National Fertilizer Ltd

Dear Members,

On behalf of the Board of Directors of your Company, I have the pleasure in presenting the 52 Annual Report on the business and operations of the Company together with the Audited Financial Statements including Consolidated Audited Financial Statements of the Company for the Financial Year 2025-26 and the Auditors' Reports and Comments of Comptroller & Auditor General of India (C&AG).

During the year, company achieved the Pro t Before Tax of 232.67 crore as against Pro t Before Tax of 104.08 crore during CPLY. PBT has increased mainly due to increase in pro t from traded goods, higher receipt of past period subsidy arrears in current year and decrease in marketing and other Miscellaneous Expenses.

The Energy consumption per MT of Urea at NFL plants during 2025-26 was as follows:

Financial Highlights

Your Company's key nancial parameters during the year 2025-26 and important nancial highlights are as

( in crore)

Capital Reserves

The balance as at 31.03.2026 amounted to 2.51 crore, which is at the same level as was in the previous year.

General Reserves

The balance as at 31.03.2026 amounted to 331.84 crore, which is at the same level as was in the previous year.

Surplus

The balance retained in the surplus as at 31.03.2026 is 2022.23 crore as compared to 1939.04 crore during the previous year.

Dividend

The Board of Directors has recommended Final Dividend of 1.04 (10.40%) per equity share of Rs. 10 each on the paid up equity share capital of the company for the Financial Year 2025-26 which shall be paid after approval of the shareholders at the Annual General Meeting.

State of A airs of the Company and Change in the nature of Business

During the FY 2025-26, Company has achieved sale of fertilizers to the tune of 65.20 LMT comprising of 36.46 LMT of own Urea, 9.24 LMT of imported Urea and 8.75 LMT of RFCL Urea and 10.75 LMT of Non- Urea Fertilizers and against corresponding period last year 63.37 LMT that comprised of 37.32 LMT of own Urea, 4.18 LMT of imported Urea and 11.99 LMT of RFCL Urea, 9.88 LMT of Non-Urea Fertilizers. Sales contribution from other than own manufactured Urea of the company increased to around 40% during the year as compared to 33% of the CPLY.

Your Company has achieved the production & sale of certi ed seeds to the tune of 1.51 Lakh Quintals. The sale of Bio-Fertilizers & City Compost of 691 MT & 23,857 MT respectively achieved during the year.

Your Company has achieved the production of Urea of 36.41 LMT, sale of all fertilizers of 65.20 LMT. Your company has achieved production & sale of Bentonite Sulphur to the tune of 20,035 MT & 20,121 MT respectively. Your company has also sold 60,942 MT PDM (Potash Derived from Molasses) during the year.

During the year, your company achieved ever best sale of:

a. Urea 54.45 LMT (Including Own Urea + RFCL Urea + Imported Urea) against previous best of 53.71 LMT during 2022-23.

b. Agro-Chemicals of value of 172.31 crore against previous best of 92.95 crore during 2024-25. c. Potash Derived from Molasses (PDM) of 60,942 MT against previous best of 44,632 MT during 2024-25. d. Seaweed Granule of 16,095 MT against previous best of 7,341 MT during 2024-25 e. Fermented Organic Manure (FOM) of 5,095 MT against previous best of 3,345 MT during 2024-25.

Other major achievements during the year:

The Company is setting up of Agro Chemicals Plant at Bathinda Unit and out of total ve streams, production has been achieved from three streams. Remaining two streams are expected to be completed shortly. The Production of 300 MT/KL agrochemicals has been achieved in Bathinda Unit during the year.

Bio-fertilizer unit capacity at NFL Vijaipur doubled from 700 MTPA to 1400 MTPA during 2025-26. Bio-Fertilizer Plant achieved ever best Annual Bio-Fertilizer Production 727.03 MT in FY-2025-26 surpassing the previous best of 704.20 MT in FY-2021-22.

The Company has set up 5000 MTPA Urea Gold i.e. Sulphur coated urea (SCU) plant at Nangal Unit under R&D.

Renewable energy: Vijaipur Unit is having a 300 KW roof top solar power plant. Till February'26, 319365 kwh power generated from solar power plant.

Implementation of ERP (Enterprise Resource Planning) system at NFL to integrate various business functions completed.

NFL along with Government of Assam (GoA), OIL, HURL and BVFCL has formed a Joint Venture Company (JVC) named Assam Valley Fertilizer and Chemical Company Limited (AVFCCL) on 25.07.2025 for setting up of a new brown eld Ammonia-Urea complex of Namrup-IV fertilizer plant at Namrup, Assam. Annual Urea production capacity of the plant shall be 12.7 LMT.

Material changes and commitments

No material changes and commitments have occurred between the date of the Balance Sheet and the date of the Board's Report a ecting the nancial position of the Company.

Details of revision of Financial Statements or Board's Report

Company has not revised Financial Statements or Board's Report in respect of any of the three preceding nancial years.

a) Brief history of the Company, overview of the industry and important changes in the industry during the last nancial year;

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NFL was incorporated on 23 August, 1974 at New Delhi. It has an authorized share capital of 1000 crore and paid up and subscribed share capital of 490.58 crore out of which Government of India's share is 74.71% and 25.29% share is held by nancial institutions, public & others.

The Company has ve gas based Urea plants viz. Nangal & Bathinda plants in Punjab, Panipat plant in Haryana and two plants at Vijaipur in Madhya Pradesh with a total annual revamped capacity of 35.68 LMT (Annual Re- assessed capacity - 32.31 LMT) of Urea. The company also has a Bio- Fertilizers Plant at Vijaipur with annual capacity of 1400 MT(capacity doubled from 700 MT during 2025-26) and a Bentonite Sulphur plant of 25000 MT per annum at Panipat Unit. It also manufactures other allied Industrial products like Nitric Acid, Ammonium Nitrate, Sodium Nitrate & Nitrite from its Nangal Unit and undertakes import & sale of other fertilizers like DAP, MoP, NPKs along with domestic trading of various agro-inputs like certi ed seeds, agrochemicals, City Compost, SSP, Potash Derived from Molasses (PDM), Fermented Organic Manure (FOM), Seaweed Granule etc. through its existing vast dealer's network under single window concept. The Company has also been producing and selling its own certi ed Seeds under company's agship Seed Multiplication Program (SMP).

