To,

The Members,

INDIAN EMULSIFIERS LIMITED

The Board of Directors of the Company have great pleasure in presenting the 6th Board's Report of the Company together with Audited Financial Results for the year ended March 31,2026. This report states compliance as per the requirements of the Companies Act, 2013 ("the Act”), the Secretarial Standards, the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (" SEBI Listing Regulations”) and other rules and regulations as applicable to the Company.

The highlights of the financial performance of the Company for the year ended March 31, 2026 are summarized as follows:

Our Company is engaged in the business of Manufacturing and Supplying of Specialty Chemicals i.e., Esters, Amphoterics, Phosphate Esters, Imidazolines, Wax Emulsions, SMO & PIBSA Emulsifiers.

During the year under review, on standalone basis the Company has earned a total revenue of Rs. 15, 986.90 Lakhs for the year ended March 31, 2026 as against Rs. 10,265.51 Lakhs in the previous financial year.

Whereas, on Consolidated basis the Company has earned a total revenue of Rs. 15,982.41 Lakhs for the year ended March 31, 2026 as against Rs. 10,122.62 Lakhs in the previous financial year.

The Company has recorded a profit (PBT) of Rs. 1,986.40 Lakhs for the year ended March 31, 2026 as compared to Rs. 1,641.35 Lakhs in the previous financial year on standalone basis.

Whereas, on Consolidated basis the Company has recorded a profit (PBT) of Rs. 1,993.33 Lakhs for the year ended March 31, 2026 as compared to Rs. 1,641.35 Lakhs in the previous financial year.

The Profit/ (Loss) after Tax (PAT) for the year ended March 31, 2026 increased and stood at Rs. 1,606.88 Lakhs as compared to Rs. 1,333.14 Lakhs in the previous financial year, on standalone basis

Whereas, on Consolidated basis, the Profit/ (Loss) after Tax (PAT) for the year ended March 31, 2026 increased and stood at Rs. 1,934.34 Lakhs as compared to Rs. 1,333.14 Lakhs in the previous financial year

The Dividend policy for the year under review has been formulated. In order to conserve resources for future business expansion and support the growth of the Company, your directors do not recommend any dividend on equity shares for the financial year ended March 31, 2026. Consequently, no amount is proposed to be transferred to the reserves for the year under review.

There has been no change in the Business of the Company during the financial year ended March 31, 2026.

Except as disclosed below, there have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate (March 31, 2026) and the date of this Report:

On April 17, 2026, the Board approved fundraising of upto Rs. 20 Crore by issuance of Non- Convertible Debentures (NCDs) on a Private Placement basis. The Company has successfully received and allotted the first tranche of Rs. 10.00 Crores on April 17, 2026,

The Authorized Share Capital of the Company as on March 31, 2026 is Rs. 20,00,00,000/- (Rupees Twenty Crores) divided into 2,00,00,000 (Two Crore) Equity Shares of having face value of Rs. 10/- each fully paid-up.

During the period under review and up to the date of this report, the Authorised Share Capital of the Company was increased twice to support business expansion and funding milestones as detailed below:

The members of the Company, at the Annual General Meeting held on September 30, 2025, approved increase in the Authorised Share Capital from ^14,00,00,000/- (Rupees Fourteen Crores) to ^20,00,00,000/- (Rupees Twenty Crores) by creating an additional 60,00,000 (Sixty Lakh) Equity Shares of Rs. 10/- each bypassing a Special Resolution.

Further, on May 1, 2026 , the members approved an increase in the Authorised Share Capital from ^20,00,00,000/- (Rupees Twenty Crores) to ^32,00,00,000/- (Rupees Thirty-Two Crores) by creating an additional 1,20,00,000 (One Crore Twenty Lakh) Equity Shares of Rs. 10/- each through a Postal Ballot..

As on March 31, 2026 the paid-up Equity Share Capital was Rs. 1,83,332,220/- divided into 1,83,33,222 Equity Shares of Rs. 10/- each.

