Vimta Labs Limited
Registered Office
142, IDA Phase II, Cherlapally
Hyderabad-500 051, Telangana, India
T: +91 40 2726 4141
F: +91 40 2726 3657

Vimta
Driven by Quality. Inspired by Science.

VLL\SE\019\2026-27

Date: 01.06.2026

| BSE Limited,
P J Towers, Dalal Street,
Mumbai - 400001.
Scrip Code: 524394 | National Stock Exchange of India Limited,
“Exchange Plaza”, Bandra, Kurla Complex,
Bandra (E), Mumbai – 400051.
Trading Symbol: VIMTALABS |
| --- | --- |

Dear Sir/Madam,

Sub: Submission of Annual Report along with notice of Annual General Meeting (AGM) and Business Responsibility and Sustainability Report (BRSR) for the Financial Year 2025-26 pursuant to Regulation 34 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Ref: Our letters dated 06th May 2026 –
1. Outcome of the Board Meeting (ref no. VLL\SE\008\2026-27)
2. Recommendation of Dividend (ref no. VLL\SE\011\2026-27)

With reference to the subject cited above, please find enclosed herewith a copy of the Annual Report of the Company for FY 2025–26, together with the Notice of the 36th AGM and the Business Responsibility and Sustainability Report (BRSR).

Further, in accordance with Regulation 36(1)(b) of the SEBI (LODR) Regulations, 2015, the Company is also sending a letter to those shareholders whose e-mail addresses are not registered with the Company/RTA/DPs, providing the weblink from which the Annual Report can be accessed on the Company’s website.

The brief details of the 36th Annual General Meeting and record date are as follows: -

Sl. No.	Event	Details
1	36th Annual General Meeting is scheduled on	Day, Date & Time
Thursday, 25th June 2026; 10:00 a.m. (IST)
2	Place of meeting – Deemed to be registered office of the Company	Through Video Conference (VC)/Other Audio Visual Means (OAVM)
Details of Remote e-voting
3	i. Cut-off date for voting by the members and participation in AGM through VC and
ii. Record date for payment of Dividend (if approved by the shareholders)	Thursday, 18th June 2026
	E-Voting will commence on	Monday, 22nd June 2026 at 09:00 a.m. (IST)
	E-Voting will end on	Wednesday, 24th June 2026; 05:00 p.m. (IST)

SUJANI VASIREDDI
Digitally signed by SUJANI VASIREDDI
Date: 2026.06.01
13:46:43 +05'30'

Plot No. 5, Life Sciences Facility, Neovantage Science & Technology Park Private Limited, Shamirpet, Genome Valley, Turkapally
Medchal-Malkajgiri, Hyderabad-500 101, Telangana, India. T: +91 40 6740 4040 E: [email protected] URL: www.vimta.com
CIN: L24110TG1990PLC011977

Vimta Labs Limited
Registered Office
142, IDA Phase II, Cherlapally
Hyderabad-500 051, Telangana, India
T : +91 40 2726 4141
F : +91 40 2726 3657

Vimta
Driven by Quality. Inspired by Science.

The notice and Annual report are also available on the Company’s website at

Notice - https://vimta.com/wp-content/uploads/Notice-of-36-AGM-2026.pdf
Annual Report - https://vimta.com/wp-content/uploads/36th-Annual-Report-2026.pdf

This is for your information and records.

Thanking you,

For Vimta Labs Limited

SUJANI
VASIREDDI
Digitally signed by SUJANI VASIREDDI
Date: 2026.06.01
13:47:08 +05'30'

Sujani Vasireddi
Company Secretary & Compliance Officer

Encl. as above

Plot No. 5, Life Sciences Facility, Neovantage Science & Technology Park Private Limited, Shamirpet, Genome Valley, Turkapally
Medchal-Malkajgiri, Hyderabad-500 101, Telangana, India. T : +91 40 6740 4040 E : [email protected] URL : www.vimta.com
CIN : L24110TG1990PLC011977

Vimta

Driven by Quality. Inspired by Science.

36th

ANNUAL

REPORT

2026

Our Core Values

The Foundation of Our Success

At the heart of our business lies a steadfast commitment to integrity, honesty, and responsibility. True success is built on trust, which is why we maintain an uncompromising focus on delivering quality and exceptional customer service at every step.

We are equally dedicated to fostering a culture of respect - toward our team members, partners, customers, suppliers, and everyone we engage with. These values are not just words; they guide every decision we make and every action we take. Upholding these principles is what drives us forward and ensures that we continue to grow with purpose and accountability.

व्रणीमु | नेपालीमु | महाप्रभु | महाप्रभु

Forward Looking Statements

Some of the information contained herein is for general information purposes only and should not be considered as a recommendation that any investor should subscribe/purchase the company's shares. The Company makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, any forward-looking statements made herein. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. Important factors that could cause actual results to differ materially from our outlook include, amongst others, general economic and business conditions in India and abroad, ability to successfully implement our strategy, our growth & expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global industries that we serve, increasing competition, changes in political conditions in India or any other country and changes in the foreign exchange control regulations in India. Neither the company, nor its Directors and any of the affiliates or employees have any obligation to update or otherwise revise any forward-looking statements. The readers may use their own Judgement and are advised to make their own calculations before deciding on any matter based on the forward looking statements given herein.

When we use the terms "VIMTA," "Vimta Labs Ltd.", the "Company," "we," "us" or "our" in this Annual Report, we mean Vimta Labs Limited as a whole, unless the context indicates otherwise.

Website and Social Media Disclosure

We use our website (www.vimta.com) and our LinkedIn accounts as channels of distribution of Company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, Securities and Exchange Board of India (the "SEBI") filings (Filings on BSE and NSE Platform) and public conference calls and webcasts. The contents of our website and social media channels are not, however, a part of this Annual Report.

Trademarks

All trademarks, trade names, graphics and logos of VIMTA contained herein are trademarks or registered trademarks of Vimta Labs Ltd., as applicable, in India. All other party trademarks, trade names, product names, graphics and logos which may be contained herein are the property of their respective owners. The use or display of other parties' trademarks, trade names, product names, graphics or logos is not intended to imply, and should not be construed to imply, a relationship with, or endorsement or sponsorship of VIMTA or by such other party. Solely for convenience, we may refer to trademarks in this Annual Report without the TM and ® symbols. Such references are not intended to indicate in any way, that we will not assert, to the fullest extent permitted by law, our rights to our trademarks. Other trademarks appearing in this Annual Report are the property of their respective owners.

Industry and Market Data

Market data used throughout this Annual Report is based on management's knowledge of the industry and the good faith estimates of management. All of management's estimates presented herein are based on industry sources, including analyst reports and management's knowledge. We also relied, to the extent available, upon management's review of independent industry surveys and publications prepared by a number of sources and other publicly available information. We are responsible for all of the disclosure in this Annual Report and while we believe that each of the publications, studies and surveys used throughout this Annual Report are prepared by reputable sources and are generally reliable, we have not independently verified market and industry data from third-party sources. All of the market data used in this Annual Report involves a number of assumptions and limitations and therefore is inherently uncertain and imprecise, and you are cautioned not to give undue weight to such estimates. Projections, assumptions and any estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in Risks & Concerns section, in Management Discussion and Analysis, of this Annual Report and elsewhere in this Annual Report. These and other factors could materially impact the outlooks and beliefs discussed in this annual report.

36th Annual Report, 2025 - 26

PAGE INTENTIONALLY LEFT BLANK

Vimta Labs Limited
Table of Contents

		Page No.
1.	Corporate Information	02
2.	Performance Trend at a Glance	04
3.	Board’s Report	06
4.	Annexures to Board’s Report (Annexure I to Annexure IX)	28
5.	Corporate Governance Report (Annexure A)	56
6.	Annexures to Corporate Governance Report (Annexure X to Annexure XIII)	73
7.	Business Responsibility and Sustainability Report (Annexure B)	77
8.	Independent Auditor’s Report on Financial Statements	105
9.	Balance Sheet	114
10.	Statement of Profit and Loss	115
11.	Statement of Cash Flows	116
12.	Statement of Changes in Equity	118
13.	Material Accounting Policies and explanatory notes forming part of the Financial Statements	119

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Corporate Information

CORPORATE INFORMATION

Board of Directors

Dr. Sivalinga Prasad Vasireddi
Executive Chairman
DIN: 00242288

Ms. Harita Vasireddi
Managing Director
DIN: 00242512

Ms. Prameela Rani Yalamanchili
Independent Director
DIN: 03270909

Mr. Purnachandra Rao Gutta
Independent Director
DIN: 00876934

Mr. Harriman Vungal
Executive Director – Operations
DIN: 00242621

Mr. Satya Sreenivas Neerukonda
Executive Director
DIN: 00269814

Mr. Sanjay Dave
Independent Director
DIN: 08450232

Dr. Yadagiri R Pendri
Independent Director
DIN: 01966100

Key Managerial Personnel

Ms. Sujani Vasireddi
Company Secretary & Compliance Officer

Mr. Siva Rama Krishna Kambhampati
Chief Financial Officer

Auditors

Statutory Auditors
Gattamaneni & Co.
(Firm Reg. No 009303S)
Chartered Accountants,
Flat No. 404, Hardhik Anmol,
Road No. 10, Kakateeya Hills,
Madhapur, Hyderabad - 500081,
Telangana, India

Secretarial Auditors
D Hanumanta Raju & Co.
Company Secretaries,
B-13, F-1, P.S. Nagar,
Vijayanagar Colony,
Hyderabad - 500057,
Telangana, India

Cost Auditors
Lavanya & Associates LLP,
(LLP Identification Number:
ACO-7111)
Cost Accountants,
6-7-217 38/B, Bansilalpet,
Near Bible House,
Secunderabad,
Hyderabad- 500003,
Telangana, India

Internal Auditors
Chaitanya V & Associates,
Chartered Accountants,
502, Krishna Kuteer, Plot
45, Road 2,
West Marredpally,
Secunderabad – 500 026,
Telangana, India

Bankers/Financial Institutions	Registrar & Share Transfer Agent	Registered Office	Life Sciences Facility
Axis Bank Limited.
HDFC Bank Limited.
The South Indian Bank Limited.	CIL Securities Limited
214, Raghava Ratna Towers
Chirag Ali Lane, Abids
Hyderabad - 500001,
Telangana, India	Vimta Labs Limited
141/2 & 142, IDA,
Phase-II, Cherlapally,
Hyderabad – 500051,
Telangana, India	#5, Neovantage Innovation Parks, Genome Valley, Shameerpet,
Hyderabad – 500101,
Telangana, India
Genome Valley, Shamirpet,
Hyderabad – 500101,
Telangana, India

36^{\mathrm{th}} Annual Report, 2025 - 26

Corporate Information

CORPORATE INFORMATION

OUR VISION

To be seen as an Indian organization with a global perspective that has created an integrated, quality driven, customer sensitive Contract Research and Testing service platform, which is the most comprehensive of its kind across the globe.

OUR CORE VALUES

Integrity of service through honesty, responsibility and an uncompromising commitment to Quality and Customer service.
Respect for all our team members, partners, customers, suppliers, and all other people our business interacts with.

OUR CREDO

The values, beliefs and principles that guide us in our decisions and actions.

We believe our work impacts the wellbeing of millions of people across the globe. Our responsibility is to the end consumers, patients, and all others who use the products we help discover or develop and test for quality. In protecting the interests of these key stakeholders, everything we do must be with integrity, honesty, responsibility and of high quality.

We are strongly committed to provide value to our customers in terms of scientific knowledge, time and cost. Regulatory and quality system compliance must be the corner stone for our services. Customers' orders must be serviced as per promised timelines and accurately.

Our partner vendors must have fair and transparent opportunities to grow their business with us.

We are responsible to our employees to provide a safe, harmonious, and unbiased work environment where we are committed to each person's individual learning and development. Employees must feel valued and believe that each one of them contributes to the success and growth of the organization, and that their work impacts the society beneficially. We must respect them, recognize their merit, and encourage them to make suggestions and complaints. We must support the health and well-being of our employees and help them to fulfill the needs of their work-life balance. There must be equal opportunity for employment, development, and advancement for those qualified. We must have highly capable leaders and their actions must be just and ethical. Compensation must be fair and working conditions safe, clean, and orderly.

We acknowledge our responsibility to the communities and environment in which we live and work. We must be a good corporate citizen and contribute to the development of weaker sections of society. We must be a good corporate citizen and abide sincerely with all applicable laws and good governance practices. We must protect and even try to enrich the environment we live in, and also consciously use the natural resources that we are privileged to have.

Our final responsibility is to our shareholders. Our business must have intrinsic potential to flourish and make a sound profit. We must plan well for growth and sustainability and execute our plans well. We must pay close attention to the markets we work in and continuously evaluate the opportunities and risks to act upon. We must innovate our services to stay relevant to market needs and make investments with balance. We have to build state-of-the-art facilities, maintain current and reliable technologies, and use materials that befit the purpose of our activities. Capacities must be enhanced, and expansions must be pursued. Reserves must be created to provide for adverse times. When we operate according to these fundamental principles, the shareholders should realize a fair return.

OUR COMPANY (State of the Company's affairs)

Vimta Labs Ltd., originally established in 1984 as a Partnership firm, is India's most comprehensive contract research and testing organization, providing a wide range of services to pharmaceutical, biopharmaceutical, food, consumer goods, electronic, electrical, agrochemical, medical device, power, cement, oil & gas, ores & minerals, infrastructure and many other industries, government organizations as well as other industry participants. Over the span of 40+ years, we have developed a track record of consistent quality, delivery and continuous innovation that has enabled us to grow faster than our underlying markets and deliver strong financial results. We believe our scientific expertise, along with our cutting-edge technologies and knowledge of applicable regulatory requirements help our customers bring to market safe and quality products and maximize returns on their outsourcing spends. Broadly, these services include:

Drug discovery, development, and drug life cycle management support services in the areas of preclinical research, clinical research and analytical services for biopharmaceutical companies;
Contact research and development of biologics and peptides;
Preclinical research and testing services for medical device companies;
Contract research and testing for agrochemical and specialty chemical companies;
Food testing and analytical development services to support manufacturers, processors, farmers, retailers, traders, exporters and regulators (viz. FSSAI, BIS, APEDA, EIC, etc);
VIMTA's Food Lab in Hyderabad is a National Reference Lab for testing of Water, Alcoholic & Non-Alcoholic Beverages;
VIMTA setup and operates the National Food Laboratory at Navi Mumbai, under PPP model with FSSAI. The contract was awarded to VIMTA in 2021 with a term of 25 years;
Post project monitoring to various industries such as power, infrastructure, cement, oil & gas, mining etc;
EMI/EMC testing for electronic and electrical products/components. Electrical/Electronic safety, Environmental and physical security products testing.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Performance Trend at a Glance

PERFORMANCE TREND AT A GLANCE

Net Worth
Amount in ₹ Million

RoCE%

Debt - Equity Ratio

Total Income
Amount in ₹ Million

36^{\mathrm{th}} Annual Report, 2025 - 26

Performance Trend at a Glance

PERFORMANCE TREND AT A GLANCE

Domestic Vs Export Revenue
Amount in ₹ Million

EBITDA
Amount in ₹ Million

PBT
Amount in ₹ Million

EPS
Amount in ₹

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Board's Report

BOARD'S REPORT

Dear Members,

Your Directors are pleased to present the 36th Annual Report together with the Audited Financial Statements of the Company for the financial year ended 31st March 2026.

1. PERFORMANCE

Your Company reported revenue of ₹4,162.79 million for the financial year under review, as compared to ₹3,482.22 million in the previous financial year, recording a growth of 19.54%. The EBITDA margin stood at 35.8%, compared to 36.2% in the previous financial year.

The financial performance of the Company for the year ended 31st March 2026 is summarized below:

(₹ in millions)

Sl. No.	Particulars	Year ended 31st March 2026	Year ended 31st March 2025
I	Total Income	4162.79	3,482.22
	i) Expenses other than Finance costs and Depreciation	2657.71	2,220.33
	ii) Finance costs	11.67	19.00
	iii) Depreciation	437.72	352.89
II	Total Expenses (i+ii+iii)	3107.10	2,592.22
	PBT (I-II) – Before Exceptional Item	1055.69	890.00
	Less: Exceptional Item #	16.16	-
III	PBT- After Exceptional Item	1039.53	890.00
IV	Tax Expense	264.41	222.45
V	PAT (III-IV)	775.12	667.55
VI	Profit/(Loss) for the period from discontinued operations	-	5.87
VII	PAT from continued & discontinued operations (V+VI)	775.12	673.42
VIII	Other comprehensive (loss) / income	(0.58)	(0.37)
IX	Total Comprehensive income for the year (VII+VIII)	774.54	673.05

Statutory impact of new Labour Codes

2. MANAGEMENT DISCUSSION AND ANALYSIS

A. Macro Economy

Global Economy

The global economy entered the year on a stable footing, supported by resilient output and steady investment momentum. Early-year estimates projected global GDP growth at 3.3% for 2026 and 3.2% for 2027 according to the January 2026 IMF Update. Inflation was expected to continue moderating, with global headline inflation easing to 3.8% in 2026 and 3.4% in 2027. Against this backdrop, several major economies were positioned for solid performance: the United States was projected to grow 2.4% in 2026 supported by fiscal policy and lower policy rates, while India was expected to expand at 6.4% in 2026 owing to strong underlying momentum and a positive tariff environment. Global trade volumes were anticipated to normalize after expanding 4.1% in 2025.

However, the economic landscape shifted following the outbreak of conflict in the Middle East in late February 2026, which disrupted energy markets and critical shipping routes. The oil prices which previously were expected to decline are now projected to rise by 21.4% in 2026 because of supply interruptions through the Strait of Hormuz. Energy commodity prices as a whole are expected to increase by 19% in 2026. This shock prompted a downward revision of global growth to 3.1% for 2026, compared with the earlier 3.3% estimate. Global inflation projections were revised upward to 4.4%, reflecting higher energy and food costs partially tied to disrupted transport and fertilizer markets. Emerging market and developing economies particularly energy importers face the sharpest impact, with growth for this group revised down by 0.3 percentage points for 2026.

Despite these headwinds, several structural positives continue to support global activity. Advanced economies

36th Annual Report, 2025 - 26

Board's Report

are expected to record combined growth of 1.8% in 2026, while technology-related investment remains a key driver of output as firms continue to expand AI-related capital expenditure. Global trade volumes are projected to grow 2.8% in 2026 and 3.8% in 2027, supported by resilient services trade and the gradual reorientation of supply chains. Financial conditions, although affected by risk-off sentiment at the onset of the conflict, remain broadly accommodative relative to historical norms. These factors help offset the near-term drag from commodity-linked inflation and supply bottlenecks.

Outlook

Looking ahead, global growth is expected to stabilize at 3.2% in 2027, assuming a gradual normalization of energy supplies and a stabilization of geopolitical conditions. Key tailwinds include sustained productivity gains from AI investment, resilient domestic demand in several large economies, and easing trade policy uncertainty as temporary tariff measures expire or are replaced by negotiated arrangements. However, the outlook remains sensitive to persistent energy price volatility, elevated geopolitical risk, and tighter financial conditions. Under the adverse-case scenario outlined in the April 2026 WEO, global growth could slow further to 2.5% in 2026, and in a severe scenario involving prolonged energy market disruption it could approach 2%, bringing the world close to recession territory. Even so, the global economy has demonstrated considerable adaptability in recent years, and with constructive policy coordination and improving supply conditions, a gradual return to stronger medium-term growth remains achievable.

(Source: IMF January 2026, IMF April 2026)

Indian Economy

India continued to stand out as one of the fastest-growing major economies, underpinned by strong domestic demand, resilient services exports, and sustained public investment. Real GDP growth for 2025 is estimated at 7.3% in the IMF January 2026 Update and was revised upward to 7.6% in the IMF April 2026 World Economic Outlook, reflecting stronger-than-expected momentum and favourable carryover effects into 2026. Growth is projected to moderate to around 6.4–6.5% in 2026 and 2027, primarily as cyclical factors normalize, yet remains well above both the global average and peer emerging-market economies.

Inflation conditions improved markedly in 2025, aided by subdued food prices and easing supply pressures. While global commodity prices rose sharply following the escalation of conflict in the Middle East, India's inflation is expected to remain broadly contained. Consumer price inflation is projected at 4.7% in 2026, before easing to 4.0% in 2027, broadly aligned with the Reserve Bank of

India's target range. Stable labor-market conditions further support domestic demand, with unemployment projected to remain around 4.9% during 2025–2027.

The outbreak of war in the Middle East in early 2026 introduced new external risks for the Indian economy, primarily through higher global energy and food prices and increased volatility in shipping and financial markets. Oil prices are projected to rise significantly in 2026 under the baseline conflict scenario, increasing import costs for energy-dependent economies such as India. As a result, India's current account deficit is projected to widen from –0.9% of GDP in 2025 to –2.0% in 2026, before narrowing to –1.6% in 2027 as price pressures ease and services exports remain strong. Despite these pressures, India benefits from resilient remittance inflows, a competitive services sector, and improved market access following reductions in U.S. tariffs on Indian goods.

Overall, while global uncertainties have increased, India's economic fundamentals—supported by investment, formalization, and ongoing infrastructure expansion—continue to provide a degree of insulation against external shocks.

Outlook

Looking ahead, India's growth outlook remains favourable despite heightened global risks. The IMF expects India to remain a key driver of global growth through 2027, even as world output slows to 3.1% in 2026 and 3.2% in 2027 amid geopolitical tensions and tighter financial conditions. Downside risks for India stem primarily from prolonged energy price volatility, escalation of geopolitical conflicts, and slower global trade growth. At the same time, upside potential exists from faster adoption of digital technologies, continued public-sector capital expenditure, and structural reforms that enhance productivity and manufacturing competitiveness. In the baseline scenario, India is expected to sustain medium-term growth above 6.5%, reinforcing its position as one of the most resilient large economies in a challenging global environment.

(Source: IMF January 2026, IMF April 2026)

B. Industry Overview

1. Contract Research Organisation

1.1 Global Scenario

The global Contract Research Organization (CRO) market is experiencing strong growth, driven by increasing outsourcing of clinical research by pharmaceutical, biotechnology, and medical device companies. The market is projected to grow from USD 91.4 billion in 2026 to USD 175.8 billion by 2033, at a CAGR of ~9.8%, supported by rising drug development complexity and the need for cost-efficient, faster time-to-market solutions.

(Source: Coherent Market Insights)

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Board's Report

Drug Discovery services

The global drug discovery market is witnessing strong and accelerated growth, expanding from USD 124.1 billion in 2025 to USD 142.5 billion in 2026, and is projected to reach ~USD 250.5 billion by 2030, registering a CAGR of ~15%. Growth is driven by the rising prevalence of chronic and infectious diseases, increasing pharmaceutical R&D spending, and growing collaborations between biotechnology and pharmaceutical companies.

The market outlook remains highly positive, supported by advancements in molecular biology, increasing healthcare expenditure, and the need for continuous innovation in drug development. Emerging trends such as AI-driven drug discovery, personalized medicine, integration of genomics (omics data), and adoption of automation and robotics are significantly improving efficiency and accelerating drug development timelines.

Additionally, the market is witnessing structural shifts due to outsourcing to CROs and increasing use of advanced technologies such as high-throughput screening and nanotechnology. However, macroeconomic factors including geopolitical tensions, trade tariffs, and supply chain disruptions are increasing input costs—particularly for laboratory equipment and reagents—while also encouraging localization and self-reliance in certain markets.

Overall, the drug discovery market remains a critical and innovation-driven segment of the pharmaceutical industry, with strong long-term growth supported by technology adoption, rising healthcare needs, and sustained investment in R&D.

(Source: Research and Markets)

Pre-Clinical services

The global preclinical Contract Research Organization (CRO) market is witnessing steady growth, driven by increasing outsourcing of early-stage development activities and rising R&D investments.

Within this landscape, preclinical services for agrochemical and specialty chemical industries primarily comprise allied non-clinical studies such as toxicology, ecotoxicology, environmental fate, residue analysis, and regulatory dossier preparation, which are critical for demonstrating product safety and environmental compliance prior to commercialization.

Pharmaceutical, biotechnology, agrochemical, and specialty chemical companies are increasingly relying on CROs to access specialized expertise, reduce infrastructure costs, and accelerate development timelines, particularly as development pipelines become more complex and compliance requirements intensify.

Technological advancements are significantly transforming the market, with the adoption of AI/ML, 3D cell culture models, and organ-on-chip platforms enhancing predictive accuracy and reducing reliance on traditional animal testing. These innovations support improved decision-making in early-stage safety and pharmacokinetic assessments across both pharmaceutical and chemical regulatory programs.

Global demand is further driven by stringent regulations, notably Europe's REACH framework, which mandates extensive non-clinical data for both new and existing chemicals, creating sustained opportunities for global CROs. While the market is mature in North America and Europe, Asia-Pacific has emerged as the fastest-growing execution hub due to cost efficiencies and expanding regulatory adoption. Despite challenges arising from diverse regulatory requirements and high GLP compliance costs, regulatory complexity, sustainability focus, technological innovation, and outsourcing trends underpin a stable, long-term growth outlook for CROs supporting these industries.

(Source: ECHA, Market Research Future, Emergen Research, VPA Research, NCBI, Outcome Capital, Research and Markets)

Bioanalytical testing and bioavailability/bioequivalence (BA/BE) and Clinical Trials

The global bioequivalence studies market is witnessing steady growth, and projected to reach ~USD 1.35 billion by 2033, growing at a CAGR of ~7.5%. Growth is primarily driven by the rising demand for generic drugs, increasing patent expiries, and regulatory requirements mandating bioequivalence studies for drug approvals.

Clinical trials market size was estimated is projected to reach USD 158.4 billion by 2033, growing at a CAGR of 7.7% from 2026 to 2033, driven by the rising prevalence of chronic and rare diseases, advancements in precision medicine and biotechnology, the expansion of decentralized & virtual trials, and growing R&D investments by pharmaceutical and biotech companies.

Technological advancements and biosimulation are reshaping the sector by enabling virtual bioequivalence assessments and reducing dependence on extensive in-vivo studies. Growing outsourcing to CROs and the rapid expansion of clinical research infrastructure particularly in emerging markets like India and China are further accelerating market growth.

However, the market faces challenges from stringent

36^{\mathrm{th}}
Annual Report, 2025 - 26

Board's Report

regulatory requirements, high validation costs, and data quality constraints, which can increase timelines and operational complexity. Overall, the bioequivalence studies market remains a critical component of generic drug development, with stable long-term growth supported by regulatory compliance needs and the expanding global generics market.

(Source: openPR.com, Grandview research)

Outlook

The overall outlook for drug discovery, pre-clinical services, BA/BE studies, and the broader CRO sector remains strongly positive. Drug discovery is accelerating with advances in AI, genomics, automation, and sustained growth in global R&D spending. Pre-clinical services continue to expand as companies outsource complex toxicology and regulatory studies, supported by technologies like 3D cell culture and organ-on-chip. BA/BE studies show stable growth driven by rising generic drug demand, patent expiries, and biosimulation-based efficiencies. Across all segments, CROs benefit from deeper outsourcing, growing therapeutic complexity, and Asia-Pacific's rise as a cost-efficient research hub, reinforcing long-term sector resilience.

1.2 Indian Scenario

The Indian pharmaceutical Contract Research Organization (CRO) market is witnessing robust growth, supported by increasing outsourcing of drug development activities and the country's emergence as a preferred destination for clinical research. The market is projected to reach ~USD 5.0 billion by 2033, growing at a CAGR of ~9.5%.

Growth is driven by rising R&D costs, increasing patent expiries, and the need for cost optimization, prompting pharmaceutical companies to outsource clinical and pre-clinical activities. India's cost-effective healthcare ecosystem, skilled talent pool, and growing number of CROs are further strengthening its position as a global outsourcing hub.

Services-wise, clinical research dominates the market, while pre-clinical services are expected to witness the fastest growth, reflecting increasing demand for early-stage drug development support. Additionally, factors such as increasing healthcare investments, favorable regulatory environment, and logistical advantages are expected to sustain strong growth momentum. Overall, India continues to gain prominence in the global CRO landscape, driven by outsourcing trends.

(Source: Grand View Research)

Drug Discovery Outsourcing

The India drug discovery outsourcing market is witnessing strong growth, with market size projected to reach ~USD 497.7 million by 2033, growing

at a CAGR of ~10.8%. This growth is driven by increasing outsourcing by global pharmaceutical and biotechnology companies seeking cost efficiency, access to skilled scientific talent, and faster drug development timelines.

India is emerging as a key global hub for early-stage drug discovery services, supported by low operating costs (up to ~40% lower than developed markets), availability of skilled professionals, and WHO-cGMP compliant infrastructure. Demand is further supported by rising prevalence of complex and genetic diseases, increasing R&D investments, and government initiatives to strengthen the pharmaceutical ecosystem.

Segment-wise, lead identification and candidate optimization dominate the market, reflecting growing demand for early-stage discovery services, while other associated workflows are expected to witness the fastest growth. Overall, India's increasing integration into global drug development value chains and its cost-capability advantage position it as a high-growth, strategic outsourcing destination in the pharmaceutical industry.

(Source: Grand View Research)

Pre-Clinical Services

The India preclinical CRO market is witnessing strong growth projected to reach ~USD 450.9 million by 2033, growing at a CAGR of ~9.7%. Growth is primarily driven by the increasing cost and complexity of drug development, rising R&D investments, and growing pressure on pharmaceutical companies to adhere to strict timelines, thereby accelerating outsourcing of preclinical research activities.

India is emerging as a preferred destination for preclinical outsourcing, supported by its, skilled talent pool, and increasing investments from global pharmaceutical companies. Service-wise, toxicology testing dominates the market, while bioanalysis and DMPK studies are expected to witness the fastest growth, reflecting rising demand for advanced and complex testing capabilities.

Overall, the market outlook remains positive, supported by increasing global outsourcing trends, technological advancements, and India's growing integration into the global drug development value chain.

(Source: Grand View Research)

Bioanalytical testing and bioavailability/bioequivalence (BA/BE) and Clinical trials

The Bioequivalence (BE) studies market in India is projected to grow at a Compound Annual Growth

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Rate (CAGR) of 9% from 2025 to 2030, with revenue expected to reach USD 42.6 million by 2030. The broader bioanalytical testing services market in India is projected to see an even higher CAGR of 10.7% to 11.3% from 2025 to 2032/2033.

India has introduced significant regulatory reforms through the New Drugs and Clinical Trials (Second Amendment) Rules, 2026, aimed at simplifying and accelerating export-focused bioavailability and bioequivalence (BA/BE) studies. The amendment introduces a "prior intimation" route, allowing eligible low-risk BA/BE studies to commence upon online submission and acknowledgment, eliminating the need for prior regulatory approval and thereby reducing approval timelines and procedural delays.

The relaxation applies to specific study types involving already approved molecules in India or major global markets, while maintaining safeguards such as mandatory ethics approvals and exclusions for high-risk drug categories. Overall, the reform is expected to enable faster study initiation, improve turnaround times for global regulatory submissions, and enhance India's competitiveness as a hub for pharmaceutical research and export-oriented clinical studies, while retaining necessary regulatory oversight.

India's clinical trials ecosystem is expected to grow at a CAGR of 8.6% by from 2026 to 2030, supported by regulatory reforms, a large and diverse patient pool, and strong pharmaceutical capabilities. With rising global confidence and growing registrations, India is emerging as a key global hub for efficient, scalable clinical research.

(Source: Lex Counsel)

Outlook

India's life sciences outsourcing market is set for strong growth across drug discovery, preclinical research, BA/BE studies, and CRO services. Rising R&D costs, increasing patent expiries, and demand for cost-efficient development continue to drive outsourcing to India's skilled, costcompetitive ecosystem. Drug discovery outsourcing is expanding rapidly, supported by advanced capabilities and growing global integration. Pre- Clinical services and BA/BE studies are also accelerating, aided by regulatory reforms, expanding clinical research infrastructure, and rising demand for toxicology, bioanalysis, and generics development. Clinical trials market is also expanding significantly, driven by increasing global demand for cost-effective research and modernized, faster approval processes under the New Drugs and Clinical Trials (NDCT) Rules. Overall, India is strengthening its position as a high-growth global hub for pharmaceutical R&D and clinical research.

2. Pharmaceutical Analytical Testing

2.1 Global Scenario

The global pharmaceutical analytical testing market is witnessing robust growth, driven by increasing regulatory stringency, rising complexity of drug development, and the expanding pipeline of biologics and biosimilars. The market is estimated at approximately USD 10.5 billion in 2026 and is projected to reach USD 15.7 billion by 2031, growing at a CAGR of ~8.3%.

Growth is primarily supported by stringent regulatory frameworks such as evolving validation and compliance standards, which require continuous verification of analytical procedures across the drug lifecycle. Additionally, the increasing complexity of modern therapeutics including cell and gene therapies, antibody-drug conjugates, and mRNA based drugs has significantly elevated the demand for advanced analytical capabilities.

A key structural trend is the outsourcing of analytical testing to specialized contract research organizations (CROs), driven by cost optimization and the need for advanced instrumentation and expertise. Furthermore, rising scrutiny around impurities (e.g., nitrosamines) and stability testing is increasing testing volumes. Despite challenges such as high equipment costs and data security concerns, the market remains resilient, underpinned by its non-discretionary role in regulatory compliance and drug safety.

(Source: Morder Intelligence)

Pharmaceutical Analytical Testing Market
Market Size in USD Billion

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2.2 Indian Scenario

The Indian pharmaceutical analytical testing outsourcing market is witnessing strong and sustained growth, driven by increasing regulatory stringency, rising R&D investments, and the growing complexity of drug development. The market is projected to reach ~USD 780 million by 2035, expanding at a CAGR of around 8.7%.

Growth is primarily supported by the increasing shift toward outsourcing, as pharmaceutical and biopharmaceutical companies seek to optimize costs, access specialized expertise, and focus on core competencies. Heightened regulatory scrutiny and compliance requirements, particularly around quality assurance, are further accelerating demand for advanced analytical testing services.

Additionally, the expansion of biologics, personalized medicine, and complex formulations is driving the need for sophisticated testing capabilities, including characterization, impurity testing, bioassays, bioanalytical testing, stability studies, and method validation. Technological advancements such as automation, digitalization, and advanced analytical techniques are further enhancing testing efficiency and accuracy.

Overall, India is emerging as a strategic hub for pharmaceutical analytical testing outsourcing, supported by strong scientific talent, cost competitiveness, and increasing integration into global pharmaceutical value chains.

(Source: Market Research Future)

3. Testing, Inspection & Certification Market

3.1 Global Scenario

The global Testing, Inspection and Certification (TIC) market is a key enabler of quality assurance and regulatory compliance across industries. It is projected to reach USD 555.9 billion by 2033, growing at a CAGR of 3.6%. Growth is driven by increasing regulatory requirements, rising consumer awareness of safety and quality, and expanding global trade requiring adherence to international standards.

Demand for TIC services remains strong across sectors such as healthcare, food & agri, automotive, Electronics, energy, and manufacturing, supported by rapid industrialization, infrastructure development, and increasingly complex supply chains. Technological advancements, including automation, artificial intelligence, IoT, and data analytics, are enhancing efficiency, accuracy, and scalability of services.

Testing services dominate the market due to their widespread use in industrial and manufacturing processes, while certification services are expected to grow faster, driven by sustainability and regulatory needs. Although in-house services currently lead due to greater control, outsourcing is gaining traction as companies seek specialized expertise and cost efficiencies.

Manufacturing remains the largest application segment, while healthcare is expected to grow at a faster pace due to stringent safety standards. Regionally, Asia Pacific leads the market, driven by strong industrial growth and export-oriented economies such as China and India, while North America and Europe benefit from established regulatory frameworks.

Overall, the TIC market is expected to witness steady, compliance-led growth, with emerging sectors such as electric vehicles, renewable energy, and advanced manufacturing creating new opportunities, alongside increasing digitalization and outsourcing.

(Source: Grand View Research)

Food and Agricultural Testing Industry

The global food safety testing market is witnessing strong growth, driven by increasing concerns over foodborne illnesses, rising consumer awareness, and stringent regulatory requirements. The market was valued at approximately USD 26.3 billion in 2025 and is projected to reach USD 48.0 billion by 2033, growing at a CAGR of 7.8% (2026–2033). Growth is further supported by the rising consumption of processed and packaged foods, globalization of food supply chains, and parallel expansion in agricultural testing, which ensures quality and safety at the source level. Agricultural testing, involving analysis of soil, water, seeds, and fertilizers, is gaining importance due to the need for higher crop productivity, contamination control, and sustainable farming practices, with the market expected to grow at over 7% CAGR.

Demand for food safety testing is underpinned by regulatory frameworks and standards such as HACCP and ISO, as well as enforcement by authorities like the FDA and FSSAI. Increasing incidences of

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contamination, product recalls, and health risks are prompting food manufacturers to adopt robust testing protocols, while agricultural testing is being increasingly integrated into the farm-to-fork value chain to enhance traceability and quality assurance.

Technological advancements including PCR-based testing, biosensors, DNA-based agricultural diagnostics, and rapid testing methods are improving the speed, accuracy, and efficiency of testing processes, enabling real-time monitoring across both agricultural inputs and downstream food processing systems. From a segment perspective, microbiological testing dominates the food safety market due to its critical role in detecting pathogens, while soil and water analysis represent key segments within agricultural testing, driven by concerns over pollution and nutrient management.

Traditional testing methods continue to hold the largest share due to their reliability and regulatory acceptance, although rapid testing technologies are expected to grow at a faster pace due to shorter turnaround times across both domains. Meat, poultry, and seafood remain the largest application segment in food testing due to high contamination risks, while increasing demand for organic produce and precision farming techniques is driving growth in agricultural testing services.

Regionally, Europe leads due to stringent food safety regulations, while Asia Pacific is the fastest-growing region, supported by expanding food processing industries, rising agricultural modernization, and stronger regulatory enforcement in countries such as India and China. Overall, the market is characterized by growing integration between agricultural and food testing ecosystems, technological innovation, and increasing consolidation, positioning testing services as a critical enabler of food safety, sustainability, and regulatory compliance.

(Source: Grand View Research, CMI, [giiresearch.com])

Electrical and Electronics Testing

The global Electrical & Electronics (E&E) Testing, Inspection, and Certification (TIC) industry remains a critical enabler of product safety, regulatory compliance, and international trade. The market is expected to reach USD 25.58 billion by 2033, growing at a CAGR of approximately 4.5% during 2026–2033.

Growth continues to be driven by stringent regulatory standards, increasing adoption of electrified and connected devices, and the expanding scale of global electronics manufacturing. Mandatory requirements related to electrical safety, electromagnetic compatibility (EMC), and energy efficiency support

stable demand across consumer and industrial segments.

Asia Pacific remains the largest regional market, supported by strong manufacturing activity, while India is expected to record the highest growth rate over the forecast period due to rapid industrialization and strengthening compliance frameworks.

Outlook

Looking ahead, the industry outlook remains stable, with sustained demand anticipated from electrification, digitalization, and evolving regulatory requirements. Providers with strong technical capabilities, global accreditations, and digital testing infrastructure are well positioned for longterm growth.

(Source: Verified Market Reports)

3.2 Indian Scenario

The Indian Testing, Inspection and Certification (TIC) market is witnessing robust growth, driven by increasing regulatory enforcement, industrial expansion, and deeper integration with global supply chains. The market is projected to reach USD 33.2 billion by 2033, growing at a CAGR of 7.2%, significantly higher than the global average. India accounted for around 4.5% of the global TIC market in 2025 and is expected to remain one of the fastest-growing markets in the Asia Pacific region, supported by stricter compliance requirements across sectors such as food, healthcare, and electronics.

Testing services dominate the market, accounting for over 80% share, driven by strong demand across manufacturing and industrial applications. Certification services are expected to grow at a faster pace due to increasing regulatory scrutiny, export requirements, and rising focus on quality and sustainability standards. Government initiatives such as Make in India and the Smart Cities Mission, along with growth in infrastructure, pharmaceuticals, and healthcare, are further driving demand for TIC services.

Outlook

Overall, the India TIC market is expected to sustain strong growth over the medium to long term, supported by regulatory tightening, infrastructure development, and increasing participation in global trade, alongside a gradual shift toward specialized and outsourced testing and certification services.

(Source: Grand View Research)

Food Testing

The food safety testing market in India is characterized by robust expansion, driven by a compound annual growth rate (CAGR) of 9.8% from 2024 to 2033. Valued at USD 655.4 million in 2024, the market is projected

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to reach approximately USD 1.51 billion by 2033. This growth is underpinned by rising consumer awareness regarding foodborne illnesses and the increasing stringency of domestic food safety regulations.

Segment and Regional Insights

Dominant Segments: Meat, poultry, seafood, daily products, fruits and vegetables testing remains the largest application area, reflecting India's significant role in global protein exports and the high safety standards required for these commodities. Microbiological testing is the primary service requested, focusing on the detection of pathogens like Salmonella and Listeria.
Technological Shifts: There is a notable transition toward rapid testing methods, including PCR-based assays and immunoassay-based technologies, as manufacturers seek to reduce turnaround times and enhance supply chain efficiency.
Geographical Drivers: The market is concentrated in regions with high industrial activity and food processing hubs. These areas benefit from a dense network of accredited laboratories and proximity to major export ports, facilitating seamless compliance with both local and international safety mandates.

The ongoing geopolitical hostilities in Eastern Europe and the Middle East have significantly disrupted global food trade, placing food export shipments to Gulf markets at risk due to the instability of critical shipping corridors. Exports of key agricultural products have declined sharply, with rice, bananas, and other food items seeing steep drops, including reported declines of up to 58% in March 2026. Large volumes of Basmati rice and seafood remain stranded due to shipping disruptions, while instability around the Strait of Hormuz has driven up logistics, insurance, and fuel costs, causing delays and container shortages. Rising prices of imported fertilizer inputs from the Gulf are further pressuring domestic agricultural production.

These disruptions have forced a strategic pivot toward intensified shelf-life and stability testing to manage extended transit times, alongside frequent re-verification of products rerouted to alternative destination markets. Furthermore, surging energy costs and supply chain volatility for laboratory reagents have increased operational overhead, accelerating an industry wide shift toward localized, on-site testing and mobile diagnostics to de-risk quality assurance from centralized, vulnerable logistics hubs.

Outlook

The Indian market is poised for long-term sustainability as the food processing industry matures. The integration of advanced analytical tools and the expansion of third-party testing services are expected to remain key themes. As regulatory oversight continues to harmonize with global standards, the demand for comprehensive contaminant testing covering pesticides, antibiotics, toxins, and heavy metals will serve as a critical pillar for brand protection and public health safety.

(Source: Grand View Research, Money Control, NDTV, Outlook Business, Deccan Chronicle, The ET)

Electrical and Electronics Testing

India has emerged as a highgrowth market, driven by the government's push to develop a global electronics manufacturing hub and strengthen indigenous R&D capabilities, including in the defence and strategic sectors. The expansion of mandatory BIS certification continues to create stable, non-discretionary demand for domestic TIC services, while India has become the fastest-growing TIC submarket in Asia-Pacific, supported by up to USD 5 billion in production-linked incentives. Under the Atmanirbhar Bharat framework, scaling domestic manufacturing alongside defence-related R&D in areas such as aerospace, missiles, electronics, and secure communications is increasing the need for compliance with international certification standards, including advanced EMI/EMC testing to support reliable and mission-critical systems. The forthcoming USD 5 billion Mobile PLI 2.0 scheme is expected to further deepen the domestic manufacturing base and drive incremental certified testing requirements.

Near-term risks have risen due to the Iran-US-Israel conflict, which has pushed up energy costs for a country sourcing roughly half of its crude and most LNG from the Middle East. Higher input prices are pressuring manufacturing margins, delaying product launches, and slowing the flow of goods entering the certification cycle, while heightened geopolitical uncertainty is weighing on private investment and R&D pipelines.

Outlook

Despite these pressures, the medium-term outlook for India's E&E TIC sector remains strong. Growth will be supported by automation-led testing innovations, rising demand for complex compliance services such as EMI/EMC driven by defence and high-reliability electronics R&D, supply-chain diversification into India, and policy-driven manufacturing expansion. The combination of regulatory requirements, domestic capability building across commercial and defence sectors, and global supply-

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chain realignment positions India's TIC sector for sustained outperformance.

(Source: Manufacturing today India, Verified Market Reports, Ministry of Defence, DRDO, MIL-STD Regmt)

4. Environment Testing Industry

4.1 Global Scenario

The global environmental testing market is evolving rapidly, shaped by increasingly stringent compliance requirements, advances in analytical technologies, and a growing emphasis on sustainable operations. The market expanded from USD 8.07 billion in 2025 to USD 8.61 billion in 2026, reflecting steady demand for accurate and timely environmental monitoring across industrial, utility, laboratory, agricultural, and government applications.

Environmental testing supports regulatory alignment, public-health protection, and environmental risk mitigation through comprehensive analysis of air, water, soil, and noise samples. The market encompasses a broad range of testing technologies, from conventional methods to advanced solutions such as chromatography, mass spectrometry, molecular diagnostics, and PCR-based testing, enabling faster, more reliable, and increasingly field-deployable assessments of chemical, microbiological, physical, and radiological contaminants.

Outlook

Over the forecast period, the environmental testing market is projected to grow at a compound annual growth rate of $6.9\%$ , reaching approximately USD 12.9 billion by 2032. Growth is expected to be supported by tighter environmental regulations, expanding sustainability initiatives, and increased adoption of digital, AI-enabled, and real-time monitoring solutions. While rising tariffs and supply-chain pressures have increased procurement costs for analytical equipment and reagents, organizations are responding through localized sourcing and diversified supplier strategies, supporting continued market resilience and long-term growth. (Source: Research and markets)

Environmental Testing Market
Market forecast to grow at a CAGR of $6.9\%$

2026

2032
RESEARCH AND MARKETS
THE WORLD'S LARGEST MARKET RESEARCH STORE

4.2 Indian Scenario

The environmental testing market in India continues to expand, driven by stricter environmental regulations, increased industrial activity, and rising ESG compliance across sectors. In 2025, the market generated revenues of approximately USD 535.9 million, supported by demand from manufacturing, infrastructure, pharmaceuticals, and utilities. Rapid testing technologies led the market due to faster turnaround times and growing adoption for regulatory compliance and monitoring applications.

Outlook

Looking ahead, the India environmental testing market is expected to grow at a CAGR of around $8.9\%$ during 2026-2033, reaching an estimated USD 1,053.0 million by 2033. Growth is anticipated to be driven by tighter enforcement of environmental norms, sustained industrial and infrastructure development, increased corporate focus on sustainability disclosures, and continued adoption of rapid and automated testing solutions. The long-term outlook for the sector remains positive, with stable demand visibility and opportunities for technology-led service expansion.

(Source: Grandview Research)

5. Overall Industry Outlook

Global Scenario

The global CRO, drug discovery, pre-clinical, BA/BE, CT, TIC, food safety, E&E testing, and environmental testing industries are positioned for continued growth despite rising geopolitical and macroeconomic risks. Strong R&D investments, increasing therapeutic complexity, and rising outsourcing to specialized CROs support long-term demand across drug discovery and pre-clinical services. BA/BE and analytical testing continue to expand due to generics growth and evolving regulatory standards. In TIC and food/agri testing, supply chain globalization and stringent compliance drive sustained activity. While energy-linked inflation, disrupted shipping routes, and equipment cost pressures pose near-term challenges, digitalization, AI adoption, and supply-chain reorientation underpin a resilient medium-term global outlook.

Indian Scenario

India's life sciences, CRO, TIC, food testing, and environmental testing sectors are set for strong expansion, supported by cost advantages, regulatory reforms, and growing integration into global value chains. Pharmaceutical CRO and drug discovery outsourcing markets are accelerating due to rising R&D costs, patent expiries, and India's deep scientific talent pool. Pre-clinical and BA/BE services benefit from simplified approval pathways, expanding clinical trial infrastructure, and increasing generics demand. The TIC sector is strengthened by industrial growth, mandatory certification, and PLI-

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driven electronics manufacturing. Food and environmental testing are rising due to stricter standards and supply-chain disruptions. Overall, India remains a high-growth, strategic hub despite global volatility.

Risks and Concerns

The Company operates in an environment marked by heightened global uncertainty. The escalation of geopolitical tensions, particularly the 2026 Middle East conflict, poses significant macroeconomic risks through rising energy prices, volatile shipping routes, and elevated inflationary pressures. These developments may adversely impact operating costs, laboratory consumables, freight, and turnaround timelines across the services Vimta provides. The risk of global growth deceleration, as projected in revised IMF assessments, remains a source of concern for demand visibility in export-linked segments.

Across the CRO, drug discovery, pre-clinical, and BA/BE markets, the increasing complexity of R&D, tightening regulations, and varying global compliance requirements elevate execution risks. Stringent cGMP, GLP, GCP, and REACH-driven obligations can increase project timelines and operational costs. BA/BE studies face risks from evolving regulatory scrutiny, data integrity expectations, and the need for robust bioanalytical validation. Delays or changes in regulatory frameworks despite recent process simplifications in India remain a key area of uncertainty.

The TIC and analytical testing industries face challenges from equipment cost inflation, reagent supply instability, and rising expectations for advanced testing capabilities. The food and agri-testing ecosystem remains exposed to logistics disruptions, supply chain bottlenecks, and volatile fertilizer import prices, which can affect sample flow and test volumes. In electrical and electronics testing, especially for defence EMI/EMC services, rising input costs and delayed capital expenditure cycles may slow customer investments.

Competitive pressures are intensifying across all service lines due to consolidation, global CRO expansion, and increased entry of domestic players. Maintaining pricing discipline amid tightening margins, especially in commoditized segments, is an ongoing challenge. Talent availability and retention, particularly in specialized scientific and regulatory roles, represent structural operational risks.

Cybersecurity, data protection, and confidentiality risks also remain high due to the sensitive nature of client research data, clinical records, and regulatory submissions. The shift toward digital and decentralized testing models increases exposure to system vulnerabilities, requiring sustained investment in secure digital infrastructure.

Overall, while long-term demand fundamentals remain strong, the Company must navigate an environment

characterized by geopolitical volatility, regulatory complexity, supply chain fragility, cost pressures, and intensifying competition, any of which may affect operational performance and growth trajectories.

Competitive Landscape

Global Landscape

Globally, the CRO, drug discovery, pre-clinical, bioanalytical, and TIC industries are witnessing increased consolidation, driven by rising R&D complexity, demand for end-to-end capabilities, and the need for scale in technology and regulatory compliance. Large multinational CROs are expanding portfolios through acquisitions in advanced modalities, bioanalysis, toxicology, and digital clinical platforms. The TIC industry is also consolidating, with leading players strengthening capabilities in food testing, E&E testing, environmental testing, and specialized regulatory services. Competitive intensity continues to increase as technology-enabled service models AI-driven discovery, biosimulation, organ-on-chip, rapid diagnostics, and automated laboratories differentiate global leaders from mid-size and niche providers.

