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DIRECTORS' REPORT INCLUDING MANAGEMENT DISCUSSION AND ANALYSIS

The Directors have pleasure in presenting the 73rd Annual Report together with the Audited Financial Statements for the Financial Year ended March 31, 2025.

The following are the standalone financial highlights for the Financial Year 2024-25: [MINR]

Based on the good financial performance for the year under review coupled with strong balance sheet strength with no debt, substantial liquidity, high cash reserves and considering future cash flows, the Board of Directors have recommended a final dividend of Rs. 512 per equity share for the financial year 2024-25 for the approval of the members at the 73rd Annual General Meeting of the Company. The total dividend payout ratio is approximately 75% for 2024-25.

The final dividend recommended is in accordance with the Dividend Distribution Policy of the Company. The Company does not propose to transfer any amount to Reserves for the year under review.

Pursuant to the requirements of regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has adopted a Dividend Distribution Policy and is enclosed as Annexure ‘H' to this Report. Details of outstanding and unclaimed dividends previously declared and paid by your Company are given under the Corporate Governance Report which forms part of this Integrated Annual Report.

Global growth was unsynchronized across the developed, emerging/developing economies in the year 2024, where US saw its growth projections for 2024 being revised upwards, due to strong private demand in the US, outpacing expectations. On the other hand, Eurozone countries, UK and China saw slower-than-expected growth, though inflationary impulses came down as well. Consumer demand was muted, and the export powerhouse of Europe saw a slowdown in overall demand. Overall, the US economy emerged as the key driver of global growth among developed markets, also getting the moniker of "US exceptionalism." India, though logging in another year of positive growth and the "fastest growing economy tag," also experienced a moderate slowdown compared to the previous years due to higher base impact with private capex not gathering the necessary momentum.

Global growth expectations are unraveling – in the US, due to trade issues and in other developed countries due to uncertainty. Global growth is projected to drop to 2.8% in 2025 and 3.0% in 2026 (down from 3.3% for both years from the earlier forecast) and much below the historical average of 3.7% (2000–2019). Growth in advanced economies is projected to be lower at 1.4% in 2025 (Actual 2024: 1.8%), on account of increased policy uncertainty, trade tensions, geo-political risks, and softer demand momentum. In emerging and developing economies, growth is expected to slow down to 3.7% in 2025 and 3.9% in 2026 (Actual 2024: 4.3%), with significant downgrades for countries affected most by recent trade measures from the US, such as China. Global headline inflation is expected to decline, albeit at a slower pace than what was expected initially, reaching 4.3% in 2025 and 3.6% in 2026, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in 2025. This also leads to projections of stagflation impulses in few developed economies. This is intensifying the downside risks that dominate the economic outlook, amidst escalating trade tensions and financial market adjustments.

On the upside, a de-escalation from current tariff rates and new bilateral trade agreements may provide clarity and stability in trade policies that could lift global growth. Due to the soft growth projections, oil prices are also showing signs of correction, which could impact inflation positively.

The uncertainties in the global economy may weigh on India's growth this year. However, India is relatively more stable due to dependence on the domestic market and expected to grow at 6.2% in 2025-26 and 6.3% in 2026-27 (Provisional Actual: 6.5% in 2024-25), supported by domestic private consumption, particularly in rural areas, but this is 0.3% points lower than the earlier forecast due to escalating levels of trade tensions and global geopolitical uncertainties. The recent domestic conflicts with the neighboring country may also add to the uncertainties. However, the central bank, RBI is expected to cut interest rates further, to support growth.

Amidst the gloomy outlook, the latest IMF forecasts provide a positive take on India, which is set to overtake Japan as the world's 4th largest economy in 2025. As per latest projection by IMF, India will remain the fastest growing major economy over the next 2 to 3 years.

Despite entering 2024-25 with a high base from the previous fiscal year and contending with global economic uncertainties and India's general elections, the Indian automotive industry demonstrated resilience and adaptability, delivering a varied performance across segments, with 4-wheeler production reaching a new high of 7.2 million units in 2024-25, surpassing the previous peak of 7.0 million units in 2023-24.

Passenger car sales grew 3.6% Y-on-Y, due to strong SUV demand, despite weak small/hatchback car performance and high inventory levels. 2-wheelers showed 11.2% increase Y-on-Y, driven by domestic demand, export recovery, and rising EV adoption. 3-wheeler sales rose by 7.1% owing to growing e-commerce and last-mile connectivity. Tractors bounced back with 7.7% growth Y-on-Y, supported by good monsoon and rural investments after a 11.7% drop in the previous year. Meanwhile, light commercial vehicles declined by 5.1% due to competition from electric 3-wheelers, and heavy commercial vehicles fell by 1.3% due to a high base and delays in execution of infrastructure projects.

In 2024-25, the electric vehicle (EV) market grew across all segments. Electric 2-wheelers witnessed biggest growth due to strong urban demand and low operating costs. Also 3-wheelers grew on account of increase in demand for delivery vehicles. Electric buses faced some delays but are expected to grow with government support. The growth of EV charging infrastructure and government incentives helped to boost adoption.

Overall, the industry reflected a shift towards electrification and rural-driven recovery. Vehicle production (excluding 2-wheelers) registered a 3.5% Y-on-Y growth, reflecting the sector's ability to navigate structural shifts and evolving market dynamics.

Vehicle segment wise performance in 2024-25:

• Heavy Commercial Vehicle (HCV): Market shift dampens growth, but Buses rebound.

The Heavy Commercial Vehicle (HCV) segment reported a 1.3% Y-on-Y decline in production, primarily attributed to the high base effect from 2023-24 and disruptions arising from the general elections, which slowed infrastructure project execution. Projects started gradually getting rolled out in the second half of 2024-25. Furthermore, there is a shift towards higher-tonnage vehicles, driven by infrastructure development, supportive government initiatives, and rising demand for cargo transport. Moreover, the bus sub-segment rebounded well, marking a return in public transportation investments and fleet replacements by state undertakings and private operators.

• Light Commercial Vehicle (LCV): E 3-Wheelers disrupt traditional LCV space.

Light Commercial Vehicle (LCV) production declined by 5.1% Y-on-Y, due to increasing competition from the rapid adoption of electric 3-wheelers (E-3Ws), particularly in the sub-2-tonne category. Small commercial vehicles (SCVs) are also moving toward higher payload pickups, prioritizing efficiency, and productivity.

E-3Ws have emerged as the preferred choice for urban e-commerce deliveries and last-mile connectivity, prompting traditional LCV players to revisit their product strategies and value propositions. However, rural demand regained momentum in the post-monsoon months, providing a boost to LCV volume offtake towards the latter part of the fiscal.

• Passenger Car (PC): UV demand drives growth amid inventory challenges

Passenger car (PC) segment reached an all-time high production of 5.1 million units in 2024-25, marking a shift from ‘recovery' to ‘growth', continuing to rise steadily due to the consistent demand for Utility Vehicles (UVs).

Mid-year inventory levels became a concern, peaking to 70 days in September, owing to sluggish movement in small and hatchback segments. However, the situation improved significantly towards the fiscal year-end, with inventory days stabilizing around 50–55 days, indicating a recovery in consumer sentiment and demand traction.

• 3-Wheelers: Electrification and E-Commerce push segment forward

3-wheelers grew by 7.1% Y-on-Y, driven by higher demand for passenger transport and the fast-growing e-commerce sector. Moreover, rising use of electric 3-wheelers in food delivery, logistics, and urban transport services contributed to the growth of this segment.

The segment's evolution continues to reflect a broader structural shift toward clean mobility solutions and cost-effective last-mile delivery options. E-3Ws are gaining market share from CNG models.

• Tractors: Monsoon and rural investments spur late-year recovery

After a slow start in the first half of 2024-25, the tractor segment made a remarkable comeback, ending the year with an 7.7% Y-on-Y growth. The rebound was supported by a favorable monsoon, hiked Minimum Support Prices (MSPs), and stepped-up rural infrastructure spending.

Though, early headwinds such as election-related disruptions and patchy rainfall muted sentiments, the sector regained its footing as improved agri-economics and rural policy support revitalized demand in the second half of the fiscal year.

• 2-Wheeler (2W): Rural revival and premium demand fuel double-digit growth

The 2W segment emerged as a star performer in 2024-25, registering a robust 11.2% Y-on-Y growth. The recovery was powered by improved rural demand, and a surge in urban replacement demand, especially for premium models.

Electric 2-wheelers also gained traction, contributing to the segment's overall growth despite challenges like reduced subsidies and high input costs.

Moreover, the revised income tax slabs introduced in the Union Budget are expected to boost disposable income, further sustaining positive growth momentum into the upcoming fiscal year.

Production in thousand Nos.

India's robust economic expansion, infrastructure development and manufacturing growth are key macroeconomic factors fueling the power tools market. Rising GDP growth, increased government spending on infrastructure projects (Bharat Mala, Sagarmala, Urban development) and policy initiatives like ‘Make in India' and the PLI scheme have boosted construction, real estate, and industrial activities. Additionally, growing FDI inflows, urbanization, rise of domestic manufacturing and restrictions on low-quality imports further supports in making India a high-growth region for power tools.

The Indian power tools market is currently valued at approximately 110 billion INR and is projected to grow at 7.0% in the coming year. The market is witnessing increased competition, particularly from new entrants - primarily Chinese manufacturers - who are gaining traction in the mid-price segment, thereby challenging established players. However, the Indian government has implemented measures to regulate imports, including stricter BIS (Bureau of Indian Standards) certification requirements for imported products and restrictions on license renewals, aiming to curb dependency on foreign suppliers and support domestic industry growth.

The building technologies business sector which consists of Safety and Security systems is witnessing consistent growth across various segments in Indian economy. This expansion is driven by the country's focus on infrastructure development and a surge in construction activities, supported by substantial investments in areas like transportation, energy, manufacturing, commercial, healthcare, and hospitality. As a key player in this field, Bosch is well-positioned to meet the rising demand for security, safety, and communication systems. With India's promising growth outlook, there is significant potential for advancement and growth in this sector. However, the industry remains highly fragmented and sensitive to pricing, with numerous small competitors in the market. The ecosystem comprises system integrators, distributors, end customers, and an influencer community that includes architects, consultants, and specifiers. Additionally, in specific segments, there are industry bodies and forums that actively engage the target audience through various promotional initiatives.

The overall Net sales of the Company witnessed growth of +6.6% in 2024-25 vs PY. Mobility business (viz. Automotive sector) revenues increased by +7.0% vs PY, while the Business Beyond Mobility increased by +4.4% vs PY. Domestic mobility business witnessed increase of +6.2% vs PY, driven by growth in Power Solutions division by +4.8% vs PY & Mobility Aftermarket by +8.1%, aided by growth in the overall automotive market. The Company operates in manufacturing and trading business in Mobility sector, which constitutes around 85.7% of total sales in 2024-25. The Business Beyond Mobility, comprising of Consumer Goods, Energy & Building Technology, and Industrial Technology, had a share of 14.3%. The operating segments of the Company are broadly classified into "Mobility Business" (Automotive products) and "Businesses Beyond Mobility" (Non-Automotive products).

Power Solutions (PS) combines the strengths of the smart, diversified, innovative and sustainable powertrain under the vision "Our POWER" for a better world with Excellence at all levels – from passenger cars and commercial vehicles to stationary applications. It is based on four pillars under Commercial Vehicle (CV)/Off-Road (OR) vehicle segments:

- Internal Combustion Engines (ICE) - We actively defend our global #1 position and expand our market leadership.

- Hydrogen (H2) - We build up our H2 business both in the mobility sector and the rapidly growing stationary market.

- Thermal Management Systems – We develop into a leading supplier in the systems business.

- We foster our business with software, controls, and services.

We shape Bosch Mobility (BBM) to become the #1 systems partner and use this position to design the CV/OR solutions of the future.

Our strong expertise in industrialization and systems is the common thread linking our entire business.

2024-25 witnessed a moderate growth in the overall 4-wheeler auto market. The PS division grew by 5.8% in 2024-25 over PY aided by the automotive growth across segments and sustained its core ICE business. Aligning to the BBM transformation, PS had integrated both Thermal Systems and CV/OR businesses beginning 2025 and began to strategize its growth strategy. As a major milestone in Hydrogen progress, PS showcased its H2 engine prototype truck in a live demonstration at the Bharat Mobility Global Expo 2025 featuring, enhanced H2 storage, diesel-like performance, ultra-low emissions, and advanced safety. A digital presentation shared real-world trial data, highlighting CO savings, lower running costs, and minimal tailpipe emissions. The event drew top industry leaders, government officials, media, and the public, offering a glimpse into the future of sustainable trucking.

Overall growth momentum is expected to continue in 2025-26, as the country's economy and automotive industry is poised to do well.

The Mobility Aftermarket division has presence in Sales, Supply, and Distribution of automotive parts for vehicle servicing, diagnostics equipment for workshops and technical information, training, and consulting for after-sales service for Bosch automotive products and systems. The product portfolio ranges from Diesel & Gasoline Fuel Injection System & Components, Spark Plugs, Filters to Batteries, Lubricants, Wiper Blades, and Diagnostic Equipment & Software, among others.

The MA segment has over 50,000 retail touch points, spread across 650+ districts, catering to over 15,000-part numbers to ensure widespread availability of both products and after sales services. The division also has over 1,500 authorized workshops & service centers comprising of Bosch Car Service & Bosch Diesel Service Centers, Auto Electrical Modules & 2-Wheeler Service partners, in India.

MA achieved the highest ever Total Revenue from operations in 2024-25 with a growth of +8.4% compared to PY.

The Independent After Market (IAM) segment, which is the largest segment within MA division, constituting around 60% of the total business of MA division, grew by +4.9% in 2024-25 vs PY. The Original Equipment (OE) block led the way for growth in 2024-25 with an impressive 11.7% growth over PY.

