Your Directors have pleasure in presenting the Twenty-Sixth Annual Report and the Audited Financial Statements, including
Consolidated Financial Statements, of the Company for the year ended 31 March 2026.

1. FINANCIAL RESULTS

The salient features of the Company's working are:

2. DIVIDEND

Your Directors have recommended a dividend of ' 1.30 (13%) [previous year ' 1.20 (12%)] per equity share on
499,145,736 shares of ' 10 each aggregating ' 648.89 million (previous year ' 598.97 million). The Directors consider
this appropriate having regard to the requirements for funds for business and future growth of the Company and in
opinion of the Board, the proposed dividend is in line with the Company's Dividend Distribution Policy.

3. OPERATIONS

During the year under review, the sale of products increased from ' 30,608.32 million in the previous year to ' 31,554.64
million. Domestic sales turnover increased from ' 23,841.91 million to ' 24,847.32 million whereas the export turnover
decreased marginally from ' 6,766.41 million to ' 6,707.32 million. After making provision for depreciation, interest,
exceptional item and tax, the net profit during the year under report stands increased to ' 5,431.39 million as against
' 5,019.48 million in the previous year. There was no charge in the form of exceptional item in the previous year.

The agricultural and agrochemical industry scenario during FY 2025-26 was shaped by a combination of climatic
challenges, stable cropping patterns, evolving market dynamics, and continued farmer dependence on crop protection
solutions. While overall crop acreage across most regions remained largely stable, supporting agricultural activities
and indicating underlying resilience in the sector, the year was significantly impacted by adverse and prolonged
rainfall during the monsoon period from July to September, extending into October in certain geographies. Excess
rainfall adversely affected key crops such as soybean, cotton, and groundnut, resulting in crop damage, yield losses,
and reduced spray opportunities during critical application windows. These weather-related disruptions impacted
agrochemical consumption patterns and led to lower-than-expected demand during peak usage periods. At the same
time, lower commodity prices for crops, including cotton and soybean, continued to pressure farmer profitability
and limit discretionary spending on crop protection inputs, despite stable cultivation patterns. Agrochemical prices,
however, remained relatively stable throughout the year, which helped maintain affordability for farmers and supported
input accessibility. The industry also witnessed relatively low pipeline inventory levels, influencing supply dynamics
and pricing trends across the market. Despite the operational challenges arising from weather variability and subdued
farmer sentiment in certain crop segments, the sector demonstrated resilience, supported by stable sowing trends,
continued focus on agricultural productivity, and strong farmer reliance on crop protection solutions. A favorable Rabi

season further supported agricultural output and contributed positively to farmer income levels, creating improved
sentiment and supporting demand momentum for the subsequent Kharif season. Additionally, broader industry trends
such as digital transformation, increasing adoption of advanced crop protection technologies, sustainable agricultural
practices, and opportunities arising from global supply chain realignments continued to shape the long-term outlook
of the agrochemical industry in India.

4. REGULATORY ORDER FOR GLYPHOSATE USE

In October 2022, the Central Government ("Government") issued a Notification ("Notification") mandating that
Glyphosate, a broad spectrum weedicide and an important product for the Company, will be used only through
Pest Control Operators. Industry players and associations have filed petitions ("Petitions") before the Hon'ble Delhi
High Court ("Hon'ble Court") challenging the Notification. In the course of hearings in the matter, the counsel of the
Government has stated that the Notification will not be implemented till the disposal of the Petition. The Petitions are
pending before the Hon'ble Court.

5. NEW PRODUCTS/IMPROVEMENTS/EXPANSIONS

The Company continues to maintain ISO 9001, ISO 14001 and ISO 45001 certifications for the manufacturing sites.
The Company has also initiated implementation of 5S Workplace Management System, Total Productive Maintenance
(TPM) System and Behaviour based safety with a view to achieve higher efficiency, productivity and enhance safety
management system. The quality of products is maintained and upgraded to the applicable national and international
standards through rigorous pursuit of the quality management systems. The Company continues to enjoy the reputation
of a consistent and reliable quality supplier.

I n the year under review, your Company continued to pursue initiatives to optimise utilisation of its manufacturing
facilities, launch new products and install manufacturing capacities to supply new products in domestic and
international markets. The Company continues to take initiatives for introducing new technical grade products and for
expanding production capacities.

The Company introduced six new products during the year and continues to focus on scaling up recently launched
products, particularly in the agrochemical and biostimulant segments, which are considered critical for long term
sustainable growth. Further, the Company has plans to introduce four new patented products during the financial year
2026-27, reinforcing its commitment to innovation and differentiated offerings.