The Company has three Seed Processing Units (SPUs) at Bathinda, Panipat and Indore. Overview of the industry and important changes thereof during the last nancial year forms part of Management Discussion & Analysis Report.

Business Segments

In the light of present diversi ed business activities vis-a-vis IND AS 108 on Segment Reporting following operating segments have been considered for Segment Reporting for the Annual Accounts for the FY 2025-26:

i) Manufactured Fertilizers (Urea, Bentonite Sulphur, Bio Fertilizers). ii) Manufactured Chemicals (Industrial Products, Agro Chemicals, etc). iii) Traded Imported Fertilizers (under NBS). iv) Others (Domestic Traded Products, Agro-Inputs, Sale of Services, etc).

Geographic segments

The operation of the company is conducted within India and there is no separate reportable geographic segments.

c) External environment and economic outlook;

Details of external environment and economic outlook are given in Management Discussion & Analysis Report.

d) Induction of strategic and nancial partners during the last nancial year;

No new strategic and nancial partners have been inducted during the last nancial year.

Preference and Equity Shares

Company has not issued any equity shares or preference shares during the year.

Equity Shares with Di erential Rights

During the nancial year, Company has not issued any equity shares with di erential rights as to dividend, voting or otherwise.

Employees Stock Option

During the nancial year, Company has not issued any employees stock option.

Shares to Trustees for bene t of employees

Company has not introduced any scheme(s) for purchase/subscription of the Company's shares to be held by trustees for the bene t of employees.

Other securities which carries right of conversion into equity shares

During the nancial year, Company has not issued any securities, which carries a right or option to convert such securities into equity shares.

Details of Deposits

The Company has not accepted any deposits during the year.

Credit Rating

During FY 2025-26, the credit rating of the Company was maintained with two credit rating agencies as under:

During the year, the Credit Rating of the Company had been reviewed by both the agencies as shown above in the table.

Buy-Back of Securities

Company has not introduced Buy-Back of its securities during the year.

Sweat Equity

Company has not issued any Sweat equity shares in terms of Rule 8 of the Companies (Share Capital and Debentures) Rules, 2014.

Disinvestment of GOI Equity

There was no disinvestment of Government of India Shareholding during the Financial Year 2025-26. However, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Government of India had appointed few years back Legal Advisors, Merchant Bankers and Selling Brokers for the disinvestment of 20% paid up equity capital in National Fertilizers Limited (NFL) out of Government of India's Shareholding through the "O er for sale by promoters through the Stock Exchanges".

Statement of deviation(s) or variation(s)

Company has not o ered public issue, rights issue, preferential issue etc. during the year and there is no requirement to submit statement of deviation(s) or variation(s).

Foreign Exchange Earnings/Outgo

The Foreign Exchange earned in terms of actual in ows during the year were 1.25 crores and the Foreign Exchange outgo during the year in terms of actual out ow amounted to 5817.46 crore.

Long Term Loans

Long term net borrowings as on 31.03.2026 were Nil (previous year Nil).

Short Term Loans

Short Term borrowings of 3959.25 crore (previous year 1995.77 crore) were outstanding as on 31.03.2026.

Debt Equity Ratio

Debt equity ratio as on 31.03.2026 has increased to 1.39:1 as compared to 0.72:1 of previous year due to increase in borrowings.

Revenue

The Company has achieved Revenue from Operations of 21514.18 crore during 2025-26 as against 19794.50 crore during previous year and total income of 21567.86 crore during 2025-26 as against 19889.52 crore during previous year as detailed below:

( in crore)

Urea and other fertilizers

Your Company has registered Urea production of 36.41 LMT with an overall capacity utilization of 112.69 % during 2025-26 against 37.14 LMT achieved during 2024-25 (CPLY).

Company achieved Bentonite Sulphur production of 20035 MT against CPLY of 18051 MT having a growth of around 11%.

On the sales front, the Company has sale of Fertilizers of 65.20 LMT that includes sale of 36.46 LMT of own Urea, 9.24 LMT of Imported Urea, 8.75 LMT of RFCL Urea, 10.75 LMT of Non-Urea Fertilizers including 0.24 LMT (23857 MT) of Compost during 2025-26 as compared to 63.37 LMT during 2024-25 which includes sale of 37.32 LMT of own Urea, 4.18 LMT of Imported Urea, 11.99 LMT of RFCL Urea, 9.88 LMT of Non-Urea Fertilizers including 0.26 LMT (26466 MT) of Compost.

The detailed quantity of break-up of sale of urea and other Fertilizers is as under:

(In LMT)

Industrial Products

The Company registered sale of Nitric Acid of 91372 MT during 2025-26 as compared to previous sale of 99745 MT during 2024-25. The Company also recorded sale of Ammonium Nitrate to the tune of 46868 MT during 2025-26 as compared to sale of 55502 MT achieved during 2024-25.

In terms of revenue generation from production and sale of Industrial products, the Company achieved sale of Industrial-Products (IP) comprising of Nitric Acid, Sodium Nitrate etc. to the tune of 533.83 crore during 2025-26 against CPLY of 588.64 crore during 2024-25.

Bio-Fertilizers

The Company sold 690 MT of Bio-Fertilizers (Solid & Liquid) to the tune of 2.60 crore in FY 2025-26 as against 554 MT of 2.08 crore during CPLY.

Import & sale of Fertilizers

The Company sold 9.01 LMT of imported non-Urea Fertilizers including DAP, MoP, APS, NPK etc. worth 6388.01 crore during 2025-26 against 8.51 LMT worth 4524.95 crore during 2024-25.

