Submission of 13th Annual Report of the Company for the financial year 2025-2026

To, To, The Secretary, Listing Department The Manager-Listing Department BSE Limited, The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Dalal Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Street, Fort, Mumbai - 400001, Bandra Kurla Complex, Bandra (E), Mumbai - Maharashtra, Bharat. 400051, Maharashtra, Bharat. Respected Sir/Madam, Subject: Submission of 13th Annual Report of the Company for the financial year 2025- 2026 – Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing a copy of 13th Annual Report of the Company for the financial year 2025-2026. The Annual Report for the financial year 2025-2026 is also uploaded on the Company’s website at www.axitacotton.com. This is for your information and record. Thanking you, Yours faithfully, For, Axita Cotton Limited Shyamsunder Panchal Company Secretary and Compliance Officer Place: Ahmedabad Memb. No. A50793 Date: 05-09-2026 13th Annual Report FY 2025-2026 1 2 13th Annual Report FY 2025-2026 Empower Yourselves About Us 5 Voice of Leadership 6 Vision - Mission 9 Farmers Training 10 Awards & Recognition 13 Corporate Information 17 STATUTORY REPORT BOARDS’ REPORT 21 Annexure A- Axita Employee Stock Option Plan 2023 41 Annexure B- Form No. AOC-2 - Particulars of Contracts/Arrangements 43 Annexure C-Conservation of Energy, Technology Absorption, Foreign Exchange Earnings 45 and Out go Annexure D- Particulars of Employees 47 Annexure E- Secretarial Audit Report 49 Annexure F- Corporate Governance Report 53 Annexure 1-Certificate of compliance of Corporate Governance 82 Annexure 2-Certificate of Non - Disqualification of Directors 83 Annexure 3-CEO / CFO Certificate 84 Annexure G- Business Responsibility & Sustainability Report 85 Annexure H- Management Discussion & Analysis Report 129 Annexure I- Corporate Social Responsibility Activities 141 FINANCIAL STATEMENT Independent Auditor‘s Report 147 Financial Statements 159 Notes on Financial Statements 168 NOTICE OF 13TH ANNUAL GENERAL MEETING 203 The Instructions for Members for Remote E-Voting and Joining AGM 214 13th Annual Report FY 2025-2026 3 4 13th Annual Report FY 2025-2026 13th Annual Report FY 2025-2026 5 VOICE OF LEADERSHIP The financial year 2025-26 was a challenging period for the cotton and textile industry. Cotton prices remained volatile through much of the year, international demand was subdued, and trading conditions across the sector were difficult. In this environment, your Company adopted a selective approach to trading, prioritising the quality of each transaction over the volume of business written. Revenue from operations for the year stood at Rs. 370.40 crore, as against Rs. 652.72 crore in the previous year. Profit before tax improved to Rs. 2.84 crore from Rs. 1.55 crore, and profit after tax rose to Rs. 1.90 crore from Rs. 1.09 crore, an increase of approximately 74 per cent. The improvement in profitability, achieved on a lower revenue base, reflects better margins and more disciplined management of working capital. Return on capital employed improved from 3.23 per cent to Mr. Nitinbhai Govindbhai Patel 5.55 per cent, and cash and bank balances increased Chairman & Managing Director from Rs. 10.56 crore to Rs. 15.98 crore. During the year, the Board issued bonus shares in the ratio of one equity share for every ten shares held, and has recommended a dividend of Rs. 0.05 per equity share for the year under review, subject to your approval. Your Company enters the new financial year with a stronger balance sheet, a wider product range and a significantly larger export business. While near-term conditions in the cotton trade may remain uncertain, the medium and long-term outlook for cotton and textiles continues to be encouraging. On behalf of the Board, I place on record my sincere appreciation to our shareholders, employees, customers, farmers, bankers and business partners for their continued trust and support. Warm regards, Mr. Nitinbhai Govindbhai Patel Chairman & Managing Director 6 13th Annual Report FY 2025-2026 It is a privilege to address you as Managing Director of your Company. The financial year 2025-26 was a year of consolidation, in which we focused on strengthening the operating discipline of the business rather than on expanding its scale. Your Company reported total income of Rs. 374.65 crore for the year, with profit after tax of Rs. 1.90 crore. Net worth stood at Rs. 64.91 crore as at 31 March 2026, and earnings per share were Rs. 0.05. A significant part of the year's work went into improving how capital moves through the business. Inventory turnover rose from 63 times to 283 times, reflecting a shift to a largely back-to-back trading model with minimal stock carried at period ends. Trade receivables reduced from Rs. 31.96 crore to Rs. 17.48 crore, and cash and bank balances increased by approximately 51 per cent. During the year your Company availed working capital facilities from State Bank of India, and consequently the debt-to-equity ratio stood at 0.28 as against a negligible level in the previous year. This was a considered decision to support trading operations with secured, competitively priced working capital. The ratio remains conservative and the borrowing is fully covered by current assets. The Company also broadened its product base during the year. In addition to cotton bales and yarn, your Company traded in sesame seeds, groundnut oil, cotton seed, gold and copper. Cotton continues to account for over 85 per cent of turnover and will remain the core of the business, while the wider portfolio reduces dependence on a single Mr. Kushal Nitinbhai Patel commodity cycle. Managing Director During the year, the Nomination and Remuneration Committee granted stock options to eligible employees under the Axita Employee Stock Option Plan, aligning the interests of our people with the long-term growth of the Company. Our strategy remains centred on operational efficiency, diversification and measured expansion of our international business. I thank you for your continued confidence in the Company. Warm regards, Mr. Kushal Nitinbhai Patel Managing Director 13th Annual Report FY 2025-2026 7 As Executive Director, I am responsible for overseeing the Company's export operations and documentation. The financial year 2025-26 was a defining year for this function, and I am pleased to place its outcome before you. Exports for the year grew to Rs. 30.57 crore from Rs. 8.94 crore in the previous year, an increase of more than three and a half times. Exports now contribute 8.29 per cent of turnover, as against approximately one per cent in the preceding year. Equally important is the change in composition. In the previous year, exports comprised a single product line. During the year under review, your Company exported cotton bales for the first time, amounting to Rs. 19.36 crore, added groundnut oil exports of Rs. 2.96 crore, and continued its sesame seed exports at Rs. 8.25 crore. The Company now serves a wider customer base across a greater number of international markets. Export business depends as much on documentation and compliance as on commercial terms. An overseas buyer places reliance on processes he cannot observe directly, and the credibility of those processes determines whether he returns. Your Company has built a consistent record in this Mr. Nilesh Hasmukhbhai Kothari area. Our documentation and compliance processes are reviewed regularly and are aligned to Executive Director the requirements of each destination market, which has enabled us to retain customers across successive seasons and to add new ones. This reliability remains, in my view, our most valuable asset in international markets. Looking ahead, your Company intends to deepen its presence in the markets it has entered during the year and to widen its ag [Showing first 8,000 characters — download PDF for full document]