During the financial year under review, the Company successfully raised funds through a Rights Issue to its eligible equity shareholders. On November 24, 2025, approved the allotment of 61,11,000 Rights Equity Shares of face value Rs.10/- each at a price of Rs. 80/- (including a Premium of Rs.70.00/- (Rupees Seventy Only) per Rights Equity Share;

The details of allotment are as follows:

Consequent to this allotment, the paid-up Equity Share Capital of the Company increased from Rs. 12,22,22,220/- to Rs 18,33,32,220/- as on March 31, 2026.

As on March 31, 2026 the Company has following Holding, Subsidiaries, Associate Company, and Joint Venture,:

* M/s. Polaris Specialty Chemicals Inc, a Foreign subsidiary company of the Company has been incorporated on March 28, 2025 at United States of America (USA). The Company has subscribed 1000 Ordinary shares of US$ 1.00 each. The main object of the incorporated company is distribution of Specialty Chemicals.

# M/s Spartan Professional Products Private Limited, wholly owned Indian Subsidiary of the company incorporated on March 24, 2026. The Company has subscribed 10,000 Equity Shares of Face Value of Rs. 10/- each. The main object of the incorporated entity is to manufacture Home and Personal Care Products.

Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014 a statement containing salient features of the financial statement of subsidiaries or associate companies or Joint ventures in Form AOC- 1 is annexed and marked as Annexure-I.

The composition of Board of Directors and Key Managerial Personnel (KMP) of the Company as on March 31, 2026 were as follows:

Resignation: Mr. Ramraj Singh Thakur resigned from the position of Company Secretary and Compliance Officer with effect from the close of business hours on February 02, 2026.

Appointment: Ms. Joshna John Olivera was appointed as the Company Secretary and Compliance Officer of the Company with effect from February 04, 2026, pursuant to the provisions of Section 203 of the Companies Act, 2013.

Pursuant to the provisions of sub-section (7) of Section 149 of the Companies Act, 2013, the Company has received individual declarations from all the Independent Directors confirming that they fulfil the criteria of Independence as specified in Section 149(6) of the Companies Act, 2013.

The Independent Director have complied with the Code of Conduct for Independent Directors prescribed in Schedule IV of the Act. In view of the available time limit, those Independent Director who are required to undertake the online proficiency self-assessment test as contemplated under Rule 6(4) of the Companies (Appointment and Qualification of Directors) Rules, 2014, had committed to perform the test within time limit stipulated under the act.

Duringthe financial year ended March 31, 2026 the Board of Directors met 13 times (on April 29, 2025, May 10, 2025, May 16, 2025, May 27, 2025, August 29, 2025, September 22, 2025, October 18, 2025, November 08, 2025, December 12. 2025, February 04, 2026, February 25, 2026, March 18, 2026 and on March 30, 2026) in accordance with the provisions of the Companies Act, 2013 and rules made there under. The intervening gap between two Board Meeting was within the period prescribed under the Companies Act, 2013 and as per Secretarial Standard-1. The prescribed quorum were present for all the Meetings. Directors of the Company actively participated in the meetings and contributed valuable inputs on the matters brought before them from time to time.

The Company has four committees viz; Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Corporate Social Responsibility Committee which has been established as a part of the better Corporate Governance practices and is in compliance with the requirements of the relevant provisions of applicable laws and statutes.

The Audit Committee of the Company is constituted under the provisions of section 177 of the Companies Act, 2013. Composition of the Committee is as follows:

All the recommendation made by the Audit Committee in the financial year 2025-26 was approved by the Board.

The Audit Committee members met 4 times during the year on May 16, 2025, August 29, 2025, November 08, 2025 and February 04, 2026 for conducting the Meeting.

The Nomination & Remuneration Committee of the Company is constituted under the provisions of section 177 of the Companies Act, 2013.

Composition of the Committee is as follows:

The Nomination & Remuneration Committee members met 3 times during the year on August 29, 2025, November 08, 2025 and February 04, 2026 for conducting the Meeting.