Apart from the above, NFL also sold 9.24 LMT of Urea imported in Government Account in FY 2025-26 against 4.18 LMT during 2024-25.

Domestic Trading of Agro Products

The Company has registered total revenue of 245.23 crore towards trading of various agro products such as seeds, pesticides & compost and RFCL ammonia during the year against 145.30 crore during CPLY.

Gross Sale Composition

Owing to progressive shift in strategy of the Company, the composition of gross sale of the Company has undergone visible change. Against the Urea (main product) contribution of 94.49% in the overall revenue of the Company during 2015-16, Urea (manufactured) contribution has reduced to 59.66% while contribution of other product has increased to 40.34% during 2025-26. Percentage of total sale composition of other products during the year has increased to 40.34% as compared to 32.59% during 2024-25.

Agriculture Extension Activities

Agriculture is the main source of livelihood for the farmers, which include crops, animals and allied activities. Agriculture Extension Activities are being undertaken by your Company by educating farmers on e cient use of all agro-inputs along with total know-how on improved and scienti c methods of cultivation.

Dealers/Retailers are important link between the Company and the farmers. They are key change agents in motivating farmers to use fertilizers in a balanced manner. During the year 2025-26, 33 Dealer's/Retailer's Orientation Programmes were conducted and more than 1300 dealers/retailers were facilitated by upgrading their knowledge regarding fertilizers/agro products and improved crop practices so that latest information can be disseminated at point of purchase to the farmers.

Your Company has always laid emphasis on upliftment of farming community by educating them on various aspects of crop production, animal husbandry and other allied agriculture sectors. 283 Farmer training programmes were organized during 2025-26 and more than 13935 farmers got bene ted. Through these educational programmes, farmers were sensitized to issues related with soil fertility status including de ciency of various nutrients, their remedy to increase fertilizer use e ciency and maximize yields. The farmers have also been educated on bene ts of long term usage of Bio-fertilizers and City Compost through these programmes.

Agriculture Universities, Research Stations, KVKs are the knowledge centres for latest farming techniques, new and high yielding crop varieties, innovative technologies in agriculture and allied agriculture sectors etc. During the year with the objective to promote balanced and sustainable use of fertilizers, soil analysis, methodology of application of di erent fertilizer, new technologies etc., an opportunity was given to the farmers to practically visit the above places by organizing farmers visit to nearby Agriculture University/Research Station/ KVKs. More than 400 farmers got bene tted through 5 such programmes during the year 2025-26.

During the year 2025-26, total 30 demonstrations had been laid out at farmers' elds to demonstrate bene ts of use of City Compost, Potash derived from Molasses (PDM), Fermented Organic Manure (FOM), Nano Urea and water soluble NPK fertilizer/Micronutrients on crop growth and yield as compared to farmer's own practices. 43 Field days were organized in the demonstration elds and more than 1,800 farmers got bene tted from such programmes.

Your Company is playing a vital role in supporting farmers by undertaking soil analysis for macro and micro nutrients through its 6 Static and 5 Mobile Soil Testing Labs (MSTLs) in various States. Based on the analysis, farmers are advised on soil fertility management through rational use of manure, fertilizers and other inputs to make agriculture more productive and sustainable. During the year, around 17,000 soil samples were collected & analysed for macro and micro nutrients and recommendations were given to the farmers.

During the year 2025-26, your Company continued its endeavour to render soil testing services at all the farmers' doorstep by organizing soil testing campaigns. During these campaigns, services of our Mobile Soil Testing Vans and laboratory sta were suitably utilized for collecting soil samples by demonstrating the correct method of sampling to the farmers and by o ering on the spot soil analysis and advisory on the basis of soil test results. 11 such campaigns were organized during the year 2025-26 and more than 67,300 farmers bene tted.

Participation in agro exhibitions and university Kisan Melas is very e ective way to communicate directly with the farmers and also to interact with scientists and experts from various agricultural elds. During the year 2025-26, your Company participated in 33 Krishi Melas/Agriculture Exhibitions organized by leading Agriculture Universities, Agriculture Departments etc. in the States of Punjab, Haryana, UP, Uttarakhand, Bihar, MP, Chhattisgarh, Rajasthan, AP and Telangana which was attended by more than 67,000 farmers.

As per guidelines of Department of Fertilizers (DoF) dated 24.08.2022 and with the objective to provide all the agricultural inputs and services to the farmers under one roof along with soil testing and advisory services, more than 18,000 Centre has been converted into PMKSKs so far by putting up a fascia, installation of Smart TV and developing other facilities in the shops. Farmer education programmes are regularly being organized in these PMKSKs.

Projects

The details of the projects including capital expenditure envisaged are given in the Management Discussion & Analysis Report.

Management Discussion & Analysis Report

Management Discussion & Analysis Report covering business prospects including modernization, diversi - cation, investments, marketing plans, raw materials, human resource, internal management controls including nancial performance review, government policies and other factors having impact on the performance of the Company operations and future outlook of the Company is appended as Annexure-1 to this Report.

Business Responsibility and Sustainability Report

SEBI vide circular no. SEBI/HO/CFD/CMD-2/P/CIR/2021/562 dated 10.05.2021 had introduced the "Business responsibility and sustainability reporting by listed entities", which introduces new reporting requirements on Environment, Social and Governance parameters [ESG parameters] called the Business Responsibility and Sustainability Report (BRSR). The reporting as required under Regulation 34 of SEBI (LODR) Regulations, 2015 was amended for the listed entities and the same shall be mandatory for the top 1000 listed companies (by market capitalization) with e ect from the nancial year 2022-2023.

Your Company in adherence to the circular had prepared the Business Responsibility and Sustainability Report for the nancial year ended March 31, 2026 and the same is appended as Annexure-2 to this Report. Business Responsibility and Sustainability Policy is available on the website of the Company at www.nationalfertilizers.com.

Stakeholders' relationship

Details of stakeholders' relationship are given in the Business Responsibility and Sustainability Report annexed to this Report.