During the year, the Company also continued to pursue its flagship demand generation initiative, "Every Day Farmers'
Day" (EDFD), which was further strengthened through a more focused and high-intensity engagement approach. The
campaign enabled direct interaction with over 1.4 million farmers, significantly enhancing farmer connect and channel
partner engagement. Supported by robust digital tracking mechanisms, the initiative provided real-time insights to the
leadership team and contributed to improved field execution and organizational alignment.

6. OUTLOOK

Agriculture continues to play a vital role in the Indian economy, contributing approximately 15% to the country's GDP
and providing livelihoods to nearly half of the population. While the relative share of agriculture in GDP has moderated
over time due to the rapid growth of other sectors, its strategic importance remains significant. The domestic
agrochemical market continues to be driven by increasing food demand arising from population growth, along with a
growing emphasis on improving crop productivity and quality.

Government initiatives aimed at enhancing farmer income and strengthening rural infrastructure, including Minimum
Support Prices (MSPs), direct income support schemes such as PM-KISAN, and continued budgetary allocations to
the agriculture sector, are expected to support the long-term growth of the industry. Additionally, Indian agrochemical
companies continue to strengthen their position in global markets, with exports constituting a significant share of
industry revenues.

While the medium-term outlook for the industry remains positive, the near-term environment is expected to remain
challenging. Following a year impacted by adverse weather conditions, the sector faces continued uncertainty due to
unpredictable climatic patterns, including the potential influence of El Nino. These conditions may impact cropping
patterns, farm incomes, and input consumption.

At the same time, the industry is likely to witness cost pressures driven by a depreciating Indian Rupee and rising costs
of raw materials, packaging materials, solvents, and logistics. These factors are expected to increase the cost of goods
and may necessitate price adjustments across product categories. Additionally, global geopolitical developments and
evolving trade dynamics may further influence supply chains and market conditions.

I n this context, the Company remains focused on navigating these challenges through prudent cost management,
continued emphasis on innovation, strengthening of its product portfolio, and enhanced farmer engagement. With
its strong market presence and strategic initiatives, the Company is well-positioned to leverage long-term growth
opportunities in the agrochemical sector.

7. SAFETY, HEALTH AND ENVIRONMENT

The Company remains committed to reducing its environmental load, enhancing safety, improving quality, and
optimizing costs. The Company continues to play the role of a responsible corporate citizen in the fulfilment of its
objectives of protecting and enriching the environment and human health and safety. The Company has also adopted
Responsible Care Policy and its initiatives demonstrate its commitment towards comprehensive approach for
safeguarding environment, health and safety of all stakeholders and aims at achieving and sustaining high standards
of performance. The Company regularly reviews and monitors its Quality, Environment, Health, and Safety (QEHS)
policies and sustainability initiatives to drive continuous improvement.

The Company's commitment to its safety management programs follows a top-down approach towards establishing,
demonstrating, sustaining and improving the safety culture and incorporating the Company's core value of safety
in people's daily responsibilities. Regular Safety audit, RC audits, inspections, training programs, safety promotional
activities, safety meetings and other safety activities are carried out at regular intervals to strengthen the safety culture.
The Company has adopted plastic waste management process to minimize the amount of ‘post-use plastic waste' in
the environment through a plastic credit platform dedicated to collection, segregation and recycling of such waste.
The Green initiatives of the company include the use of wind and solar energy, sewage water treatment, rainwater
harvesting to improve environment and conservation of natural resources. The Company continues to work towards
reducing greenhouse gas emissions in line with Science Based Targets, supporting long-term sustainable economic
and social development.

8. EDUCATION, LEARNING AND HUMAN RESOURCES

Our people are the cornerstone of our progress, and their continuous development is fundamental to our long-term success.

At Sumitomo Chemical India Limited, education, continuous learning, and human capital development remain integral
to its long-term growth strategy. The Company continues to invest in building a future-ready workforce through
structured training programs, leadership development initiatives, and cross-functional exposure aimed at enhancing
technical, managerial, and behavioural competencies, while fostering a culture of innovation, safety, and regulatory
compliance. The learning ecosystem is supported by a blend of digital platforms, on-the-job training, and expert-led
interventions to ensure continuous upskilling in line with evolving industry requirements.