India Landscape

India's competitive environment is strengthening as the country emerges as a preferred global hub for CRO, drug discovery outsourcing, BA/BE studies, analytical testing, and TIC services. Domestic CROs are expanding capacity, building GLP/GCP/GMP - aligned infrastructure, and investing in toxicology, bioanalysis, DMPK, and specialty chemistry capabilities. Regulatory reforms and cost advantages are attracting global partnerships, while local consolidation is accelerating as firms seek scale, deeper scientific expertise, and multi-site capabilities. In TIC, competition is intensifying across food, E&E, and environmental testing, supported by expanding PLI incentives, mandatory certification requirements, and growing demand for EMI/EMC, and high-reliability testing. Overall, India's competitive positioning is improving as companies integrate advanced technologies, expand geographic reach, and align with global quality standards.

Outlook for VIMTA

The outlook for Vimta remains constructive over the medium to long term, supported by favourable industry growth trends and sustained outsourcing across its service lines, alongside increasing opportunities to leverage AI and other technological advancements to enhance productivity, turnaround times, and operating efficiency. However, the short-term outlook remains uncertain given potential disruption from supply-chain constraints in critical reagents and chemicals, volatility in food-testing volumes linked to trade flows between India, the Middle East, and Europe, constraints in sourcing for large-animal testing and soil imports for European REACH-related programs, and rising

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manpower costs amid growing competition for scientific talent. Notwithstanding these near-term uncertainties, the Company remains well positioned to navigate such factors through its diversified service portfolio, strong domestic franchise, expanding international client base, proven quality and compliance track record, specialised scientific capabilities, economies of scale, and ability to ramp up capacity in line with demand. The Company's experienced senior management and scientific leadership further strengthen execution resilience and strategic agility. Taken together, these strengths provide a strong foundation for sustained growth, deeper client engagement, improved operating leverage, and a positive medium- to long-term outlook.

2.1 OUR STRENGTHS & STRATEGIES

Your Company's strengths have been its human resources, processes, partnerships, and unparalleled laboratory infrastructure. VIMTA provides services to its customers through processes and procedures that are oriented to deliver strong compliance with regulatory requirements, thereby maintaining the integrity of data and the reports, and minimizing risks to the customers. VIMTA has a track record of strong science and quality over a 42-year history, earning it a reputation as a leading, high-quality, sophisticated contract research and testing organization. Over the years, it has developed a wide range of capabilities and offers high-value, advanced testing services to support product research and development. VIMTA believes it is amongst the leaders in the domestic market for GMP analytical services and GLP nonclinical services. The GMP, GLP and GCP compliant services have been successfully audited several times during the year by customers, regulatory agencies, accrediting and certifying bodies.

In addition to its established pre-clinical research, clinical research, and analytical capabilities, VIMTA has strengthened its biopharmaceutical services platform through backward integration across the biologics and peptides drug development continuum. The Company has introduced integrated contract research and development services spanning clone development to product development, including upstream and downstream process development, impurity control studies, and titer enhancement. This integrated capability enables VIMTA to engage across the biologics and peptides development value chain, thereby enhancing scientific continuity, strengthening customer relevance, and expanding value capture across multiple stages of development. It positions the Company as a differentiated, end-to-end contract research and development partner for biologics and peptides, with the ability to deliver integrated solutions spanning the service continuum.

Similarly, in the food testing business, VIMTA is recognized as the leader not only in its testing expertise, technologies, and quality, but also in its scale. VIMTA has the largest pan-

India network of full-fledged laboratories, positioning it to take more market share within the industry and continue to grow. It is counted as a center of excellence for the country by government organizations as well.

In both food and above-mentioned product development services for biopharmaceutical companies, the broad spectrum of our services, cutting edge instrumentation and facilities with large footprint allows VIMTA to offer a comprehensive set of scientific laboratory services. Further, the scale of services enables us to continuously develop and refine our expertise and enhance our ability to bend the cost and time curve of services to our customers.

The Company has strengthened its presence in Electronics and Electrical testing and is better positioned to serve the defence, industrial, telecom, and medical devices sectors with enhanced operational capacities and wider market reach.

Across all its business units, the company believes that the technical and scientific expertise of its dedicated employees provides it with a competitive advantage. With a large pool of scientists holding advanced, masters or equivalent degrees, including PhDs, VIMTA has an edge due to the varied-scientific talent pool. The compliment of scientific domain expertise is leveraged often to create innovative as well as comprehensive solutions for customers across industries.

VIMTA has strategically developed and oriented its research and testing laboratory services towards the lucratively growing industries and their outsourcing needs, to position itself to win high value-add business. The service model is focused on providing customers with both stand-alone services as well as a mix of full-service contracts. VIMTA leverages its experience in managing laboratory operations for over 40+ years, to create efficient processes delivering quality outputs that help in maintaining long-term stable customer relationships. Furthermore, your company is focused on continuous operational improvements and prudent cost management. Your company believes that its strong financial profile demonstrates the quality and efficiency of the business model and positions it for continued growth.

2.2 KEY FINANCIAL RATIOS

Ratio	Financial Year 2025-26	Financial Year 2024-25
Days, Sales Outstanding	94.97	102.52
Days, Inventory Outstanding	124.43	127.84
Debt Service Coverage Ratio	19.65	8.18
Current Ratio	3.43	2.92
Debt Equity Ratio	0.01	0.02
Price Earnings Ratio	21.88	33.46

Reason for % change from previous year: Debt service coverage ratio improvement aided by decrease in interest

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cost owing to debt repayment and increase in earnings available for debt service driven by higher operating revenue.

2.3 MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS, INCLUDING NUMBER OF PEOPLE EMPLOYED

Vimta has highly talented workforce of 1384 employees out of which 71.11% are scientists. During the year, with the commitment to upskill and retain talent, the company continued to provide various trainings as well as other employee engagement activities. We are focused on increasing productivity of our employees and engaging them well for achieving greater connect to business goals and objectives using various initiatives. The company is using technology effectively to drive some of these employee centric initiatives.

2.4 INFRASTRUCTURE

Vimta is one of India's largest Contract Research & Testing Organisations, headquartered in Hyderabad. As on 31st March 2026, the Company has a network comprising its Registered Office & Central Laboratory at Cherlapally, Hyderabad, a Life Sciences Campus at Genome Valley, Hyderabad. The Company also operates one (1) Electricals & Electronics laboratory and six (6) Food branch laboratories, and one (1) liaison office in Kolkata. The total built-up area of the laboratories is approximately 6,00,000 sq. ft.

2.5 FORAY INTO BIOLOGICS

Vimta has forayed into the niche segment of contract research and development of biologics and peptides in the year 2025-26. The program commenced with strategic manpower recruitment, assessment of infrastructure and technical requirements across upstream, downstream, and analytical development functions. Based on the project scope, procurement of advanced laboratory equipment and development of dedicated laboratory infrastructure were systematically executed. The laboratories have been fully commissioned, including completion of equipment installation, operational qualification and facility readiness. This was followed by establishment of quality and operational systems to support compliant and efficient biopharmaceutical development activities.

We have been engaged in advanced discussions with several customers and are confident of successfully commercializing this business in FY 2026-27, in line with our expectations.

2.6 RISKS & CONCERNS

Risks are inherent to any business. They are managed by the Company through a risk management process of risk identification and risk mitigation, through risk reduction strategies & plans and continuous monitoring of the effectiveness of the risk mitigation measures to control them.

The Company has established a robust risk management framework for identifying, assessing, monitoring, and mitigating risks across its operations. The Risk Management Committee continues to oversee the implementation and effectiveness of the Company's Risk Management Policy and Enterprise Risk Management Framework, supported by a comprehensive Risk Register for systematic monitoring and management of key risks. The Board of Directors periodically reviews the risk management framework to ensure that significant risks are appropriately identified and mitigated, and the Company maintains adequate internal control systems and procedures commensurate with the nature and size of its business.

Vimta continues to strive to stay ahead on the competition curve through creation of new service opportunities, operational excellence and uncompromising commitment to quality, regulatory compliance, and customer service. However, there may be certain risk factors that could adversely impact business.

Quality related risks: Poor performance in regulatory audits and accreditation body audits could adversely impact our business. Maintaining quality and compliance is part of every activity in the organization. The management leads the quality culture, understanding very well that this is critical for business success and survival. However, unforeseen poor or inadequate performance by employees could lead to regulatory risks. There are adequate built in controls and checks to mitigate this risk. Nevertheless, these risks cannot be ruled out.

IT related risks: The Company's operations are dependent on the reliability, security, and uninterrupted functioning of its laboratory, data management, and communication systems. Any system failure, cyber-attack, unauthorized access, or data breach could adversely affect operations and business continuity. To mitigate these risks, the Company maintains robust backup and disaster recovery mechanisms, continuously upgrades its IT infrastructure. Systems and tools such as multi stage authentication, least-privilege access, device validation, and enhanced monitoring across critical digital assets have been implemented. However, despite these measures, the risk of disruption cannot be entirely eliminated.

Service failure related risks: We are a scientific services organization and quality of service to the customers is critical for growth of our business. Quality of service is related to our ability to deliver reports and projects with scientifically reliable and accurate information; compliance to contractual requirements, regulations, standards, guidelines as applicable; and service customers with professional and ethical conduct. If we fail to perform our services per these expectations, we could lose confidence of our customers who may choose not to award further work to us or make claims against us for breach of our contractual obligations. Any such action could have a material adverse effect on our reputation,

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business, results of operations, financial condition and/or cash flows. Our mitigation strategy is directed towards continuously strengthening our capabilities and learning and implementing best practices. In addition, we have strengthened our customer feedback mechanisms through stringent review systems and appropriate preventive actions.

Financial risks: Vimta makes continuous investments in capacity expansion, market reach and new business streams. These investments are based on good business judgement through market study, backed by strong planning and risk mitigation measures. However, time factors and market dynamics could delay results and/or create risks in obtaining returns on such investment. Other financial risks include bad debts from customers for various reasons; and liquidity risks as a result of any poor cash flows that could further lead to non-servicing of loans. Your company has dedicated groups for customer relations management and credit control. There are adequate checks to identify risky customer accounts and control business with them to minimize risks. Nevertheless, these risks cannot be completely ruled out.

Data risks: As a third-party provider of services, we often get into various service agreements, with customers including requirements on data confidentiality, data security and IP protection. Given the large scale of human resources involved in our organization, and the inherent vulnerability of IT solutions deployed, we may be at risk as a result of unintentional violations of customer contracts and agreements, which could further lead to significant legal risks for the business. This is mitigated through strong physical security and electronic security systems; trainings to employees, business continuity processes such as electronic data disaster recovery systems; confidentiality oaths from employees; well-propagated whistle blower policies etc. Nevertheless, these risks cannot be completely ruled out.

Growth and personnel related risks: Growth if not managed well places a strain on human, operational and financial resources. To manage our growth, we must continue to attract and retain talented staff across the business operations. Management pays strong attention to continuously building and improving operating and administrative systems to enhance productivity of personnel and processes and also to have a stronger administrative control on the businesses spread at various locations across the country. Given the dependency of business on quality of personnel there are inherent risks associated with personnel's abilities and ethical conduct, which may impact adversely customer satisfaction. Thus, if we are unable to manage our growth effectively, we could lose business from our customers. Further, if we are unable to recruit, retain and motivate key personnel, our business could be adversely affected. Our success

depends on the collective performance, contribution and expertise of our senior management team and other key personnel throughout our businesses, including qualified management, professional, operational, scientific, technical, and business development personnel. There is significant competition for qualified personnel in all the industries that we operate in, particularly personnel with significant experience and expertise. The loss of any key executive, or our inability to continue to recruit, retain and motivate key personnel in a timely fashion, may adversely impact our ability to compete effectively and grow our business and negatively affect our ability to meet our short and long-term business and financial goals. Company takes several steps to maintain a motivated and engaged team. Initiatives such as ESOPs to attract & retain talent, rewards and recognition programs, personnel competency enlargement programs etc., are among the many best practices followed by the company. Nevertheless, the risks related to growth and personnel cannot be completely ruled out.

Other risks: A few more such risks and concerns are, change in regulations and regulatory environment; downturn in economies that our business operates in; steep drop-in service prices from competition; increase in prices of input material; changes in laws such as tax laws etc. External risks also include foreign exchange risks; interest rate risks; risks from terrorism etc. Further there are also risks of critical equipment breakdowns, power breakouts, short supply of any input material or consumable, fire, and other natural calamities. These are handled through a robust business continuity plan where adequate backups are created and tested from time to time for their effectiveness, nevertheless, these risks cannot be completely ruled out. It is possible that the above list of risks does not cover all risks exhaustively. However, being an experienced organization, the mitigation measures are in-built into the organization, its strategy and processes, which have so far helped the organization go through, and grow through, various phases of business and the market situations. It will be management's continuous endeavour to develop strategies that would help the organization de-risk its business & grow with opportunities.

3 DIVIDEND

Your directors have recommended a final dividend of ₹ 2/- per equity share of ₹ 2/- each, for financial year 2025-26, subject to approval of members.

Dividend Distribution Policy

The Dividend Distribution Policy as formulated and adopted by the Board in terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is available on the Company's website and can be accessed at: https://vimta.com/wp-content/uploads/Dividend-Distribution-Policy.pdf

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4 TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION & PROTECTION FUND (IEPF)

Members may please note that as per the provisions of Sections 124 & 125 of the Companies Act, 2013, read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, dividends that remain unclaimed for a period of seven consecutive years from the date of transfer to the Unpaid Dividend Account shall be transferred to the Investor Education & Protection Fund.

The details of the unclaimed dividends as on 31st March 2026 and the due dates on which those unclaimed dividends are liable to be transferred to the Investor Education & Protection Fund are given below:

Year of Dividend – Final	No. of Shareholders who have not claimed	Unclaimed Amount (₹)	Date of Declaration	Date of transfer to unpaid account	Last date of transfer to IEPF
2018-19	426	2,79,358	27.07.2019	01.09.2019	31.08.2026
2019-20	Dividend Not Declared
2020-21	1,925	5,04,099	05.07.2021	10.08.2021	09.08.2028
2021-22	529	2,56,537	25.06.2022	31.07.2022	30.07.2029
2022-23	728	2,69,601	28.06.2023	03.08.2023	02.08.2030
2023-24	1,089	2,54,172	18.07.2024	22.08.2024	21.08.2031
2024-25	421	2,79,883	06.06.2025	12.07.2025	11.07.2032

5 TRANSFER TO RESERVES

No amount is proposed to be transferred to the reserves during the year under review.

6 CORPORATE GOVERNANCE REPORT

In compliance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate Report on Corporate Governance, together with a certificate from a Practicing Company Secretary confirming compliance with the conditions of Corporate Governance, is attached, which forms an integral part of this Board's Report.

The Corporate Governance Report is enclosed as Annexure A to this Report.

7 ANNUAL RETURN

Pursuant to Section 92(3) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, a copy of the Annual Return of the Company is available on the website of the Company and can be accessed at https://vimta.com/wp-content/uploads/MGT-7-Website-Upload.pdf

8 CORPORATE SOCIAL RESPONSIBILITY

During the year under review, the Company has spent a total sum of ₹ 1,39,21,028/- (Rupees One Crore Thirty-Nine Lakhs Twenty-One Thousand Twenty-Eight only) on CSR activities as approved by the CSR Committee. The disclosure required under Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 is enclosed as Annexure I to this report. There is a surplus of ₹ 871 (Rupees Eight Hundred Seventy-One) spent during the financial year under review.

9 MEETINGS OF THE BOARD

During the year under review, four (4) Meetings of the Board were convened and held, the details of which are given in the Corporate Governance Report, which forms part of this report. The intervening gap between the Meetings was within the limits prescribed under the Companies Act, 2013.

The Board Meetings of the Company were convened and conducted in compliance with the applicable provisions of the Companies Act, 2013 and Secretarial Standard on Meetings of the Board of Directors (SS-1).

10 SHARE CAPITAL

As at the end of the year, following is the status on share capital:

Authorised share capital: ₹ 11,99,99,500 (Rupees Eleven Crore Ninety-Nine Lakhs Ninety-Nine Thousand Five Hundred only) divided into 5,99,99,750 equity share of ₹ 2/- each.
Paid up capital: ₹ 8,93,38,710 (Rupees Eight Crore Ninety-Three Lakhs Thirty-Eight Thousand Seven Hundred and Ten only) divided into 4,46,69,355 equity shares of ₹ 2/- each.
ESOPs allotted during the year under review: 1,82,059 equity shares of ₹ 2/- each to the Employees upon exercise of Employee Stock Options under "Vimta Labs Employee Stock Option Plan 2021". The disclosure under Section 67(3)(c) of the Act in respect of voting rights not exercised directly by the employees of the Company is not applicable.

11 ISSUE OF SHARES

During the financial year under review, the Company has not:

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Vimta

Driven by Quality. Inspired by Science.

Board's Report

i) Issued any shares with differential voting rights pursuant to provisions of Rule 4 of the Companies (Share Capital and Debenture) Rules, 2014.

ii) Issued any sweat equity shares to any of its employees, pursuant to the provisions of Rule 8 of the Companies (Share Capital and Debenture) Rules, 2014.

No shares were bought back during the financial year under review.

Bonus Issue

The Board of Directors, at its meeting held on 28th April 2025, recommended the issue of bonus equity shares, which was subsequently approved by the shareholders at the 35th Annual General Meeting held on 06th June 2025. The shareholders approved the issuance of 2,22,52,784 (Two Crore Twenty-Two Lakh Fifty-Two Thousand Seven Hundred and Eighty-Four) bonus equity shares in the ratio of 1:1, i.e., 1 (One) bonus equity share of ₹2/- each for every 1 (One) fully paid-up equity share held.

Pursuant to the aforesaid approval, the Board of Directors allotted the said bonus equity shares on 14th June 2025, to the eligible shareholders as on the record date, i.e., 13th June 2025.

12 FINANCING THE PURCHASE OF SHARES OF THE COMPANY

During the financial year under review, the company has not given, either directly or indirectly, nor by means of a loan, guarantee, the provision of security or otherwise, financial assistance for the purpose of, or in connection with, a purchase or subscription made or to be made, by any person or for any shares in the company in violation of the provisions of Section 67 of the Companies Act, 2013.

13 EMPLOYEE STOCK OPTION PLAN

The Members of the Company, at their 31st Annual General Meeting held on 05th July 2021, approved the "Vimta Labs Employee Stock Option Plan 2021" ("ESOP 2021") and the grant of stock options to the eligible employees of the Company under the said plan. Pursuant to the same, the Company obtained in-principle approval from the Stock Exchanges for the grant of 6,63,234 stock options.

Further, the Members of the Company, at their 35th Annual General Meeting held on 06th June 2025, approved the issue of bonus equity shares in the ratio of 1:1 to the eligible members as on the record date, i.e., 13th June 2025. Consequent to the bonus issue, the Company obtained additional in-principle approvals from the Stock Exchanges for 5,18,260 stock options under ESOP 2021.

Accordingly, the total in-principle approvals obtained from the Stock Exchanges aggregate to 11,81,494 stock options under ESOP 2021.

Out of the aforesaid, the Nomination and Remuneration Committee, at its meetings held from time to time, has granted stock options at various stages, as detailed below:

Sl. No.	Tranche No.	No. of Options Granted	Grant Date
1	I	5,07,769	19th September 2022
2	II	17,961	11th May 2022
3	III	35,702	26th October 2022
4	IV	11,872	30th October 2023
5	V	85,532	17th July 2024
6	VI	9,609	08th November 2024
7	VII	61,174	24th January 2025
8	VIII	74,699	28th April 2025
9	IX	42,589	17th July 2025
10	X	38,269	28th January 2026

On receipt of the in-principle approval from both the Stock Exchanges (post bonus issue) for 5,18,260 grants, eligible employees were granted benefits pursuant to Clause 13.3 of the Vimta Labs Employee Stock Option Plan, 2021. Consequently, the total adjusted eligible employee grants pursuant to the bonus issue stood at 3,41,099.

Further, during the financial year under review, the company allotted 1,82,059 equity shares of ₹ 2/- each to the Employees upon exercise of Employee Stock Options under "Vimta Labs Employee Stock Option Plan 2021."

The details of "Vimta Labs Employee Stock Option Plan 2021" form part of the Notes to Accounts of the Financial Statements in this Annual Report.

The disclosures pursuant to Regulation 14 of Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 can be accessed at https://vimta.com/wp-content/uploads/Reg_14.pdf and the same are enclosed as Annexure II to this report together with a certificate obtained from the Secretarial Auditors confirming compliance with the Companies Act, 2013 and the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, which is enclosed as Annexure III to this report.

14 CHANGE IN NATURE OF BUSINESS

There was no change in the nature of business of the Company during the financial year under review. However, the Company has forayed into Contract R&D of Biologics and Peptides, in addition to its existing services.

15 CHANGES IN MEMORANDUM OF ASSOCIATION

During the financial year under review, the Memorandum of Association (MoA) of the Company was amended, pursuant to the approval accorded by the shareholders at the 35th Annual General Meeting held on 06th June 2025. Specifically, the Main Object Clause (Clause III-A) was altered to enable the Company to undertake activities in the Biologics Contract Research and Development and Manufacturing (CDMO) segment. This includes contract

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development, analytical testing, and other R&D services relating to biologics and peptide-based drug development and manufacturing support. The aforesaid amendment was carried out in strict compliance with the applicable provisions of the Companies Act, 2013.

16 PARTICULARS OF DEPOSITS

During the financial year under review, the company has not accepted any deposit pursuant to the provisions of Sections 73 and 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014. Thus, there is no non-compliance with the requirements of Chapter V of the Companies Act, 2013.

17 SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

During the financial year under review, no company has become or ceased to be a subsidiary, joint venture, or associate company of the Company.

18 PARTICULARS OF LOANS AND GUARANTEE GIVEN, SECURITY PROVIDED AND INVESTMENT MADE

As required under Section 186(4) of the Companies Act, 2013, particulars of loans, guarantees given, securities provided, and investments made by the Company are disclosed in Annexure IV and the Notes to the Financial Statements.

(Refer note no. 45 of Financial Statements).

19 PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in Annexure V to this Report.

Any Member interested in obtaining information pursuant to Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, may write to the Company Secretary at the Registered Office of the Company or send an email to [email protected].

20 AUDITORS

a) Independent Auditor's Report

During the financial year under review, the Company's auditors have not made any qualification, reservation or adverse remark or disclaimer in their Report on the financial statements of the Company and there were no instances of frauds reported by the auditors under Section 143(12) of the Companies Act, 2013.

b) Statutory Auditors

Pursuant to the provisions of Sections 139, 142 and other applicable provisions of the Companies Act, 2013 read with the rules made thereunder, M/s Gattamaneni & Co., Chartered Accountants (Firm Reg. No. 009303S) were appointed as Statutory Auditors of the Company for a term of five consecutive years from the conclusion of the 32nd Annual General Meeting (AGM) held on 25th June 2022 on a remuneration mutually agreed by the Board of Directors and the Auditors. They hold office until the conclusion of the 37th Annual General Meeting to be held in the calendar year 2027. The auditors have confirmed that they hold valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India and are eligible to continue to hold the office for rest of their tenure.

c) Internal Auditors

Pursuant to the provisions of Section 138 of the Companies Act, 2013 and based on the recommendations of Audit Committee, the Board of Directors at their meeting held on 06th May 2026, have reappointed M/s Chaitanya V & Associates, Chartered Accountants as Internal Auditors of the Company for the financial year 2026-27. M/s Chaitanya V & Associates, Chartered Accountants, have confirmed their willingness and eligibility to be reappointed as the Internal Auditors of the Company. Further, the Audit Committee in consultation with Internal Auditors, formulated the scope, functioning periodicity and methodology for conducting the Internal Audit.

d) Cost Auditors

Pursuant to the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, the Board of Directors at its meeting held on 17th July 2025, took note of the change in constitution of M/s Lavanya and Associates, Cost Auditors, from proprietorship firm to Limited Liability Partnership, namely M/s Lavanya and Associates LLP (LLP Identification Number: ACO-7111), and treated the same as a casual vacancy. Based on the recommendation of the Audit Committee, the Board approved the appointment of M/s Lavanya and Associates LLP as Cost Auditors for FY 2024-25 and FY 2025-26 at a remuneration of ₹50,000/- (Rupees Fifty Thousand only) plus applicable GST per financial year.

Further, based on the recommendation of the Audit Committee, the Board at its meeting held on 06th May 2026, approved the re-appointment of M/s Lavanya and Associates LLP as Cost Auditors of the Company for the financial year 2026-27 at a remuneration of ₹50,000/- (Rupees Fifty Thousand only) plus applicable GST.

In accordance with the provisions of the Companies Act, 2013, a resolution seeking ratification of the remuneration payable to the Cost Auditors for financial years 2024-25, and 2025-26, is included in the Notice of 36th Annual General Meeting.

The Company has received the necessary consent and certificate of eligibility from the Cost Auditors confirming their eligibility for appointment.

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e) Maintenance of cost records

The Company has maintained the cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 for the services covered under the said section.

f) Secretarial Auditors

Pursuant to the provisions of regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 204 of the Companies Act, 2013, read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Shareholders at the 35th Annual General Meeting appointed M/s D Hanumanta Raju & Co., Practicing Company Secretaries as Secretarial Auditors on a remuneration mutually agreed by the Board of Directors and the Secretarial Auditors for a term of five consecutive years from the conclusion of the 35th Annual General Meeting until the conclusion of the 40th Annual General Meeting of the Company to be held in the year 2030. The auditors have confirmed that they hold valid Peer Review certificate issued by the Institute of Company Secretaries of India and are eligible to continue to hold the office for rest of their tenure.

The Secretarial Auditors' Report for financial year 2025-26 does not contain any qualification, reservation or adverse remark. The Secretarial Audit Report for the financial year 2025-26 in the prescribed form MR-3 is enclosed with this Report as Annexure VI.

g) Annual Secretarial Compliance Report

The Secretarial Compliance Report for the financial year ended 31st March 2026, required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has been issued by M/s D. Hanumanta Raju & Co., Practicing Company Secretaries, for submission to both the Stock Exchanges in due compliance with the applicable guidelines.

h) Disclosure as per Section 143(12)

During the financial year under review, neither the Statutory Auditors nor the Secretarial Auditor have reported any offence of fraud committed by the Company's officers or employees under Section 143(12) of the Act to the Central Government or to the Audit Committee.

21 AUDIT COMMITTEE

The Board has constituted the Audit Committee as per the provisions of Section 177 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The composition, attendance, powers and role of the Audit Committee are included in Corporate Governance Report. All the recommendations made by the Audit Committee were accepted by the Board of Directors.

22 COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD MEETINGS AND GENERAL MEETINGS

During the financial year under review, the Company has complied with the Secretarial Standards issued by the Institute of Company Secretaries of India as applicable to Board Meetings and General Meetings.

23 POSTAL BALLOT

During the financial year under review, no Postal Ballot notice was issued.

24 DIRECTORS' RESPONSIBILITY STATEMENT

Directors' Responsibility Statement as required under Section 134 (5) of the Companies Act, 2013 (the Act), Directors of your Company hereby state and confirm that:

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

b) They had selected such accounting policies as mentioned in the notes to the financial statements 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 as at 31st March 2026 and of the profit and loss of the Company for the year ended on that date;

c) They had 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 had prepared the annual accounts on a going concern basis;

e) They had laid down proper internal financial controls to be followed by the Company and that such internal financial controls were adequate and were operating effectively; and

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

25 DIRECTORS AND KEY MANGERIAL PERSONNEL

The Board of Directors of the Company is constituted in compliance with the requirements of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It comprises an appropriate mix of Executive Directors and Non-Executive Independent Directors, including a Woman Independent Director

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a) Directors retiring by rotation

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Harriman Vungal (DIN: 00242621), Executive Director – Operations, retires by rotation at the ensuing Annual General Meeting and, being eligible, offered himself for re-appointment. The proposal for his re-appointment is included in the Notice of the Annual General Meeting (AGM) along with the requisite details. Subject to his re-appointment, Mr. Harriman Vungal will continue as Executive Director – Operations for the remainder of his tenure.

b) Changes in Directorship/Committee Position

During the financial year under review, there was no change in the composition of the Board except for the reappointment of Dr. Yadagiri R Pendri (DIN: 01966100) as an Independent Director. Similarly, there was no change in the composition of the Board Committees during the year under review.

Currently, the Board has five committees: The Audit Committee, Nomination and Remuneration Committee, Stakeholders' Relationship Committee, Corporate Social Responsibility Committee and Risk Management Committee.

Composition of the committees is given below.

Audit Committee	Position
Mr. G Purnachandra Rao	Chairman
Ms. Y Prameela Rani	Member
Mr. Sanjay Dave	Member
Stakeholders' Relationship Committee	Position
---	---
Mr. G Purnachandra Rao	Chairman
Mr. Sanjay Dave	Member
Mr. Satya Sreenivas Neerukonda	Member
Nomination and Remuneration Committee	Position
---	---
Mr. Sanjay Dave	Chairman
Mr. G Purnachandra Rao	Member
Ms. Y Prameela Rani	Member
Corporate Social Responsibility Committee	Position
---	---
Ms. Harita Vasireddi	Chairperson
Mr. Harriman Vungal	Member
Mr. Sanjay Dave	Member

Note: The Board of Directors, at its meeting held on 06th

May 2026, approved the reconstitution of the Corporate Social Responsibility (CSR) Committee. Accordingly, the composition of the CSR Committee with effect from 07th May 2026 is as follows:

Corporate Social Responsibility Committee	Position
Dr. S. P. Vasireddi	Chairman
Mr. Harriman Vungal	Member
Mr. Sanjay Dave	Member
Risk Management Committee	Position
---	---
Mr. Satya Sreenivas Neerukonda	Chairman
Mr. Sanjay Dave	Member
Ms. Harita Vasireddi	Member
Mr. Harriman Vungal	Member
Dr. Upendra Bhatnagar	Member
Mr. Srinivas Prathipati	Member
Mr. Siva Rama Krishna Kambhampati	Member

Disclosure by Directors

None of the Directors of the Company are disqualified as per the provisions of Section 164(2) of the Companies Act, 2013, and the Directors have made necessary disclosures to this effect. Further, the Company has obtained a Compliance Certificate pursuant to Regulation 34(3) and Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 from M/s D. Hanumanta Raju & Co., Practicing Company Secretaries. The said certificate is annexed to this report.

c) Appointment/ Re-appointment

i. At the 35th AGM held in 2025, Dr. Yadagiri R Pendri (DIN:01966100) was reappointed as an independent director, not liable to retire by rotation, for the second and final term of five years commencing from 10th August 2025 to 09th August 2030;

ii. The Board of Directors in their meeting held on 06th May 2026, on recommendation of Nomination and Remuneration Committee and approval of Audit Committee, has re-appointed Dr. S P Vasireddi (DIN:00242288) as an Executive Chairman, liable to retire by rotation, for a term of five (5) years commencing from 01st July 2026 to 30th June 2031, subject to the approval of the shareholders at the ensuing Annual General Meeting.

d) Changes in the Key Managerial Personnel and their terms and conditions of appointment

Dr. Sivalinga Prasad Vasireddi (DIN: 00242288), Executive Chairman, Ms. Harita Vasireddi (DIN: 00242512), Managing Director, Mr. Harriman Vungal (DIN: 00242621), Executive Director – Operations, Mr. Satya Sreenivas

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Neerukonda (DIN: 00269814), Executive Director, Mr. Siva Rama Krishna Kambhampati, Chief Financial Officer and Ms. Sujani Vasireddi, Company Secretary, are the Key Managerial Personnel of the Company within the meaning of Sections 2(51) and 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

There have been no changes in the Key Managerial Personnel during the financial year under review.

e) Change in terms and conditions of Appointment

During the financial year under review, the shareholders approved changes in the terms and conditions of appointment, including remuneration, of the following Key Managerial Personnel at the 35th Annual General Meeting:

i. Ms. Harita Vasireddi, Managing Director (DIN: 00242512);
ii. Mr. Harriman Vungal, Executive Director – Operations (DIN: 00242621); and
iii. Mr. Satya Sreenivas Neerukonda, Executive Director (DIN: 00269814).

Mr. Siva Rama Krishna Kambhampati was appointed as the Chief Financial Officer of the Company at the Board Meeting held on 24th January 2025, with effect from 6th March 2025. There was no change in the terms and conditions of his appointment during the financial year under review.

During the financial year under review, there was no change in the terms and conditions of appointment of Ms. Sujani Vasireddi, Company Secretary & Compliance Officer of the Company.

f) Declaration by Independent Directors

As required under Section 149(7) of the Companies Act, 2013, all the Independent Directors of the Company have submitted declarations confirming that they meet the criteria of independence prescribed under Section 149(6) of the Companies Act, 2013 read with Regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

g) All the Independent Directors of the Company are registered with and are members of the Independent Directors Databank maintained by the Indian Institute of Corporate Affairs (IICA).

h) It is hereby declared that in the opinion of the Board, each independent director appointed is a person of integrity and possess all the relevant expertise and experience (including proficiency). The Company has imparted necessary familiarization programme to the independent directors.

i) During the financial year under review, Dr. Yadagiri R Pendri (DIN: 01966100), Independent Director of the Company, was re-appointed at the 35th Annual General Meeting.

26 POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION

Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors has approved and adopted a Policy for the selection, appointment and remuneration of Directors, Key Managerial Personnel and other employees of the Company, in accordance with the requirements of Section 178(3) of the Companies Act, 2013.

The Nomination and Remuneration Policy and the Board Diversity Policy are set out in Annexure VII and can also be accessed on the website of the Company at

Nomination and Remuneration Policy

https://vimta.com/wp-content/uploads/NOMINATION-AND-REMUNERATION-POLICY.pdf

Board Diversity Policy

https://vimta.com/wp-content/uploads/Board-Diversity-Policy.pdf

27 HUMAN RESOURCES

Our success depends on the collective performance, contribution, and expertise of our senior management team and several key personnel across the organization, including scientific, technical, administrative, and other business-enabling functions such as business development. With an employee base of 1384, the Company leverages diverse skills and domain expertise to build a scientifically strong and quality-driven organization. Vimta believes that its human resources are key to achieving sustainable business growth. Accordingly, to ensure employee satisfaction, the Company provides a safe, conducive, and productive work environment. Continuous efforts are made to attract new talent and retain existing employees.

To establish a strong connection with employees, several employee engagement initiatives are undertaken. Training and skill development programmes are regularly conducted to promote a culture of continuous learning. Specialised skill development and training programmes are also organised for identified talent pools. The Company continued its focus on employee well-being by organising mental health and wellness programmes aimed at promoting emotional resilience and stress management among employees. Further, various outdoor sports and recreational activities were introduced to encourage physical fitness, team bonding, and a healthy work-life balance, thereby fostering a positive and engaging work environment.

Keeping pace with technological advancements, the Company has digitalised several HR processes through substantial investments in technology and automation.

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Employees are sufficiently empowered, and the Company believes that such a work environment enables teams to achieve higher levels of performance. The unwavering commitment of its employees continues to be the driving force behind the Company's profitable growth. Your Company appreciates the dedication, spirit, and valuable contributions of its employees.

28 PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All the contracts/ arrangements/ transactions entered by the Company during the year under review with related parties were in the ordinary course of business and at arm's length basis. The particulars of such contracts or arrangements with related parties, pursuant to the provisions of section 134(3)(h) of the Companies Act, 2013 and Rule 8 of the Companies (Accounts) Rules, 2014, in the prescribed form AOC-2 is enclosed as Annexure VIII to this report.

All Related Party Transactions are placed before the Audit Committee and the Board of Directors for their respective approvals. Omnibus approval of the Audit Committee is obtained in accordance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in compliance with the applicable circulars, notifications, and FAQs relating to Industry Standards on "Minimum Information to be Provided to the Audit Committee and Shareholders for Approval of Related Party Transactions" for transactions that are repetitive in nature and can be foreseen.

The Company has formulated a Policy on Materiality of Related Party Transactions and on dealing with Related Party Transactions, including amendments made thereto from time to time, for the purpose of identification, monitoring, and regulation of such transactions. The said Policy is available on the website of the Company and can be accessed at https://vimta.com/wp-content/uploads/Policy-on-Related-Party-Transactions.pdf.

29 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo as required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, is enclosed as Annexure IX to this report.

30 RISK MANAGEMENT POLICY

The Risk Management Committee, constituted by the Board of Directors during the previous financial year, continues to oversee the implementation and effectiveness of the Company's Risk Management Policy and Enterprise Risk Management Framework, including the identification, assessment, monitoring, and mitigation of key risks. The Company also maintains a comprehensive Risk Register to

systematically monitor, evaluate, and manage identified risks across the organisation. The Committee ensures effective implementation of risk management practices throughout the Company.

During the financial year under review, two (2) meetings of the Risk Management Committee were held. The details of the meetings are provided in the Corporate Governance Report. The Board of Directors continues to review and support the Company's risk management framework to ensure that significant risks are periodically identified, assessed, and appropriately mitigated. Further, details of key risks and the management's perception thereof are provided in the Management Discussion and Analysis section (refer point no.2) of this Report and also in the Business Responsibility and Sustainability Report (BRSR).

31 ANNUAL EVALUATION OF BOARD PERFORMANCE AND PERFORMANCE OF ITS COMMITTEES AND OF DIRECTORS

Pursuant to the provisions of the Companies Act, 2013 and Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of its own, that of its committees and individual directors.

A structured evaluation is performed 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 aspects.

The performance evaluation of the Independent Directors was carried out by the entire Board. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Secretarial Department. All the evaluations had satisfactory outcomes.

32 CODE OF CONDUCT FOR BOARD OF DIRECTORS AND SENIOR MANAGEMENT PERSONNEL

The Company has adopted a comprehensive Code of Conduct ("Code") pursuant to Regulation 17(5) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, applicable to all Directors and Senior Management Personnel, including Independent Directors, as may be applicable based on their roles and responsibilities. The Code incorporates the duties of Independent Directors as prescribed under the Companies Act, 2013, and provides guidance for ethical conduct of business and compliance with applicable laws. Further, the Company has in place a policy on obligations of Directors and Senior Management Personnel for disclosure of committee positions and commercial transactions pursuant to Regulation 26(2), (5) and (6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. All Directors and Senior Management Personnel have affirmed compliance with the Code. A declaration to this effect signed by the CEO forms part of this Report and

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Board's Report

is annexed as Annexure X to the Corporate Governance Report.

33 PREVENTION OF INSIDER TRADING

Pursuant to Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, the Company has adopted and complied to the Code of Internal Procedures and Conduct for Regulating, monitoring and reporting of trading by designated persons and their immediate relatives along with Code of Fair Disclosures.

34 PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORKPLACE

The Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The company formed a committee to attend to the complaints and monitor implementation of the above Act. During the financial year ended 31st March 2026, the company has not received any complaints from employees regarding sexual harassment. The number of complaints filed, disposed of, and pending as of the financial year under review is zero (0).

35 VIGIL MECHANISM/ WHISTLE BLOWER POLICY

The Company has a Whistle Blower Policy in place, framed to deal with instances of fraud and mismanagement, if any in the Company. The Policy provides for adequate safeguards against victimization of employees who avail the mechanism and also provides for direct access to the Chairman of the Audit Committee. The details of the Policy are explained in the Corporate Governance Report and also posted on the website of the Company, which can be accessed at https://vimta.com/wp-content/uploads/Whistle-Blower-Policy.pdf.

36 INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

A robust internal control mechanism is a prerequisite to ensure that an organisation functions ethically, complies with all legal and regulatory requirements and observes the generally accepted principles of good governance.

Your Company has adequate internal control systems for business processes, efficiency in its operations, and compliance with all the applicable laws and regulations. Regular internal checks and audits ensure that the responsibilities are being effectively executed. In-depth review of internal controls, accounting procedures and policies of Company is conducted. Your Company has adopted adequate internal controls and audit system commensurate with its size and nature of business. Internal financial control with reference to financial statement is adhered.

Internal audit is carried on a quarterly basis. The Internal Auditor reports directly to the Audit Committee of the Board, which ensures process independence. The Audit

Committee reviews the adequacy and efficacy of the internal controls, as well as the effectiveness of the risk management process across the Company. After reviewing the findings and suggestions, the Audit Committee directs the respective departments through Board to implement the same.

37 CASH FLOW STATEMENT

In compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Companies Act, 2013, and the applicable Accounting Standards, the Cash Flow Statement has been prepared and forms part of the Financial Statement for the year ended 31st March 2026 included in this Annual Report.

38 ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

The Company has established adequate internal financial controls with reference to the financial statements, commensurate with the size, scale, and complexity of its operations. These controls are designed to ensure the orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. The internal financial controls were operating effectively during the financial year under review.

Based on the internal financial control framework and compliance systems established and maintained by the Company, the audit and review processes carried out by the Internal Auditors, Statutory Auditors, and Secretarial Auditors, along with the periodic reviews undertaken by the Management and the relevant Board Committees, including the Audit Committee, the Board of Directors is of the opinion that the Company's internal financial controls with reference to the financial statements were adequate and effective as at 31st March 2026.

Pursuant to the Circular dated 07th January 2026 issued by the National Financial Reporting Authority (NFRA) on "Effective Communication Between Statutory Auditors and Those Charged With Governance (TCWG), including Audit Committees", the Company has constituted a Those Charged With Governance (TCWG) Committee to oversee the implementation of the requirements prescribed under the said circular.

In line with the recommendations of the aforesaid circular, the Company has also adopted an appropriate framework to facilitate structured and effective communication between the Statutory Auditors and the TCWG, including documentation, monitoring, and governance mechanisms, thereby strengthening the overall corporate governance and audit oversight processes

39 PROCEEDINGS UNDER THE INSOLVENCY & BANKRUPTCY CODE, 2016 (31 OF 2016)

During the financial year under review, the company has

36th Annual Report, 2025 - 26

Board's Report

neither made any application under the Insolvency and Bankruptcy Code, 2016, nor any proceeding is pending under the said code.

40 BORROWINGS

During the financial year under review, the company has not approached its Bankers/Financial Institutions for one time settlement in respect of its borrowings. Accordingly, no valuation was done during the year under review.

41 TRANSFER OF SHAREHOLDING FROM ANDHRA PRADESH INDUSTRIAL DEVELOPMENT CORPORATION LIMITED TO TELANGANA STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED

During the financial year under review, the shareholding held by Andhra Pradesh Industrial Development Corporation Limited ("APIDC") was transferred to Telangana State Industrial Development Corporation Limited ("TSIDC") with effect from 18th November 2025. The said transfer is pursuant to the bifurcation of the erstwhile State of Andhra Pradesh and the demerger scheme of APIDC in accordance with the provisions of the Andhra Pradesh Reorganisation Act, 2014.

In accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, APIDC was classified as a Promoter pursuant to the Investment Agreement dated 27th June 1991. In view of the transfer of shareholding and in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, TSIDC has been classified as 'Promoter – Body Corporate' and APIDC has been reclassified under the 'Public' category, pursuant to the provisions of the Andhra Pradesh Reorganisation Act, 2014 enacted by the Parliament of India.

The matter relating to the Investment Agreement dated 27th June 1991 remains sub judice before the appropriate judicial authority.

42 MATERIAL CHANGES

No material changes have occurred subsequent to the end of the financial year of the Company to which the financial statements relate and till the date of the report, that have an impact on the financial position of the Company.

43 PARTICULARS OF SIGNIFICANT/MATERIAL ORDERS PASSED, IF ANY

During the financial year under review, there were no significant and material orders passed by any Regulator or Court or Tribunals which would impact the going concern status of the Company's operations in future.

44 BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

Your Company is committed to conducting its business in a responsible and sustainable manner by integrating environmental, social, and governance (ESG) principles

into its operations and service delivery. As a leading testing, inspection, and certification Company, your Company plays a vital role in supporting quality, safety, and regulatory compliance across industries, thereby contributing to environmental protection and public health.

Your Company continues to strengthen its sustainability practices across its operations with a focus on efficient resource utilization, responsible waste management, energy conservation, and compliance with applicable environmental laws and regulations. Your Company also places strong emphasis on ethical business conduct, employee well-being, diversity and inclusion, and proactive stakeholder engagement as part of its ESG framework.

Through its services, your Company enables its clients to meet regulatory standards and sustainability objectives, thereby creating a positive impact across the value chain and the communities it serves.

In pursuance of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Business Responsibility and Sustainability Report (BRSR), describing the initiatives taken by your Company from an environmental, social and governance perspective, forms part of this Annual Report. Kindly refer to Annexure B for detailed disclosures.

45 GREEN INITIATIVE IN CORPORATE GOVERNANCE

The Ministry of Corporate Affairs (MCA), as part of its green initiative in corporate governance, has permitted companies to undertake paperless compliances and to serve Annual Reports and other documents to shareholders through electronic mode, subject to compliance with the prescribed conditions. Members who have not yet registered their email addresses are requested to register the same with their respective Depository Participants, in case the shares are held in electronic form, and with the Company's Registrar and Share Transfer Agent, CIL Securities Limited, in case the shares are held in physical form.

46 ACKNOWLEDGEMENTS

The Directors place on record their deep appreciation for the valuable contributions made by employees at all levels for their sincerity, hard work, solidarity, and dedicated support to the Company during the financial year under review. The Directors also express their gratitude to the shareholders, customers, vendors, consultants, bankers, and all other stakeholders for their continued trust and support extended to the Company.

Date: 06th May 2026
Place: Hyderabad

For and on behalf of the Board,
Dr. Sivalinga Prasad Vasireddi
Executive Chairman
(DIN:00242288)

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure - I

Annual Report on Corporate Social Responsibility as per Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014

1) Brief outline on CSR Policy of the Company:

Vimta believes that Corporate Social Responsibility (CSR) plays a vital role in an organisation’s existence and its sustainable growth. In line with this philosophy, the Company continues to undertake CSR initiatives aimed at promoting a more sustainable and equitable way of life for the underprivileged sections of society. The CSR programmes, projects, and activities are independent of the Company’s normal business operations and are carried out in compliance with the provisions of the Companies Act, 2013, read with Schedule VII thereof, and in accordance with the Company’s CSR Policy. The core areas of Vimta’s CSR activities are:

Health care including preventive health care to the economically weaker sections and differently abled people of weaker sections.
Supporting Eradication of extreme hunger and poverty.
Promotion of education.
Combating human immuno-deficiency virus, acquired immuno-deficiency syndrome, malaria and other diseases.
Environmental sustainability.
Social business projects.
Providing midday meals to the children at government schools.
Providing drinking water to weaker sections and to the children at government schools.
Providing/developing necessary infrastructure at government schools including providing of books, dress material, etc.
Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government or the State Governments for social economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes minorities and women.

2) Composition and Meetings of CSR Committee:

Sl. No.	Name of Director	Designation/Nature of Directorship	Number of meetings of CSR Committee held during the year	Number of meetings of CSR Committee attended during the year
1	Ms. Harita Vasireddi	Chairperson/ Managing Director	3	3
2	Mr. Harriman Vungal	Member/ Executive Director – Operations
3	Mr. Sanjay Dave	Member/Non-Executive Independent Director

Note: The CSR Committee was reconstituted by the Board of Directors at its meeting held on 06th May 2026. The details of the reconstitution of the CSR Committee are provided in the Board’s Report.

3) Composition of CSR Committee, CSR Policy and CSR Projects approved by the board are disclosed on the website of the company https://vimta.com/corporate-social-responsibility-2/

4) Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014: Not Applicable

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Annexures to Board's Report

5) (a) Average net profit of the company as per sub-section (5) of Section 135.

(In millions)

Particulars	For the Financial year ended 31st March			Amount available for set-off from preceding financial years (in ₹)	Amount required to be setoff for the financial year, if any (in ₹)
	2025	2024	2023
Net Profit	905.95	521.22	660.84
Average Net profit for the preceding three financial years	696.01			Nil	Nil

b) Two percent of average net profit of the company as per sub-section (5) of Section 135 is ₹ 1,39,20,157/-
c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Nil
d) Amount required to be set off for the financial year, if any: Nil
e) Total CSR obligation for the financial year $[(b)+(c)-(d)]: ₹ 1,39,20,157/-$

CSR Funds Allocation During FY 2025-26
Education & Skill Development Projects
Healthcare & Preventive Healthcare Projects
Hunger, Poverty & Malnutrition Eradication Projects
Women Empowerment & Social Welfare Projects
Environmental Sustainability & Animal Welfare Projects

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Vimta

Annexure - I contd.,

6)
a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project).