Customers' relationship

Details of customers' relationship are given in the Business Responsibility and Sustainability Report annexed to this Report.

Corporate Governance

The Company is committed to maintain the highest standards of Corporate Governance being the fountain head of value creation for all stakeholders especially shareholders. The Company has in place a well-de ned "Corporate Governance Mechanism" which considers the interest of all stakeholders.

Pursuant to SEBI (LODR) Regulations, 2015 (as amended from time to time) and DPE Guidelines on Corporate Governance, a report on Corporate Governance is appended as Annexure-3 which forms part of this Report.

The Secretarial Auditor of the Company have examined and certi ed Company's compliance with respect to conditions enumerated in SEBI (LODR) Regulations, 2015 and DPE guidelines on Corporate Governance. Secretarial Auditor's Certi cate on Corporate Governance and explanations of the Management to Secretarial Auditors' observations during the year 2025-26 is appended as Annexure-4 which forms part of this Report.

Visit of Parliamentary Committees during 2025-26

The following Parliamentary Committee during study visits interacted with the Company in the year 2025-26:

1. Study Visit of the Committee on Chemical and Fertilizers (2024-25) at Agartala, Guwahati and Shillong from

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26 to 29 April, 2025.

2. Study Visit of the Department Related Parliamentary Standing Committee on Industry (DRPSC) at Diu and

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Ahmedabad from 12 to 13 September, 2025.

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3. Study Visit of the Committee on Petitions, Rajya Sabha to Amritsar (Punjab) and Srinagar (J&K) from 6 to 9 October, 2025.

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4. Study Visit of the Standing Committee of Finance to Lucknow and Hyderabad from 13 to 15 November, 2025.

5. Study Visit of the Standing Committee on Chemicals and Fertilizers (2025-26) to Thiruvananthapuram,

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Mumbai and Goa from 22 to 28 January, 2026.

6. Study Visit of the Committee on Government Assurances (2025-26) to Sri Vijaya Puram (Port Blair), Swaraj

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Dweep (Havelock Island), Bengaluru and Bhubaneswar from 20 to 25 February, 2026.

Material Orders of Regulators

Following regulatory orders issued for implementation may a ect/ have a ected the operations of the plants:

1.0 Implementation of NUP-2015 Energy Norms:

The Department of Fertilizers (DoF) has granted stage-wise extensions in the NUP-2015 norms to ensure the smooth attainment of Target Energy Norms (TEN) at each fertilizer unit across the industry. Initially, the target norms were extended and revised for the scal years 2018 and 2019, with penalties of 2% and 5% respectively. Following representations from units; the TEN were further revised up to September, 2022 and March, 2023, with penalties of 10% and 10% + 2% respectively.

Energy-saving schemes at Bathinda, Panipat and Nangal units were implemented by Jan 2022, while for Vijaipur-I & II, schemes were completed by March, 2023. Despite the enforcement of target norms for all units by the Department of Fertilizers (DoF), the Vijaipur I unit could not achieve the TEN of 5.5 Gcal/MT urea as envisaged in the TEFR prepared by PDIL, and its energy is expected to remain higher than the norm without signi cant investment.

Upon representations made to DoF and further escalation of the matter to the Department of Expenditure (DoE) by DoF, DoE revised the TEN for Vijaipur I initially until 31.03.2024 with a 30% penalty. This was subsequently extended upto December 2024 with a penalty of 35% and further extended with the same penalty upto March, 2025.

For further New Energy Norms applicable from 01.04.2025, an expert Committee under the chairmanship of NITI Aayog was constituted by the Government of India to review and recommend revised Target Energy Norms (TEN) for urea units under NUP-2015, applicable from 01.04.2025. The Committee has submitted its report. DoF vide its noti cation dated 30.06.2026 has revised the New Energy Norms applicable w.e.f. 01.04.2025 to 31.03.2028.

2.0 NBS rates for P & K fertilizers for during FY 2025-26 (Kharif-2025 to Rabi 2025-26) and its impact on revision of subsidy

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DoF vide noti cation dated 28 March, 2025 revised the per kg NBS rates of P and S for Kharif 2025 vis-a-vis Rabi 2024-25 as tabulated above. Accordingly, NBS rates per MT of DAP & SSP increased from 21,911 and 5,121 per MT during Rabi 2024-25 to 27,799 and 7,263 per MT, respectively for Kharif 2025. NBS rates for NP/NPKs grades of fertilizers ranged between 8,952 per MT and 27,404 per MT for Kharif 2025.

Subsequently, as per OM dated 29 October, 2025, DoF revised the per kg NBS rates of P and S for Rabi 2025-26 vis-a-vis Kharif 2025 as tabulated above. Accordingly, NBS rates per MT of DAP and SSP increased from 27,799 and 7,263 during Kharif 2025 to 29,805 and 7,408 (capped), respectively for Rabi 2025-26. NBS rates for NP/NPKs grades of fertilizers ranged between 9,088 per MT and 29,671 per MT for Rabi 2025-26.

3.0 DoF mandate for Ammonium Sulphate procurement for Kharif 2026

DoF vide their email dated 10.04.2026 informed that the import target for Ammonium Sulphate for the Kharif 2026 season (01.04.2026 to 30.09.2026) in respect of NFL has been xed at 1.50 LMT.

4.0 Guidelines on advantage/disadvantage due to upward/downward trend in the prices of P&K fertilizers to the importers

DoF vide their letters No. 23011/5/2025-P&K dated 30.04.2025 & 23011/12/2025-P&K (P) dated 05.01.2026 conveyed the operational guidelines for implementation of various provisions over and above the NBS Subsidy rates approved for Kharif 2025 & Rabi 2025-26, respectively, (as summarised below) to ensure the availability of DAP & TSP to the farmers at a ordable rate @1350 per 50 kg bag & 1300 per 50 kg bag respectively. These provisions for imported DAP & TSP shall be e ective for the shipments arriving w.e.f. 01.04.2025 till 31.03.2026:

i. Advantage/ disadvantage due to upward/downward trend in the international market. ii. Provision for "Other Costs" @ 3500 PMT or actual applicable expenses, whichever is lower. iii. Provision for reimbursement of GST component included in the MRP. iv. Provision for reasonable return @4% of Net MRP (MRP-GST).