The Company also places strong emphasis on the selection and retention of talent, with a focus on knowledge, skills,
attitude, and cultural alignment. Employee feedback mechanisms are actively leveraged, and relevant, value-adding
suggestions are implemented to strengthen organizational effectiveness and enhance employer brand perception,
thereby supporting talent attraction and retention.

During the year, the Company continued its structured capability-building initiatives, including "Project Sanvaad (w^)"
to enhance cross-functional collaboration; the "EDGE and Unnati Workshop Series" to address skill gaps and build a
robust leadership pipeline; and "Project Disha" to provide focused development support to high-potential employees
and key contributors critical to the organization.

Further, the Company has implemented an e-learning platform, "Zing Learn", through its HRIS portal, "Sumi Pulse",
which is being effectively utilized for compliance and developmental training programs. The Sumi Pulse platform,
designed with a user-friendly interface, also facilitates employee engagement through features such as surveys, polls,
online reward and recognition, and organizational communications.

Through continuous learning and people-centric initiatives, we remain committed to building a resilient and future-ready
organization.

9. INSURANCE

The Company continues to carry adequate insurance cover for all its assets against foreseeable perils like fire, flood,
earthquake, etc. and continues to maintain the Liability Policy as per the provisions of the Public Liability Insurance Act.

10. SUBSIDIARY COMPANIES

Highlights of the financial performance of Barrix Agro Sciences Private Limited, subsidiary, are as follows:

The Company has obtained a certificate from the Statutory Auditors to the effect that the Company is in compliance
with the FEMA Regulations with respect to the downstream investment made by it in Barrix Agro Sciences Private
Limited.

Excel Crop Care (Africa) Limited, the Company's Tanzania based unlisted and non-material subsidiary, is under
voluntary winding up process. The Company holds 99.9% of the equity share capital of Excel Crop Care (Africa) Limited.
Its winding up is not likely to materially impact business, commercial activities or financial position of the Company.
Financial statements of the subsidiaries have been considered for preparation of consolidated financial statements.
The Financial Statements and the Reports of the Board of Directors and the Auditors of Barrix Agro Sciences Private
Limited are being posted on the Company's website: www.sumichem.co.in.

11. DISCLOSURE UNDER THE COMPANIES ACT, 2013

Information pursuant to various disclosure requirements prescribed under the Companies Act, 2013 and rules
thereunder, to the extent applicable to the Company, is given below. Some of the disclosures have been included at
appropriate places in the Corporate Governance Report which forms part of the Board's Report.

a) Energy Conservation, Technology Absorption and Foreign Exchange earnings and outgo:

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo
stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts)
Rules, 2014, is given in Annexure I.

b) Annual Return:

Annual return as on 31 March 2025 in form MGT-7 filed with the Ministry of Corporate Affairs is available on the
Company's websitehttps://sumichem.co.in/content/uploads/AB6621633 signed certified-19-09-2025-09-40-05.pdf

Annual return as on 31 March 2026 in form MGT-7 will also be posted on the Company's website after the same
is filed with the Ministry of Corporate Affairs.

c) Policy on Directors' appointment, Remuneration Policy and information regarding remuneration:

Particulars of the Company's Policy on Directors' appointment, Remuneration Policy and information pursuant to
Rule 5(1) of the Companies (Appointment & Remuneration) Rules, 2014 are given in Annexure II.

d) Particulars of Loans, Guarantees and Investments:

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

e) Related Party Transactions:

All contracts/arrangements/transactions entered by the Company during the financial year with related parties
were on an arm's length basis.

All related party transactions are placed before the Audit Committee for their approval. Prior omnibus approval of
the Audit Committee is obtained for the transactions which are of a repetitive nature. The transactions entered
into pursuant to the omnibus and specific approvals are reviewed periodically by the Audit Committee.

Pursuant to the provisions of Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 ("LODR"), all material related party transactions require approval of the members through a
resolution. Schedule XII to LODR read with regulation 23(1) of LODR specify transactions which are considered as
"material transactions".

During the year, the Company entered into transactions with Sumitomo Chemical Company, Limited, Japan, the
holding company, which are considered ‘material transactions' in terms of LODR. The shareholders had accorded
their approval to the transactions with Sumitomo Chemical Company, Limited through an ordinary resolution
passed at the annual general meeting held on 04 August 2025.

The Company is seeking approval of the shareholders, through an ordinary resolution at the ensuing annual
general meeting, for the transactions entered into/proposed to be entered into with the holding company during
the financial year 2026-27 for an amount not exceeding ' 16,235 million.

