Directors Report of Acme Universal Safezone 9 Ltd.

The Directors are pleased to present to you the 10th Annual Report of Acme Universal Safezone
9 Limited (Formerly known as Acme Universal Safezone 9 Private Limited) (“The Company” or
“Your Company”) along with the Audited Financial Statements of Accounts for the Financial Year
ended March 31, 2026.

1. COMPANY OVERVIEW:

Acme Universal Safezone 9 Limited is a premier manufacturer and supplier of industrial safety
footwear, dedicated to ensuring worker protection across a broad spectrum of hazardous work
environments. Established with the vision of combining protection, performance, and comfort,
we specialize in developing high-quality safety shoes that meet stringent national and
international standards.

2. FINANCIAL HIGHLIGHTS:

The table below gives the financial highlights of the Company for the year ended 31^st March, 2025,
as compared to the previous year:

3. PERFORMANCE OVERVIEW:

During the financial year 2025-26, the Company recorded total income of ^20,914.01 lakhs as
compared to ^19,533.00 lakhs in the previous financial year, reflecting an increase in income
during the year.

The total expenses of the Company stood at ^20,143.65 lakhs during the financial year 2025-26
as against ^18,528.63 lakhs in the previous financial year. The Company incurred a loss before
tax of ^351.07 lakhs during the year under review as compared to a profit before tax of ^1,004.37
lakhs in the previous year.

After considering the tax expense comprising current tax of ^244.28 lakhs and deferred tax credit
of ^48.38 lakhs, the Company reported a net loss after tax of ^546.96 lakhs for the financial year
2025-26 as compared to a net profit after tax of ^753.19 lakhs in the previous financial year.

4. TRANSFER TO RESERVES:

During the year under review, no amount was transferred to any of the reserves by the Company

5. STATE OF COMPANY''S AFFAIRS AND OPERATIONS:

The Company is engaged in the manufacturing and supply of safety footwear designed to provide
protection, comfort and durability for workers operating across various industrial sectors. The
Company continues to focus on product quality, innovation, operational efficiency and adherence
to applicable safety standards and customer requirements.

6. SHARE CAPITAL STRUCTURE:AUTHORISED SHARE CAPITAL

The Authorised Equity Share Capital as on 31st March, 2026 stood at Rs. 20,00,00,000/- (Rupees
Twenty Crore) comprising of 2,00,00,000 (Two Crore) Equity Shares of the face value of Rs. 10/-
(Rupees Ten) each.

ISSUED, SUBSCRIBED AND PAID-UP CAPITAL:

However, the paid-up Share Capital of the Company stood at 14,03,26,200/- (Rupees Fourteen
Crore Three Lakh Twenty-Six Thousand Two Hundred Only) comprising of 1,40,32,620 (One
Crore Forty Lakh Thirty-two Thousand Six Hundred Twenty) Equity Shares of the face value of
Rs.10/- (Rupees Ten) each.

During the year under review, the Paid-up Share Capital of the Company was increased from
^4,67,75,400/- to ^14,03,26,200/- pursuant to the issue and allotment of Bonus Equity Shares to
the existing members of the Company in accordance with the applicable provisions of the
Companies Act, 2013.

7. DIVIDEND:

In order to preserve funds for future business endeavours and to standalone the financial position
of the Company, no dividend is declared for the current financial year due to conservation of profit
and continued investment in the business.

8. SUBSIDIARIES AND ASSOCIATE COMPANIES:

The Company does not have any subsidiary companies and associate companies as on 31 March,
2026.

9. DIRECTORS AND KEY MANAGERIAL PERSONNEL:

During the year under review, the following mentioned were the Directors of the Company as on
March 31, 2026:

APPOINTMENT DURING THE YEAR

• Mr. Alok Tripathi (DIN: 11212906) was appointed as an Additional Independent Director
of the Company with effect from 13^th August 2025 and was subsequently regularised as a
Non-Executive Independent Director of the Company at the 9^th Annual General Meeting
of the Company held on 25^th September, 2025.

• Mr. Mohammed Imran (DIN: 11214183) was appointed as an Additional Independent
Director of the Company with effect from 13^th August 2025 and was subsequently
regularised as a Non-Executive Independent Director of the Company at the 9^th Annual
General Meeting of the Company held on 25^th September, 2025.

• Mr. Vishal Saxena (DIN: 11218513) was appointed as an Additional Independent Director
of the Company with effect from 13 ^th August 2025 and was subsequently regularised as
aNon-Executive Independent Director of the Company at the 9^th Annual General Meeting
of the Company held on 25^th September, 2025.

• Mr. Gofran Ahmad Khan (DIN: 11404914) was appointed as an Additional Independent
Director of the Company with effect from 19^th January 2026 and was subsequently
regularised as a Non-Executive Independent Director of the Company at the 4^th Extra
Ordinary General Meeting of the Company held on 24^th January, 2026.