IAM continued its growth through the Zing+NXT strategy with focus on enhanced Demand Generation for deeper Market Penetration & enhanced product portfolio for wider range participation.

Auto Electricals, Wipers & Batteries recorded impressive double-digit growth for IAM in 2024-25. Several new categories launch like CV brake liners, Inverter Batteries, Cabin Filters, Tyre Pressure Monitoring System etc. paved the way for additional growth opportunities for 2024-25 and the years ahead.

MA has envisioned ambitious growth over the next few years building towards our Vision 2030 around key focus pillars of:

- Culture & People, fostering an open & transparent culture, built on trust

- Operational Excellence aimed at customer centricity including supply chain & product management

- Product focus especially on Diesel, Rotating Machines, Brakes, Filters & Lubricants

- Ramp up of Workshop Concepts of Bosch Car Service and Bosch Diesel Service, Deep penetration amongst consumption centers through scale up of Workshop Modules like Bosch Electric Service and Bosch 2 wheeler Service & launch of new concepts like PC & CV vehicle workshop modules

With a strong presence across major 2-Wheeler OEM's, Bosch provides innovative technologies and comprehensive system solutions tailored for various vehicle types. Our portfolio of Engine Management System (EMS) technologies is specifically engineered for 2-Wheelers, encompassing components such as lambda sensors, fuel injectors, fuel supply modules, and Electronic Control Units (ECUs).

During 2024-25, the net sales of 2WP grew by +18.5% vs PY with stabilized semi-conductor supply situation, new customer acquisitions, new projects from customers coupled with overall growth in 2-Wheeler market by +11.2% over PY. Net Sales of 2WP division is forecasted to grow in 2025-26 driven by regulation upgrade to BS-VI OBD2 norms.

The Business Beyond Mobility sales have increased by +4.4%in2024-25vsPY,whichwasdrivenpredominantly by Consumer goods (viz. Power Tools) and Energy & Building Technology division which contributed to 91% of total business of beyond mobility during the year.

Bosch Power Tools has been a leading global supplier of power tools, and related accessories, garden tools, measuring technology & has recently expanded its portfolio to hand tools. The division has a wide range of products with focus in equipping professionals and industry users with cutting-edge tools that ensure precision, efficiency, and durability.

During 2024-25, the division's revenue grew by +6.3% vs PY, of which the global tools segment which includes grinders and cutters, constituting 53% of the total power tools business, grew by +9.8% over PY. The accessories business, which constitutes 32% of the total power tools business, grew marginally over PY. The division also launched standard line range in global tools for providing affordable solutions, and "I-series" high precision tools for Industrial users. The division also aims at reducing the distance to its users and will continue to focus on improving their lives by providing affordable solutions. The Power tools division continues to focus on increasing the share of localization of high-volume products (Chennai Plant reached +2 million tools volume production in 2024) and thereby offering better value to customers.

The power tools business is expected to continue in its growth trajectory in the coming years. Focus will be on the Cordless tools business, Industrial tools, hand tools, Dealer engagement & New launches across all business units. Lower price products will be the essential contributors to the overall business growth, apart from new launches and increase in localization of high-growth products. The division is also expanding its business in adjacent segments namely, hand tools.

Bosch Building Technologies business offers solutions for safe, secure, and enjoyable spaces and a broad spectrum of services which include customizable solutions comprising of video surveillance, intrusion detection, fire detection and voice evacuation systems as well as access control and management systems. Intercom systems, Professional audio & conference systems for communication of voice, sound and 157 music complete the range. Our objective is to minimize risks & maximize security and offer the best solution for every building or application.

BT business saw a growth of +8.2% in revenue in 2024-25 over PY with key wins across verticals. Communications business grew by +12.9% and Video Systems by +12.7% YoY, whereas Fire System Business grew marginally. In line with global strategy to realign the BT business, the company has decided to hive off its "Video solutions, Access and Intrusions and Communication systems" business with effect from May 01, 2025.

Bulk of the Net Sales in 2024-25 is from sales made within India in the domestic market. Exports at 14,054 MINR, constitute ~8.3% of total sales in 2024-25. Bulk of the exports are manufactured goods to other Bosch group companies from Power solutions and Mobility aftermarket divisions. Close to 69% of the total products exported are to Robert Bosch, Germany.

Sale of products grew by +6.6% over PY and stood at 169,316 MINR in 2024-25.

Bosch Limited's Mobility Solutions business sector increased product sales by +7.0% in 2024-25, contributed by increase in sales of Power Solutions division by +5.8% and 2-Wheeler division by +18.5%, primarily on account of overall automotive market growth of +9.1%. Sales of Mobility aftermarket division grew by +8.4% vs PY. Sales of non-mobility business grew by +4.4%, led by growth in Power tools division by +6.3%.

Income from sale of services in 2024-25 grew significantly by +51.8% vs PY, primarily due to additional projects completed for newer applications for Indian OEM's.

Other operating revenue for 2024-25 stood at 4,054 MINR, which increased by +16.4% over PY. This increase is due to income from shared services offered to other Bosch group companies.

Other income in 2024-25, which comprises of mark-to-market gains on mutual fund investments and interest income on fixed deposits and loans given, increased by +12.7% over PY, due to increase in income from fixed deposits and increase in NAV's of mutual fund investments.

The cost of materials consumed as a percentage of total revenue from operations improved to 63.4% in 2024-25 from 64.8% in 2023-24. The improvement is contributed by savings in raw material cost and better product mix.

Personnel cost in 2024-25 was 14,953 MINR, which is 8.3% of total revenue as against 8.0% of revenue in 2023-24. The increase is attributable to the annual revision in salaries of employees to compensate for higher inflation.

Finance cost for 2024-25 was 171 MINR as compared to 508 MINR in 2023-24. PY had a one-time charge towards provision made for interest liability on GST demand.

The depreciation charge for 2024-25 was 3,756 MINR as against 4,295 MINR in PY. The reduction is due to lesser additions to fixed assets in 2024-25.

Other expense comprises of spending towards plant operating expenses, selling & administrative overheads & royalty payments. Other expenses were at 15.6% of total revenue in 2024-25 as compared to 14.7% of total revenue in PY. The increase is due cost pertaining to higher customer projects executed during the year and adverse forex impact.

Exceptional item in 2024-25 comprises of profit on sale of OE diagnostics business off set by provision made for restructuring of operations in mobility business.

Total tax expense for 2024-25 (including tax on exceptional items) amounts to 7,193 MINR, as compared to 6,905 MINR in PY. The effective tax rate (including deferred tax, but excluding tax adjustments related to earlier years), for 2024-25 is 25.6% of Profit Before Tax as compared to 23.2% in PY. The effective tax rate has increased due to removal of indexation benefit on long term capital gains.

Profit after tax (without exceptional items) increased by +9.0% over PY. The increase is on account of improvement in operational profitability. Profit after tax (including exceptional items) however declined by -19.2% over PY. Previous Year had one time profit on sale of "Project House mobility business" amounting to 8,438 MINR.

The investment in equity shares is classified as financial assets through other comprehensive income as per the requirements of Ind AS 109. The changes in fair value of equity shares are recognized under OCI. Also, the gains/(losses) arising on remeasurement of employee deferred benefit plans is recognized through OCI. Accordingly, the net gain of 2,426 MINR (net of taxes) resulting from increase in fair value of equity investments has been recognized in 2024-25.

EPS (basic and diluted) of the Company for 2024-25 stands at 683 Rs. per share as compared to 844 Rs. per share in PY. Previous Year had one time profit on sale of "Project House mobility business."

As on March 31, 2025, the Authorized Share Capital comprises of 38,051,460 Equity Shares of Rs. 10/- each. The issued, subscribed, and paid-up capital is 295 MINR divided into 29,493,640 equity shares of Rs. 10/- each.

Reserves & Surplus as on March 31, 2025, stood at 124,459 MINR, as compared to 109,309 MINR in PY. The increase is on account of profit after tax earned during 2024-25, after payment of final dividend for 2023-24.

Other Reserves comprises of increase in fair value of equity investments valued in line with Ind AS-109. The balance of other reserves as on March 31, 2025, is at 13,423 MINR.

The total Shareholders' funds increased to 138,177 MINR as on March 31, 2025, from 120,632 MINR as on March 31, 2024, contributed by increase in retained earnings for the year.

Gross fixed assets (including Capital Work-In-Progress) as on March 31, 2025, was 44,347 MINR compared to 42,578 MINR as on March 31, 2024. The Company added fixed assets worth 1,273 MINR during the year 2024-25, in plant and machinery for capacity expansion & replacement of old machines.

The total financial investments (Current & Non-Current) as on March 31, 2025, was 71,246 MINR as against 50,875 MINR as on March 31, 2024. The net operating profit earned during the year after meeting capex and working capital requirements is invested in liquid mutual funds.

Inventories as on March 31, 2025, were at 19,423 MINR as compared to 18,934 MINR as on March 31, 2024. Better inventory management & inventory control measures have improved the inventory coverage days from 44 days in PY to 41 days in 2024-25.

Trade receivables as on March 31, 2025, stood at 23,650 MINR as against 21,818 MINR as on March 31, 2024. The increase is in line with increased revenue in 2024-25.

The total cash and bank balances as on March 31, 2025, was 5,077 MINR (including cash and cash equivalent of 3,528 MINR), compared to 6,077 MINR (including cash and cash equivalent of 4,632 MINR) as on March 31, 2024.

*excludes exceptional item of profit

The external environment and the markets continue to be Brittle, Ambiguous, Complex and Non-linear. Yes, the reference to BANI and the impact of the same is felt like never before. Global political environment and the related uncertainty, Emergence of Knowledge culture, Enhanced Individualization and the Change in work and workplace relationships are challenging the fundamentals of human relationships. Bosch with Mobility as a dominant force is undergoing transformation too. This creates the need to develop our talent holistically so that they are ready to contribute to the business success. Bosch Mobility Business in India is promising, and India is poised as one of the growth regions for Bosch. The strategic focus points of Mobility: Digitalization, Sustainability, Innovation and People are being navigated successfully through the well-curated ‘People & Organization Strategy.' This knitting of both the strategies vouches on how inseparably business and Human Resources are planned to be connected. Our People & Organization (P&O) Strategy is based on six fundamentals, namely; Transformation, Leadership & Collaboration, Learning, Digitalization, Excellence and Employer of Choice. We at Bosch in India are well prepared to address these challenges. Our fundamental vision remains to create an environment that fosters ‘High Performance culture,' which drives superior business results and improves competitiveness – in a sustainable way. We are guided by our core values which helps us to develop and nurture Talent in progressive and Humane way. In the current year, our focus will be to sustain and further strengthen our efforts in the below dimensions.

From last few years, a base has been built to drive strategic topics under Human Resources. With the project of Strategic Workforce Planning, a great deal of transparency has come to the fore on business impact, workforce need, competencies requirement, existing talent pipeline and measures towards Build, Borrow and Buy. This clarity has given us avenues to further strengthen our core processes like;

1. Learning & Competence Build-up:

We are utilizing our inhouse expertise to build and nurture the skills that are needed to prosper and ‘Grow' our core business. The facilities and infrastructure available in the form of Bosch Learning Campus (BLC) is unique. This also serves as a kind of benchmark across the country. BLC facilitates the unique experience of learning with new-edge technology and connectivity. With our key Mission to grow, we are also progressing to create a learning culture enabling us to be capable as for the future. The future will be driven by Electrification, Connectivity and Digitalization across the mobility eco-system. With consistency in learning measures, we contribute to our overall P&O under the fundamentals of Learning, Excellence, Digitalization and Employer of Choice.

2. Employer of Choice:

Bosch has been announced as a "Great Place to Work" consistently for three years. The journey to determine ourselves as a Great Place has been immensely gratifying. The role is played well by the leadership, which is the in-house talent and all our employees. We continue to create and sustain best experiences for our people through our well knitted and thought through progressive policies, benefits encompassing the financial, physical, and mental well-being, plethora of opportunities to develop & grow and attracting the diverse talent through college connects, branding etc. Bosch has been voiced as an ‘Employer of Choice' in a worldwide survey conducted by Bosch in Germany. Synchronized efforts in building our employer brand through Sampark, our flagship outreach to academia, sponsorship for strategic events and industry academia interfaces through curated learning are some of the ways through which we have improved on our brand funnel of Employer awareness, consideration, and conversion. The college students and professionals view us as an employer with whom they would like to associate their professional journey.

3. Total Rewards:

Bosch constantly benchmarks their Compensation and Benefits with the best in the industry and strives to live a culture of transparency, equity, and fairness in Pay and Benefits. With multiple information sessions to associates, we have been able to create a strong awareness and advocacy around our Compensation philosophy and our benefits practices. Our employee surveys provided us valuable insights into the need for a "one stop" information on the Employer Value Proposition which includes details on various class leading benefits and individual Compensation, work life balance, learning and skilling programs. Group wise benefits, working environment etc. Our Total Rewards Statement is shared with individual employee appointment and salary review letters, which brings the summary of all eligible benefits available at the associate's fingertips. This is one of the many steps which has contributed towards a positive needle movement on trust, transparency and fairness in everything we do.

Bosch is envisioning a multifold growth in coming years. As Human Resources team, we are entrusted with the responsibility of enabling the culture of High Performance at Bosch, which will support in achieving our Financial Target picture. The constituents of High Performing Organization like Accountability, Transparency, Common Purpose, Communication, Clarity, and Trust are well lived and nourished here at Bosch Limited. The matured and well-establishes processes like Talent Development, Performance management, Learning, Well-being are the building blocks.

