for clinker helps reduce carbon emissions, lower
energy consumption, and conserve natural resources such
as limestone and coal. This supports resource efficiency,
promotes circular economy principles, and reinforces the
Company's commitment to sustainable manufacturing.

During the year under review, the Company continued to
focus on the production of environmentally friendly blended
cement, which remained a significant proportion of its overall
cement production. The Company remains committed to
further increasing the share of blended cement as part of its
long-term sustainability strategy.

On the procurement front, the Company continued to
optimise fly ash sourcing through a balanced mix of dry and
conditioned fly ash while rationalising sourcing distances to
improve operational efficiency and reduce logistics costs.
Competitive procurement costs were maintained through
efficient supply chain management, long-term sourcing
arrangements, and continued benefits from favourable
railway freight policies.

Logistics & Freight

Your Company successfully navigated market challenges to
ensure uninterrupted supply while maintaining strict control
over logistics costs.

Logistics cost efficiency was further strengthened during the
year through sustained focus on core initiatives such as daily
and monthly e-bidding, PTPK outlier correction mechanisms,
and deeper execution of Wheeler-wise and Segment-
wise freight strategies. These efforts helped optimise the
weighted average lead distance, which reduced from 225 km
to 221 km, while the rail coefficient improved significantly
from 6% to 12%, reflecting a meaningful shift towards more
cost-efficient and sustainable modes of transportation.

In a landmark development, the Company executed its first-
ever cement barge dispatch via Hatsingimari in August 2025,
marking a strategic step towards leveraging inland waterways
for multi-modal logistics and unlocking new dispatch
corridors.

Reaffirming its commitment to efficient and timely delivery,
the Company continued to deploy bulk cement carriers
(Bulkers) to serve institutional customers with reliable,
efficient and dust-free delivery solutions.

As part of the Company's digital transformation agenda,
100% cashless operations were rolled out for all fleet drivers,
improving transparency, financial discipline and overall driver
experience. The continued deployment of 274 16-wheelers
for clinker transportation from Lumshnong to the Guwahati
Grinding Units (GGU) played a pivotal role in keeping freight
costs under control throughout the year, while ensuring
uninterrupted raw material availability across all operating
months.

Power cost

The Company continued to source power for its integrated
cement plant at Lumshnong from its wholly owned subsidiary,
M/s Star Cement Meghalaya Limited, under a long-term
arrangement, ensuring a reliable, cost-effective, and
uninterrupted supply of quality power.

In addition, the Company optimised its power procurement
strategy by sourcing electricity through the Indian Energy
Exchange (IEX) across different market segments, including
the Day-Ahead Market (DAM), Real-Time Market (RTM), and

Green Day-Ahead Market (GDAM), whenever commercially
advantageous. This open access procurement enabled
the Company to source power at significantly lower costs
compared to the prevailing DISCOM tariff, thereby reducing
overall power procurement costs, mitigating the impact
of fluctuations in conventional fuel prices, and enhancing
operational cost efficiency.

Aligned with its sustainability objectives and regulatory
requirements, the Company increased the procurement of
renewable energy through the Green Day-Ahead Market (GDAM)
of IEX and purchased Renewable Energy Certificate (REC)
attributes to meet its Renewable Purchase Obligation (RPO)
and Renewable Consumption Obligation (RCO) compliance
requirements. These initiatives helped the Company
achieve a renewable energy usage of approximately 33-35%,
reinforcing its commitment towards sustainability, reducing
carbon emissions, and supporting India's clean energy
transition. The enhanced utilisation of biomass and bamboo
as alternative fuels also contributed to reducing dependence
on conventional fossil fuels and lowering greenhouse gas
emissions.

The Company continued to derive operational and cost
benefits from the Waste Heat Recovery Boiler (WHRB) system
at its integrated cement plant, resulting in higher captive
power generation and reduced reliance on external power
sources.

Further, the long-term Fuel Supply Agreement (FSA) with
Coal India Limited continued to ensure stable coal availability
for clinker operations, strengthening energy security and
operational reliability.

Collectively, these initiatives have improved the Company's
energy efficiency, strengthened cost competitiveness,
enhanced supply security, ensured compliance with evolving
renewable energy regulations, and supported its long-term
commitment to sustainable and environmentally responsible
manufacturing.

DIVIDEND

In the Financial Year 2025-26 your Company has declared and
distributed the following interim dividends:

The Board of Directors of your company, after considering
holistically the relevant circumstances has decided that it
would be prudent not to recommend any final dividend for the
FY 2025-26 (P.Y.:NIL).

KEY PERFORMANCE HIGHLIGHTS

•    Consolidated cement production was at 52.15 Lakhs MT.
during the year under review as against 46.97 Lakhs MT.
during the previous Financial Year.

•    Consolidated net sales at ' 3587.11 Crores during the
year under review as compared to ' 2987.80 Crores
during the previous Financial Year.

•    Consolidated EBITDA was at ' 955.21 Crores during the
year under review as compared to ' 589.21 Crores during
the previous Financial Year before exceptional items.

•    Consolidated profit before tax during the year under
review was at ' 532.30 Crores as against a profit of
' 225.67 Crores previous Financial Year.

•    Consolidated Exceptional items during the year under
review was ' 11.32 Crores as against NIL recorded in
previous Financial Year.

OPPORTUNITIES & THREATS, RISKS AND CONCERNS

Star Cement has established itself as a market leader in
the north east region through a strong dealer network that
ensures deep market penetration and efficient distribution.
The Company's aggressive marketing strategies and
consistent branding efforts have significantly enhanced its
visibility and customer trust, strengthening its competitive
position. Additionally, its ongoing expansion plans and new
project developments are expected to further consolidate
its market presence by increasing production capacity and
improving supply capabilities. The Company also benefited
from strategic locational advantages, enabling it to procure
raw materials at affordable prices, reduce transportation
costs and maintain cost-efficient operations.

Opportunities:

(a)    Growing infrastructure demand in India, driven
by major government initiatives such as Smart
Cities Mission, Pradhan Mantri Awas Yojana (PMAY)
and increased investments in road, rail and port
development, are significantly boosting the demand
for cement. The National Infrastructure Pipeline (NIP)
and the "Make in India" initiative have further created
a wide range of growth opportunities for the cement
industry. Additionally, the rising adoption of green
cement technologies and low-carbon manufacturing
processes presents significant potential for innovation,
sustainability and market leadership within the sector.

(b)    Rising population and affordable housing initiatives

boost consumption of cement.

(c)    Demand for low-carbon cement, alternative fuels and
eco-friendly technologies are increasing.

(d)    Higher Central budget allocations for roads, railways and
industrial expansion fuel growth of the industry.

(e)    Rapid Growth in rural infrastructure, warehousing and
small-town leads to increase in demand of cement.

Threats:

(a)    Cement and power industry is dependent on availability
of raw materials at affordable prices.

(b)    The price volatility of coal, oil, pet coke, gypsum and
limestone poses a threat to profitability of cement and
power industry. Stricter environmental compliances and
emission norms increasing manufacturing costs which
may require significant capital investments.

(c)    The ongoing USA-Iran conflict has sharply increased
global oil prices due to supply disruptions, especially
around key routes like the Strait of Hormuz creating
an energy shock across industries. For the cement
industry, this poses a major threat as fuel costs and
transportation expenses may rise significantly, leading
to margin pressure. If the situation persists, it may
reduce demand and profitability and may cause threat
to smaller cement players

(d)    The Indian cement industry is highly competitive,
with many large and regional players leading to pricing
pressure and tight margins. Its demand is closely tied
to construction and infrastructure, making it vulnerable
to economic slowdowns and disruptions like global
recessions, geopolitical tensions, or supply chain issues.