5.0 DoF mandate for DAP procurement for Kharif 2026 under Long-term agreement

DoF vide their letter dated 18.03.2026 advised NFL to procure su cient quantity of DAP under NFL's existing Long-term agreement to maintain adequate availability at the eld level considering the anticipated peak demand for DAP and in-order to pre-position adequate stocks well before the commencement of Kharif season.

6.0 Letter to DoF for price protection for procurement of DAP/TSP in Kharif 2026

Vide NFL letter dated 26.02.2026, DoF was informed that NFL is in process of nalization of MOU with International Producers for FY 2026-27 and considering the MRP & subsidy the procurement shall be unviable for Khraif 2026. Accordingly, DoF was requested to extend the price protection for procurement of DAP/TSP in Kharif 2026.

7.0 Plastic Waste Management Rules 2016

The Ministry of Environment Forests and Climate Change (MoEF & CC), Government of India, vide Gazette

Noti cation dated 18 March, 2016 has speci ed rules for Plastic Waste Management. The Rules x the responsibility of local bodies, Gram Panchayat and Waste generators, as well as producers, importers and brand owners for collection and management of plastic waste. However, subsequent amendments have also came in 2018 and later on Plastic Waste Management Rules were amended as Plastic Waste management Rules, 2022.

Fertilizer industry falls under the category of brand owners as the fertilizer products are sold in plastic bags that are multi-layered and composed of HDPE/HDPE lined with polypropylene. All the Brand Owners who introduce the products in the market have to establish a system or plan for collecting back the plastic waste generated due to their products. As per rules, NFL has to register with Central Pollution Control Board (CPCB) and submit along with action plan to comply with Extended Producer Responsibility (EPR) obligation as mentioned in the rule.

Accordingly, NFL applied for the registration and got registration as a Brand Owner under PWM Rules on 21.06.2022 with 01 year validity. The same is being renewed every year.

For the FY 2025-26, renewal of registration has been done and target of 15,610 MT of collection and recycling plastic waste of Cat-I & II (combined) given by CPCB. Parties have been lined up for the ful lling the plastic waste management rules compliances.

The Right to Information

In line with the provisions of Right to Information Act, 2005, an appropriate mechanism promoting transparency and accountability is functional across the Company. The Public Information O cers and Appellate Authorities are e ectively responding to the requests and appeals of the applicants. The names of all PIOs / First Appellate Authorities / Transparency O cer are displayed on the Company's website. During the year, 432 RTI applications were received and were dealt with as per provisions under RTI Act, 2005.

Vigil Mechanism

Pursuant to the provisions of Sections 177(9) and (10) of the Companies Act, 2013, a Vigil Mechanism for employees and others to report genuine concerns has been established.

Whistle Blower Policy

Company believes in transparency and propriety in all its business dealings. To take this object further, Company has put in place a Whistle Blower Policy providing for a mechanism to the employees and other stakeholders to report concerns about unethical behaviour, actual or suspected fraud or violation of Code of Conduct or Ethics Policy. The Policy provides for adequate safeguards against victimization of whistle blowers. The policy is reviewed periodically. No employee or other stakeholders were denied access to the Audit Committee. Whistle Blower Policy is available on the website of the Company at www.nationalfertilizers.com.

Integrity Pact

With the commitment to maintain the highest standard of transparency and governance, your Company has entered into an integrity Pact with Transparency International and has also appointed Independent External Monitors (IEMs), as nominated by Central Vigilance Commission (CVC). Structured Meetings are held with IEMs on regular intervals and threshold value is 1 crore for signing of Integrity Pact for purchase/works contracts.

Vigilance

The Vigilance Division of the Company is headed by the Chief Vigilance O cer (CVO), who is assisted by a team of o cers drawn from various functional departments. The vigilance set-up is operational across the Corporate

O ce, all Manufacturing Units and Zonal Marketing O ces, ensuring comprehensive coverage of vigilance functions throughout the organization.

The advancement of good governance remains a fundamental focus of vigilance functions. Emphasis continues to be placed on building awareness and nurturing a culture of ethics and integrity across the organization. A well-informed and sensitized workforce plays a vital role in reinforcing internal controls, promoting transparency and contributing e ectively towards the achievement of organizational goals.

In line with the guidelines of the Central Vigilance Commission (CVC), the Company undertook various vigilance initiatives during the year 2025 to promote transparency, accountability and ethical conduct. Extensive activities were organized during Vigilance Awareness Week (VAW) 2025, along with a three-month special campaign on the theme "Vigilance Our Shared Responsibility" across all Units, Zonal O ces and the Corporate O ce.

Capacity-building programmes were conducted focusing on key vigilance areas such as:

Investigation and reporting

Framing of charge sheets

Conducting CTE-type examinations

These programmes were complemented by training sessions on ethics, conduct rules, cyber hygiene, public procurement and emerging areas such as cyber security. Special emphasis was laid on enhancing procurement transparency through the Government e-Marketplace (GeM), improving systems and procedures and promoting ethical practices across the organization.

A wide range of awareness activities were undertaken during the campaign including lectures, seminars, public outreach programmes, competitions, rallies, marathons, walkathons, nukkad naataks, integrity pledge ceremonies and dissemination through banners and pamphlets. More than 150 events were conducted, signi cantly enhancing vigilance awareness among employees, stakeholders and the public at large. Overall, these initiatives strengthened preventive vigilance by improving systems, enhancing awareness and reinforcing a culture of integrity within the organization.