The Stakeholder Relationship Committee of the Company is constituted under the provisions of section 177 of the Companies Act, 2013.

Composition of the Committee is as follow:

The Stakeholder Relationship Committee members met twice during the year on May 16, 2025 and November 08, 2025 for conducting the Meeting.

The Corporate Social Responsibility Committee of the Company is constituted under the as per the provisions of the Companies Act, 2013.

Composition of the Committee is as follows:

The Corporate Social Responsibility Committee members met 1 time on August 29, 2025 during the year for conducting the Meeting.

CSR provides an opportunity to the Companies to effectively align its values and strategy for the benefits of the society, by contributing to the social, economic and environmental development of the society at large.

Further the Board of directors has also approved the CSR policy formulated in accordance with the Act (as amended from time to time), guides the Company to serve the society which can be accessed on the website of the Company at link https: //indianemulsifiers.com/

The disclosure as per provisions of Companies Act, 2013 on CSR activities forming part of this Report is attached as Annexure- V

Since the Company is listed on SME platform of NSE Emerge., the provisions of Corporate Governance are not applicable to the Company.

The Company believes that building a diverse and inclusive culture is integral to its success. A diverse Board, among others, will enhance the quality of decisions by utilizing different skills, qualifications, professional experience and knowledge of the Board members necessary for achieving sustainable and balanced development. In terms of SEBI Listing Regulations and Act, the Company has in place Nomination & Remuneration Policy.

The said policy of the Company, inter alia, provides that the Nomination and Remuneration Committee shall formulate the criteria for appointment of Executive, Non-Executive and Independent Directors on the Board of Directors of the Company and persons in the Senior Management of the Company, their remuneration including determination of qualifications, positive attributes, independence of directors and other matters as provided under sub-section (3) of Section 178 of the Act (including any statutory modification^) or re- enactments) thereof for the time being in force). The Policy also lays down broad guidelines for evaluation of performance of Board as a whole, Committees of the Board, individual directors including the chairperson and the Independent Directors. The aforesaid Nomination and Remuneration Policy has been uploaded on the website of your Company at www.indianemulsifiers.com

The Board members are provided with necessary documents/ brochures, reports, and internal policies to enable them to familiarize with the Company's procedures and practices, the website link is www.indianemulsifiers.com

Pursuant to the provisions of the Companies Act and the SEBI Listing Regulations, a structured questionnaire was prepared for evaluating the performance of Board, its Committees and Individual Director including Independent Directors. The questionnaires were prepared after taking into consideration the various facets related to working of Board, its committee and roles and responsibilities of Director. The Board and the Nomination and Remuneration Committee reviewed the performance of the Individual Directors including Independent Directors on the basis of the criteria and framework adopted by the Board. Further, the performance of Board as a whole and committees were evaluated by the Board after seeking inputs from all the Directors on the basis of various criteria. The Board of Directors expressed their satisfaction with the evaluation process. In a separate meeting of Independent Directors, the performance of Non-Independent Directors, performance of Board as a whole and performance of the Chairman was evaluated, taking into account the views of the Executive Directors and Non-Executive Directors.

The Company has been continuously making efforts to reduce energy consumption. The management is striving to achieve cost reduction by economical usage of energy.

The Company has been continuously making efforts to reduce energy consumption, and the management is striving to achieve cost reduction by economical usage of energy.

As the Company needs only minimum level of energy, it has not looked into an alternative source of energy.

The Company has not made any capital investment as it is not required at this stage.

The Company is not utilizing any alternate source of energy.

During the period under review, the Company has total income of Nil and Nil expenditure in the foreign currency

The Board of the Company has evaluated a risk management to monitor the risk management plan for the Company. The Audit Committee has additional oversight in the area of financial risk and controls. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on continuing basis.