Sl. No.	Item from the list of activities in schedule VII to the Act.	Local area (Yes/No)	Location of the project.		Amount spent for the project (in ₹).	Mode of implementation - Direct (Yes/No)	Mode of implementation - Through implementing agency
			State	District			Name	CSR registration number
1	Promoting education, including special education and employment enhancing vocation skill especially among children, women, elderly and the differently abled and livelihood enhancement projects	No	Andhra Pradesh	Krishna	20,00,000/-	No	Vidya Bharathi Andhra Pradesh	CSR00023955
2	Promoting health care including preventive health care.	Yes	Telangana	Medchal-Malkajgiri	20,00,000/-	No	Narsingh Swain Memorial Trust	CSR00006138
3	Eradicating hunger, poverty and malnutrition	Yes	Telangana	Sanga Reddy	10,00,000/-	No	The Akshaya Patra Foundation	CSR00000286
4	Promoting education, including special education and employment enhancing vocation skill especially among children, women, elderly and the differently abled and livelihood enhancement projects	No	Andhra Pradesh	Chittoor	6,00,000/-	No	Venkata Subbareddy Memorial Foundation	CSR00024413
5	Promoting education, including special education and employment enhancing vocation skill especially among children, women, elderly and the differently abled and livelihood enhancement projects	Yes	Telangana	Hyderabad	4,00,000/-	No	Deaf Enabled Foundation	CSR00003268
6	Promoting education, including special education and employment enhancing vocation skill especially among children, women, elderly and the differently abled and livelihood enhancement projects	No	Andhra Pradesh	West Godavari	1,00,000/-	No	Wisdom Educational Trust	CSR00072790
7	Promoting education, including special education and employment enhancing vocation skill especially among children, women, elderly and the differently abled and livelihood enhancement projects	Yes	Telangana	Nagar Kurnool	5,00,000/-	No	Paravasthu Creative Foundation	CSR00067654

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Annexure to Board's Report

Annexure - I contd.,

Sl. No.	Item from the list of activities in schedule VII to the Act.	Local area (Yes/No)	Location of the project.		Amount spent for the project (in ₹).	Mode of implementation - Direct (Yes/No)	Mode of implementation - Through implementing agency
			State	District			Name	CSR registration number
8	Eradicating hunger, poverty and malnutrition	No	Andhra Pradesh	Guntur	3,00,000/-	No	Amma Charitable Trust	CSR00019256
9	Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water	No	New Delhi	New Delhi	2,00,000/-	No	People For Animals	CSR00001927
10	Promoting education, including special education and employment enhancing vocation skill especially among children, women, elderly and the differently abled and livelihood enhancement projects	Yes	Telangana	Hyderabad	16,21,028/-	No	Aashyam Parents Association	CSR00036064
11	Promoting education, including special education and employment enhancing vocation skill especially among children, women, elderly and the differently abled and livelihood enhancement projects	Yes	Telangana	Kurnool	5,00,000/-	No	Babu Jagjevanram Trust	CSR00088103
12	Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups	Yes	Telangana	Hyderabad	2,00,000/-	No	Bharosa Society for Protection of Women and Children	CSR00010434
13	Eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation	Yes	Karnataka	Bengaluru	20,00,000/-	No	MCKS Trust Fund	CSR00026264
14	Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water	Yes	Telangana	Ranga Reddy	25,00,000/-	No	Heartfulness Institute	CSR00006715

36th Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Annexures to Board's Report

Annexure - I contd.,

(b) Amount spent in Administrative Overheads: Nil
(c) Amount spent on Impact Assessment, if applicable: Not applicable
(d) Total amount spent for the Financial Year: ₹ 1,39,21,028/-
(e) CSR Amount spent or unspent for the financial year :

Total Amount Spent for the Financial Year (in ₹)	Amount Unspent (in ₹)
	Total Amount transferred to Unspent CSR Account as per sub Section (6) of Section 135.		Amount transferred to any fund specified under Schedule VII as per second proviso to sub Section (5) Section 135.
	Amount	Date of transfer	Name of the Fund	Amount	Date of transfer
₹ 1,39,21,028/-	Nil	NA	NA	Nil	NA

(f) Excess amount for set-off, if any: Nil

Sl. No.	Particular	Amount (in ₹)
(i)	Two percent of average net profit of the company as per sub-section (5) of Section 135	1,39,20,157/-
(ii)	Total amount spent for the Financial Year	1,39,21,028/-
(iii)	Excess amount spent for the financial year [(ii)-(i)]	871
(iv)	Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any	Nil
(v)	Amount available for set off in succeeding financial years [(iii)-(iv)]	871

7) Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:

(1)	(2)	(3)	(4)	(5)	(6)			(7)	(8)
Sl. No.	Preceding Financial Year(s)	Amount transferred to Unspent CSR Account under sub-section (6) of Section 135 (in ₹)	Balance Amount in Unspent CSR Account under sub-section (6) of Section 135 in ₹	Amount Spent in the reporting Financial Year (in ₹)	Amount transferred to a Fund as specified under Schedule VII as per second proviso to sub- section (5) of Section 135, if any			Amount remaining to be spent in succeeding Financial Years (in ₹)	Deficiency, if any
					Name of the Fund	Amount (in ₹)	Date of transfer
1	FY-2024-25	-	-	-	-	-	-	-	-
2	FY-2023-24	-	-	-	-	-	-	-	-
3	FY-2022-23	-	-	-	-	-	-	-	-

8) Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year (Yes/No): No

If Yes, enter the number of Capital assets created/ acquired: Not applicable

Details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year: Not applicable

Sl. No.	Short particulars of the property or asset(s) [including complete address and location of the property]	Pin code of the property or asset(s)	Date of creation	Amount (CSR amount spent)	Details of entity/ Authority/ beneficiary of the registered owner
					CSR Registration Number, if applicable	Name	Registered address
Not applicable

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Annexures to Board's Report

Annexure - I contd.,

9) Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per sub-section (5) of Section 135: Not applicable

Responsibility Statement:

The CSR committee of the company hereby confirms that implementation and monitoring of CSR policy is in compliance with CSR objective and policy of the company.

For Vimta Labs Limited

Place: Hyderabad
Date: 06th May 2026

Harita Vasireddi
MD & Committee Chairperson
DIN: 00242512

Harriman Vungal
ED- Operations
DIN: 00242621

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure - II

Disclosures pursuant to Regulation 14 of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

The Board of Directors confirm that there have been no material changes in the scheme(s) during the year under review.
The scheme, i.e., “Vimta Labs Employee Stock Option Plan - 2021”, is in compliance with the applicable regulations.
The Members of the Company, at their 31st Annual General Meeting held on 05th July 2021, approved the ‘Vimta Labs Employee Stock Option Plan 2021’ (‘ESOP 2021’) and the grant of stock options to eligible employees of the Company under the said plan, pursuant to which the Company obtained in-principle approval from the Stock Exchanges for 6,63,234 stock options; further, at the 35th Annual General Meeting held on 06th June 2025, the Members approved the issue of bonus equity shares in the ratio of 1:1 to eligible members as on the record date, i.e., 13th June 2025, consequent to which the Company obtained additional in-principle approvals for 5,18,260 stock options, aggregating to 11,81,494 stock options under ESOP 2021. The Board of Directors confirms that there have been no material changes to ESOP 2021 during the year under review, except for adjustments arising out of the aforesaid bonus issue, and that the scheme is in compliance with the applicable provisions of the Companies Act, 2013 and the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
Relevant disclosures in terms of the ‘Guidance note on accounting for employee share-based payments’ issued by ICAI form part of the notes to the financial statements provided in this Annual Report.
The Company recognizes compensation expenses relating to share-based payments in the statement of profit and loss using fair value in accordance with IND AS 102, share based payments. The fair value determined at the grant date of the stock options is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of the equity instruments that will eventually vest, with a corresponding increase in share-based payments reserve in equity.

At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the original estimates, if any, is recognised in statement of profit and loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the share-based payments reserve in equity.

Disclosure on Diluted EPS as per the Indian Accounting Standards on issue of shares

Sl. No.	Particulars	Vimta Labs Employee Stock Option Plan - 2021
1	Method of calculation of employee compensation	The Company has calculated the employee compensation cost using the fair value of the stock options.
2	Difference between the employee compensation cost so computed at (1) above and the employee compensation cost that shall have been recognised if it had used the fair value of the options.	Not applicable as the Company has calculated the employee compensation cost using the fair value of the stock options.
3	The impact of this difference on profits and on EPS of the Company	Not applicable as the Company has calculated the employee compensation cost using the fair value of the stock options.

Details related to Vimta Labs Employee Stock Option Plan -2021

Sl. No.	Description	Year ended 31st March 2026
1	Date of shareholders’ approval	1. Vimta Labs Employee Stock Option Plan -2021
- Approved on 05th July 2021
- Bonus shares Approved on 06th June 2025 (35th AGM Bonus Issue was approved by the shareholders at the ratio of 1:1)
2	Total number of options approved under ESOPs	Original	6,63,234
		Bonus	5,18,260
		Total	11,81,494

34
36th Annual Report, 2025 - 26

Annexures to Board's Report

Sl. No.	Description	Year ended 31st March 2026
3	Vesting requirements	The minimum vesting period shall be at least 1 (one) year from the date of Grant
Vesting of the options shall take place over three to seven years from the date of Grant
4	Exercise price or pricing formula	₹ 2 - Exercise price per option
5	Maximum term of options granted	10 years
6	Source of shares (primary, secondary or combination)	Primary
7	Variation of terms of options	Nil
8	Method used to account for ESOS - Intrinsic or fair value	The company has calculated the employee compensation cost using the fair value of the stock options
9	If the Company opted for Intrinsic Value, the difference between the employee compensation cost so computed and the employee compensation cost that shall have been recognized if it had used the fair value of the options	Not Applicable
10	The impact of this difference on profits and on EPS of the company on the current year profits (for the year grants)	Nil

8. Details of ESOS during the financial year

Sl. No.	Description	Year ended 31st March 2026
1	Number of options outstanding at the beginning of the year (un-granted)	2,27,993 Options
2	Number of options granted during the year	74,699 Options in Tranche VIII;
42,589 Options in Tranche IX;
38,269 Options in Tranche X,
out of the Total ESOPs approved -11,81,494
Options
During the financial year under review, pursuant to the bonus issue, the total adjusted eligible employee grants under the ESOP scheme stood at 3,41,099.
3	Number of options forfeited/lapsed during the year	1,10,628 (including Bonus:27,879) Options
4	Number of options vested during the year	2,00,161 Options
5	Number of options exercised during the year	1,82,059 Options exercised during the year.
Total Options exercised till date - 3,08,761
options exercised since beginning of the scheme
till the end of financial year under review.
6	Number of shares arising as a result of exercise of options	1,82,059 shares
7	Amount realized by exercise of options (₹)	₹ 3,64,118
8	Loan repaid by the Trust during the year from exercise price received	NA
9	Number of options outstanding at the end of the year (out of total number of options approved under ESOPs)	Total options granted and outstanding -5,18,899
Options
Total Options ungranted - 3,53,834
Options
Total Options Outstanding - 8,72,733
Options

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board’s Report

Annexure - II contd.,

Sl. No.	Description	Year ended 31^{st} March 2026
10	Number of options exercisable at the end of the year (out of total number of options approved under ESOPs)	1,87,033 Options
11	Weighted-average exercise prices and weighted-average fair values of options shall be disclosed separately for options whose exercise price either equals or exceeds or is less than the market price of the stock.
	Stock Options granted on	Weighted average exercise price (in ₹)	Weighted average Fair value (in ₹)
	19.09.2021	2.00	286.12
	11.05.2022	2.00	344.40
	26.10.2022	2.00	400.04
	30.10.2023	2.00	505.39
	17.07.2024	2.00	559.61
	08.11.2024	2.00	581.26
	24.01.2025	2.00	863.62
	28.04.2025	2.00	1153.00
	17.07.2025	2.00	473.15
	28.01.2026	2.00	509.05
12	Employee wise details of options granted to
	a. Key managerial personnel	Name- Mr. Siva Rama Krishna Kambhampati
Designation- Chief Financial Officer
Total Grants- 20,496 options granted (During the financial year under review).
	b. Any other employee who receive a grant of options in any one year of option amounting to 5% or more of option granted during the year	1. Rajesh Medisetty, President - Biologics (VLL-3-7604) – 30,000 options granted
2. Vala Kiran Kumar, General Manager, Analytical Pharma (VLL-3-5967) – 8007 options granted
3. Jagadeesh Kodali, Senior Vice President, Food Division (VLL-3-3689) - 36000 options granted
(Only active options have been considered and grants forfeited on account of resignation of employees have not been taken into consideration.)
	c. Identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants & conversions) of the Company at the time of grant	Nil
13	Description of the method and significant assumptions used during the year to estimate the fair value of the options, including the following weighted average information	The Black Scholes option-pricing model was developed for estimating fair value of traded options that have no vesting restrictions and are fully transferable. Since option-pricing models require use of substantive assumptions, changes therein can materially affect fair value of options. The option pricing models do not necessarily provide a reliable measure of fair value of options.

36th Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - II contd.,

Sl. No.	Description	Year ended 31st March 2026
14	The main assumptions used in the Black Scholes option-pricing model during the year were as follows:
	(i) Weighted average values of share price	Refer point no. 11
	(ii) Exercise price	Refer point no.11
	(iii) Weighted Average Risk free interest rate	6%
	(iv) Weighted Average expected Life of Options	3.06 years
	(v) Weighted Average Expected Volatility	63.67%
	(vi) Weighted average expected dividend	80%
15	The method used and the assumptions made to incorporate the effects of expected early exercise	Nil
16	How expected volatility was determined, including an explanation of the extent to which expected volatility was based on historical volatility	Expected volatility has been determined based on the historical volatility of the Company's share price, computed using average weekly closing prices over the expected life of the options
17	Whether and how any other features of the option grant were incorporated into the measurement of fair value, such as a market condition	No

Place: Hyderabad

Date: 06th May 2026

Dr. Sivalinga Prasad Vasireddi

Executive Chairman

DIN: 00242288

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure - III

COMPLIANCE CERTIFICATE

[Pursuant to Regulation 13 of the Securities Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021]

To,

The Members,

Vimta Labs Limited.

We D.Hanumanta Raju & Co, Company Secretary in practice, have been appointed as the Secretarial Auditor by a resolution passed at its meeting held on 28th April, 2025 by the Board of Directors of Vimta Labs Limited (hereinafter referred to as ‘the Company’), having CIN: L24110TG1990PLC011977 and having its registered office at 141/2 & 142, IDA Phase II, Cherlapalli, RR Dist, Hyderabad – 500 051. This certificate is issued under Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (hereinafter referred to as “the Regulations”), for the year ended 31st March 2026.

Management Responsibility:

It is the responsibility of the Management of the Company to implement the Scheme(s) including designing, maintaining records and devising proper systems to ensure compliance with the provisions of all applicable laws and regulations and to ensure that the systems are adequate and operate effectively.

Verification:

The Company has implemented Vimta Labs Employee Stock Option Plan, 2021 viz Employee Stock Option Scheme in accordance with the Regulations and as per the Special Resolution passed by the members at the 31st Annual General Meeting of the Company held on Monday, 5th July, 2021. Relevantly, during the period under review the Company has allotted 1,82,059 Equity Shares towards the exercise of the options by the employees to whom Options were granted under Vimta Labs Employee Stock Option Plan, 2021.

For the purpose of verifying the compliance of the Regulations, We have examined the Scheme, Resolutions passed at General Meeting and the meeting of the Board of Directors, ESOP Allotment Committee, Disclosure by the Board of Directors and other relevant documents made available to us and the explanations provided by the Company.

Certification:

In our opinion and to the best of our knowledge and according to the verifications as considered necessary and explanations furnished to us by the Company and its Officers, we certify that, the Company has implemented the Vimta Labs Employee Stock Option Plan, 2021, Employee Stock Option Scheme in accordance with the applicable provisions of the Regulations as per the Special Resolution passed by the members at the 31st Annual General Meeting of the Company held on Monday, 5th July, 2021 and during the period under review, allotted 1,82,059 Equity Shares towards the exercise of the options by the employees to whom Options were granted under Vimta Labs Employee Stock Option Plan, 2021 by passing resolution at ESOP Allotment Committee.

Assumption & Limitation of Scope and Review:

Ensuring the authenticity of documents and information furnished is the responsibility of the Board of Directors of the Company.
Our responsibility is to give certificate based upon our examination of relevant documents and information. It is neither an audit nor an investigation.
This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.
This certificate is solely for your information and it is not to be used, circulated, quoted, or otherwise referred to for any purpose other than for the Regulations.

For D.HANUMANTA RAJU & CO
COMPANY SECRETARIES

CS SHAIK RAZIA
PARTNER
FCS: 7122, CP NO: 7824
UDIN: F007122H000293531
PR NO: 6326/2024

Place: Hyderabad
Date: 06.05.2026

36th Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - IV

Details of Loans and Guarantees given, Security provided and Investment made by the Company pursuant to Section 186(4) of the Companies Act, 2013:

i. Corporate Guarantee given during the year:

Name and Address of the person or body corporate to whom the guarantee is given	Amount (in millions)
No corporate guarantees were given during the year under review.

ii. Loans given during the year:

Name and Address of the person or body corporate to whom it is made or given	Amount (in millions)
No loans were given during the year under review.

iii. Investment made during the year:

Name and Address of the person or body corporate in which the investment is made	Amount (in millions)
No investment were made during the year under review.

iv. The company has not provided security to any person/body corporate during the year under review.

Place : Hyderabad
Date : 06th May 2026

Dr Sivalinga Prasad Vasireddi
Executive Chairman
(DIN:00242288)

36th Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Annexures to Board's Report

Annexure - V

Particulars of employees under Section 197(12) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

Sl. No.	Name	Designation	Gross Remuneration	Nature of Employment	Qualification	* Date of Joining	Age	Experience	% of Equity Shares held	Whether relative of Director	Name of relative Director	Previous Employment
1	Dr. S P Vasireddi	Executive Chairman	2,41,60,000	Contractual	Ph.D in Chemistry	16.11.1990	77	48 years	11.63	Yes	Harita Vasireddi	Promoter
2	Ms. Harita Vasireddi	Managing Director	2,32,84,129	Contractual	B.Pharm, MBA	26.10.2002	51	28 years	0.75	Yes	Dr. Sivalinga Prasad Vasireddi	Vimta Rostest Private Limited. Hyderabad, India
3	Mr. Harriman Vungal	Executive Director - Operations	2,12,84,129	Contractual	D.Tech	16.11.1990	74	47 years	6.91	No	-	Promoter
4	Mr. Satya Sreenivas Neerukonda	Executive Director	2,32,84,129	Contractual	B.Pharm, MBA	14.07.2019	50	26 years	Nil	No	-	Impac Medical Systems, Mountain View, CA, USA

The date of joining is as recorded as per the Corporate Governance report submitted to Stock Exchanges on quarterly basis.
In accordance with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, details of the top ten employees of the Company who were employed throughout the financial year 2025-26 are available. Any Member interested in obtaining this information may request the same by writing to the Company Secretary at [email protected].

Dr. Sivalinga Prasad Vasireddi
Executive Chairman
(DIN:00242288)

Place : Hyderabad
Date: 06th May 2026

36th Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - V contd.,

Particulars of employees under Section 197(12) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the financial year 2025–26, the ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2025–26, and the comparison of the remuneration of each Key Managerial Personnel (KMP) with the performance of the Company are set out below:

Sl. No.	Name of Director/ KMP and Designation	Ratio of the remuneration paid to Directors to the median remuneration of the employee excluding managerial remuneration (#)	Percentage increase in remuneration during the year	Comparison of remuneration against performance of the Company
				Remuneration paid (in Millions)	Performance of the Company for the year (Net Profit ₹ in Millions)
1	Dr. S P Vasireddi	61 : 1	7.09%	24.16	775.12
	Executive Chairman
2	Harita Vasireddi	59 : 1	36.64%	23.28	775.12
	Managing Director
3	Vungal Harriman	54 : 1	34.37%	21.28	775.12
	Executive Director-Operations
4	Satya Sreenivas Neerukonda	59 : 1	36.64%	23.28	775.12
	Executive Director
5	Y Prameela Rani	NA	NA	NA	NA
	Independent Director
6	Gutta Purnachandra Rao	NA	NA	NA	NA
	Independent Director
7	Sanjay Dave	NA	NA	NA	NA
	Independent Director
8	Dr. Yadagiri R Pendri	NA	NA	NA	NA
	Independent Director
9	Siva Rama Krishna Kambhampati	13 : 1	-	5.21	775.12
	Chief Financial Officer
10	Sujani Vasireddi	12 : 1	7%	4.61	775.12
	Company Secretary

Median working is on monthly CTC.

i. There was no variable component (except commission on profits) of remuneration availed by the Directors.
ii. The remuneration paid to the Key Managerial Personnel was as per the remuneration policy of the Company.
iii. There were 1,384 employees on the rolls of the Company as on 31st March 2026.
iv. The percentage increase in the median remuneration of employees in the financial year was 4%
v. The average increase in the salaries/remuneration of the employees during the year was 8.56%
vi. We herewith affirm that the remuneration is as per the remuneration policy of the Company.

Place : Hyderabad
Date : 06th May 2026

Dr. Sivalinga Prasad Vasireddi
Executive Chairman
(DIN:00242288)

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure - VI

Form No. MR-3

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31.03.2026

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014].

The Members,

VIMTA LABS LIMITED.

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by VIMTA LABS LIMITED having CIN: L24110TG1990PLC011977 and having registered office at 141/2 &142, IDA Phase II, Charlapalli, RR Dist, Hyderabad – 500 051 (hereinafter called the “Company”). Secretarial Audit was conducted in accordance with the guidance note issued by the Institute of Company Secretaries of India and in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information, confirmations, clarifications provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31st March, 2026, complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31st March, 2026, according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made there under;
(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made there under;
(iii) The Depositories Act, 1996 and the Regulations and Byelaws framed there under;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings - (Not applicable to the company during the period under review)

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act'):

(a) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(d) Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;
(e) Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 2025 regarding the Companies Act and dealing with client;
(f) Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 - (Not applicable to the company during the period under review);
(g) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
(h) Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 - (Not applicable to the company during the period under review); and
(i) Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018.
(j) Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 - (Not applicable to the company during the period under review);

(vi) Other laws specifically applicable to the Company as amended from time to time as per the representations made by management include:

A. The Drugs and Cosmetic Act, 1940
B. Narcotic Drugs and Psychotropic Substances Act, 1985 and Narcotic Drugs and Psychotropic Substances (Regulation of Controlled Substances) Order, 2013

36th Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - VI contd.,

C. Good Laboratory Practices as laid down in Schedule L-1 of Drugs and Cosmetic Rules, 1945
D. Food Safety and Standards Act, 2006
E. The Pathology and Laboratory Act, 2007
F. Bio-Medical Waste (Management and Handling) Rules, 1998
G. Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008
H. The Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989
I. Explosives Act, 1884 read with Gas Cylinder Rules, 2004
J. Selection, installation and maintenance of First-aid Fire Extinguishers – Code of Practice

We have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards issued by The Institute of Company Secretaries of India and notified under the Companies Act, 2013;
(ii) The Listing Agreements entered into by the Company with BSE Limited and National Stock Exchange of India Limited (NSE).

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

We further report that:

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. There are no changes in the composition of the Board of Directors during the period under review.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

Majority decisions are carried through while the dissenting member’s views, if any, are captured and recorded as part of the minutes.

We further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

We further report that during the period under review,

The Company has allotted 1,82,059 equity shares upon conversion of stock options which were granted under ‘Vimta Labs Employee Stock Option Plan 2021’ and necessary listing / trading approvals were received from National Stock Exchange of India Limited and BSE Limited.
The Company has issued and allotted on 14.06.2025, 2,22,52,784 (Two Crore Twenty-Two Lakhs Fifty-Two Thousand Seven Hundred and Eighty-Four) Equity Shares as Bonus to its existing shareholders in the ratio of 1:1, i.e., 1 (One) equity share for every 1 (One) existing fully paid-up equity share held by the members, whose names appear in the Register of Members as on 13th June, 2025.

Place: Hyderabad
Date: 06.05.2026

For D.HANUMANTA RAJU & CO
COMPANY SECRETARIES

CS SHAIK RAZIA
PARTNER
FCS:7122,CP NO: 7824
UDIN: F007122H000293430
PR NO: 6326/2024

This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this report.

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure A

(part of Annexure VI)

To
The Members,
VIMTA LABS LIMITED.

Our report of even Date is to be read along with this letter

Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.
We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed, provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
Where ever required, we have obtained the Management Representation about the compliance of laws, rules and regulations and happening of events etc.
The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to the verification of procedures on test basis.
The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company.

Place: Hyderabad
Date: 06.05.2026

For D.HANUMANTA RAJU & CO
COMPANY SECRETARIES

CS SHAIK RAZIA
PARTNER
FCS:7122,CP NO: 7824
UDIN: F007122H000293430
PR NO: 6326/2024

36^{\mathrm{th}} Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - VII

NOMINATION AND REMUNERATION POLICY

Introduction

The Company's ("Company" or "Vimta Labs Limited") has adopted this policy on the appointment and remuneration of Directors, Key Managerial Personnel and Senior Management and provides a framework for payment of suitable remuneration to harmonize the aspirations of human resources consistent with the goals of the Company. The nomination and remuneration policy provided herewith is in line with the requirements of Section 178(4) of the Companies Act ("Act") read with rules made thereunder and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended ("Listing Regulations") and other applicable laws (hereinafter referred to as "Relevant laws").

Objective and purpose of the policy

The objectives and purpose of this policy are,

To evaluate the performance of the members of the Board.
To formulate the criteria for determining qualifications, positive attributes and independence of a Director.
To formulate and recommend remuneration principles for the Directors, Key Managerial personnel and other Senior Management of the Company to the Board of Directors.
To ensure that the level and composition of remuneration is reasonable and sufficient to retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive advantage

The committee

The Board has constituted the nomination and remuneration committee of the Board on 10th October, 2014. This is in line with the requirements of Companies Act, 2013 ('the Act') and the listing agreement entered in to with Stock Exchanges.

The Board has authority to reconstitute this committee or desirable amendments from time to time as necessary.

Definitions

'Act' means the Companies Act, 2013.

'The Board' means Board of Directors of the Company.

'Directors' means Directors of the Company.

'The Committee' means the nomination and remuneration committee of the Company as constituted or reconstituted by the Board, in accordance with the Act and SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

'The Company' means Vimta Labs Limited.

'Independent Director' means a director referred to in Section 149(6) of the Companies Act, 2013 and rules made thereunder

and SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015

Key Managerial Personnel (KMP) means as defined in Section 2(51) of the Act:

The Managing Director or the Chief Executive Officer and Whole-time Director;
The Company Secretary and
The Chief Financial Officer and

Such other person as defined under the Act from time to time.

'Senior Management' means personnel of the Company who are members of its core management team excluding the Board of Directors. This would include all members of management one level below the Executive Directors, including all functional heads as defined in the Companies Act, 2013

'Other employees' means all the employees other than the Directors, KMPs and the Senior Management Personnel

Remuneration means any money, or its equivalent, given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961.

Unless the context otherwise requires, words and expressions used in this policy, and not defined herein but defined in the Companies Act, 2013 and Listing Agreement/ SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015 as may be amended from time to time, shall have the same meaning respectively assigned to them therein.

Composition of the Committee:

The composition of the Committee is / shall be in compliance with the Act, Rules made there under and the SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015, as amended from time to time.

Role of the Committee:

The Committee shall:

a) Formulate the criteria for determining qualifications, positive attributes and independence of a Director;
b) Identify persons who are qualified to become Director and persons who may be appointed in Key Managerial and Senior Management positions in accordance with the criteria laid down in this Policy;
c) Lay down the evaluation criteria for performance evaluation of Independent Director and the Board;
d) Recommend to the Board, appointment, remuneration and removal of Director, KMP and Senior Management;
e) To devise a Policy on Board diversity.

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure - VII contd.,

The Policy

This policy is divided into three parts as mentioned below:

Part - A: Covers the matters to be dealt with and to recommend to the Board
Part - B: Covers the appointment and nomination; and
Part - C: Covers remuneration and perquisites etc.

Part-A:

The following matters to be dealt with and recommended to the Board by the committee.

Structure of the Board

Formulate the criteria determining qualifications, positive attributes and independence of a director and recommending candidates to the Board, when circumstances warrant the appointment of a new director, having regard to the range of skills, experience and expertise, on the Board and who will best complement the Board in order to make appropriate decisions in the best interests of the Company as a whole. The committee is to assist the Board in ensuring that diversity of gender, thought, experience, knowledge and perspective is maintained in the Board nomination process, in accordance with the Board diversity requirements of the Company.

Succession plans

Establishing and reviewing Board, KMP and Senior Management’s succession plans to ensure and maintain an appropriate balance of skills, experience and expertise.

Evaluation of performance

Make recommendations to the Board on appropriate performance criteria for the Directors. Formulate the criteria and framework for evaluation of performance of every Director on the Board of the Company.

Identify ongoing training and education programs for the Board and in particular to the new incumbents, as and when required and to ensure that non-executive Directors are provided with adequate information regarding nature of the business, the industry and their legal responsibilities and duties.

Remuneration framework

The committee is responsible for reviewing and making recommendations to the Board on

(a) Remuneration of the Managing Director, Whole-time Directors and
(b) The remuneration for KMPs, employees at Senior Management and other employees.

The structure of the remuneration to be made keeping the best interest of the Company in order to attract and motivate talent to pursue the Company’s long-term plans.

PART-B

Appointment criteria and qualifications

The criteria for the appointment of directors, KMPs and Senior Management employees are as follows:

The committee shall identify and ascertain the integrity, qualification, expertise and experience of the person for appointment as director, KMP or Senior Management and recommend to the Board his/ her appointment.

A person to be appointed as Director, KMP or at Senior Management should possess adequate qualification, expertise and experience for the position he/she is considered for appointment. The committee has discretion to decide whether qualification, expertise and experience possessed by a person are sufficient / satisfactory for the concerned position.

A person, to be appointed as Director should possess impeccable reputation for integrity, deep expertise and insights in sectors / areas relevant to the Company, ability to contribute to the Company’s growth, and complementary skills in relation to the other Board members.

As per regulation 17 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Appointment of a person on the board of directors is taken at the next general meeting or within a time period of three months from the date of appointment, whichever is earlier.

As per Regulation 25(6) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 any vacancy of an Independent Director, as a result of resignation or removal from the board of directors to be filled within three months from the date of such vacancy.

The Company shall not appoint or continue the employment of any person who has attained the age of 70 years as Managing Director / Executive or Whole time Director. Provided that the term of the person holding this position may be extended beyond the age of 70 years with the approval of shareholders by passing a special resolution as per section 196 of Companies Act, 2013

As per regulation 17 (1A) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Company shall appoint a person or continue the directorship of any person as a non-executive director who has attained the age of seventy-five years unless a special resolution is passed to that effect.

A whole-time KMP of the Company shall not hold office in more than one company except in its subsidiary company at the

36^{\mathrm{th}}
Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - VII contd.,

same time. However, a whole-time KMP can be appointed as a non-executive director in any Company.

As per regulation 25 (2A) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the appointment, re-appointment or removal of an independent director of a listed entity, shall be subject to the approval of shareholders by way of a special resolution.

As per regulation 6 (1A) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Any vacancy in the office of the Compliance Officer shall be filled by the listed entity at the earliest and in any case not later than three months from the date of such vacancy. Provided that the Company shall not fill such vacancy by appointing a person in interim capacity, unless such appointment is made in accordance with the laws applicable in case of a fresh appointment to such office and the obligations under such laws are made applicable to such person.

Criteria of Independence

The NRC shall assess the independence of Directors at the time of appointment / re-appointment and the Board shall assess the same annually. The Board shall re-assess determinations of independence when any new interests or relationships are disclosed by a Director.

The criteria of independence, as per provisions of section 149 of Companies Act, 2013 and regulation 17 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

An independent director in relation to a company, means a director other than a Managing Director or a whole-time director or a nominee director:

a) who, in the opinion of the Board, is a person of integrity and possesses relevant expertise and experience:

b) who is or was not a promoter of the company or its holding, subsidiary or associate company:

c) who is not related to promoters or directors in the company, its holding, subsidiary or associate company, or their promoters, or directors, during the two immediately preceding financial years or during the current financial year:

e) none of whose relatives has or had pecuniary relationship or transaction with the company its holding, subsidiary or associate company, or their promoters, or directors, amounting to two per cent or more of its gross turnover or total income or fifty lakh rupees or such higher amount

as may be prescribed, whichever is lower, during the two immediately preceding financial years or during the current financial year:

f) who, neither himself nor any of his relatives holds or has held the position of a Key Managerial Personnel or is or has been employee of the company or its holding, subsidiary or associate company in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed is or has been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed, of a firm of auditors or company secretaries in practice or cost auditors of the company or its holding, subsidiary or associate company

g) any legal or a consulting firm that has or had any transaction with the company, its holding, subsidiary or associate company amounting to ten per cent or more of the gross turnover of such firm holds together with his relatives two per cent or more of the total voting power of the company; or is a Chief Executive or director, by whatever name called, of any nonprofit organisation that receives twenty-five per cent or more of its receipts from the company, any of its promoters, directors or its holding, subsidiary or associate company or that holds two per cent or more of the total voting power of the company

h) shall possess appropriate skills, experience and knowledge in one or more fields of finance, law, management, sales, marketing, administration, research, corporate governance, technical operations, corporate social responsibility or other disciplines related to the Company's business.

i) shall possess such other qualifications as may be prescribed, from time to time, under the Companies Act, 2013.

j) who is not less than 21 years of age.

The Independent Directors shall abide by the "Code for Independent Directors" as specified in Schedule IV to the Companies Act, 2013

Other directorships / committee memberships

The Board members are expected to have adequate time and expertise and experience to contribute to effective Board performance. Accordingly, members should voluntarily limit their directorships in other listed public limited companies in such a way that it does not interfere with their role as directors of the Company. The Committee shall take into account the nature of, and the time involved in a Director's service on other Boards, in evaluating the suitability of the individual Director and making its recommendations to the Board.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure - VII contd.,

As per regulation 17A and 26 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 165 of Companies Act, 2013 and rules thereto:

a) A Director shall not serve as Director in more than 20 companies of which not more than 10 shall be Public Limited Companies
b) A Director shall not serve as an Independent Director in more than 7 Listed Companies and not more than 3 Listed Companies in case he is serving as a Whole-time Director in any Listed Company.
c) A Director shall not be a member in more than 10 Committees or act as Chairman of more than 5 Committees across all companies in which he holds directorships. For the purpose of considering the limit of the Committees, Audit Committee and Stakeholders' Relationship Committee of all Public Limited Companies, whether listed or not, shall be included and all other companies including Private Limited Companies, Foreign Companies and Companies under Section 8 of the Companies Act, 2013 shall be excluded.

Term /Tenure

Chairman, Managing Director / Whole-time Director

The Company shall appoint or re-appoint any person as its Managing Director or Whole-time Director for a term not exceeding five years at a time. No re-appointment shall be made earlier than one year before the expiry of the term.

Independent Director

As per the provisions of section 149 of the Companies Act, 2013, An Independent Director shall hold office for a term up to five consecutive years on the Board of the Company and will be eligible for reappointment on passing of a special resolution by the Company and disclosure of such appointment in the Board's report.

No Independent Director shall hold office for more than two consecutive terms, but such Independent Director shall be eligible for appointment after the expiry of three years of ceasing to become an Independent Director. Provided that an Independent Director shall not, during the said period of three years, be appointed in or be associated with the Company in any other capacity, either directly or indirectly.

At the time of appointment of an Independent Director, it should be ensured that the number of Boards on which such Independent Director serves is restricted to seven listed companies as an Independent Director, and three listed companies as an Independent Director in case such person is serving as a whole-time (executive) Director of a listed company.

Removal

Where any of the Director becomes disqualified to be a Director of the Company due to any of the reasons of disqualifications as mentioned in the Companies Act, 2013 and rules made thereunder or under any other applicable Acts, rules and regulations, the committee may recommend to the Board, with reasons recorded in writing the removal of such Director, KMP or Senior Management subject to the provisions and compliance of the said Act, rules and regulations under which such disqualification arises.

Retirement

The Whole-time Directors, KMP and Senior Management personnel shall retire as per the applicable provisions of the Companies Act, 2013 and the prevailing policy of the Company. The Board will have the discretion to retain the Whole-time Directors, KMP and Senior Management personnel in the same position or otherwise, even after attaining the retirement age, for the benefit of the Company subject to such approvals as may be required under the provisions of the Companies Act, 2013.

PART -C

Remuneration of Directors, KMPs and Senior Management

Remuneration to Managing Director; Whole-time Directors:

The remuneration / compensation / commission to Directors will be determined by the committee and recommended to the Board for approval.

The remuneration and commission to be paid to the Managing Director and the Whole-time Directors shall be in accordance with the provisions of the Companies Act, 2013, and the rules made thereunder. Increments to the existing remuneration / compensation structure may be recommended by the committee to the Board which should be within the limits approved by the shareholders.

Where any insurance is taken by the Company on behalf of its Managing Director and / or of its Whole-time Directors for indemnifying them against any liability, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel. Provided that, if such person is proved to be guilty, the premium paid on such insurance shall be treated as part of the remuneration.

Minimum remuneration to Managing Director and Whole-time Directors

If, in any financial year, the Company has no profits or its profits are inadequate, the Company shall pay minimum remuneration to its Managing Director and the Whole-time Directors in accordance with the provisions of Schedule V of the Companies Act, 2013, including any statutory modifications or amendments thereof.

36^{\mathrm{th}} Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - VII contd.,

Remuneration to Non-executive / Independent Directors

The remuneration payable to each Non-Executive Director is based on the remuneration structure as determined by the Board, and is revised from time to time, depending on individual contribution, the Company's performance, and the provisions of the Companies Act, 2013 and the rules made thereunder. Such remuneration to Non-executive/Independent Directors may be paid within the monetary limits approved by shareholders, subject to the limits not exceeding 1% of the profits of the Company computed as per section 197 of Companies Act, 2013.

Remuneration of other KMPs and Senior Management

At the time of appointment, the Remuneration Committee shall fix the remuneration and reward structure for other KMPs (i.e., CFO & CS) and Senior Management based on their qualifications and expertise and forward its recommendations to the Board for its approval. The annual increments to these employees to be decided and awarded by the Managing Director based on their performance and Caliber to retain the talent in a competitive environment.

Remuneration to other employees

Employees shall be assigned grades according to their qualifications and work experience, competencies as well as their roles and responsibilities in the organization. Individual remuneration shall be determined within the appropriate grade and shall be based on various factors such as job profile, skill sets, seniority, experience, and prevailing remuneration levels for equivalent jobs.

Eligibility of Employee Stock Option Scheme

A Stock Option Grant made pursuant to the Plan may be Granted only to an individual who, at the time of Grantis a permanent employee of the Company working in India or out of India Is a Director of the Company. An employee of a subsidiary, in India or outside India, or a holding company of company. The Committee however is authorized to change the eligibility criteria from time to time, subject to approval of the Board. Each Grant shall be evidenced by a written instrument duly executed by or on behalf of the Company.

Following individuals are not eligible as per regulation 2(i) of definition of Employee under Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021:

An Employee who is a Promoter or belongs to the Promoter Group;
A Director who either by himself or through his relative(s) or through any body corporate, directly or indirectly holds more than 10% of the outstanding equity Shares of the Company;
An Independent Director

The Nomination & Remuneration Committee will determine the specific employees or class of employees who will be eligible for award of stock options based on the performance criteria and such other criteria as may be decided.

Policy review

This policy is framed in the best interest of the Company based on the provisions of the Section 178 of Companies Act, 2013 and rules made thereunder and requirements of Regulation 19 and Schedule II, Part D of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In case of any subsequent changes in the provisions of the Companies Act, 2013 or any other regulations which makes any of the provisions in the policy inconsistent with the Act or regulations, the provisions of the Act or regulations so amended would prevail over the policy, and the provisions in the policy would be modified in due course to make it consistent with the law.

This policy shall be reviewed by the nomination and remuneration committee as and when changes need to be incorporated in the policy due to changes in regulations or as may be felt appropriate by the committee. Any change or modification in the policy as recommended by the committee requires approval of the Board.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure - VII contd.,

BOARD DIVERSITY POLICY

Pursuant to Part D(A)(3) of Schedule II of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

1. PURPOSE

The Board Diversity Policy ('the Policy') sets out the approach to diversity in the Board of Vimta Labs Limited (the Company').

Building a Board of diverse and inclusive culture is integral to the success of VIMTA Labs Ltd. Age, gender and professional diversity are areas of strategic focus to the composition of our Board. The Board considers that its diversity, including gender diversity, is a vital asset to the business.

The Company believes that a diverse Board will contribute to the achievements of its vision and strategic objectives, including to:

Drive business results;
Make corporate governance more effective;
Enhance quality and responsible decision making capability;
Ensure sustainable development; and
Enhance the reputation of the Company.

Company has approved and adopted this Policy as formulated in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the Listing Regulations") and provisions of the Companies Act, 2013 ("the Act"), at its meeting held on 12th May 2022, being the effective date of the Policy.

2. SCOPE

The Policy applies specifically to the Board and excludes diversity in relation to employees of the Company.

3. POLICY STATEMENT

Company recognizes and embraces the benefits of having a diverse Board and sees increasing diversity at Board level as an essential element in achieving a sustainable development and a competitive advantage.

A truly diverse Board will include and make good use of differences in the skills, industry experience and expertise, background, gender and other distinctions among Directors. These differences shall be considered in determining the optimum composition of the Board and when possible, shall be balanced appropriately on need basis.

The Nominations and Remuneration Committee ('the Committee') reviews and assesses Board's composition on behalf of the Board and recommends the appointment of Directors as follows:

> In reviewing Board composition, the Committee will consider the benefits of all aspects of diversity including, but not limited to, those described above, to enable the Board to discharge its duties and responsibilities effectively.
> In identifying suitable candidates for appointment to the Board, the Committee will consider candidates on merit against objective criteria and with due regard for the benefits of diversity on the Board.

4. MEASURABLE OBJECTIVES

The Board shall have an optimum combination of Executive, Non-Executive and Independent directors in accordance with requirements of the Articles of Association of the Company, the Companies Act, 2013, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the statutory, regulatory and contractual obligations of the Company.

Selection of candidates will be based on a range of diversity perspectives, including but not limited to gender, age, educational background, professional experience, skills and knowledge. The ultimate decision will be based on merit and contribution that the selected candidates will bring to the Board.

5. MONITORING AND REPORTING

Nomination and Remuneration Committee shall monitor and report compliance to this policy to the Board and ensure compliance with Section 178 of the Companies Act, 2013 read along with applicable rules thereto and Clause 49 under Listing Agreement effective from 1st October, 2014. This committee is (among other things) responsible for:

Formally assessing the appropriate mix of diversity, skills, experience and expertise required on the Board and assessing the extent to which the required skills are represented on the Board;
Making recommendations to the Board in relation to Board succession, including the succession of the Chairman, to maintain an appropriate mix of Diversity, skills, experience and expertise on the Board;
To recommend to the Board the appointment and removal of Senior Management;

36^{\mathrm{th}} Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - VII contd.,

To recommend to the Board on (i) policy relating to remuneration for Directors, Key Managerial Personnel and Senior Management and (ii) Executive Directors remuneration and incentive and
Reviewing and reporting to the Board in relation to Board Diversity.

As part of the annual performance evaluation of the effectiveness of the Board, Board Committees and individual Directors, the balance of skills, experience, independence, knowledge and how the Board works together as a unit, and other factors relevant to its effectiveness would be considered.

The Nomination and Remuneration Committee will report to the Board on any initiatives undertaken and progress made by the Committee in relation to Board Diversity and to achieve the measurable objectives.

The Nomination and Remuneration Committee will report annually, in the Corporate Governance Report, on the Board's composition under diversified perspectives, and monitor the implementation of the Policy.

The effective implementation of this policy requires that shareholders are able to judge for themselves whether the Board as constituted is adequately diverse. To this end, Company shall continue to provide sufficient information to shareholders about the size, qualifications and characteristics of each Board Member.

6. REVIEW OF THE POLICY

The Committee will review the Policy as may be deemed necessary, discuss any revisions that may be required and recommend the same to the Board for approval.

7. DISCLOSURE OF THE POLICY

The Policy will be published on the Company's website for public information. The Policy together with the composition of the Board and he size, qualifications and characteristics of each Board Member will be disclosed in the Corporate Governance Report annually.

8. POLICY GOVERNANCE

Approved by: The Board

Responsibility for document management: Managing Director & Company Secretary.

Dr. Sivalinga Prasad Vasireddi

Place : Hyderabad

Date: 06th May 2026

Executive Chairman

(DIN:00242288)

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure – VIII

Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014).

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto.

1. Details of contracts or arrangements or transactions not at arm’s length basis.

Sl. No.	Name(s) of the related party and nature of relationship	Nature of contracts/ arrangements/ transactions	Duration of the contracts/ arrangements/ transactions	Salient terms of the contracts or arrangements or transactions including the value, if any	Justification for entering into such contracts or arrangements or transactions	Date(s) of approval by the Board	Amount paid as advances, if any	Date on which the special resolution was passed in general meeting as required under first proviso to Section 188
There were no contracts, arrangements or transactions entered into during the financial year ended 31st March 2026 which were not on an arm’s length basis.

2. A. Details of material contracts or arrangements or transactions at arm’s length basis.

Sl. No.	Name of the related party and nature of relationship	Nature of Contracts/ arrangements/ transactions	Duration of Contracts/ arrangements/ transactions	Salient terms of the contracts or arrangements or transactions including the value; if any;	Date of approval by the Board/ Shareholders, if any.	Justification For entering into Contract/ Arrangement
1	Mr. Sireesh Chandra Vungal, son of the Executive Director – Operations of the Company.	Appointment to Office or Place of Profit: Presently serving as Vice President – Information Technology Group.	w.e.f., 1st October 2019	Approval granted by the Shareholders for payment of remuneration not exceeding ₹ 7,00,000/- per month.	27th July 2019	Commensurate with Qualification and experience an amount of ₹ 6,16,405/- p.m. including Perquisites is being paid within the limits approved by Shareholders.

36th Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - VIII contd.,

B. Details of contracts or arrangements or transactions at arm's length basis.

(₹ in millions)

Sl. No.	Name of the related party and nature of relationship	Nature of Contracts/ arrangements/ transactions	Duration of Contracts/ arrangements/ transactions	Salient terms of the contracts or arrangements or transactions including the value; if any;	Date of approval by the Board/ Shareholders, if any.
1	Bloomedha Info Solutions Private Limited
Relative of Managing Director & Chairman of the Company.	IT Services	Ongoing, w.e.f., 28th April 2025	Services received for ₹ 1 million during the year	28th April 2025	Commensurate with market standards.
2	Escientia Advanced Sciences Private Limited.
Dr. Yadagiri R Pendri is an Independent Director of the Company.	Testing Services	Ongoing, w.e.f., 28th April 2025	Services provided for ₹ 2.49 million during the year	28th April 2025	Commensurate with market standards.
3	Eurofins Analytical Services India Private Limited
Entity holding 10% or more Equity Shares	Testing Services	Ongoing, w.e.f., 28th April 2025	Services received for ₹ 0.66 million during the year	28th April 2025	Commensurate with market standards.
4	Eurofins DiscoverX Products, LLC
Entity holding 10% or more Equity Shares	Testing Services	Ongoing, w.e.f., 28th April 2025	Services received for ₹ 56.88 million during the year.	28th April 2025 & 06th May 2026.	Commensurate with market standards.
5	Avantel Limited
Ms. Harita Vasireddi is an Independent Director of the Company.	Testing Services	Ongoing, w.e.f., 28th April 2025	Services provided for ₹ 2.12 million during the year.	28th April 2025	Commensurate with market standards.
6	Avanti Feeds Limited
Ms. Y Prameela Rani is the Independent Director of the Company.	Testing Services	Ongoing, w.e.f., 28th April 2025	Services provided for ₹ 0.46 million during the year	28th April 2025	Commensurate with market standards.

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Board's Report

Annexure - VIII contd.,

Sl. No.	Name of the related party and nature of relationship	Nature of Contracts/ arrangements/ transactions	Duration of Contracts/ arrangements/ transactions	Salient terms of the contracts or arrangements or transactions including the value; if any;	Date of approval by the Board/ Shareholders, if any.	Justification For entering into Contract/ Arrangement
7	Ms. Praveena Vasireddi, daughter of the Executive Chairman of the Company and sister of the Managing Director of the Company.	Appointment to Office or Place of Profit: Presently serving as General Manager – Infrastructure Planning & Development.	Ongoing, w.e.f., 28th June 2023	Appointed on a Monthly remuneration not exceeding ₹ 3,50,000/- per month An amount of ₹ 2,69,332/- p.m. Including perquisites is being paid.	28th June 2023	Commensurate with Qualification and experience.
8	Ms. Sudeshna Vungal, daughter of the Executive Director – Operations of the Company.	Appointment to Office or Place of Profit: served as General Manager – Quality Assurance.	With effect from 28th June 2023 to 26th June 2025 (both days inclusive). Last working day: 26th June 2025.	Appointed on a monthly remuneration not exceeding ₹ 3,50,000/-. An amount of ₹ 2,65,167/- per month, including perquisites, is being paid.	28th June 2023	Commensurate with Qualification and experience

Place : Hyderabad
Date : 06th May 2026

Dr. Sivalinga Prasad Vasireddi
Executive Chairman
(DIN:00242288)

36th Annual Report, 2025 - 26

Annexures to Board's Report

Annexure - IX

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

Information on Conservation of Energy, Technology Absorption, Foreign Exchange earnings and outgo (forming part of the Board's Report for the year ended 31st March 2026).

A. Conservation of Energy

The Company has undertaken the following initiatives for energy conservation of energy during the financial year under review:

Installation of heat recovery wheels in the Animal Holding Facility to capture and reuse energy from exhaust air.
Implementation of run-around coil systems for Air Handling Units (AHUs) to enhance energy efficiency.
Replacement of conventional lighting with energy-efficient LED lighting across facilities.
Installation of timers for street lighting systems to optimize energy consumption.
Operation of chillers under optimal conditions by maintaining controlled condenser approach, improving overall system efficiency.
Installation of Variable Frequency Drives (VFDs) for AHUs to enable optimal utilization and energy savings.
Capital investment - Capital investment made on energy conservation equipment during the financial year 2025-26 amounted to ₹ 20.15 million.

B. Technology Absorption

The Company continues to adopt and integrate advanced technologies to improve operational efficiency and energy performance:

Modernization of a Building Management System (BMS) for centralized monitoring and control of all AHUs, enabling optimal scheduling of operations and integration with VFD controls.
Installation of DG synchronization panels, ensuring that only the required number of DG sets operate based on load demand, thereby improving fuel efficiency and reducing operational costs.
Adoption of VFD-controlled air compressors, maintaining constant pressure while optimizing energy consumption and enhancing system efficiency.

C. Foreign exchange earnings and outgo

During the financial year under review, the Company earned foreign exchange amounting to ₹ 1,528.43 million as against ₹ 1,214.55 million in the previous financial year. The foreign exchange outgo during the year amounted to ₹ 306.51 million as against ₹ 243.54 million in the previous financial year, towards import of capital goods, software, chemicals, consumables and reference standards, travel expenditure and professional services.

Dr Sivalinga Prasad Vasireddi
Executive Chairman
(DIN:00242288)

Place : Hyderabad
Date: 06th May 2026

36th Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Corporate Governance Report

Annexure - A

CORPORATE GOVERNANCE REPORT

[Pursuant to Schedule V (C) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 ('Listing Regulations')]

I. COMPANY'S PHILOSOPHY ON CORPORATE GOVERNANCE

Vimta Labs Limited's ("Vimta" or "the Company") Corporate Governance philosophy stems from the belief that Corporate Governance is a key element in improving efficiency and growth as well as enhancing confidence of all stakeholders. Company also believes that Corporate Governance goes beyond regulatory requirement, and has laid strong emphasis on transparency, accountability, responsibility, fairness, integrity, consistent value systems and delegation across all its operations.

II. BOARD OF DIRECTORS

i. Composition

The Company's Board has an optimum combination of executive and non-executive Independent Directors. Out of the total strength of the Board, currently four members are Executive and other four members are Non-Executive Independent Directors. The Independent Directors on the Board are senior, competent and highly qualified from different fields. Two of the Board members are Women Directors. Active participation of the Independent Directors have been invaluable in the decision-making process of the Board.

Composition of the Board of Directors as on 06th May 2026

ii. Attendance and other Directorships

During the financial year under review, the Board of Directors met four (4) times. Those meetings were held on 28th April 2025; 17th July 2025; 03rd November 2025 and 28th January 2026 with a gap not exceeding one hundred and twenty days between any two meetings.

36th Annual Report, 2025 - 26

Corporate Governance Report

Board Meetings held during the financial year 2025-26

iii. Particulars of Attendance and other Directorships

The details of the Board of Directors including their attendance at the meetings of Board and Shareholders, directorships / chairmanships / memberships on the Boards/ Committees of other Companies and names of the listed entities where the person is a Director and the category of directorship as required under Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015 read with Schedule V of Listing Regulations are as below:

Name	Category	No. of Board Meetings		Attendance at the last AGM 06th June 2025	No. of Directorships in other Companies		*Chairmanships / memberships in other Companies		Name of other listed entities where he/ she is a director and the category of directorship
		Held	Attended		**Others	Public	Chairmanship	Membership*#
Dr. S P Vasireddi	Promoter, Executive Chairman	4	4	Yes	-	-	-	-	-
Ms. Harita Vasireddi	Managing Director	4	4	Yes	-	1	-	1	Avantel Limited - Independent Director
Mr. Harriman Vungal	Promoter & Executive Director – Operations	4	4	Yes	2	-	-	-	-
Mr. Satya Sreenivas Neerukonda	Executive Director	4	4	Yes	-	-	-	-	-
Ms. Y Prameela Rani	Independent Non-Executive Director	4	4	Yes	6	2	5	8	Krishna Institute of Medical Sciences Limited and Avanti Feeds Limited - Independent Director
Mr. Gutta Purnachandra Rao	Independent Non-Executive Director	4	4	Yes	-	-	-	-	-
Mr. Sanjay Dave	Independent Non-Executive Director	4	4	Yes	-	-	-	-	-
Dr. Yadagiri R Pendri	Independent Non-Executive Director	4	3	Yes	3	-	-	-	-

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Corporate Governance Report

Notes:

*Chairmanships / memberships in other Companies include only in Audit and Stakeholders Relationship Committees as required under regulation 26(1)(b) of SEBI (LODR) Regulations, 2015.

