34th Annual Report

KERNEX MICROSYSTEMS (INDIA) LTD. (An ISO 9001-2015 Certified Company) Registered Office: CIN : L30007TG1991PLC013211 1111 "TECHNOPOLlS". Plot Nos: 38-41. Tel: +918414-667600 Hardware Technology Park. Fax: +91 8414-667695 UKAS M. TStiC Layout. Raviryal ISO 9001 ~ email: kernex@kemex.in 001 H)<lerabad-501510. Tetangana.lndia. Website: www.kemax.in : The Manager Listing Compliances, : The Manager Listing Department . : BSE Limited National Stock Exchange of India Ltd : PhirozeJeejeebhoy Towers : Plot No.CIl, G Block,Exchange Plaza Dalal Street, Bandra - KurlaComplex, Bandra (E) .1.00_9 Dear Sir/Madam, Sub: Annual Report for Financial Year 2025-26 of Kernex Microsystems (India) Limited ('Company') This is in furtherance to our AGM Notice submission dated September 08, 2026 wherein the Company had informed that the 34th Annual General Meeting ('AGM') of the Company will be held on Wednesday, 30th September 2026 at 11:00 a.m. (1ST) via two-way Video Conference / Other Audio-Visual Means (VC/OA VM) only, in accordance with the General Circulars issued by the Ministry of Corporate Affairs and SEBI. Please find enclosed herewith the 34th Annual Report of Kernex Microsystems (India) Limited for the Financial Year 2025-26 along with the Notice of the 34th AGM ('Annual Report'). The Annual Report will send through electronic mode to those Members whose e-mail addresses are registered with the Company/Registrars and Transfer Agent/Depositories. The Annual Report is available on the website of the Company at www.kernex.in.This is submitted pursuant to Regulation 34(1) of the SEBl (Listing Obligations and Disclosure Requirements) Regulations. 2015, as amended. This is for your information and records. Thanking you. Yours Faithfully, For Kernex Microsystems (India) Limited Prasada Rao K Company Secretary Kernex Microsystems (India) Ltd., Annual Report 2025-26 Kernex Microsystems (India) Ltd., Annual Report 2025-26 BOARD OF DIRECTORS Mr. Adabala Seshagiri Rao Chairman & Independent Director DIN: 09608973 Mr. Pasupuleti Dinakara Rao Independent Director DIN: 00009801 Mr. Ayyagari Viswanadha Sarma Independent Director DIN: 00499468 Mr. Anji Raju Manthena Director DIN: 01022368 Mrs. Parvathi Manthena Director DIN: 11537664 (appointed w.e.f. 29.05.2026) Mr. Janardhana Reddy Vinta Director DIN: 02414912 Ms. Sreelakshmi Manthena Managing Director DIN: 07996443 Mr. Manthena Badari Narayana Raju Whole Time Director DIN: 07993925 Mr. Sitarama Raju Manthena Whole Time Director DIN: 08576273 Chief Financial Officer Auditors: Mr. Pamidi Srikanth NSVR & Associates LLP Chartered Accountants Company Secretary & Compliance Officer 2nd Floor, House No.1-89/1/42, Plot No.41 and 43, Mr. Prasada Rao Kalluri Sri Ram Nagar Colony, Kavuri Hills, Guttala Begumpet, Madhapur, Hyderabad-500081 Registered Office: FRN: 008801S/S200060 CIN: L30007TG1991PLC013211 Internal Auditors: Plot No.38 (part) to 41, Survey No.1/1, M/s. Thirupathi & Associates Hardware Park, Raviryal Village, 303, Sai Brundavan Apts, Dwarakapuri Maheswaram Mandal, Hyderabad - 501 510 Colony, Model House Lane, Punjagutta, Hyderabad-500082. Overseas Subsidiary FRN:013000S Avant - Garde Infosystems Inc., Secretarial Auditors: #1906, Rayshell CT, Seabrook, Mr. D S Rao TX-ZIP77586, USA Practicing Company Secretary Registrars & Share Transfer Agents: Flat No. 10, 4th Floor, D.No. 6-3-347/22/2 M/s. KFin Technologies Ltd Ishwarya Nilayam, Opp: Sai Baba Temple, Dwarakapuri Colony, Punjagutta, Selenium Tower B, Plot 31-32, Hyderabad – 500 082, Telangana, India Gachibowli, Financial District, Nanakramguda, Hyderabad - 500 032 Bankers: 1. State Bank of India 6. Federal Bank Limited Phones: 040 - 6716 1565 2. HDFC Bank Limited 7. Yes Bank Limited Email: einward.ris@kfintech.com 3. ICICI Bank Limited 8. Kotak Mahindra Bank Ltd 4. CSB Bank Limited 9. Axis Bank Limited 5. Union Bank of India Board Committees Stakeholders Relationship Committee: Audit Committee Mr. Pasupuleti Dinakara Rao – Chairman Mr. Ayyagari Viswanadha Sarma – Chairman