1. Performance Management: Performance Management is pivotal in shaping the organization's future. While financial performance is the top line, the contribution as individual performance is equally important. At Bosch, we have completely adopted to the newer approach of performance checks. The newness with a focus on strength-oriented discussion, solution-oriented mindset, conversation which backs learning and openness to accept flips. This holistic approach is partnered by both employees and the Manager. There are regular check-ins to adapt to the agile needs of business and individual, along with the sense of belongingness and care. A care which supports the overall well-being and mindset shift from being questioned to being nurtured.

The entire process is driven by our COE and the capable HR Business Partners by enabling the organization time to time.

2. Talent Development: Our focus at Bosch continues to be on investing in talent development, enhancing employee capabilities, fostering a culture of continuous learning, and positioning ourselves for long-term success in a rapidly evolving business landscape. The talent is identified under various categories like Talent Pool, Future Talent, Key to Retain, Diversity etc. This identification in respective groups supports in creation of personalized development plans. We at Bosch understand it firmly that no one size fits all and thus these customized and personalized plans support in the development of talent in the direction of business needs and their aspirations.

3. Health and Wellness: Healthy body and healthy mind are of prime important. We as Bosch encourage our employees to maintain the best of their health through the Health & Wellness engagement we have in our organization. With decent family insurance plants, opportunities of top-ups and inclusion of parents, well-curated regular wellness sessions, we drive the culture of healthy body. With awareness and introduction of Mental Well-being partners, we are trying to engage our employees there too. Stress is evident in today's life, and we look forward to supporting our employees through sessions, 1:1 counseling, applications like Wysa and Your Dost etc. These facilities are open for all our office staff as well as workers. Through these efforts, we bring the required Care and Respect for our employees, which are again the building blocks of ensuring Trust and a productive contribution to business success.

Bosch is strengthening the process of Succession Management, which is towards creating a robust pipeline of internal talent, who are ready to take the senior leadership positions. While, we have our leadership positions filled with our internal talent, we see the process as an opportunity to bring structure to identification, communication and then development of the identified successors. This includes a stringent calibration, buy-in and then challenging the successor for driving the impactful results. We are primarily focused on BUILD as a strategy followed by BORROW and BUY.

Diversity, Equity & Inclusion:

Diversity, Equity & Inclusion is one of the core values of Bosch and we live by it. We appreciate everyone's uniqueness and value diversity as the key for our business success. By including everyone and ensuring equal opportunities, we unleash our full potential. Key focus areas continue to be Gender, Generations and Persons with Disabilities. We leverage on our flagship EmpowHER initiative, specific to augmenting women at work. We are enabling our Women through interventions like ‘Flying Lessons,' which is for the Women in leadership and ‘In It Win It," which is to guide the Women who have started their journey with Bosch. Our Trust survey shares an improving trend on how Women at Bosch view Bosch as their ‘Employer of Choice.' The indicators in the survey which are from the inclusion perspective sexual orientation, gender, caste, religion etc. have always been rated as high. We continue to break new grounds in adding women in first of its kind roles in Bosch, for E.g., Front end Sales, Front Line Managers in Manufacturing, critical senior leadership positions across job families and our future talent pipeline. Our Gangaikondan Plant is awarded by CII, for its best practices under DEI.

Leadership Development:

Our team focuses on fundamentals of leadership, the enablement of leaders, Top Executive Events, and the design of Talent Development Programs. Leadership at Bosch is performance-driven and people-focused. Based on this, the Leadership Requirements serve as a clear framework of what is expected of leaders at Bosch. They provide orientation and context for our leaders and are a means of bringing Be #LikeABosch into practice, according to three leadership perspectives: LEADING BUSINESS, LEADING OTHERS and LEADING MYSELF. The programs are designed with approach of 3Es (Education, Exposure & Experience) to develop our leaders.

HR Capability Building:

We continue to invest in the capability building of the Human Resources function to maximize business results for Bosch.

The Industrial Relations (IR)/Employee Relations (ER) philosophy at Bosch is anchored around the tenets of scientific management, industrial democracy, and employee wellbeing. With the sustained approach of positive engagement and enhanced collaboration and having openness and trust as our core values, Employee Relations across the plants remained in a cordial state. It also recognizes the mutuality of interest with key stakeholders and is committed to continue building harmonious employee relations. Our factories at Naganathapura and Bidadi signed a tri-partite Long Term Productivity Settlement in 2024-2025 aimed at establishing a performance driven culture with a collaborative and transparent approach.

Bosch is committed to develop the skilled resources to minimize the gap between the availability of skilled workforce and Industry requirements through the state-of-the-art factories, training centers and manufacturing excellence. This contributes to enhancing the employability of the youth with the right intervention of skilling initiatives. With the best manufacturing facilities and the availability of experienced engineer/industry experts, sophisticated training centers in Bosch, more than 1500 youths are engaged in various employability enhancement schemes of Government of India. Bosch was recognized in multiple forums of Government bodies for the quality of training provided to such youths.

At Bosch, Employee Relations (ER) is more than a function, it is a strategic enabler driving business excellence. Our Employee Relations Framework is designed to create a future-ready, compliant, and collaborative ecosystem that goes beyond managing Industrial Relations reactively. It builds a resilient foundation that anticipates challenges and embraces continuous improvement.

The Employee Relations is guided by a well-defined framework built on seven strategic pillars, each playing a critical role in shaping a future-ready, resilient, and high-performing.

ER ecosystem.

The first pillar, Assessment, focuses on conducting holistic and comprehensive maturity assessments of the ER function at both location and enterprise levels. These assessments help identify gaps, promote best practices, and enable structured action planning and execution of all the ER processes.

The second pillar, Engagement, emphasizes structured and sustainable interaction with both internal and external stakeholders. Through initiatives like engagement calendars, GPTW surveys, participative committees, and stakeholder connect programs, Bosch encourages an environment of transparency, trust, and continuous feedback. This initiative-taking engagement helps align workforce aspirations with organizational goals.

Capability Building, the third pillar, aims to strengthen ER competencies across all layers of the organization. At Bosch, we believe that effective Employee Relations are built through consistent investment in people and capabilities. In line with this philosophy, Bosch ERA (Employee Relations Academy) was launched in 2024 as a structured, scalable, and future-focused initiative aimed at building ER competencies across all levels of the organization. With the guiding mantra of "Learn. Adapt. Transform," Bosch ERA goes beyond conventional training to create a strategic platform that nurtures a culture of empathy, compliance, and collaborative growth.

Bosch ERA engages a wide spectrum of stakeholders including HR teams, front-line managers, union leaders, and departmental heads through a thoughtfully curated curriculum covering topics like contract labor management, grievance handling, labor laws, and conflict resolution, etc. Delivered via a blended learning approach that combines web-based modules, classroom sessions, real-life case studies, and cross-functional projects, Bosch ERA has already trained over 550 participants in its first year. The fourth pillar, Conflict Resolution, promotes a transparent, collaborative, and human-centric approach for resolving workplace issues. Grievance handling procedures, structured playbooks, and enabling supervisors to manage concerns effectively are key elements that support early intervention and uphold employee trust.

The fifth pillar, Compliance, highlights Bosch's commitment to maintaining initiative-taking and robust legal adherence. With mechanisms like internal audits, digital compliance monitoring, vendor audits, etc., we ensure that all processes operate within the regulatory framework.

Sustainability, the sixth pillar, aims to build a balanced ER ecosystem capable of supporting long-term business goals. It includes transformation of labor models, harmonization of ER documentation and policies, and structured risk assessments to help the organization anticipate and navigate future challenges effectively.

Finally, the seventh pillar, Governance, provides a participatory structure that reinforces communication, accountability, and trust. By implementing clear policies and frameworks, conducting periodic reviews, and promoting collaborative ER governance, Bosch ensures consistency and ownership across all levels.

Together, these seven pillars form the backbone of employee relations at Bosch, ensuring it remains initiative-taking, compliant, people-focused, and aligned with business objectives in an ever-evolving industrial landscape. This commitment to excellence has also earned Bosch national recognition through active engagement in leading employer forums such as NHRD, NIPM, EFSI, and CII, where we continue to share best practices and contribute to shaping the future of work.

Bosch was represented in multiple Employer Forums such as NHRD, NIPM, EFSI, CII, etc. with relevant and value adding topics. Our plants located in various locations in India, won several awards.

These accolades reaffirm Bosch's dedication to building a workplace that is not only productive and compliant but also inclusive, value-driven, and future-ready.

The Company has an Internal Audit function. The Internal Audit department provides an appropriate level of assurance on the design and effectiveness of internal controls, its compliance with operating systems and policies of the Company at all locations. Based on the internal audit report, process owners undertake corrective actions in their respective areas and thereby strengthen the controls. Significant audit observations and corrective measures thereon are presented to the Audit Committee. The Company has an effective and reliable internal financial control system commensurate with the nature of its business, size, and complexity of its operations. The internal financial control system provides for well- documented policies and procedures that are aligned with Bosch global standards and processes, adhere to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. This also identifies opportunities for improvement and ensures that good practices are imbibed in the processes that develop and strengthen the internal financial control system and enhances the reliability of the Company's financial statements.

The Audit Committee reviews the internal audit plan, adequacy and effectiveness of the internal control system, significant audit observations and monitors the sustainability of remedial measures. It also reviews functioning of the Whistle Blower mechanism and reviews the action taken on the cases reported.

The efficacy of the internal checks and control systems is validated by self-audits and verified by internal as well as statutory auditors.

The fiscal year 2024–25 unfolded against a backdrop of global economic turbulence, marked by escalating trade tensions and policy uncertainties. Despite these challenges, India's economy demonstrated remarkable resilience, underpinned by robust domestic consumption, strategic policy interventions, and a favorable monsoon season.

India's GDP growth was revised to 6.4% for 2024–25, reflecting sustained economic momentum amidst global headwinds. 2024-25 retail inflation reached a six-year low of 4.6%, highlighting the effectiveness of the Reserve Bank of India's pro-growth monetary policy, which has successfully balanced economic expansion with price stability. These measures are expected to further stimulate economic activity in the coming quarters.

India's private sector ended 2024-25 on a strong note, driven by faster growth in manufacturing. The ‘Composite PMI Index' held steady at 58.6 in March, above its long-run average of 54.7, indicating robust expansion. Manufacturing outpaced services, with factory output rising at the fastest pace since July 2024. The Manufacturing PMI climbed from 56.3 in February to 57.6 in March, reflecting improved operating conditions. Gains in output, new orders, and purchase stocks signaled strong demand, with new orders continuing to rise for over three-and-a-half years, albeit at a slightly softer pace than the previous month. In the automotive sector, the industry continued its upward trajectory in 2024-25, marking a 7.3% year-on-year increase in domestic sales. Exports across the automotive industry rose by 19% to over 5.3 million units, indicating strong international demand. The passenger vehicle (PV) segment saw its highest-ever sales at 4.3 million units in 2024-25, however with a modest growth rate of 2% over the previous year. Utility vehicles (UVs) were the primary growth drivers, accounting for 65% of total PV sales. The two-wheeler segment performed robustly, growing by 9.1% with a sale of 19.6 million units. Notably, electric vehicles (EVs) gained significant traction, with total EV registrations reaching 1.97 million units in 2024-25 registering a growth of 16.9% over 2023-24.

Despite a broadly optimistic outlook, the year was not without its headwinds. Fluctuating commodity prices, especially for key raw materials like steel and aluminum, introduced cost pressures across the value chain. The erratic nature of monsoons in 2024 also affected rural consumption patterns, indirectly dampening demand for entry-level vehicles and two-wheelers. Additionally, while electrification is gaining traction, the pace of infrastructure development—particularly EV charging networks—remains uneven, posing integration and adoption challenges. Regulatory shifts around emission norms and safety standards, while necessary for long-term sustainability, continue to require swift adaptation from component manufacturers. Further, geopolitical tensions and supply chain vulnerabilities have underscored the importance of building more localized and resilient operations. Despite these hurdles, the Indian passenger vehicle industry solidified its position as the world's third-largest market. Amidst these challenges, we remain steadfast in our pursuit of innovation, operational agility, and excellence. Our organization continues to invest in cutting-edge technologies, process automation, and sustainable manufacturing practices. We are actively expanding our portfolio in the electric mobility and alternate fuel segments, aligning with the nation's green transition goals. Our commitment to customer-centricity, backed by strong R&D and strategic collaborations, enables us to anticipate shifts and deliver high-performance, future-ready solutions. As the industry evolves, we are resolute in our ambition to lead with foresight, drive transformation, and contribute meaningfully to India's journey as a global automotive powerhouse.

Following are the top risks and corresponding mitigation measures reviewed by the Risk Management Committee.

1. IT infrastructure, cyber security, and data protection Risk:

The interconnected nature of business processes in the digital environment is increasing the risk of cyber threats potentially disrupting Company's business operations causing financial losses or reputational damage.

The organization ensures safe handling of the company's sensitive data as well as that of our business partners and associates by implementing appropriate controls. These efforts are complimented by detailed internal guidelines, rules of conduct, extensive periodical training, continuous monitoring as well as various assessments. Data Protection Management System (DPMS), Information Security Management System (ISMS) and Cyber Security Management System (CSMS) stakeholder groups work together to monitor and mitigate associated risks.

2. Human resource – Industrial relation (IR) risks Risk: The possible IR risks include stoppage of production, increased operational cost, loss of working hours and potential legal issues.

Mitigating measures:

IR related issues are managed in a fair and firm manner with regular engagement by all the stakeholders. Policies and engagement contracts are harmonized and digitized across plants to ensure effective compliance monitoring.

Our business efficiency depends on timely availability of raw material and efficient distribution systems. Supply chain bottlenecks caused by geo-political developments, regional conflicts and social unrest impact our business operations. Shipping routes in the Red Sea were impacted by the regional conflict in the Middle East leading to increased fuel consumption by ships due to re-routing, higher container costs, longer delivery time and overall freight costs.