(e)    The cement industry must adopt sustainable and
advanced technologies to stay competitive in a rapidly
evolving market. Embracing alternative fuels, carbon
capture, digitalization, lower emissions and stricter
environmental compliance are essential for improving
efficiency. Companies that integrate these innovations
will gain a competitive edge, enhance sustainability and
strengthen long-term market position.

Risks & Concerns:

Cement manufacturing is energy-intensive industries and
therefore remain highly vulnerable to fluctuations in fuel and
energy prices, which can significantly impact production costs
and profitability. High logistics and transportation expenses,
particularly in a geographically vast country like India, further
affect the bottom line. Changes in foreign trade policies may
also influence domestic competitiveness by altering import-
export dynamics. Additionally, disruptions caused by extreme
weather conditions or natural disasters can adversely affect

supply chains and production facilities, leading to operational
and financial risks.

(a)    Cement production is a significant contributor to
CO₂ emissions and the growing pressure to achieve
climate targets has intensified sustainability concerns.
Additionally, any major changes in environmental and
forest regulations may affect coal availability for the
industry.

(b)    The industry is highly capital-intensive, requiring
substantial investments for capacity expansion,
modernization and compliance with evolving
sustainability standards.

(c)    Disparities in infrastructure development and housing
demand across States may result in underutilization of
capacities in certain regions.

(d)    Although dominated by few large players, the presence of
numerous small-scale operators creates a fragmented
market leading to inconsistencies in quality and pricing.

(e)    The industry's growth is closely linked to Government
policies and infrastructure spending, making it
susceptible to fiscal constraints. Addressing these
risks through sustainable practices, innovation and
regulatory compliances are essential for the long-term
viability and sustainability of the cement industry.

The Company has established a robust Risk Management
Framework for the identification, assessment, monitoring
and mitigation of various risks to ensure sustainable growth
and business continuity. The framework enables the Company
to proactively identify strategic, operational, financial,
regulatory and other emerging risks and to implement
appropriate mitigation measures. The Board of Directors
has constituted a Risk Management Committee to oversee
the risk management process, review the effectiveness of
risk mitigation plans and advise management on risk-related
matters. The Board periodically reviews the risk management
framework of the Company.

SHARE CAPITAL

The paid up Equity Share Capital of the Company as on March
31, 2026 was '40,41,80,417 divided into 40,41,80,417 equity
shares of '1 each. During the year under review, the Company
has neither issued any shares with differential voting rights
nor granted stock options or sweat equity shares.

SHARES IN SUSPENSE ACCOUNT

Disclosures of the shares lying in Company's Unclaimed
Shares Suspense Account are given in the Report of
Corporate Governance.

INVESTOR EDUCATION AND PROTECTION FUND

During the year under review, pursuant to the directions
issued by the Investor Education & Protection Fund Authority
(IEPFA), the Company initiated the '100 days campaign'
'Saksham Niveshak'. As part of this initiative, communications
were sent to the shareholders at their last known addresses,
encouraging them to claim their unclaimed dividend and the
underlying shares before the same are transferred to the
Investor Education & Protection Fund Account. The Company
has also published a newspaper advertisement in this regard
and all the communications pertaining to the aforesaid
campaign were duly intimated to the Stock Exchanges. The
Company has also submitted the progress report as per the
timelines mentioned in the above directions to the IEPFA.

As per Companies Act, 2013 dividends that are unclaimed/
unpaid for a period of seven (7) years from the date of their
transfer are required to be transferred to the Investor
Education and Protection Fund ('IEPF') administered by the
Central Government.

The tentative date for transfer of unclaimed and unpaid
dividends to the IEPF, declared by the Company are as under:

Members who have not encashed their dividend so far in
respect of the aforesaid periods are requested to make
their claims to Maheshwari Datamatics Private Limited,
Registrar and Share Transfer Agent of the Company ('RTA') or
to the Company Secretary of the Company, at the Company's
Registered Office/ Corporate Office, well in advance of
the above due dates. Pursuant to the provisions of IEPF
Authority (IEPF) (Accounting, Audit, Transfer and Refund)
Rules, 2016 ('IEPF Rules'), the Company has uploaded the
details of unpaid and unclaimed amounts lying with the
Company as on September 23, 2025 (date of the last AGM) on
the website of the Company at www.starcement.co.in and
also on the website of the Ministry of Corporate Affairs at
www.mca.gov.in.

Further, pursuant to the provisions of Section 124 of the
Act, read with the relevant Rules made thereunder, shares
on which dividend has not been paid or claimed for seven (7)
consecutive years or more shall be transferred to the IEPF
Authority as notified by the Ministry of Corporate Affairs.
Accordingly, Dividend declared for the FY 2017-18 which
was unpaid for Seven (7) consecutive years aggregating to
' 4,61,716 in respect of which dividend entitlements were

not paid or claimed for seven (7) consecutive years or more
have been transferred by the Company to the IEPF on 20^th
September, 2025, after following the required provisions of
Rules. Further, 53,215 equity shares of the Company were
transferred to the IEPF Authority on 31^st October, 2025 & 5^th
November, 2025 respectively. The details are available on the
website of the Company at www.starcement.co.in

The shareholders whose dividend/Fractional shares amount/
shares have been/ will be transferred to the IEPF Authority may
claim the shares or apply for refund by making an application
to the IEPF Authority by following the procedure as detailed
in the IEPF Rules and as enumerated on the website of IEPF
Authority at https://www.iepf.gov.in

ANNUAL RETURN

In terms of requirement of Section 134(3) (a) read with Section
92(3) of the Companies Act, 2013, the Annual Return of the
Company has been placed on the Company's website and can
be accessed at the web link: https://www.starcement.co.in/
pdf/investor-information/Annual-Return-2025-26.pdf

MEETINGS OF THE BOARD

During the year five (5) Board Meetings were convened and
held on 21^st May, 2025, 08^th August, 2025, 14^th October, 2025,
4^th November, 2025 and 06^th February, 2026 and the four (4)
Audit Committee meetings were held on 21^st May, 2025, 08^th
August, 2025, 4^th November, 2025 and 06^th February, 2026
respectively. The intervening gap between the Meetings was
within the period prescribed under the Companies Act, 2013
and SEBI (LODR) Regulations, 2015. The details of the Board
meeting and the Committee meeting are provided in the
Corporate Governance Report.

MEETING OF INDEPENDENT DIRECTORS

During the year under review, a meeting of Independent
Directors was held on 25^th March, 2026 wherein the
performance of the Non-Independent Directors and the Board
as a whole, its committees were reviewed. The Independent
Directors at their meeting also inter alia assessed the quality,
quantity and timeliness of flow of information between the
Company's management and the Board of Directors of the
Company.

COMMITTEES OF THE BOARD

The composition and terms of reference of the Audit
Committee, Nomination and Remuneration Committee,
Corporate Social Responsibility Committee, Stakeholders
Relationship Committee, Risk Management Committee and
Finance Committee have been furnished in the Corporate
Governance Report forming part of this Annual Report. There
has been no instance where the Board has not accepted the
recommendations of the Audit Committee and Nomination
and Remuneration Committee.