The Company has established a vigil mechanism, through a Whistle Blower Policy, where Directors and employees can voice their genuine concerns or grievances about any unethical or unacceptable business practice. A whistle- blowing mechanism not only helps the Company in detection of fraud, but is also used as a corporate governance tool leading to prevention and deterrence of misconduct.

It provides direct excess to the employees of the Company to approach the Compliance Officer or the Chairman of the Audit Committee, where necessary. The Company ensures that genuine Whistle Blowers are accorded complete protection from any kind of unfair treatment or victimization. The Whistle Blower Policy is disclosed on the website of the Company at www.indianemulsifiers.com

The details of loans, guarantees or investments covered under Section 186 of the Companies Act, 2013 are given in the Note No 10 to the Financial Statements.

All related party transactions that were entered into during the Period under review, were on arm's length basis and in the ordinary course of business. No materially significant related party transactions which required the approval of members, were entered into by the Company during the Period under review. Further, all related party transactions entered by the Company are placed before the Audit Committee for its approval.

The particulars of the contracts or arrangements entered by the Company with related parties as referred to in Section 134(3) (h) read with section 188(1) of the Act and rules framed thereunder, in the Form No. AOC-2 are annexed and marked as Annexure-II.

M/s. Dave & Dave., Chartered Accountants (Firm Registration No. 102163W) were appointed as the Statutory Auditors of Company at the 4th Annual General Meeting for the period of 5 years i.e., from F.Y. 2024-25 to 2028-29.

Further the Statutory Auditors have submitted their Report on the Financial Statements for the financial year ended March 31, 2026, forming part of this Report and there are no qualifications, reservations or adverse remarks made by the statutory auditor of Company in their Audit Report for the year under review.

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

M/s. Nikunj Kanabar & Associates, Company Secretaries, (Firm Registration Number: S2024MH981100, Membership No. F12357 and CP No. 27358) were appointed as the Secretarial Auditors of the Company for a period of five (5) consecutive years, commencing from April 1, 2025 to March 31, 2030.

The Secretarial Audit report received from the Secretarial Auditors is annexed to as Annexure VI and forms part of this report.

The Board of Directors of the Company at its meeting held on February 04, 2026 have appointed Mr. Mandeep B. Pandey as Internal Auditor of the Company for F.Y. 2025-26.

The Board of Directors of the Company at its meeting held on September 04, 2026 have appointed M/s Narendra Peshne & Associates Cost Accountant having Firm Registration No. 100269 with the Institute of Cost Accountants of India, as Cost Auditor of the Company for conducting Cost Audit of the Company for the FY 2026-27.

In accordance with Section 92(3) and Section 134(3)(a) of the Companies Act, 2013 read with Companies (Management and Administration) Rules, 2014, the Annual Return as on 31st March 2026 is available on the Company's website https: //indianemulsifiers.com/annual-return/

A detailed report on Management Discussion and Analysis (MDA) Report is included in this Report as Annexure - III.

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in this Report as Annexure IV which forms part of this Report.

The relations with the employees and associates continued to remain cordial throughout the year. The Directors of your Company wish to place on record their appreciation for the excellent team spirit and dedication displayed by the employees of the Company.

The Company is committed to provide a safe and conducive work environment to its employees. There exist at the group level an Internal Complaint Committee (‘ICC') constituted under The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The group is strongly opposed to sexual harassment and employees are made aware about the consequences of such acts and about the constitution of ICC. During the year under review, no complaints were filed with the Committee under the provisions of the said Act in relation to the workplace/s of the Company.

The Company is committed to providing a supportive and inclusive workplace for all employees. In line with the provisions of the Maternity Benefit Act, 1961. The Company ensures that all eligible women employees are granted paid maternity leave and other prescribed benefits.

During the year under review, no women employees availed maternity leave. The Company also provides flexible working arrangements and nursing breaks to support employees in balancing work and family responsibilities.

The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Board meetings and Annual General Meetings.

The Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards and that such systems are adequate and operating effectively.