• Mr. Satyam Gehlot was appointed as Chief Financial Officer as on 19^th January 2026 .

• Ms. Priya Darshil Mody was appointed as Company Secetary and Compliance Officer as on
19^th January, 2026.

RESGNATION DURING THE YEAR

• Mr. Vishal Saxena (DIN: 11218513) resigned from the position of Non-Executive
Independent Director as on 19^th January 2026.

• Mr. Satyam Gehlot (DIN: 10657623) resigned form position of Director as on 19^th January
2026.

10. CODE OF CONDUCT FOR DIRECTORS & SENIOR MANAGEMENT:

The Board has adopted a Code of Conduct for Directors & Senior Management in accordance with
the provisions of the Companies Act, 2013. The Code also incorporates the duties of Independent
Directors. All the Board Members and Senior Management Personnel have confirmed compliance
with the Code. A copy of the Code has been put on the Company''s website.

11. FAMILIARIZATION PROGRAMME FOR DIRECTORS:

At the time of appointment of the Director, a formal letter of appointment is given to the Director.
The Director is also explained in detail the roles, functions, duties and responsibilities expected
from him/her and also compliance required from him/her under the Companies Act, 2013, and
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements),
Regulations 2015. Further the Managing Director also holds one to one discussion with the newly
appointed Director to familiarize him/her with the Company''s operations.

The Board of Directors has complete access to the information within the Company. Presentations
are regularly made to the Board of Directors and various Committees of the Board. The details of
the Company''s familiarization programme for Independent Directors can be accessed at
company.

12. ANNUAL EVALUATION OF THE BOARD. ITS COMMITTEES AND INDIVIDUAL DIRECTORS:

The Nomination, Remuneration and Compensation Committee of the Company has laid down the
criteria for performance evaluation of the Board and individual directors including the
Independent Directors and Chairperson 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. It includes circulation of evaluation
forms separately for evaluation of the Board, its Committees, Independent Directors / Non¬
Executive Directors / Executive Directors and the Chairman of your Company.

The Board and the Nomination, Remuneration and Compensation Committee reviewed the
performance of individual Directors including the Chairman and the Managing Director on their
personal performance, participation, contribution and offering guidance and understanding of
the areas which were relevant to them in their capacity. The Directors were also assessed on
selected parameters related to roles, responsibilities and obligations of the Board and functioning
of the Committees including assessing the quality, quantity and timeliness of flow of information
between the Company''s Management and the Board which is necessary for the Board to
effectively and reasonably perform their duties.

The Board expressed its satisfaction with the evaluation results, which reflects the high degree of
engagement of the Board and its Committees with the Company and its Management.

13. MEETINGS OF THE BOARD:

The Board met 14 (Fourteen) times during the financial year. The gap between these meetings
was within the prescribed period under the Act.

14. DECLARATION BY INDEPENDENT DIRECTORS:

The Independent Directors of the Company have furnished necessary declarations to the
Company under Section 149(7) of the Companies Act, 2013 confirming that they meet the criteria
of independence as prescribed for independent directors under Section 149(6) of the Act.

In the opinion of the Board, all the Independent Directors possess the requisite qualifications,
expertise and experience including the proficiency required to be Independent Directors of the
Company, fulfil the conditions of independence as specified in the Act.

15. DIRECTORS'' RESPONSIBILITY STATEMENT:

In terms of Section 134 (5) of the Companies Act, 2013, your Directors state that:

1. In preparation of annual accounts for the year ended 31st March, 2026, the applicable
accounting standards have been followed along with proper explanations relating to
material departures, if any;

2. They have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company as at 31st March, 2026 and profit of the Company for
the year ended on that date;

3. They have taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;

4. They have prepared the annual accounts on a going concern basis;

5. They have laid down proper internal financial controls to be followed by the Company and
they were adequate and operating effectively and

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

16. FILING OF DRHP:

During the financial year ended 31st March, 2026, the Company filed its Draft Red Herring
Prospectus (DRHP) with BSE Limited for listing on the BSE SME Platform, in connection with
the proposed issue of securities, in accordance with the applicable provisions of the Companies
Act, 2013, SEBI Regulations and the requirements of the Stock Exchange.

The DRHP was filed with the Stock Exchange on 31^st March 2026. The Company has complied
with the applicable regulatory and procedural requirements in relation to the said filing.

17. BOARD COMMITTEES:

The Board of Directors of the Company has constituted various Committees in compliance with
the provisions of the Companies Act, 2013 and SEBI Listing Regulations, such as Audit Committee,
Nomination, Remuneration and Compensation Committee, Stakeholders'' Relationship
Committee, Corporate Social Responsibility Committee and POSH Committee.