WHISTLE BLOWER POLICY/ VIGIL MECHANISM

The Company has a Whistle Blower Policy/ Vigil Mechanism
as required under Section 177 of the Companies Act, 2013
and as per Listing Obligations and Disclosures Requirements
Regulations, 2015 formulated by Securities and Exchange
Board of India (SEBI). The Vigil (Whistle Blower) mechanism
provides a channel to the employees and Directors to report
to the management, concerns about unethical behavior,
actual or suspected fraud or violation of the Code of Conduct
or policy. The mechanism provides for adequate safeguards
against victimization of employees and Directors to avail the
mechanism and also provide for direct access to the Chairman
of the Audit Committee in exceptional cases. The said policy
may be referred to at the Company's website at the web link:
https://www.starcement.co.in/pdf/investor-information/
VigilMechanism.pdf

POLICY ON APPOINTMENT AND REMUNERATION OF
DIRECTORS, KEY MANAGERIAL PERSONNEL AND
SENIOR MANAGEMENT EMPLOYEES

The Board has framed a Remuneration Policy for selection,
appointment and remuneration of Directors, Key Managerial
Personnel and Senior Management Employees. The
remuneration policy aims to enable the Company to attract,
retain and motivate highly qualified members for the Board
and at other executive levels. The remuneration policy
seeks to enable the Company to provide a well-balanced
and performance-related compensation package, taking
into account shareholder interests, industry standards and
relevant Indian corporate regulations. The details on the same
are given in the Corporate Governance Report. The said policy
may be referred to at the Company's website at the web link:
https://www.starcement.co.in/pdf/investor-information/
RemunerationPolicy.pdf

DIVIDEND DISTRIBUTION POLICY

In terms of Regulation 43A of the Listing Regulations, your
Board has framed and adopted a Dividend Distribution Policy.
The object of the policy is to sharing profit of the Company
with the shareholders appropriately and also to ensure funds
are available for the growth of the Company. The policy
inter-alia describes the circumstances under which the
shareholders may or may not expect dividend, the financial
parameters that shall be considered while declaring dividend,
internal and external factors that shall be considered for
declaration of dividend, policy for utilization of retained
earnings and the parameters with respect to different
classes of shares for the purpose of declaration of dividend.
The said policy may be referred to at the Company's website
at the web link: https://www.starcement.co.in/pdf/investor-
information/DividendDistributionPolicy.pdf

CODE OF CONDUCT

With intent to enhance integrity, ethics & transparency in
governance of the Company your Company had adopted
a Code of Conduct for Directors and Senior Management
Personnel. The Code has been displayed on the Company's
website at https://www.starcement.co.in/pdf/investor-
information/SeniorMangementCodeofConductPolicy.pdf

COMPLIANCE WITH THE SECRETARIAL STANDARDS
AND INDIAN ACCOUNTING STANDARDS (IND AS)

The Company has complied with the applicable Secretarial
Standards as recommended by the Institute of Company
Secretaries of India. The Company has also complied with all
relevant Indian Accounting Standards (IND AS) referred to in
Section 133 of the Companies Act, 2013 read with Companies
(Indian Accounting Standards) Rules, 2015 while preparing the
financial statements.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to requirement of Section 134(3) (c) read with
Section 134 (5) of the Companies Act, 2013, the Directors
hereby confirm and state that:

•    In the preparation of Annual Accounts, the applicable
Accounting Standards have been followed along with
the proper explanation relating to material departures, if
any;

•    The Directors have selected such accounting policies
and have 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 as at 31^st March, 2026 and of the profit of the
Company for the year under review;

•    The Directors 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;

•    The Directors have prepared the annual accounts on
going concern basis;

•    The Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws
and that such systems were adequate and operating
effectively.

•    The Directors have laid down internal financial controls
to be followed by the Company and that such internal
financial controls are adequate and were operating
effectively.

AUDITORS & AUDITORS' REPORT
Statutory Auditors

M/s. Singhi & Co., Chartered Accountants (Firm Registration
Number: 302049E), Statutory Auditors of the Company was
appointed by the members at the Twenty-First Annual General
Meeting of the Company held on 27^th September, 2022 and
shall hold office for a period of 5 years from the date of such
meeting.

The Board of Directors of the Company, in compliance with
the Circular dated 7^th January, 2026 issued by the National
Financial Reporting Authority (NFRA), and with a view to
ensuring effective, timely, transparent and well-documented
communication between the Statutory Auditors and the
Company, has constituted a Committee titled "Those Charged
with Governance" (TCWG). The TCWG shall, inter alia, facilitate
structured interaction and communication with the Statutory
Auditors in accordance with the aforesaid NFRA Circular and
shall meet at least twice in a Financial Year to discharge its
roles and responsibilities as prescribed therein.

The Statutory Auditors' Report "with an unmodified
opinion", given by M/s. Singhi & Co., on the Standalone and
Consolidated Financial Statements of the Company for the
Financial Year ended 31^st March, 2026, is appended in the
Financial Statements forming part of this Annual Report.

The notes to the accounts referred to in the Auditors' Report
are self-explanatory and, therefore, do not call for any further
comments.

Cost Auditors

Pursuant to Section 148 of the Companies Act, 2013 read with
the Companies (Cost Records and Audit) Amendment Rules,
2014, the cost audit records maintained by the Company
in respect of its manufacturing activity is required to be
audited. Your Directors have, on the recommendation of the
Audit Committee, appointed M/s B. G. Chowdhury & Co., Cost
Accountants, (Firm Registration Number: 000064) as Cost
Auditors of the Company for the Financial Year ended 31^st
March, 2026 in the Board Meeting held on 21^st May, 2025. The
remuneration proposed to be paid to them for the FY 2025¬
26, as recommended by audit committee, was ratified in the
meeting of shareholders held on 23^rd September, 2025.

M/s B. G. Chowdhury & Co., Cost Accountants, (Firm
Registration Number: 000064) have expressed their
willingness to be re-appointed as Cost Auditors of the
Company for ensuing Financial Year. The Board, on
recommendation of the audit committee has re-appointed
M/s. B. G. Chowdhury & Co., Cost Accountants, as Cost
Auditors of the Company for the FY 2026-27 subject to
ratification of their remuneration by shareholders in the
General Meeting of the Company.

As per provisions of the Companies Act, 2013, the
remuneration payable to the Cost Auditors is placed before
the Members in a General Meeting for their ratification.
Accordingly, a Resolution seeking Members' ratification for
the remuneration payable to M/s. B. G. Chowdhury & Co.,
Cost Auditors for the FY 2026-27 is included in the Notice
convening the Annual General Meeting.

The Cost Audit report for the FY 2024-25 was filed with the
Ministry of Corporate Affairs on 7^th September, 2025.

Secretarial Auditors

M/s. MKB & Associates, a firm of Practising Company
Secretaries, (Firm Registration Number : P2010WB042700),
Secretarial Auditors of the Company was appointed by the
members at the Twenty-Fourth Annual General Meeting of the
Company held on 23^rd September, 2025 and shall hold office
for a period of 5 years from the date of such meeting.

The Secretarial Audit Report for the FY 2025-26 is annexed
herewith and marked as Annexure - 1 . The report is self¬
explanatory and do not call for any further comments.

In terms of Regulation 24A of Listing Regulations, Star
Cement Meghalaya Limited & Star Cement North East
Limited, material subsidiaries are under secretarial audit
and report submitted by the Secretarial Auditors for the FY
2025-26 are annexed herewith and marked as Annexure - 1A
& Annexure -1B. The reports are self-explanatory and do not
call for any further comments.