As per Section 148 of the Act read with Companies (Cost Records and Audit) Rules, 2014, the Board of Directors of the Company on recommendation of the Audit Committee had appointed M/s. Narendra Peshne & Associates, Cost Accountants (Firm Registration No.: 100269) to audit the cost accounts of the Company for the Financial Year ended 31st March, 2027.

In terms of the provisions of Section 148(3) of the Act, read with Rule 14(a)(ii) of the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditor is required to be ratified by the Members, accordingly, a resolution seeking ratification by the Members for the remuneration is listed in the AGM Notice as Special Business.

The Cost Auditors have certified that their appointment is within the limits of Section 141(3)(g) of the Act and that they are not disqualified from appointment within the meaning of the said Act. Maintenance of cost records as specified by the Central Government under Sub-Section (1) of Section 148 of the Act, is required by the Company and accordingly, such accounts and records are made and maintained.

The Company has neither accepted nor renewed any deposits falling within the purview of Section 73 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules 2014 as amended from time to time, during the year under review.

The Company has in place adequate Internal Financial Controls with reference to financial statements. During the year under review, such controls were tested and no reportable material weakness in the design or operation was observed.

Pursuant to Section 134 of the Companies Act, 2013 (‘the Act'), with respect to Directors Responsibility Statement it is hereby confirmed:

a) The Financial Statements of the Company - comprising of the Balance Sheet as at March 31, 2026 and the Statement of Profit & Loss for the year ended as on that date, have been prepared on a going concern basis following applicable accounting standards and that no material departures have been made from the same;

b) Accounting policies selected were applied consistently and the judgments and estimates related to these financial statements have been made on a prudent and reasonable basis, so as to give a true and fair view of the state of affairs of the Company as at March 31, 2026, and, of the profits and loss of the Company for the year ended on that date;

c) Proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, to safeguard the assets of the Company and to prevent and detect fraud and other irregularities;

d) Requisite Internal Financial Controls to be followed by the Company were laid down and that such internal financial controls are adequate and operating effectively; and

e) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

In compliance with Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Notice of the AGM along with the Annual Report is being sent only through electronic mode to those Members whose email addresses are registered with the Company/ Depositories. Members may note that the Notice and Annual Report 2025-26 will also be available on the Company's website https://indianemulsifiers.com/annual-report/

No application or proceeding was initiated in respect of the Company in terms of Insolvency and Bankruptcy Code 2016.

The requirement to disclose the details of difference between the amount of the valuation done at the time of onetime settlement and the valuation done while taking loans from the Banks or Financial is not applicable.

In addition to the standalone financial statements of Indian Emulsifiers Limited, this Annual Report also includes the audited consolidated financial statements of the company and its subsidiaries, prepared in accordance with the applicable provisions of the Companies Act, 2013, and Indian Accounting Standards (Ind AS)

Your directors state that no disclosure or reporting is required in respect of the following items as there were no transaction on these items during the year under review.

1. Issue of equity shares with differential rights as to dividend, voting or otherwise.

2. Issue of equity shares (including sweat equity shares) and ESOS to employees of the Company under any scheme.

3. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company's operations in future.

4. There was no instance of non-exercising of voting rights in respect of shares purchased directly by the employees under a scheme pursuant to section 67(3) of the Act read with Rule 16(4) of Companies (Share Capital and Debenture) Rules, 2014 and hence no information has been furnished.

5. The provisions of Section 125(2) with regards to Transfer of Unclaimed Dividend to Investor Education and Protection Fund of the Companies Act, 2013 do not apply as there was no dividend declared and paid last year.

Your directors would like to express their sincere appreciation for the continued support and cooperation received from all stakeholders. The Board is grateful to the Company's customers, suppliers, business partners, and shareholders for their trust and confidence in the Company.

The Directors also place on record their appreciation for the guidance and support received from various Government authorities, regulatory bodies, financial institutions, and banks.

The Board expresses its deep sense of gratitude to the employees at all levels for their dedication, commitment, and valuable contributions towards the growth and success of the Company