Your directors have the pleasure of presenting their 50th Annual Report along with the Audited Financial Statements for the Financial Year Ended 31st March, 2025 (the Financial Year).

In compliance with the provisions of the Companies Act, 2013 ('Act'), and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations') the Company has prepared its financial statements as per Indian Accounting Standards (Ind AS) for the FY 2024-25. The highlights of the financial results of the Company, extracted from the audited financial statements for the FY 2024-25 and previous FY 2023-24, are as under:

In the Financial Year the overall Indian economy performed well, and this positive trend extended to the automotive and Agri-implements sectors in which your Company operates and achieved an increase in revenue, with a growth rate of 23% compared to the previous year.

Resultant to above factors, the Company has achieved highest ever sales volume in the Financial Year 2024-25 and achieved PBT with a 16% jump in margins over previous financial year.

It is important to note that your company's performance in the automotive and agriculture segments is influenced by various factors, including economic growth, new production facilities, monsoon patterns, automation in the agricultural sector, and the purchasing power of buyers. These factors play a significant role in shaping the performance and prospects of your company in these sectors.

For the year under review, the Indian automotive industry (except Two-wheeler) witnessed growth of 3.5% which includes Passenger Vehicle Industry growth of 3.7 % and Commercial Vehicle Industry grew by 2.8% However, your company had shown de-growth of 10 % which includes de-growth in seat mechanisms for passenger vehicle of 11 % and growth of 126 % in seats for commercial vehicle.

For the year under review, the Indian tractor industry had shown growth of 6.7% and your company had also recorded growth of 11.5% by achieving sales volume of 2.16 lakh seats for tractor against previous year volume of 1.93 lakhs, and in case of Agri-implements, sales volume grew to 0.35 lakh units against 0.25 lakh units of previous year resulting into growth of 44%.

The revenue of your company reached Rs. 377.76 Crore against previous year figures of INR 307.51 Crore showing a significant growth of 23% and on the similar growth trend the profit before tax stood at Rs. 7.87 Crore against previous year profit before tax of Rs. 6.78 crores. Profit before depreciation, finance and tax was Rs. 14.47 Crore against previous year figure of Rs. 13.67 Crore, total comprehensive income was Rs. 5.27 Crore in comparison to Rs. 4.84 Crore of previous year which results into earning per share of Rs. 21.99 against previous year figure of Rs. 20.21.

The Board of Directors have recommended the Final Dividend of Rs. 2.5 per share (i.e. 25% of face value of Rs. 10 each) for the financial year ended March 31, 2025, subject to the approval of the members at the ensuing Annual General Meeting. The dividend, if approved by the members of the Company, will be paid within 30 days of the Annual General Meeting. The total cash outflow on account of final dividend for the financial year 2024-25 will be Rs. 1.20 Crore.

Pursuant to the amendments introduced in the Income-tax Act, 1961 vide Finance Act, 2020, w.e.f. April 1, 2020, Dividend Distribution Tax (DDT), stands abolished. Instead, dividend income is now taxable in the hands of shareholders and subject to tax deduction at source (TDS) under the Income-tax Act, 1961.

The Company has not transferred any amount to the general reserve during the period under review. SHARE CAPITAL

The Authorised share capital of the Company during the period under review was Rs. 10,50,00,000/- (Indian Rupees Ten Crores Fifty Lakhs only) against Rs 3,50,00,000/- which has been increased via shareholders approval dated 14th March, 2025 through Postal ballot. The issued and paid-up Share Capital of the Company remained unchanged during the year and stood at Rs. 2,39,77,130 (Indian Rupees Two Crore Thirty Nine Lakh Seventy Seven Thousand One Hundred Thirty only) at the end of the financial year 2024-25.

Persuant to the approval of the shareholders on dated 14th March, 2025 via postal ballot and subsequent approvals from stock exchange i.e. BSE Ltd, the company has issued bonus shares on 4th April, 2025 in the ratio of 1:1 i.e one (1) equity share of face value of Rs. 10/- each for every one (1) existing equity share of face value of Rs. 10/-. Accordingly, 23,97,713 equity shares got allotted to the eligible share holders on the record date (i.e April 4, 2025) as Bonus Equity Shares. Furtherance to this, issued and paid-up Equity Share Capital of the company would get increased to Rs 479.54 Lakhs from Rs 239.77 Lakhs by capitalizing General Reserve.

The Company has not accepted any deposit and as such, no amount of principal or interest was outstanding at the end of the financial year.

In today's dynamic business environment, the foundation of our Industrial and employee relation framework is rests on the strong pillars of Employee Centricity, building and sustaining a positive work culture characterized by innovation, productivity, and competitiveness , backed with strong focus on fostering employee wellbeing, capability building to ensure a future ready workforce to build a performance driven organization. We ensure strong employee relations which is not just limited to managing personnel issues but it fosters a culture where employees feel valued, supported, and motivated to contribute to the company's success.