*# Where a Director serves both as Chairperson and Member of a Committee, such Director has been considered in the total Committee membership as well as in the position of Chairperson, wherever applicable.

**Other Companies includes section 8 companies, Private Limited Companies and LLPs.

None of the Directors on the Board are a member on more than 10 Committees, and Chairman of more than 5 Committees, across all the companies in which they are Directors. None of the Directors hold office in more than 10 Public Companies, and none of the Directors serve as Independent Director in more than seven listed companies and none of the director hold the Chairman's or Chairperson's position on any other companies Board Composition.

iv. Disclosure of relationships between Directors / KMP inter-se

> Dr. Sivalinga Prasad Vasireddi (DIN 00242288), Executive Chairman: Ms. Harita Vasireddi (DIN 00242512), Managing Director is daughter of Dr. Sivalinga Prasad Vasireddi.
> Mr. Satya Sreenivas Neerukonda (DIN: 00269814), Executive Director: Ms. Sujani Vasireddi, Company Secretary and Compliance Officer, is the spouse of Mr. Satya Sreenivas Neerukonda.

Except as mentioned above, none of the Directors / KMP are related to each other.

v. Number of Shares and convertible instruments held by Non-Executive Directors

None of the Non-Executive Directors of the Company are holding any equity shares or convertible instruments as on 31st March 2026.

vi. Familiarization programmes imparted to Independent Directors

Board based on the recommendation of the Nomination and Remuneration Committee conducts familiarization programme for Independent Directors to provide them an opportunity to familiarize with the Company, its management and its operations so as to gain a clear understanding of their roles and responsibilities in relation to the business of the Company. They have full opportunity to interact with Senior Management personnel and are provided all documents required and sought by them for enabling them to have a good understanding of the Company its various operations and the industry of which it is a part. The initiatives undertaken by the Company

in this respect have been disclosed on the website of the Company, which can be accessed at https://vimta.com/wp-content/uploads/Familiarization-Programmes-imparted-to-Independent-Directors-up-to-2025-2026.pdf

vii. List of core skills/expertise/competencies identified for the Board of Directors are as under

Knowledge of the industry and environment(s) in which the Company is doing business. Ability to assess and manage strategic and operational risks including but not limited to regulatory and legal risks.
Ability to communicate expectations and concerns in a constructive manner and develop meaningful interpersonal relationships with other Board members and executive management.
Experience and knowledge of Board governance practices. Clear understanding of roles and responsibilities of the Board of a Company and responsibilities as a Director of the Company.
Good understanding of financial reporting and the accounting and control practices required to manage financial risks.
Technology expertise with knowledge of current and emerging technologies.
Commitment to the Company, its culture, values and people; displaying a commitment to the Board and the role individual Directors play in ensuring overall Board effectiveness.

Competency Matrix of Board of Directors as on 31st March 2026

Name of the Director	Core Skills/ Expertise/Competency
Dr. Sivalinga Prasad Vasireddi	Founder, visionary leadership, domain expertise in CRO & TIC industries, management & strategy, financial acumen and corporate governance.
Ms. Harita Vasireddi	Business planning, management & strategy delivery, quality management systems, operations management & planning, corporate governance.
Mr. Harriman Vungal	Operational management, planning and general management & regulatory, corporate governance.
Mr. Satya Sreenivas Neerukonda	Business development and Strategy, creative, strong communication and negotiation skills, problem solving skills, corporate governance.
Ms. Y Prameela Rani	Banking, credit management, general management, foreign exchange, strong financial acumen, corporate governance.

36th Annual Report, 2025 - 26

Corporate Governance Report

Name of the Director	Core Skills/ Expertise/Competency
Mr. Purnachandra Rao Gutta	Chartered Accountant, internal and statutory auditing, incorporation matters, project financing, internal financial controls and MIS, corporate governance.
Mr. Sanjay Dave	Expert on food safety standards, public sector policy, strategy and administration, strong scientific and policy level influence with national and international bodies, corporate governance.
Dr. Yadagiri R Pendri	Science & engineering domain expertise in pharmaceutical manufacturing, pharma industry domain expertise, researcher, strategist, business management & leadership, financial acumen, corporate governance.

viii. Confirmation of Independence

The Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence prescribed under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. In the opinion of the Board, all the Independent Directors satisfy the conditions specified under the aforesaid Regulations and are independent of the management.

III. DETAILS OF DIRECTORS PROPOSED FOR APPOINTMENT AND REGULARISATION OF APPOINTMENT AT THE ANNUAL GENERAL MEETING

Mr. Harriman Vungal (DIN 00242621), Executive Director - Operations

Mr. Harriman Vungal (DIN 00242621), Executive Director - Operations shall retire by rotation and being eligible, seeks re-appointment.

Dr. S P Vasireddi (DIN: 00242288), Executive Chairman

The Board of Directors on recommendations of the Nomination and Remuneration Committee and on approval of Audit Committee has recommended re-appointment of Dr. S P Vasireddi (DIN: 00242288), Executive Chairman for a term of five (5) years at the ensuing Annual General Meeting.

The complete details and brief profile of both the directors are enclosed in the notice of Annual General Meeting.

IV. COMMITTEES OF THE BOARD

The Board has constituted five Committees, namely the Audit Committee, Nomination and Remuneration Committee, Stakeholders' Relationship Committee, Corporate Social Responsibility Committee and Risk Management Committee. The terms of reference of these Committees are determined and reviewed by the Board from time to time. Meetings of the Board Committees are convened by the respective Chairpersons of such Committees.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Corporate Governance Report

Composition of the Committees of the Board as on 06th May 2026

The terms of reference, role and composition of these Committees, including the number of meetings held during the financial year and the related attendance is provided below:

i. Audit Committee

a) Terms of Reference

The terms of reference of the Audit Committee are in accordance with the provisions of Regulation 18 (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 177 of the Companies Act, 2013. The Committee is, inter alia, responsible for the following:

Monitoring of the Company's financial reporting process, disclosure of its financial information and to ensure the correctness & credibility of the financial statements;
Recommending the appointment, remuneration and terms of appointment of statutory, secretarial, internal and cost auditors of the Company;
Reviewing with the Management, the quarterly and annual financial statements and auditor's report thereon before submission to the board for its approval;
Reviewing and monitoring the auditor's independence and performance, and effectiveness of audit process;
Reviewing and providing its recommendations to the board w.r.t., transactions of the Company with related parties;

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Evaluation of internal financial controls and risk management systems;
Reviewing with the Management, the performance of statutory and internal auditors and the adequacy of the internal control systems;
Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board;
Discussing with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern; and
Reviewing the functioning of the Whistle Blower mechanism.

b) Composition

The Committee comprises three members, all of whom are Non-Executive Independent Directors of the Company. The composition of the Committee for the financial year under review was as follows: Mr. Gutta Purnachandra Rao (DIN: 00876934), Chairman of the Committee, Ms. Yalamanchili Prameela Rani (DIN: 03270909) and Mr. Sanjay Dave (DIN: 08450232), Members of the Committee.

c) Meetings and Attendance

During the year ended 31st March 2026, the Audit Committee met four (4) times. These meetings were held on 28th April 2025; 17th July 2025; 03rd November 2025 and 28th January 2026.

Name of the member	Meetings held	Attendance
Mr. Gutta Purnachandra Rao	4	4
Ms. Yalamanchili Prameela Rani	4	4
Mr. Sanjay Dave	4	4

All the members of the Audit Committee are financially literate and have expertise in accounting/financial management.

Dr. Yadagiri R Pendri (DIN: 01966100), Independent Director; Dr. Sivalinga Prasad Vasireddi (DIN: 00242288), Executive Chairman; Ms. Harita Vasireddi (DIN: 00242512), Managing Director; Mr. Satya Sreenivas Neerukonda (DIN: 00269814), Executive Director; Mr. Harriman Vungal (DIN: 00242621), Executive Director – Operations; Mr. Siva Rama Krishna Kambhampati, Chief Financial Officer; Mr. G Srinivasa Rao, Partner of M/s Gattamaneni & Co., Statutory Auditors; and Mr. Chaitanya V, Partner of M/s Chaitanya V & Associates, Internal Auditors of the Company, attended the meetings of the Audit Committee held during the year under review as invitees. Ms. Sujani Vasireddi, Company Secretary of the Company, acts as the Secretary to the Committee.

ii. Nomination and Remuneration Committee

a) Terms of Reference

The role of the Nomination and Remuneration Committee, inter alia, includes formulating criteria for determining qualifications, positive attributes, diversity and independence of Directors; recommending to the Board policies relating to the appointment, remuneration and evaluation of Directors, Key Managerial Personnel and senior management personnel; identifying qualified persons for appointment to the Board and senior management positions; and carrying out such other functions as prescribed under the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

b) Composition

The Committee comprises of three Non-Executive Independent Directors. The composition of the Committee was as follows: Mr. Sanjay Dave (DIN: 08450232), Chairman of the Committee, Mr. Gutta Purnachandra Rao (DIN: 00876934) and Ms. Yalamanchili Prameela Rani (DIN: 03270909), Members of the Committee.

c) Meetings & Attendance

During the year ended 31st March 2026, the Nomination and Remuneration Committee met three (3) times. These meetings were held on 28th April 2025; 17th July 2025 and 12th December 2025.

Name of the member	Meetings held	Attendance
Mr. Sanjay Dave	3	3
Mr. Gutta Purnachandra Rao	3	3
Ms. Yalamanchili Prameela Rani	3	3

Ms. Harita Vasireddi (DIN: 00242512), Managing Director, and Mr. Satya Sreenivas Neerukonda (DIN: 00269814), Executive Director, attended the meetings of the Nomination and Remuneration Committee held during the year under review as invitees. Ms. Sujani Vasireddi, Company Secretary of the Company, acts as the Secretary to the Committee.

d) Remuneration Policy

The Committee has formulated a Nomination and Remuneration Policy for Directors, Key Managerial Personnel and Senior Management personnel/employees of the Company. The said Policy is in line with the provisions of Section 178(4) of the Companies Act, 2013, read with the rules made thereunder, and Regulation 19 of the SEBI (Listing Obligations and Disclosure Requirements)

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Vimta
Driven by Quality. Inspired by Science.
Corporate Governance Report

Regulations, 2015. The objectives and purpose of the Policy are as follows:

To formulate the criteria for determining qualifications, positive attributes of a Director, Key Managerial Personnel and other senior level employees of the company and
To formulate remuneration principles for the Directors, Key Managerial Personnel and other senior level employees of the Company.

e) Selection of new Directors

Based on the recommendations of the Nomination and Remuneration Committee, the Board appoints new Directors to the Board. The Committee undertakes the screening and selection process for identifying suitable candidates before making its recommendations to the Board.

f) Performance evaluation mechanism

It is the responsibility of the Board to monitor and review the Board evaluation framework. The Nomination and Remuneration Committee formulates the criteria and procedure for performance evaluation of the Directors, the Board as a whole and its committees. Each Board member evaluates the effectiveness of the Board with respect to its composition, dynamics and relationships, flow of information, decision-making process, relationship with stakeholders, Company performance, strategy and the effectiveness of the Board and its various Committees. The broad parameters for evaluation of the performance of individual/Independent Directors are as follows:

Their ability to contribute and monitor the implications of Company's corporate governance practice.
Their ability to contribute by introducing best practices of the industry and to address top-management issues.
Their active participation in long-term strategic planning.
Their commitment to the fulfilment of obligations as a director, fiduciary responsibilities and participation in Board and committee meetings.

g) Performance Evaluation Criteria for Independent Directors

The key areas for evaluation of individual Directors, including Independent Directors, include knowledge of the business, diligence and preparedness, effective interaction with other Board members, constructive contribution to discussions and strategy formulation, concern for stakeholders' interests, attentiveness towards internal control mechanisms and ethical conduct.

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h) Details of remuneration paid to the Directors during the year

(₹ In Millions)

Name of the Director	Salary	Commission	Sitting Fee	Total
Dr. Sivalinga Prasad Vasireddi	20.16	4	Nil	24.16
Ms. Harita Vasireddi	17.28	6	Nil	23.28
Mr. Harriman Vungal	17.28	4	Nil	21.28
Mr. Satya Sreenivas Neerukonda	17.28	6	Nil	23.28
Ms. Yalamanchili Prameela Rani	Nil	Nil	0.17	0.17
Mr. Gutta Purnachandra Rao	Nil	Nil	0.21	0.21
Mr. Sanjay Dave	Nil	Nil	0.21	0.21
Dr. Yadagiri R Pendri	Nil	Nil	Nil	Nil

Note:

Salary includes Basic Salary, Contribution to Funds, Perks and Allowances. During the year the whole-time Directors were paid remuneration under the provisions of Schedule V Part II Section II of the Companies Act, 2013 as amended to date.
During the financial year 2025-26 there are no pecuniary relationships or transactions of the Non-Executive Directors vis-à-vis the Company.
No payments were made to Non-Executive Independent Directors other than sitting fee as detailed herein above.
None of the Independent Directors are holding shares of the Company.
The Non-Executive Independent Directors are paid sitting fees of ₹10,000/- (Rupees Ten Thousand Only) for each Committee Meeting and ₹25,000/- (Rupees Twenty-Five Thousand Only) for each Board Meeting attended

iii. Stakeholders' Relationship Committee

a) Terms of Reference

The terms of reference of the Stakeholders' Relationship Committee are as under:

Resolving the grievances of security holders of the Company, including complaints relating to transfer/ transmission of shares, non-receipt of Annual Report, non-receipt of declared dividends, issue of new/ duplicate share certificates (Letter of Confirmation), general meetings and other related matters;
Review of measures taken for effective exercise of voting rights by shareholders;
Review of adherence to the service standards adopted by the Company in respect of services rendered by the Registrar and Share Transfer Agent;
Review of various measures and initiatives taken by the Company for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants, Annual Reports and statutory notices by the shareholders;
Review of dematerialisation of shares and related matters;
Resolving grievances of debenture holders (if any) relating to creation of charge, payment of interest/ principal, maintenance of security cover and other related covenants, wherever applicable; and
Performing such other functions relating to the interests of shareholders/investors of the Company as may be required under the provisions of the Companies Act, 2013, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable laws/regulations.

To expedite the process and ensure effective resolution of grievances/complaints, the Committee has delegated certain powers to the Registrar and Share Transfer Agent, i.e., M/s. CIL Securities Limited, to redress the complaints /grievances /enquiries of shareholders/investors under the supervision of the Company Secretary & Compliance Officer of the Company.

b) Composition

The committee comprises of two Non-Executive Independent Directors and one Executive Director. Mr. Gutta Purnachandra Rao, Chairman, Mr. Sanjay Dave and Mr. Satya Sreenivas Neerukonda are the Members of the Committee.

c) Meetings & Attendance

During the year ended 31st March 2026, the Stakeholder Relationship Committee met four (4) times. These meetings were held on 28th April 2025; 17th July 2025; 03rd November 2025 and 28th January 2026.

Name of the member	Meetings held	Attendance
Mr. Gutta Purnachandra Rao	4	4
Mr. Sanjay Dave	4	4
Mr. Satya Sreenivas Neerukonda	4	4

Ms. Sujani Vasireddi is the Company Secretary and Compliance Officer of the Company. The Board has authorised her to approve share transfers/ transmission/ issue of duplicate shares certificate (i.e., the Letter of Confirmation) and comply with other formalities in relation thereto.

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Vimta

Driven by Quality. Inspired by Science.

Corporate Governance Report

The details of shareholders' complaints received and resolved during the financial year ended 31st March 2026 are given in the table below:

Particulars	No. of Complaints
Number of shareholders’ complaints received during the financial year	1
Number of shareholders’ complaints resolved to the satisfaction of shareholders during the financial year	1
Number of pending shareholders’ complaints as at 31st March 2026	Nil

The Company is in compliance with the SEBI Master Circular on Online Dispute Resolution in the Indian Securities Market issued vide Circular No. SEBI/HO/OIAE/OIAE_JAD-3/P/CIR/2023/195 dated 31st July 2023 (updated as on 28th December 2023), and the SEBI Complaints Redress System (“SCORES”), the centralized web-based platform introduced by SEBI for redressal of investor grievances and online resolution of shareholders’ complaints. There were no outstanding investor complaints pending as on 31st March 2026.

As mandated by SEBI, a quarterly Reconciliation of Share Capital Audit is carried out by a Practicing Company Secretary to reconcile the total admitted capital held with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) vis-à-vis the total issued and listed capital of the Company. The Audit confirms that the total issued, listed and paid-up share capital of the Company is in agreement with the aggregate of the shares held in physical and dematerialised form with NSDL and CDSL.

As on 31st March 2026, out of the total 4,46,69,355 Equity Shares of ₹2/- each, 4,45,18,183 Equity Shares of ₹2/- each, representing 99.66% of the total equity share capital, were held in dematerialized form.

Investor Awareness and Unclaimed Dividend Reduction Initiative

During the financial year under review, in compliance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and pursuant to the "Saksham Niveshak – 100 Days Campaign" initiated by the Investor Education and Protection Fund ("IEPF") Authority, the Company undertook an exercise for revalidation of dividend payments in respect of shareholders whose updated bank account details were available in the Beneficial Position ("Benpos") received from the Depositories, with the objective of reducing the quantum of unclaimed dividends.

Pursuant to the said initiative, dividend aggregating to ₹3,28,958/- pertaining to the financial years 2018–19 to

2024–25 was successfully revalidated and transferred to the respective shareholders during financial year 2025–26. The initiative resulted in a reduction of 15.14% in the unclaimed dividend amount and benefited 21.86% of the shareholders covered under the exercise.

iv. Corporate Social Responsibility (CSR) Committee

a) Terms of Reference – Philosophy

Vimta believes that business enterprises are economic organs of society and that, to be a truly value-adding organisation, it should not only deliver quality scientific services but also contribute towards nurturing society and the environment in a manner commensurate with its economic capabilities. In line with this belief, Vimta undertakes Corporate Social Responsibility ("CSR") activities aimed at building a better and sustainable way of life for the weaker and needy sections of society. The programmes, projects and activities undertaken by the Company (collectively referred to as "CSR Programmes") are independent of the normal business activities of the Company.

b) Composition

The Committee comprises two Executive Directors and one Non-Executive Independent Director. The composition of the Committee was as follows: Ms. Harita Vasireddi (DIN: 00242512), Chairperson of the Committee, Mr. Harriman Vungal (DIN: 00242621) and Mr. Sanjay Dave (DIN: 08450232), Members of the Committee.

Note: The composition of the Committee was changed by the Board of Directors at its meeting held on 06th May 2026. The details of the said changes are provided in the Board's Report.

c) Meetings & Attendance

During the financial year under review, the Corporate Social Responsibility Committee met three (3) times. These meetings were held on 26th April 2025, 29th October 2025 and 28th January 2026.

Name of the member	Meetings held	Attendance
Ms. Harita Vasireddi	3	3
Mr. Harriman Vungal	3	3
Mr. Sanjay Dave	3	3

v. Risk Management Committee

The composition of the Committee reflects an optimal balance of Non-Executive Independent Directors, Executive Directors, Key Managerial Personnel (KMPs), and other senior business leaders, and is in accordance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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a) Terms of Reference

To formulate a detailed Risk Management Policy which shall include:

a. A framework for identification of internal and external risks specifically faced by the Company, including financial, operational, sectoral, sustainability (particularly, ESG related risks), information, cyber security risks or any other risk as may be determined by the Committee.

b. Measures for risk mitigation including systems and processes for internal control of identified risks.

c. Business continuity plan.

To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company.
To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk management systems.
To periodically review the risk management policy, at least once in two years, including by considering the changing industry dynamics and evolving complexity.
To keep the board of directors informed about the nature and content of its discussions, recommendations and actions to be taken.
The appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall be subject to review by the Risk Management Committee.

b) Composition

The Committee comprises one Non-Executive Independent Director, three Executive Directors, one Key Managerial Personnel (KMP) and two senior employees. The Committee is chaired by Mr. Satya Sreenivas Neerukonda (DIN: 00269814) and includes Mr. Sanjay Dave (DIN: 08450232), Ms. Harita Vasireddi (DIN: 00242512), Mr. Harriman Vungal (DIN: 00242621), Dr. Upendra Bhatnagar, Senior Vice President – Pre-Clinical, Mr. Srinivas Prathipati, Associate Vice President - Food, and Mr. Siva Rama Krishna Kambhampati, Chief Financial Officer as members.

c) Meetings & Attendance

During the year under review, the Risk Management Committee met two times. These meetings were held on 16th July 2025 and 10th February 2026.

Name of the member	Meetings held	Attendance
Mr. Satya Sreenivas Neerukonda	2	2
Mr. Sanjay Dave	2	2
Ms. Harita Vasireddi	2	2
Mr. Harriman Vungal	2	2
Dr. Upendra Bhatnagar	2	2
Mr. Srinivas Prathipati	2	2
Mr. Siva Rama Krishna Kambhampati	2	2

Dr. Rajesh Medisetty, President of Biologics attended the meetings of the Risk Management Committee as an invitee. Ms. Sujani Vasireddi, Company Secretary of the Company acts as the Secretary of the said Committee.

V. SUB-COMMITTEES

There are various sub-committees constituted by the Board of Directors to specifically oversee the implementation of defined functions and responsibilities of the Company.

POSH Committee – The Committee is constituted in compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, and is responsible for ensuring effective implementation of the Act, including conducting awareness and training programmes for employees and redressal of complaints and grievances, if any.
ESOP Allotment Committee – The Committee is responsible for reviewing and monitoring the Employee Stock Option Plan (ESOP) and approving the allotment of equity shares upon exercise of stock options by eligible employees.
Whistle Blower Committee – The Committee monitors and ensures that all complaints received under the Whistle Blower Mechanism are appropriately reviewed and redressed in a timely manner.
TCWG Committee – The Committee is constituted pursuant to the Circular dated 07th January 2026 issued by the National Financial Reporting Authority (NFRA) on “Effective Communication Between Statutory Auditors and Those Charged With Governance (TCWG), including Audit Committees”. The Committee oversees the implementation of the requirements prescribed under the said Circular. The Company has also adopted an appropriate framework to facilitate structured and effective communication between the Statutory Auditors and the TCWG, including documentation, monitoring and governance mechanisms, thereby strengthening the overall corporate governance and audit oversight processes.

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Vimta
Driven by Quality. Inspired by Science.
Corporate Governance Report

Share Transfer Sub-Committee – The Board has delegated authority to the Share Transfer Sub-Committee to approve investor service requests relating to the Company's securities, including transfer and transmission, and a summary of such approvals is placed before the Stakeholders' Relationship Committee.

VI. SENIOR MANAGEMENT

There is no change in the Senior Management team.

VII. GENERAL BODY MEETINGS

a) Location and time, of previous three Annual General Meetings:

The previous three Annual General Meetings were held through Video Conference which are deemed to be held at Registered Office of the Company i.e., Plot No. 141/2 & 142, IDA Phase-II, Cherlapally, Hyderabad - 500051, Telangana as detailed below:

Sl. No.	For FY	AGM Details	Date	Time
1.	2024-25	35th AGM	06th June 2025	10:00 a.m.
2.	2023-24	34th AGM	18th July 2024	10:00 a.m.
3.	2022-23	33rd AGM	28th June 2023	10:00 a.m.

b) Special resolutions passed in the previous three Annual General Meetings:

During the previous AGM (i.e., 35th AGM) held on 06th June 2025, the following special resolutions were passed by the shareholders.

Re-appointment of Dr.Yadagiri R Pendri (DIN 01966100) as an Independent Director of the Company.
Increase in Overall Borrowing Limits of the Company as per Section 180(1)(c) of the Companies Act,2013.
Increase in Overall Limits for Disposal or Encumbrance of Company's Undertakings as per Section 180(1) (a) of the Companies Act,2013.
Addition of New Objects in the Objects Clause of the Memorandum of Association of the Company.
Approval for Revision of Remuneration payable to Ms. Harita Vasireddi (DIN 00242512), Managing Director of the Company.
Approval for Revision of Remuneration payable to Mr. Harriman Vungal (DIN 00242621), Executive Director – Operations of the Company.
Approval for Revision of Remuneration payable to Mr. Satya Sreenivas Neerukonda (DIN 00269814), Executive Director of the Company.

During the 34th AGM held on 18th July 2024, no special resolution was passed.

During the 33rd AGM held on 28th June 2023, a special resolution was passed approving the appointment of Dr. S.P. Vasireddi (DIN: 00242288) as Executive Chairman of the Company for a period of three years.

c) Postal Ballot conducted during the year:

No postal ballot was conducted during the financial year 2025-26 under review or during the previous financial year 2024-25.

d) Whether any special resolution is proposed to be conducted through postal ballot:

No special resolution is proposed to be passed through postal ballot on or before the ensuing Annual General Meeting.

VIII. MEANS OF COMMUNICATION

Communication to Shareholders on the following:

Publication of Financial Results

The quarterly, half-yearly and annual financial results of the Company were published in newspapers within 48 hours from the conclusion of the respective Board Meetings.

Circulation of Annual Report

The Annual Report, along with the audited financial statements, is circulated to the shareholders through the permitted modes. The Company also proactively communicates with shareholders regarding unclaimed dividends through emails, physical letters and telephonic communication.

Other Communications to Shareholders

The Company publishes and disseminates various notices to shareholders from time to time in compliance with applicable SEBI circulars relating to trading window closures and KYC updation, Ministry of Corporate Affairs ("MCA") circulars issued prior to the Annual General Meeting, and communications received from the Investor Education and Protection Fund ("IEPF") Authority under the Saksham Niveshak Campaign.

Channels of Communication with Shareholders

a) Newspapers

The results have been published by the Company in Financial Express (English edition, all editions) and in Nava Telangana in the vernacular language.

The Company has commenced publication of notices to shareholders and financial results in Business Standard (English edition, all editions) in place of Financial Express with effect from 01st April 2026.

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b) Analyst/Investor Conference call

During the year under review, four (4) analyst/investor conference calls were held on 28th April 2025, 21st July 2025, 03rd November 2025 and 28th January 2026.

c) Official news releases

The Quarterly Results, Shareholding Pattern, official press releases, investor presentations, analysis and other relevant information are made available on the Company's website at www.vimta.com as well as on the websites of the Stock Exchanges where the Company's shares are listed.

d) Presentations made to institutional investors or to the analysts

During the financial year under review, eighteen (18) institutional investor meetings were held on 28th May 2025; 02nd June 2025; 19th June 2025 (two meetings were held on the same day); 13th August 2025; 22nd August 2025; 28th August 2025; 11th September 2025; 17th September 2025; 30th September 2025; 17th November 2025; 19th November 2025; 03rd December 2025; 16th December 2025; 26th February 2026; 27th February 2026; 02nd March 2026 and 31st March 2026.

Note: The meeting scheduled on 27th March 2026 was rescheduled to 31st March 2026.

e) Website

The results are displayed on the Company's website at https://vimta.com/investors/financial-statements/

IX. GENERAL SHAREHOLDER INFORMATION

The 36th Annual General Meeting of the Company will be held on 25th June 2026 at 10:00 A.M through Video Conference mode.

Financial Calendar: 1st April 2026 to 31st March 2027
First quarter results: On or before 14th August 2026
Half yearly results: On or before 14th November 2026
Third quarter results: On or before 14th February 2026
Fourth quarter/Annual Results: On or before 30th May 2027
Date of dividend payment: on or before 08th July 2026
Listing on Stock Exchanges:

Name of the Stock Exchange	Security Code/ Symbol	Address
BSE Limited	524394	P J Towers Dalal Street Mumbai - 400 001, India.
National Stock Exchange of India Limited	VIMTALABS	“Exchange Plaza”, Bandra Kurla Complex Bandra (E) Mumbai - 400051, India
The ISIN for both NSDL & CDSL is “INE579C01029”

The Listing fees for the financial year 2026–27 have been paid to both the above Stock Exchanges.

IX(a) Distribution of Shareholding

Shareholding distribution as on 31st March 2026

Sl. No.	Nominal value	Amount in ₹	No. of Shares	% of Total Capital	No. of Shareholders	% of Total Holders
1	Up to 5000	1,37,97,440	68,98,720	15.44	50950	98.70
2	5001 to 10000	26,34,860	13,17,430	2.95	375	0.73
3	10001 to 20000	20,61,306	10,30,653	2.31	143	0.28
4	20001 to 30000	10,54,216	5,27,108	1.18	42	0.08
5	30001 to 40000	12,26,836	6,13,418	1.37	34	0.06
6	40001 to 50000	2,77,602	1,38,801	0.31	6	0.01
7	50001 to 100000	26,84,734	13,42,367	3.01	37	0.07
8	100001 and above	6,56,01,716	3,28,00,858	73.43	36	0.07
TOTAL		8,93,38,710	4,46,69,355	100	51,623	100

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Vimta

Driven by Quality. Inspired by Science.

Corporate Governance Report

Categories of Shareholders as on 31st March 2026

Sl. No.	Category of Shareholders	No. of Shares	Percentage
1	Promoter & Promoter Group	1,60,13,982	35.85
2	Body Corporate	1,35,25,486	30.28
3	Individual	1,11,72,382	25.01
4	Foreign Portfolio Investor (Corporate)	21,85,917	4.89
5	Alternative Investment Fund	60,116	0.13
6	Non Resident Indian(NRI)	5,16,244	1.16
7	Investor Education and Protection Fund (IEPF)	4,20,600	0.94
8	Individual - Employee	2,09,304	0.47
9	Hindu Undivided Family (HUF)	4,00,178	0.90
10	Clearing Member	7,417	0.02
11	Trust	2,400	0.01
12	Mutual Fund	655	0.00
13	Unclaimed Securities Suspense Account	1,54,674	0.35
TOTAL		4,46,69,355	100

Figure: Shareholding pattern as on 31st March 2026.

b) Registrar and Share Transfer Agent

M/s CIL Securities Ltd.

214, Raghava Ratna Towers, Abids,

Hyderabad - 500001, Telangana, India.

Phone: 040-23203155; Fax: 040-66661267

E-mail: [email protected]

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c) Share Transfer Systems

SEBI vide Notification No. SEBI/LAD-NRO/GN/2018/24 dated 08th June 2018 mandated that, except in cases of transmission or transposition of securities, requests for transfer of securities shall be processed only if the securities are held in dematerialised form, effective from 01st April 2019. Further, in terms of SEBI circular dated 25th January 2022, issuance of securities in physical form for investor service requests has been discontinued, and all such requests, including issuance of duplicate certificates, transmission, transposition and other related services, are required to be processed only in dematerialised form, for which the Company issues a Letter of Confirmation ("LOC") in lieu of physical share certificates. Pursuant to SEBI Circular dated 30th January 2026, SEBI has further streamlined the process by discontinuing the issuance of LOC and introducing direct credit of securities into investors' demat accounts, effective from 02nd April 2026, and accordingly the Registrar and Share Transfer Agent shall directly credit securities to the respective demat accounts for eligible service requests.

The Board has delegated the authority for approving investor service requests relating to the Company's securities to the Share Transfer Sub-Committee. A summary of transmissions of securities of the Company approved by the Share Transfer Sub-Committee is placed before the Stakeholders' Relationship Committee at each of its meetings.

d) Dematerialization of Shares and Liquidity

The shares of the Company are under compulsory demat trading. The Company has made necessary arrangements with NSDL and CDSL for demat facility, and 99.66% of the Company's Shares are dematerialized as on 31st March 2026.

e) Outstanding GDRs/ADRs/Warrants or Convertible Instruments

No GDRs/ ADRs/Warrants or Convertible Instruments were issued by the Company.

f) Commodity price risk or foreign risk and hedging activities

The Company does not have exposure to commodity price risk and does not undertake any hedging activities.

g) Laboratory/ Office locations

The Company's Central Laboratory is at Plot No. 141/2 & 142, IDA, Phase-II, Cherlapally, Hyderabad – 500051, Telangana. The Company also has an E&E Laboratory at Nacharam, Hyderabad, Telangana.

The Company has its Life Sciences Facility at Plot No.5, Neovantage Innovation Parks, Genome Valley, Shamirpet - 500101, Telangana, India. Additionally, following are the cities in which Vimta had its office/laboratories as on 31st March 2026:

Lab Locations	Liaison Office
1. Ahmedabad	1. Kolkata
2. Bengaluru
3. Nellore
4. Navi Mumbai (NFL)
5. Nashik
6. Noida

h) Address for correspondence and any query on Annual report Vimta Labs Limited

Plot No.141/2 & 142, IDA, Phase-II, Cherlapally, Hyderabad – 500051, Telangana, India

Phone: 040-27264141

E-Mail: [email protected]

i) Transfer of unpaid/unclaimed dividend amounts to Investor Education and Protection Fund (IEPF)

Members are requested to claim their unclaimed dividends for the financial year 2018–19 on or before 31st August 2026. In case the dividend remains unclaimed on or before the said date, it will be transferred to the Investor Education and Protection Fund ("IEPF") in accordance with Section 124(5) of the Companies Act, 2013 and the applicable rules, as detailed in the Board's Report.

j) List of Credit Ratings

The following credit rating has been obtained by the Company from CARE Ratings Limited as on 06th August 2025:

Facilities	Amount (₹ Crore)	Rating	Rating Action
Long Term Bank Facilities	37.67
(Reduced from 51.62)	CARE A; Stable	Reaffirmed
Long Term / Short Term Bank Facilities	34.00	CARE A; Stable / CARE A1	Reaffirmed
Short Term Bank Facilities	1.78	CARE A1	Reaffirmed
Total Bank Facilities	73.45

k) Compliance Certificate

Certificate from M/s D Hanumanta Raju & Co., practicing Company Secretaries, confirming compliance with the conditions of Corporate Governance as stipulated under SEBI (Listing Obligations and Disclosure requirements) Regulations, 2015 is annexed herewith as Annexure XI to the Corporate Governance Report.

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Vimta
Driven by Quality. Inspired by Science.
Corporate Governance Report

X. DISCLOSURES

a) Related Party Transactions (RPTs)

The Company has not entered into any materially significant transactions with any related parties that may have potential conflict with the interests of the Company at large. Transactions with related parties at arm's length are being disclosed in the Notes to Accounts forming part of the Annual Report and are transacted after obtaining applicable approval(s), wherever required. The Audit Committee and the Board of Directors of the Company have formulated a revised Policy on dealing with RPTs including Policy on materiality of RPTs which is disclosed on website of the Company. The transactions with any person or entity belonging to the promoter/promoter group which hold(s) 10% or more shareholding in the listed entity are set out in Notes to financial statements.

The policy is also uploaded on the Company's website which can be accessed https://vimta.com/wp-content/uploads/Policy-on-Related-Party-Transactions.pdf

b) Non-Compliances by the Company

During the last three financial years, no strictures or penalties have been imposed on the Company by the Stock Exchanges, SEBI, or any other statutory authority for non-compliance with any matters relating to the capital markets.

c) Vigil Mechanism and Whistle Blower Policy

The Company is committed to conducting its business ethically and in compliance with applicable laws, rules and regulations. It promotes ethical conduct in all its operations and has established a Vigil Mechanism, which is overseen by the Audit Committee. Under the Vigil Mechanism, employees are encouraged to report any violations of applicable laws, regulations or the Code of Conduct. During the year under review, no employee was denied access to the Audit Committee, and employees were periodically informed about the policy and its key features. The Vigil Mechanism and Whistle Blower Policy are hosted on the Company's website.

d) Details of compliance with mandatory requirements on Corporate Governance under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Company has complied with all mandatory requirements relating to Corporate Governance as stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

e) Subsidiary Companies

During the financial year under review, the Company did not have any subsidiary.

f) Loans and advances to the Subsidiary

During the financial year under review, the Company did not have any subsidiary or associate companies. Accordingly, the provisions in this regard are not applicable to the Company.

g) Policy on Material Subsidiary

The Board, at its meeting held on 15th June 2020, approved the Material Subsidiary Policy in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for determining material subsidiaries. The said Policy is available on the Company's website and can be accessed through the link provided below: https://vimta.com/wp-content/uploads/Policy-for-Determining-Material-Subsidiaries-1.pdf

h) Practicing Company Secretary Certification

A certificate from M/s D. Hanumanta Raju & Co., Practicing Company Secretaries, confirming that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as Directors by the Securities and Exchange Board of India, the Ministry of Corporate Affairs, or any other statutory authority as on 31st March 2026, is annexed as Annexure XII to this Report as an integral part thereof.

i) Statutory Audit Fee

The consolidated fee paid by the Company, to the statutory auditor for all the services during the Financial Year 2025-26 is ₹ 2.75 million.

j) Policy On Prevention, Prohibition and Redressal of Sexual Harassment of women at Workplace

Included in Board Report.

k) Detail of compliance with the corporate governance requirements specified in Regulations 17 to 27 and clause (b) to (i) of sub - regulation (2) of Regulation 46 of SEBI (Listing Regulations and Disclosure Requirements) Regulations, 2015

The Company is in compliance with the applicable corporate governance requirements specified in Regulations 17 to 27 and clause (b) to (i) of Regulation 46 (2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further, securities of the Company have not been suspended for trading, at any point of time during the financial year ended 31st March 2026.

l) Disclosures with respect to demat suspense account/ unclaimed suspense account

During the financial year under review, the Company has opened the "Vimta Labs Limited – Bonus Issue Unclaimed Securities Suspense Account". The total number of shares held in the said account as on 31st March 2026 is 1,54,674.

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Corporate Governance Report

m) Board Procedures

The Board meets at least once in a quarter to review the financial results and operations of the Company. In addition, the Board meets as and when necessary to address specific matters concerning the business of the Company. The tentative annual calendar of Board Meetings for the ensuing year is decided in advance by the Board. Board Meetings are conducted on the basis of a structured agenda. The agenda, along with detailed explanatory notes and supporting materials, is circulated in advance to all Directors to facilitate effective discussion and informed decision-making during the meetings. The Board has access to all information within the Company, including information as specified in Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

n) Independent Directors' Meeting

In accordance with the provisions of Schedule IV (Code for Independent Directors) of the Companies Act, 2013, Regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Schedule II, Part E, Clause F of the said Regulations, two (2) meetings of the Independent Directors of the Company were held on 25th September 2025 and 27th March 2026.

o) Agreements Binding Listed Entities

The Company and its Promoters, namely Dr. S P Vasireddi, Mr. Vungal Harriman and Mr. V. Veerabhadra Prasad, had entered into an Investment Agreement with Andhra Pradesh Industrial Development Corporation Limited ("APIDC") on 27th June 1991 at the time of the Initial Public Offer (IPO), pursuant to which APIDC was classified as a Promoter – Body Corporate, in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

During the financial year under review, the shareholding held by APIDC was transferred to Telangana State Industrial Development Corporation Limited ("TSIDC") with effect from 18th November 2025, pursuant to the bifurcation of the erstwhile State of Andhra Pradesh and the demerger scheme of APIDC in accordance with the provisions of the Andhra Pradesh Reorganisation Act, 2014. Consequently, TSIDC has been classified as 'Promoter – Body Corporate' and APIDC has been reclassified under the 'Public' category in terms of Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The significant terms of the said Investment Agreement and related details were disclosed to the Stock Exchanges on 13th August 2023 and the update regarding transfer of shareholding to TSIDC was disclosed on 21st November 2025.

The matter relating to the Investment Agreement dated 27th June 1991 remains sub judice before the appropriate judicial authority.

p) Discretionary requirements

The Company has adopted the following discretionary disclosure requirements on Corporate Governance:

Information on Shareholders' rights

All the quarterly, half yearly and annual financial results are placed on the Company's website apart from publishing the same in the Newspapers.

Modified opinion(s) in audit report

There are no modified opinions in the Audit Reports.

Reporting of Internal Auditor

The Internal Auditors of the Company i.e., M/s Chaitanya V & Associates, Chartered Accountants directly reports to the Audit Committee of the Company.

Risk Management

The Company has constituted Risk Management Committee and the committee met twice during the financial year under review.

Woman Independent Director

Ms. Prameela Rani Yalamanchili (DIN: 03270909) is an Independent Director on the Board of the Company.

Separate post of Chairperson and the Managing Director

The Company has separate positions for the Chairperson and the Managing Director. Dr. Sivalinga Prasad Vasireddi (DIN: 00242288), Founder of the Company, serves as the Executive Chairman and provides strategic guidance to the Company. Ms. Harita Vasireddi (DIN: 00242512) serves as the Managing Director of the Company. The aforesaid appointments were approved by the shareholders by way of special resolutions.

XI. Managing Director/ CFO Certification

In compliance with Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a certificate from Managing Director and Chief Financial Officer of the Company to the Board of Directors as specified in Part B of Schedule II of the said regulations is annexed herewith as Annexure - XIII to the Corporate Governance Report.

XII. Materiality of Events

The Company Secretary, in consultation with the Chairman/ Managing Director/Executive Directors, is authorised to determine the materiality of events/information and make necessary disclosures to the Stock Exchanges.

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Vimta
Driven by Quality. Inspired by Science.
Corporate Governance Report

The contact details of the Key Managerial Personnel authorised for determining materiality are available on the Company's website at https://vimta.com/wp-content/uploads/Contact-details-of-Key-Managerial-Personnel-1.pdf

The Policy on Determination of Materiality of Events/ Information is also available on the Company's website at Policy on Determination of Materiality of an Event https://vimta.com/wp-content/uploads/POLICY-ON-DETERMINATION-OF-MATERIALITY-OF-AN-EVENT.pdf

For and on behalf of the Board,
Dr. Sivalinga Prasad Vasireddi
Executive Chairman
(DIN: 00242288)

Date: 06th May 2026
Place: Hyderabad

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Annexures to Corporate Governance Report

Annexure - X

DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH COMPANY'S CODE OF CONDUCT

In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, I hereby confirm that all the Board members and Senior Management Personnel of the Company have affirmed compliance with the respective Codes of Conduct, as applicable to them for the year ended 31st March 2026.

Date: 06th May 2026
Place: Hyderabad

For Vimta Labs Limited

Harita Vasireddi
Managing Director
(00242512)

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Corporate Governance Report

Annexure - XI

CERTIFICATE

To,

The Members,

VIMTA LABS LIMITED.

We have examined the compliance of conditions of Corporate Governance by VIMTA LABS LIMITED (“the Company”), for the year ended on 31st March, 2026, as stipulated in Regulation 15(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) for the period 1st April, 2025 to 31st March 2026.

The compliance of conditions of Corporate Governance is the responsibility of Management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the Financial Statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us by the Directors, officers and the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Regulations.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company.

For D.HANUMANTA RAJU& CO
COMPANY SECRETARIES

CS SHAIK RAZIA
PARTNER
FCS: 7122, CP NO: 7824
UDIN: F007122H000293463
PR NO: 6326/2024

Place: Hyderabad
Date: 06.05.2026

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Annexures to Corporate Governance Report

Annexure - XII

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10) (i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,

The Members,

VIMTA LABS LIMITED.

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of VIMTA LABS LIMITED having CIN: L24110TG1990PLC011977 and having registered office at 141/2 &142, IDA Phase II, Cherlapalli, RR Dist, Hyderabad – 500 051 (hereinafter referred to as ‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V, Para-C, Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN) status at the portal www.mca.gov.in, as considered necessary and explanations furnished to us by the Company & its officers, We hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st March, 2026 have been debarred or disqualified from being appointed or continuing as Directors of Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Sr. No	Name of Director	DIN	Date of Appointment in Company
1.	Dr Sivalinga Prasad Vasireddi	00242288	01/04/2005
2.	Mrs. Harita Vasireddi	00242512	01/04/2005
3.	Mr. Harriman Vungal	00242621	16/11/1990
4.	Mr. Satya Sreenivas Neerukonda	00269814	14/07/2019
5.	Mrs. Prameela Rani Yalamanchili	03270909	01/12/2017
6.	Mr. Purnachandra Rao Gutta	00876934	11/05/2019
7.	Mr. Sanjay Dave	08450232	11/05/2019
8.	Mr. Yadagiri R Pendri	01966100	10/08/2020

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is only to express an opinion on this as per our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

Place: Hyderabad
Date: 06.05.2026

For D.HANUMANTA RAJU & CO
COMPANY SECRETARIES

CS SHAIK RAZIA
PARTNER

FCS: 7122, CP NO: 7824
UDIN: F007122H000293518
PR NO: 6326/2024

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Annexures to Corporate Governance Report

Annexure - XIII

MANAGING DIRECTOR / CFO CERTIFICATION

A. We have reviewed financial statements and cash flow statements for the financial year 2025-26, and that to the best of our knowledge and belief:

These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
These statements together present a true and fair view of the Company's affairs and are in compliance with existing accounting standards, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered by the Company during the year which are fraudulent, illegal or violative of the Company's code of conduct.

C. We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting, and deficiencies in the design and operation of such internal controls, if any, of which we are aware, have been disclosed to the Auditors and Audit Committee and steps have been taken to rectify these deficiencies.

D. We have indicated to the Auditors and the Audit committee that during the year under review:

there were no significant changes in internal controls over financial reporting,
there were no significant changes in accounting policies during the year requiring disclosure in the notes to the financial statements, and
we are not aware of any instances of significant fraud with involvement therein of the management or any employee having a significant role in the Company's internal control system over financial reporting.

For Vimta Labs Limited

Siva Rama Krishna Kambhampati
Chief Financial Officer

Harita Vasireddi
Managing Director (00242512)

Date: 06th May 2026
Place: Hyderabad

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Annexures to Board's Report

Annexure - B

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

SECTION A: GENERAL DISCLOSURES

I. Details of the listed entity

1	Corporate Identity Number (CIN) of the Listed Entity	L24110TG1990PLC011977
2	Name of the Listed Entity	VIMTA LABS LIMITED
3	Year of incorporation	1990
4	Registered office address	Plot No: 141/2 & 142, IDA, Phase II, Cherlapally, Hyderabad – 500051, Telangana, India
5	Corporate address	Plot No: 141/2&142, IDA, Phase II, Cherlapally, Hyderabad – 500051, Telangana, India
6	E-mail	[email protected]
7	Telephone	040-27264141
8	Website	www.vimta.com
9	Financial year for which reporting is being done	2025-26
10	Name of the Stock Exchange(s) where shares are listed	National Stock Exchange of India Limited BSE Limited
11	Paid-up Capital	89,338,710
12	Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR report	Sujani Vasireddi, Company Secretary & Compliance Officer
Telephone: 040-27264141
Email: [email protected]
13	Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e., only for the entity) or on a consolidated basis (i.e., for the entity and all the entities which form a part of its consolidated financial statements, taken together).	Standalone basis
14	Name of assurance provider	NA
15	Type of assurance obtained	NA

II. Products/Services

Details of Business Activities (accounting for 90% of the turnover)

Sl. No.	Description of Main Activity	Description of Business Activity	% of Turnover of the entity
1	Professional, Scientific and Technical	Other Professional, Scientific and Technical Activities	100%

Products/Services sold by the entity (accounting for 90% of the entity's Turnover)

Sl. No.	Product/Service	NIC Code	% of total Turnover contributed
1	Contract research & testing services	71200: Technical testing & analysis	100%

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Vimta
Driven by Quality. Inspired by Science.
Business Responsibility & Sustainability Report

III. Operations

Number of locations where plants and/or operations/offices of the entity are situated:

Location	Number of plants (Operations)	Number of offices	Total
National	9	1	10
International	-	-	-

Note: Out of the 9 offices mentioned above, 6 are Food Testing Laboratories, 1 is an E&E laboratory located at Nacharam, Hyderabad, 1 is a liaison office in Kolkata.
*Details of locations of the Company's offices / plants that are cross-referenced in the Corporate Governance Report.

Markets served by the entity:

a. Number of locations

Locations	Number
National (No. of States)	15 States and 4 Union Territories
International (No. of Countries)	31 Countries

b. What is the contribution of exports as a percentage of the total turnover of the entity 38%

c. A brief on type of customers

Pharmaceuticals, Medical Devices, Nutraceuticals, Food, Electronics, Consumer Goods, Agro Chemicals, Specialty Chemicals, Industrial Products, PSUs, Core Sector Industries, Regulators.

IV. Employees

Details as at the end of Financial Year:

a. Employees and workers (including differently abled):

Sl. No.	Particulars	Total (A)	Male		Female
			No. (B)	% (B / A)	No. (C)	% (C / A)
EMPLOYEES
1.	Permanent (D)	304	251	83%	53	17%
2.	Other than Permanent (E)	...	...	...	...	...
3.	Total employees (D + E)	304	251	83%	53	17%
WORKERS
4.	Permanent (F)	1080	676	63%	404	37%
5.	Other than Permanent (G)	...	...	...	...	...
6.	Total workers (F + G)	1080	676	63%	404	37%

b. Differently abled Employees and workers:

Sl. No.	Particulars	Total (A)	Male		Female
			No. (B)	% (B / A)	No. (C)	% (C / A)
DIFFERENTLY ABLED EMPLOYEES
1.	Permanent (D)	NA	NA	NA	NA	NA
2.	Other than Permanent (E)	NA	NA	NA	NA	NA
3.	Total differently abled employees. (D + E)	NA	NA	NA	NA	NA
DIFFERENTLY ABLED WORKERS
4.	Permanent (F)	NA	NA	NA	NA	NA
5.	Other than permanent (G)	NA	NA	NA	NA	NA
6.	Total differently abled workers (F + G)	NA	NA	NA	NA	NA

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Business Responsibility & Sustainability Report

Participation/Inclusion/Representation of women

	Total (A)	No. and percentage of Females
		No. (B)	% (B / A)
Board of Directors	8	2	25%
Key Management Personnel*	6	2	33%
Key Management Personnel excluding Directors	2	1	50%

Turnover rate for permanent employees and workers (Disclose trends for the past 3 years)

| | FY 2025-26
(Turnover rate in current FY) | | | FY 2024-25
(Turnover rate in previous FY) | | | FY 2023-24
(Turnover rate in the year prior to the previous FY) | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Male | Female | Total | Male | Female | Total | Male | Female | Total |
| Permanent Employees | 20.40% | 25.90% | 23.20% | 34.30% | 20.40% | 27.30% | 23.20% | 25.50% | 24.30% |
| Permanent Workers | 34.10% | 28.80% | 31.50% | 35.90% | 42.70% | 39.30% | 29.60% | 32.60% | 31.10% |

V. Holding, Subsidiary and Associate Companies (including joint ventures)

(a) Names of holding / subsidiary / associate companies / joint ventures

SI. No.	Name of the holding / subsidiary / associate companies / joint ventures (A)	Indicate whether holding/ Subsidiary/ Associate/ Joint Venture	% of shares held by listed entity	Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No)
NA

(i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No)

Yes.