REPORTING OF FRAUD

The Auditors of the Company have not reported any fraud as
specified under section 143(12) of the Companies Act, 2013.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY
REPORT

As required under Regulation 34 of Listing Regulations 2015,
the Business Responsibility and Sustainability Report of
the Company for the Financial Year ended March 31, 2026 is
attached as part of the Annual Report.

PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS

During the year under review, your Company has not made any
investment or provided guarantee or security in connection
with a loan to any person exceeding the limit specified in
Section 186 of the Companies Act, 2013.

Details of Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are
given in notes to the financial statements.

RELATED PARTY TRANSACTIONS

All related party transactions are entered on arm's length
basis, in the ordinary course of business and are in compliance

with the applicable provisions of the Companies Act, 2013.
There are no materially significant related party transactions
made by the Company with Promoters, Directors, Key
Managerial Personnel or other Designated Persons which may
have a potential conflict with the interest of the Company
at large. In terms of Section 134 of the Act read with Rule 8
of the Companies (Accounts) Rules, 2014, the particulars of
the material contract or arrangement entered into by the
Company with related parties as referred to in Section 188 in
form AOC-2 is attached herewith and marked as Annexure - 2
of this report. However, the details of the transactions with
the Related Party are provided in the Company's financial
statements in accordance with the Indian Accounting
Standards.

All Related Party Transactions are presented before the
meeting of Audit Committee and the Board. Omnibus
approval is obtained for the transactions which are foreseen
and repetitive in nature The details as required under the
applicable Industry Standards and requirements were placed
before the Audit Committee and Board . A statement of all
related party transactions is presented before the Audit
Committee on a quarterly basis, specifying the nature, value
and terms and conditions of the transactions.

A policy on 'Related Party Transactions' has been devised
by the Company which may be referred to at the Company's
website at the weblink: https://www.starcement.co.in/pdf/
investor-information/RelatedPartyTransactionsPolicy.pdf

RESERVES

During the year under review no amount was transferred to
reserves.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy, technology
absorption and foreign exchange earnings and outgo as
stipulated in section 134(3) (m) of the Act and rules framed
there under is mentioned below:

(A) Conservation of Energy

(i) Steps taken / impact on conservation of energy

The Company remains committed to sustainable and
energy-efficient operations. During FY 2025-26, the
following initiatives were undertaken:

• Stabilization    of    Waste    Heat

Recovery System (WHRS) (12 MW):

The 12 MW WHRS was successfully stabilized,
achieving an average generation of ~9.2 MW by
utilizing waste heat from kiln and clinker cooler
gases. This resulted in significant reduction in
dependence on grid power, lowering energy costs
and carbon emissions.

•    Optimization of Cement Mill & Packing Plant
Motors: Replaced four underloaded motors with
optimally rated motors, reducing system losses and
improving operating efficiency. Estimated energy
savings: ~20 kWh per hour.

•    Installation of EV Charging Infrastructure:

Commissioned two EV charging stations to support
a fleet of five electric vehicles deployed in mining
operations, contributing to reduced fossil fuel
consumption and improved sustainability.

•    Installation of Variable Frequency Drives (VFDs):

Implemented VFDs across compressors and key
process equipment, resulting in energy savings of
approximately 68 kWh per hour through optimized
load control.

•    Power Factor Optimization: Maintained power
factor in the range of 0.9934 to 0.9968 throughout
the year by optimizing APFC systems, resulting in a
power factor rebate of '1.62 crore during FY 2025¬
26.

•    Process    Optimization    Measures:

Eliminated redundant equipment loads and
optimized system configuration, leading to
reduction in connected load and overall energy
consumption.

•    Conveyor Circuit Optimization: Installation of
a bypass system improved mill availability and
reduced specific energy consumption.

(ii)    Steps taken for utilisation of alternate sources of
energy

•    Power generation through WHRS utilizing waste
heat from process operations.

•    Commissioning of Alternative Fuel and Raw Material
(AFR) shredding and feeding system, enabling
partial substitution of fossil fuels.

We are pleased to announce that during the FY 2025¬
26 Renewable Energy Certificates (REC) was procured
towards compliance with Renewable Purchase
Obligations (RPO) and sustainability commitments: 7,372
MWh

(iii)    Capital investment on energy conservation equipment

Investments undertaken in WHRS, VFD installations, and
AFR systems.

(B) Technology Absorption

(i) Efforts made towards technology absorption

•    Clinker Line Debottlenecking and Stabilization:

The clinker production line (rated at 7,500 TPD)
was successfully debottlenecked and stabilized at

~8,200 TPD, resulting in improved productivity and
reduction in specific electrical and thermal energy
consumption.

•    Energy Management System (EMS): Implemented
EMS for real-time monitoring, analysis, and
optimization of power consumption.

•    Calciner &    Preheater Optimization: Modified

calciner fuel firing system and installed blasters
in preheater    M-duct,    improving kiln reliability,

reducing blockages,    and enhancing thermal

efficiency.

•    Compressed    Air    System Improvement:

Installation of air dryer enhanced system efficiency
and reliability.

•    Installation of XRD in Laboratory: Installed a new
X-Ray Diffraction (XRD) system in the laboratory to
enhance quality control and improve reliability of
raw material and clinker analysis.

•    Packer Bag Counter Integration: Display installed
and integrated with PLC/SCADA for real-time
dispatch monitoring.

(ii)    Benefits derived

•    Reduction in specific energy consumption
(electrical and thermal).

•    Improvement in process efficiency and operational
reliability.

(iii)    Imported Technology : Not applicable

(iv)    Expenditure on Research & Development

The Company has developed a Research & Development
(R&D) cell for carrying out R&D Projects in the plant with
specific objective of development of advanced systems
for quality improvement. During the year under review,
your Company incurred Capital expenditure of ' 191.41
Lakhs (P.Y. ' 186.97 Lakhs) in R&D and No Revenue
Expenditure was incurred.

(C) Foreign Exchange Earnings And Outgo:

During the period under review, Foreign Exchange
Earning was NIL (PY - NIL) and the Foreign Exchange
Outgo was ' 7,931.94 Lakhs (PY ' 789.05 Lakhs).

CORPORATE SOCIAL RESPONSIBILITY (CSR)
INITIATIVES

Star Cement Ltd has consistently remained at the forefront
of Corporate Social Responsibility (CSR) initiatives across
the North-Eastern and Eastern regions of India. Since its
inception, the Company has pursued a well-structured CSR
framework focused on need-based, sustainable and inclusive
development of communities in and around its operational

areas. Guided by this philosophy, the Company continues
to undertake and support a wide range of community
development initiatives covering healthcare and sanitation,
education, livelihood generation and skill development,
environmental sustainability and biodiversity conservation,
rural infrastructure development, and emergency response
activities. During FY 2025-26, these initiatives were further
strengthened with a focus on enhancing the quality of life
and fostering the socio-economic upliftment of communities
residing in the vicinity of the Company's plant locations.

Your Company has consistently been at the forefront of social
welfare and community development initiatives, undertaking
meaningful programmes aimed at the holistic upliftment of
society. In its endeavour to create sustainable long-term value
for stakeholders, the Company remains deeply committed to
safeguarding the interests of and responding to the needs
of its key stakeholders, particularly communities belonging
to socially and economically disadvantaged sections of
society, including women, children, senior citizens and other
underprivileged and marginalized groups.

Importantly, the Company's CSR initiatives extend far beyond
the fulfilment of statutory obligations. This is reflected in the
Company's approach of not carrying forward or setting off
excess CSR expenditure incurred in previous years against
future CSR obligations. Such an approach reaffirms the
Company's steadfast commitment towards fostering inclusive
and sustainable socio-economic development, driven by a
genuine sense of responsibility towards society rather than
mere regulatory compliance.