Employee centricity is one of the cornerstones of our employee relations. Our efforts are directed towards prioritizing the needs and aspirations of employees while aligning them with organizational goals. By understanding and addressing the concerns, aspirations, and motivations of the workforce, we have created an environment where employees feel valued. This involves providing clear communication channels, listening to employee feedback, and implementing policies that reflect their needs.

Creating a positive work culture is another area of focus to maintain high employee morale and productivity. We believe in fostering a culture of respect, collaboration, and support. This is being achieved by promoting teamwork, recognizing and rewarding employee contributions, and ensuring a safe and inclusive workplace. Our leadership team also play a pivotal role here, both our managers and supervisors always lead by example, demonstrating behaviours that promote positivity and mutual respect.

Employee well-being especially having access to health care benefits, wellness programs, and a safe working environment are fundamental aspects of our employee relation framework. This includes both physical and mental health. All our HR policies are designed and periodically updated in line with the idea of providing work life balance which improves productivity and also reduces absenteeism and turnover rates.

Investing in capability building is vital for our company to stay competitive and be future ready. As the industry evolves, so too must the skills of its workforce.

In line with our objective of capability building and developing a future-ready workforce, we have implemented numerous training and engagement programs throughout the year. These initiatives encompass a wide range of areas, including behavioural programs for enhancing team and individual effectiveness, safety and environmental training, quality tools skill building programs, continuous improvement practices, result orientation, relationship management, and decision-making skills. Our proactive and employee-centric shop floor practices have also thrived as we offer training programs, workshops, and opportunities for continuous learning which help employees to enhance their skills and stay updated with the latest technological advancements. This not only benefits the company by having a skilled workforce but also empowers employees, making them feel more confident and valued in their roles.

To be specific on building a Future-Ready Workforce and Teams, we have embarked on the journey of Talent management and rolling out the Competency Framework for our company.

The competency framework will help us to identify right talent which can be groomed and prepared for future talent needs and succession planning. Coupled with it, encouraging a culture of continuous learning, adaptability, and innovation will ensure that our company remains competitive in the long term.

Leadership effectiveness is a key driver of a performance-oriented organization. Our leadership team is perfectly aligned to achieving organizational goals. We believe in setting clear goals, providing regular feedback, and fostering an environment where performance is recognized and rewarded. Being a performance-driven culture we encourage employees to take ownership of their work, strive for excellence, and contribute to the company's overall success. Effective leadership ensures that the organization's vision is communicated clearly, and that employees are aligned with the company's goals.

As we move forward into Financial Year 2025-26, we remain dedicated to nurturing a positive industrial relations environment, continuously improving our work culture, and upholding the principles of employee- centricity and proactive practices throughout our organization.

Our Company remained committed towards excellence in Safety, Occupational Health, and Environment in the year 2024-25.

Safety, Occupational Health, and Environment are critical pillars in maintaining a safe and productive workplace. While we have a well-established Safety, Occupational, and Environmental Policy that prioritizes the safety of our employees, plant, equipment, and the general public and ensures compliance with all relevant statutory rules and regulations on a regular basis. Our employees are also proactive in adhering to safety protocols, reporting hazards, and participating in safety training to mitigate risks. We believe in promoting voluntary individual efforts at the work level in fostering a safety-conscious culture.

Our Organizational commitment to Safety, Occupational Health, and Environment is paramount and is equally vital, with regular audits and strict compliance ensuring adherence to industry standards and legal requirements we identify potential risks and implement corrective actions promptly as per guidelines.

Moreover, our focus on proactive and preventive measures is essential. We organize the: "World Environment Day" and T ree Plantation each year as our commitment to green workplace and service to the mother Earth. As an organization we invest heavily in continuous training, safety drills, and the implementation of advanced safety technologies to anticipate and prevent accidents.

We organize National Safety Week in our organization to foster employees commitment for safety and "ZERO ACCIDENT" during the year. Additionally, we conduct statutory safety audits of our facilities as required by law and promote eco-friendly activities. As part of our ongoing commitment to improving the wellbeing of our employees, we regularly organize Medical Check-ups, encompassing both curative and preventive measures, to keep a strong check on any potential risk of Occupation health challenges. Furthermore, we educate our employees on Industrial Hygiene in the workplace, reinforcing our dedication to their safety and health. We are certified for Environment Health and Safety Management System as ISO 14001:2015 and ISO 45001:2018.

By integrating these efforts into the company culture, both at the individual and organizational levels, we have created a safe, healthy, and environmentally responsible workplace.

In the year 2024-25, your Company maintained its steadfast commitment to environmental, social, and governance parameters. We strongly believe in sustainability, which we define as "Building enduring business by rejuvenating the environment and enabling stakeholders to grow." Throughout the year under review, we took several impactful actions across all aspects of our operations, focusing on three key pillars: Environment, Manpower, and Margins.

Under the pillar of Environment, we implemented a range of initiatives to minimize our ecological footprint and contribute to environmental preservation. This included adopting energy-efficient practices, reducing waste generation, and promoting the use of renewable resources. We actively pursued environmentally friendly alternatives and encouraged sustainable practices throughout our value chain.