(ii) Turnover (Rs. in Millions)

4072.90

(iii) Net worth (Rs. in Millions)

4568.73

VI. Transparency and Disclosures Compliances

Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Stakeholder group from whom complaint is received	Grievance Redressal Mechanism in Place (Yes/No) (If yes, then provide web-link for grievance redress policy)	(FY 2025-26)			(FY 2024-25)
		Number of complaints filed during the year	Number of complaints pending resolution at close of the year	Remarks	Number of complaints filed during the year	Number of complaints pending resolution at close of the year	Remarks
Communities	Yes	0	0	Nil	0	0	Nil
Investors (other than shareholders)	We have a designated Compliance and Grievance Redressal Officer, along with a Nodal Officer, and dedicated email addresses for investors to submit their complaints or concerns:- https://vimta.com/grievance-cell/	0	0	Nil	0	0	Nil
Shareholders	Yes	1	0	Nil	0	0	NA

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Business Responsibility & Sustainability Report

Stakeholder group from whom complaint is received	Grievance Redressal Mechanism in Place (Yes/No) (If yes, then provide web-link for grievance redress policy)	(FY 2025-26)			(FY 2024-25)
		Number of complaints filed during the year	Number of complaints pending resolution at close of the year	Remarks	Number of complaints filed during the year	Number of complaints pending resolution at close of the year	Remarks
Employees and workers	Yes	2	0	Nil	1	0	Nil
Customers	Yes
https://vimta.com/contact-us/feedback/	34	0	Nil	0	0	Nil
Value Chain Partners	...	0	0	Nil	0	0	Nil
Other (please specify)	...	0	0	Nil	0	0	Nil

26. Overview of the entity's material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format

Sl. No.	Material issue identified	Indicate whether risk or opportunity (R/O)	Rationale for identifying the risk / opportunity	In case of risk, approach to adapt or mitigate	Financial implications of the risk or opportunity (Indicate positive or negative implications)
1.	Energy Management	Risks & Opportunities	Risks: High utility costs, outages impacting critical storage/equipment costs, inefficient HVAC. Opportunities: Cost savings via efficiency & load management, improved uptime.	HVAC optimisation, preventive maintenance, backup powers/UPS.	Positive
2.	Climate Transition & Physical Risks	Risks & Opportunities	Risks: Extreme heat, flooding, water shortages, cold chain material/sample supply integrity and logistics, risk for field staff, facility damage downtime. Opportunities: improved business continuity planning, stronger insurance.	Business continuity plan validations, insurance adequacy reviews.	Positive & Negative
3.	Supply Chain Management	Risks & Opportunities	Risks: Shortages, non compliant/unethical vendors. Opportunities: Stronger vendor management and internal checks.	Periodic vendor qualifications, critical vendor audits, quarantine/quality check, kit validations and dual sourcing.	Positive
4.	Human Capital Management	Risks & Opportunities	Risks: Talent attraction / retention, productivity. Opportunities: Strong onboarding and continuous job specific trainings and employee engaging activities.	Career development, strong performance feedback systems, talent development programs, employee engagement initiatives like Vinodaya, V-square, Structured L & D programs, rewards and recognition service.	Positive & Negative

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Business Responsibility & Sustainability Report

Sl. No.	Material issue identified	Indicate whether risk or opportunity (R/O)	Rationale for identifying the risk / opportunity	In case of risk, approach to adapt or mitigate	Financial implications of the risk or opportunity (Indicate positive or negative implications)
5.	Occupational Health & safety	Risks	Risks: Injuries, accidents, non compliances to safety procedures, poor quality of training	Periodic trainings, chemical and biological hygiene, incident reporting and CAPA.	Negative
6.	Customer Relations	Risks & Opportunities	Risks: Dispute on quality of reports, TAT, Poor communications leading to customer dissatisfaction /disengagements; Confidentiality breaches.
Opportunities: Higher retention and repeat business, strong partnerships, good will ambassadors and cross functional value added service.	Clear quotations, MSAs, SOWs, QAAs, Project governance, service level KPIs, complaint handling and escalation systems, periodic senior management connects, customer feedback and CAPA.	Positive
7.	Corporate Governance	Risks & Opportunities	Risks: Weak oversight and accountability, fraud, poor risk management, related party transactions and inadequate policies and controls.
Opportunities: Improved stakeholder’s confidence, better decision making and strong compliance culture and improved brand image.	Strong Board/Management oversight and clear policies, enterprise risk management framework, internal controls and audits, enforcing strict core values.	Positive
8.	Animal Procurement & Welfare	Risks	Risks: activism, reputation risks, challenges in logistics.
Opportunities: 3Rs leadership.	3Rs implementation, ethics approvals, vendor back ups.	Negative
9.	Data Security & Privacy	Risks & Opportunities	Risks: Data breaches, Loss of data and customer trust, insider threats, inadequate data governance.
Opportunities: Regulatory compliance as a competitive advantage, strong privacy practices and strong data management.	Privacy by design and data minimisation and encryption at rest and in transit, MFA, access reviews, incident recording and CAPA, VAPT tests, backups, retention and deletion controls, vendor assessment.	Negative
10.	Quality & Reliability of Research & Testing, Regulatory compliance.	Risks & Opportunities	Risks: Customer disputes and failed regulatory submissions, reputation loss.
Opportunities: Higher reliability, customer confidence and long term contracts.	Strong implementation of GXPs, ISO Standards, Data integrity governance.	Negative
11.	Human Rights & Trial Ethics.	Risks	Risks: Participant harm, trial shutdown, litigation.	Ethics approvals, Informed consents, safety monitoring and SAE reporting and protocol training.	Negative

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Business Responsibility & Sustainability Report

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements.

Disclosure Questions	P1	P7	P8
Policy and Management processes
1. a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No)	Yes	No	Yes
b. Has the policy been approved by the Board? (Yes/No)	Yes	No	Yes
c. Web Link of the Policies, if available	https://vimta.com/wp-content/uploads/Code-of-Conduct-Directors-Senior-Management-Personnel.pdf
https://vimta.com/wp-content/uploads/Board-Diversity-Policy.pdf
https://vimta.com/wp-content/uploads/Code-of-Conduct-Insider-Trading-Policy.pdf
https://vimta.com/wp-content/uploads/Corporate-Social-Responsibility-Policy.pdf
2. Whether the entity has translated the policy into procedures. (Yes / No)	Yes	No	Yes
3. Do the enlisted policies extend to your value chain partners? (Yes/No)	No
4. Name of the national and international codes/certifications/labels/ standards (e.g., Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g., SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle.	OHSAS ISO 45001, ISO 17025, Gold rating by IGBC, BIS, FSSAI, APEDA, NGCMA, WHO -GPPQCL, EMA - CGMP, CCCSEA, AAALAC, DCA,TSPCD and EIC.
5. Specific commitments, goals and targets set by the entity with defined timelines, if any.	...
6. Performance of the entity against the specific commitments, goals and targets along-with reasons in case the same are not met.	...
Governance, leadership, and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has flexibility regarding the placement of this disclosure)
At VIMTA, we recognise that as a Contract Research and Testing Organisation (CRTO), our responsibilities extend beyond scientific excellence to include strong commitments to sustainability, ethics, and societal well-being.
Our operations are rooted in the principles of integrity, quality, and compliance, ensuring that we contribute meaningfully to healthcare advancements while upholding the highest standards of environmental, social, and governance (ESG) performance.
We continue to strengthen our research and testing capabilities in alignment with global regulatory expectations, while fostering innovation that supports safer and more efficient product development for our customers.
Sustainability remains integral to our business strategy. We are focused on reducing our environmental footprint through efficient resource utilisation, responsible waste management, and the adoption of greener technologies across our laboratories. At the same time, we prioritise employee well-being, safety, and continuous learning, recognising our people as the cornerstone of our success.
We also remain committed to ethical business conduct, data integrity, and patient/consumer safety, which are fundamental to the trust placed in us by customers, regulators, and the broader community. Our governance framework ensures transparency, accountability, and adherence to all applicable regulations and industry standards.
As we look ahead, we will continue to integrate sustainability into our growth journey, leveraging our expertise to create long-term value for stakeholders while contributing positively to society.

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Business Responsibility & Sustainability Report

Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies). Managing Director
Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability related issues? (Yes / No). If yes, provide details. No
Details of Review of NGRBCs by the Company:

Subject for Review	Indicate whether review was undertaken by Director / Committee of the Board/ Any other Committee							Frequency (Annually/ Half yearly/ Quarterly/ Any other – please specify)
	P1	P2	P3	P4	P5	P6	P7	P8	P9	P1	P2	P3	P4	P5	P6
Performance against above policies and follow up action	...							...
Compliance with statutory requirements of relevance to the principles, and rectification of any non-compliances	Yes							Quarterly
11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency? (Yes/No). If yes, provide name of the agency.	P1	P2	P3	P4	P5	P6	P7	P8
								No
12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions								P1	P2	P3	P4	P5	P6	P7	P8
The entity does not consider the principles material to its business (Yes/No)								NA	Yes	NA
The entity is not at a stage where it is in a position to formulate and implement the policies on specified principles (Yes/No)													Yes
The entity does not have the financial or/human and technical resources available for the task (Yes/No)													Yes
It is planned to be done in the next financial year (Yes/No)													Yes
Any other reason (please specify)													...

SECTION C: Principle wise performance

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally, and ethically responsible.

Principle 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable.

Essential Indicators

Percentage coverage by training and awareness programmes on any of the principles during the financial year

Segment	Total number of training and awareness programmes held	Topics/principles covered under the training and its impact	%age of persons in respective category covered by the awareness programmes
Board of Directors	4	Regulatory updates and Legal compliances of the familiarization programs /updates are provided to the Board and the KMPs as part of Board and Committee meetings.	100%
Key Management Personnel

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Vimta
Driven by Quality. Inspired by Science.
Business Responsibility & Sustainability Report

Segment	Total number of training and awareness programmes held	Topics/principles covered under the training and its impact	%age of persons in respective category covered by the awareness programmes
Employees other than BoD and KMPs	60 approximately	Employees undergo training covering the following topics. Code of Conduct, Business core values and ethics, prevention of sexual harassment, Whistle Blower policy, EHS policies and manual, Data integrity Policy. Annual refresher’s training is imparted to employees majorly covering above topics. Employees basis their role, undergo various training programs through out the year on applicable regulations, standards and guidelines etc. Compliance Training, First Aid Training, Fire mock drill training, Healthcare, Awareness on Quality Policy, Objectives, Safety policy & Objectives, and Safety Awareness	~ 95%
Workers	45 approximately	Prevention of sexual harassment, EHS policies and manual, Training as per Safety policy.	~ 85%

Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format: Nil.

(Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as disclosed on the entity's website): https://vimta.com/investors/announcements/

Monetary
	NGBRC Principle	Name of the regulatory/ enforcement agencies/ judicial institutions	Amount (in INR)	Brief of the Case	Has an appeal been preferred? (Yes/No)
Penalty/Fine	Nil
Settlement
Compounding Fee
Non-Monetary
	NGBRC Principle	Name of the regulatory/ enforcement agencies/ judicial institutions	Amount (in INR)	Brief of the Case	Has an appeal been preferred? (Yes/No)
Imprisonment	Nil
Punishment

Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-monetary action has been appealed : NA

Case Details	Name of the regulatory/enforcement agencies/judicial institutions
NA

Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.

Yes. Vimta’s Code of Conduct includes principles relating to ethical conduct, anti-bribery, and anti-corruption practices, which are expected to be adhered to by all employees as well as the Company itself. Vimta is committed to conducting its business with integrity, honesty, and transparency at all times. The Company follows a zero-tolerance policy towards any form of corruption or unethical behaviour.

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Business Responsibility & Sustainability Report

Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/ corruption:

	FY 2025-26	FY 2024-25
Directors	Nil	Nil
KMPs	Nil	Nil
Employees	Nil	Nil
Workers	Nil	Nil

Details of complaints with regard to conflict of interest

	FY 2025-26		FY 2024-25
	Number	Remarks	Number	Remarks
Number of complaints received in relation to issues of Conflict of Interest of the Directors	0	NA	0	NA
Number of complaints received in relation to issues of Conflict of Interest of the KMPs	0	NA	0	NA

Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.

Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the following format:

	FY 2025-26	FY 2024-25
Number of days of accounts payable	19.08	19.22

Open-ness of business. Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-with loans and advances & investments, with related parties, in the following format:

Parameter	Metrics	FY 2025-26	FY 2024-25
Concentration of purchases	a. Purchases from trading houses as a % of total purchases	Nil	Nil
	b. Number of trading houses where purchases are made from	NA	NA
	c. Purchases from top 10 trading houses as % of total purchases from trading houses	NA	NA
Concentration of services	a. Sales to dealers/ distributors as % of total sales	Nil	Nil
	b. Number of dealers / distributors to whom sales are made	NA	NA
	c. Sales to top 10 dealers / distributors as % of total sales to dealers / distributors	NA	NA
Share of RPTs in	Purchases (Purchases with related parties/ Total Purchases)	0.79%	0.61%
	Sales (Sales to related parties/ Total Sales)	0.01%	0.02%
	Loans & Advances (Loans & Advances given to related parties/ Total Loans & Advances)	Nil	Nil
	Investments (Investments in related parties/ Total Investments)	Nil	Nil

Leadership Indicators

Awareness programmes conducted for value chain partners on any of the principles during the financial year:

Total number of awareness programmes held	Topics / principles covered under the training	%age of value chain partners covered (by value of business done with such partners) under the awareness programmes
Nil

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Business Responsibility & Sustainability Report

Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If Yes, provide details of the same.

Yes. Vimta has a robust framework to prevent and manage conflicts of interests at the board level. The Company's code of conduct includes principles related to conflicts of interest and applies to all Directors & KMP. The code requires Directors to disclose any potential conflicts arising from personal, social, professional, financial, political, or other interests of relationships that could reasonably be perceived as conflicting with best interests of the Company and influencing their judgement in carrying out their responsibilities.

Principle 2: Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.

	FY 2025-26	FY 2024-25	Details of improvements in environmental and social impacts
R&D	Nil	Nil	NA
Capex	1.67%	0.4%	Energy conservation through HVAC systems

A. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
B. If yes, what percentage of inputs were sourced sustainably?

No.

Describe the processes in place to safely reclaim your products for reusing, recycling, and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.

The Company has established structured processes to ensure environmentally sound handling of waste generated from its services and operations. These processes are aligned with applicable regulatory requirements.

(a) Plastics (including packaging)

Plastic waste, including packaging materials, is segregated at source into recyclable and non-recyclable categories.
The Company promotes reduction in plastic usage, adoption of reusable/returnable packaging, and use of eco-friendly alternatives wherever feasible.
Non-recyclable plastic waste is disposed of through Municipal corporation

(b) E-waste

E-waste is handled in accordance with applicable E-Waste Management Rules.
Obsolete or end-of-life electrical and electronic equipment is collected, stored safely, and handed over only to government-authorized e-waste recyclers.

Such waste is identified, classified, labelled, and stored in designated areas with necessary safety measures.
Disposal is carried out through authorized Treatment, Storage, and Disposal Facilities (TSDFs) or certified vendors.
Manifest systems and documentation are maintained to ensure end-to-end traceability and compliance.

(d) Other Waste

Other waste streams (such as organic waste, general waste, and scrap materials) are segregated at source.
Whether Extended Producer Responsibility (EPR) is applicable to the entity's activities (Yes / No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same.

Nil.

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Leadership Indicators

Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)? If yes, provide details in the following format?

NIC Code	Name of the product/service	% of total turnover contributed	Boundary for which the life cycle perspective/ assessment was conducted	Whether conducted by independent external agency (Yes/No)	Results communicated in public domain (Yes/No) If yes, provide the web-link
NA

If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly describe the same along-with action taken to mitigate the same.

Name of Product/Service	Description of the risk/concern	Action Taken
NA

Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or providing services (for service industry).

Indicate input material	Recycled or re-used input material to total material
	FY 2025-26	FY 2024-25
NA

Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed, as per the following format:

	FY 2025-26			FY 2024-25
	Re-used	Recycled	Safely Disposed	Re-used	Recycled	Safely Disposed
Plastics (including packaging)	-	-	2,620 kgs	-	-	911 kgs
E-waste	-	-	2,830 kgs	-	-	510 kgs
Hazardous waste	-	-	3,160 kgs	-	-	2,853 kgs
Other waste	-	-	36,443 kgs (Glassware waste)	-	-	26,524 kgs (Glassware waste)

Reclaimed products and their packaging materials (as percentage of products sold) for each product category.

Indicate product category	Reclaimed products and their packaging materials as % of total products sold in respective category
NIL

Principle 3: Businesses should respect and promote the well-being of all employees, including those in their value chains

Essential Indicators

a. Details of measures for the well-being of employees:

Category	% Of employees covered by
	Total (A)	Health insurance		Accident insurance		Maternity benefits		Paternity benefits		*Day care facilities
		Number (B)	% (B/A)	Number (C)	% (C/A)	Number (D)	% (D/A)	Number (E)	% (E/A)	Number (F)	% (F/A)
Permanent Employees
Male	251	176	70%	251	100%	...	...	251	100%	...	...
Female	53	34	64%	53	100%	53	100%	...	...	...	...
Total	304	210	69%	304	100%	...	...	...	...	...	...

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Vimta

Driven by Quality. Inspired by Science.

Business Responsibility & Sustainability Report

Category	% Of employees covered by
	Total (A)	Health insurance		Accident insurance		Maternity benefits		Paternity benefits		*Day care facilities
		Number (B)	% (B/A)	Number (C)	% (C/A)	Number (D)	% (D/A)	Number (E)	% (E/A)	Number (F)	% (F/A)
Other than Permanent Employees
Male	...	...	...	...	...	...	...	...	...	...	...
Female	...	...	...	...	...	...	...	...	...	...	...
Total	...	...	...	...	...	...	...	...	...	...	...

Provision of day care facilities is available to all employees.

b. Details of measures for the well-being of workers:

Category	% Of employees covered by
	Total (A)	Health insurance		Accident insurance		Maternity benefits		Paternity benefits		*Day care facilities
		Number (B)	% (B/A)	Number (C)	% (C/A)	Number (D)	% (D/A)	Number (E)	% (E/A)	Number (F)	% (F/A)
Permanent Workers
Male	676	267	39%	676	100%	...	...	676	100%	...	...
Female	404	63	16%	404	100%	404	100%
Total	1080	330	31%	1080	100%	...	...	...	...	...	...
Other than Permanent Workers
Male	...	...	...	...	...	...	...	...	...	...	...
Female	...	...	...	...	...	...	...	...	...	...	...
Total	...	...	...	...	...	...	...	...	...	...	...

Provision of day care facilities is available to all employees.

c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format

	FY 2025-26	FY 2024-25
Cost incurred on well-being measures as a % of total revenue of the company	0.80%	1.10%

Details of retirement benefits, for Current FY and Previous Financial Year.

Benefits	FY 2025-26			FY 2024-25
	No. of employees covered as a % of total employees	No. of workers covered as a % of total workers	Deducted and deposited with the authority (Y/N/N.A.)	No. of employees covered as a % of total employees	No. of workers covered as a % of total workers	Deducted and deposited with the authority (Y/N/N.A.)
PF	100%	100%	Yes	100%	100%	Yes
Gratuity	100%	100%	Yes	100%	100%	Yes
ESI	...	30%	Yes	...	32%	Yes
Others- please specify	...	...	...	...	...	...

Accessibility of workplaces:

Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.

Yes, the Company ensures that its offices, its facilities are accessible to differently abled persons.

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Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy.

Yes, the Company follows principles of equal opportunity and non-discrimination in its HR practices.

Return to work and Retention rates of permanent employees and workers that took parental leave.

Gender	Permanent Employees		Permanent Workers
	Return to work rate	Retention rate	Return to work rate	Retention rate
Male	100	100%	100	100%
Female	100	100%	79	79%
Total	100	100%	91	91%

Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give details of the mechanism in brief.

	Yes/ No (If yes, then give details of the mechanism in brief)
Permanent Employees	Yes, The Company has established multiple channels for receiving and addressing employee grievances, including quarterly employee open-house sessions conducted by the HR department, annual employee feedback surveys, feedback sessions for newly joined employees during their first ninety days of employment, and the Whistle Blower Policy. Employees may also raise concerns directly with the HR department or their reporting managers through the open-door communication framework. The grievance redressal process is guided by the principles of confidentiality, non-retaliation, fair investigation, and timely resolution. Records of all grievances received and the actions taken thereon are maintained by the Company.
Other than Permanent Employees
Permanent Workers
Other than Permanent Workers

Membership of employees and worker in association(s) or Unions recognized by the listed entity:

Category	FY 2025-26			FY 2024-25
	Total employees/workers in respective category (A)	No. of employees/workers in respective category, who are part of associations or Union (B)	% (B/A)	Total employees/workers in respective category (C)	No. of employees/workers in respective category, who are part of associations or Union (D)	% (D/C)
Total Permanent Employees	NA	NA	NA	NA	NA	NA
Male	NA	NA	NA	NA	NA	NA
Female	NA	NA	NA	NA	NA	NA
Total Permanent Workers	NA	NA	NA	NA	NA	NA
Male	NA	NA	NA	NA	NA	NA
Female	NA	NA	NA	NA	NA	NA

Details of training given to employees and workers

Category	FY 2025-26					FY 2024-25
	Total (A)	On health and safety measures		On skill upgradation		Total (D)	On health and safety measures		On skill upgradation
		No. (B)	% (B/A)	No. (C)	% (C/A)		No. (E)	% (E/D)	No. (F)	% (F/A)
Employees
Male	251	175	70%	53	21%	214	107	50%	62	29%
Female	53	58	109%	35	66%	53	55	104%	31	58%
Total	304	233	77%	88	29%	267	162	61%	93	35%
Workers
Male	676	595	88%	382	57%	690	657	95%	592	86%
Female	404	270	67%	156	39%	358	225	63%	245	68%
Total	1080	865	80%	538	50%	1048	882	84%	837	80%

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Business Responsibility & Sustainability Report

Details of performance and career development reviews of employees and worker

Category	FY 2025-26			FY 2024-25
	Total (A)	No. (B)	% (B/A)	Total (C)	No. (D)	% (D/C)
Employees
Male	251	251	100%	214	214	100%
Female	53	53	100%	53	53	100%
Total	304	304	100%	267	267	100%
Workers
Male	676	607	90%	690	606	88%
Female	404	399	90%	358	355	99%
Total	1080	1006	90%	1048	961	92%

Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, the coverage such system?

Yes. The Company has implemented an Occupational Health and Safety Management System in accordance with ISO 45001 standards.

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?

The Company conducts periodic risk assessments to identify work-related hazards associated with both routine and non-routine activities. Appropriate mitigation and control measures are implemented, wherever feasible, to minimize identified risks.

c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y/N) –

Yes. The Company has an incident reporting system managed by the Facility administration, and QA departments, through which employees can report work-related hazards. Periodic drills and training sessions are also conducted to strengthen awareness and preparedness for emergency response situations.

d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)

Yes. Institutional tie ups are in place for employees and workers to access non occupational medical and health care services.

Details of safety related incidents, in the following format

Safety Incident/Number	Category*	FY 2025-26
Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked)	Employees	0
	Workers	0
Total recordable work-related injuries	Employees	2
	Workers	0
No. of fatalities	Employees	0
	Workers	0
High consequence work-related injury or ill-health (excluding fatalities)	Employees	0
	Workers	0

*including the contract workforce.

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12. Describe the measures taken by the entity to ensure a safe and healthy workplace

The Company is committed to providing safe, healthy, and incident free workplace and the key measures taken include: Leadership commitment and Governance, Structured risks measurement and mitigations, mandatory and periodic safety trainings, visitor safety management guidelines, annual health check-ups, strict adherence to safety principles viz fire safety, lab safety (GLP), electrical safety, chemical and biological safety practices, access to medical emergency and response facilities, robust incident reporting, CAPA and established emergency response plans and drills.

13. Number of Complaints on the following made by employees and workers

	FY 2025-26			FY 2024-25
	Filed during the year	Pending resolution at the end of year	Remarks	Filed during the year	Pending resolution at the end of year	Remarks
Working conditions	0	NA	NA	0	NA	NA
Health and Safety	0	NA	NA	0	NA	NA

14. Assessments for the year

	% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety practices	90% All plant and offices were assessed in accordance with ISO 45001 third party.
Working conditions	90% Working conditions were assessed through regular workplace inspections, risk assessments.

Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health & safety practices and working conditions. Nil

Leadership Indicators

Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N).

Yes.

Provide the measures undertaken by the entities to ensure that statutory dues have been deducted and deposited by the value chain partners.

We collect the challans of previous month as a proof of payment before processing the payment for subsequent month

Provide the number of employees / workers having suffered high consequence work-related injury / ill- health / fatalities (as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment:

	Total no. of affected employees/workers		No. of employees/workers that are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment
	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Employees	...	...	...	...
Workers	...	...	...	...

Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or termination of employment? (Yes/ No)

No.

Details on assessment of value chain partners:

	% of value chain partners (by value of business done with such partners) that were assessed
Health and Safety Practices	Nil
Working Conditions

Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of health and safety practices and working conditions of value chain partners.

Nil

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Business Responsibility & Sustainability Report

Principle 4: Businesses should respect the interests of and be responsive to all its stakeholders.

Describe the process for identifying key stakeholder groups of the entity.

Vimta has identified its key stakeholders and its responsibilities in its Credo. It maintains regular contact with various stakeholders including its customers, employees, shareholders, government bodies, Vendors, Banks & Financial Institutions, Creditors and Communities that it operated in. The Company engages in transparent dialogues with its stakeholders to enable participants to make informed decisions on timely basis.

List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Stakeholder Group	Whether identified as vulnerable and marginalized group (Yes/No)	Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website), Other	Frequency of engagement (annually, half yearly, quarterly, others – please specify)	Purpose and scope of engagement including key topics and concerns raised during such engagement
Customers	No	Email, social networks, trade shows, regular interactions and customer appreciation events.	Others - Continuous	Information on business offerings, work updates, periodic relationship reviews.
Investor/Shareholder	No	i. Website
ii. Quarterly results and Annual reports
iii. Press Release and Intimations to stock exchanges
iv. Investor meetings/conference calls and AGM	Quarterly, Annually and Others – Need based	To understand Company’s financial performance, major events and future strategy.
Employees	No	Emails, Notice Boards, Annual performance reviews, trainings and employee engagement activities.	Annual and other Continuous	Information about goals, plans and results. Communication on important organisational developments, changes, new policies and initiatives.
Vendors	No	Emails, periodic assessments and regular meetings/annual reviews with key vendors.	Others - Continuous	Vendor performance, technological advancements and code of conduct.
Regulators	No	Dialogue, audits, meetings and participation in forums	Others - need based	Compliance with laws and regulations, filings for approvals, support for policies.
Community	Yes	Emails, meetings.	Others - Continuous	CSR donations.

Leadership Indicators

Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.

Yet to be formalised.

Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity.

Yes, the identification and management of material issues relevant to the environment, social, economic and governance topics is done in consultation with the stakeholders. No material events during the year.

Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized stakeholder groups.

Nil.

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Principle 5: Businesses should respect and promote human rights

Essential Indicators

Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:

Category	FY 2025-26			FY 2024-25
	Total (A)	No. of employees / workers covered (B)	% (B/A)	Total (C)	No. of employees / workers covered (D)	% (D/C)
Employees
Permanent	304	265	87%	267	190	71%
Other than permanent	0	0	0	0	0	0
Total Employees	304	265	87%	267	190	71%
Workers
Permanent	1080	930	86%	1048	915	87%
Other than permanent	0	0	0	0	0	0
Total Workers	1080	930	86%	1048	915	87%

Details of minimum wages paid to employees and workers, in the following format

	FY 2025-26					FY 2024-25
	Total (A)	Equal to minimum wage		More than minimum wage		Total (D)	Equal to minimum wage		More than minimum wage
		No. (B)	% (B/A)	No. (C)	% (C/A)		No. (E)	% (E/D)	No. (F)	% (F/D)
Employees
Permanent	304	---	---	304	100%	273	---	---	273	100%
Male	251	---	---	251	100%	218	---	---	218	100%
Female	53	---	---	53	100%	55	---	---	55	100%
Other than Permanent	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
Male
Female
Workers
Permanent	1080	16	1%	1064	99%	1088	---	---	1072	99%
Male	676	12	2%	664	98%	710	---	---	698	98%
Female	404	4	1%	400	99%	378	---	---	374	99%
Other than Permanent	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
Male	-	-	-	-	-		-	-	-	-
Female	-	-	-	-	-		-	-	-	-

Details of remuneration/salary/wages, in the following format:

a. Median remuneration / wages:

	Male		Female
	Number	Median remuneration/ salary/ wages of respective category	Number	Median remuneration/ salary/ wages of respective category
Board of Directors (BoD)	6	23.28	2	23.28
Key Management Personnel	4	22.28	2	13.95
Employees other than BoD and KMP	245	1.31	50	1.04
Workers	681	0.37	402	0.30

Note:- Total number of directors includes independent directors, there is no remuneration paid to independent directors except sitting fee.

The above median remuneration calculation includes employees who were not on the rolls of the Company as on 31st March 2026, as remuneration had been paid to such employees for the month of March 2026.

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Vimta

Driven by Quality. Inspired by Science.

Business Responsibility & Sustainability Report

b. Gross wages paid to females as % of total wages paid by the entity, in the following format:

	FY 2025-26	FY 2024-25
Gross wages paid to females as % of total wages	22.13%	22.54%

Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No)

Yes. Employee grievances are addressed and monitored through a formal Employee Grievance Redressal System.

Describe the internal mechanisms in place to redress grievances related to human rights issues

Every employee is given facility/access to report grievances either openly or anonymously to either HR or Direct Manager or even Management/Board.

Number of Complaints on the following made by employees and workers

	FY 2025-26			FY 2024-25
	Filed during the year	Pending resolution at the end of year	Remarks	Filed during the year	Pending resolution at the end of year	Remarks
Sexual Harassment-	0	0	NA	0	0	NA
Discrimination at workplace	0	0	NA	0	0	NA
Child Labour	0	0	NA	0	0	NA
Forced Labour/ Involuntary Labour	0	0	NA	0	0	NA
Wages	0	0	NA	0	0	NA
Other human rights related issues	0	0	NA	0	0	NA

Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format

	FY 2025-26	FY 2024-25
Total complaints reported under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH)	0	0
Complaints on POSH as a % of female employee/ workers	0	0
Complaints on POSH upheld	NA	NA

Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

The HR and Management promote a culture of trust and non-retaliation through regular communication and awareness of the Whistle Blower Policy and POSH Policy. The identity of the complainant is kept confidential and disclosed only to the concerned committee and the investigating officer, on a need-to-know basis. Appropriate and timely action is taken, wherever applicable, and HR continuously monitors the situation through feedback mechanisms to prevent any form of retaliation against the complainant.

Do human rights requirements form part of your business agreements and contracts? (Yes/No)

No.

Assessments for the year:

	% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Child labour	100.00
Forced/involuntary labour	100.00
Sexual harassment	100.00
Discrimination at workplace	100.00
Wages	100.00
Others – please specify	NA

Note:- The results are entered here, after evaluation by the entity.

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Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 10 above.

They were no significant risks/concerns arising from the assessments.

Leadership Indicators

Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints.
NA
Details of the scope and coverage of any Human rights due- diligence conducted.

Compliance with Human Rights principles is regularly monitored and reviewed by the Head – HR and the Management on a quarterly basis. In addition, Ethics Committee reviews are conducted in accordance with the applicable regulatory requirements for Clinical Studies.

Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016?
Yes.
Details on assessment of value chain partners:

	% of value chain partners (by value of business done with such partners) that were assessed
Sexual harassment	Nil
Discrimination at workplace
Child labour
Forced/involuntary labour
Wages
Others – please specify

Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 4 above.

Principle 6: Businesses should respect and make efforts to protect and restore the environment

Essential Indicators

Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

Parameter	FY 2025-26	FY 2024-25
From renewable sources
Total electricity consumption (A) (in GJ)	Nil	Nil
Total fuel consumption (B) (in GJ)	Nil	Nil
Energy consumption through other sources (C) (in GJ)	Nil	Nil
Total energy consumed from renewable sources (A+B+C) (in GJ)	Nil	Nil
From non-renewable sources
Total electricity consumption (D) (in GJ)	43695	37351
Total fuel consumption (E) (in GJ)	1019.4	1027.5
Energy consumption through other sources (F) (in GJ)	Nil	Nil
Total energy consumed from non-renewable sources (D+E+F) (in GJ)	44714	38379
Total energy consumed (A+B+C+D+E+F) (in GJ)	44714	38379
Energy intensity per rupee of turnover (Total energy consumption/revenue from operations) (GJ/ ¶)	10.98	3.19
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total energy consumption/ revenue from operations adjusted for PPP) (GJ/ Revenue Mn)	223.30	226.94
Energy intensity in terms of physical output (GJ/ $)	NA	NA
Energy intensity (optional) – the relevant metric may be selected by the entity (GJ/FTE)	...	...

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency. No

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Vimta

Driven by Quality. Inspired by Science.

Business Responsibility & Sustainability Report

Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.

No.

Provide details of the following disclosures related to water, in the following format

Parameter	FY 2025-26	FY 2024-25
Water withdrawal by source (in Kilolitres)
(i) Surface water	2158 KL	2139 KL
(ii) Groundwater	7377 KL	11052 KL
(iii) Third party water	28767 KL	30345 KL
(iv) Seawater / desalinated water	0	0
(v) Others (Harvested rainwater)	0	0
Total volume of water withdrawal (in Kilolitres) (i + ii + iii + iv + v)	38302 KL	43536 KL
Total volume of water consumption (in Kilolitres)	38302 KL	43536 KL
Water intensity per ₹ Mn of turnover (Kilolitres/₹) (Water consumed / revenue from operations ₹ Mn)	9.40	12.66
Water intensity ₹ Mn of turnover adjusted for Purchasing Power Parity (PPP) (Water	191.28	257.43
Water intensity in terms of physical output	NA	NA
Water intensity (optional) – the relevant metric may be selected by the entity (Kilolitres /FTE)	...	...

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency. No.

Provide the following details related to water discharged

Parameter	FY 2025-26	FY 2024-25
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water	0	0
- No treatment	0	0
- With treatment – please specify level of treatment	0	0
(ii) To Groundwater	0	0
- No treatment	0	0
- With treatment – please specify level of treatment	0	0
(iii) To Seawater	0	0
- No treatment	0	0
- With treatment – please specify level of treatment	0	0
(iv) Sent to third-parties (Cherlapally Facility only upto 1440 KL)	1440 KL	1440 KL
- No treatment	0	0
- With treatment – please specify level of treatment	0	0
(v) Others	0	0
- No treatment	0	0
- With treatment – please specify level of treatment
(In house treatment plant as prescribed by state pollution control board)	6853 KL (In-house Sewage Treatment Plant with zero external discharge)	11508 KL (In-house Sewage Treatment Plant with zero external discharge)
Total water discharged (in kilolitres)	8293 KL	12948 KL

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency: No.

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Business Responsibility & Sustainability Report

Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.

Yes, the entity has implemented a Zero Liquid Discharge (ZLD) mechanism to ensure that no untreated wastewater is released into the environment at its Life Sciences Campus.

The system includes STP, ETP, RO system removes contaminants.
Treated water is further processed through MBR filtration enabling maximum recovery and reuse of water within the facility.
The recovered water is reused for cooling, utilities, and other non-potable applications, thereby reducing freshwater consumption.
Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

Parameter	Please specify unit	FY 2025-26	FY 2024-25
NOx	mg/Nm³ (at 15% O₂)	62.6	60.5
Sox	mg/Nm³ (at 15% O₂)	70.3	70.8
Particulate matter (PM)	mg/Nm³ (at 15% O₂)	15.3	14.8
Persistent organic pollutants (POP)	-	-	-
Volatile organic compounds (VOC)	-	-	-
Hazardous air pollutants (HAP)	-	-	-
Others – please specify	mg/Nm³ (at 15% O₂)	26.2	25.9

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?

(Y/N) If yes, name of the external agency. No.

Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:

Parameter	Unit	FY 2025-26	FY 2024-25
Total Scope 1 emissions (Break-up of the GHG into CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃, if available)	Metric tonnes of CO₂ equivalent	76.3 MT	76.9 MT
Total Scope 2 emissions (Break-up of the GHG into CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃, if available)	Metric tonnes of CO₂ equivalent	0	0
Total Scope 1 and Scope 2 emissions intensity per rupee Mn of turnover (Total scope 1 and scope 2 GHG emissions/ revenue from operations)	tCO₂/⁴	0.0187	0.0224
Total Scope 1 and Scope 2 emissions intensity per rupee of turnover adjusted for Purchasing Power Parity (Total scope 1 and scope 2 GHG emissions/ revenue from operations adjusted for PPP)	tCO₂/⁵	0.381	0.455
Total Scope 1 and Scope 2 emission intensity in terms of physical output	-	NA	NA
Total Scope 1 and Scope 2 emission	Metric tonnes of CO₂ equivalent/FTE	1.01	-
intensity (optional) – the relevant metric may be selected by the entity

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?

(Y/N) If yes, name of the external agency. No.

The intensity has been restated owing to change in the unit of measurement considered in denominator for intensity calculation.
**The intensity adjusted for PPP has been restated following the guidelines set forth in SEBI's circular dated December 20, 2024, which outlines Industry Standards Forum guidance for BRSR Core.

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Vimta

Driven by Quality. Inspired by Science.

Business Responsibility & Sustainability Report

Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.

No.

The entity does not have any specific or dedicated project aimed exclusively at reducing Greenhouse Gas (GHG) emissions during the reporting period.

Provide details related to waste management by the entity, in the following format

Parameter	FY 2025-26	FY 2024-25
Total Waste generated (in metric tonnes)
Plastic waste (A)	2.620MT	0.911MT
E-waste (B)	2.830MT	0.510MT
Bio-medical waste (C)	35.52MT	37.750MT
Construction and demolition waste (D)	---	---
Battery waste (E)	---	---
Radioactive waste (F)	---	---
Other Hazardous waste. Please specify, if any. (G)	3.160MT	2.853MT
Other non-hazardous waste generated (H). Please specify, if any. (Break-up by composition i.e. by materials relevant to the sector)	---	---
Total (A+B + C + D + E + F + G + H)	44.130MT	42.024MT
Waste intensity per rupee Mn of turnover (MT/%) (Total waste generated / revenue from operations)	0.011	0.012
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (MT/$) (Total waste generated/ revenue from operations adjusted for PPP)	0.220	0.248
Waste intensity in terms of physical output	NA	NA
Waste intensity (optional) – the relevant metric may be selected by the entity (MT/FTE)	---	---
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)
Category of waste
(i) Recycled	NA	NA
(ii) Re-used	NA	NA
(iii) Other recovery operations	NA	NA
Total	NIL	NIL
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration	35.52MT	37.750MT
(ii) Landfilling	3.160MT	2.853MT
(iii) Other disposal operations	5.45MT	1.42MT
Total	44.13MT	42.024MT

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency. No.

The intensity has been restated owing to change in the unit of measurement considered in denominator for intensity calculation.
**The intensity adjusted for PPP has been restated following the guidelines set forth in SEBI's circular dated December 20, 2024, which outlines Industry Standards Forum guidance for BRSR Core.
*** The waste under 'Other disposal operations' is being disposed off through PCB authorized vendors.

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Business Responsibility & Sustainability Report

Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.

The entity follows regulated waste management practices by segregating waste at source and disposing all plastic, ewaste, biomedical and hazardous waste through PCB authorized vendors, while minimizing hazardous chemical usage through controlled processes and procurement.

If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required, please specify details in the following format:

| Sl. No. | Location of operations/offices | Type of operations | Whether the conditions of environmental approval / clearance are being complied with? (Y/N)
If no, the reasons thereof and corrective action taken, if any. |
| --- | --- | --- | --- |
| NA | | | |

Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year:

Name and brief details of project	EIA Notification No.	Date	Whether conducted by independent external agency (Yes / No)	Results communicated in public domain (Yes / No)	Relevant Web link
NA (No projects requiring Environmental Impact Assessment)

Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India, such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N).

Yes. If not, provide details of all such non-compliances, in the following format:

Sl. No.	Specify the law / regulation / guidelines which was not complied with	Provide details of the non-compliance	Any fines / penalties / action taken by regulatory agencies such as pollution control boards or by courts	Corrective action taken, if any
Nil

Leadership Indicators

Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): NA

For each facility / plant located in areas of water stress, provide the following information: NA

(i) Name of the area:
(ii) Nature of operations:
(iii) Water withdrawal, consumption and discharge in the following format: Not applicable as none of our site are located in areas of water stress.

Parameter	FY 2025-26	FY 2024-25
Water withdrawal by source (in kilolitres)
(i) To Surface water	NA	NA
(ii) To Groundwater
(iii) To Seawater
(iv) Sent to third-parties
(v) Others
Total volume of water withdrawal (in kilolitres)
Total volume of water consumption (in kilolitres)
Water intensity per rupee of turnover (Water consumed / turnover)
Water intensity (optional) – the relevant metric may be selected by the entity

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Business Responsibility & Sustainability Report

Parameter	FY 2025-26	FY 2024-25
Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water	NA	NA
- No treatment
- With treatment – please specify level of treatment
(ii) Into Groundwater
- No treatment
- With treatment – please specify level of treatment
(iii) Into Seawater
- No treatment
- With treatment – please specify level of treatment
(iv) Sent to third-parties
- No treatment
- With treatment – please specify level of treatment
(v) Others
- No treatment
- With treatment – please specify level of treatment
Total water discharged (in kilolitres)

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency.
No.

Please provide details of total Scope 3 emissions & its intensity, in the following format

Parameter	Unit	FY 2025-26	FY 2024-25
Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)	NA	NA	NA
Total Scope 3 emissions per rupee of turnover	NA	NA	NA
Total Scope 3 emission intensity (optional) – the relevant metric may be selected by the entity	NA	NA	NA

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency.
No.

With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities.

NA. The entity does not have any operations in or around ecologically sensitive areas

If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same as well as outcome of such initiatives, as per the following format:

Sl. No.	Initiative undertaken	Details of the initiative (Web-link, if any, may be provided along-with summary)	Outcome of the initiative
1	NA	NA	NA

Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.

Yes. Vimta has a documented Business Continuity Plan, for all its operations, to prepare for, respond to, and recover from disruptions while maintaining safety, data integrity, animal welfare (where applicable), and GxP compliance. It defines critical

36^{\mathrm{th}} Annual Report, 2025 - 26

Business Responsibility & Sustainability Report

recovery activities and assigns roles and escalation paths. It provides response and recovery actions for facility, utilities, equipment, IT, and animal welfare. The BCP enables controlled continuation of priority work through alternate workflows or sites, protects samples and records, ensures clear stakeholder communication, and is kept as a live document that is reviewed and tested at least annually through drills and exercises to confirm effectiveness.

Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation measures have been taken by the entity in this regard.

None.

Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.

Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent.

Essential Indicators

A. Number of affiliations with trade and industry chambers/ associations.

Four (4)

B. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the entity is a member of/ affiliated to.

Sl. No.	Name of the trade and industry chambers/ associations	Reach of trade and industry chambers/ associations (State/National)
1	The Federation of Telangana Chambers of Commerce and Industry State (FTCCI)	State
2	Confederation of Indian Industry (CII)	National
3	Federation of Indian Export Organisations (FIEO)	National
4	Pharmexcil (Pharmaceuticals Export Promotion Council of India	National

Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from regulatory authorities.

Name of authority	Brief of the case	Corrective action taken
NA

Leadership Indicators

Details of public policy positions advocated by the entity

Sl. No.	Public policy advocated	Method resorted for such advocacy	Whether information available in public domain? (Yes/No)	Frequency of Review by Board (Annually/ Half yearly/ Quarterly / Others – please specify)	Web Link, if available
Nil

Principle 8: Businesses should promote inclusive growth and equitable development.

Essential Indicators

Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.

Name and brief details of project	SIA Notification No.	Date of notification	Whether conducted by independent external agency (Yes / No)	Results communicated in public domain (Yes / No)	Relevant Web link
NA

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Business Responsibility & Sustainability Report

Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format:

SI. No.	Name of Project for which R&R is ongoing	State	District	No. of Project Affected Families (PAFs)	% of PAFs covered by R&R	Amounts paid to PAFs in the FY (In INR)
NA

Describe the mechanisms to receive and redress grievances of the community

Percentage of input material (inputs to total inputs by value) sourced from suppliers

	FY 2025-26	FY 2024-25
Directly sourced from MSMEs/ small producers	62%	62%
Directly from within India	86%	92%

Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent / on contract basis) in the following locations, as % of total wage cost:

Location	FY 2025-26	FY 2024-25
Rural	-	-
Semi urban	-	-
Urban	-	-
Metropolitan	-	-

(Place to be categorized as per RBI Classification System - rural / semi-urban / urban / metropolitan)

Leadership Indicators

Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential Indicators above):

Details of negative social impact identified	Corrective action taken
NA	Nil
NA	Nil

Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government bodies:

SI. No.	State	Aspirational District	Amount Spent (in INR)
The Company did not undertake any CSR projects in aspirational districts during the reporting period.

(a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized /vulnerable groups? (Yes/No)

(b) From which marginalized /vulnerable groups do you procure?

Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current financial year), based on traditional knowledge: Nil

SI. No.	Intellectual Property based on traditional knowledge	Owned/ Acquired (Yes/No)	Benefit shared (Yes / No)	Basis of calculating benefit share
	---	---	---	---

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Business Responsibility & Sustainability Report

Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved.

Name of the authority	Brief of the Case	Corrective action taken
NA

Details of beneficiaries of CSR Projects: The Company has implemented CSR Projects through registered trustor society or Section 8 companies incorporated as per the provisions of Companies Act, 2013. The details of the projects undertaken are as follows

Sl. No.	CSR Project	No. of persons benefitted from CSR Projects
1.	Education & Skill Development Project	The CSR activities of the Company are implemented through registered implementing agencies such as Section 8 Companies, Trusts and Societies. Accordingly, the Company does not maintain the data pertaining to the number of beneficiaries under the CSR projects undertaken.
2.	Healthcare & Preventive Healthcare Project
3.	Hunger, Poverty & Nutrition Support Project
4.	Women Empowerment & Social Welfare Project
5.	Environmental Sustainability & Animal Welfare Project

Principle 9: Businesses should engage with and provide value to their consumers in a responsible manner.

Essential Indicators

Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

The Company has an established mechanism for receiving, reviewing and addressing customer feedback and complaints through multiple channels, including direct customer communications, email-based feedback options, website-based feedback interfaces, periodic customer engagement by senior technical management, and annual business review meetings led by senior management. All customer complaints are centrally recorded and managed by the Quality Assurance function under a defined investigation and Corrective and Preventive Action (CAPA) process, which includes assessment of the issue, root cause analysis, implementation of corrective actions, and monitoring of closure. The status of resolution and redressal is communicated to the concerned customer in a timely manner. In addition, the Company undertakes half-yearly trend analysis of customer feedback and complaints to identify recurring issues, assess systemic risks, and drive continual improvement in products, services and customer experience.

Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:

	As a percentage to total turnover
Environmental and social parameters relevant to the product	Nil
Safe and responsible usage
Recycling and/or safe disposal

Number of consumer complaints in respect of the following

	FY 2025-26		Remarks	FY 2024-25		Remarks
	Received during the year	Pending resolution at end of year		Received during the year	Pending resolution at end of year
Data Privacy	0	0	NA	0	0	NA
Advertising	0	0	NA	0	0	NA
Cyber Security	0	0	NA	0	0	NA
Delivery of essential services	0	0	NA	0	0	0
Restrictive Trade Practices	0	0	NA	0	0	NA
Unfair Trade Practices	0	0	NA	0	0	NA
Other	0	0	NA	0	0	NA

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Business Responsibility & Sustainability Report

Details of instances of product recalls on account of safety issues

	Number	Reasons for recall
Voluntary recalls	NA	NA
Forced recalls	NA	NA

Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy.

Yes. Weblink - https://vimta.com/wp-content/uploads/Cybersecurity-Policy.pdf

Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services. NA
Provide the following information relating to data breaches:

a. Number of instances of data breaches - No instances of data breach reported during the financial year 2025-26.
b. Percentage of data breaches involving personally identifiable information of customers - Nil
c. Impact, if any, of the data breaches - NA

Leadership Indicators

Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available).

Information on the products and services of the Company can be accessed through the Company's website at www.vimta.com and through email communication at [email protected]

Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.

Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

Risk of disruption/discontinuation of essential services is communicated to consumers through emails.

Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/ Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer satisfaction relating to the major products / services of the entity, significant locations of operation of the entity or the entity as a whole? (Yes/No)

36^{\mathrm{th}} Annual Report, 2025 - 26

Independent Auditor's Report

INDEPENDENT AUDITOR'S REPORT

To the Members of Vimta Labs Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Vimta Labs Limited (“the Company”), which comprise the Balance Sheet as at 31 March 2026, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes to the financial statements, including a summary of the Material Accounting Policies and other explanatory information (hereinafter referred to as “the financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2026, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the Key Audit Matters to be communicated in our report.

Sl. No.	Key Audit Matter	How the matter was addressed in our audit
1	Revenue recognition as per Ind AS – 115 “Revenue from Contracts with Customers”
Revenue recognition involves significant management judgements relating to identification of distinct performance obligations, determination of transaction price of the identified performance obligations, the appropriateness of the basis used to measure revenue recognised over a period. Additionally, accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.
Refer Note No. 23 to the financial statements.	Principal audit procedures performed includes the following:
• Assessed the appropriateness of the revenue recognition accounting policies in accordance with Ind AS-115 “Revenue from Contracts with Customers”.
• Evaluated the design and implementation of company’s internal financial controls.
• Tested the operating effectiveness of the internal controls relating to identification of the specific performance obligations in respect of selected sample of contracts.
• Selected a sample of contracts and performed the following procedures.
- Studied, analysed and identified the specific performance obligations in these contracts.
- Compared these performance obligations with that of recorded by the company.
- Performed analytical procedures for reasonableness of revenue disclosed by type and service offerings.
- Evaluated appropriateness of disclosures made in financial statements.

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Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable

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that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act, based on our audit, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

(d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31 March 2026, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2026, from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the

Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the company's internal financial controls with reference to financial statements.

(g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act, as amended we report that:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company, as detailed in Note No.34 to the financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2026.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2026.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2026.

iv.(A) The management has represented that, to the best of it's knowledge and belief, as disclosed in Note No.46 to the financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(B) The management has represented, that, to the best of it's knowledge and belief, as disclosed

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Independent Auditor's Report

in Note No.46 to the financial statements, no funds have been received by the company from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(C) Based on such audit procedures that we have considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (A) and (B) above contain any material mis-statement.
(v) The dividend declared or paid during the year by the company is in compliance with section 123 of the Companies Act, 2013.
(vi) Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account which has a feature of recording audit trail

(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with in respect of accounting software. Additionally, the audit trail of previous years has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the respective years.

As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central Government in terms of section 143 (11) of the Act, we give in "Annexure-B" a statement on the matters specified in paragraphs 3 and 4 of the Order.