Form for disclosure of particulars of material transactions entered into by the Company with Sumitomo Chemical
Company, Limited, Japan, a related party, as required under Section 188(1) of the Companies Act, 2013 on an arm's
length basis are summarised in Form AOC-2 in Annexure IN.

The same are also given in note 39 to the Standalone Financial Statements.

The Company's Policy on related party transactions as approved by the Board may be accessed on the Company's
website:https://sumichem.co.in/pdf/25-26/modified-rpt-policy-2026.pdf

f) Business Risk Management:

The Board has constituted Risk Management Committee pursuant to the provisions of Regulation 21 of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 to identify and monitor risks faced by
the Company.

The Committee deliberates on the major enterprise and business risks identified by the management, analysis
of their impact and mitigation measures for addressing the risks. The major risk areas identified relate to risks
associated with material procurement and manufacturing operations, regulatory risks, cyber security / IT related
risks, human resources related risks, currency risks, credit risks mainly associated with exports and insurance
adequacy risks.

In opinion of the Board, there is no element of risk which may pose serious threat to the existence of the Company.

g) Evaluation of performance of the Board, Committees of Directors and Individual Directors:

The Board has adopted a formal mechanism for evaluating its performance as well as that of its Committees
and individual Directors, including performance of the Chairman of the Board. As a part of this mechanism, a
structured questionnaire, approved by the Company's Nomination and Remuneration Committee, is used to carry
out evaluation of performance of the Board, Committees of Directors and individual Directors. The questionnaires
take into consideration various criteria and factors.

h) Material orders passed by the regulatory authorities or courts/material changes or commitments:

There are no material orders passed by regulators or courts which can impact the going concern status of the
Company and its future operations. There are no material changes or commitments occurring after 31 March 2026
which may affect the financial position of the Company.

i) Internal Financial Controls and their adequacy:

The Company has adequate system of internal controls to safeguard and protect from loss, unauthorised use or
disposition of its assets. All the transactions are properly authorised, recorded and reported to the management.
The Company is following all the applicable Accounting Standards for proper maintenance of books of accounts
and for financial reporting.

j) Disclosure relating to Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013:

The Company has complied with the provisions relating to constitution of Internal Complaints Committee under
the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

During the year 2025-26, the Company did not receive any complaint of sexual harassment. There were no
complaints pending at the beginning and at the end of financial year.

k) Disclosure relating to Maternity Benefit Act, 1961.

The Company has complied with the provisions of the Maternity Benefit Act, 1961.

l) Performance of subsidiaries:

Details of performance and financial position of the subsidiary companies are given in Form AOC-1 in Annexure IV.
The Company has no associate company.

m) Corporate Social Responsibility (CSR) initiatives:

The Company has formulated its Corporate Social Responsibility Policy which is posted on its website:

https://sumichem.co.in/pdf/Corporate%20Social%20Responsibility%20Policy.pdf

A brief outline of the Policy and the Annual Report on CSR Activities is given in Annexure V.

n) Particulars of Employees:

The information required under Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in Annexure VI.

o) Secretarial Audit Report:

The Report of M/s M K Saraf & Associates LLP, the Secretarial Auditors, is attached as Annexure VII.

p) Secretarial Standards:

The Company has complied with the applicable ‘Secretarial Standards on Meetings of the Board of Directors - SS 1'
and ‘Secretarial Standards on General Meetings - SS 2'.

12. DIRECTORS AND KEY MANAGERIAL PERSONNEL

Dr Suresh Ramachandran, Deputy Managing Director, retires by rotation and being eligible, offers himself for
reappointment.

The second term of Dr Mukul G Asher, Independent Director, would conclude on 31 August 2026.

The Board places on record its deep appreciation for Dr Mukul G Asher's immense contribution in Board and Committee
deliberations and in formulating business strategies and policies and business planning and in the areas of risk
management, business systems, procedures and processes, internal control and governance.

The tenures of Mr Chetan Shah, Managing Director and Mr Sushil Marfatia, Executive Director, would come to an end
on 31 August 2026. The Board places on record its deep appreciation for rich contribution of Mr Chetan Shah and
Mr Sushil Marfatia in leadership provided to the Company and in growing its business over the years.

I n view of his experience, expertise and knowledge of the industry and his familiarity with the Company and its
business, it is proposed to appoint Mr Chetan Shah as Non - Executive Non - Independent Director of the Company
with effect from 01 September 2026 to ensure that the Company continues to benefit from his guidance, knowledge,
experience and expertise. An ordinary resolution seeking consent of the members for appointment of Mr Chetan Shah
as Non - Executive Non - Independent Director forms part of the notice of the ensuing annual general meeting.