The Company is closely monitoring geo-political and voyage risks to ensure there is no impact on its operations. Localization projects for majority of imported parts was successfully implemented. Inventory levels were optimized through effective business planning and forecasting to avoid fulfillment issues.

The Company market share is influenced by changing consumer behavior, high dependencies on customers, competitive business environment and change in product portfolios. New entrants are positioning themselves in non-mobility business through low-cost solutions.

The Company is implementing operational efficiency improvement initiatives to increase cost competitiveness through new product innovations. The Company is also investing in strategic projects to expand its market presence.

Unfavorable macro-economic environment, such as fluctuating interest rates, inflation, currency devaluation and systemic financial crisis scenario, could lead to a global slowdown in growth, market recession and may affect economic stability.

Our investment portfolio consists of fixed deposits in highly rated major banks, highly liquid mutual funds and hence we do not foresee any major risks in our investment portfolio. Investments and hedging are carried out as per clearly defined internal guidelines specifying processes and responsibilites. The Company aims at reducing foreign exchange risks by hedging its net exposures and constantly monitoring the risks.

The Indian automotive industry entered 2024-25 on a solid foundation from 2023-24, with overall vehicle production (excluding two-wheelers) increasing by 3.5% YoY despite challenges posed by global headwinds and general election year.

Passenger vehicle production rose by 4% YoY driven by strong SUV demand, though growth was limited by reduced vehicle replacements and weak demand in hatchbacks resulting in elevated inventory levels that improved by fiscal year-end.

The heavy commercial vehicle (HCV) segment declined by 2% YoY due to a high base from previous year and a shift in demand towards higher tonnage vehicles. However, the bus sub-segment showed recovery indicating renewed momentum in public transportation.

LCV production declined by 5% YoY, primarily due to intensifying competition from the electric three-wheelers in lower tonnage (<2t) category, which are preferred for urban e-commerce and last-mile logistics.

The two-wheeler segment grew by 11% YoY, supported by improved rural and urban demand for premium models, with potential for further growth from income tax revisions in the Union budget.

The three-wheeler segment increased by 7% YoY, driven by demand in passenger transport and last-mile delivery, particularly in e-commerce and food delivery, with rising electric three-wheeler adoption.

The tractor segment experienced 8% YoY growth, with a strong recovery in the second half of the fiscal year due to favorable monsoon rainfall, increased Minimum Support Prices (MSPs), and improved rural infrastructure activity, overcoming earlier challenges.

1. Introduction:

The Bidadi Plant in Ramanagara District, Karnataka, is about 50 KM away from the Bangalore City towards Mysore. The Plant plays a pivotal role in catering to the Power Solutions business segment need of India and global with an impressive portfolio spanning from the 97-year-old A-pump to cutting-edge Lambda Sensors & NOX Sensors, along with 10 other product offerings.

In 2024-25, BidP achieved significant milestones, consolidating its position as a future-ready smart manufacturing hub and Value Chain. The plant made remarkable strides in areas of sustainability, safety, operational efficiency, digitalization, and employee engagement, highlighting its unwavering dedication to continuous improvement.

2. Sustainability & Safety:

BidP's focus on sustainability and safety was a cornerstone of its operational strategy in 2024-2025. Noteworthy achievements include:

• Environmental, Health, and Safety (EHS) Excellence: BidP stands first amongst Bosch India plants for Work Safety & Resource conservation. These accolades underscore the plant's commitment in maintaining world-class safety standards.

• Waste Reduction and Sustainability Initiatives: BidP achieved zero waste-to-landfill. This achievement was propelled by the successful initiative "Project Vasundhara", which focuses on waste reduction and resource optimization.

• Sustainability Awareness: Efforts to cultivate a sustainability-driven culture were ramped up with associate awareness programs, including poster campaigns and street plays. The plant's continued efforts toward CO2 and water neutrality further, reinforces its commitment to environmental stewardship.

3. Operational Excellence:

Operational excellence remains a central pillar of BidP's ongoing transformation. The plant made substantial advancements in digitalization, operational performance, and quality management etc.,

• Production Milestones: BidP achieved its highest turnover ever in a single month during March' 2025 while reaching significant milestones in other key Products.

CBX: 1 millionth Pump

Rail: 10 millionth Rail production

LSFmH: Ramping up from 1.59 million pcs to 3.6 million pcs.

• Digital Transformation & Industry 4.0: BidP continues to be a leader in the implementation of advanced analytics and Industry 4.0 solutions. This digital evolution has led to the enhancement of the Bosch Production System (BPS) and strengthened quality controls, enabling increased productivity, and improved operational efficiency.

• Quality Excellence: BidP's unwavering focus on quality highlights the plant's commitment in maintaining the highest standards of product quality and customer satisfaction.

• Cost Efficiency: Cost Competitiveness is driven by enabling Cost Transparency and cost reduction through Ratio Projects, digital and technological solution underscoring the plant's continuous pursuit of Operational Excellence.

• Compliance & Risk Management: Strong adherence to Statute, Standards, global quality, and risk management standards remains fundamental to the Plant Operations.

4. Employee Engagement and Development:

BidP recognizes that its workforce is integral to its success. The plant's focus on fostering an engaging, inclusive, and supportive work environment is evident through initiatives like:

• Psychological Safety and Employee Engagement: The "Inspired Minds @work" initiative continues to promote psychological safety, driving employee engagement and enhancing the overall work experience.

• Diversity: Diversity at BidP is not just about hiring a wide range of individuals but also ensuring that they feel valued, respected and are able to contribute fully with zero-tolerance towards discrimination. Best Safe Women Worker (1st & 3rd place) under Mega Industry Category by the Director of Factories, Boilers & Health, Govt. of Karnataka is a true testament of Diversity and Inclusion

• Labor Model Transformation: The plant saw a considerable progress in its working model and culture reflecting BidP's efforts to nurture a competent, inclusive, and competitive future-ready workforce.

5. Shaping the Future, Together:

As a key player in Bosch's global network, BidP remains committed to maintain its leadership position as a smart manufacturing hub. A transformative journey has begun at BidP strengthening its position as a future-ready plant, where innovation, resilience, Collaboration, teamwork, Excellence drives progress. The initiative is a testament to what can be achieved when people come together with a shared vision and an unshakable belief in excellence- "My Bidadi My Pride."

The Bosch Nashik Plant, located in Maharashtra and spread across 100 acres, has been a cornerstone of Bosch India's manufacturing operations since its establishment in 1972. As the company's second manufacturing site in India, the Nashik plant was designed to address the growing demand for automotive components and industrial products, both for the Indian market and beyond. Specializing in the production of Common Rail Injectors (CRI), nozzles for diesel injectors (both common rail and conventional), and off-highway applications, the plant has played a key role in the company's success over the decades. In an environment characterized by rapid change and market challenges, the Nashik plant has consistently demonstrated resilience, adaptability, and innovation. This is reflected in the plant's strategic actions around people development, customer engagement, value chain excellence, and growth. Aligned with Bosch's vision of "Be the first choice of mobility products globally," the Nashik plant continues to focus on enhancing all aspects of its operations, including people, processes, and localization.

At the heart of the plant's transformation is the implementation of the Bosch Production System (BPS), which has guided the shift from conventional manufacturing methods to more advanced approaches such as Industry 4.0, automation, and digitalization. This journey has not only led to significant improvements in productivity and efficiency but has also garnered external recognition. Notably, the Nashik plant received a special appreciation award from a customer for its innovative, "AI-based solution in the EDM process" area.

Moreover, the Initiatives like "Machine capability improvement and Rework Free Value Stream" has delivered tangible results, including enhanced operational efficiency, reduced costs, and improved working conditions for employees. These initiatives have driven the plant's growth and positioned it as a leader in both operational excellence and innovation.

Bosch Nashik has demonstrated a strong commitment to environmental sustainability. The plant has implemented numerous green initiatives, such as solar power generation, afforestation, watershed development, and the rejuvenation of percolation tanks. These initiatives underscore the plant's initiative-taking role in supporting environmental conservation and contributing to a greener, more sustainable future for generations to come.

The Nashik plant has reached several significant milestones over the past year. A key achievement has been the production of the 70 millionth Valve set and 50 millionth CR Injectors. These are testament to the plant's commitment to quality and continuous improvement. Furthermore, the plant hosted important industry visits, such as the VCS. Nxt and F2F IPN meet focused on critical key processes like C-coating, further solidifying its reputation as a leader in technological innovation.

As part of Bosch's strategic focus on Value Chain Excellence, the Nashik plant has made significant strides in improving operational maturity. These efforts have directly contributed to the plant's improved efficiency, resulting in an investment efficiency through frugal engineering projects. These initiatives have positively impacted the plant's Free Cash Flow, further reinforcing its financial sustainability. The plant's commitment to optimize material and information flow through a Flow-Oriented Layout has resulted in reduction in throughput time, significantly enhancing production efficiency.

Digitalization has been a key driver of the plant's success, with innovative AI and IoT-based solutions delivering substantial savings. The integration of AI in optical inspection, predictive models for anomaly detection, and smart IoT sensors for power cost reduction has led to substantial savings. These digital initiatives not only demonstrate the plant's future-readiness but also position it as a leader in Smart Manufacturing.

The Nashik plant has also emerged as a torchbearer for quality and problem-solving excellence. Its application of the Shainin technique in problem-solving has generated significant cost savings. This achievement earned the plant global recognition, including the prestigious Dorian Shainin Best Plant Award in the category of "Use of Shainin in Bottom Line Improvement" and the "Best RT5 Manager Award".

The Nashik plant is poised for continued success, driven by its commitment to operational excellence and cost competitiveness. Looking ahead, the focus will be on further enhancing the plant's smart manufacturing capabilities, exploring factory-of-the-future initiatives, and continuing to embrace digitalization and automation to maintain a competitive edge in the evolving mobility landscape. As we move forward, the Nashik plant will remain a key enabler of Bosch India's overall growth strategy, contributing significantly to both local and global markets while maintaining a strong commitment to sustainability and operational excellence.

Established in 1999, Jaipur Plant is a manufacturing facility for VE pumps and conventional Injectors (Nozzle Holder Assembly) having applications in Light and Heavy commercial vehicles and tractors. In 2024, plant proudly celebrated 25 glorious years of excellence, innovation, and unwavering commitment to shaping a brighter future.

Backed by a strong culture of manufacturing operational excellence, the plant has evolved into a cost-effective, agile, and digitally empowered facility – making it a preferred business destination. Driven by its vision UDAAN.NXT, plant has always been a front runner in Customer Centric culture and Operational Excellence (Safety, Quality,

Cost, Delivery & Digitalization). In Quality JaP has been awarded from Cummins, CNHi and John Deere for Zero defects & outstanding customer centric approach. JaP has sustained a zero-accident record for over 1000 days – a remarkable milestone that reflects its deep-rooted safety culture. This achievement is further reinforced by prestigious recognitions such as Platinum Award by CII for the "Best Organization Adopting exemplary safety practices."

These outcomes are result of a strong culture of behavior - based safety - making safety not just a priority, but the way of working at Bosch Jaipur. Digitalization plays a pivotal role at the Bosch Jaipur plant, with technologies such as MES(Manufacturing engineering systems), Artificial Intelligence, Data Analytics, Video Analytics, and Gen-AI solutions strengthening the robustness and reliability of systems and processes. MES has supported in OEE improvement of 25-year-old machines up to a level of 85%. Gen-AI solutions have enabled strategic process simplification and standardization, reducing dependency on high-skill operations. The team in Jaipur is able to leverage Digitalization for Energy conservation as well, more than 150 MWh of energy was saved in 2024 by using Artificial Intelligence in managing the Air compressors operations. JaP has also filed patent for same.

Nurturing People is key strategy under our vision UDAAN. NXT at Bosch Jaipur, our engaged and energized employees are our greatest strength. We build a culture of high performance through high Trust. Jaipur plant has been rated highest across all Bosch Plants, Locations in India in the Trust Index third time in a row in the GPTW survey by "Great Place to Work (GPTW)" organization. Plant is also known for high employee involvement in generating ideas and driving a culture of CIP (continuous improvement process) and this deep-rooted culture has achieved 32 implemented ideas per associate in 2024. Plant is continuously focusing on building people competencies & hence developing CoC (Center of competence) for 3D printing, Testing technology, Heat treatment technology, Grinding & finishing technology, Honing technology, and Gear set manufacturing.

Sustainability being key focus area, plant has expanded its share of green energy to 40% through solar facility and water conservation efforts like a rainwater reservoir storage which has avoided freshwater withdrawal of 12000 KL. Solar String analysis (an AI based algorithm) helped plant to improve solar energy generation efficiency by 8%. Project has been recognized at various internal & external platforms like ACMA & CII.

In line with our vision UDAAN.NXT to make JaP a preferred destination, "Destination JaP," team is consolidating VE IPN (International Product Network) business to Jaipur plant along with team from Higashi Matsuyama plant in Japan. By end 2025 entire VE manufacturing will be shifted to Jaipur and will be the only Bosch location for this product. As a part of future preparedness, the team is working on 3D printing technology which will be important considering the complexity, varieties, and small lot sizes it will be managing. The competency building of metallic 3D printing is in progress and Jaipur plant will be the hub for 3D printing for entire ROIN.

JaP is committed to work continuously towards customer centricity, growth, and operational excellence towards being a preferred business destination. Additionally, we work towards zero environmental impact from our operations and holistic development through our societal initiatives.