For GATTAMANENI & CO.,
Chartered Accountants
(Firm.Regn.No:009303S)

K.HARIBABU
Partner
(ICAI Ms. No. 222800)
UDIN: 26222800GXRDAZ7026

Place: Hyderabad
Date: 06-05-2026

36^{\mathrm{th}} Annual Report, 2025 - 26

Annexure -- A to the Independent Auditor's Report

Robert A. Smith

(Referred to in paragraph 1(f) under “Report on Other Legal and Regulatory Requirements” section of our report of even date to the Members of Vimta Labs Limited)

Report on the Internal Financial Controls with reference to financial statements of the Company under Clause (i) of Sub-section (3) of Section 143 of the Companies Act, 2013

We have audited the Internal Financial Controls with reference to financial statements of VIMTA LABS LIMITED (“the Company”) as of 31 March 2026 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining Internal Financial Controls based on the internal controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (“The Guidance Note”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective company's policies, 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, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financial controls with reference to financial statements of the Company based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls with reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company's internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial controls with reference to financial statements includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financial statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material

Vimta

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Independent Auditor's Report

respects, an adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2026, based on the internal controls with reference to financial statements criteria established by the Company considering the essential components of Internal Financial Controls stated in the Guidance Note.

For GATTAMANENI & CO.,
Chartered Accountants
(Firm.Regn.No:009303S)

K.HARIBABU
Partner
Place: Hyderabad
(ICAI Ms. No. 222800)
Date: 06-05-2026
UDIN: 26222800GXRDAZ7026

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Annexure – B

to Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date to the Members of Vimta Labs Limited)

Statement on the matters specified in Paragraphs 3 and 4 of the Companies (Auditor’s Report) Order, 2020 (“CARO”)

Based on the audit procedure performed for the purpose of reporting a true and fair view on the financial statements of Vimta Labs Limited (“the company”) and taking into consideration the information and explanations given to us and the books of account and other records examined by us in a normal course of audit, and to the best of our knowledge and belief, we report that:

(i) (a) (A) The company has maintained proper records showing full particulars, including quantitative details and situation of its Property, Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of its intangible assets.

(b) The company’s Property, Plant and Equipment have been physically verified by the management at reasonable intervals as per a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. The company has reported that no material discrepancies were noticed on such verification made during the year.

(c) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the company as at the balance sheet date.

(d) The company has not revalued its Property, Plant and Equipment or intangible assets or both during the year.

(e) We have not noticed nor have we been informed of initiating any proceedings or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) (a) The company’s inventory has been physically verified by the management at reasonable intervals and in our opinion, the coverage and procedures of such verification is appropriate. No material discrepancies were noticed between the physical stocks and the book stocks on such verification made during the year.

(b) During the year, in respect of the working capital limits sanctioned in excess of five crore rupees, in aggregate, by the Banks on the basis of security of current assets, the quarterly returns / statements filed by the company with such Banks are in agreement with the Books of account of the company.

(iii) (a) The Company has not provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured to companies, firms, Limited Liability Partnerships or any other parties during the year. Accordingly reporting under clauses 3(iii) (a), (c) to (f) of the Order is not applicable to the Company.

(b) The investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the interest of the Company.

(iv) The company has complied with the provisions of section 186 of the Act in respect of loans given, guarantees provided and investments made. The company has not entered into any transaction covered under section 185 of the Act.

(v) The Company has not accepted deposits or amounts which are deemed to be deposits during the year. Hence, compliance with the directives issued by the RBI and the relevant provisions of Companies Act and the Rules made thereunder is not applicable.

(vi) Maintenance of Cost records has been specified by the Central Government U/s.148(1) of the Act for this company and the prescribed accounts and records have been made and maintained by the company. However, we have not conducted any audit of the same.

(vii) (a) The company has generally been regular in depositing undisputed statutory dues including Goods and Services Tax, Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.

There were no undisputed amounts in respect of the above statutory dues as at 31 March 2026 outstanding for a period of more than six months from the date they became payable.

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Driven by Quality. Inspired by Science.
Independent Auditor's Report

(b) There were no material dues referred to in sub-clause (a) except Provident Fund, which have not been deposited on account of any dispute. Dues of Provident Fund, which have not been deposited on account of disputes are as under:

Name of the Statue	Nature of the dues	Amount (₹ In millions)	Period to which the amount relates	Forum where dispute is pending	Amount paid under protest (₹ In millions)
Employees Provident Fund & Miscellaneous Provisions Act, 1952	Additional demand of Provident Fund dues	8.70	September, 2014 to June 2016	Employees Provident Fund Appellate Tribunal, Bengaluru	1.74

(viii) There were no transactions which are not recorded in the Books of account but which have been surrendered or disclosed as income during the year in the Tax assessments under the Income Tax Act, 1961.

(ix) (a) The Company has not defaulted in repayment of loans or other borrowing or in the payment of interest thereon to any lender.

(b) The company is not a declared wilful defaulter by any Bank or Financial institution or other lender.

(d) The funds raised on short term basis were not utilized for long term purposes.

(e) The company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.

(f) The company has not raised loans during the year on the pledge of securities held in its subsidiaries.

(x) (a) The company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year.

(b) The company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year.

(xi) (a) No fraud by the company or any fraud on the company has been noticed or reported during the year.

(b) No report under sub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(xii) The Company is not a Nidhi company and hence compliance with the requirements applicable to Nidhi companies is not applicable.

(xiii) All transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv)(a) The company has an Internal Audit system commensurate with the size and nature of its business.

(b) We have considered the Internal Audit reports of the company issued till date, for the period under audit.

(xv) The company has not entered into any non-cash transactions with its Directors or persons connected with them. Hence, compliance with the provisions of Section 192 of the Companies Act, 2013 is not applicable.

(xvi)(a) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

(b) The company has not conducted any non-Banking Financial or Housing Finance activities during the year.

(d) The company's Group Companies has no CIC as part of the Group.

(xvii) The company has not incurred cash losses in the financial year and in the immediately preceding financial year.

(xviii) There has been no resignation of the Statutory Auditors of the company during the year.

(xix) On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, the auditor's knowledge of the Board of Directors and management plans, we are of the opinion that no material uncertainty exists as on the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.

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Independent Auditor's Report

(xx)(a) The company is not required to transfer any amount to a fund specified in Schedule VII to the Companies Act in compliance with Second proviso to Sub-section (5) of Section 135 of the Act.

(b) There are no amounts remaining unspent U/s.135(5) of the Act, pursuant to any ongoing project, which is required to be transferred to a special account in compliance with the provisions of Section 135(6) of the Act.

For GATTAMANENI & CO.,
Chartered Accountants
(Firm.Regn.No:009303S)

K.HARIBABU
Partner
Place: Hyderabad
(ICAI Ms. No. 222800)
Date: 06-05-2026
UDIN: 26222800GXRDAZ7026

36th Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Financial Statements

Balance Sheet

as at March 31, 2026

(Amount in INR millions, unless otherwise stated)

Particulars		Note No	As at 31 Mar 2026	As at 31 Mar 2025
ASSETS
Non-current assets
(a)	Property, Plant and Equipment	5A	3,002.06	2,235.69
(b)	Capital work-in-progress	6	179.88	380.97
(c)	Intangible Assets	5B	49.29	64.19
(d)	Financial Assets
	(i) Other Financial Assets	14A	76.49	24.24
(e)	Deferred Tax Assets (Net)	8	62.87	61.61
(f)	Other non-current assets	9A	2.99	20.46
Total Non-Current assets			3,373.58	2,787.16
Current assets
(a)	Inventories	10	299.47	250.56
(b)	Financial assets
	(i) Investments	11	19.98	-
	(ii) Trade receivables	12	1,057.00	1,062.43
	(iii) Cash and cash equivalents	13A	229.69	158.36
	(iv) Bank balances other than (iii) above	13B	420.94	171.07
	(v) Loans	7	0.85	0.81
	(vi) Other financial assets	14B	22.57	17.85
(c)	Other current assets	9B	198.20	217.08
Total Current assets			2,248.70	1,878.16
TOTAL ASSETS			5,622.28	4,665.32
EQUITY AND LIABILITIES
Equity
(a)	Equity share capital	15	89.34	44.47
(b)	Other equity	16	4,479.39	3,744.01
Total equity			4,568.73	3,788.48
Liabilities
Non-Current Liabilities
(a)	Financial liabilities
	(i) Borrowings	17A	15.62	32.24
(b)	Provisions	18A	117.02	118.76
(c)	Other non-current liabilities	19	265.68	82.17
Total Non Current Liabilities			398.32	233.17
Current Liabilities
(a)	Financial liabilities
	(i) Borrowings	17B	17.70	52.91
	(ii) Trade payables	20
	- Outstanding dues of micro enterprises and small enterprises		45.08	38.89
	- Outstanding dues of creditors other than micro enterprises and small enterprises		71.50	66.04
	(iii) Other financial liabilities	21	329.67	331.42
(b)	Other current liabilities	22	131.16	121.71
(c)	Provisions	18B	46.01	32.70
(d)	Current Tax Liabilities (Net)		14.11	-
Total Current Liabilities			655.23	643.67
TOTAL EQUITY AND LIABILITIES			5,622.28	4,665.32

The accompanying material accounting policies and explanatory notes form an integral part of the financial statements.

Per our report of even date attached.

For Gattamaneni & Co

Chartered Accountants

Firm Registration No. 009303S

For and on behalf of the Board of Directors

K. Haribabu

Partner

Membership No. 222800

Place: Hyderabad

Date: May 06, 2026

Dr. S. P. Vasireddi

Executive Chairman

DIN: 00242288

G Purnachandra Rao

Director

DIN: 00876934

Place: Hyderabad

Date: May 06, 2026

Harita Vasireddi

Managing Director

DIN: 00242512

K. Siva Rama Krishna

Chief Financial Officer

Harriman Vungal

ED-Operations

DIN: 00242621

Sujani Vasireddi

Company Secretary

36^{\mathrm{th}} Annual Report, 2025 - 26

Financial Statements

Statement of Profit and Loss

for the year ended March 31, 2026

(Amount in INR millions, unless otherwise stated)

	Particulars	Note No.	Year Ended 31 March 2026	Year Ended 31 March 2025
I.	Income
Revenue from Operations	23	4,072.90	3,439.82
Other Income	24	89.89	42.40
Total Income		4,162.79	3,482.22
II.	Expenses
Cost of material consumed and testing expenditure	25	806.73	710.17
Cost of lab setup	26	1.20	4.30
Employee benefits expense	27	1,144.06	970.18
Finance costs	28	11.67	19.00
Depreciation & Amortisation expense	5	437.72	352.89
Other expenses	29	705.72	535.68
Total Expenses		3,107.10	2,592.22
Profit before tax and exceptional item		1,055.69	890.00
Exceptional item
Statutory Impact of New Labour Codes		16.16	-
III.	Profit before tax from continuing operations [I-II]		1,039.53	890.00
IV.	Tax expense related to continuing operations	30
(a) Current tax		262.37	212.14
(b) Prior year tax adjustments		3.11	(2.35)
(c) Deferred tax (benefit)/expense		(1.07)	12.66
Total Tax Expense		264.41	222.45
V.	Profit for the year from continuing operations [III-IV]		775.12	667.55
VI.	Profit before tax from discontinued operations		-	14.05
VII.	Tax expense related to discontinued operations		-	8.18
VIII.	Profit for the year from discontinued operations [VI-VII]		-	5.87
IX.	Profit for the year from continuing & discontinued operations [V+VIII]		775.12	673.42
X.	Other comprehensive Income
Items that will not be reclassified to profit or loss
(a) Re-measurement of the net defined liability		(0.78)	(0.50)
(b) Income tax relating to the above item		0.20	0.13
Total other comprehensive income/(loss), net of tax		(0.58)	(0.37)
XI.	Total Comprehensive income for the year [IX+X]		774.54	673.05
XII.	Earnings per share from continuing operations
Basic (INR)		17.40	15.01
Diluted (INR)		17.20	14.80
XIII.	Earnings per share from discontinued operations
Basic (INR)		-	0.13
Diluted (INR)		-	0.13
XIV.	Earnings per share from continuing & discontinued operations	31
Basic (INR)		17.40	15.14
Diluted (INR)		17.20	14.93

The accompanying material accounting policies and explanatory notes form an integral part of the financial statements.

Per our report of even date attached.

For Gattamaneni & Co
Chartered Accountants
Firm Registration No. 009303S

For and on behalf of the Board of Directors

Dr. S. P. Vasireddi
Executive Chairman
DIN: 00242288

Harita Vasireddi
Managing Director
DIN: 00242512

Harriman Vungal
ED-Operations
DIN: 00242621

K. Haribabu
Partner
Membership No. 222800

Place: Hyderabad
Date: May 06, 2026

G Purnachandra Rao
Director
DIN: 00876934

Place: Hyderabad
Date: May 06, 2026

Sujani Vasireddi
Company Secretary

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Financial Statements

Statement of Cash Flows

for the year ended March 31, 2026

(Amount in INR millions, unless otherwise stated)

| Particulars | Year Ended
31 March 2026 | Year Ended
31 March 2025 |
| --- | --- | --- |
| Cash flow from operating activities | | |
| Profit before tax including Discontinued Operations | 1,039.53 | 904.05 |
| Adjustments to reconcile profit before tax to net cash flows: | | |
| - Depreciation & Amortisation expense | 437.72 | 357.33 |
| - Interest expense | 5.11 | 13.34 |
| - Impairment loss on receivables | (4.88) | 14.44 |
| - Bad Debts written off | 72.96 | 18.00 |
| - Equity settled share-based payment expenses | 49.86 | 18.50 |
| - Loss/ (Gain) on sale of assets | 1.61 | (0.28) |
| -Profit on sale of business | - | (50.27) |
| - Liabilities no longer required written back | (1.35) | (2.24) |
| - Interest Income | (27.00) | (15.69) |
| - Income from Government Grants | (19.80) | (12.04) |
| - Net gain on foreign exchange fluctuations (unrealised) | (7.27) | (4.55) |
| Adjustments for changes in working capital: | | |
| - (Increase)/decrease in inventories | (48.90) | (3.66) |
| - (Increase)/decrease in trade receivables | (47.20) | (218.01) |
| - (Increase)/decrease in loans and financial assets | (2.29) | 2.13 |
| - (Increase)/decrease in other financial assets | 1.98 | (0.38) |
| - (Increase)/decrease in other assets | 18.88 | (30.14) |
| - Increase/(decrease) in employee benefit obligations | 10.79 | (1.20) |
| - Increase/(decrease) in trade payables | 5.79 | 17.18 |
| - Increase/(decrease) in other financial liabilities | 9.77 | 73.35 |
| - Increase/(decrease) in other current liabilities | 212.74 | 80.83 |
| Cash generated from/(used in) operations | 1,708.05 | 1,160.69 |
| Income tax paid | (236.63) | (220.15) |
| Net cash flows generated from/(used in) operating activities (A) | 1,471.42 | 940.54 |
| Cash flow from Investing activities | | |
| Payment for property, plant and equipment and capital work-in-progress | (996.80) | (790.64) |
| Proceeds from sale/disposal of property, plant and equipment | 0.86 | 28.74 |
| Sale consideration from sale of business | - | 70.00 |
| Net Assets transferred on Sale of business | - | (19.73) |
| Income tax paid on profit on sale of business | - | (5.12) |
| Payments for Purchase of Intangible Assets | (1.20) | (4.30) |
| Redemption/(Investment) in Mutual Funds (Net) | (19.98) | - |
| Redemption/(Investment) in fixed deposits (Net) | (299.87) | (47.59) |
| Interest Income received | 20.31 | 13.27 |
| Net cash flow generated from/(used in) investing activities (B) | (1,296.68) | (755.37) |
| Cash flow from Financing activities | | |
| Payment of Dividend | (44.51) | (44.34) |
| Repayment of Long term Borrowings | (54.28) | (110.90) |

36^{\mathrm{th}} Annual Report, 2025 - 26

Financial Statements

Statement of Cash Flows contd.,

for the year ended March 31, 2026

(Amount in INR millions, unless otherwise stated)

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
Proceeds from Long term Borrowings	-	58.68
Proceeds from/ (repayment of) short-term borrowings	-	(51.44)
Proceeds from exercise of stock options	0.36	0.13
Interest Cost paid	(5.11)	(13.34)
Net cash flow generated from/(used in) financing activities (C)	(103.54)	(161.21)
Net increase/(decrease) in cash and cash equivalents (A+B+C)	71.20	23.96
Cash and cash equivalents at the beginning of the year	158.36	134.41
Effect of exchange differences on cash and cash equivalents	0.13	(0.01)
Cash and cash equivalents at the end of the year	229.69	158.36
Cash and cash equivalents comprise
Balances with banks in current & deposit accounts	228.27	155.46
Cash on hand	1.42	2.90
Total cash and cash equivalents at the end of the year	229.69	158.36

Notes:
Reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities.

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
(i) Non-Current Borrowings #
Balance at the beginning of the year	85.15	140.45
Repayment of Long term Borrowings	(54.28)	(110.90)
Proceeds from Long term Borrowings	-	58.68
Non-Cash Changes due to
- Variation in Exchange Rates	2.45	(3.08)
- Fair Value Adjustments	-	-
Balance at the end of the year	33.32	85.15
# Includes current maturities of non-current borrowings
(ii) Current Borrowings
Balance at the beginning of the year	-	51.44
Net Cash flow during the year	-	(51.44)
Balance at the end of the year	-	-

The accompanying material accounting policies and explanatory notes form an integral part of the financial statements.

Per our report of even date attached.

For Gattamaneni & Co
Chartered Accountants
Firm Registration No. 009303S

For and on behalf of the Board of Directors

K. Haribabu
Partner
Membership No. 222800
Place: Hyderabad
Date: May 06, 2026

Dr. S. P. Vasireddi
Executive Chairman
DIN: 00242288

Harita Vasireddi
Managing Director
DIN: 00242512

Harriman Vungal
ED-Operations
DIN: 00242621

G Purnachandra Rao
Director
DIN: 00876934
Place: Hyderabad
Date: May 06, 2026

K. Siva Rama Krishna
Chief Financial Officer
Sujani Vasireddi
Company Secretary

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Financial Statements

Statement of changes in equity

for the year ended March 31, 2026

(Amount in INR millions, unless otherwise stated)

(A) Equity share capital

Particulars	No. of Shares	Amount
Equity shares of ₹ 2/- each issued, subscribed and fully paid
Balance as at April 1, 2024	2,21,70,583	44.34
Add/Less: Changes during the year - ESOP	63,929	0.13
Balance as at March 31, 2025	2,22,34,512	44.47
Add/Less: Changes during the year - Bonus shares	2,22,52,784	44.51
- ESOP	1,82,059	0.36
Balance as at March 31, 2026	4,46,69,355	89.34

(B) Other equity

Particulars	Securities Premium	General Reserve	Retained Earnings	Share based payment reserve	Other Comprehensive Income	Total
Balance as at April 1, 2024	791.90	86.40	2,172.53	67.07	(21.08)	3,096.82
Add: Profit for the year	-	-	673.42	-	-	673.42
Less: Dividend on Equity Shares	-	-	44.34	-	-	44.34
Add: Expense arising from equity-settled share-based payment transactions (Refer note 27)	-	-	-	18.50	-	18.50
Add/Less: Transfer on account of Exercise of Options	18.51	-	-	(18.51)	-	-
Add: Other comprehensive income/(loss) for the year	-	-	-	-	(0.38)	(0.38)
Balance as at March 31, 2025	810.41	86.40	2,801.60	67.06	(21.46)	3,744.01
Balance as at April 1, 2025	810.41	86.40	2,801.60	67.06	(21.46)	3,744.01
Add: Profit for the year	-	-	775.12	-	-	775.12
Less: Dividend on Equity Shares	-	-	44.51	-	-	44.51
Less: Transfer on Account of Issue of Bonus Shares	44.51	-	-	-	-	44.51
"Add: Expense arising from equity-settled share-based payment transactions (Refer note 27)"	-	-	-	49.86	-	49.86
Add/Less: Transfer on account of Exercise of Options	43.31	-	-	(43.31)	-	-
Add: Other comprehensive income/(loss) for the year	-	-	-	-	(0.58)	(0.58)
Balance as at March 31, 2026	809.21	86.40	3,532.21	73.61	(22.04)	4,479.39

The accompanying material accounting policies and explanatory notes form an integral part of the financial statements.

Per our report of even date attached.

For Gattamaneni & Co

Chartered Accountants

Firm Registration No. 009303S

For and on behalf of the Board of Directors

K. Haribabu

Partner

Membership No. 222800

Place: Hyderabad

Date: May 06, 2026

Dr. S. P. Vasireddi

Executive Chairman

DIN: 00242288

G Purnachandra Rao

Director

DIN: 00876934

Place: Hyderabad

Date: May 06, 2026

Harita Vasireddi

Managing Director

DIN: 00242512

K. Siva Rama Krishna

Chief Financial Officer

Harriman Vungal

ED-Operations

DIN: 00242621

Sujani Vasireddi

Company Secretary

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

Notes

forming part of the financial statements

1 General Information

Vimta Labs Limited (the Company) is a public limited company domiciled in India was incorporated on November 16, 1990 under the provisions of the Companies Act, 1956. The registered office of the Company is situated at 141/2 & 142, IDA Phase II, Cherlapally, Hyderabad – 500 051. The Company is a leading contract research and testing services provider in India. The Company's equity shares are listed at Bombay Stock Exchange and National Stock Exchange of India Limited.

The financial statements are approved for issue by the Board of Directors at its meeting held on May 06, 2026.

2 Material accounting policies

2.1 Basis of Preparation of Financial Statements

(a) Statement of Compliance with Ind AS

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the "Act") read with the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016, as amended from time to time and other relevant provisions of the Act.

Accounting policies have been consistently applied to all the years presented except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The financial statements have been prepared as a going concern on the basis of relevant Ind AS that are effective at the annual reporting date.

(b) Basis of measurement

The financial statements have been prepared on historical cost convention on accrual basis, except for the following items in the balance sheet:

i) Certain financial assets and liabilities measured either at fair value or at amortised cost depending on the classification;
ii) Defined employee benefit liabilities are recognised at the present value of defined benefit obligation adjusted for fair value of plan assets;

(c) Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company's operating cycle and other criteria set out in the Schedule III to the Act. Based on the nature of services and the time between the rendering of service and their realization in cash and cash equivalents, the Company has fixed its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is classified as current when it is:

Expected to be realised or intended to be sold or consumed in normal operating cycle
Held primarily for the purpose of trading
Expected to be realised within twelve months after the reporting period, or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

A liability is classified as current when:

It is expected to be settled in normal operating cycle
It is held primarily for the purpose of trading
It is due to be settled within twelve months after the reporting period, or
It does not have the right at the end of the reporting period to defer the settlement of the liability for at least twelve months after the reporting period. Current assets / liabilities include the current portion of non-current assets / liabilities respectively. All other assets / liabilities including deferred tax assets and liabilities are classified as non-current.

(d) Use of estimates

The preparation of financial statements in conformity with Ind AS requires the management of the Company to make judgments, estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of income and expenses during the reported period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes forming part of the Financial Statements

(e) Fair value measurement

The Company's accounting policies and disclosures require the measurement of fair values, for certain financial and non-financial assets and liabilities based on their classification.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

In estimating the fair value of an asset or liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

For the purpose of fair value disclosures, the company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.2 Property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost comprises of purchase price, freight, non-refundable taxes and duties, specified foreign exchange gains or losses and any other cost attributable to bring the asset to its working condition for its intended use.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to Statement of Profit and Loss during the year in which they are incurred.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as "capital advances" and the cost of assets not ready to use before such date are disclosed under 'Capital work-in-progress' and not depreciated.

Depreciation methods, estimated useful lives

Depreciable amount for assets is the cost of an asset or other amount substituted for cost, less its estimated residual value. Depreciation on property, plant and equipment is provided on straight-line method over their estimated useful lives which are the same as prescribed in Schedule II to the Act, except for the following:

Particulars	Useful Life as per Management Estimate	Useful Life as per Schedule II of the Act
Plant and Equipment	6.67-10 years	10-15 years
Computer Servers	3 Years	6 years

Based on the technical experts assessment of useful life, certain items of property plant and equipment are being depreciated over useful lives different from the prescribed useful lives under Schedule II to the Act. The management has assessed the useful life of such assets on the basis of technical expert advice and past experience in the industry as it believes that such estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition. Depreciation on sale/deduction from property plant and equipment is provided up to the date of sale/deduction, as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying amount and are included in Statement of Profit and Loss.

Assets held for sale

Non-current assets held for sale are measured at the lower of their carrying value and fair value of the assets less costs to sale. Assets and liabilities

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

classified as held for sale are presented separately in the balance sheet. Property, plant and equipment once classified as held for sale are not depreciated/amortised.

2.3 Intangible Assets

Intangible assets are stated at cost less accumulated amortisation and impairment. Intangible assets are amortised over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, other economic factors etc. Amortisation methods and useful lives are reviewed periodically including at each financial year end.

Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates.

Amortisation

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period, with the effect of any change in the estimate being accounted for on a prospective basis. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Operating rights

10 Years

Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted if appropriate.

2.4 Impairment of non-financial assets

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The

reduction is treated as an impairment loss and is recognised in the Statement of Profit and Loss. If, at the reporting date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. Impairment losses previously recognised are accordingly reversed in the Statement of Profit and Loss.

2.5 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(a) Financial assets

Initial recognition and measurement

All financial assets are recognised in balance sheet when, and only when, the entity becomes party to the contractual provisions of the instrument and initially measured at fair value except for trade receivables which are initially measured at transaction price. In the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset or liability are added to or deducted from the fair value.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified into four categories:

Debt instruments at amortised cost
Debt instruments at fair value through other comprehensive income (FVTOCI)
Debt instruments and equity instruments at fair value through profit or loss (FVTPL) and
Equity instruments measured at FVTOCI

Debt instruments at amortised cost

A 'debt instrument' is measured at the amortised cost if both the following conditions are met:

The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes forming part of the Financial Statements

After initial measurement, financial assets are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss. This category covers Trade Receivables, Loans, Cash & Bank Balances and Other Receivables.

Debt instruments at fair value through other comprehensive income (FVTOCI)

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and
Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the other comprehensive income (OCI). On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified to the Statement of Profit and Loss. Interest earned while holding FVTOCI debt instrument is reported as interest income using the EIR method.

Debt instruments and equity instruments at fair value through profit or loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortised cost or as FVTOCI, is classified as at FVTPL.

Debt and Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

Equity instruments measured at FVTOCI

All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVTOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

De-recognition

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company's continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for the following financial assets and credit risk exposures:

a) Financial assets that are debt instruments and are measured at amortised cost e.g., loans, deposits and bank balance.
b) Trade Receivables that result from transactions that are within the scope of Ind AS 115.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables. The application of simplified approach does not require the Company to track changes in credit risk. It recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward looking estimates are analysed.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12 quarter ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12 quarter ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 quarter ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive.

When estimating the cash flows, the Company is required to consider:

All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

(b) Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

This category generally applies to interest-bearing loans and borrowings.

Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid as per agreed terms. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes forming part of the Financial Statements

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

2.6 Taxes

Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the year.

(a) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the year end date.

The Company recognises interest levied and penalties related to income tax assessments in interest expense.

(b) Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient future taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside the statement of Profit and Loss is recognised outside the Statement of Profit and Loss (either in other comprehensive income or in equity). Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

2.7 Inventories

Inventories consist of chemicals and consumables, stores and spares, are measured at the lower of cost and net realisable value. Cost includes purchase price, duties and taxes (other than those subsequently recoverable by the Company from the concerned revenue authorities), freight inwards and other expenditure incurred in bringing such inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. In determining the cost, First In First Out (FIFO) method is used. The carrying cost of inventories are appropriately written down when there is a decline in replacement cost of such materials.

Work in progress are valued at the lower of cost and net realisable value. Cost of work in progress is determined on the basis of cost and on the cost which comprises direct material consumed and human resource cost.

2.8 Provisions and contingent liabilities

Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the year end.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent liabilities and assets are not recognised in financial statements. A disclosure of the contingent

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

liability is made when there is a possible or a present obligation that may, but probably will not, require an outflow of resources.

2.9 Revenue Recognition

Rendering of services

The Company primarily earns revenue from Contract research and testing services.

Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expect to receive in exchange for those services.

Revenue from providing services is recognised in the accounting period in which such services are rendered.

At contract inception, the Company assesses its promise to transfer services to a customer to identify separate performance obligations. The Company applies judgment to determine whether each service promised to a customer is capable of being distinct, and are distinct in the context of the contract, if not, the promised services are combined and accounted as a single performance obligation. The Company allocates the arrangement consideration to separately identifiable performance obligation based on their relative stand-alone selling price or residual method.

In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Company exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

Revenues in excess/short of invoicing are classified as assets/liabilities, as the case may be.

Export incentives

Export incentives are recognised when the right to receive the credit is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds and utilization of export incentives within its validity period.

Interest

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principle outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's gross carrying amount on initial recognition.

Interest income is included in other income in the Statement of Profit and Loss.

Service Concession Arrangements

The Company constructs or upgrades infrastructure (construction or upgrade services) used to provide a public service and operates and maintains that infrastructure (operation services) for a specified period of time. These arrangements may include Infrastructure used in a public-to-private service concession arrangement for its entire useful life.

Under Appendix C to Ind AS 115 – Service Concession Arrangements, these arrangements are accounted for based on the nature of the consideration. The intangible asset model is used to the extent that the operator receives a right (i.e. a concessionaire) to charge users of the public service.

The financial model is used when the operator has an unconditional contractual right to receive cash or other financial assets from or at the direction of the grantor for the construction service. When the unconditional right to receive cash covers only part of the service, the two models are combined to account separately for each component. If the operator performs more than one service (i.e. construction, upgrade services and operation services) under a single contract or arrangement, consideration received or receivable is allocated by reference to the relative fair values of the service delivered, when the amount are not separately identifiable.

The intangible asset is amortised over the shorter of the estimated period of future economic benefits which the intangible assets are expected to generate or the concession period, from the date they are available for use.

An asset carried under concession arrangements is derecognised on disposal or when no future economic benefits are expected from its future use or disposal.

The Company recognises a financial asset to the extent that it has an unconditional right to receive cash or another financial asset from or at the direction of the grantor. In case of annuity based carriageways, the Company recognises financial asset.

2.10 Government grants

Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.

Government grants relating to income are deferred and recognized in the Statement of Profit and Loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes forming part of the Financial Statements

Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to the Statement of Profit and Loss on a straight-line basis over the expected lives of the related assets and presented within other income.

2.11 Foreign Currency Transactions

(a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in Indian rupee (INR), which is the Company's functional and presentation currency.

(b) Transactions and balances

On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction. Gains/Losses arising out of fluctuation in foreign exchange rate between the transaction date and settlement date are recognised in the Statement of Profit and Loss.

All monetary assets and liabilities in foreign currencies are restated at the year end at the exchange rate prevailing at the year end and the exchange differences are recognised in the Statement of Profit and Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

2.12 Retirement and other Employee Benefits

(a) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the year in which the employees render the related service are recognized in respect of employees' services up to the end of the year and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

Provident Fund: Contribution towards provident fund is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.

Employee's State Insurance Scheme: Contribution towards employees' state insurance scheme is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.

(ii) Defined benefit plans

The Company has gratuity as defined benefit plan where the amount that an employee will receive on retirement is defined by reference to the employee's length of service and final salary. The Company has subscribed to gratuity scheme of Life Insurance Corporation of India ('LIC') to which the Company makes periodic Funding. Under the said policy, the eligible employees are entitled for gratuity upon their resignation, retirement, incapitation, termination or in the event of death in lump sum after deduction of necessary taxes, as applicable. The liability in respect of defined benefit plans is calculated using the projected unit credit method consistent with the advice of qualified actuaries. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms of maturity approximating to the terms of the related defined benefit obligation.

The current service cost of the defined benefit plan, recognised in the statement of profit and loss under employee benefit expense, reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit changes, curtailments and settlements.

Past Service costs are recognised in statement of profit and loss in the period of plan amendment. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and fair value of plan assets. The cost is included in the employee benefit expenses in the statement of profit and loss. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise.

Compensated Absences (Leave Encashment): The Company's current policy permits employees to

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

accumulate and carry forward a portion of their unutilised compensated absences and utilise/encash them in future periods in accordance with the terms of such policies. The Company measures the expected cost of accumulated absences as the additional amount that the Company incurs as a result of the unused entitlements that has accumulated at the balance sheet date and charge to Statement of Profit and loss. The Company's liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Such measurement is based on actuarial valuation at the balance sheet date carried out by a qualified actuary. Actuarial losses/gains are recognized in the statement of profit and loss in the year in which they arise.

The stock options granted to employees in terms of the Employee Stock Options Schemes, are measured at the fair value of the options at the grant date. The fair value of the options is treated as discount and accounted as employee compensation cost over the vesting period on a straight-line basis. The amount recognised as expense in each year is arrived at based on the number of grants expected to vest. If a grant lapses after the vesting period, the cumulative discount recognised as expense in respect of such grant is transferred to the general reserve within equity.

2.13 Leases (as a lessee)

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot

be readily determined, Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following: –

Fixed payments, including in-substance fixed payments;
Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
Amounts expected to be payable under a residual value guarantee; and
The exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if Company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in the Statement of Profit and Loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company presents right-of-use assets that do not meet the definition of investment property in 'property, plant and equipment' and lease liabilities in 'loans and borrowings' in the statement of financial position.

Short-term leases and leases of low-value assets The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases of real estate properties that have a lease term of 12 months. The Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

2.14 Borrowing Costs

Borrowing costs consist of interest, ancillary costs and other costs in connection with the borrowing of funds and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes forming part of the Financial Statements

Borrowing costs attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such asset, up to the date such assets are ready for their intended use. Other borrowing costs are charged to the Statement of Profit and Loss.

2.15 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company's earnings per share is the net profit or loss for the year after deducting preference dividends and any attributable tax thereto for the year. The weighted average number of equity shares outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.

2.16 Dividend Distribution

The Company recognizes a liability to make the payment of dividend to owners of equity, when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

2.17 Cash Flows

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payment and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

2.18 Segment Reporting

The management has assessed and identified the reportable segments in accordance with the requirements of Ind AS 108 'Operating Segment' and the Company has only one reportable segment namely "Contract Research and Testing Services".

2.19 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks, cash on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

2.20 Prior Period Items

Material prior period errors are corrected retrospectively by restating the comparative amounts for prior period presented in which the error occurred or if the error occurred before the earliest period presented, by restating the opening statement of financial position.

3. Significant accounting judgments, estimates and assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.

3.1 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Leases

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).

(b) Deferred Taxes

The assessment of the probability of future taxable profit in which deferred tax assets can be utilised is based on the Company's latest approved forecast, which is adjusted for significant non-taxable profit and expenses and specific limits to the use of any unused tax loss or credit. The tax rules in the jurisdiction in which the Company operates are also carefully taken into consideration. If a positive forecast of taxable profit indicates the probable use of a deferred tax asset, especially when it can be utilised without a time limit, that deferred tax asset is usually recognised in full.

(c) Defined benefit plans (gratuity benefits and leave encashment)

The cost of the defined benefit plans such as gratuity and leave encashment are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future due to changing market and economic conditions, regulatory events, judicial rulings, higher or lower withdrawal rates, or longer or shorter participant life spans.

The assumptions include determination of the discount rate, salary growth rate, mortality rate, retirement age and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each year end.

(d) Fair value of financial instruments

Management uses valuation techniques in measuring the fair value of financial instruments where active market quotes are not available. In applying the valuation techniques, management makes maximum use of market inputs and uses estimates and assumptions that are, as far as possible, consistent with observable data that market participants would use in pricing the instrument. Where applicable data is not observable, management uses its best estimate about the assumptions that market participants would make. These estimates may vary from the actual prices that would be achieved in an arm's length transaction at the reporting date.

(e) Impairment of financial assets

The impairment provisions of financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(f) Impairment of non-financial assets

An impairment loss is recognised for the amount by which an asset's or cash-generating unit's carrying amount exceeds its recoverable amount to determine the recoverable amount, management estimates expected future cash flows from each asset or cash generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. In the process of measuring expected future cash flows, management makes assumptions about future operating results. These assumptions relate to future events and circumstances. The actual results may vary, and may cause significant adjustments to the Company's assets.

In most cases, determining the applicable discount rate involves estimating the appropriate adjustment to market risk and the appropriate adjustment to asset-specific risk factors.

(g) Research and Developments Costs

Management monitors progress of internal research and development projects by using a project management system. Significant judgment is required in distinguishing research from the development phase. Development costs are recognised as an asset when all the criteria are met, whereas research costs are expensed as incurred. Management also monitors whether the recognition requirements for development costs continue to be met. This is necessary due to inherent uncertainty in the economic success of any product development.

(h) Property, Plant and Equipment

Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted prospectively, as appropriate.

(i) Current income taxes

Significant judgments are involved in determining the provision for income taxes including judgment on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time periods. The recognition of taxes that are subject to certain legal or economic limits or

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes forming part of the Financial Statements

uncertainties is assessed individually by management based on the specific facts and circumstances.

(j) Provision for expected credit losses (ECL) of trade receivables and contract assets

The Company uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are based on days past due across all segments. The provision matrix is initially based on the Company's historical observed default rates. The Company will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Company's historical credit loss experience and forecast of economic conditions may also not be representative of customer's actual default in the future.

(k) Significant judgements

In the process of applying the Company's accounting policies, the management has made the following judgements, which have the most significant effect on the amounts recognized in the financial statements

Determination of applicability of Appendix C of Service Concession Arrangement ('SCA'), under Ind AS - 115 'Revenue from contracts with customers'

The Company, has entered into concession agreement with Food Safety and Standards Authority of India ('FSSAI') to setup, operate and transfer (SOT) a National food Testing Laboratory (NFL) in JNPT, Mumbai. The management of the Company conducted detailed analysis to determine applicability of SCA. The concession agreements of these entities, have significant non-regulated revenues, this arrangement has been considered as a "Service Concessionaire Arrangement" (SCA) and accordingly, revenue and costs are allocatable between those relating to lab setup services and those relating to operation and maintenance services. Further, the Company has acquired the right to charge the customer for the services to be rendered which has been assessed as an intangible asset.

Standards (including amendments) issued

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1, 2025. The Company has reviewed the amendment and based on its evaluation has determined that it does not have any significant impact in its financial statements.

In August 2025, MCA notified the following amendments to:

Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to classification of liabilities as current or noncurrent and non-current liabilities with covenants. In the context of classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least 12 months after the reporting date and instead requires that the said right should exist on the reporting date and have substance. The amendment also introduces guidance on classification of liabilities with covenants. The Company has no impact of these amendments in its classification criteria of current and non-current liabilities.

Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April 1, 2025 – The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may cause concentration of liquidity risk. The Company has reviewed the amendment and based on its evaluation has determined that it does not have any impact in its financial statements.

Ind AS 12, International Tax Reform – Pillar Two Model Rules applicable immediately - The amendments provide a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they have applied the relief. The remaining disclosure requirements apply for annual reporting periods beginning on or after April 1, 2025.

The amendments had no impact on the Company's financial statements as the Company is not in scope of the Pillar Two model rules.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

5A Property Plant and Equipment
(Amount in INR millions, unless otherwise stated)

Particulars	Gross Carrying Value				Accumulated Depreciation				Net Carrying Value
	As at April 1, 2025	Additions/ Adjustments	Deductions/ Adjustments	As at March 31, 2026	As at April 1, 2025	Charge for the Year	Deductions/ Adjustments	As at March 31, 2026	As at March 31, 2026	As at March 31, 2025
Land	21.88	-	-	21.88	-	-	-	-	21.88	21.88
Buildings	875.80	145.17	-	1,020.97	127.36	21.77	-	149.13	871.84	748.44
Furniture & Fixtures	237.99	50.03	0.11	287.91	99.84	21.03	0.05	120.82	167.09	138.15
Plant & Equipment	2,504.64	939.77	11.39	3,433.02	1,342.39	303.46	9.35	1,636.50	1,796.52	1,162.25
Electrical Installation	89.36	4.14	-	93.50	34.34	6.04	-	40.38	53.12	55.02
Office Equipment	34.09	5.20	0.52	38.77	22.14	4.14	0.41	25.87	12.90	11.95
Computers	306.01	34.22	6.78	333.45	218.38	61.30	6.67	273.01	60.44	87.63
Vehicles	34.59	11.92	3.47	43.04	24.22	3.87	3.32	24.77	18.27	10.37
Total-5A	4,104.36	1,190.45	22.27	5,272.54	1,868.67	421.61	19.80	2,270.48	3,002.06	2,235.69

5B Intangible Assets
(Amount in INR millions, unless otherwise stated)

Particulars	Gross Carrying Value				Accumulated Amortisation				Net Carrying Value
	As at April 1, 2025	Additions/ Adjustments	Deductions/ Adjustments	As at March 31, 2026	As at April 1, 2025	Charge for the Year	Deductions/ Adjustments	As at March 31, 2026	As at March 31, 2026	As at March 31, 2025
Operating rights	164.95	1.20	-	166.15	100.77	16.10	-	116.87	49.29	64.19
Total-5B	164.95	1.20	-	166.15	100.77	16.10	-	116.87	49.29	64.19

Note:
(i) Title deeds of all the immovable properties are held in the name of the company.
(ii) The company has not held / dealt in investment property during the year.
(iii) The company has not revalued its Property, Plant and Equipment and intangible assets during the year under review
(iv) Refer Note No. 17 for disclosures relating to property, plant and equipment offered as security for the borrowings.
(v) Refer Note No. 34B for disclosures relating to contractual commitments for acquisition of property, plant and equipment.
(vi) The company has no intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

5A Property Plant and Equipment
(Amount in INR millions, unless otherwise stated)

Particulars	Gross Carrying Value				Accumulated Depreciation				Net Carrying Value
	As at 1 April 2024	Additions/ Adjustments	Deductions/ Adjustments	As at 31 March 2025	As at 1 April 2024	Charge for the Year	Deductions/ Adjustments	As at 31 March 2025	As at 31 March 2025	As at 31 March 2024
Land	21.88	-	-	21.88	-	-	-	-	21.88	21.88
Buildings	660.34	215.46	-	875.80	108.82	18.54	-	127.36	748.44	551.52
Furniture & Fixtures	139.51	104.69	6.21	237.99	87.32	15.07	2.55	99.84	138.15	52.19
Plant & Equipment	1,978.27	566.57	40.21	2,504.64	1,141.38	231.63	30.62	1,342.39	1,162.25	836.89
Electrical Installation	32.30	57.06	-	89.36	31.24	3.10	-	34.34	55.02	1.06
Office Equipment	32.28	5.73	3.92	34.09	21.56	3.45	2.87	22.14	11.95	10.72
Computers	253.70	61.60	9.29	306.01	174.55	51.46	7.63	218.38	87.63	79.15
Vehicles	32.79	2.47	0.67	34.59	21.76	3.08	0.62	24.22	10.37	11.03
Total-5A	3,151.07	1,013.58	60.30	4,104.36	1,586.63	326.33	44.29	1,868.67	2,235.69	1,564.44

5B Intangible Assets
(Amount in INR millions, unless otherwise stated)

Particulars	Gross Carrying Value				Accumulated Amortisation				Net Carrying Value
	As at 1 April 2024	Additions/ Adjustments	Deductions/ Adjustments	As at 31 March 2025	As at 1 April 2024	Charge for the Year	Deductions/ Adjustments	As at 31 March 2025	As at 31 March 2025	As at 31 March 2024
Operating rights	160.65	4.30	-	164.95	69.77	31.00	-	100.77	64.19	90.88
Total-5B	160.65	4.30	-	164.95	69.77	31.00	-	100.77	64.19	90.88

Note:
(i) Title deeds of all the immovable properties are held in the name of the company.
(ii) The company has not held / dealt in investment property during the year.
(iii) The company has not revalued its Property, Plant and Equipment and intangible assets during the year under review
(iv) Refer Note No. 17 for disclosures relating to property, plant and equipment pledged as security by the Company.
(v) Refer Note No. 34B for disclosures relating to contractual commitments for acquisition of property, plant and equipment.
(vi) The company has no intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

6 Capital work-in-progress

Particulars	As at 31 March 2026	As at 31 March 2025
Property, Plant & Equipment(under erection/ installation)
Opening balance	380.97	585.71
Add: Additions during the year	292.68	568.98
Less: Capitalised during the year	493.77	773.72
Closing Balance	179.88	380.97

31 March 2026

Particulars	Amount in CWIP for a period of
	< 1 Year	1-2 Years	2-3 Years	> 3 Years	Total
Projects in progress	177.98	1.90	-	-	179.88
Projects temporarily suspended	-	-	-	-	-
Total	177.98	1.90	-	-	179.88

31 March 2025

Particulars	Amount in CWIP for a period of
	< 1 Year	1-2 Years	2-3 Years	> 3 Years	Total
Projects in progress	243.08	137.89	-	-	380.97
Projects temporarily suspended	-	-	-	-	-
Total	243.08	137.89	-	-	380.97

Details of Project that is delayed whose completion is overdue or has exceeded its estimated cost compared to the original plan.

The CWIP completion schedule is as follows:

31 March 2026

CWIP	To be completed in
	< 1 Year	1-2 Years	2-3 Years	> 3 Years	Total
Project - Capacity Expansion	60.06	-	-	-	60.06
Total	60.06	-	-	-	60.06

31 March 2025

CWIP	To be completed in
	< 1 Year	1-2 Years	2-3 Years	> 3 Years	Total
Project - Capacity Expansion	212.86	-	-	-	212.86
Total	212.86	-	-	-	212.86

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

7 Financial Assets

Particulars	As at 31 March 2026	As at 31 March 2025
Loans: Current - considered good, unsecured
Loans to Employees	0.85	0.81
Total	0.85	0.81

8 Deferred tax Assets/(Liabilities) (Net)

Particulars	As at 31 March 2026	As at 31 March 2025
Deferred Tax Asset (Net)
(a) Deferred tax liability on account of
- Property, plant and equipment	5.82	6.18
(b) Deferred tax asset on account of
- Gratuity	29.21	26.47
- Compensated absences	11.82	11.65
- Other employee benefits	11.14	9.29
- Impairment loss on trade receivables	15.36	20.38
- Others	1.16	-
	68.69	67.79
Total	62.87	61.61

Movement in the Deferred Tax Assets/(Liabilities):

Particulars	Employee benefit expenses	Property, plant and equipment	Impairment loss on trade receivables	Others	Total
Deferred Tax Asset (Net)
Opening balance as of April 1, 2024	50.08	1.96	22.92	3.02	77.98
(Charged)/credited
- to profit	(2.80)	(8.13)	(2.55)	(3.02)	(16.50)
- to OCI	0.13	-	-	-	0.13
Closing balance as at March 31, 2025	47.41	(6.17)	20.37	-	61.61
Opening balance as of April 1, 2025	47.41	(6.17)	20.37	-	61.61
(Charged)/credited					-
- to profit	4.56	0.35	(5.01)	1.16	1.06
- to OCI	0.20	-	-	-	0.20
Closing balance as at March 31, 2026	52.17	(5.82)	15.36	1.16	62.87

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

9 Other Assets

Particulars	As at 31 March 2026	As at 31 March 2025
(A) Other Non-Current assets (Unsecured, considered good)
Capital advances	2.99	5.72
Income tax assets (Net)	-	14.74
TOTAL	2.99	20.46
(B) Other Current Assets (Unsecured, Considered good)
Prepaid expenses	55.09	54.20
Advances for services and supplies	27.38	35.07
Balance with government authorities*	19.32	17.76
Export incentives	85.70	100.79
Advance for Expenses	10.71	9.26
TOTAL	198.20	217.08
* Balance with government authorities includes PF paid under Protest aggregating to ₹ 1.74 Million as at March 31, 2026 and ₹ 1.74 Million as at March 31, 2025
Note: Due by Directors or other officers of the company or any of them either severally or jointly with any other persons or due by firms / private companies in which any Director is a Partner or a Director or a Member.	Nil	Nil

10 Inventories

Particulars	As at 31 March 2026	As at 31 March 2025
Valued at the lower of cost and net realisable value
Chemicals and consumables	276.00	228.46
Stores and spares	23.47	22.10
TOTAL	299.47	250.56

Note:

(i) Refer Note No. 17 for disclosures relating to inventories offered as security for the borrowings.

11 Investments

Particulars	As at 31 March 2026	As at 31 March 2025
Current Investments- measured at FVTPL
Investments in Mutual Funds - Quoted
4,32,956 (31 March 2025:Nil) units in Aditya Birla Sun Life Medium Term Fund	19.98	-
TOTAL	19.98	-
Aggregate amount of quoted Investments	19.98	-

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

12 Trade Receivables

Particulars	As at 31 March 2026	As at 31 March 2025
Unsecured:
Trade Receivables - considered good	1,057.00	1,062.43
Trade Receivables - credit impaired	61.02	80.98
Gross Trade receivables	1,118.02	1,143.41
Less : Impairment allowance for trade receivables - credit impaired	61.02	80.98
TOTAL	1,057.00	1,062.43

Note:
(i) Debts due by private companies in which any director is a director or a member ₹ 0.60 Mn (Previous year ₹ 1.03 Mn).
(ii) Refer Note 33 for information about credit risk and market risk of trade receivables.
(iii) Refer Note No. 17 for disclosures relating to receivables pledged as security by the Company.