Regular vigilance activities carried out during the year includes Surprise checks, Scrutinies, Vigilance clearance and status, the preparation of Periodic Vigilance Reports, preparation of the Agreed List of O cers, identi cation of the List of O cers of Doubtful Integrity, investigation of complaints as received from various sources and follow up of pending departmental actions.

With a focus on preventive vigilance and systemic improvements, the Vigilance Wing of NFL actively contributes to minimizing risks and enhancing organizational e ciency. Its sustained e orts towards awareness, monitoring, and process strengthening support the development of a robust and integrity-driven work environment.

MoU

The Department of Public Enterprises, Government of India, in order to improve accountability and giving higher autonomy to Public Sector Enterprises, introduced the Concept of MoU during early nineties. NFL signed its rst MoU with the Department of Fertilizers (DoF) for the year 1991-92.

Based on nancial performance and achievement of other parameters laid down, your Company has been rated "Good" as per the Memorandum of Understanding (MoU), signed with the Government of India for the nancial year 2024-25. From the year 2021-22 and onwards, DPE has started data entry module of digital MoU Dashboard for CPSEs for entering data. Accordingly, MoU for the year 2025-26 was generated through online MoU portal after entering requisite information. The Ministry and the CPSEs were requested to sign this system generated MoU. Further Company shall submit actual achievement against all the parameters for 2025-26 in the online MoU portal for evaluation.

During the FY 2025-26, NFL achieved a total production of 36.41 LMT of Neem Coated Urea, 20,035 MT Bentonite Sulphur, 727 MT of Bio-fertilizers and 1,30,636 MT of Nitric Acid with refrence to the MoU targets.

Awards & Accolades received during 2025-26

Panipat Unit received "Safety Leadership of the year award" on 25 April, 2025 for its outstanding contribution

in the process sector in 5 International sustainability conference Health safety Fire & Environment advance 2025 organized by University of Petroleum and Energy Studies (UPES).

Nangal Unit received Platinum Award Apex India Green Leaf award 2024 for Energy E ciency category in fertilizer sector.

Nangal unit was awarded with the O cial Language Shield for the rst prize for its excellent performance in o cial language for the year 2023-24.

On 12.06.2025, the Mukutmani Shield was awarded to the NFL Nangal unit by the Indian Language and Culture Center, New Delhi for promoting the promotion and propagation of the o cial language Hindi and for excellent performance of the o cial language.

NFL Vijaipur unit has received the following 3 awards during the month of June, 2025: a. Greentech CSR India Winner Awards by Greentech Foundation's b. Gold Award for Environment Excellence c. Platinum Award for Green Belt Development

On 30.07.2025, NFL, Panipat was awarded the Second Award for excellent work in Hindi by the Municipal O cial Language Implementation Committee, Panipat.

NFL Vijaipur received Certi cate for Eat Right Campus for 28 January, 2025 - 27 January, 2027 as per guidelines established by FSSAI "Food Safety and Standards Authority of India" under the Ministry of Health and Family Welfare.

NFL Vijaipur unit won 2 prize for installation of stall at 12 Bhopal Vigyan Mela organized by Vigyan Bharti under the aegis of Madhya Pradesh Council of Science and technology.

Panipat Unit has won the 2 Prize in the state level Energy Conservation Award (2024) from HAREDA.

Vijaipur Unit received "Diamond Award" Under "FAME NATIONAL AWARD" for Safety Excellence -2025.

On 30.10.2025, City O cial Language Implementation Committee, O cial Language (Ministry of Home

A airs) conferred 1 Prize for excellent performance to Nangal Unit.

Vijaipur Unit received "Platinum award for training excellence in Fertilizer Sector PAN India by APEX India Foundation.

Vijaipur Unit received Platinum award for excellence work in Health, Safety and Environment by APEX INDIA Foundation

Panipat Unit received Gold in "Honourz Excellence award" under Energy E ciency category.

Vijaipur Unit received Platinum Award 2026 from Green Enviro foundation for excellence work in safety and HSE Seven Star Platinum Award for the year 2025 by Safety Council, Madhya Pradesh.

NFL won prestigious Award for Excellence in CSR Commitment (Overall) during the "Governance Now" 12

PSU awards on 11 March, 2026 at New Delhi.

Initiatives under Corporate Social Responsibility

Company is constantly working towards inclusive growth in the society and is implementing various developmental activities under its Corporate Social Responsibility (CSR).

The company allocated a CSR budget of 424.49 Lakh for the FY 2025-26 and approved various projects which are completed and ongoing at di erent stages of implementation. The company incurred an expenditure of 298.78 Lakh during the year, including expenditure on ongoing projects of previous years.

Through its CSR initiatives, the Company is supporting sectors like healthcare, education, skill development, environment and empowering the underprivileged sections of the society.

During the year, the Company undertook development projects in Shahdara North Zone, Delhi. One of the key initiatives included improvement and beauti cation of public spaces through traditional Indian art wall paintings. The project transformed various public walls into vibrant cultural spaces using Indian art forms such as Warli, Madhubani, Gond and similar folk styles, while promoting cleanliness and respect for public property. Additionally, Water Coolers with RO Puri ers were installed in MCD-run Government Schools in Shahdara North Zone, providing safe drinking water to more than 20,000 girl students.

The Company also supported Government's e orts towards development of the National Maritime Heritage Complex (NMHC) at Lothal, Gujarat. The NMHC aims to create a world-class destination showcasing India's rich maritime heritage, including museums and research centers.

In the area of education, the Company established a Centre for Learning in Aspirational District West Singhbhum, Jharkhand and provided competitive exam preparation training to 2500 nos. underprivileged youths at free of cost. Further, in the Aspirational District Sheikhpura (Bihar), computer labs were set up in Government schools, bene ting more than 2,000 students through digital literacy initiatives. The Company's Units also supported Government schools in their vicinity by providing school desk & benches, swings, smart classrooms, computers and other essential facilities.