Pursuant to Section 135 of the Companies Act, 2013 read
with Schedule VII thereof and Rules made thereunder, your
Company's social responsibility policy is offering number of
community welfare services in the field of Health, sanitation,
Education, Livelihood & skill building, Environment
and Biodiversity, Rural infrastructure development and
emergency response etc., for the local inhabitants of plant
operational areas to improve the quality and standard of
living. Your Company undertook various activities during the
FY 2025-26 under review in line with its CSR Policy.

The composition of CSR Committee of your Company,
attendance at the said Meeting, terms of reference of the CSR
Committee and other relevant details have been provided
in the Corporate Governance Report forming part of the
Annual Report. The CSR Committee has confirmed that the
implementation and monitoring of CSR Policy is in conformity
with CSR objectives and policy of the Company and in
compliance with Section 135 of the Companies Act, 2013.

Your Company's Policy on Corporate Social Responsibility
can be accessed on the Company's website at https://www.
starcement.co.in/pdf/investor-information/CSRPolicy.pdf

Annual Report on CSR as required to be annexed in terms
of requirement of Section 135 of Companies Act, 2013 and
rules framed thereunder is annexed herewith and marked as
Annexure - 3.

EVALUATION OF THE BOARD'S PERFORMANCE

In accordance with the requirements of the Companies Act
2013, the performance evaluation of the Board was carried
out during the year under review. The Board follows a formal
mechanism for the evaluation of the performance of the
Board as well as Committee. The evaluation reflected the
overall engagement of the Board and the Committee.

A structured questionnaire was prepared after taking into
consideration inputs received from the Directors, covering
various aspects of the Board's functioning such as adequacy
of the composition of the Board and its Committees, Board
culture, execution and performance of specific duties,
obligations and governance etc.

The Nomination and Remuneration Committee at its
meeting established the criteria based on which the Board
evaluate the performance of the Directors.

A separate exercise was carried out to evaluate the
performance of individual Directors including the Chairman
of the Board, on parameters such as level of engagement
and contribution, independence of judgment, safeguarding
the interest of the Company and its minority shareholders,
etc. The performance evaluation of the Non-Independent
Directors and Board as a whole was also carried out by the
Independent Directors.

The Directors had expressed their satisfaction over the
evaluation process and results thereof.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

The tenure of Mr. Vivek Chawla and Mr. Jagdish Chandra
Toshniwal, Independent Directors of the Company were
due to expire on 31^st March, 2026 and Mr. Ramit Budhraja,
Independent Director was due to expire on 30^th April, 2026.
On the recommendation of Nomination & Remuneration
Committee, the Board at its meeting held on 08^th August,

2025,    re-appointed Mr. Vivek Chawla, Mr. Jagdish Chandra
Toshniwal as the Independent Directors of your Company for
further period of five years with effect from 1^st April, 2026 to
31^st March, 2031 and Mr. Ramit Budhraja for a further period
of five years with effect from 1^st May, 2026 till 30^th April, 2031.
The Company in its Annual General Meeting held on 23^rd
September, 2025 has taken approval of the shareholders for
the above re-appointments.

The tenure of Mr. Tushar Bhajanka, Deputy Managing
Directors of the Company was due to expire on 7^th August,

2026.    On the recommendation of Nomination & Remuneration
Committee, the Board of Directors of the Company at

its meeting held on 22^nd May, 2026, re-appointed and re¬
designated Mr. Tushar Bhajanka, from Deputy Managing
Director to Managing Director (MD) & Chief Executive Officer
(CEO) of the Company for a period of three years with effect
from 22^nd May, 2026 to 21^st May, 2029. In terms of Regulation 17
(1C) of the Listing Regulations, the listed entity is required to
obtain approval of the shareholders for the appointment/re-
appointment of Director at the next General Meeting or within a
time period of three months from the date of appointment/re-
appointment, whichever is earlier. In terms of recommendation
of Nomination & Remuneration Committee and the Board of
Directors at the said meeting has also approved the revised
remuneration payable to Mr. Tushar Bhajanka, effective
from April 01, 2026, subject to approval of shareholders. Mr.
Tushar Bhajanka, is also drawing remuneration from M/s
Star Cement North East Limited, a material subsidiary of
the Company. Accordingly, the shareholders of the Company
need to approve the re-appointment of Mr. Tushar Bhajanka
as MD & CEO of the Company, along with revised remuneration
payable by way of special resolution through postal ballot by
way of voting through electronic means or by the next General
Meeting whichever is earlier. The Company seeks approval of
the shareholders through postal ballot.

The Board of Directors of the Company on the
recommendation of Nomination & Remuneration Committee
in its meeting held on 22^nd May, 2026 has re-designated
Mr. Prem Kumar Bhajanka, Managing Director of the
Company as Vice Chairman & Managing Director with
immediate effect for his remaining tenure.

In accordance with the provisions of Companies Act, 2013
and in terms of the Memorandum and Articles of Association
of the Company, Mr. Tushar Bhajanka (DIN: 09179632) and Mr.
Keshav Bhajanka (DIN: 03109701) will retire by rotation and
being eligible, offer themselves for re-appointment. In view
of their considerable experience, your Directors recommend
the re-appointment of Mr. Tushar Bhajanka and Mr. Keshav
Bhajanka as Directors of the Company.

DECLARATION BY INDEPENDENT DIRECTORS

All Independent Directors have given declarations that
they meet the criteria of independence as laid down under
Section 149(6) of the Companies Act, 2013 and they have
complied with the Code for Independent Directors prescribed
in Schedule IV to the Act and the Listing Regulations. Mr.
Nirmalya Bhattacharyya, Mrs. Ibaridor Katherine War, Mrs.
Plistina Dkhar, Mr. Amit Kiran Deb, Mr. Deepak Singhal, Mr.
Vivek Chawla, Mr. Jagdish Chandra Toshniwal and Mr. Ramit
Budhraja are Independent Directors on the Board of your
Company. In the opinion of the Board and as confirmed
by these Directors, they fulfill the conditions specified in
section 149 of the Act and the Rules made thereunder and the
Listing Regulations about their status as Independent
Director of the Company.

Your Board of Directors formed an opinion that the
Independent Directors of the Company are maintaining
highest standard of integrity and possessing expertise,
requisite qualifications and relevant experience in the fields
of Administration, General management, Accounts & Finance,
Audit , Internal Audit, Taxation, Risk, Board procedures,
Governance etc., for performing their role as Independent
Directors of the Company. Regarding proficiency, all
Independent Directors have registered themselves in the Data
Bank maintained with the Indian Institute of Corporate Affairs
(IICA), Manesar. In terms of Section 150 of the Companies Act,
2013 read with Rule 6(4) of the Companies (Appointment and
Qualificationof Directors) Rules, 2014, all the Independent
Directors of the Company have confirmed that they have a
valid registration with the Independent Directors' databank
maintained by the Indian Institute of Corporate Affairs (IICA)
and have also completed the online proficiency test conducted
by the IICA, if not exempted.