The first term of Mr N Sivaraman, Independent Director, would conclude on 31 August 2026.

Mr N Sivaraman is proposed to be reappointed as Independent Director for the second term for a period of 3 (Three)
consecutive years from 01 September 2026 up to 31 August 2029 subject to Special Resolution to be passed by the
members at the annual general meeting to be held on 27 July 2026.

1 n opinion of the Board, Mr N Sivaraman, the Independent Director proposed to be reappointed, is person of high
integrity and possesses relevant expertise and experience.

A Special Resolution proposing appointment of Mr Anand Mohan Tiwari as independent Director for a term of

2 (two) consecutive years from 31 August 2026 up to 30 August 2028, forms part of the notice of ensuing annual

general meeting. In the Board's opinion, Mr Anand Mohan Tiwari is a person of high integrity and possesses relevant
expertise and experience and his appointment will be beneficial to the Company.

The Board of Directors, at its meeting held on 26 May 2026, has approved to promote Dr Suresh Ramachandran to
the position of Managing Director with effect from 01 September 2026 for the remainder period of his current term as
Deputy Managing Director i.e. up to 31 may 2028.

At the ensuing annual general meeting, a Special Resolution is proposed for obtaining consent of the members for
promotion of Dr Suresh Ramachandran, Deputy Managing Director, to the position of Managing Director with effect
from 01 September 2026 for his existing tenure up to 31 May 2028.

13. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors confirm that:

(a) in the preparation of the annual accounts, the applicable accounting standards have been followed and that no
material departures have been made from the same;

(b) they have selected such accounting policies and applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end
of the financial year and of the profit of the Company for that period;

(c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities;

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

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

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

Based on the framework of internal financial controls and compliance systems established and maintained by the
Company, the work performed by the internal, statutory and secretarial auditors and external consultants, including
the audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by
management and the relevant board committees and the management's assessment of adequacy and effectiveness of
internal financial controls, the Board is of the opinion that the Company's internal financial controls were adequate and
effective during the year 2025-26.

Messrs BSR & Co. LLP, the statutory auditors, who have audited the Company's financial statements for the year
2025-26, have given their report on the Company's internal control over financial reporting as defined by Section 143 of
the Companies Act, 2013, which Report is annexed as Annexure B to the Independent Auditor's Report.

14. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

Business Responsibility and Sustainability Report (BRSR) prepared in the prescribed form pursuant to Regulation 34
of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in relation to initiatives taken from
environmental, social and governance perspective, forms part of the Annual Report. Messrs Chokshi & Chokshi LLP,
Chartered Accountants, have given certificate of assurance in relation to BRSR Core of the Company for FY 2025-26,
the certificate is enclosed with the Business Responsibility and Sustainability Report.

15. CORPORATE GOVERNANCE

Your Company is committed to the principles of good corporate governance and the Board of Directors lays strong
emphasis on transparency, accountability and integrity. Your Company has complied with all the requirements of the
Code of Corporate Governance contained in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
and, pursuant thereto, Management Discussion and Analysis and the Corporate Governance Report are annexed and
form part of the Annual Report.

16. AUDITORS' REPORTS

The Independent Auditor's Reports on Financial Statements, including Consolidated Financial Statements, of the
Company for the year ended 31 March 2026, issued by Messrs BSR & Co. LLP, the Auditors, are enclosed with the
Financial Statements in this Annual Report. The Independent Auditors' Reports are unmodified and do not contain any
qualification, reservation or adverse remark.

17. COST RECORDS AND COST AUDIT REPORT

The Company prepares and maintains cost records as specified by the Central Government under Section 148(1)
and rules made thereunder. The cost records for the year 2024-25 were subjected to cost audit by Messrs GMVP &
Associates LLP, Cost Auditors. The Cost Audit Report for the financial year 2024-25 issued by the Cost Auditors was
filed with the Ministry of Corporate Affairs on 25 August 2025 vide SRN: AB6200708.

18. ACKNOWLEDGEMENTS

Your Directors wish to place on record their sincere appreciation of the wholehearted co-operation received from the
Company's Shareholders, Bankers, various authorities of the Governments and business associates.

For and on behalf of the Board of Directors

CHETAN SHAH SUSHIL MARFATIA

Managing Director Executive Director

Mumbai, 26 May 2026 DIN: 00488127 DIN: 07618601