For sustainable agriculture, the Company has also established a Bio-Pesticides Laboratory at JSS Krishi Vigyan Kendra, Suttur for research and development of Bio-pesticides. Training and awareness programmes were also conducted for farmers to promote the use of bio-pesticides and encourage environmentally sustainable farming practices.

A detailed report on the Corporate Social Responsibility is appended as Annexure-5 forms part of this Report.

RESEARCH & DEVELOPMENT

Expenditure on Research & Development (including Innovation Initiatives)

The Government of India has introduced Urea Gold (Sulphur coated urea) to address soil Sulphur de ciencies and enhance nitrogen use e ciency through a controlled and gradual release mechanism. This innovation helps in reducing fertilizer consumption while improving crop yields.

In alignment with the Government's initiative, a 5,000 MTPA Urea Gold plant has been installed at the Nangal Unit as part of the Company's Research & Development (R&D) e orts. During FY 2025-26, a total of 201 MT of Urea Gold was produced, out of which 108 MT was dispatched.

The total expenditure incurred on R&D and innovation initiatives during FY 2025-26 was 3.07 crore.

Further, NFL is planning to set up two Urea Gold plants with capacities of 250 MTPD and 300 MTPD at Nangal Unit and Vijaipur Unit respectively.

Conservation of Energy, Technology Absorption and Foreign Exchane Earnings and Outgo

Disclosure in terms of the Companies (Account) Rules, 2014 in respect of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo is appended as Annexure-6 forms part of this Report.

Safety, Environment and Sustainable Development

Company has undertaken various initiatives for adopting best practices for health, safety environment management and sustainable development and the details of the same is appended as Annexure-7 forms part of this Report.

Particulars of Loans, Guarantees, Security and Acquisition under Section 186 of the Companies Act, 2013

Particulars of loans given, guarantees provided, investments in securities and acquisitions made by the Company during the year under review are given in Form MBP-2 and the same is appended as Annexure-8 forms part of this Report.

Joint venture /Associates Companies

Details of Joint Venture/Associates Companies pursuant to Section 129(3) of the Companies Act, 2013 the statement containing the salient features of the Financial Statement of the Associate Company/Joint Venture Company is included in the Consolidated Financial Statements is appended as Annexure-9 forms part of this Report.

Companies which have become or ceased to be subsidiaries, associates and joint ventures

During the year 2025-26, Company has entered into a Joint Venture Agreement among Government of Assam (GoA), Oil India Limited (OIL), Hindustan Urvarak & Rasayan Limited (HURL) and Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) on 04.07.2025. Joint Venture Company has been incorporated on 25.07.2025 in the name of "Assam Valley Fertilizer And Chemical Company Limited" (AVFCCL). AVFCCL is a 40:18:18:13:11 Joint Venture Company among GoA, NFL, OIL, HURL and BVFCL respectively. Apart from AVFCCL, Company has not acquired or formed any new subsidiary, associate or joint venture.

Further, no subsidiary, associate or joint ventures have been ceased by way of sale of shares, amalgamation, winding up etc. during the year 2025-26.

Related Party Disclosures

The particulars of contracts/arrangement entered into by the Company with related parties referred to in Section 188(1) of the Companies Act, 2013 including arm's length transactions under third proviso thereto are disclosed in Form AOC-2 and the same is appended as Annexure-10 forms part of this Report. Related Party Transaction Policy of the Company is available at www.nationalfertilizers.com.

Capital Expenditure (CAPEX)

The achievement in CAPEX is 247 crore excluding capital work in progress (CWIP) in the year 2025-26.

Risk Management

The chemical fertilizer industry is operated in a hazardous environment and faces many risks including those related to health, safety and environment in addition to general business & nancial risks. In order to mitigate them, the company has a comprehensive Risk Management Policy which is regularly reviewed and a periodical review of the risks, procedures and strategies is undertaken.

To review the new risks evolved during the quarter along with mitigation action undertaken as well as anticipated risks along with mitigation actions planned in future, the company has a two tier system where quarterly risks report is rst reviewed by the Risk Assessment Committee (RAC) and thereafter nal report is submitted to Risk Management Committee (RMC) for its recommendations before submission to Audit Committee and the Board of Directors. E orts are made in a planned way to obviate the risks either fully or to minimize their impact.

Under Risk Management policy, all the risks along with mitigation actions undertaken have been reviewed by Risk Assessment and Risk Management Committees. Some of the major risk having severe nancial impact as identi ed by the company include implementation of Target Energy Norms under NUP-2015 which resulted reduction in pro t margin mainly at Vijaipur-I unit & RLNG/NG supply constraints due to geopolitical factors and its impact on production.

Internal Financial Controls

Details in respect of adequacy of internal nancial controls with reference to nancial statements are given in Management Discussion & Analysis Report.

Internal Financial Reporting and Control

The Company has, in all material respects, an adequate internal nancial controls system over nancial reporting and such internal nancial controls over nancial reporting were operating e ectively as at 31.03.2026.

Particulars of Employees

As per provisions of section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appoinment and Remuneration of Managerial Personnel) Rules, 2014, every listed Company is required to disclose the ratio of the remuneration of each Director to the median employee's remuneration and other prescribed details in the Board's Report.

As per noti cation dated 05.06.2015 issued by Ministry of Corporate A airs, these provisions are not applicale to the Government Company. Accordingly, these particulars are not included in the Board's Report.

Public Procurement Policy of Micro and Small Enterprises (MSEs) Order, 2012

Public Procurement Policy for Micro and Small Enterprises (MSEs) was noti ed by the Government under the Micro, Small and Medium Enterprises Development Act, 2006 which stipulated that 20% of total annual procurement of goods and services shall be made by all Central Ministries /Departments /CPSUs from Micro & Small Enterprises (MSEs). Within this percentage, a sub total of 4% procurement is to be made from MSEs owned by SC/ST entrepreneurs. This Policy has become mandatory w.e.f. 01.04.2015. The requisite information for the year 2025-26 is appended as Annexure-11 forms part of this Report.