FAMILIARIZATION PROGRAMME FOR INDEPENDENT
DIRECTORS

In order to enable the Independent Directors to perform their
duties optimally, the Board has devised a familiarization
programme for the Independent Directors to familiarize
them with the Company, their roles, rights, responsibilities
in the Company, nature of the industry in which the Company
operates, business model of the Company, etc. They are
periodically updated about the development which takes place
in the Company. Periodic presentations are made at the Board
and Committee Meetings, updates of the Company, business
strategy and risks involved. Site visits are arranged, whenever
required. At the time of appointment of an Independent
Director, the Company issues a formal letter of appointment
setting out in detail, the terms of appointment, duties,
responsibilities and commitments etc. The familiarization
program is available on the Company's website under the
web link:    https://www.starcement.co.in/pdf/investor-

information/FamilarizationProgrammePolicy.pdf

BOARD DIVERSITY

Your Company believes that a diverse Board is essential
for success of an organization. A diverse Board influences
eradicating differences in knowledge, skills, gender, age,
geographical differences, cultural background etc., this
ultimately effects competitive advantages. The Board
has adopted the Board Diversity Policy which sets out the
approach to the diversity of the Board. The said Policy
is available on your Company's website at https://
www.starcement.co.in/pdf/investor-information/
BoardDiversityPolicy.pdf.

SUBSIDIARIES AND ASSOCIATE COMPANY

M/s. Star Cement Meghalaya Limited, M/s. Star Century Global
Cement Private Limited, M/s. Star Smart Building Solutions

Limited [formerly, Star Cement (I) Limited], M/s. Star Cement
North East Limited, M/s. Ri Pnar Cement Private Limited and
M/s. Kopili Cement (I) Private Limited continue to remain
subsidiaries of the Company.

M/s. Star Cement Meghalaya Limited, a material subsidiary,
is engaged in manufacturing of Cement Clinker and has a
Clinkerization plant with an installed capacity of 2.00 MTPA.
During the year under review, the Company manufactured of
14,06,856 MT clinker as against 16,35,763 MT in FY 2024-25.

M/s. Star Cement North East Limited, a material subsidiary
Company having 4 MTPA Cement Grinding plant, during the
year under review, the Company manufactured of 18,71,104 MT.
of cement as against 17,97,591 MT in FY 2024-25. Star Cement
North East Limited has successfully commenced commercial
production at it's New Grinding Unit situated in Cachar, Assam
on February 20, 2026 with a capacity of 2.0 MTPA.

M/s. Star Smart Building Solutions Limited {formerly, Star
Cement (I) Limited} subsidiary has successfully commenced
commercial production of AAC Blocks on and from June 2,
2025, at its Manufacturing Unit located in Chamata Pathar,
Sonapur, Assam. The said Company has manufactured 84,739
Cubic Meter of AAC Block in FY 2025-26.

M/s. Ri Pnar Cement Private Limited (RPCPL) has acquired
100% shareholding of M/s Nitesh Minerals Private Limited
(NMPL) on 18^th April, 2026 and M/s. Star Cement North East
Limited (SCNEL) has acquired 100% shareholding of M/s
Jaitaran Renewable Power Private Limited (JRPPL) on
23^rd April, 2026 respectively. Accordingly, NMPL & JRPPL
became the wholly owned subsidiary of the RPCPL & SCNEL,
respectively and a step-down subsidiaries of the Company.

M/s. Star Century Global Cement Private Limited, a wholly-
owned subsidiary in Myanmar, M/s. Ri Pnar Cement Private
Limited, M/s. Kopili Cement (I) Private Limited, wholly-owned
subsidiary company & M/s. Jaitaran Renewable Power Private
Limited, step-down subsidiary are yet to commence their
operations.

CHANGES IN NATURE OF BUSINESS, IF ANY

There has not been any change in the nature of business.

BOARD POLICIES

The Board of Directors of your Company, from time to time
have framed and revised various Polices as per the applicable
Acts, Rules, Regulations and Standards for better governance
and administration of the Company. The Policies are made
available on the website of the Company at https://www.
starcement.co.in/investors-information. The policies are
reviewed periodically by the Board and updated based on
need and requirements.

AUDITED FINANCIAL STATEMENTS OF THE COMPANY'S
SUBSIDIARIES

Pursuant to Section 129 (3) of the Act, the statement containing
the salient features of the financial statement for the year
ended 31^st March, 2026 for each of the Company's subsidiaries
viz. M/s. Star Cement Meghalaya Limited, M/s. Star Century
Global Cement Private Limited, M/s. Star Smart Building
Solutions Limited [formerly, Star Cement (I) Limited], M/s.
Star Cement North East Limited, M/s. Ri Pnar Cement Private
Limited and M/s. Kopili Cement (I) Private Limited are annexed
herewith in the Form AOC - 1 and marked as Annexure - 4.

CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements of the Company
have been prepared in accordance to requirements of the
Companies Act, 2013 and IND AS as prescribed by the Institute
of Chartered Accountants of India and has been included as a
part of this Annual Report.

The detailed financial statements and audit reports of
each of the subsidiaries of the Company are available
for inspection at the Registered Office of the Company
during office hours between 11:00 A.M. and 01:00 P.M. The
Company will arrange to send the financial statements of the
subsidiaries upon written request from a shareholder to the
registered address of the said shareholder.

In accordance with Section 136 of the Act, the audited
financial statements, including consolidated financial
statements and related information of your Company and
audited accounts of each of its subsidiaries, are available on
website of your Company at www.starcement.co.in.

DEPOSITS

During the year under review, the Company has not accepted
any deposits from public or from any of the Directors of the
Company or their relatives falling under ambit of Section 73 of
the Companies Act, 2013.

SIGNIFICANT MATERIAL ORDERS PASSED BY THE
COURTS / TRIBUNAL OR REGULATORS

(i) Earlier the Company had received a demand notice
dated February 19, 2020 from the Director of Mineral
Resources, Meghalaya, for payment of royalty, MEPRF,
VAT/GST for ' 4,184.06 lakhs in pursuance to the National
Green Tribunal (NGT) order dated January 17, 2020 for
alleged illegal coal procurement. By passing the said
order NGT had accepted the recommendation of 5^th
Interim Report of the Independent Committee set up
by NGT, which then suggested imposition of penalty
on cement companies and thermal power plants in
Meghalaya.

The Company did not purchase any illegal coal and
had complied with all disclosure requirements of the
various Government Departments. The Report of NGT
Committee was based on the assumptions & views of
the Committee and not on hard facts. Moreover neither
the Company has been issued a show-cause nor any
opportunity of being heard was given to the Company
before submitting the Interim reports by the Independent
Committee to NGT. Further NGT did not serve any notice
on the Company before passing the impugned order
which is a clear violation of principles of natural justice.

In an earlier year on an appeal by the Company, the
Apex Court vide it's order dated May 2, 2023 restored
the proceeding back to NGT, at the stage, as it stood
prior to the passing of the judgement dated January
17, 2020. Subsequently the matter has been transferred
to the NGT, Eastern Zone Bench, and the Company has
filed necessary affidavits in the previous year and the
matter is subjudice. No provision has been considered
necessary at this stage. {Refer Note No. 44(a)}

(ii)    As reported in the earlier year, the Company had
received a revised demand notice from the Divisional
Mining Officer (DMO), Directorate of Mineral Resources,
Meghalaya, Jowai, towards alleged outstanding royalty
and cess on coal, shale and clay procured/consumed by
the Company during certain periods between financial
years 2012-13 and 2024-25 amounting to '971.54 lakhs (as
on March 31, 2025 '978.87 lakhs (including penal interest
of '109.98 lakhs (as on March 31, 2025: '109.98 lakhs).
Against the said demand, the Company had recognised a
provision of '439.92 lakhs (as on March 31, 2025: '439.92
lakhs) in earlier years as a matter of prudence.