The Naganathapura Plant produces Spark Plugs, a product produced by the Bosch group for over a century and various kinds of Automotive Filters. Productivity improvement projects were implemented in addition to safety and quality improvement programs. The plant produced its record highest ever volumes of Spark Plugs in 2024 and has made significant progress on its transformation journey towards best performance. Digital Transformation continues to be a strategic focus area, and the Plant is moving towards improving its digital footprint for Industry 4.0 with various projects like connecting the production lines and machines to a central platform to calculate OEE and production daily on real time basis. The Plant improved its operational excellence through structured implementation of Bosch Production System (BPS) in 2024 resulting in a significant jump in the maturity assessment of the same. Spark Plugs business received increased orders for the export market, thereby Naganathapura Plant is transforming itself from being a "Local for Local" to "Local for Global" Plant. The Plant has sustained Gender Diversity with > 25% of the flexible workforce being women deployed in shopfloor in 2024. A new product Cabin Filter was launched for manufacturing in the plant in Q4 2024. The Plant became a zero liquid discharge plant a few years ago with installation of an evaporator along with a boiler and thereby exceeds the requirements specified the Karnataka State Pollution Control Board and has become a benchmark for the same. It continues to be a Carbon Neutral plant since July 2020.

Nestled in the vibrant city of Tirunelveli, Tamil Nadu, Bosch Limited's Gangaikondan Plant (GanP) stands as a symbol of Innovation, Agility, and Growth. As the youngest Power Solutions manufacturing location within the Bosch India ecosystem, GanP has quickly made its mark, emerging as a powerhouse of diversified manufacturing excellence. GanP's strength lies in its diversity. The plant manufactures an impressive range of 9 products across 4 major Business Units, demonstrating its ability to cater to a broad spectrum of customer requirements. This wide-ranging capability not only showcases the plant's technical depth but also its strategic importance in Bosch's global manufacturing network.

The journey of GanP over the past decade has been nothing short of remarkable. The plant achieved a phenomenal 4 times growth in Total Net Sales (TNS), crossing 8 billion , a testament to its robust operations and customer-centric approach. With an export share exceeding 20%, GanP is a key contributor to the Bosch India Value Chain Strategy (VCS), strengthening Bosch's position in both domestic and international markets.

Operational excellence is at the heart of GanP's success story. The plant has achieved significant milestones across key value streams, consistently driving productivity, quality, and efficiency. Adding to its growing portfolio, GanP was recently awarded the Microflex Connector project, recognized as a Future Core Product. With high potential volumes projected in the coming years, this new project positions GanP at the forefront of emerging technologies, ready to cater to the evolving needs of the automotive and industrial sectors. In a significant move towards environmental responsibility, the plant implemented a 1500 KL rainwater harvesting pond, resulting in a 33% reduction in freshwater consumption. This achievement aligns with Bosch's global commitment to sustainability and reinforces GanP's role as a green manufacturing leader.

In recognition of its outstanding community initiatives, GanP was honored with the Diversity, Equity, and Inclusion (DEI) award from CII for its impactful Kani Tribe project uplifting the lives of tribal people. This project embodies Bosch's belief in inclusive growth, ensuring that economic development goes hand in hand with social empowerment. 2025 marked a major milestone for GanP as it celebrated its 10th anniversary with a series of vibrant events. The celebrations included various themes reflecting the plant's values and culture, culminating in a memorable CSR Day, a Family Day, and the inauguration of a new canteen – a fitting tribute to the journey of GanP and the people who made it possible.

Power Tools Manufacturing Plant, Chennai (Tamil Nadu) The Power Tools facility, spanning approximately 7,000 sq. mts, is situated at the SIPCOT Industrial Growth Center in Oragadam, Tamil Nadu. As of April 01, 2024, Power Tools India will be recognized as a distinct region, enabling the plant to consolidate not only local but also SAARC and Rest of the World (RoW) volumes for its global strategy. The Chennai Plant is the leading Power Tools manufacturer in India. It primarily produces Small Angle Grinders, Large Angle Grinders, Marble Cutters, Blowers, Drills, and two-kg Hammers, along with their respective motors. The plant supplies Blowers to the entire global market. To date, Chennai Plant has achieved a local component share of over 70% and a product localization rate of over 74%. A standout feature of the plant is that all shopfloors are women. The plant is ISO 14001:2015 and ISO 45001:2018 certified and has reached carbon neutrality, through in-house solar energy and the purchase of green energy. In 2024, the plant produced more than 2 million tools, highest in the history of the plant since inception. As part of the Region for Global Strategy, the Power Tools Board Management established an India Engineering Center in June 2023. The team is equipped with capability required for engineering and developing corded power tools. In alignment with the ‘Make in India' initiative and to support future-proofing efforts, it is also focusing on the localization of components and embracing digitalization in key business processes to boost operational efficiency and productivity.

Optimized Operations

ChiP's relocation from rented premises to Bosch-owned premises, is set to enhance its output.

In continuation of our smart campus initiatives at Adugodi, we upgraded our R&D office & lab infrastructure at South campus on par with the newly constructed landmark buildings. Key highlight is the introduction of Energy efficient ventilation fans in the test labs. These are 50% more energy efficient compared to old fans. Another significant milestone is the introduction of Phase 2 solar group captive resulting in ~75% use of Green energy. After the relocation of manufacturing operations from Bengaluru to Bidadi, one of the vacant manufacturing hangars at Bengaluru is being converted into a modern lab for our software company BGSW. This is expected to be operational in 2HY2025. With this completion, the engineering labs spread across multiple locations in Bengaluru will be consolidated. This will enable Bosch to showcase capability demonstration and end to end solutions in product development.

Another highlight was the construction of own in-House Kitchen cum Dining facility at Adugodi. This is a key Investment in Employee well-being. With such a large workforce, food service became a significant focus. We recognized the challenges of outsourced dining services and made a strategic decision to build a modern in-house kitchen facility to better meet the nutritional needs of our associates.

The new kitchen spans 5,290 sqm across three floors: the ground floor houses the kitchen, the first floor hosts the dining area, and the second floor includes technical services. The kitchen is fully air-conditioned and equipped with electric cooking appliances and biogas systems to reduce environmental impact.

Key features of the facility:

• State-of-the-art ventilation with exhaust hoods and a fire suppression system for safety.

• Cold storage rooms, change rooms, and food storage areas to ensure smooth operations.

• Building Management Systems (BMS) and CCTV surveillance to monitor operations in real time.

This facility not only meets the growing demand for meals across the campus but also ensures food quality and safety for over 10,000 associates.

Another initiative towards sustainability is the plan for a seamless connectivity from the metro station adjacent to our campus via an underground tunnel. Design activity is in progress and construction activity by BMRCL has commenced and is expected to be ready in 2HY2026. Towards water conservation, we have introduced recycling and re-use of treated water for HVAC applications. Bio-diversity measures like butterfly garden, bird nests & increase in green cover were also undertaken in our south campus.

In our pursuit of enabling growth and competitiveness for Bosch in Region India, we remain steadfast in our commitment to empowering our businesses and functions with a digital edge, by enhancing all human experiences, improving profitability, and making RBIN a #AI First Enterprise We remain steadfast in focusing and achieving our key goals viz., a. Strengthening our Digital Core, b. Modernizing our infrastructure and application architecture, c. Optimizing total cost of ownership, d. Enabling overall experiences covering employees, customers, and partners e. Creating an Intelligent Enterprise and f. Ensuring compliance.

Our endeavor is well enabled by excellent collaboration internally with our plants, functions, and business GBs. Our partner eco-system renders us with the agility and flexibility in managing the flow of our digitization requirements. We have also strengthened our Delivery excellence to offer greater customer satisfaction and experience of interacting with team BDO.

1. ERP Process Optimization: Our ERP process specialist team is actively conducting process maturity assessments across all locations and process areas, reinforcing our sustained focus on process harmonization and optimization. These improvements are vital in preparing the organization for embracing digitalization and operational excellence.

2. Focus on Data Quality: Ensuring clean, accurate, and accessible data remains a key priority, forming the backbone of reliable insights and effective decision-making. Through sustained efforts under the Ready to Drive (Continuous Standardization and Improvements) initiative, we continue to drive data quality improvements and provide ongoing support to plant operations, enabling a stronger foundation for data-driven excellence.

3. IT Cost Optimization: In our drive for cost optimization, we have maximized IT efficiency through asset usage enhancement, removal of unused software, assignment of appropriate user licenses. This rationalization enables resource allocation to strategic priorities, fostering sustainable growth for stakeholders.

4. Application Lifecycle Management: With an eye on scalability and simplicity, we undertook a major rationalization of our digital landscape. Applications were streamlined, and redundant systems were phased out, resulting in a more agile and cost-effective portfolio. Various state of the art applications for Travel, Leave, Performance Management, and People Development were successfully deployed, aiming to streamline processes and improve efficiency. Across the organizational landscape, mobile applications have emerged as essential tools for optimizing operations and boosting productivity.

5. Customer & Employee Experience: We continue to advance our digital journey by enhancing both customer and employee experiences through data-driven solutions. Focused efforts were made to improve transparency, responsiveness, and decision-making support for customers via smarter digital interfaces and strengthened data capabilities. On the employee front, existing mobile applications were modernized and enhanced driving greater engagement, seamless communication, and operational efficiency.

6. Customer-Centric Innovation: Advancing our commitment to customer-centric innovation, we have established a platform to provide seamless information exchange between Bosch and its customers, strengthening our "zero distance to customer" approach. By enhancing connectivity and transparency, we are better equipped to address evolving customer needs and ensure meaningful, data-driven engagement.

7. Partner Experience: We continue to strengthen our external digital ecosystem by integrating intelligent solutions across key partner touchpoints. These efforts support our broader vision of fostering a connected, collaborative, and digitally empowered partner network to drive sustainable growth.

8. Center of Excellence – Hyper Automation: The Center of Excellence for Hyper automation is persistently nurturing a community of citizen developers poised to accelerate automation adoption across our operations. In our unwavering commitment to innovation, we have hosted three "Speedathon" (a fusion of Speed week and Hackathon), serving as dynamic platforms for swift solution development and deployment. Accelerating from idea to implementation, these "Speedathons" leverage trained citizen developers from the COE, expediting the realization of automation projects.

9. Center of Excellence – AI and Analytics: In today's data-rich world, Bosch India recognizes the immense potential of data analytics to optimize operations and drive strategic decision-making. To unlock this potential, we have established a Center of Excellence (CoE) for Data Analytics. This initiative aims to cultivate a robust analytics capability across all major functional teams within the organization. Key Achievements being: a. Digital fluency 2.0 – 30+ associates trained with Advanced Analytics skills. b. Dashboards delivering business insights for 10+ divisions and functions. c. Sustenance of community of practitioners (100+) with multiple advanced analytics competency We continue to explore and adopt next-generation technologies with a sharp focus on practical impact and scalability. Our GenAI initiatives have progressed from pilot phases to implementation, targeting areas such as sales enablement, customs classification, and R&D knowledge management which were also showcased at BBM AI Day 2024. These solutions are helping streamline operations, enhance decision-making, and drive long-term efficiency by embedding intelligence into everyday processes.

10. Culture and Communication: Driving a digital transformation goes beyond technology—it begins with people. Our Culture & Communication efforts focus on fostering a shared digital mindset and encouraging active participation across the organization. Through a structured framework, we are actively shaping the narrative around "Being Digital," with increasing visibility across global platforms.

11. Access Management: Continued focus on strengthening access governance has led to improved process adherence and system integration. Key initiatives have enhanced control, reduced manual interventions, and supported secure and streamlined user lifecycle management across the organization.

12. Compliance: We continue to leverage digital technologies to strengthen our compliance posture and ensure seamless adherence to regulatory and statutory requirements. Localization, automation, and standardization have improved agility, transparency, and audit readiness across the organization. Trusted Information Security Assessment Exchange (TISAX) certification completed successfully for Nashik, Jaipur and Gangaikondan plants.

13. Collaboration and Business Partnerships: We continue our focus on digital transformation by strengthening collaboration across our manufacturing plants and corporate functions. With a strong pool of external partners identified, we are sustaining momentum and ensuring agility in responding to evolving business needs through robust IT and digital partnerships.

14. Plant Engagements and Roadshows: Engagement across plant locations was further strengthened this year with the introduction of roadshows, site interactions and review mechanisms. These initiatives have played a key role in creating awareness, accountability and fostering a culture of collaboration.

15. Delivery Excellence: Through the Triage process facilitated by the PMO, we receive and prioritize ideas pertaining to IT and Digital solutions. These initiatives are assessed based on their business value, feasibility, and alignment with strategic priorities. With this we aim to drive impactful projects across the organization.

We received numerous industry awards and accolades this year, recognizing our commitment to digital transformation. Bosch India was honored with two prestigious Confederation of Indian Industry - Digital Transformation Award (CII-DX) 2024 for our exceptional initiatives in Auto Goods Receipt and Digital Fluency 2.O. Asian Export Awards. Additionally, we are delighted to have been awarded Manufacturing Asia Export Awards 2024 for our innovative transport management solution, which effectively addresses business challenges by leveraging digital technologies.

Strategic direction, continuous improvement, and high-performance levels are key to future-proofing the business and ensuring long-term profitability. With this thought, VCS. NxT, the India Operation Strategy, was started in 2024. This strategy complements the Bosch Corporate Operations Strategy and is aimed at driving impactful growth through customer delight, innovative industrialization, people excellence, and operational excellence. The strategy, with a vision to make Bosch India ‘a preferred global value chain partner' focuses on being competitive and operating at a worldwide benchmark level with respect to Safety, Quality, Cost, and Delivery. We are convinced that local manufacturing at a world-class level will enable both, local for local and local for global. The strategy will enable our local manufacturing sites to produce products sold in India and beyond. The entire program is steered and driven by the Agile Operations Governance Model. The program spans across all the entities of RO-IN and comprises 12 Strategic Action Fields. These strategic actions fields are driven by plant managers and function heads, with a team consisting of plant enthusiasts who develop and implement these strategies within their plants. This program has successfully run and is meeting the targets of both enabling and performance KPIs.