Ageing of Trade receivables

31 March 2026

Particulars	Outstanding for following periods from due date of payment
		Not Due	< 6 Months	6 Months -1 Year	1-2 Years	2-3 Years	> 3 Years	Total
(i)	Undisputed Trade Receivables – considered good	485.69	436.09	72.24	20.57	33.99	8.42	1,057.00
(ii)	Undisputed Trade Receivables – which have significant increase in credit risk	-	-	-	-	-	-	-
(iii)	Undisputed Trade Receivables – credit impaired	-	2.78	6.97	18.92	16.32	16.03	61.02
(iv)	Disputed Trade Receivables – considered good	-	-	-	-	-	-	-
(v)	Disputed Trade Receivables – which have significant increase in credit risk	-	-	-	-	-	-	-
(vi)	Disputed Trade receivables – Credit impaired	-	-	-	-	-	-	-
(vii)	Unbilled Trade receivables	-	-	-	-	-	-	-
Gross Trade receivables		485.69	438.87	79.21	39.49	50.31	24.45	1,118.02
Less : Impairment allowance for trade receivables - credit impaired		-	2.78	6.97	18.92	16.32	16.03	61.02
TOTAL		485.69	436.09	72.24	20.57	33.99	8.42	1,057.00

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

31 March 2025

Particulars	Outstanding for following periods from due date of payment
	Not Due	< 6 Months	6 Months -1 Year	1-2 Years	2-3 Years	> 3 Years	Total
(i) Undisputed Trade Receivables – considered good	383.33	582.22	60.42	9.29	20.64	6.53	1,062.43
(ii) Undisputed Trade Receivables – which have significant increase in credit risk	-	-	-	-	-	-	-
(iii) Undisputed Trade Receivables – credit impaired	-	8.48	10.93	17.12	11.78	32.67	80.98
(iv) Disputed Trade Receivables – considered good	-	-	-	-	-	-	-
(v) Disputed Trade Receivables – which have significant increase in credit risk	-	-	-	-	-	-	-
(vi) Disputed Trade receivables – Credit impaired	-	-	-	-	-	-	-
(vii) Unbilled Trade receivables	-	-	-	-	-	-	-
Gross Trade receivables	383.33	590.70	71.35	26.41	32.42	39.20	1,143.41
Less: Impairment allowance for trade receivables - credit impaired	-	8.48	10.93	17.12	11.78	32.67	80.98
TOTAL	383.33	582.22	60.42	9.29	20.64	6.53	1,062.43

Movement in the Impairment allowance

Particulars	As at 31 March 2026	As at 31 March 2025
Balance at the beginning of the year	80.98	91.08
Impairment losses recognised/(reversed) on receivables (net)	(19.96)	14.10
Bad debts written off against provisions during the year	-	(24.20)
Balance at the end of the year	61.02	80.98

13 Cash and Bank Balances

Particulars	As at 31 March 2026	As at 31 March 2025
(A) Cash and Cash equivalents:
(i) Balance with Banks in India
- Current Accounts	87.17	68.25
- Deposit Accounts having maturity of less than 3 months	92.88	79.00
- EEFC Accounts	48.22	8.21
(ii) Cash on hand	1.42	2.90
TOTAL	229.69	158.36
(B) Bank balances other than (A) (i) above
Deposit Accounts having maturity of over 3 months but upto 12 months	415.03	164.79
Deposits held as security for bank guarantees and others	4.06	4.06
Unclaimed Dividend accounts	1.85	2.22
TOTAL	420.94	171.07

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

14 Other Financial Assets

Particulars	As at 31 March 2026	As at 31 March 2025
A. Non Current - Unsecured, considered good
Security deposits (Service providers and suppliers)	26.49	24.24
Deposit Accounts having maturity of over 12 months	50.00	-
	76.49	24.24
B. Current - Unsecured, considered good
Security deposits (Service providers and suppliers)	11.66	13.63
Interest accrued on deposits and Others	10.91	4.22
TOTAL	22.57	17.85

15 Equity Share Capital

Particulars	As at 31 March 2026		As at 31 March 2025
	No. of Shares	Amount	No. of Shares	Amount
Authorized
Equity Shares of ₹ 2/- each	5,99,99,750	120.00	5,99,99,750	120.00
Total	5,99,99,750	120.00	5,99,99,750	120.00
Issued, subscribed and fully paid-up
Equity Shares of ₹ 2/- each	4,46,69,355	89.34	2,22,34,512	44.47

(a) Reconciliation of equity shares outstanding at the beginning and at the end of the year

Particulars	As at 31 March 2026		As at 31 March 2025
	No. of Shares	Amount	No. of Shares	Amount
Outstanding at the beginning of the year	2,22,34,512	44.47	2,21,70,583	44.34
Add: Issue of Bonus shares	2,22,52,784	44.51	-	-
Add: Issued during the year	1,82,059	0.36	63,929	0.13
Outstanding at the end of the year	4,46,69,355	89.34	2,22,34,512	44.47

(b) Rights, preferences and restrictions attached to shares

The Company has only one class of shares i.e. equity shares having par value of ₹ 2/- per share. Each shareholder is entitled to one vote per share held and ranks pari passu. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of Interim Dividend.

In the event of liquidation of the company, the holders of equity shares are entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The board of directors of the company have recommended a final dividend of ₹ 2/- per equity share of ₹ 2/- each for the financial year 2025-26 (FY 2024-25: ₹ 2/- per equity share of ₹ 2/- each), subject to approval of the shareholders at the ensuing Annual General Meeting, and if approved, would result in a cash outflow of approximately ₹ 89.34 Mn.

(c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company

Particulars	As at 31 March 2026		As at 31 March 2025
	No. of Shares	% of Holding	No. of Shares	% of Holding
Eurofins Analytical Services India Pvt. Ltd.	88,07,336	19.72	44,03,668	19.81
Sivalinga Prasad Vasireddi	51,97,050	11.63	25,98,525	11.69
LCGC Chromatography Solutions Pvt. Ltd.	41,66,350	9.33	20,83,175	9.37
Vungal Harriman	30,85,636	6.91	17,72,818	7.97
Vasireddi Veerabhadra Prasad	10,27,030	2.30	14,63,515	6.58

Note: The above shareholding is as per the records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest. The above shareholding represents both legal and beneficial ownership of shares.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

(d) Shares held by promoters and promoter group at the end of the year

Sl. No.	Promoter Name	As at 31 March 2026		As at 31 March 2025
		No of Shares	% of Total Shares	No of Shares	% of Total Shares	% of Change during the year
1	Sivalinga Prasad Vasireddi	51,97,050	11.63	25,98,525	11.69	(0.01)
2	Vungal Harriman	30,85,636	6.91	17,72,818	7.97	(0.13)
3	Praveena Vasireddi	21,45,070	4.80	11,02,535	4.96	(0.03)
4	TSIDC (APIDC)	11,80,000	2.64	5,90,000	2.65	(0.00)
5	Rajya Lakshmi Vasireddi	11,44,600	2.56	2,300	0.01	255.00
6	Vasireddi Veerbhadra Prasad	10,27,030	2.30	14,63,515	6.58	(0.65)
7	Harita Vasireddi	3,35,928	0.75	1,67,964	0.76	(0.01)
8	Sireesh Chandra Vungal	3,26,110	0.73	1,13,055	0.51	0.43
9	Swarnalatha Vasireddi	41,200	0.09	1,01,535	0.46	(0.80)
10	Sudheshna Vungal	2,99,258	0.67	1,00,879	0.45	0.49
11	Sujani Vasireddi	8,32,650	1.86	66,325	0.30	5.20
12	Rajeswari Vungal	3,99,450	0.89	80,725	0.36	1.47

(e) Shares reserved for issue under options outstanding as at the end of the year on un-issued share capital:

Particulars	As at 31 March 2026		As at 31 March 2025
	No. of Shares to be issued fully paid up	Amount	No. of Shares to be issued fully paid up	Amount
Employee stock option granted and outstanding	5,18,899	73.61	3,08,539	67.06

(f) Vimta Labs Employee Stock Option Plan 2021

The Board of Directors/ Nomination and Remuneration Committee has approved the Vimta Labs Employees Stock Option Plan (VLESOP- 2021) for issue of stock options to eligible employees of the Company. According to the Scheme, the options granted vest within a period of five years, subject to the terms and conditions specified in the scheme. Options granted shall vest so long as the employee continues to be in the employment of the Company as on the date of vesting. Subject to an employee's continued employment with the Company, options can be exercised any time on or after the date of vesting of options as specified in the Scheme.

The details of grant under the aforesaid scheme are summarised below:

Option Plan	Number of Options	Grant Date	Exercise Price in ₹	Fair Value on the date of grant in ₹
Vimta Labs Employee Stock Option Plan -2021	5,07,769	19-Sep-21	2.00	286.12
	17,961	11-May-22	2.00	344.40
	35,702	26-Oct-22	2.00	400.04
	11,872	30-Oct-23	2.00	505.39
	85,532	17-Jul-24	2.00	559.61
	9,609	8-Nov-24	2.00	581.26
	61,174	24-Jan-25	2.00	863.62
	74,699	28-Apr-25	2.00	1153.00
	42,589	17-Jul-25	2.00	473.15
	38,269	28-Jan-26	2.00	509.05

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

Particulars	FY 2025-26	FY 2024-25
Options granted and outstanding at the beginning of the year	3,08,539	3,30,383
Add: Options added due to Bonus issue	3,41,099	-
Less: Options lapsed	1,04,237	1,14,230
Add: Options Granted	1,55,557	1,56,315
Less: Options excercised	1,82,059	63,929
Options granted and outstanding at the end of the year, of which	5,18,899	3,08,539
Options vested	2,00,161	54,268
Options yet to vest	3,18,738	2,54,271
Weighted average remaining contractual life of options (in years)	7.65 years	7.95 years

The number and weighted average exercise price of stock options are as follows:

Particulars	Year Ended 31 March 2026		Year Ended 31 March 2025
	No of Stock options	Weighted Average Exercise price	No of Stock options	Weighted Average Exercise price
(A) Options granted and outstanding at the beginning of the year	3,08,539	₹ 2/-per option	3,30,383	₹ 2/-per option
(B) Options added due to Bonus issue	3,41,099	₹ 2/-per option	-	-
(C) Options granted	1,55,557	₹ 2/-per option	1,56,315	₹ 2/-per option
(D) Options allotted	1,82,059	₹ 2/-per option	63,929	₹ 2/-per option
(E) Options lapsed	1,04,237	₹ 2/-per option	1,14,230	₹ 2/-per option
(F) Options granted and outstanding at the end of the year	5,18,899	₹ 2/-per option	3,08,539	₹ 2/-per option
(G) Options exercisable at the end of the year out of (F)	1,87,033	₹ 2/-per option	33,166	₹ 2/-per option

The fair value of the options granted under the stock option scheme is accounted as employee compensation over the vesting period.

Weighted average fair values of options granted during the year is ₹ 808.07 per option.

The fair value of the options granted during the year has been calculated as per the Black-Scholes Option Pricing Model using the following significant assumptions and inputs:

Particulars	2025-26	2024-25
Weighted average risk-free interest rate	6.00%	6.00%
Weighted average expected life of options	3.06 years	2.22 years
Weighted average expected volatility	63.67%	54.31%
Weighted average expected dividends over the life of the option	80%	80%
Weighted average exercise price	₹ 2/-per option	₹ 2/-per option
Method used to determine expected volatility	Expected volatility is based on the historical volatility of the Company's share price applicable to the total expected life of each option.	Expected volatility is based on the historical volatility of the Company's share price applicable to the total expected life of each option.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

Total Expense accounted on account of the above are given below

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
ESOP cost accounted by the company (Refer Note 27)	49.86	18.50

(g) Pursuant to the approval of shareholders at 35th Annual General Meeting held on June 06,2025, the Company has issued Bonus shares in the ratio of 1:1. i.e., 1 (one) bonus equity share of ₹ 2 each for every 1 (one) fully paid up equity shares held. Subsequently, on June 14, 2025 the Company allotted 2,22,52,784 equity shares to shareholders who held equity shares as on the record date of June 13, 2025. Consequently ₹ 44.51 million (representing par value of ₹ 2 per share) was transferred from securities Premium to the Share Capital Account.

Earnings per share for all prior periods have been proportionately adjusted accordingly.

(h) No shares have been bought back by the Company during the period of five years immediately preceding the current year end.

16 Other equity

Particulars	As at 31 March 2026	As at 31 March 2025
Security Premium
Balance at the beginning of the year	810.41	791.90
Add: Transfer on Account of Exercise of Options	43.31	18.51
Less: Transfer on Account of Issue of Bonus Shares	(44.51)
Balance at the end of the year	809.21	810.41
General Reserve
Balance at the beginning and end of the year	86.40	86.40
Retained Earnings
Balance at the beginning of the year	2,801.60	2,172.53
Add: Profit for the year	775.12	673.42
Less: Dividend on Equity Shares	44.51	44.34
Balance at the end of the year	3,532.21	2,801.60
Share based payment reserve
Balance at the beginning of the year	67.06	67.07
Add: Expense arising from equity-settled share-based payment transactions (Refer note 27)	49.86	18.50
Less: Transfer on Account of Exercise of Options	43.31	18.51
Balance at the end of the year	73.61	67.06
Other Comprehensive Income
Balance at the beginning of the year	(21.46)	(21.08)
Add: Other comprehensive income/(loss) for the year	(0.58)	(0.38)
Balance at the closing of the year	(22.04)	(21.46)
TOTAL	4,479.39	3,744.01

Nature and purpose of reserves:

Security premium: This is the premium received on issue of equity shares and will be utilised as per the applicable provisions of the Act.

General reserves: This is the amount transferred from retained earnings and will be utilised as per the applicable provisions of the Act.

Retained earnings: This comprises of net accumulated profit of the Company after declaration of dividend.

Other comprehensive income: This comprises of actuarial gain/(loss) [net of taxes] at the end of the reporting period.

Share based payment reserve: This comprises of share options granted by the company to its employees under its share option plan. Refer Note 15 (f) for further details.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

17 Borrowings

Particulars	As at 31 March 2026	As at 31 March 2025
(A) Non-current Borrowings
Secured
Loans from Banks
- Rupee term loan	21.87	33.37
- Foreign currency term loan	11.45	51.78
Less: Current maturities	17.70	52.91
TOTAL	15.62	32.24
(B) Current Borrowings
Secured, repayable on demand
- Current maturities of all Long term Borrowings	17.70	52.91
TOTAL	17.70	52.91

Note:

(a) Terms and conditions of secured rupee term loans and nature of security

i) The Rupee term loan from Axis Bank aggregating to ₹ Nil as at March 31,2026 (Previous year 8.37 Millions) Sanctioned limit of ₹ 262.50 Millions in FY 2023-24 is secured by way of first charge on assets created out of Term Loan. This loan is also secured by Second Charge on Current Assets (both present and future) of the company.
ii) The above mentioned rupee term loan carries interest at the rate of 8% (Linked to REPO) and is repayable in 16 quarterly instalments with a 6 months moratorium period from the date of first disbursement.
i) The Rupee Term Loan from Axis Bank aggregating to ₹ 21.87 Millions as on 31.03.2026 (Previous year 25.00 Millions) Sanctioned limit of ₹ 25.00 Millions in FY 2024-25 is secured by way of 1st charge on assets created out of term loan. This loan is also secured by second charge on Current Assets (both present and future) of the Company.
ii) The above mentioned rupee term loan carries interest of 9.00% (Linked to REPO) and is repayable in 16 quarterly instalments with 12 months moratorium period from the date of 1st disbursement.

(b) Terms and conditions of secured foreign currency term loans and nature of security

The foreign currency term loan availed from Axis Bank taken for General Capex aggregating to ₹ 4.89 Millions (equivalent to USD 0.05171 Millions) as at March 31, 2026 (Sanctioned limit of ₹ 75.00 Millions in FY 2020-21 and subsequently converted into FCTL of USD 1.034 Millions) (Previous Year ₹ 22.12 Millions) is secured by way of first charge to bank on assets created out of Term Loan. This loan is also secured by Second Charge on Current Assets (both present and future) of the company at pari passu basis with HDFC Bank Ltd. The loan is covered by collateral security by way of equitable mortgage of property bearing Plot Nos.141/2 & 142, IDA, Phase - II, Cherlapally, Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan carries interest at 12 Months SOFR + 375 bps per annum (mark up fee upfront) and repayable in 20 equal quarterly installments commencing from March 2022.

The foreign currency term loan availed from Axis Bank taken for E&E Project aggregating to ₹ 6.56 Million (equivalent to USD 0.06926 Millions) as at March 31, 2026 (sanctioned limit of ₹ 150.00 Millions in FY 2020-21 and subsequently converted into FCTL of USD 1.1775 Millions) (Previous Year ₹ 29.64 Millions) secured by way of first charge to bank on assets created out of Term Loan. This loan is also secured by Second Charge on Current Assets (both present and future) of the company at pari passu basis with HDFC Bank Ltd. The loan is covered by collateral security by way of equitable mortgage of property bearing Plot Nos.141/2 & 142, IDA, Phase - II, Cherlapally, Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan carries interest at 12 Months SOFR +375 bps per annum (markup fee upfront) and repayable in 20 quarterly installments commencing from March, 2022.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

31 March 2026

Particulars	Within 1 year	1 - 2 years	2 - 5 years	More than 5 Years	Total
Rupee term loan from bank	6.25	6.25	9.37	-	21.87
Foreign currency term loan from bank	11.45	-	-	-	11.45
TOTAL	17.70	6.25	9.37	-	33.32

31 March 2025

Particulars	Within 1 year	1 - 2 years	2 - 5 years	More than 5 Years	Total
Rupee term loan from bank	11.50	6.25	15.62	-	33.37
Foreign currency term loan from bank	41.43	10.35	-	-	51.78
TOTAL	52.93	16.60	15.62	-	85.15

(d) Details of working capital limits from banks :

The working capital facility from Axis bank amounting to ₹ Nil as at March 31, 2026 (sanctioned limit ₹ 150 Million) carries an interest of 3 months MCLR and is secured by way of first paripassu charge on entire current assets of the company (both present and future) along with HDFC Bank ltd.
The working capital facility from HDFC bank amounting to ₹ Nil as at March 31, 2026 (sanctioned limit ₹ 150 Million) carries an interest of REPO rate plus spread of 3% and is secured by way of first paripassu charge on entire current assets of the company (both present and future) along with Axis bank ltd.
First paripassu charge to HDFC bank on Industrial land and building situated at Plot No 141/2 and 142, IDA, Phase -II, Cherlapally, Hyderabad- 500051 as collateral security.

(e) There were no defaults as on current balance sheet date and previous year In repayment of all the above borrowings and interest thereon
(f) The company has used the borrowings from Banks for the specific purpose for which it was taken at the Balance sheet date.
(g) Company's borrowings from Banks on the basis of security of current assets, the quarterly returns or statements filed by the company with Banks are in agreement with the books of account.
(h) Company is not a declared wilful defaulter by any Bank or Financial Institution or other lender.
(i) There are no charges or satisfaction which are yet to be registered with ROC beyond the statutory period in respect of the above borrowings.

18 Provisions

Particulars	As at 31 March 2026	As at 31 March 2025
(A) Non-current
Provision for employee benefits
- Gratuity, funded*	84.92	84.20
- Compensated absences	32.10	34.56
TOTAL	117.02	118.76
(B) Current
Provision for employee benefits
- Gratuity, funded*	31.13	20.98
- Compensated absences	14.88	11.72
TOTAL	46.01	32.70

*Refer note 39B for details of gratuity obligation

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes
forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

19 Other non-current liabilities

Particulars	As at 31 March 2026	As at 31 March 2025
Deferred grant income related to Property, Plant & Equipment*	120.65	82.17
Advance received for purchase of Property, Plant & Equipment	145.03	-
TOTAL	265.68	82.17

Note:

Waiver of duty on import of plant and equipment under Export Promotion Capital Goods (EPCG) Scheme relating to duty waiver received. There are no contingencies attached to these grants except the fulfilment of export obligations. As these grants are relating to Plant and equipments, the same has been capitalised and amortised over the useful life of respective assets.

20 Trade payables

Particulars	As at 31 March 2026	As at 31 March 2025
Outstanding dues of micro enterprises and small enterprises	45.08	38.89
Outstanding dues of creditors other than micro enterprises and small enterprises	71.50	66.04
TOTAL	116.58	104.93

Note:

(i) Detailed disclosure relating to supplier registered under MSMED Act are given below.
(ii) Trade Payables due to related parties as at March 31, 2026 is ₹ 9.74 Millions (March 31, 2025: ₹ 6.24 Millions)

Disclosures under Micro, Small and Medium Enterprises Development Act, 2006 [MSMED Act]

Particulars		As at 31 March 2026	As at 31 March 2025
(a)	Amount remaining unpaid to any supplier at the end of each accounting year:
	Principal	45.08	38.89
	Interest	-	-
	Total	45.08	38.89
(b)	The amount of interest paid by the buyer in terms of section 16 of the MSMED Act, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.	-	-
(c)	The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMED Act.	-	-
(d)	The amount of interest accrued and remaining unpaid at the end of each accounting year.	-	-
(e)	The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the MSMED Act.	-	-

Note: The Micro, Small and Medium enterprises have been identified by the Management on the basis of information available with the Company and have been relied upon by the auditors.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

31 March 2026

Particulars	Outstanding for following periods from due date of payment
	< 1 Year	1-2 Years	2-3 Years	> 3 Years	Total
(i) MSME	45.08	-	-	-	45.08
(ii) Others	65.65	3.94	0.11	1.80	71.50
(iii) Disputed dues –MSME	-	-	-	-	-
(iv) Disputed dues - Others	-	-	-	-	-
TOTAL	110.73	3.94	0.11	1.80	116.58

31 March 2025

Particulars	Outstanding for following periods from due date of payment
	< 1 Year	1-2 Years	2-3 Years	> 3 Years	Total
(i) MSME	38.89	-	-	-	38.89
(ii) Others	63.35	0.11	0.43	2.15	66.04
(iii) Disputed dues –MSME	-	-	-	-	-
(iv) Disputed dues - Others	-	-	-	-	-
TOTAL	102.24	0.11	0.43	2.15	104.93

21 Other current financial liabilities

Particulars	As at 31 March 2026	As at 31 March 2025
Other Current Financial Liabilities (Unsecured)
Unclaimed dividends*	1.85	2.22
Creditors for capital expenditure	99.19	109.36
Security deposits	0.22	-
Revenue expenses payable	228.41	219.84
TOTAL	329.67	331.42

Note:
* Unclaimed dividends do not include any amount outstanding and due to be credited to investor education and protection fund.

22 Other Current Liabilities

Particulars	As at 31 March 2026	As at 31 March 2025
Deferred grant income related to Property, Plant & Equipment (Refer note no 19)	25.31	15.03
Advances from customers	66.73	66.95
Statutory Dues	39.12	39.73
TOTAL	131.16	121.71

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

23 Revenue from Operations

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
Sale of services - Testing and Analysis *	4,072.90	3,439.82
TOTAL	4,072.90	3,439.82
Revenue disaggregation by geography is as follows:#
Revenue from Foreign countries	1,528.43	1,363.65
Revenue from country of domicile-India	2,544.47	2,076.17
TOTAL	4,072.90	3,439.82

Geographical revenue is allocated based on the location of the customers.

Includes revenues relating to lab setup services provided under SCA amounting ₹ 1.20 Mn considered for services rendered for year ended 31st March,2026 and ₹ 4.30 Mn for year ended 31st March,2025.

24 Other Income

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
i) Interest income on:
- Bank & NBFC deposits	26.15	13.57
- Deposits with State Electricity Corporation	1.22	1.40
- Fair value measurement	(0.42)	0.69
- Employees loans	0.05	0.05
ii) Others
- Liabilities no longer required written back	1.35	2.34
- Government Grant	19.80	12.04
- Gain on foreign currency transactions and translations (net)	33.47	6.27
- Miscellaneous receipts	4.25	3.91
- Royalty Income	4.02	1.85
- Profit on Sale of Property, Plant and Equipment	-	0.28
TOTAL	89.89	42.40

25 Cost of material consumed and testing expenditure

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
(A) Cost of materials consumed
Inventory at the beginning of the year	250.56	246.91
Add : Purchases	586.68	438.33
Less : Inventory at the end of the year	299.47	250.56
SUB - TOTAL (A)	537.77	434.68
(B) Testing expenditure
Sample preparation, data generation, inspection & testing expenditure	106.95	141.82
Carriage Inwards	12.89	6.94
Power and fuel	137.57	116.70
Water Charges	11.55	10.03
SUB - TOTAL (B)	268.96	275.49
TOTAL (A) + (B)	806.73	710.17

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

26 Cost of Lab setup under Service Concession arrangement

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
Cost of National Food Laboratory set up in JNPT Mumbai Under Service Concession arrangement (Refer note 43)	1.20	4.30
TOTAL	1.20	4.30

27 Employee benefits expense

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
Salaries and wages	899.67	789.36
Directors remuneration	92.01	57.36
Contribution to provident and other funds	38.00	42.30
Expenses on Employee Stock Option scheme *	49.86	18.50
Gratuity	17.88	20.04
Compensated absences	19.17	17.74
Staff welfare expenses	27.47	24.88
TOTAL	1,144.06	970.18

Pursuant to shareholders approval, the company has formulated ‘Vimta Labs Employee Stock Option Plan 2021 (VLESOP-2021)’ to grant, offer and issue options to the employees of the Company.

In respect of stock options granted pursuant to the Company's stock options plan, the fair value of the options is accounted as employee compensation expense over the vesting period. Consequently, the amount of employee benefits expense includes ₹49.86 million for year ended March 31, 2026 and ₹18.50 millions for year ended March 31, 2025.

28 Finance costs

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
Interest on term loans	5.04	10.06
Interest on working capital loans	0.07	3.27
Interest expense on fair value measurement	(0.36)	0.57
Bank charges	3.82	3.16
Exchange differences regarded as an adjustment to borrowing cost	3.10	1.94
TOTAL	11.67	19.00

29 Other expenses

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
Rent	15.87	17.97
Rates, taxes, duties and levies	42.09	32.74
Insurance	11.74	9.62
Repairs and maintenance to:
- Plant and Machinery	175.04	121.45
- Buildings	17.72	12.20
- Vehicles	6.55	7.06
Advertisement and sales promotion	12.12	7.22
Commission	96.66	70.99
Travelling and conveyance	83.83	74.40
Communication expenses	18.19	18.92
Printing and Stationery	12.13	13.54
Books and periodical	0.02	0.08

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
Professional and consultancy services	60.29	53.86
Membership and subscriptions	17.46	6.60
House Keeping and premises maintenance	26.23	18.29
Security charges	8.87	8.74
Recruitment and training expenses	7.36	2.20
Payment to auditors :
- as auditors	1.84	1.78
- for tax audit	0.29	0.21
- for limited review reports	0.62	0.62
- reimbursement of expenses	0.05	0.05
Software charges	0.96	6.56
Loss on sale of assets	1.61	-
Bad debts written off	72.96	17.71
Impairment loss on receivables	(4.88)	14.10
Corporate Social Responsibility expenses	13.92	11.62
Miscellaneous expenses	6.18	7.15
TOTAL	705.72	535.68

30 Tax Expense

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
(A) Tax expense charged to Statement of Profit and Loss
Current tax (I)
Current tax expense for current year (including tax on disposal of discontinued operations for the year ended March 31, 2025)	262.37	217.26
Current tax expense pertaining to prior years	3.11	(2.35)
	265.48	214.91
Deferred tax (II)
Deferred tax expense for current year (including deferred tax of discontinued operations for the year ended March 31, 2025)	(1.07)	15.72
	(1.07)	15.72
Total tax expense recognised in current year (I + II)	264.41	230.63
(B) Tax expense charged to Other Comprehensive Income	(0.20)	(0.13)
(C) Reconciliation of tax expense
Profit before tax (Including discontinued operations)	1,039.53	904.05
Tax expense at applicable tax rates March 31, 2026: 25.17% (March 31, 2025: 25.17%;)	261.65	218.54
Tax expense on disposal of discontinued operations at applicable rates March 31, 2025: 14.3%	-	5.12
Tax effect of adjustments to reconcile expected tax expense to reported tax expense:
- adjustment for previous years	3.11	(2.35)
- items (deductible)/disallowed for tax	(0.35)	9.32
Tax expense reported in Statement of Profit and Loss	264.41	230.63

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

31 Earnings per share

Basic earnings per share amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

The following are the income and share data used in the basic and diluted EPS computations:

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
Profit including discontinued operations attributable to equity holders (in ₹ Million)	775.12	673.42
Profit including discontinued operations attributable to equity holders adjusted for the effect of dilution (in ₹ Million)	775.12	673.42
Weighted average number of equity shares for basic EPS (in No's)	4,45,41,635	4,43,82,390
Add: Effect of ESOP which are dilutive in nature	5,17,125	6,37,677
Weighted average number of equity shares adjusted for the effect of dilution (in No's)	4,50,58,760	4,50,20,067
Face Value per share (₹)	2.00	2.00
Basic Earnings per share (₹)	17.40	15.14
Diluted Earnings per share (₹)	17.20	14.93

32 Fair value measurements

The following table shows the carrying amount and fair value of financial assets and financial liabilities:

Particulars	Note No.	As at 31 March 2026	As at 31 March 2025
Financial Assets
Loans (current and non-current)	7	0.85	0.81
Investments	11	19.98	-
Trade receivables (net)	12	1,057.00	1,062.43
Cash and cash equivalents	13A	229.69	158.36
Bank balances other than Cash and cash equivalents	13B	420.94	171.07
Other financial assets	14A & 14B	99.06	42.09
		1,827.52	1,434.76
Financial Liabilities
Borrowings (current and non-current)	17A & 17B	33.32	85.15
Trade Payables	20	116.58	104.93
Other financial liabilities	21	329.67	331.42
		479.57	521.50

The Company's principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, Investments, trade and other receivables, cash and cash equivalents and other bank balances that derive directly from its operations.

The carrying amounts of trade receivables, trade payables and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature. The difference between carrying amounts and fair values of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years presented. For all other amortised cost instruments, carrying value represents the best estimate of fair value. For financial assets measured at fair values, the carrying amounts are equal to the fair values.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

33 Financial risk management objectives and policies

The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company's primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company's risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company's risk assessment and management policies and processes. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken.

(i) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

a) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency) in United States Dollar ('USD'), Euro ('EUR'), Great Britain Pound ('GBP'), Swiss Franc ('CHF'), Canadian dollar ('CAD') and borrowings in USD.

The Company's exposure to foreign currency risk from non-derivative financial instruments at the end of the financial year, are as follows:

Particulars	As at 31 March 2026		As at 31 March 2025
	Foreign Currency	Amounts in ₹ Mns	Foreign Currency	Amounts in ₹ Mns
United States Dollar
Assets - Trade Receivables	3.67	347.74	5.13	439.36
Assets - Vendor Advances	-	-	-	0.01
Assets - Cash & Bank Balances	0.51	48.73	0.10	8.21
Liabilities - Trade Payables	(0.59)	(55.81)	(0.41)	(34.76)
Liabilities - Borrowings	(0.12)	(11.45)	(0.60)	(51.77)
Liabilities - Customer Advances	(0.41)	(39.10)	(0.29)	(25.14)
Euro
Assets - Trade Receivables	0.99	107.40	0.86	79.05
Liabilities - Customer Advances	(0.01)	(0.68)	(0.06)	(5.71)
Assets - Vendor Advances	-	0.47	-	0.09
Liabilities - Trade Payables	(0.11)	(12.15)	(0.09)	(8.29)
Great Britain Pound
Assets - Trade Receivables	-	-	-	0.04
Liabilities - Trade Payables	-	(0.16)	-	(0.25)
Assets - Vendor Advances	-	0.08	-	0.18
Swiss Franc
Liabilities - Trade Payables	(0.09)	(10.18)	-	-
Canadian Dollar
Liabilities - Customer Advances	-	(0.01)	-	(0.01)

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

The following exchange rates have been applied at the end of the financial year:

Particulars	Year End Spot Rate
	As at 31 March 2026	As at 31 March 2025
United States Dollar	94.6543	85.5814
Euro	109.0064	92.3246
Great Britain Pound	125.6347	110.7389
Swiss Franc	118.4130	96.8790
Canadian dollar	68.0709	59.6757

Foreign currency sensitivity

The impact on the Company's profitability and equity is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives are as follows:

Particulars	Impact on Profit		Impact on Equity, net of tax
	Strengthening	Weakening	Strengthening	Weakening
31 March 2026
5% Sensitivity* of:
United States Dollar	14.51	(14.51)	10.86	(10.86)
Euro	4.75	(4.75)	3.56	(3.56)
Great Britain Pound	-	-	-	-
Swiss Franc	(0.51)	0.51	(0.38)	0.38
Canadian dollar	-	-	-	-
31 March 2025
5% Sensitivity* of:
United States Dollar	16.80	(16.80)	12.57	(12.57)
Euro	3.26	(3.26)	2.44	(2.44)
Great Britain Pound	-	-	-	-
Canadian dollar	-	-	-	-

Holding all other variables constant

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's fixed rate borrowings are carried at amortised cost and hence are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. Further, the Company's investments in deposits is with banks and electricity authorities and therefore do not expose the Company to significant interest rates risk. The Company's main interest rate risk arises from borrowings with variable rates, which expose it to cash flow interest rate risk.

The Company's exposure to fixed rate and variable rate instruments at the end of the financial year, are as follows:

Particulars	As at 31 March 2026	As at 31 March 2025
Fixed rate instruments
Financial assets	562.83	248.67
Financial liabilities	-	-
Variable rate instruments
Financial liabilities	33.32	85.15

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes
forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of borrowings affected. With all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows:

Particulars	As at 31 March 2026	As at 31 March 2025
Interest rates increase by 100 basis points *	0.33	0.85
Interest rates decrease by 100 basis points *	(0.33)	(0.85)

Holding all other variables constant

c) Price risk

The Company does not have any investments which are classified in the balance sheet as fair value through OCI but the company has investments in Debt oriented Mutual Funds which are classified under Fair Value Through Profit or Loss. Since the Investments are in debt oriented mutual funds the price risk is very minimal.

ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade and other receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to customer credit risk management. The credit quality of a customer is assessed based on an extensive credit rating scorecard, internal evaluation and individual credit limits. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over the last 12 quarters before the reporting date and the corresponding historical credit losses experienced at the end of each quarter. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The expected credit loss assessment from customers as at March 31, 2026 are as follows:

Particulars	Gross carrying amount	Expected credit losses	Carrying amount of trade receivables
31 March 2026
Upto 180 days	924.56	2.78	921.78
Over 180 days	193.46	58.24	135.22
Total	1,118.02	61.02	1,057.00
31 March 2025
Upto 180 days	974.03	8.49	965.54
Over 180 days	169.38	72.49	96.89
Total	1,143.41	80.98	1,062.43

Collateral held as security and other credit enhancements

The Company does not collect any collateral or other credit enhancements to cover its credit risks associated with its financial assets.

Financial assets that are neither past due nor impaired

Other than trade receivables, the Company has no significant class of financial assets that is past due but not impaired.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

Financial assets that are either not due or past due but not impaired

The Company's credit period for customers generally ranges from 0 - 180 days. The aging of trade receivables that are not due and past due but not impaired is given below:

Period in days	As at 31 March 2026	As at 31 March 2025
Upto 180 days	921.78	965.54
Over 180 days	135.22	96.89
	1,057.00	1,062.43

iii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.

Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out by the Company in accordance with practice and limits set by the management. In addition, the Company's liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The Company had following working capital at the end of the reporting years :

Particulars	As at 31 March 2026	As at 31 March 2025
Current assets	2,248.70	1,878.16
Current liabilities	655.23	643.67
Working capital	1,593.47	1,234.49

The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments at the reporting period:

Particulars	As at 31 March 2026	As at 31 March 2025
Less than 1 year
- Borrowings	17.70	52.91
- Trade payables	110.73	102.24
- Other financial liabilities	329.67	331.42
1 to 2 years
- Borrowings	6.25	16.62
- Trade payables	3.94	0.11
2 to 5 years
- Borrowings	9.37	15.62
- Trade payables	1.91	2.58
More than 5 years
- Borrowings	-	-
- Trade payables	-	-

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

iv) Excessive risk concentration

Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company's performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly. Selective hedging is used within the Company to manage risk concentrations at both the relationship and industry levels.

34 Contingent liabilities & Commitments (to the extent not provided for)

Particulars	As at 31 March 2026	As at 31 March 2025
A. Contingent liabilities
Claims against the Company not acknowledged as debts in respect of:
(i) Employees provident fund demand not provided for (pending before the Employees’ Provident Funds Appellate Tribunal)	8.70	8.70
(ii) Good & Service Tax for FY 2017-18 #	-	4.95
	8.70	13.65

The company has made an application for waiver of Intrest & Penalty of ₹ 4.95 million under section 128A of CGST Act, 2017 and During the FY 2025-26 the company has received a conclusive order accepting the waiver of Interest & penalty

Bank Guarantees

10.77 13.79

Note:

(a) Bank Guarantees are issued to meet certain business obligations towards government agencies and certain customers.
(b) Based on the Supreme Court Judgment dated February 28, 2019, the Company was required to reassess the components to be included in the basic salary for the purposes of deduction of Provident Fund. On the basis of legal advice, the management has determined that there is no impact of the aforesaid ruling on the financial statements of the Company.
(c) The amounts disclosed above represents our best estimates and the uncertainties are dependent on the outcome of the legal processes initiated by the Company or the claimant as the case may be.

B. Commitments

Particulars	As at 31 March 2026	As at 31 March 2025
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	40.40	242.69

C. Impact of pending Litigations:

There are no material pending litigations against the company, which will impact its financial position.

35 Leases

The Company's significant leasing arrangements are in respect of operating leases for premises. The leasing arrangements are generally cancellable leases which range between 1 year to 5 years and are usually renewable by mutual consent on agreed terms.

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
Total rental expense relating to operating lease	15.87	17.97
- Non-cancellable	-	-
- Cancellable	15.87	17.97

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

36 Research and development expenditure

| Particulars | Year Ended
31 March 2026 | Year Ended
31 March 2025 |
| --- | --- | --- |
| Aggregate amount of research and development expenditure recognised as an expense during the year | | |
| Revenue Expenditure | 10.36 | 6.69 |
| Capital Expenditure | 6.82 | 16.42 |
| | 17.18 | 23.11 |

37 Corporate social responsibility expenditure (CSR)

| Particulars | Year Ended
31 March 2026 | Year Ended
31 March 2025 |
| --- | --- | --- |
| Gross amount required to be spent during the year | 13.92 | 11.62 |
| Amount spent during the year on: | | |
| (i) On Construction/acquisition of any asset | - | - |
| (ii) On purposes other than (i) above | 13.92 | 11.62 |
| Unspent amount | - | - |
| Total of Previous Year Shortfall | - | - |
| Current Year | - | - |
| Previous Year | - | - |
| Reason for Shortfall | NA | NA |
| Details of Related Party Transactions | Nil | Nil |
| Movement of Provisions made in earlier years | Nil | Nil |

Nature of activities undertaken by the company during FY 2025-26:

Sl. No.	Nature of Activities	Implemented Through	Amount Utilised ₹ Mn
1	To run schools, Hostels and other institutions to promote education in villages and tribal areas in the State.	Vidya Bharathi	2.00
2	Supporting people having deformities and disabilities, with reconstructive surgery.	Narsing Swain Memorial Trust (Akar Asha)	2.00
3	Provides nutritious mid-day meals to children, conducts health camps and life skills trainings to students	Akshaya Patra Foundation	1.00
4	Serve the needy children for their education.	Venkata Subba Reddy Memorial Foundation	0.60
5	Serve the needy children for their education.	Deaf Enabled Foundation	0.40
6	To Promote education mainly in rural areas by providing merit scholarships to the poor and needy students in the selected areas	Wisdom Educational Trust	0.10
7	To empower underprivileged and rural youth in Telangana and Andhra Pradesh dedicated to nurture young aspirants who dream of serving our nation in the State Government and Central Government's Police and Armed Forces	Paravasthu Creative Foundation	0.50
8	Services to the poorest of the poor in all aspects like food, education, cremation etc.	Amma Charitable Trust	0.30
9	Protection of Animal Welfare.	People For Animals	0.20
10	Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects	Aashyam Parents Association	1.62
11	Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects	Babu Jagjevanram Trust	0.50
12	Promoting gender equality, empowering women, and supporting protection, rehabilitation, healthcare, and welfare measures for women and children from vulnerable and socially backward groups.	Bharosa Society for Protection of Women and Children	0.20
13	Eradicating hunger, poverty and malnutrition, and promoting healthcare, including preventive healthcare and sanitation for economically disadvantaged communities	MCKS Trust	2.00
14	Ensuring environmental sustainability and ecological balance through plantation initiatives, and promoting education and welfare of underprivileged sections of society.	Heartfulness Institute	2.50
	Total Spent amount		13.92

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes
forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

38 Related Party Disclosures

(A) Names of related parties and nature of relationship

Name of the Related Parties	Nature of Relationship
(i) Key Management Personnel (KMP)
Dr. S P Vasireddi	Executive Chairman
Harita Vasireddi	Managing Director
Harriman Vungal	Executive Director (ED) - Operations
Satya Sreenivas Neerukonda	Executive Director
D R Narahai Naidu (upto 10.12.2024)	Chief Financial Officer
Siva Rama Krishna Kambhampati (from 06.03.2025)	Chief Financial Officer
Sujani Vasireddi	Company Secretary
(ii) Independent Directors - KMP
Y Prameela Rani
Sanjay Dave
G Purnachandra Rao
Dr. Yadagiri R Pendri
(iii) Relatives of Key Management Personnel
V V Prasad	Brother of Chairman
Sireesh Chandra Vungal	Son of ED - Operations
Sudheshna Vungal	Daughter of ED - Operations
Praveena Vasireddi	Daughter of Chairman
Rajeswari Vungal	Wife of ED - Operations
Rajya Lakshmi Vasireddi	Mother of Company Secretary
Swarnalatha Vasireddi	Wife of Chairman
(iv) Companies in which some of the Directors or their relatives are interested
Bloomedha Info Solutions Private Limited
Covide Business Integrated Private Limited
Escientia Biopharma Private Limited
Escientia Advanced Sciences Private Limited
Escientia Life Sciences Private Limited
Avanti Frozen Foods Private Limited
SPANV Medisearch Lifesciences Private Limited
Avanti Pet Care Private Limited
Saveera Institute of Medical Sciences Private Limited
Avanti Feeds Limited
Avantel Limited
Sarvejana Healthcare Private Limited

(v) Person or Entity holding 10% or more Equity Shares in the compnay

Eurofins Analytical Services India Pvt Ltd

Dr. S P Vasireddi

(vi) Entity in which shareholders holding 10% or more Equity Shares in the company are interested

Eurofins Amar Immuno Diagnostics Pvt Ltd

Eurofins DiscoverX Products, LLC

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

(B) Details of transactions with related parties in the ordinary course of business:

Particulars	Year ended 31 March 2026	Year Ended 31 March 2025
(i) Remuneration to Key Management Personnel (KMP) #
(a) Short Term Employee Benefits (Monthly Remuneration)
Dr. S P Vasireddi	18.00	18.00
Harita Vasireddi	15.43	12.00
Harriman Vungal	15.43	12.00
Satya Sreenivas Neerukonda	15.43	12.00
D R Narahai Naidu	-	6.82
Siva Rama Krishna Kambhampati	5.19	0.36
Sujani Vasireddi	4.12	4.05
(b) Commission on Profits (As per terms of appointment)
Dr. S P Vasireddi	4.00	2.40
Harita Vasireddi	6.00	3.60
Harriman Vungal	4.00	2.40
Satya Sreenivas Neerukonda	6.00	3.60
(c) Post-Employment Benefits
Dr. S P Vasireddi	2.16	2.16
Harita Vasireddi	1.85	1.44
Harriman Vungal	1.85	1.44
Satya Sreenivas Neerukonda	1.85	1.44
D R Narahai Naidu	-	0.02
Siva Rama Krishna Kambhampati	0.02	-
Sujani Vasireddi	0.49	0.46
(ii) Remuneration to Relatives of Key Management Personnel (KMP) #
(a) Short Term Employee Benefits
Sireesh Chandra Vungal	7.39	6.72
Sudheshna Vungal	0.76	3.14
Praveena Vasireddi	3.23	3.84
(b) Post-Employment Benefits
Sireesh Chandra Vungal	0.89	0.81
Sudheshna Vungal	0.09	0.38
Praveena Vasireddi	0.39	0.34
# Remuneration is inclusive of Provident Fund but excluding gratuity and leave encashment. As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the Key Management Personnel and their relatives is not ascertainable and, therefore, not included above.
(iii) Short Term Benefits(Sitting Fees) to KMP - Independent Directors
Y Prameela Rani	0.17	0.23
Sanjay Dave	0.21	0.26
G Purnachandra Rao	0.21	0.26
(iv) Value of Services received (Purchase of goods & services)
Bloomedha Info Solutions Private Limited	1.00	0.42
Eurofins Analytical Services India Pvt Ltd	0.66	3.36
Eurofins DiscoverX Products, LLC	56.88	27.61
(v) Value of Services provided (Sale of Services)
Escientia Biopharma Private Limited	-	0.11
Escientia Advanced Sciences Private Limited	2.49	4.85
Avanti Feeds Limited	0.46	0.40
Avantel Limited	2.12	3.37

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
Material Accounting Policies and explanatory notes
forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

Particulars	As at 31 March 2026	As at 31 March 2025
(i) Dues Payable/(Receivable) to KMPs and their relatives:
Dr. S P Vasireddi	4.72	2.23
Harita Vasireddi	6.72	2.84
Harriman Vungal	4.71	2.07
Satya Sreenivas Neerukonda	6.73	2.84
Sujani Vasireddi	0.23	0.20
Sudheshna Vungal	-	0.18
Praveena Vasireddi	0.16	0.31
Sireesh Chandra Vungal	0.20	0.14
Siva Rama Krishna Kambhampati	0.27	0.36
(ii) Others Payable / (Receivable)
Avanti Frozen Foods Private Limited	0.03	(0.04)
Eurofins DiscoverX Products, LLC	9.74	6.24
Avantel Limited	(0.21)	(0.02)
Escientia Advanced Sciences Private Limited	(0.41)	(0.97)
Eurofins Analytical Services India Pvt Ltd	(0.01)	-

39 Employee benefits

(A) Defined Contribution Plans

The Company has recognised the following amounts in the Statement of Profit and Loss:

Particulars	Year ended 31 March 2026	Year Ended 31 March 2025
Employers’ Contribution to Provident Fund	45.70	48.77
Employers’ Contribution to Employee State Insurance	2.93	3.07

(B) Defined benefit plans

(i) The Company provides for gratuity to employees working in India as per the Payment of Gratuity Act, 1972. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The level of benefits provided depends on the member’s length of service and salary at retirement age.

Amounts recognised in the Statement of Profit and Loss are as follows:

Particulars	Year ended 31 March 2026	Year Ended 31 March 2025
Current service cost	11.61	11.00
Past service cost	16.16	-
Net Interest Cost/(Income) on the Net Defined Benefit Liability/(Asset)	6.27	7.25
Total amount recognized in the Statement Profit and Loss	34.04	18.25

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

Amounts recognised in Other Comprehensive Income are as follows:

Particulars	Year ended 31 March 2026	Year Ended 31 March 2025
Actuarial losses
- change in demographic assumptions	0.67	-
- change in financial assumptions	0.05	2.07
- experience variance (i.e. Actual experience vs assumptions)	0.58	(0.75)
Return on plan assets, excluding amount recognised in net interest expense	(0.52)	(0.82)
Total amount recognised in the other comprehensive income	0.78	0.50

Changes in present value of defined benefit obligation representing reconciliation of opening and closing balances thereof are as follows:

Particulars	As at 31 March 2026	As at 31 March 2025
Present value of obligation at the beginning of the year	107.41	104.03
Current service cost	11.61	11.00
Interest Expense or Cost	6.42	6.57
Re-measurement (or Actuarial) (gain) / loss arising from:
- change in demographic assumptions	0.67	-
- change in financial assumptions	0.05	2.07
- experience variance (i.e. actual experience v/s assumptions)	0.58	(0.75)
Past service cost	16.16	-
Benefits paid	(10.75)	(15.51)
Present value of obligation at the end of the year	132.15	107.41

Changes in the Fair Value of Plan Assets are as follows:

Particulars	As at 31 March 2026	As at 31 March 2025
Fair Value of Plan Assets as at the beginning of the year	2.23	2.45
Investment Income	0.15	(0.68)
Employer's Contribution	23.95	15.15
Benefits Paid	(10.75)	(15.51)
Return on plan assets, excluding amount recognised in net interest expense	0.52	0.82
Fair Value of Plan Assets as at the end of the year	16.10	2.23

The net liability disclosed above relates to funded and unfunded plans are as follows:

Particulars	As at 31 March 2026	As at 31 March 2025
Present value of defined benefit obligation	(132.15)	(107.41)
Fair value of plan assets	16.10	2.23
Net Asset/(Liability)	(116.05)	(105.18)

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

The assumptions used in accounting for the gratuity plan are set out as below:

Particulars	As at 31 March 2026	As at 31 March 2025
Discount rate (per annum)	6.55%	6.57%
Salary growth rate (per annum)	4.00%	4.00%
Mortality rate (% of IALM 12-14)	100.00%	100.00%
Normal retirement age (as per Company’s policy)	60 and 70	60 and 70
Attrition / Withdrawal rate (per annum)	34.70%	20.00%
The estimates of future salary increase considered in actuarial valuation taken into account of inflation, seniority, promotions and other relevant factors such as supply and demand in the employment market. The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards.

Impact on defined benefit obligation

Particulars	As at 31 March 2026	As at 31 March 2025
Discount Rate
1% increase	129.59	103.43
1% decrease	134.84	110.50
Salary Growth Rate
1% increase	135.16	110.71
1% decrease	129.23	103.12
Attrition Rate
50% increase	131.11	107.93
50% decrease	130.92	102.66
Mortality Rate
10% increase	132.17	106.86
10% decrease	132.13	106.81

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

(a) Asset volatility: The plan liabilities are calculated using a discount rate set with reference to current investment patterns in the economy; if plan assets underperform this yield, this will create a deficit. The plan asset investments are subject to interest rate risk. The Company has a risk management strategy where the aggregate amount of risk exposure is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the investments. The Company intends to maintain the investment pattern in the continuing years.

(b) Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans' bond holdings.

(c) Life expectancy: The defined benefit obligation is to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

Defined benefit liability and employer contributions

The following contributions and expected undiscounted future benefit payments:

Particulars	As at 31 March 2026	As at 31 March 2025
0 - 1 Year	47.23	25.02
2 - 5 Years	86.74	68.94
6 - 10 Years	16.34	28.72
More than 10 Years	2.15	14.67

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 2.85 years (31 March 2025: 4.86 years).

Expected Contribution to the plan for the next annual period ₹47.23 millions.

(ii) The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry forward a portion of their unutilised compensated absences and utilise/encash them in future periods as per the Company's policy. The Company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement.