Mr. Ayyagari Viswanadha Sarma – Member Mr. Adabala Seshagiri Rao – Member Mr. Sitarama Raju Manthena – Member Ms. Sreelakshmi Manthena – Member Risk Management Committee Nomination and Remuneration Committee Mr. Ayyagari Viswanadha Sarma – Member Mr. Pasupuleti Dinakara Rao – Chairman Mr. Pasupuleti Dinakara Rao – Chairman Mr. Adabala Seshagiri Rao – Member Mr. Janardhana Reddy Vinta – Member Mr. Anji Raju Manthena – Member Corporate Social Responsibility Committee Mr. Pasupuleti Dinakara Rao – Chairman Mr. Ayyagari Viswanadha Sarma – Member Mr. Sitarama Raju Manthena – Member Kernex Microsystems (India) Ltd., Annual Report 2025-26 CONTENTS Board of Directors 01 Notice 03 Directors’ Report 39 Auditors’ Report 113 Balance Sheet 133 Statement of Profit & Loss 134 Cash Flow Statement 135 Notes to Accounts 139 CONSOLIDATED FINANCIALS Auditors’ Report 200 Balance Sheet 213 Statement of Profit & Loss 214 Cash Flow Statement 215 Notes to Accounts 219 Kernex Microsystems (India) Ltd., Annual Report 2025-26 NOTICE Notice is hereby given that the 34th Annual General Meeting of the Members of M/s. Kernex Microsystems (India) Limited will be held on Wednesday, 30th September 2026 at 11:00 A.M. IST through Video Conference (“VC”) / Other Audio Visual Means (“OAVM”) at the Registered Office to transact the following items of business: ORDINARY BUSINESS 1. TO RECEIVE, CONSIDER AND ADOPT (a) THE AUDITED STANDALONE FINANCIAL STATEMENTS OF THE COMPANY FOR THE FINANCIAL YEAR ENDED MARCH 31, 2026 AND THE REPORT OF THE AUDITORS AND BOARD OF DIRECTORS THEREON AND (b) THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY FOR THE FINANCIAL YEAR ENDED MARCH 31, 2026 AND THE REPORT OF AUDITORS THEREON To consider and, if thought fit, to pass, with or without modification(s), the following resolution as Ordinary Resolutions a) “RESOLVED THAT the audited standalone financial statements of the Company for the financial year ended March 31, 2026 and the reports of the Board of Directors and Auditors thereon, as circulated to the Members, be and are hereby received, considered and adopted.” b) “RESOLVED THAT the audited consolidated financial statements of the Company for the financial year ended March 31, 2026 and the report of Auditors thereon, as circulated to the Members, be and are hereby received, considered and adopted.” 2. TO APPOINT A DIRECTOR IN PLACE OF MR. SITARAMA RAJU MANTHENA (DIN: 08576273), WHOLE-TIME DIRECTOR, WHO RETIRES BY ROTATION AND, BEING ELIGIBLE, OFFERS HIMSELF FOR RE-APPOINTMENT AS A DIRECTOR IN THE COMPANY To consider and, if thought fit, to pass with or without modification(s) the following resolution as an Ordinary Resolution “RESOLVED THAT pursuant to the provisions of Section 152(6) and other applicable provisions of the Companies Act, 2013, the approval of the Members of the Company be and is hereby accorded to the re-appointment of Mr. Sitarama Raju Manthena (DIN: 08576273) as a “Director,” who shall be liable to retire by rotation.” 3. TO APPOINT A DIRECTOR IN PLACE OF MR. ANJI RAJU MANTHENA (DIN: 01022368), WHO RETIRES BY ROTATION AND, BEING ELIGIBLE, OFFERS HIMSELF FOR RE-APPOINTMENT AS A DIRECTOR IN THE COMPANY To consider and, if thought fit, to pass, with or without modification(s), the following resolution as an Ordinary Resolution “RESOLVED THAT pursuant to the provisions of Section 152(6) and other applicable provisions of the Companies Act, 2013, the approval of the Members of the Company be and is hereby accorded to the re-appointment of Mr. Anji Raju Manthena (DIN: 01022368) as a “Director,” who shall be liable to retire by rotation.” Kernex Microsystems (India) Ltd., Annual Report 2025-26 SPECIAL BUSINESS 4. TO RATIFY THE REMUNERATION PAYABLE TO M/S. M P R & ASSOCIATES, COST ACCOUNTANTS, HYDERABAD AS THE “COST AUDITORS” OF THE COMPANY FOR THE FINANCIAL YEAR 2026-27 To consider, and if thought fit, to pass, with or without modification(s), the following resolution as an Ordinar [Showing first 8,000 characters — download PDF for full document]