Some of the key highlights include building robust processes across manufacturing and preparing for future business by developing competencies at supplier and Bosch plants. Having the right people in our value chain is also important, and hence strategies for onboarding the right talent and developing future leaders are part of People Excellence. Finally, lean principles integrated with digital tools, implemented across sources, help build resilient value chains and continue to be a key enable in improving the value chain operational excellence.

The Data-driven Value Chain (Connected Industry – I4.0) serves as a key accelerator for boosting production performance and is one of the core strategic pillars of our Value Chain transformation. The primary objective is to reinforce a data-centric approach across the end-to-end (E2E) value chain while aligning with the RB Global standardized Bosch Manufacturing and Logistics Platform (BMLP).

A strong emphasis is being placed on building impactful AI and Generative AI use cases to drive operational excellence across our manufacturing ecosystem. In 2024, more than 100 data analytics and AI use cases have been ideated and developed, including advanced solutions such as Automated Optical Inspection (AOI) powered by supervised and unsupervised learning techniques.

In parallel, we are actively enhancing digital competencies by fostering a culture of collaborative innovation and continuous learning. This includes the upskilling of data scientists through firsthand initiatives such as data-driven hackathons at plant locations, learning-by-doing programs, and cross-functional capability building — ensuring sustainable growth and measurable business impact.

In 2024, the Bosch Production System (BPS) continued its evolution with the successful transformation from VCS to VCS.NXT, sharpening the focus on Speed, Collaboration, and Value creation across the entire value stream. This transformation was driven by BPS GO! — a structured and action-oriented approach centered around four strategic pillars: Leadership Commitment, Everybody's CIP, Waste-Free Stable Flow, and Investment Efficiency.

Leadership Commitment: This strengthened through two key initiatives:

• "Toyota Kata" Coaching: Toyota Kata Methodology enables Leaders to be good at Coaching their subordinates. Successfully cascaded at the Jaipur Plant in Q3/Q4 2024, where 5 SCIP projects were driven using Kata routines to reinforce coaching culture, structured problem-solving and scientific thinking. There were breakthrough improvements with significant results both tangible and behavioral aspects

• BPS Leadership Coaching: Leaders from various functions across plants engaged in two focused modules with experiential learning. While Module 1 focused on improving value stream performance, Module 2 focused on bringing synergies between BPS and Digital, using digital platforms and using data for high-order problem solving Everybody's CIP: This topic gained momentum through a dual-path strategy:

• "Everyone's Involvement" Strategy: Empowered associates across all levels to actively contribute to continuous improvement. Deployment of Daily Lean routines (Bottom Up) across associates at all levels helped establish rhythm, ownership, and agility on the shopfloor

• Introduction of the System CIP (SCIP) Framework (Top Down)—focusing on structured theme identification, data-backed diagnosis, cross-functional working, and result-oriented tracking Waste free Stable flow: Two major levers helped improve and stabilize flow, reduce waste, and align with customer expectations by improving the Lead time across the Value stream:

• Material and Information Flow Analysis (MIFA):

Conducted across value streams to expose hidden waste (via kaizen flashes) and streamline flow

• Digital TPT Tool (developed jointly with MFI):

Rolled out across plants to bring real-time transparency into throughput time performance, enabling faster reactions and targeted improvement actions

To be competitive, Capex spend must be minimized. With this as an objective, a strategic framework was co-created with experts across RO-IN plants. This has led to better machine utilization, increased machine flexibility, and refurbishing of old machines with new controls.

To bring in more inclusiveness, all initiatives were shared through Cross learning platform "Share & Learn" platform, held twice a month, to drive accelerated cross-learning and scalable adoption across plants.

These initiatives led to a measurable impact, with the enhanced BPS Maturity Index, demonstrating considerable progress in lean maturity, continuous improvement culture, and achieving operational excellence across in India.

Bosch wants to contribute to climate action, an aspiration it has anchored in its sustainability vision. We support the United Nations 2015 Paris Agreement on climate action and the goal formulated therein of limiting global warming to as close to 1.5 degrees Celsius as possible. With carbon neutrality (scope 1 & 2)*, we are making a measurable contribution to this goal.

* Scopes 1, 2, and 3 are used here in accordance with the Greenhouse Gas Protocol Corporate Accounting and

Reporting Standard. We have considered the effects of CO and of other greenhouse gases, as well as climate-relevant substances, to the extent that these are of relevance for the analysis. To enable comparability between the climate impact of the various greenhouse gases and substances of relevance for the climate, emissions are presented in CO equivalents. For ease of reading, we use the terms CO and CO equivalents synonymously.

As early as 2020, the Bosch Group with its more than 450 locations worldwide has been carbon neutral overall (scope 1 & 2). Four levers were used to achieve carbon neutrality: increasing energy efficiency, generating our own energy from renewable sources (new clean power), purchasing electricity from renewable sources (green electricity), and – as the last resort – using carbon credits to offset residual CO emissions.

At Bosch India, we are committed to advancing renewable energy generation and fostering sustainability through various initiatives. This includes generating renewable energy at our own facilities and establishing long-term supply agreements to support the development of new photovoltaic plants. We are also conducting trials on the use of 5% ethanol-blended diesel to explore more sustainable fuel alternatives. Our current focus is on phasing out substances with climate impact by transitioning from higher Global Warming Potential (GWP) substances to lower GWP alternatives. Bosch Limited has adopted a systematic 4E (Energy Audit, Energy Re-tuning, Energy Lifecycle, and Energy Culture) approach and is embracing digitization though the 4C approach (Connect, Communicate, Consolidate, and Cognitive).

During the financial year 2024-25, out of the total electricity demand of the company, 18.6% of the demand was met through in-house solar power plants. The volume of purchased green electricity from new plants (PPA) and corresponding guarantees of origin amounted to 128GWh fulfilling 81.4% of total electricity requirement. The emissions from stationary and mobile combustion were compensated with carbon credits, which amounted to 13% of the total energy requirement.

At the same time, we also want to reduce emissions produced outside Bosch's direct sphere of influence (scope 3), for example at suppliers, in logistics, or when our products are used. Our aim is to reduce these upstream and downstream emissions by 30% in absolute terms by 2030, compared with the baseline year 2018 – irrespective of our company's growth.

Bosch requires water for cooling systems, sanitary facilities, and technical processes. We are focusing on process improvements, recycling, and the use of rainwater to further reduce water withdrawal at our company locations. In regions with strained water supplies, water is already reused, or rainwater is used wherever possible. To ensure that the funds for achieving water targets are used efficiently, water coordinators in the divisions identify local savings potential and implement suitable measures together with those responsible at the sites concerned.

Measures to protect and promote associates' health and provide a safe working environment always are a top priority for Bosch. Internal company regulations define the relevant principles, organization, and responsibilities within the Bosch Group. Every year, Bosch Group identifies and assess potential occupational safety risks and classify them by priority. For this purpose, we refer to accidents reported in the Incident Management System and use findings from internal audits under ISO 45001 or the audits of the internal audit department. On this basis, we develop specific risk mitigation programs and define the focal points for subsequent audits. We conduct an in-depth analysis of any work-related accidents causing at least one day of downtime, irrespective of whether Bosch associates or third-party staff are involved. In the event of serious accidents, special analysis methods are used to perform a detailed investigation of the root causes and to derive specific measures. Based on internal regulations, workplace or activity-related hazard assessments are also conducted regularly. These are used as a basis for determining any preventive and protective measures needed, and our associates are instructed accordingly.

In 2024, Bosch India continued to advance its Value Chain Strategy (VCS.NXT), placing a strong emphasis on the "Zero Accident" initiative within the sustainability pillar. This year, we have prioritized the deployment of Behavior Based Safety (BBS) across various locations. We have developed a comprehensive observer program, complete with observation checklists, to assess associates based on the BBS principles of Behavior Observation Feedback Process (BOFP).

Our approach to fostering a robust safety culture is anchored in a three-pillar framework: MAE (Machines and Equipment) safety, Human Factors, and Management Systems. We have made significant strides in enhancing MAE safety by focusing on key areas such as the standardization, effective interruption management, and the prevention of human error.

Our enabling and leading KPIs have shown marked improvement, reflecting our commitment to safety. For instance, we have seen better performance in near miss reporting closure rates and a strengthened culture around first aid reporting. These metrics not only demonstrate our initiative-taking approach to safety but also highlight the engagement of our associates in cultivating a safer workplace.

Through these initiatives, we aim to reinforce our commitment to safety and ensure that all associates are actively involved in fostering a culture of safety, driving us closer to our goal of zero accidents.

At Bosch India, quality is deeply woven into our commitment to achieving ‘Zero Defect' across the value chain, underscoring our dedication to operational excellence and continuous improvement. Aligned with our "Quality First" pillar within the Value Chain Strategy, we continue to focus on enhancing customer perception and delivering customer delight. This commitment is driven by key enablers such as fostering trust-based customer relationships, leveraging data-driven insights, strengthening process robustness, enhancing associate competency and skills, and advancing supplier improvement initiatives. Over the past year, we have made notable progress through collaborative projects with customers, the structured application of problem-solving methodologies like Shainin, data-centric analysis, and focused training programs for all associates. A key accelerator has been the Q-Mindset Drive across Bosch India plants—embedding a culture of quality through initiatives such as reinforcing Q-Basics, proactive problem prevention campaigns, the ‘Learn to See' program to see the unseen, and the Q1st Associate initiative that recognizes and motivates associates who actively identify and address deviations on the shopfloor.

In 2024, our commitment to excellence translated into tangible improvements across key quality metrics. We achieved a 17% reduction in ‘0 km' customer incidents over the previous year (OPY), demonstrating our focus on delivering defect-free products. Logistics incidents saw a significant reduction of 48% OPY, reflecting enhanced efficiency across our supply chain. Additionally, strengthened quality control measures led to a 14% reduction in Internal Defect Costs OPY, reinforcing our pursuit of operational excellence. Crowning these achievements, we were honored with 15 prestigious awards from our valued customers in recognition of our high-quality product delivery and outstanding quality performance.

As we look ahead, customer delight remains our True North, inspiring us to continuously innovate, raise our benchmarks, and exceed expectations in every interaction with our valued customers.

During the year under review, the Company won several awards for excellence. They are:

In accordance with the provisions of the Companies Act, 2013 and Articles of Association of the Company. Mr. Sandeep Nelamangala (DIN: 08264554) retires by rotation at the forthcoming Annual General Meeting and is eligible for re-election.

Mr. S.V. Ranganath, Independent Director completed his second (2nd) term on the closing hours of June 30, 2024. The Board places on record their deep appreciation of the valuable contributions made by Mr. S.V. Ranganath to the growth and profitability of the Company.

The Board of Directors has, in its meeting held on May 27, 2025, on the recommendation of the Nomination & Remuneration Committee and subject to the approval of the Members of the Company, approved the re-appointment of Mr. Guruprasad Mudlapur as a Managing Director for term of 2 years from July 01, 2026, to June 30, 2028. The Board of Directors has, in its meeting held on May 27, 2025, on the recommendation of the Nomination & Remuneration Committee and subject to the approval of the Members of the Company, approved the re-appointment of Mr. Sandeep Nelamangala as a Joint Managing Director for term of 3 years from July 01, 2026, to June 30, 2029. Your Directors recommend the re-appointment of Mr.GuruprasadMudlapur'sandMr.SandeepNelamangala's proposed resolutions to be passed by requisite majority in the ensuing Annual General Meeting.

As on the date of this report, the following persons have been designated as the Key Managerial Personnel of the Company pursuant to Section 2 (51) and 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014: (a) Mr. Guruprasad Mudlapur - Managing Director and Chief Technology Officer (b) Mr. Sandeep Nelamangala - Joint Managing Director (c) Ms. Karin Gilges- Chief Financial Officer (d) Mr. V. Srinivasan – Company Secretary and Compliance Officer.

All the Independent Directors of the Company meet the criteria of independence as provided under subsection (6) of Section 149 of the Companies Act, 2013 and Regulation 16(1)(b) of SEBI(LODR) Regulations, 2015. Declarations to this effect have been received from them. The Independent Directors of the Company have registered themselves with the databank maintained by the Indian Institute of Corporate Affairs ("IICA") and are either exempt from the requirement to undertake online proficiency self-assessment test or passed the same. The Board is of the opinion that all the Independent Directors are persons of integrity and possess relevant expertise and experience (including proficiency).

The Company familiarizes its Independent Directors with their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, etc., through various programs. These sessions are delivered upon induction of a new Director, as well on an ongoing basis.

Regular presentations are made at the Board Meetings by the Executive Directors and other Senior Management persons which gives an opportunity to the Directors to interact with the Management and get an overview of the operations and familiarize with matters related to the Company's values and commitments. The Directors are provided with all information on regular basis to enable them to have a better understanding of the Company, its operations, and the industry in which it operates. The Directors are also made aware about their roles and responsibilities on regular basis.

For details of familiarization programs of the Independent Directors and number of hours please refer to the Corporate Governance Report.

In line with the provisions of the Act and the Listing Regulations, the Nomination & Remuneration Committee and the Board have conducted an annual performance evaluation of its own performance, Committees, and individual Directors.

For details of the performance evaluation including evaluation criteria for Independent Directors, please refer the Corporate Governance Report.

During the year under review, five (5) meetings of the Board of Directors were held. The particulars of the meetings and attendance thereat are mentioned in the Corporate Governance Report.

As on the date of this report, the CSR Committee comprises of Dr. Gopichand Katragadda as its Chairperson, Ms. Hema Ravichandar (Independent Director), Mr. Soumitra Bhattacharya (Non-Executive Director) and Mr. Guruprasad Mudlapur (Managing Director), as its members.

The CSR Committee oversees the Company's CSR initiatives. Details of the CSR Committee meetings and attendance thereat forms a part of the Corporate Governance Report.