40. Details of discontinued operations during the previous year:

The company vide Business Transfer Agreement (BTA) dated August 30, 2024 entered into with Thyrocare Technologies Limited (Buyer) for sale and transfer of its Diagnostic and Pathological services business (Business) under slump sale, for a consideration of ₹ 70 million, transferred the said Business to the buyer on October 11, 2024. The total consideration has been received by the company during the year 2024-25. In addition to the above consideration, the company through the Brand and Trademarks License Agreement (BTLA) with the buyer, will receive a Brand Royalty fee of 5% of the Revenue from this business over a period of at least 2 years from the date of actual transfer of business.

a. The results of discontinued operations are as follows

Particulars		Year Ended 31 March 2026	Year Ended 31 March 2025
I.	Income
	Revenue from Operations	-	145.15
	Other Income	-	0.03
	Total Income	-	145.18
II.	Expenses
	Cost of material consumed and testing expenditure	-	92.86
	Employee benefits expense	-	43.28
	Finance costs	-	0.12
	Depreciation & Amortisation expense	-	4.45
	Other expenses	-	40.69
	Total Expenses	-	181.40
	Profit/(Loss) before Exceptional Items	-	(36.22)
	Exceptional Items	-	-
III.	Profit/(Loss) before tax from discontinued operations [I-II]	-	(36.22)
IV.	Tax expense related to discontinued operations
	(a) Current tax	-	-
	(b) Prior year tax adjustments	-	-
	(c) Deferred tax (benefit)/expense	-	3.06
	Total Tax Expense	-	3.06

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

Particulars	Year Ended 31 March 2026	Year Ended 31 March 2025
V. Profit/(Loss) for the year from discontinued operations [III-IV]	-	(39.28)
VI. (a) Profit before tax on disposal of discontinued operations	-	50.27
(b) Tax expense related to discontinued operations	-	5.12
(c) Profit on disposal of discontinued operations	-	45.15
VII. Profit from discontinued operations (V+VI)	-	5.87

b. Details of disposal of discontinued operations

Particulars	Year Ended 31 March 2025
Proceeds from slump sale of business	70.00
Less: Carrying amount of net assets transferred	19.73
Less: Costs incurred on slump sale of business	-
Profit before tax on disposal of discontinued operations	50.27
Less: Tax expense related to discontinued operations	5.12
Profit on disposal of discontinued operations	45.15

c. The Carrying amount of assets and liabilities as at the date of sale were as follows

Particulars	10 October 2024
Property, plant and equipment	13.93
Inventory	17.17
Trade Receivables	2.35
Other Financial Assets	0.60
Total Assets	34.04
Trade Payables	13.43
Other financial liabilities and provisions	0.89
Total Liabilities	14.31
Net Assets transferred	19.73

d. Cash Flow Statement

Particulars	As at 31 March 2026	As at 31 March 2025
Cash Flows from
- Operating Activities	-	(23.35)
- Investing Activities	-	45.15
- Financing Activities	-	0.12
Total	-	21.92

41 Segment Reporting

The Managing Director of the company has been identified as the Chief Operating Decision Maker (CODM) as required by Ind AS 108 Operating Segments. The Company is in the business of providing contract research and testing services. The Managing Director reviews the operations of the Company as one operating segment taking into account the nature of the business, the organization structure, internal reporting structure and risk and rewards. Hence no separate segment information has been furnished herewith.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

42 Capital management and ratios

The Company's objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors capital on the basis of the following gearing ratio i.e. Net debt (total borrowings net of cash and cash equivalents) divided by total equity (as shown in the balance sheet):

Particulars		As at 31 March 2026	As at 31 March 2025
Equity Share Capital		89.34	44.47
Other Equity		4,479.39	3,744.01
Total Equity	(i)	4,568.73	3,788.48
Long-term borrowings		15.62	32.24
Short-term borrowings		17.70	52.91
Less: Cash and Cash equivalents		229.69	158.36
Total Debt	(ii)	(196.37)	(73.21)
Overall financing	(iii) = (i) + (ii)	4,372.36	3,715.27
Gearing ratio*	(ii)/ (iii)	*	*

Borrowings are lower than the Cash and Cash equivalents and Bank Deposits resulting in a negative net debt.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. Further there were no changes were made in the objectives, policies or processes for managing capital for the year ended March 31, 2026.

Ratios as per Schedule III requirements

Particulars	31 March 2026	31 March 2025	% change from 31 March 2025 to 31 March 2026	Reason for % change from previous year
(a) Current Ratio	3.43	2.92	18%
(b) Debt-Equity Ratio	0.01	0.02	-68%	Due to repayment of borrowings
(c) Debt Service Coverage ratio	19.65	8.18	140%	Due to Increase in Earnings & repayment of debt
(d) Inventory Turnover Ratio	2.93	2.86	3%
(e) Trade Payable Turnover Ratio	5.30	4.68	13%
(f) Net Profit Ratio	19.03%	19.41%	-2%
(g) Return on Equity Ratio	16.97%	17.62%	-4%
(h) Return on Investment Ratio	6.52%	5.92%	10%
(i) Trade Receivables Turnover Ratio	3.84	3.56	8%
(j) Net Capital Turnover Ratio	2.56	2.79	-8%
(k) Return on Capital Employed	21.18%	22.73%	-7%

Note: The Above Ratio's as at 31st March 2025 are computed for continuing operations only

36^{\text{th}} Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Material Accounting Policies and explanatory notes

forming part of the Financial Statements

(Amount in INR millions, unless otherwise stated)

Formula used to compute ratios:

Ratio	Formula
(a) Current Ratio	Current Assets / Current Liabilities
(b) Debt-Equity Ratio	Total debt / Total equity
(c) Debt Service Coverage ratio	Earnings available for debt services(i.e., EBIT+Depreciation and Amortization) / Total interest and principal repayments
(d) Inventory Turnover Ratio	Cost of goods sold / Average inventory
(e) Trade Payable Turnover Ratio	Total purchases / Average trade payables
(f) Net Profit Ratio	Net profit after tax / Revenue from Operations
(g) Return on Equity Ratio	Net profit after tax / Equity
(h) Return on Investment Ratio	Interest Income / Average Investment in Fixed Deposits
(i) Trade Receivables Turnover Ratio	Revenue from operations / Average trade receivables
(j) Net Capital Turnover Ratio	Revenue from operations / Net Working capital (Net working capital = current assets - current liabilities)
(k) Return on Capital Employed	Earnings before interest and taxes (EBIT) / Capital Employed

43 The Company has entered into a Public Private Partnership (PPP) agreement with Food Safety and Standards Authority of India (FSSAI) on June 29, 2021 to setup, operate and transfer (SOT) a National food Testing Laboratory (NFL) in JNPT, Mumbai. The contract was awarded to Vimta in 2021 for a term of 25 years. Sale price for services rendered was fixed by FSSAI as per the terms of agreement and to be revised as and when fixed by FSSAI. At the end of the contract period all the assets installed at NFL in JNPT, Mumbai shall be transferred to FSSAI without any consideration. No changes were occurred to the arrangement during the current year. In accordance with the provisions of Ind AS 115, this arrangement has been considered as a "Service Concessionaire Arrangement" (SCA) and accordingly, revenue and costs are allocatable between those relating to lab setup services and those relating to operation and maintenance services. Further, the Company has acquired the right to charge the customer for the services to be rendered which has been assessed as an intangible asset.

Consequently, the amount of revenues from operations and lab setup expenses includes ₹ 1.2 million for year ended March 31, 2026 and ₹ 4.3 million for year ended March 31, 2025, respectively representing the revenues relating to lab setup services provided under SCA, the costs of fulfilling the contract and the right to charge the customer for the services to be rendered, respectively.

44 Pursuant to the Scheme of Amalgamation ("the Scheme") under Section 230 to 232 of the Companies Act, 2013 sanctioned by the Hon'ble National Company Law Tribunal, Hyderabad bench vide order dated 23rd January 2025, EMTAC Laboratories Private Limited (EMTAC), a wholly owned Subsidiary of the Company has been amalgamated with the Company on the appointed date, i.e., 1st April, 2024. In terms of the Scheme, the assets and liabilities of EMTAC have been vested with the Company and have been accounted in accordance with the "Pooling of Interest Method" as laid down in Appendix - C, of Indian Accounting Standard i.e, Ind. AS 103 - Business Combinations.

45 Disclosure U/s.186(4) of the Companies Act, 2013. During the year under review, The Company has not given any loans, made Investment, given Guarantee, provided Security to any others.

46 Disclosure pursuant to requirements of Rule 11(e) (i) & (ii) of the Companies (Audit and Auditors) Rules

(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(ii) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

36^{\mathrm{th}} Annual Report, 2025 - 26

Material Accounting Policies and explanatory notes forming part of the Financial Statements

47 Other Statutory Information

(i) The Company has no transactions with companies struck off under Sec.248 of the companies Act, 2013 or Sec.560 of the Companies Act, 1956.

(ii) The Company does not have any transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iv) No Proceeding has been initiated or pending against the Company under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

(v) The Company has complied with the number of layers prescribed under Clause 87 of Sec.2 of the Act read with the Companies (Restriction on number of layers) Rules 2017.

(vi) The Company has not granted loans or advances in the nature of loans to the promoters, directors or KMPs and the related parties as defined in the companies act, 2013 either severally or jointly with any other person that are repayable on demand or without specifying terms or period of repayment.

Pursuant to the implementation of the new labour code effective from 21st November, 2025 by the Government of India, the Company has reassessed the impact of the changes based on actuarial valuation and recognised an incremental impact of past service cost in gratuity amounting to ₹16.16 million, arising primarily from the revision in the definition of wages. Considering its non-recurring nature and quantum involved, past service cost is presented under "exceptional items" in the statement of profit & loss for the period ended December 31, 2025. The Company will continue to monitor the finalization of central and state rules, clarifications from the government on other aspects of the labour code and will provide appropriate impact as needed.
Previous year figures have been regrouped/reclassified wherever necessary to correspond with the current year classification and disclosure.

Per our report of even date attached.

For Gattamaneni & Co
Chartered Accountants
Firm Registration No. 009303S

K Haribabu
Partner
Membership No. 222800
Place: Hyderabad
Date: May 06, 2026

For and on behalf of the Board of Directors

Dr. S. P. Vasireddi
Executive Chairman
DIN: 00242288

G Purnachandra Rao
Director
DIN: 00876934
Place: Hyderabad
Date: May 06, 2026

Harita Vasireddi
Managing Director
DIN: 00242512

K. Siva Rama Krishna
Chief Financial Officer

Harriman Vungal
ED-Operations
DIN: 00242621

Sujani Vasireddi
Company Secretary

36^{\mathrm{th}} Annual Report, 2025 - 26

NOTES

Vimta

Driven by Quality. Inspired by Science.

Vimta Labs Limited
CIN: L24110TG1990PLC011977

Registered Office
Plot Nos. 141/2 & 142, IDA Phase II
Cherlapally, Hyderabad - 500 051
Telangana, India.

[email protected]

vimta.com

Vimta
Driven by Quality. Inspired by Science.

Notice Calling

36th

ANNUAL

GENERAL

MEETING

2026

PAGE INTENTIONALLY LEFT BLANK

NOTICE

NOTICE is hereby given that the 36th Annual General Meeting of the Members of Vimta Labs Limited (“the Company”) will be held on Thursday, 25th June 2026 at 10:00 A.M. IST through Video Conferencing (“VC”)/Other Audio-Visual Means (“OAVM”) to transact the following businesses. The venue of the meeting shall be deemed to be the registered office of the company at Plot No. 141/2 & 142, IDA, Phase II, Cherlapally, Hyderabad - 500051, Telangana, India.

ORDINARY BUSINESS:

To receive, consider and adopt the Audited Financial Statements of the company for the financial year ended 31st March 2026 together with the reports of the Board of Directors and the Auditors of the company thereon.
To declare a Dividend of ₹ 2/- per equity share for the financial year ended 31st March 2026.
To appoint a director in place of Mr. Harriman Vungal (DIN 00242621), Executive Director – Operations, who retires by rotation and being eligible, offered himself for re-appointment as a director liable to retire by rotation. Upon reappointment, Mr. Harriman Vungal will continue to be the Executive Director – Operations for the rest of his tenure as per the terms of his appointment.

SPECIAL BUSINESS:

Ratification of remuneration of cost auditors for financial year ended 31st March 2025.

To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 148 of the Companies Act, 2013 (“the Act”) read with Rule 14 (a) (ii) of Companies (Audit and Auditors) Rules, 2014 including any statutory modification(s) or re-enactment(s) thereof for the time being in force and as recommended by the Audit Committee and duly approved by the Board of Directors, remuneration of ₹ 50,000/- (Rupees Fifty Thousand only) plus applicable GST, paid to M/s Lavanya and Associates LLP, Cost Accountants, Hyderabad (LLP Identification Number ACO-7111), Cost Auditors for conducting Audit of cost records of the company for the financial year ending 31st March 2025 be and is hereby ratified.”

Ratification of remuneration of cost auditors for financial year ended 31st March 2026.

To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 148 of the Companies Act, 2013 (“the Act”) read with Rule 14 (a) (ii) of Companies (Audit and Auditors) Rules, 2014 including any statutory modification(s) or re-enactment(s) thereof for the time being in force and as recommended by the Audit Committee and duly approved by the Board of Directors, remuneration of ₹ 50,000/- (Rupees Fifty Thousand only) plus applicable GST, fixed to M/s Lavanya and Associates LLP, Cost Accountants, Hyderabad (LLP Identification Number ACO-7111), Cost Auditors for conducting Audit of cost records of the company for the financial year ending 31st March 2026 be and is hereby ratified.”

Reappointment of Dr. S P Vasireddi (DIN: 00242288) as Executive Chairman of the Company

To consider and if thought fit, to pass with or without modification(s), the following resolution as a Special Resolution:

“RESOLVED THAT pursuant to the provisions of Sections 152,188, 196,197,198, 203 and other applicable provisions, if any, of the Companies Act, 2013 (the “Act”), read with Schedule V thereto (including any amendments, statutory modifications, or re-enactments thereof for the time being in force), the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and in accordance with the provisions of Regulation 17(6)(e) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and based on the recommendations of the Nomination and Remuneration Committee, with the approval of Audit Committee and on approval of the Board of Directors of the Company, approval of the Members of the Company be and is hereby granted for re-appointment of Dr. S P Vasireddi (DIN: 00242288), as Executive Chairman of the Company for a term of five (5) years, w.e.f., 01st July 2026 with a remuneration, partly by way of monthly salary and perquisites and partly as a percentage of the Net Profit of the Company payable annually, as detailed below with the terms and conditions for the payment of such remuneration as follows:

A. By way of Monthly salary and perquisites:

I. Salary (Consolidated): ₹18,00,000 per month (Rupees Eighteen Lakhs only).

II. Perquisites and allowances:

a) Medical Reimbursement: As per the rules of the Company, Payment/Reimbursement of medical expenses incurred for self and family, subject to ceiling of one month’s salary in a year.

b) Leave Travel Concession: For self and family, to and fro from any place in India, once in a year subject to ceiling of one month’s salary per annum.

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
NOTICE

c) Pension/Superannuation Fund: Company's contribution to Provident Fund, Superannuation Fund or annuity fund in accordance with the Scheme of the Company.
d) Gratuity: As per the rules of the Company, at the rate not exceeding one-half month's salary for each completed year of service.
e) Encashment of Leave: Encashment of leave will be paid as per the rules of the company.
f) Telephone and Car: Telecommunication facilities and car for Company's business purposes.
g) Personal accident insurance: Personal accident insurance premium will be paid as per the rules of the company.

B. By way of percentage on Net Profits of the Company:

In addition to the salary and perquisites stated at ‘A’ above, commission shall be paid at such percentage as the Board may deem fit, not exceeding 1% of the Net Profit of the Company as computed under the provisions of Section 198 of the Companies Act,2013.

However, the aggregate remuneration paid to the appointee under ‘A’ & ‘B’ above and to all the Executive Directors, put together in any financial year shall not exceed the limits specified in Section 197 of Companies Act, 2013 and other applicable provisions and Rules made thereunder, read with Schedule V of the said Act or any statutory modification(s) or re-enactment(s) thereof, for the time being in force.

RESOLVED FURTHER THAT if the company has no profit in any financial year, Dr. S P Vasireddi (DIN: 00242288) as Executive Chairman be paid such remuneration as minimum remuneration mentioned at ‘A’ as it is permitted under Schedule V and other applicable provisions of the Companies Act, 2013 read with applicable provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

RESOLVED FURTHER THAT the Board of Directors of the company (hereinafter referred to as the Board, which term shall be deemed to include any committee whether called Nomination and Remuneration Committee or such other name which may exercise its powers including the powers conferred by this resolution) be and is hereby authorized to vary, alter or modify the scope, components and terms and conditions of the above stated remuneration including to increase /decrease as they may deem fit, within the permissible provisions of the Act and rules made thereunder, including any statutory modification(s) or re-enactment(s) thereof for the time being in force.

RESOLVED FURTHER THAT the Directorship Dr. S P Vasireddi (DIN: 00242288) as Executive Chairman shall be subject to retirement by rotation during his tenure as Executive Chairman and further, he is not eligible to draw sitting fee for any Board / Committee Meetings.

RESOLVED FURTHER THAT the Executive Directors and / or Company Secretary of the Company be and are hereby severally authorized to do all such acts, deeds, matters and things as may be considered necessary, desirable or expedient for the purpose of giving effect to this resolution."

By Order of the Board
For Vimta Labs Limited

Place: Hyderabad
Date: 06.05.2026

Sujani Vasireddi
Company Secretary

EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013

A. Item No.4: Ratification of remuneration of cost auditors for financial year ended 31st March 2025

and

Item No.5: Ratification of remuneration of cost auditors for financial year ended 31st March 2026

The Company is maintaining cost records pursuant to the provisions of Section 148(1) of the Companies Act, 2013 and is required to have such records audited in accordance with Section 148(2) of the Act read with the rules made thereunder.

The Board of Directors of the Company, at its meeting held on 17th July 2025, took note of the change in constitution of M/s Lavanya and Associates, Cost Auditors, from a proprietorship firm to a Limited Liability Partnership, namely M/s Lavanya and Associates LLP, and treated the same as a casual vacancy. Based on the recommendation of the Audit Committee, the Board approved the appointment of M/s Lavanya and Associates LLP for two financial years, i.e., FY 2024-25 and FY 2025-26, at a remuneration of ₹50,000/- (Rupees Fifty Thousand only) plus applicable GST per financial year.

In pursuance of Rule 14(a)(ii) of the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditors as approved by the Board of Directors is required to be ratified by the Members of the Company. Accordingly, the above two resolutions (in point no.4 and 5) are placed before the Members for ratification. The Company has evaluated the performance track record, industry experience, past performance, and quality of services rendered by the Cost Auditors. Further, the proposed remuneration has been assessed having regard to relevant industry benchmarks and prevailing market standards applicable to companies of similar size and operational complexity.

None of the Directors or Key Managerial Personnel of the Company or their relatives is, in any way, concerned or

36th Annual Report, 2025 - 26

NOTICE

interested, financially or otherwise, in the resolutions. The Board recommends the Ordinary Resolutions for approval of the Members.

B. Item No.6: Reappointment of Dr. S P Vasireddi (DIN: 00242288) as Executive Chairman of the Company

Dr. S P Vasireddi, Founder of the Company, served as Chairman & Managing Director until 13th July 2013. Thereafter, he served as Executive Chairman upto 30th June 2018, and as Non-Executive Chairman from 1st July 2018 to 30th June 2023, following which he resumed the position of Executive Chairman. He has been associated with the Company since its inception and has played a pivotal role in its growth and development over the past four decades.

In view of his vast experience and continued guidance to the management, the Board of Directors at their meeting held on 06th May 2026, based on the recommendation of the Nomination and Remuneration Committee and on approval of the Audit Committee at their respective meeting held on 06th May 2026, considered it desirable to re-appoint Dr. S P Vasireddi as Executive Chairman of the Company for a term of five (5) years w.e.f., 01st July 2026, to 30th June 2031 i.e., upon completion of his current tenure as Executive Chairman.

Dr. S P Vasireddi has over 48 years of rich and varied experience in the industry and holds a Ph.D. in Chemistry and Honorary D.Sc. (Doctor of Science). Under his leadership and guidance, the Company has achieved significant growth and established a strong presence in its field. Considering his extensive industry experience, deep understanding of the Company's business and his valuable strategic guidance to the management, the Nomination and Remuneration Committee and the Board of Directors have evaluated his performance and are of the view that his continued association as Executive Chairman would be beneficial to the Company. The Board believes that his leadership, vision and mentorship will continue to provide valuable guidance in strengthening the Company's governance framework and contributing to its long-term growth and stability. Accordingly, the Nomination and Remuneration Committee and the Board of Directors have recommended his continuation on the Board.

Dr. S P Vasireddi, as Executive Chairman, is responsible for providing strategic leadership to the Company and the Board. His role includes setting the long-term vision and short-term business plans, formulating growth strategies, and guiding overall development of the Company's business. He will lead the Board in effective governance, provide mentorship and direction to the management team, and ensure alignment of business objectives with the Company's strategic goals. He shall also oversee key policy decisions, support performance monitoring, and contribute to strengthening the Company's governance framework and sustainable growth initiatives. Considering his extensive experience of over Five decades in the

industry, deep understanding of the Company's operations, and his continued association since inception, Dr. Vasireddi is well suited for the position of Executive Chairman. His proven leadership, strategic vision, and consistent guidance to the management have been instrumental in the Company's growth and stability. The Board is of the view that his continued leadership will be beneficial in driving the Company's long-term objectives and sustaining its governance standards.

Dr. S P Vasireddi has attained the age of 77 years and hence as per the provisions of Section 196(3)(a) of the Companies Act,2013, his re-appointment and continuation as Executive Chairman requires approval of the members of the Company by way of a special resolution. Further, as the proposed remuneration to the appointee together with the remuneration to the other Executive Directors who are promoters or members of the promoter group, in aggregate, exceeds 5% of the net profit of the company, approval of Members is sought by way of Special Resolution as required under Regulation 17 (6)(e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015.

The Board of Directors, after due consideration of the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in recognition of the invaluable contributions, leadership, and continued guidance of Dr. S P Vasireddi, recommends the aforesaid resolution for approval of the Members as a Special Resolution.

Brief profile of Dr. S P Vasireddi as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of the Annexure to this Notice.

Dr. S P Vasireddi holds 5,197,050 equity shares in the Company. Ms. Harita Vasireddi, being his relative, may be deemed to be interested in the resolution. Save and except for the above, none of the other Directors, Key Managerial Personnel of the Company and their relatives are concerned or interested, financially or otherwise, in the resolution.

Dr. S P Vasireddi has given his consent to continue as Director of the Company and has confirmed that he is not disqualified from being appointed / continuing as a Director in terms of Section 164 of the Companies Act, 2013.

The Board recommends the Special Resolution set out in the accompanying Notice for approval of the Members.

By Order of the Board
For Vimta Labs Limited

Place: Hyderabad
Date: 06.05.2026

Sujani Vasireddi
Company Secretary

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
NOTICE

ANNEXURE TO THE NOTICE FOR AGM

Details of Directors seeking appointment/re-appointment/ fixing the remuneration at the forthcoming Annual General Meeting to be held on 25th June 2026 under Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as per SS-2 issued by ICSI.

Particulars	Item No.3 of Notice	Item No. 6 of Notice
Name	Mr. Harriman Vungal	Dr. S P Vasireddi
DIN	00242621	00242288
Date of first Appointment	16.11.1990	16.11.1990
Designation	Executive Director – Operations	Executive Chairman
Date of Birth	01.10.1951	01.07.1948
Nationality	Indian	Indian
Educational Qualification	D. Tech (Toronto)	Ph.D in Chemistry
Brief Resume & Nature Expertise in specific functional Areas & Experience	Mr. Harriman Vungal has rich and varied experience in the industry and is one of the promoter Directors of the company and has been its Executive Director since inception of the company. The Company has achieved remarkable growth under his leadership, management and guidance and his continued services will lead the Company to achieve new heights.	Dr. S P Vasireddi, Founder of the Company, served as Chairman & Managing Director until 13th July 2013. Thereafter, he served as Executive Chairman upto 30th June 2018, and as Non-Executive Chairman from 01st July 2018 to 30th June 2023, following which he resumed the position of Executive Chairman. He has been associated with the Company since its inception and has played a pivotal role in its growth and development over the past four decades.

Given his rich knowledge and experience he is/was been nominated as a member on the Advisory/ Governing Boards of several apex scientific bodies of the country. His present/past associations include:
• Member of Central Advisory Committee – Food Safety & Standards Authority of India (FSSAI).
• Member of the Governing Board of NABL.
• Chairperson – NABL, Risk Management Committee.

He has been instrumental in setting up a centre of excellence VIMTA-UNIDO South Cooperation Training Centre.

Key Skills and Areas of Expertise - Dr. S P Vasireddi has over five decades of industry experience with expertise in strategic leadership, business development, and corporate governance, contributing to the Company’s sustained growth and long-term objectives. |

36th Annual Report, 2025 - 26

NOTICE

Particulars	Item No.3 of Notice	Item No. 6 of Notice
Terms and conditions of appointment, details of last salary drawn and remuneration sought to be paid	Liable to retire by rotation.
Terms and conditions as approved by the shareholders during his appointment on 26^{th} March 2024 (by way of postal ballot) and revision of remuneration on 06^{th} June 2025 (at the 35^{th} Annual General Meeting)
Last Drawn Remuneration (Salary plus Commission) financial year ended 31^{st} March 2026: ₹ 21.28 million	Liable to retire by rotation.
The Proposed Remuneration is explained in the resolution no.6 of the notice, the brief detail of proposed remuneration is Salary (Consolidated): ₹18,00,000/- per month (Rupees Eighteen Lakhs only), plus commission not exceeding 1% of the net profits of the Company, subject to the limits specified in the said resolution.
Last Drawn Remuneration (Salary plus Commission) financial year ended 31^{st} March 2026: ₹ 24.16 million
Listed entities from which the person has resigned in the past three years	Not Applicable
Number of meetings of the Board attended during the year	4	4
Disclosure of relationship between directors inter-se, Manager and other KMPs of the Company	Nil	Harita Vasireddi – Managing Director is daughter.
Shareholding as on 31.03.2026	30,85,636	51,97,050
Directorships	He is a Director on the Board of Vimta Labs Limited and Designated Partners of the following two (2) – Limited Liability Partnership
• Vungal Properties LLP
• Saayala Designs LLP	Nil
He is a Director on the Board of Vimta Labs Limited and is not a member of any other committee except the one mentioned below.
On 06^{th} May 2026 he is appointed as Chairman of Corporate Social Responsibility Committee.
Board (Listed entities excluding Vimta Labs Limited)	Nil
Committees (Listed entities excluding Vimta Labs Limited)	Nil

NOTES:

The Ministry of Corporate Affairs ("MCA"), vide its General Circular No. 03/2025 dated 22.09.2025 (the "MCA Circular"), has, inter alia, extended the timeline for companies to conduct their Annual General Meetings ("AGM") and Extraordinary General Meetings ("EGM") through Video Conferencing ("VC") or Other Audio-Visual Means ("OAVM") till further orders by MCA, in accordance with the provisions of the Companies Act, 2013 and the rules made thereunder. In compliance with the aforesaid MCA Circular and earlier circulars issued in this regard, the AGM of the Members of the Company is being convened and conducted through VC/OAVM. The registered office of the Company shall be deemed to be the venue of the AGM i.e., at Plot No.141/2 & 142, IDA, Phase-II Cherlapally, Hyderabad -500051, Telangana.
As the AGM will be conducted through VC/OAVM, the facility for appointment of Proxy by the Members is not available for this AGM and hence the Proxy Form and Attendance Slip including Route Map are not annexed to this Notice.
The attendance of the Members attending the AGM through VC/OAVM will be counted for the purpose of ascertaining the quorum under Section 103 of the Companies Act,2013.

36^{\mathrm{th}} Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
NOTICE

Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 (as amended), and the MCA Circulars, the Company is providing facility of remote e-voting to its Members in respect of the business to be transacted at the AGM. For this purpose, the Company has entered into an agreement with Central Depository Services (India) Limited ('CDSL') for facilitating voting through electronic means, as the authorized agency. The facility of casting votes by a member using remote e-voting system as well as voting during the AGM will be provided by CDSL.
The Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 in respect of Special Business proposed to be transacted in the AGM is annexed to this Notice.
The relevant details as required by Regulations 36 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 and Secretarial Standards on General Meetings (SS-2) issued by the Institute of Company Secretaries of India, in respect of Directors seeking re-appointment at this AGM is annexed to this Notice.
The Company has appointed Ms. Razia Shaik, Partner or failing her Mr. Mohit Kumar Goyal, Partner, M/s D Hanumanta Raju & Co, Company Secretaries, Hyderabad, as the Scrutinizer to the e-voting process and voting at the AGM in a fair and transparent manner and they have communicated their willingness to be appointed and will be available for the same purpose.
All the documents referred to in this Notice and the Statutory Registers are available for inspection by the members. Those who desire to inspect the same at the registered office of the Company may write an email to [email protected].
As per Regulation 40 of the Listing Regulations, as amended, securities of listed companies are transferrable only in dematerialised form with effect from 01st April 2019, except in case of requests received for transmission or transposition of securities. In view of this and to eliminate all risks associated with physical shares and for ease of portfolio management, Members holding shares in physical form are requested to consider converting their holdings to dematerialised form. Members may contact the Company's Registrar and Transfer Agent, CIL Securities Limited (RTA) at [email protected] for assistance in this regard.
The Securities and Exchange Board of India ("SEBI"), vide its Circular No. HO/38/13/11(2)2026-MIRSD-PoD/I/3750/2026 dated 30 January 2026 (the "SEBI Circular"), has, inter alia, provided a special window for transfer and dematerialisation of physical equity shares, pursuant to which shareholders are hereby informed that such window shall remain open from 05th February 2026 to 04th February 2027 for transfer and dematerialisation of physical equity shares which were sold or purchased prior to 01st April 2019, including cases where transfer requests were earlier rejected, and that such transfers shall be effected only in dematerialised form and shall be subject to a lock-in period of one year from the date of dematerialisation; accordingly, eligible shareholders holding physical share certificates are advised to contact the Company or its Registrar and Transfer Agent for detailed procedures and documentation required for availing the aforesaid facility.
Members are requested to intimate changes, if any, pertaining to their name, postal address, email address, telephone/mobile numbers, Permanent Account Number (PAN), mandates, nominations, power of attorney, bank details such as, name of the bank and branch details, bank account number, MICR code, IFSC code, etc., to their DPs in case the shares are held by them in electronic form and to CIL Securities Limited in case the shares are held by them in physical form.
In case of joint holders, the Member whose name appears as the first holder in the order of names as per the Register of Members of the Company will be entitled to vote at the AGM.
The Annual Report of the Company for the financial year ended 31st March 2026, along with the Notice of the AGM, details of the process and manner of remote e-voting, is being sent by electronic mode to those Members whose email addresses are registered with the Company's Registrar and Share Transfer Agent, CIL Securities Limited ("RTA"), or with their respective Depository Participant ("DP"); further, in compliance with Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a letter specifying the web link, along with the exact path to access the complete Annual Report, is being sent to those shareholders who have not registered their email addresses with the Company's RTA or DP; the Annual Report shall also be available on the website of the Company and on the websites of the Stock Exchanges, namely, BSE Limited and National Stock Exchange of India Limited, at www.bseindia.com and www.nseindia.com, respectively.
Members seeking any information with regard to the accounts or any matter to be placed at the AGM, are requested to write to the Company on or before 18th June 2026 through email on [email protected]. The same will be replied by the Company suitably.
The dividend will be paid to all the shareholders whose names appear in the register of members as on 18th June 2026, being the record date fixed for this purpose.

36th Annual Report, 2025 - 26

NOTICE

16. Dividend Payment in Electronic Mode

Pursuant to Regulation 12 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Schedule I thereto, shareholders are requested to note that the Company shall make payment of dividend amounts only through electronic modes approved by the Reserve Bank of India, including electronic clearing services (local, regional or national), direct credit, real time gross settlement or national electronic funds transfer; further, shareholders holding securities in physical form whose folios do not have complete PAN, nomination details, contact details, bank account details and specimen signature shall be eligible to receive such payments only upon updating the requisite KYC details, and accordingly, such shareholders are advised to update their folio(s) at the earliest to ensure seamless receipt of dividend and other entitlements Members are advised to update their folio(s) / Demat Account at the earliest to ensure seamless receipt of dividend and other entitlements.

Shareholders may note that the Income Tax Act, 1961 (Act), as amended by the Finance Act, 2020, mandates that dividends paid or distributed by Company for ₹ 10,000/- or more shall be taxable in the hands of shareholders and the Company is required to deduct tax at source (TDS) from dividend paid to shareholders in accordance with the provisions of the Act.

The prescribed rates of TDS for various categories and the procedure for declarations are as follows:

i. Resident Shareholder:

Particulars	TDS Rate
With PAN	10% or as may be notified by the Government of India
Without/Invalid PAN	20% or as may be notified by the Government of India
Submission of declaration in Form 15G or Form 15H	Nil

For the above purpose, the shareholders are requested to update their PAN with the Company/ RTA (in case of shares held in physical mode) and depositary participants (in case of shares held in demat mode) to get the benefit of Lower TDS rate and to enable the Company to provide the TDS Certificates to the shareholders.

ii. Non-Resident Shareholder:

TDS Rate @ 20% plus applicable surcharge and Cess (or) applicable Tax Treaty Rate under the Double Tax Avoidance Treaty (DTAA) between India and their country of residence (whichever is lower), subject to the fulfilment of the following requirements: The

Non-resident shareholders are requested to provide the following documents to avail the tax treaty benefits by sending an email to [email protected] with subject line: (unit- VIMTA LABS LIMITED) on or before 18th June 2026.

Declaration for “No Permanent Establishment” in India;
Beneficial Ownership Declaration;
Tax Residency Certificate (TRC) for FY 2025-26.
Form 10F and
Copy of Indian PAN (if available)

18. IEPF Related Information:

The unclaimed dividend on equity shares for the financial year ended 31st March 2019 will be transferred, on or after 31st August 2026, to the Investor Education and Protection Fund (IEPF) upon the expiry of seven consecutive years from the date of transfer to the Unpaid Dividend Account, pursuant to Section 124 of the Companies Act, 2013. Members who have not encashed their dividend warrants for the said financial year or subsequent years, or who have not updated their KYC details (including bank details and PAN linked with Aadhaar, as applicable), are requested to do so by contacting the Company or its Registrar and Share Transfer Agents ("RTA") to claim the unclaimed dividend. The forms related to KYC updation are available on the website of the Company at https://vimta.com/grievance-cell/

Pursuant to the provisions of Section 124(6) of the Companies Act, 2013, read with Rule 6 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended ("IEPF Rules"), all shares in respect of which dividends have not been paid or claimed for seven consecutive years or more (referred to as "relevant shares") have been transferred by the Company to the IEPF from time to time, as prescribed under the Act and the applicable rules. A statement containing the relevant details is available on the Company's website: https://vimta.com/dividend-related/

Members are requested to note that the dividend remaining unclaimed for seven consecutive years from the date of transfer to the Company's Unpaid Dividend Account shall be transferred to the Investor Education and Protection Fund (IEPF). In addition, all equity shares in respect of which dividend has not been paid or claimed for seven consecutive years or more shall be transferred by the Company to demat account of the IEPF authority within a period of thirty days of such equity shares becoming due to be transferred to the IEPF. In the event of transfer of equity shares and the unclaimed dividends to IEPF, Members are entitled to claim the same from

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
NOTICE

IEPF authority by submitting an online application in the prescribed Form IEPF-5 available on the website www.iepf.gov.in and by sending a physical copy of the same duly signed to the Company along with the requisite documents enumerated in Form IEPF-5. Members may file only one consolidated claim in a financial year as per the IEPF rules.

INSTRUCTIONS FOR E-VOTING AND JOINING THE AGM ARE AS FOLLOWS:

19. INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE AGM THROUGH VC/OAVM:

i. The general meeting of the Company shall be conducted in accordance with the guidelines issued by the Ministry of Corporate Affairs ("MCA"), inter alia, vide General Circular No. 03/2025 dated 22nd September 2025 and other circulars issued in this regard (collectively referred to as "MCA Circulars"), which have extended the timeline for holding Annual General Meetings ("AGM") and Extraordinary General Meetings ("EGM") through Video Conferencing ("VC") or Other Audio-Visual Means ("OAVM") till further orders. Accordingly, the forthcoming AGM will be held through VC/OAVM, and the Members may attend and participate in the AGM through such means.

ii. Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 (as amended), and other applicable circulars issued by Ministry of Corporate Affairs (MCA), the Company is providing facility of remote e-voting to its Members in respect of the business to be transacted at the AGM. For this purpose, the Company has entered into an agreement with Central Depository Services (India) Limited (CDSL) for facilitating voting through electronic means, as the authorized e-Voting's agency. The facility of casting votes by a member using remote e-voting as well as the e-voting system on the date of the AGM will be provided by CDSL.

iii. The Members may join the AGM in the VC/OAVM mode 15 minutes before and after the scheduled time of the commencement of the Meeting by following the procedure mentioned in the Notice. The facility of participation at the AGM through VC/OAVM would be made available to at least 1000 members on first come first served basis. This does not include large Shareholders (Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors etc., who are allowed to attend the AGM without restriction on account of first come first served basis.

iv. The attendance of the Members attending the AGM through VC/OAVM will be counted for the purpose of ascertaining the quorum under Section 103 of the Companies Act, 2013.

v. Pursuant to MCA Circular No. 14/2020 dated April 08, 2020, the facility to appoint proxy to attend and cast vote for the members is not available for this AGM. However, in pursuance of Section 112 and Section 113 of the Companies Act, 2013, representatives of the members such as the President of India or the Governor of a State or body corporate can attend the AGM through VC/OAVM and cast their votes through e-voting.

THE INSTRUCTIONS TO SHAREHOLDERS FOR E-VOTING AND JOINING VIRTUAL MEETINGS ARE AS UNDER:

Option 1: Access through Depositories CDSL/NSDL e-Voting system in case of individual shareholders holding shares in demat mode.

Option 2: Access through CDSL e-Voting system in case of shareholders holding shares in physical mode and non-individual shareholders in demat mode.

i. The voting period begins on 22nd June 2026; 09:00 A.M. and ends on 24th June 2026; at 05:00 P.M. During this period shareholders of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date 18th June 2026 may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter.

ii. Shareholders who have already voted prior to the meeting date would not be entitled to vote at the meeting venue.

iii. Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 09th December 2020, under Regulation 44 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, listed entities are required to provide remote e-voting facility to its shareholders, in respect of all shareholders' resolutions. However, it has been observed that the participation by the public non-institutional shareholders/retail shareholders is at a negligible level.

Currently, there are multiple e-voting service providers (ESPs) providing e-voting facility to listed entities in India. This necessitates registration on various ESPs and maintenance of multiple user IDs and passwords by the shareholders.

In order to increase the efficiency of the voting process, pursuant to a public consultation, it has been decided to enable e-voting to all the demat account holders, by way of a single login credential, through their demat accounts/ websites of Depositories/Depository Participants. Demat account holders would be able to cast their vote without having to register again with the ESPs, thereby, not only facilitating seamless authentication but also enhancing ease and convenience of participating in e-voting process.

36th Annual Report, 2025 - 26

NOTICE

iv. Option 1: Access through Depositories CDSL/NSDL e-Voting system in case of individual shareholders holding shares in demat mode.

a) In terms of SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 09th December 2020, on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are advised to update their mobile number and email ID in their demat accounts in order to access e-Voting facility.

Pursuant to abovesaid SEBI Circular, Login method for e-Voting and joining virtual meetings for Individual shareholders holding securities in Demat mode CDSL/NSDL is given below:

Type of shareholders	Login Method
Individual Shareholders holding securities in Demat mode with CDSL Depository	1) Users who have opted for CDSL Easi/Easiest facility, may login through their existing User ID and password. Option will be made available to reach e-Voting page without any further authentication. The users to login to Easi/Easiest are requested to visit CDSL website www.cdslindia.com and click on login icon & New System Myeasi Tab.
2) After successful login the Easi/Easiest user will be able to see the e-Voting option for eligible companies where the e-voting is in progress as per the information provided by company. On clicking the e-voting option, the user will be able to see e-Voting page of the e-Voting service provider for casting their vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. Additionally, there are also links provided to access the system of all e-Voting Service Providers, so that the user may visit the e-Voting service providers’ websites directly.
Type of shareholders	Login Method
---	---
	3) If the user is not registered for Easi/Easiest, option to register is available at CDSL website www.cdslindia.com. To login click on login & New System Myeasi Tab and then click on registration option.
4) Alternatively, the user may directly access e-Voting page by providing Demat Account Number and PAN No. from a e-Voting link available on www.cdslindia.com home page. The system will authenticate the user by sending OTP on registered Mobile & Email as recorded in the Demat Account. After successful authentication, user will be able to see the e-Voting option where the e-Voting is in progress and also able to directly access the system of all e-Voting Service Providers.
Individual Shareholders holding securities in demat mode with NSDL Depository	1) If you are already registered for NSDL IDeAS facility, please visit the e-Services website of NSDL. Open web browser by typing the following URL: https://eservices.nsdl.com either on a Personal Computer or on a mobile. Once the home page of e-Services is launched, click on the “Beneficial Owner” icon under “Login” which is available under ‘IDeAS’ section. A new screen will open. You will have to enter your User ID and Password. After successful authentication, you will be able to see e-Voting services. Click on “Access to e-Voting” under e-Voting services and you will be able to see e-Voting page. Click on company name or e-Voting service provider name and you will be re-directed to e-Voting service provider website for casting your vote during the remote e-Voting period or for joining virtual meeting & voting during the meeting.

36th Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
NOTICE

Type of shareholders	Login Method
	2) If the user is not registered for IDeAS e-Services, option to register is available at https://eservices.nsdl.com. Select “Register Online for IDeAS “Portal or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp 3) Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/ Member’ section. A new screen will open. You will have to enter your User ID (i.e., your sixteen-digit demat account number held with NSDL), Password/ OTP and a Verification Code as shown on the screen. After successful authentication, you will be redirected to NSDL Depository site wherein you can see e-Voting page. Click on company name or e-Voting service provider name and you will be redirected to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting
Type of shareholders	Login Method
---	---
Individual Shareholders (holding securities in demat mode) login through their Depository Participants (DP)	You may also login using the login credentials of your demat account through your Depository Participant registered with NSDL/CDSL for e-Voting facility. After Successful login, you will be able to see e-Voting option. Once you click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can see e-Voting feature. Click on company name or e-Voting service provider name and you will be redirected to e-Voting service provider website for casting your vote during the remote e-Voting period or for joining virtual meeting & voting during the meeting.

Important note: Members who are unable to retrieve User ID/Password are advised to use Forget User ID and Forget Password option available at abovementioned websites.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e., CDSL and NSDL

Login type	Helpdesk details
Individual Shareholders holding securities in Demat mode with CDSL	Members facing any technical issue in login may contact CDSL helpdesk by sending a request at [email protected] or contact at toll free no. 1800 22 55 33
Individual Shareholders holding securities in Demat mode with NSDL	Members facing any technical issue in login may contact NSDL helpdesk by sending a request at [email protected] or call at toll free nos.: 1800 1020 990 and 1800 22 44 30

36^{\mathrm{th}} Annual Report, 2025 - 26

NOTICE

v. Option 2: Access through CDSL e-Voting system in case of shareholders holding shares in physical mode and non-individual shareholders in demat mode.

a) Login method for e-Voting and joining virtual meetings for Physical shareholders and shareholders other than individual holding in Demat form.

1) The shareholders should log on to the e-voting website www.evotingindia.com.
2) Click on "Shareholders" module.
3) Now enter their User ID

a) For CDSL: 16 digits beneficiary ID
b) For NSDL: 8 Character DP ID followed by 8 Digits Client ID
c) Shareholders holding shares in Physical Form should enter Folio Number registered with the Company.

4) Next enter the Image Verification as displayed and Click on Login.
5) If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier e-voting of any company, then your existing password is to be used.
6) If you are a first-time user follow the steps given below:

	For Physical shareholders and other than individual shareholders holding shares in Demat.
PAN	Enter your 10-digit alpha-numeric *PAN issued by Income Tax Department (Applicable for both demat shareholders as well as physical shareholders). • Shareholders who have not updated their PAN with the Company/Depository Participant are requested to use the sequence number sent by Company/RTA or contact Company/RTA.
Dividend Bank Details OR Date of Birth (DOB)	Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in your demat account or in the company records in order to login. • If both the details are not recorded with the depository or company, please enter the member id/folio number in the Dividend Bank details field.

vi. After entering these details appropriately, click on "SUBMIT" tab.
vii. Shareholders holding shares in physical form will then directly reach the Company selection screen. However, shareholders holding shares in demat form will now reach 'Password Creation' menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share their password with any other person and take utmost care to keep their password confidential.
viii. For shareholders holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this Notice.
ix. Click on the EVSN for the relevant on which you choose to vote.
x. On the voting page, you will see "RESOLUTION DESCRIPTION" and against the same the option "YES/NO" for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.
xi. Click on the "RESOLUTIONS FILE LINK" if you wish to view the entire Resolution details.
xii. After selecting the resolution, you have decided to vote on, click on "SUBMIT". A confirmation box will be displayed. If you wish to confirm your vote, click on "OK", else to change your vote, click on "CANCEL" and accordingly modify your vote.
xiii. Once you "CONFIRM" your vote on the resolution, you will not be allowed to modify your vote.
xiv. You may also take a print of the votes cast by clicking on "Click here to print" option on the Voting page.
xv. If a demat account holder has forgotten the login password then Enter the User ID and the image verification code and click on Forgot Password & enter the details as prompted by the system.
xvi. There is also an optional provision to upload Board Resolution/Power of Attorney if any uploaded, which will be made available to scrutinizer for verification.
xvii. Additional Facility for Non - Individual Shareholders and Custodians -For Remote Voting only.

Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on to www.evotingindia.com and register themselves in the "Corporates" module.

36^{\mathrm{th}}
Annual Report, 2025 - 26

Vimta
Driven by Quality. Inspired by Science.
NOTICE

A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to [email protected]
After receiving the login details a Compliance User should be created using the admin login and password. The Compliance User would be able to link the account(s) for which they wish to vote on.
The list of accounts linked in the login will be mapped automatically & can be delinked in case of any wrong mapping.
It is Mandatory that a scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, be uploaded in PDF format in the system for the scrutinizer to verify the same.
Alternatively Non Individual shareholders are required mandatorily to send the relevant Board Resolution/ Authority letter etc., together with attested specimen signature of the duly authorized signatory who are authorized to vote, to the Scrutinizer and to the Company at the email address viz; [email protected] , if they have voted from individual tab & have not uploaded in the CDSL e-voting system for the scrutinizer to verify the same.

20. INSTRUCTIONS FOR SHAREHOLDERS ATTENDING THE AGM THROUGH VC/OAVM & E-VOTING DURING MEETING ARE AS UNDER:

i. The procedure for attending meeting & e-Voting on the day of the AGM is same as the instructions mentioned above for e-voting.
ii. The link for VC/OAVM to attend meeting will be available where the EVSN of Company will be displayed after successful login as per the instructions mentioned above for e-voting.
iii. Shareholders who have voted through remote e-Voting will be eligible to attend the meeting. However, they will not be eligible to vote at the AGM.
iv. Shareholders are encouraged to join the Meeting through Laptops/Tablets or similar devices for better experience.
v. Further shareholders will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.
vi. Please note that Participants Connecting from Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.

vii. Shareholders who would like to express their views/ ask questions during the meeting may register themselves as a speaker by sending their request in advance between 15th June 2026 (09:00 a.m.) to 21st June 2026 (05:00 p.m.) mentioning their name, demat account number/folio number, email id, mobile number at (company email id). The shareholders who do not wish to speak during the AGM but have queries may send their queries during 15th June 2026 (09:00 a.m.) to 21st June 2026 (05:00 p.m.) mentioning their name, demat account number/folio number, email ID, mobile number at (company email ID). These queries will be replied to by the company suitably by email.

Registered speakers are requested to submit their views or questions, subsequent to registration, to the Company's email ID at [email protected]. The Company shall duly consider all such queries; however, to avoid repetition and in view of time constraints, similar queries may be consolidated. The Company shall respond to such consolidated queries and provide an opportunity to the registered speakers to express their views during the Meeting, subject to availability of time.

viii. Those shareholders who have registered themselves as a speaker will only be allowed to express their views/ask questions during the meeting.
ix. Only those shareholders, who are present in the AGM through VC/OAVM facility and have not cast their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system available during the AGM.
x. If any votes are cast by the shareholders through the e-voting facility available during the AGM and if the same shareholders have not participated in the meeting through VC/OAVM facility, then the votes cast by such shareholders may be considered invalid as the facility of e-voting during the meeting is available only to the shareholders attending the meeting.

21. PROCESS FOR THOSE SHAREHOLDERS WHOSE EMAIL/ MOBILE NO. ARE NOT REGISTERED WITH THE COMPANY/ DEPOSITORIES.

i. For Physical shareholders- please provide necessary details like Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self-attested scanned copy of PAN card), AADHAR (self-attested scanned copy of Aadhar Card) by email to Company/RTA email ID.: [email protected] / rta@ cilsecurities.com . The shareholders should use Form ISR-1 for updating any KYC details relating to their folio.

36^{\mathrm{th}}
Annual Report, 2025 - 26

NOTICE

ii. For Demat shareholders - Please update your email ID & mobile no. with your respective Depository Participant (DP)

iii. For Individual Demat shareholders – Please update your email ID & mobile no. with your respective Depository Participant (DP) which is mandatory while e-Voting & joining virtual meetings through Depository.

If you have any queries or issues regarding attending AGM & e-Voting from the CDSL e-Voting System, you may write an email to [email protected] or contact at toll free no. 1800 21 09911.

All grievances connected with the facility for voting by electronic means may be addressed to Mr. Rakesh Dalvi, Sr. Manager, (CDSL, ) Central Depository Services (India) Limited, A Wing, 25th Floor, Marathon Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East), Mumbai - 400013 or send an email to [email protected] or call toll free no. 1800 21 0991.

36th Annual Report, 2025 - 26

Vimta

Driven by Quality. Inspired by Science.

Vimta Labs Limited
CIN: L24110TG1990PLC011977

Registered Office
Plot Nos. 141/2 & 142, IDA Phase II
Cherlapally, Hyderabad - 500 051
Telangana, India.

[email protected]

vimta.com

AI assistant

Vimta Labs Ltd. — Annual Report 2026

61730_rns_2026-06-01_793531c1-2f6a-4120-896f-3b95fd3c578d.pdf

36th

ANNUAL

REPORT

Our Core Values

The Foundation of Our Success

Forward Looking Statements

Website and Social Media Disclosure

Trademarks

Industry and Market Data

Table of Contents

CORPORATE INFORMATION

Board of Directors

Key Managerial Personnel

Auditors

CORPORATE INFORMATION

OUR VISION

OUR CORE VALUES

OUR CREDO

OUR COMPANY (State of the Company's affairs)

PERFORMANCE TREND AT A GLANCE

PERFORMANCE TREND AT A GLANCE

BOARD'S REPORT

1. PERFORMANCE

Statutory impact of new Labour Codes

2. MANAGEMENT DISCUSSION AND ANALYSIS

A. Macro Economy

Global Economy

Outlook

Indian Economy

Outlook

B. Industry Overview

1. Contract Research Organisation

1.1 Global Scenario

Drug Discovery services

Pre-Clinical services

Bioanalytical testing and bioavailability/bioequivalence (BA/BE) and Clinical Trials

Outlook

1.2 Indian Scenario

Outlook

2. Pharmaceutical Analytical Testing

2.1 Global Scenario

2.2 Indian Scenario

3. Testing, Inspection & Certification Market

3.1 Global Scenario

Food and Agricultural Testing Industry

Electrical and Electronics Testing

Outlook

3.2 Indian Scenario

Outlook

Food Testing

Segment and Regional Insights

Outlook

Electrical and Electronics Testing

Outlook

4. Environment Testing Industry

4.1 Global Scenario

Outlook

4.2 Indian Scenario

Outlook

5. Overall Industry Outlook

Global Scenario

Indian Scenario

Risks and Concerns

Competitive Landscape

Global Landscape

India Landscape

Outlook for VIMTA

2.1 OUR STRENGTHS & STRATEGIES

2.2 KEY FINANCIAL RATIOS

2.3 MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS, INCLUDING NUMBER OF PEOPLE EMPLOYED

2.4 INFRASTRUCTURE

2.5 FORAY INTO BIOLOGICS

2.6 RISKS & CONCERNS

3 DIVIDEND

Dividend Distribution Policy

4 TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION & PROTECTION FUND (IEPF)

5 TRANSFER TO RESERVES

Vimta Labs Ltd. Annual Report 2026