In this respect we have increased the plantation of new trees in the campus, introduced the use of the LPG in our existing manufacturing process, in replacement to the HSD, which has substantially reduced and controlled the air pollution.

In terms of manpower, we prioritized the well-being and development of our employees. We continued to invest in their training and skill enhancement, fostering a culture of learning and growth. Additionally, we emphasized diversity and inclusion, ensuring equal opportunities for all individuals within our organization. We also extended our efforts beyond our workforce by engaging with communities and supporting social initiatives.

The third pillar, Margins, underscores our commitment to responsible financial management. We implemented strategies to optimize our operations, improve cost-efficiency, and enhance profitability while maintaining ethical business practices. We believe that sustainable financial performance is crucial for long-term growth and delivering value to our stakeholders.

By focusing on these three pillars - Environment, Manpower, and Margins - we aim to create a positive impact and contribute to a more sustainable future. We remain dedicated to upholding these principles and continually seek opportunities to further enhance our ESG performance in the years ahead.

The Company approved the continuation of Mr. Jamil Ahmad (DIN: 07171910) as a Non-Executive Non-Independent Director of the Company, beyond the age of 75 years, vide special resolution dated September 25th, 2024 passed at the Annual General Meeting.

In terms of Section 152 of the Companies Act, 2013 ("Act"), Mr. Jamil Ahmad (DIN: 07171910) Non-Executive Non-Independent Director retires by rotation at the forthcoming Annual General Meeting ("AGM") and being eligible, offers himself for re-appointment.

Apart from the aforesaid, there were no changes in the Board of Directors.

The Board approved the change in the designation of Mr. Gagan Kaushik, the Company Secretary and Compliance officer of the Company w.e.f. 11th November, 2024 to the Company Secretary and General Counsel. Mr Kaushik is also the Compliance Officer of the Company.

As on the date of this report, your Company has following whole time KMP:

Mr. Rama Kant Sharma, Managing Director,

Mr. Gagan Kaushik, Company Secretary & General Counsel Ms. Namrata Jain, ED Finance & CFO Mr. Kulvinder Singh, Finance Controller

All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16 of Listing Regulations and there has been no change in the circumstances which may affect their status as Independent Directors during the year. The Independent Directors have also confirmed that they have complied with the Company's CODE OF CONDUCT for the Directors and the Senior Management Personnel and also that they are not debarred from holding the office of director pursuant to any SEBI order or any such authority as well as they are independent of the management.

All the Independent Directors of the Company have registered themselves in the data bank maintained with the Indian Institute of Corporate Affairs, Manesar ('IICA'). In terms of Section 150 of the Act read with Rule 6(4) of the Companies (Appointment & Qualification of Directors) Rules, 2014, the Independent Directors are required to undertake online proficiency self-assessment test conducted by the IICA within a period of two (2) years from the date of inclusion of their names in the data bank. The Independent Directors, whosoever is required, shall undertake the said proficiency test.

In the opinion of the Board all independent directors possess strong sense of integrity and having requisite experience, qualification and expertise and are independent of the management. For further details, please refer Corporate Governance Report.

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

The said Policy of the Company, inter alia, provides that the Nomination and Remuneration Committee shall formulate the criteria for appointment of Executive, Non-Executive and Independent Directors on the Board of Directors of the Company and persons in the Senior Management of the Company, their remuneration including determination of qualifications, positive attributes, independence of directors and other matters as provided under sub-section (3) of Section 178 of the Act. The Policy also lays down broad guidelines for evaluation of performance of Board as a whole, Committees of the Board, individual Directors including the chairperson and the Independent Directors. The Policy encourages the appointment of women at senior executive levels and thereby promoting diversity. The Policy is designed to attract, recruit, retain and motivate best available talent.

During the financial year under review, no changes have been carried out in the said Policy. The Nomination and Remuneration Policy is available on the website of the Company and can be accessed via. https:// salautomotive. in/policies/.

During the Financial Year, the Company has transferred the unpaid/unclaimed dividend amounting to Rs. 97,184 to the Investor Education and Protection Fund (IEPF) Account established by the Central Government. The Company has also uploaded the details of unpaid and unclaimed amounts lying with the Company as on 31st March , 2025 on the website of the Company https://salautomotive.in/unclaimed- dividend/.

Further, in terms of Section 124(6) of the Act read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules), as amended, during the year under review, the Company has transferred 775 equity shares to the demat account of Investor Education and Protection Fund, details of which are uploaded on the website of the Company https://salautomotive.in/ unclaimed-dividend.

The Board oversees the formulation, implementation, and monitoring of CSR activities in accordance with the CSR Policy and the annual action plan. The CSR Policy outlines the Company's approach to social responsibility and serves as a guiding document for initiatives aimed at the welfare and sustainable development of the community. The CSR Policy is available on the Company's website at: https://salautomotive.in/policies/.