The Board of Directors at its meeting held on January 28, 2025, amended the CSR Policy. The Policy inter-alia deals with the objectives of the Company's CSR initiatives, its guiding principles, focus areas, governance structure with roles and responsibilities of the CSR Committee, implementation plan, monitoring and evaluation plan and reporting framework effective from April 01, 2025.

1. Employment and Livelihood Enhancing Skill Development

a. BRIDGE (Bosch's Response to India's Development & Growth through Employability Enhancement): BRIDGE is an 11-year-old vocational training initiative that has skilled over 110,000 less-educated youth with industry-relevant employability skills, leading to their entry into entry-level positions in the service industry. The program combines classroom training on soft and life skills with On-the-Job Training (OJT), providing underprivileged, unemployed youth with opportunities for suitable employment. As on 31st March, 16,699 youth had completed their training and 5941 were undergoing training youth across 24 states and 4 union territories were trained through 400+ active BRIDGE partner centers. The program reached 57% female beneficiaries, and 68% of the participants were employed. This year, we also partnered with the Department of Industrial Training and Employment (DITE), Government of Karnataka and Department of Skill, Employment and Entrepreneurship (DSEE), Government of Rajasthan to establish 20 BRIDGE training centers at Government ITIs - 10 in each State.

b. Skill Development in Automotive Sales and Services: This program offers two specialized courses targeting different beneficiary groups. The Basic Automotive Sales and Service course equips youth with essential automotive skills, with on-the-job training facilitated by automotive service centers and auto training institutes, in 2024-25, 5,545 youth benefited from this program with 72% of them being placed. Besides this 700 youth were trained as 2-Wheeler and 4-Wheeler Automotive Technicians through, the Automotive Sector Skill Council (ASDC).

c. Skill Development for Caregivers: This initiative focuses on training young Caregivers with essential medical care skills, enhanced by OJT in hospitals and nursing institutions. In 2024-25, a total of 2,007 youths benefited from this program, with 73% women beneficiary and it achieved a 72% placement rate.

d. Economic Empowerment of People with Disabilities (PWDs) & LGBTQIA+ through Skill Development: As part of our inclusive social engagement initiatives, this year, 200 youth with disabilities and 100 youth from the LGBTQIA+ community received sector-specific skills training through expert partnerships. The PwD program catered to youth with various disabilities, including those with visual, speech and hearing impairment, locomotor disability, dwarfism, and cerebral palsy. A total of 68%of the PwD and 60% of LGBTQIA+ beneficiaries have been successfully placed.

e. Train the Trainers (TTT): To overcome one of the key challenges of lack of experienced and quality Trainers, Bosch scaled it ‘Train the Trainer' (TTT) program during the year utilizing online and offline modes of training to ensure reskilling and upskilling of carefully identified trainers from across several states in India. The assessment of this training was also made rigorous which has been instrumental in ensuring delivery of high-quality training by these Trainers at their respective training centers in this year 1,029 trainers were successfully trained.

f. Artisan Training Center: A flagship program of Bosch India Foundation, the Artisan Training Center aims to upskill youth in Carpentry, Electrical and Plumbing trades. This year a new trade on home appliances and power tools was introduced and Master Artisan Training Center for that trade has been set up in Chennai, and a Multiplier Center for electrical and electric vehicles was established in Jamshedpur with the capacity to training up to 300 youths annually in their respective fields.

g. Capacity Building of Not-for-Profit Organizations (NGOs): NGOs play a crucial role in reaching vulnerable and marginalized communities, particularly in areas where government and private sector involvement is limited. This training equips NGO representatives with knowledge on government policies, skill development best practices, and good governance, enabling them to implement skill development programs effectively. In 2024-25, 194 NGO representatives completed this training, benefiting numerous communities.

h. Economic Empowerment of Women as Electric Vehicle (Auto) Drivers: To foster women entrepreneurship and improve livelihoods, in reporting year we have launched a training program for women to become EV auto drivers. Around 170 women were trained and assisted in obtaining their driving licenses.

i. Skill Development in Electric Vehicle/ Battery Specialization: Through this initiative, we supported the training of 41 youths in EV technologies, with 27 trained as 2- and 3-wheeler technicians and 14 as EV battery specialists.

- Infrastructure Support: We supported the Swami Vivekananda Cultural Youth Center by contributing to infrastructure development, enhancing the facilities, and enabling better engagement of youth through knowledge and skill development.

2. Sustainable Mobility:

a. Green Service Camps for Roadside Mechanics and Garage Workers: This project aims to promote sustainable consumption and a circular economy by empowering local mechanics and fostering a deeper connection between them, their customers, and the environment. In the reporting year, we reached out to 350 roadside garages and 700 mechanics.

b. Research and Development of Electric Race Car: This support was extended to an academic institution for the research and development of an Electric Vehicle (EV) race car. The technical inputs and expertise provided by Bosch have significantly enhanced the vehicle's performance and design. This intervention positively impacted 46 students, enriching their practical knowledge and skills in EV technology and its usage for other interventions of reducing carbon footprint.

c. Road Safety Education and Awareness: Under the Sustainable Mobility initiative, the focus was on fostering a culture of road safety in India through school and college-based education programs and community engagement. The program emphasizes a sustainable teacher training model that utilizes existing educational resources, thereby ensuring that road safety education reaches a wide audience effectively and behaviors of the community members become more responsible as a pedestrian or/and a driver.

3. Environment Sustainability & Water Conservation

a. Lake Rejuvenation and Maintenance: The Shanumangala Lake in Bidadi Karnataka, was adopted a few years back for rejuvenation to enhance its water holding capacity by removing the silt and develop the lake into the receptacle for rainwater harvest, develop green cover in the lake fore shore as an oxygen rich pocket, restore bio-diversity inclusive of flora & fauna and protecting it from encroachment Additionally, we started rejuvenating Sheshagirihalli Lake in 2023-24 and, this year, has extended our efforts to Mailsandra Lake in Bangalore and Nathanallur Melandai Thangal Lake in Chennai. These initiatives have positively impacted 24,700 individuals and 1,200 cattle and conserving 3 billion liters of water over the years.

b. Supporting Environmental Conservation through Afforestation: Under this project 270,000 trees have been planted so far, including the 19,727 saplings planted in the reporting year and Bosch continues to maintain over 42,000 trees planted in previous years across multiple locations. This initiative has benefitted more than 118,000 community members residing near these plantations and supported 129 farmers by providing 2,400 coconut tree saplings, helping to increase their income over the years. This effort is generating 35,374 Tons of Oxygen and has resulted in absorption of 7500 Tons of Carbon Dioxide every year.

c. Other Water Conservation Projects: In addition to lake rejuvenation, this year we have implemented several water conservation projects based on local needs. These include the Ridge-to-Valley Watershed Restoration project in Nashik to improve groundwater levels and reduce soil erosion, and the rejuvenation of percolation tanks in Nashik and ponds in Jaipur, benefiting around 9,781 community members, respectively.

4. Quality Education: Infrastructure, Value Education & Creative Learning

a. BRIDGE Foundation – Teacher Training Program: The BRIDGE Foundation program is designed to enhance the effectiveness of teachers in imparting 21st Century skills to students, in alignment with the National Education Policy (NEP) 2020. The program, which started in 2023 in Ramanagara, Karnataka, trained 40 teachers who impacted 1,348 students. Based on its success, the program was extended to Jaipur and Nashik, 233 Government School teachers were trained.

b. Development of Anganwadi and Government Schools through Need-Based Infrastructure and Learning Support: Through this initiative we have supported government schools with basic infrastructure, digital tools, STEM lab and learning materials benefitting 18,283 students. We also supported Anganwadi by upgrading the infrastructure, providing educational toys and Anganwadi teachers training impaction around 8211 beneficiaries across locations like Bidadi, Chennai, Gangaikondan, Jaipur, Nagnathapura, and Nashik.

c. Infrastructure and Learning Initiatives for College Students: Through this intervention, we developed an e-learning digital lab for 52 students with disabilities, enabling better access to education. In addition, 111 college students were supported in advanced manufacturing technology courses, and 50 students received full-stack web development training.

d. Other Learning Initiatives for Government School Students: We implement various learning interventions for government school students, including creative learning through art, an experiential citizenship education program, and life skills development through sports and storytelling. These initiatives have positively impacted 3,626 government school children. Additionally, through learning centers for school dropouts, we have supported 360 children who had dropped out of school. Furthermore, 130 government school students have benefited from after-school education programs.

5. Health & Hygiene Support to Community a. Mobile Medical Units (MMUs): We launched three Mobile Medical Units in Jaipur, Nashik, and Chennai last year to promote preventive healthcare and provide basic medical services. Based on demand, an additional unit was added this year. These units have reached 67,138 beneficiaries across 95 villages. In addition to healthcare services, frontline healthcare workers were trained, and multiple awareness sessions were held to promote preventive healthcare.

b. Reverse Osmosis (RO) Plant for Safe and Clean Drinking Water: This year we have installed two new Reverse Osmosis (RO) plants in Jaipur and one in Bidadi, bringing the total number of Bosch-supported RO plants to 36 since 2008. These plants provide access to clean drinking water for over 30,400 households annually, especially in regions affected by high fluoride content in groundwater.

c. Other Interventions: Bosch supported 3,400 government school children with nutritious meals through the Midday Meal program, providing rental support for meal preparation. Additionally, we have extended healthcare support to 45 Multiple Sclerosis patients, ensuring their medical needs were met.

6. Integrated Village Development Initiatives a. Community Development Centers (CDCs): CDCs were set up by Bosch to serve as a nodal center for driving positive change in the rural locations to facilitate and provide access to various Government schemes benefiting the citizens and needy people by handholding and awareness generation. Having 5 CDC's set up in various locations. In 2024-25, we expanded the CDC network by adding one more center in Anekal, Bangalore. A total of 32,333 individuals from 152 villages were benefited by the CDCs.

b. Rural Livelihood Enhancement: This initiative aims to enhance livelihood opportunities for local community members, especially women. In 2024-25, This year, 892 beneficiaries received livelihood skills training, 648 ANM/Asha workers were upskilled, and 600 girls received leadership and life skills training.

Annual Report on Corporate Social Responsibility Activities of the Company along with Impact assessment of CSR projects (2023-24) is enclosed as Annexure ‘D' to this Report.

As on the date of this report, the Audit Committee comprises of Mr. S.V. Ranganath (Independent Director) as its Chairman (up to June 30,2024), Ms. Padmini Khare, Chairperson (Independent Director) (from July 01, 2024) Dr. Pawan Goenka (Independent Director), Ms. Hema Ravichandar (Independent Director), Dr. Gopichand Katragadda (Independent Director), Mr. Stefan Grosch (Non-Executive Director) and Mr. Soumitra Bhattacharya (Non- Executive Director) as its members.

The Members of the Committee possess accounting and/ or financial management knowledge and expertise. The Company Secretary of the Company is the Secretary of the Committee.

During the year under review, the Board accepted all the recommendations of the Audit Committee.

In pursuance of the amended SEBI Listing Regulations effective from January 01, 2022, members of the audit committee who are Independent Directors approve the related party transactions.

Details of the roles and responsibilities, particulars of meeting and attendance thereat are mentioned in the Corporate Governance Report.

The summary of financial nos. of MICO Trading Private Limited (MTPL) for the 2024-25 are given below:

(T Rs.)

RBIM was incorporated as a subsidiary of Bosch Limited in 2020, with the objective to manufacture automotive products including automotive and electrical components. The company is yet to start commercial activities. The summary of financial nos. for the 2024-25 are given below:

(T Rs.)

The Audited Statement of Accounts of RBIM & MTPL can be accessed on the website of the Company at www.bosch.in under the "Shareholder Information" section.

The Company holds 25% and Robert Bosch Investment Nederland B.V. holds 75% of the paid-up share capital of Newtech Filter India Private Limited.

NTFI is the manufacturer of automotive filters, selling their products to the Company, which further sells the same to end customers.

The financial performance of NTFI during 2024-25 is as under:

(MINR)

The Company holds 26% in Autozilla Solutions Private Ltd., a Hyderabad based start-up, offering B2B e-commerce solutions for manufacturers, sellers, and buyers of automobile spare parts, as part of an initiative to establish effective digital ecosystem around vehicle workshops.

The financial performance of Autozilla during 2024-25 is as under: (MINR)

Prebo Automotive Private Limited is a Joint Venture Company in which the Company holds 40% of the paid-up share capital. PreBo is in the business of manufacturing/ assembly and supply of mechanical and electromechanical components and assemblies for automobile and non-automobile industry.

The financial performance of PreBo for 2024-25 is as under: (MINR)

A separate statement containing the salient features of the financial statement of the Subsidiaries, Associate and Joint Venture are disclosed under AOC-1 and is enclosed as Annexure ‘I' to this Report.

The Board of Directors of the Company at its meeting held on May 24, 2024, based on the recommendation of the Audit Committee, inter-alia approved the Sale and transfer of the Company's OE/OES Diagnosis business to ETAS Automotive India Pvt Ltd ("ETAS") along with all the employees, assets and liabilities of the said Business, as a "going concern" and by way of a slump sale for a cash consideration of not less than Rs. 45.6 Crores (Rupees Forty-Five Crores Sixty Lakhs) along with a purchase price adjustment applicable up to the Closing Date (June 30, 2024).This was based on the global decision to move the OE/OES diagnosis business to ETAS. The consideration was arrived at based on an independent valuation conducted by PricewaterhouseCoopers Business Consulting Services LLP, Registered Valuer and Fairness opinion on the valuation provided by SPA Capital Advisors Limited.

The slump sale was approved by the Board of Directors in accordance with Section 188 of the Companies Act, 2013 and Regulation 23 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "SEBI Listing Regulations").