The Company is of the view that, in accordance with the
provisions of the Mines and Minerals (Development and
Regulation) Act, 1957, the liability to pay royalty in respect
of minerals extracted from a mining lease area rest with
the holder of the mining lease and not with the purchaser
of such minerals. Accordingly, the Company believes
that no liability arises in respect of minerals procured
from third-party vendors.

Based on the above developments and legal advice
obtained, the management believes that no additional
liability exists in respect of the balance demand.
Accordingly, no further provision has been considered
necessary. {Refer Note No. 44(b)}

(iii)    The Company had received a demand notice from
the Directorate General of Goods and Services Tax
Intelligence (DGGI), Shillong, regarding non-payment
of GST under the Reverse Charge Mechanism (RCM)
on royalty, District Mineral Foundation (DMF), National
Mineral Exploration Trust (NMET) contribution and
Mineral Cess amounting to '861.23 lakhs, and wrongful

availment of Input Tax Credit (ITC) amounting to '239.23
lakhs during certain periods between July 2017 and
December 2018. The demand also includes equal amount
of applicable interest and penalties.

The Company had discharged GST under RCM amounting
to '239.23 lakhs at the applicable rate of 5% prior to the
issuance of the demand notice. However, the DGGI raised
the demand by applying GST at the rate of 18%, relying
on CBIC Circular No. 164/20/2021-GST dated October
6, 2021. The Company has contested the demand and
submitted its detailed reply before the DGGI, inter alia,
relying upon judicial precedents in similar matters
decided in favour of taxpayers.

No further communication has been received from the
DGGI subsequent to the submission of the reply, and the
matter remains pending adjudication.

Based on legal advice obtained, the management
believes that the demand is not sustainable and that the
Company has a strong case on merits. Accordingly, no
provision has been considered necessary in respect of
the aforesaid matter. {Refer Note No. 44(c)}

Other than the aforesaid, there have been no significant and
material orders passed by the Courts/ Regulators impacting
the going concern status and future operations of the
Company.

MATERIAL CHANGES AND COMMITMENTS AFFECTING
THE FINANCIAL POSITION OF THE COMPANY

No material changes or commitments have occurred between
the end of the Financial Year and the date of this Report which
affect the financial statements of the Company in respect of
the reporting year.

CREDIT RATINGS

Your Company enjoys a sound reputation for its prudent
financial management and its ability to meet financial
obligations. CRISIL has re-affirmed the short term & long term
fund based limits rating as CRISIL A1+ (pronounced as CRISIL
A One Plus) and 'CRISIL AA/Stable' (pronounced CRISIL double
A). The outlook for long term fund based limits are stable.

ADEQUACY OF INTERNAL FINANCIAL CONTROL

The Company has an Internal Control System, commensurate
with the size, scale and complexity of its operations. To
maintain its objectivity and independence, the Internal Audit
function reports to the Chairman of the Audit Committee of
the Board.

The Board of Directors of the Company on the
recommendation of the Audit Committee in their meeting
held on 21^st May, 2025 had, appointed an in-house team
of employees headed by Mr. Anik Chakrabarty, Chartered
Accountant as the Internal Auditors of the Company to
conduct Internal Audit for the FY 2025-26.

Subsequently, pursuant to the resignation of Mr. Anik
Chakrabarty, due to personal reasons the Board of Directors
upon recommendation of the Audit Committee, at their
respective meetings held on 08^th August, 2025, appointed an
in-house team to be headed by Mr. Vineet Ladia, Chartered
Accountant as the Internal Auditor to conduct the internal
audit for the FY 2025-26. The Internal Auditors monitors
and evaluates the efficacy and adequacy of internal control
system in the Company, its compliance with operating
systems, accounting procedures and policies at all locations
of the Company. Based on the report of internal audit
function, process owners undertake corrective action in
their respective areas and thereby strengthen the controls.
Significant audit observations and recommendations, if any,
along with corrective actions thereon are presented to the
Audit Committee of the Board.

During the year under review, in order to achieve enhanced
synergies within the Internal Audit function, strengthening
the overall internal control framework and ensuring effective
and efficient functioning of various operational and functional
areas of the Company, the Board of Directors of the Company
based on the recommendation of the Audit Committee, have
engaged external audit firm(s) to conduct limited scope
internal audits in specific areas and subsequently approved
the appointment of Deloitte Touche Tohmatsu India LLP,
Protiviti India Member Private Limited and Garv & Associates
Chartered Accountants as external agencies to conduct a
part of the Internal Audit function of the Company, as may be
determined from time to time.

INTERNAL CONTROL OVER FINANCIAL REPORTING

The Company has in place adequate internal financial controls
commensurate with the size, scale and complexity of its
operations. During the year, such controls were tested and no
reportable material weakness in the design or operations were
observed. The Company has policies and procedures in place
for ensuring proper and efficient conduct of its business,
the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the
accounting records and the timely preparation of reliable
financial information.

DETAILS OF SIGNIFICANT CHANGES (I.E., CHANGES OF
25% OR MORE) IN KEY FINANCIAL RATIO AND CHANGE
IN RETURN ON NETWORTH ALONGWITH DETAILED
EXPLANATIONS

MANAGERIAL REMUNERATION AND PARTICULARS OF
EMPLOYEES

The disclosures with respect to the remuneration of Directors
and employees as required under Section 197 of Companies
Act, 2013 read with Rule 5 (1) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014
along with a statement containing particulars of employees
as required under Section 197 of Companies Act, 2013 read
with Rule 5 (2) and (3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is annexed
herewith and marked as Annexure - 5 and forms part of this
report.

DETAILS OF APPLICATION MADE OR ANY PROCEEDING
PENDING UNDER THE INSOLVENCY AND BANKRUPTCY
CODE, 2016

There was no application made or proceeding pending against
the company under the Insolvency and Bankruptcy Code, 2016,
during the year under review.

DETAILS OF DIFFERENCE IN VALUATION

The requirement to disclose the details of difference
between amount of the valuation done at the time of onetime
settlement and the valuation done while taking loan from the
Banks or Financial Institutions along with the reasons thereof,
is not applicable.

POLICY ON PREVENTION OF SEXUAL HARASSMENT

The Company values the integrity and dignity of its employees.
The Company has put in place a 'Policy on Prevention of Sexual

Harassment' as per the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013
("Sexual Harassment Act") and has constituted the Committee
with internal and external members. We affirm that adequate
access has been provided to any complainants who wish to
register a complaint under the policy. The details required as
per Companies (Accounts) Second Amendment Rules, 2025 is
mentioned hereinbelow:

The policy on Prohibition, Prevention & Redressal of Sexual
Harassment is available on the website of the Company at
https://www.starcement.co.in/investors-information.

CORPORATE GOVERNANCE

The Company has complied with the corporate governance
requirements as stipulated under the Listing Obligations
and Disclosure Requirements Regulations, 2015 formulated
by Securities and Exchange Board of India (SEBI). A separate
section on corporate governance, along with a certificate
from the auditors confirming the compliance, is annexed
and forms part of the Annual Report. This certificate will be
forwarded to the Stock Exchanges along with the Annual
Report of the Company.

MANAGING DIRECTOR (MD) /CHIEF FINANCIAL
OFFICER (CFO) CERTIFICATION

As required under Regulation 17(8) of the Listing Obligations
and Disclosures Requirements Regulations, 2015 formulated
by Securities and Exchange Board of India (SEBI), the MD/
CFO certification has been submitted to the Board and a copy
thereof is contained in this Annual Report.