All decisions pertaining to the constitution of the Committees, appointment of members and
fixing of terms of reference/role of the Committees are taken by the Board of Directors.

AUDIT COMMITTEE

The Composition of Audit Committee as on 31^st March, 2026 is :-

NOMINATION REMUNERATION AND COMPENSATION COMMITTEE

The Composition of Nomination, Remuneration and Compensation Committee as on 31^st March,
2026 is:-

STAKEHOLDER RELATIONSHIP COMMITTEE

The Composition of Stakeholder Relationship Committee as on 31^st March, 2026 is:-

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The composition of Corporate Social Responsibility Committee as on 31^st March, 2026 is

INTERNAL COMPLAINTS COMMITTEE UNDER POSH

The Composition of Internal Complaints Committee as on 31^st March, 2026 is :-

18. RISK MANAGEMENT

The Company has Risk Management Systems in place including identification of elements of risk,
if any, which in the opinion of the Board may threaten the existence of the Company. After
identifying the risk and assessing the level of impact, controls are put in place to mitigate the risk
by the concerned executives/the Board to control the exposure of the risk and balance the impact
of risk on a continuous basis.

19. WHISTLE BLOWER POLICY/VIGIL MECHANISM

The Company is committed to upholding the highest standards of professionalism, transparency,
and ethical conduct in all our operations. The updated Whistle Blower Policy reflects Industry
best practices and ensures full compliance with relevant regulations.

The Whistle Blower Policy of the Company, establishes a clear and structured process for
reporting any unethical or improper activity, no matter how minor or perceived. It offers a safe
platform for all stakeholders to voice concerns or grievances regarding unethical, unlawful, or
inappropriate behaviour, without fear of retaliation, discrimination, or harassment. Further, it
provides clear guidelines for reporting any suspected Violations of Laws, Company Values, Code
of Conduct, or Insider Trading norms. The Company also facilitates written disclosures as per the
adopted policy.

The policy is reflection of the Company''s dedication to robust governance and ethical business
practices. The Company encourages all employees and stakeholders to make use of defined
channels to report any concerns as per the procedure outlined in the policy. Protected Disclosures
can be submitted either online or offline, directly to the relevant Committee, with full assurance
that all matters will be handled with strict confidentiality. The policy is available on the website
of the company at https://www.acmeuniversal9.com/investor-relations/

20. COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND GENERAL MEETINGS

The Board of Directors affirms that the Directors have devised proper systems to ensure
compliance with the provisions of all applicable Secretarial Standards issued by the Institute of
Company Secretaries of India and that such systems are adequate and operating effectively. The
Company has complied with the applicable Secretarial Standards.

21. STATUTORY AUDITORS

M/s. Ramanand & Associates, Chartered Accountants (Firm Registration No. 117776W) were
appointed as the Statutory Auditors of the Company for a term of 5 (five) consecutive years, to
hold office from the conclusion of the 9th Annual General Meeting until the conclusion of the 14th
Annual General Meeting, subject to the provisions of the Companies Act, 2013 and the rules made
thereunder.

The Auditors have confirmed that they are eligible for appointment and have given their consent
to act as Statutory Auditors of the Company and that their appointment is in accordance with the
applicable provisions of the Companies Act, 2013.

22. INTERNAL AUDITORS

The Company is not required to appoint Internal Auditor as it does not fall within purview of
section 138(1) of Companies Act, 2013 and Rule 13 of Companies (Accounts) Rules, 2014 and it
is not applicable to your Company.

23. REPORTING OF FRAUD BY AUDITORS

During the year under review, neither the Statutory Auditors nor Secretarial Auditors have
reported to the Audit Committee under Section 143(12) of the Act, any instances of fraud
committed against your Company by its officers and employees, details of which would need to
be mentioned in the Directors'' Report.

24. ANNUAL RETURN

Pursuant to the provisions of Section 134(3) (a) and Section 92(3) of the Companies Act, 2013
read with Rule 12 of the Companies (Management and Administration) Rules, 2014, a copy of the
Annual Return of the Company for the financial year ended 31st March, 2025 is uploaded on the
website of the Company and can be accessed athttps://www.acmeuniversal9.com

25. PUBLIC DEPOSITS

As on April 01, 2025, the Company was not having any outstanding deposit falling under the scope
of Chapter V of the Companies Act, 2013 and it has not accepted any deposit covered under said
Chapter during the financial year 2025-26. As on March 31, 2026, the Company was not having
any outstanding deposit falling under the scope of the said Chapter.

26. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

In accordance with the provisions of Sections 134(3)(g) and 186(4) of the Act, full particulars of
loans given, investments made, guarantees given and securities provided, if any, along with the
purpose for which the loan or guarantee or security was proposed to be utilized by the recipient
have been disclosed in the standalone financial statements.

27. RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the year were on arm''s length basis
and in the ordinary course of business. The Audit Committee has approved the related party
transactions and subsequently the same were approved by the Board of Directors from time to
time and the same are disclosed in the Financial Statements of the Company for the year under
review.

Further, pursuant to the provisions of the Act and the SEBI Listing Regulations, the Board of
Directors has, on recommendation of its Audit Committee, adopted a Policy on Related Party
Transactions and the said policy is available on the website of the Company
https://www.acmeuniversal9.com/investor-relations/.

28. ENERGY CONSERVATION AND TECHNOLOGY ABSORPTION

The Company ensures optimized and efficient consumption of energy in all the offices/branches
of the Company. With the implementation of its digital initiatives the Company has also
substantially reduced its paper consumption. The Company has always leveraged technological
innovations to improve its operational efficiency and satisfy and retain our customer base.

Foreign Exchange Earnings & Outgo

Earnings: 1602.69 Lakhs
Outgo - 1465.05 Lakhs

29. INTERNAL CONTROL SYSTEM

The Company''s internal control systems are adequate and commensurate with the nature and
size of the Company and it ensures:

• Timely and accurate financial reporting in accordance with applicable accounting
standards.

• Optimum utilization, efficient monitoring, timely maintenance and safety of its assets.

• Compliance with applicable laws, regulations and management policies.

30. SIGNIFICANT AND MATERIAL ORDERS IMPACTING GOING CONCERN STATUS

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

31. MAINTENANCE OF COST RECORDS

The provisions of Section 148 of the Act are not applicable to the Company. Accordingly, there is
no requirement of maintenance of cost records as specified under Section 148(1) of the Act.

32. HUMAN RESOURCES

As on 31st March 2026, the total strength of the Company''s permanent employees stood at 1073
excluding casual & contract staff. Your Company takes significant effort in training all employees
at various levels.

33. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURE

There are no employees drawing a monthly or yearly remuneration in excess of the limits
specified under Section 197 of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 including any
amendments thereof. The information containing particulars of employees 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.

34. CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

Pursuant to the provisions of Section 135 of the Companies Act, 2013 and the Companies
(Corporate Social Responsibility Policy) Rules, 2014, the Company has undertaken CSR activities
during the financial year 2025-26. The Company has spent an amount of ^ 18,30,000/- (Rupees
Eighteen Lakhs only) towards its CSR obligations, which has been contributed to Sayali Charitable
Trust for carrying out social as well as Institutional activities with the core objective of rendering
selfless dedicated services to higher education in the fields of Pharmacy & Homeopathy. The CSR

expenditure is in line with the activities specified in Schedule VII of the Companies Act, 2013 and
the CSR Policy of the Company.

35. DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013

The Company is committed to provide a healthy environment to all its employees and has zero
tolerance for sexual harassment at workplace. In order to prohibit, prevent and redress
complaints of sexual harassment at workplace, it has complied with the provisions relating to the
constitution of the Internal Complaints Committee under the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013. To build awareness in this area,
the Company has been conducting induction/ training programmes in the organisation on a
periodical basis. The Company has not received any complaint of sexual harassment during the
financial year 2025-26.

36. MATERNITY POLICY

The Company declares that it has duly complied with the provisions of the Maternity Benefit Act,
1961. All eligible women employees have been extended the statutory benefits prescribed under
the Act, including paid maternity leave, continuity of salary and service during the leave period,
and post-maternity support such as nursing breaks and flexible return-to-work options, as
applicable. The Company remains committed to fostering an inclusive and supportive work
environment that upholds the rights and welfare of its women employees in accordance with
applicable laws.

37. ANY POLITICAL CONTRIBUTION:

The Company has neither made any political contributions during the year nor disclosed the
absence of such contributions as required under Section 182 of the Companies Act, 2013.

38. INSOLVENCY AND BANKRUPTCY CODE

During the financial year under review, no applications was made or proceeding initiated against
the Company under the Insolvency and Bankruptcy Code, 2016 nor any such proceeding was
pending at the end of the financial year 2025-26.

39. MATERIAL CHANGES AND COMMITMENTS

There has been no change in the nature of business during the year. There have been no material
changes and commitments affecting the financial position of the Company which have occurred
between the end of the financial year of the Company to which the financial statements relate and
the date of this Report.

40. RBI GUIDELINES

The Company continues to be in compliance with the RBI Directions.

41. ACKNOWLEDGEMENT

Your Directors wish to express their grateful appreciation for the co-operation and continued
support received from customers, shareholders, investors, parent company, collaborators,
vendors, financial institutions, banks, regulatory authorities and the society at large during the
year. Your Directors recognize and appreciate the efforts and hard work of all the employees of
the Company and their continued contribution to its progress.