The Board of Directors of the Company at its meeting held on January 28, 2025, based on the recommendation of the Audit Committee, inter-alia approved the Sale and transfer of the Company's Building Technology's product businesses encompassing "Video Systems", "Access and Intrusion systems", "Communication systems" to Keenfinity India Private Limited along with all the employees, assets and liabilities of the said Business, as a "going concern" by way of slump sale for a cash consideration of not less than Rs. 595 Crores (Rupees Five Hundred and Ninety-Five Crores). This was based on the global decision to sell its Building Technologies division's product business for security and communications technology comprising "Video," "Access and Intrusion," and "Communication" systems.

The consideration was arrived at based on an independent valuation conducted by KPMG Valuation services LLP and Fairness opinion on the valuation provided by SPA Capital Advisors Limited.

The slump sale was approved by the Board of Directors in accordance with Section 188 of the Companies Act, 2013 and Regulation 23 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "SEBI Listing Regulations").

The Nomination and Remuneration Policy, inter-alia, provides for criteria and qualifications for appointment of Director, Key Managerial Personnel and Senior Management, Board diversity, remuneration to Directors, Key Managerial Personnel, etc.

Your Company had 6,333 employees as of March 31, 2025. Disclosures pertaining to remuneration of employees and other details, as required under Section 197(12) of the Act, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is enclosed as Annexure "F ‘' to this Report.

The information in respect of employees of the Company required pursuant to Rule 5(2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, will be made available in electronic mode to any shareholder upon request sent at secretarial.corp@ in.bosch.com. In terms of Section 136 of the Act, the said statement will be open for inspection upon specific request made in writing to the Company by the Members. None of the employees listed is related to any Director/KMP of the Company. The said information is available for inspection by the Members on any working day of the Company up to the date of the 73rd Annual General Meeting.

Our sustainability strategy is seamlessly woven into the Bosch Group's risk management system. The comprehensive approach spans the entire organization, enabling participation from all operational, functional, divisional, and business units.

The Bosch Group's risk management system is based on ISO 31000, COSO (ERM) standards as well as IDW PS 340 PS 981. It comprises of systematic detection and tracking of relevant risks as well as identification and monitoring of measures to manage these risks. The Company additionally complies with listing and disclosure obligations required by market regulator, The Securities and Exchange Board of India (SEBI).

Risk Management Committee has been constituted to oversee the effectiveness of the overall risk management system, policies, and practices. The Committee, consisting of Board Members and Department Heads, review the risk inventory, controls, mitigating measures and makes appropriate recommendations, as necessary.

Our Plan-Do-Check-Act (PDCA) risk management approach is collaborative and cross-functional, facilitating participation and engagement across the business units. The Company follows a specific, well-defined risk management policy, integrated with its operations. The Policy has been developed after taking cognizance of applicable statutory guidelines, Bosch global policies on risk management and feedback from stakeholders. Complying with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Risk Management Committee (RMC) has been constituted to oversee the Company's risk management systems, policies and practices. The Committee, consisting of Board Members and Department Heads, reviews risk inventory, controls, treatment measures and its progress as well as make appropriate recommendations as necessary.

Risk Management Committee:

(a) monitors and ensures effective implementation of the Company's Risk Management Systems (RMS).

(b) monitors and approves the Company's risk policy and associated practices.

(c) monitors the effectiveness of the overall risk management framework.

(d) reviews the Company's overall risk profile and ensures that risk-based decisions are within the Company's risk appetite.

(e) ensures that the Company takes prudent measures to balance risk and reward in its business decisions.

(f) periodically report risk movements and trends to the Board, recommending appropriate actions.

(g) ensures it meets its statutory and regulatory responsibilities.

(h) ensures a culture of risk is embedded and lived across the organization.

Subordinate risk management teams, led by the respective business heads, identify, evaluate, and respond to functional, operational as well as strategic risks in their corresponding area of responsibility. There are 18 functional risk areas defined in the risk policy against which risks are evaluated both qualitatively and quantitively. All single risks with an impact on EBIT are documented in the risk register.

Our Plan-Do-Check-Act (PDCA) risk management approach facilitates participation and engagement across all business units, enabling a mutual understanding of risks, uniformity in reporting and continuous improvement in the overall risk management process.

The Company has a Whistle Blower Policy, which includes vigil mechanism for dealing with instances of fraud and mismanagement.

Details of the Whistle Blower Policy have been mentioned in the Corporate Governance Report. The Whistle Blower Policy has been uploaded on the website of the Company.

Prior approval of the Audit Committee is obtained for all related party transactions. The Audit Committee accords omnibus approval for Related Party Transactions which are in ordinary course of business, foreseen, repetitive in nature and satisfy the arm's length principles. The Audit Committee reviews, on a quarterly basis, the details of the Related Party Transactions entered pursuant to the omnibus approval.

Additionally, the Company obtains a half yearly certificate from a Chartered Accountant in Practice confirming that the related party transactions during the said period were in ordinary course of business, repetitive in nature and satisfy the arm's length principles.

The details of Material Related Party Transactions under Section 188(1) of the Act required to be disclosed under Form AOC - 2 pursuant to Section 134(3) of the Act is enclosed as Annexure ‘E' to this Report.

The Company has framed a Policy for determining materiality of Related Party Transactions and dealing with Related Party Transactions. During May 2025, the Policy has been revised in line with regulatory amendments in SEBI Listing Regulations. The said Policy is hosted on the website of the Company.

The report in respect of conservation of energy, technology absorption, foreign exchange earnings and outgo as required under Section 134 of the Act read with Rule 8 of Companies (Accounts) Rules, 2014, is enclosed as Annexure ‘G' to this Report.

Pursuant to provisions of Section 139 of the Act read with the Companies (Audit and Auditors) Rules, 2014, Messrs. S. R. Batliboi & Associates LLP (member firm of Ernst & Young) (Firm Regn. no. 101049W/E300004), were appointed as Statutory Auditors of the Company for a term of 5 years, to hold office from the conclusion of 70th Annual General Meeting held on August 03, 2022, until the conclusion of 75th Annual General Meeting to be held in 2027.

The Audit Committee annually reviews and monitors the performance, independence of the Statutory Auditors and effectiveness of audit process.

The Auditors have issued an unmodified opinion on the Financial Statements, for the financial year ended March 31, 2025. The said Auditors' Report(s) for the financial year ended March 31, 2025, on the financial statements of the Company forms part of this Annual Report.

The Board of Directors, on recommendation of the Audit Committee, re-appointed Messrs., Kamalakara & Co., Cost Accountants, Bengaluru (Registration No. FRN 000296) as Cost Auditors to audit the following cost records of the Company for the Financial Year 2025-26 in terms of the provisions of Section 148 of the Companies Act, 2013.

The Audit Committee has also received a Certificate from the Cost Auditors certifying their independence and arm's length relationship with the Company.

In terms of the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditor requires ratification by the Members of the Company. In terms of the requirements of the said section, the members are required to ratify remuneration payable to the Cost Auditors. Accordingly, resolution ratifying the remuneration payable to Messrs. Kamalakara & Co., will form part of the Notice convening the 73rd Annual General Meeting.

As per Section 148 (1) of the Companies Act, 2013, the Company is required to maintain Cost Records. Accordingly, Cost Records and Cost Accounts are duly maintained by the Company.

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed Ms. Subhashri K M, Partner BMP and Co. LLP, Company Secretaries, for the Financial Year 2024-25. The Report of the Secretarial Auditor is enclosed as Annexure ‘A' to this Report. The Secretarial Auditors' Report have the following observations: Auditor Observation: As per the requirements of Rule 3 of the Companies (Accounts) Rules, 2014, the Company needs to maintain its servers for a daily back-up physically in India, but the Company has been maintaining back-ups of books of accounts in servers located physically in India from July 18, 2024, and backup of books of accounts in relation to audit trail was maintained from March 01, 2025.

Management Response:

The management has successfully imported all the necessary tables related to the books of accounts and has ensured their backup on a server located in Chennai, India, in compliance with the regulation. This backup process has been effectively in place since July 18, 2024. With respect to backup of tables pertaining to audit trail, the same is being backed up daily with effect from March 01, 2025.

In terms of Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company proposes to appoint CS Parameshwar Ganapati Bhat, Practising Company Secretary, (FCS- 8860, COP- No. 11004). He holds a Peer Review Certificate No. 5508/2024, Valid up to March 31, 2029, as the Secretarial Auditor of the Company to hold office for a period of 5 (Five) consecutive years from the conclusion of the 73rd Annual General Meeting to be held in August 2025 till the conclusion of the 78th AGM of the Company to be held in 2030 i.e. from the period starting from April 01, 2025, to March 31, 2030. Your Directors recommend that the proposed resolution relating to the appointment of Secretarial Auditor to be passed by requisite majority in the ensuing Annual General Meeting.

During the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditor have not reported any instances of fraud committed in the Company by its Officers or Employees to the Audit Committee under Section 143 (12) of the Act.

Pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors report that: i. in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. ii. they have selected and consistently applied accounting policies and have made judgments and estimates that are reasonable and prudent to give a true and fair view of the state of affairs of the Company at the end of the financial year and the profit of the Company for that period. iii. proper and sufficient care has been taken for 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. iv. the annual accounts have been prepared on a ‘going concern' basis. v. proper internal financial controls are in place and that such controls are adequate and are operating effectively; and vi. proper systems to ensure compliance with the provisions of all applicable laws were in place and that such systems were adequate and operating effectively.

Particulars of loans given, investment made, or guarantee given, or security provided and the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient of the loan or guarantee, or security are provided in Notes to the Financial Statements.

Further, particulars of loans and advances in the nature of loans to subsidiaries, associates and firms/companies in which directors are interested is given below: (MINR)

During the year under review, there were no deposits accepted by the Company as per the provisions of Companies Act, 2013.

There were no material changes and commitments between the end of the year under review and the date of this report affecting the financial position of the Company.

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31, 2025, is available on the Company's website. Please find below the link after this report.

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. Internal Complaints Committee (ICC) is in place to redress complaints received regarding sexual harassment. The Company is committed to provide protection against sexual harassment of women at workplace (including employee or any other women visiting worksite for any other purpose).

1. Number of complaints of sexual harassment received in the financial year (April 01, 2024, to March 31, 2025): 7.

2. Number of complaints disposed off during the financial year: 7

3. Number of cases pending for more than 90 days: Nil

4. Number of workshops or awareness programs conducted in connection with sexual harassment: 15 exclusive sessions. Additionally, every employee goes through a mandatory Web Based Training (WBT) -89% covered as on Dec 2024.

5. Remedial measures taken by the Company:

• POSH Annual Conclave (initiated 1st time) – through which all IC members underwent. Training included group discussion, case studies and benchmark practices presentation and discussion.

• Quarterly Meetings of IC – Some of the Topics covered ; Liability of the Org in case of contract employees, Live case scenarios, Powerplay in Sexual Harassment cases, Quantum of Penalty, Jurisdiction of IC etc.

• Campaign through mailers, Awareness sessions for contract and temporary employees is continued.

• Refreshers for Blue collar associates.

• Inclusion of POSH topic in induction for Trainees and temporaries.

In terms of the requirements of Regulation 34 (2) (f) of the SEBI Listing Regulations, a report on Business Responsibility and Sustainability Report on the environmental, social and governance disclosures in the format and assurance of the Business Responsibility and Sustainability Report Core forms a part of this Annual Report as Annexure ‘C' to this Report. The BRSR Core disclosures have been independently assured by an external agency, Messrs. S. R. Batliboi & Associates LLP (member firm of Ernst & Young) (Firm Regn. no. 101049W/ E300004).

A report on Corporate Governance in terms of the requirements of the Listing Regulations and a certificate from the Practicing Company Secretary, forms part of this Annual Report as Annexure "B‘' to this Report.

The applicable Secretarial Standards i.e., SS – 1 and SS – 2, relating to "Meeting of the Board of Directors" and "General Meetings", respectively, have been duly complied by the Company.

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions/events on these items during the year under review: i. Issue of Equity Shares with differential rights as to Dividend, voting or otherwise. ii. Issue of Shares (including Sweat Equity Shares) to employees of the Company under any scheme. iii. Significant or material orders passed by the Regulators or Courts or Tribunals which impact the going concern status and the Company's operations in future. iv. Voting rights which are not directly exercised by the employees in respect of Shares for the subscription/ purchase of which loan was given by the Company (as there is no scheme pursuant to which such persons can beneficially hold shares as envisaged under Section 67 (3) (c) of the Act). v. Difference between amount of valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions. vi. Application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016. vii. Revision of financial statements and Directors' Report of your Company.

The Company has not made any investments under Foreign Exchange Management (Non-Debt Instruments) Rules, 2019.

Your Company has adopted a Code of Conduct ("Code") to regulate, monitor and report trading in Company's shares by Company's designated persons and their immediate relatives as per the requirements under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. The Code, inter alia, lays down the procedures to be followed by designated persons, while trading/ dealing in Company's shares and sharing Unpublished Price Sensitive Information ("UPSI"). The Code covers Company's obligation to maintain a digital database, mechanism for prevention of insider trading and handling of UPSI, and the process to familiarize with the sensitivity of UPSI. Further, it also includes Code of Practices and Procedures for fair disclosure of unpublished price sensitive information which has been made available on your Company's website.

The Directors express their gratitude to the Government of India and State Governments of Karnataka, Maharashtra, Rajasthan, and Tamil Nadu for their continued cooperation extended to the Company. The Directors also thank all customers, dealers, suppliers, banks, members, and business partners for the excellent support received from them. The Directors would also like to acknowledge the exceptional contribution and commitment of the employees of the Company during the year under review.

Statements in the Board's Report and the Management Discussion & Analysis describing the Company's objective, expectations or forecasts may be forward looking within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed in the statement.