RISK MANAGEMENT

Risk management refers to the practice of identifying potential
risks in advance, analyzing them and taking precautionary
steps to reduce the risk. The Company has evolved a risk
management framework to identify, assess and mitigate the
key risk factors of the business. The Board of the Company
is kept informed about the risk management of the Company.

The Risk Management policy is available on the website of
the Company at https://www.starcement.co.in/pdf/investor-
information/RiskManagementPolicy.pdf.

HUMAN RESOURCE DEVELOPMENT & INDUSTRIAL
RELATIONS

At Star Cement Limited, our people continue to be the
cornerstone of sustained growth and organizational
excellence. During FY 2025-26, the Human Resources
function remained focused on strengthening leadership
capability, fostering a culture of continuous learning,
enhancing employee engagement and maintaining
harmonious industrial relations across all locations.

The Company advanced its leadership development
agenda through PACE 2.0 (People Advancement Curating
Excellence), the second cohort of its High-Potential
Development program. The initiative focused on building a
robust leadership pipeline through structured assessments,
Individual Development Plans (IDPs) and targeted learning
interventions covering critical themes such as AI in business,
decision-making and project management. The program was
complemented by coaching, mentoring and action learning
projects to enable practical application and readiness for
higher responsibilities.

Recognizing and celebrating employee commitment remains
an integral part of our people philosophy. During the year,
employees were honoured with Long Service Awards on
Independence Day, acknowledging their dedication and
sustained contribution to the Company. Such initiatives
reinforce a culture of appreciation and strengthen employee
engagement.

Our continued efforts towards building an inclusive, engaging,
and progressive workplace have been externally recognized,
with the Company being ranked among the "Top 50 Happy
Companies to Work For" by the World HRD Congress.

Strategic employee engagement initiatives undertaken
during the year have contributed to improve talent retention
and strengthened our positioning as an employer of choice in
the regions of operation.

Capability building as always remained a key focus area.
A structured Behaviour-Based Safety (BBS) program was
implemented across plant locations to reinforce safe
behaviors, strengthen hazard recognition, and enhance
accountability. At Lumshnong unit, a focused worker
transformation initiative was undertaken through counselling
and experiential learning interventions to improve discipline,
productivity and ownership. Additionally, targeted program
for Sales and Business Development teams were conducted
to strengthen high-performance team capabilities, including
psychological safety, communication effectiveness and
feedback mechanisms.

During the year under review, the Company continued to
focus on strengthening its human resource practices and
ensuring compliance with applicable labour laws. In line with
the Government of India's implementation of the new Labour
Codes, the Company has initiated necessary reviews of its
HR policies, employment practices, wage structures, social
security measures and employee welfare frameworks. The
management is taking appropriate steps to align internal
processes and systems with the requirements of the new
labour regulations to ensure smooth implementation
and continued compliance while safeguarding employee
interests.

In line with our digital transformation agenda, the Company
introduced a digitized travel and expense management
system, enabling seamless travel planning, improved
efficiency, reduced paperwork and enhanced user experience
for employees.

Industrial Relations across all units remained stable and
harmonious throughout the year. Proactive engagement,
effective communication mechanisms and a strong focus
on employee welfare ensured smooth operations, with no
material disruptions reported. The Company continues to
prioritize a collaborative and positive industrial relations
environment, supporting sustainable business growth.

MATERNITY BENEFITS

The Company has complied with the provisions of the
Maternity Benefit Act, 1961, as amended from time to time.
The Company is committed to ensuring a safe, inclusive,
and supportive workplace for women employees. All eligible
women employees are provided with maternity benefits
as prescribed under the said Act including paid maternity
leave, nursing breaks and protection from dismissal during
maternity leave.

The Company also ensures that no discrimination is made in
recruitment or service conditions on the grounds of maternity.
Necessary internal systems and human resource policies are
in place to uphold the spirit and letter of the legislation.

AWARDS AND ACCOLADES

Star Cement's Lumshnong Limestone Mine has received the
prestigious 5 star rating for green mining by the Indian Bureau
of Mines. This award, recognizes Star Cement's excellence in
sustainable mining practices and reaffirms our commitment
to a greener future.

Also recognizing the leadership of Star Cement, it was
bestowed with Marketing Meister 2025 by BARC Asia & Herald
Global. This recognition is for it's sharp marketing vision, which
has been translated into Solid brand campaigns resulting in
our strong growth across markets.

Star Cement has been recognized as one of the WOW
Workplace Awards 2025 (Workplace of Winners) by Jombay,

a renowned HR Service provider firm. This is an annual listing
of organizations that have the most WOW reviews from their
employees. The authenticity of the award lies in the fact that it
substantiates how "great" or "best" or "exceptional" a workplace
is through publicly available wow/positive employee reviews.

Additionally, Star Cement also received the following award in
Branding and Marketing such as:

Gold Award for Best Conference of the Year (International)
ADC held in Malaysia 2025.

Bronze award for Best Product Launch - Star Dhalai Master

Bronze award for Best Annual Dealers Meet, Malaysia 2025 and

Bronze award for Best Use of AI in Experiences under Red
Carpet 2025 award Categories.

Gold Award for Transformational Growth to Star Weather
Shield

Silver Award for Best Use of TV for Har Ghar Mein Star

Bronze Award for Best Use of Omni Channel Marketing for
Best Use of Omni Channel Marketing - Digital Marketing for
Exchange4Media - Indian Marketing Award 2025

GREEN INITIATIVES IN CORPORATE GOVERNANCE

Ministry of Corporate Affairs has permitted Companies to
send copies of Annual report, Notices, etc., electronically to
the email IDs of shareholders. Your Company has arranged
to send the soft copies of these documents to the registered
email IDs of the shareholders, wherever applicable. In case,
any shareholder would like to receive physical copies of these
documents, the same shall be forwarded upon receipt of
written request in this respect.

The Ministry of Corporate Affairs has taken 'Green Initiative in
the Corporate Governance' by allowing paperless compliances
by the Companies and has issued circulars stating that service
of notice/documents including Annual Report can be sent by
e-mail to its members for the Financial Year 31^st March, 2026.
A newspaper advertisement in this regard is being published.

Your Company prefers e-demand module for transportation
of material through Indian Railways which helps for carbon
saving. It is the amount of saving of carbon emission in Tonnes
of CO2 on account of transportation of goods by railways
instead of road.

CAUTIONARY STATEMENT

Statements in this report describing the Company's objectives,
expectations or predictions, may be forward looking within
the meaning of applicable securities laws and regulations.
Actual results may differ materially from those expressed in
the statement. Important factors that could influence the
Company's operations include: global and domestic demand
and supply conditions affecting selling prices, new capacity
additions, availability of critical materials and their cost,
changes in Government policies and tax laws, economic
development of the country, our business, the businesses of
our customers, vendors and partners and other factors which
are material to the business operations of the Company.

ACKNOWLEDGEMENT

Your Directors take this opportunity to express their sincere
gratitude to the Banks, the Central and State Governments and
their respective departments, local authorities, customers,
vendors and business partners/associates for their continued
guidance, cooperation and unwavering support extended to
the Company. The Directors also place on record their deep

appreciation for the commitment, dedication and hard work
demonstrated by every member of the Company and attribute
the Company's achievements to their collective efforts.
Finally, the Directors convey their heartfelt thanks to the
shareholders for their continued trust and confidence in the
Management and look forward to their sustained support in
the years ahead.

For and on behalf of the Board of Directors
Sajjan Bhajanka

Place: Kolkata    Chairman & Managing Director

Date: 22^nd May, 2026    (DIN: 00246043)