Payments to MSE Vendors

Details regading Payments to MSE Vendors (directly or through TReDS) including payments made and payments pending beyond 45 days from the date of actual delivery of goods and/or services:

Procurement through GeM Portal

During the year, total procurement of Goods and Services was 1284.52 Crore out of which total procurement through GeM portal was 1270.95 Crore.

TReDS

Platform-wise details for all TReDS platforms regarding on-boarding of the NFL and its subsidiaries (if any):

Human Resource Management

The Company has manpower strength of 2612 regular employees as on 31.03.2026, which comprises 1253 Executives and 1359 Non- Executives. 198 women employees are on its roll, which is 7.58% of the total work force. The detailed analysis with regard to human resource including training and executive development programme have been made in the Management Discussion and Analysis Report.

Employee Strength: The Company had 2612 employees as at the end of FY 2025-26 of which 1187 were SC/ST/OBC employees and 50 divyangjans.

Employee Bene ts: The vision of the Company for its human resources is to create an enabling environment to enhance the e ciency of the organization. The aim is to encourage the employees to perform their best ability by a system of proper placements and incentives, while creating an atmosphere of trust and a feeling that the organization cares about the wellbeing and personal aspirations of the sta . This helps align personal aspirations with professional goals and enhances e ciency. The Company runs multiple bene t schemes for its employees like Provident Fund, gratuity, pension, medical bene ts, contributory pension scheme, concessional interest rates on loans, scholarships to employees' children, executive health check-up etc. The Company also shares part of its pro t with employees under its Performance Related Pay scheme in compliance with DPE Guidelines.

Human Rights: Recruitment policy of the Company does not permit any engagement of child labour, forced labour or involuntary labour, An independent Internal Complaint Committee has been constituted at Corporate O ce and each Unit to promptly and appropriately handle complaints of sexual harassment at work places. The Company refrains from any discrimination on the basis of caste, creed, gender or religion and strives to ensure a healthy work-life balance for its employees.

Employee Well Being: NFL believes that workforce is the greatest asset that propels the growth engine. Employees are considered as "Change Catalysts" and the Company nurtures and channelize the expertise and talent of employees for growth performance, feedback, motivation and training. The achievements and e orts are appreciated, acknowledged & rewarded.

On the health front also, Company looks after each & every employee along with his/her dependents for protection from unhygienic conditions and treatment of various illnesses.

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

An independent Internal Complaint Committee has been constituted at Corporate O ce and each Unit to promptly and appropriately handle complaints of sexual harassment at work places. During 2025-26, disclosure in relation of the Sexual Harassment of Women at workplace is as under:

No. of Complaints led during the FY-01 (One)

No. of complaints disposed of during the FY-02 (Two)

No. of complaints pending for more than 90 days during the FY- 01 (One)

No. of complaints pending as at the end of FY-01 (One)

Compliance of the provisions relating to the Maternity Bene t Act, 1961

The Company is fully committed to upholding the rights and welfare of its employees in accordance with the applicable laws. In line with this commitment, the Company ensures compliance with the provisions of the Maternity Bene t Act, 1961, as amended from time to time and maternity bene ts are extended to 100% of female employees.

Details of proceedings pending under the Insolvency and Bankruptcy Code, 2016

During the year under review, no application was made and no proceeding is pending under the Insolvency and Bankruptcy Code, 2016 during the nancial year 2025-26.

One-time Settlement and Valuation

During the nancial year 2025-26 no event has taken place that gives rise to reporting of details with respect to di erence between amount of the valuation done at the time of onetime settlement and the valuation done while taking loan from the Banks or Financial Institutions.

Implementation of O cial Language Policy

The Company is continuously striving for promotion, dissemination and implementation of O cial Language Policy of the Union of India. Quarterly Meetings of the O cial Language Implementation Committee are regularly organized at the Corporate O ce and Unit/Zonal O ce levels to review the progress of use of o cial language, Hindi. A total of 36 meetings were conducted during the year.

To promote the use of o cial language, Hindi, 37 Hindi workshops were organized during the year in which 814 personnel participated. Hindi Fortnight was celebrated across all units and o ces of the company to mark the occasion of Hindi Diwas. During the year, a total of 44 programs and competitions were organized for the promotion and dissemination of the o cial language, in which 1386 employees participated and 353 winners and participants were honored. Additionally, 65 employees were rewarded under the Cash Prize Scheme.

To mark the completion of 50 years of Department of O cial Language, nominated personnel from NFL units and o ces participated in the "Department of O cial Language Golden Jubilee Celebrations" held at Bharat

Mandapam, New Delhi, on 26 June, 2025.

Nominated representatives from NFL units and o ces also participated in the 5 "All India O cial Language Conference" organized by the Department of O cial Language, Government of India to commemorate 'Hindi

Diwas' on 14 and 15 September, 2025 at Mahatma Gandhi Convention & Exhibition Centre, Gandhi Nagar, Gujarat.

A o cial language inspection tour and meeting program was successfully organized in Indore on 7 October, 2025 for NFL Zonal O ce, Bhopal, by the First Sub-Committee of the Parliamentary Committee on O cial Language during the year 2025-26.

NFL ensured its representation at the 'Sanyukt Rajbhasha Sammelan Evam Puraskar Vitran Samaroh' organized

by the Department of O cial Language, Ministry of Home A airs, on 20 January, 2026 at Devi Ahilya Vishwavidyalaya, Indore, Madhya Pradesh.

NFL Nangal Unit was awarded the O cial Language Shield (First Prize) by TOLIC-Rupnagar on 22 May, 2025 for its Outstanding Performance in the eld of Implementation of o cial language Hindi during the year 2023-24, the unit was further honored with the O cial Language Shield (First Prize) for the year 2024-25 during the half-

yearly meeting held on 30 October, 2025. Under the 61 half-yearly meeting of TOLIC (Undertakings)

Hyderabad-Secunderabad held on 29 May, 2025, NFL Zonal O ce, Hyderabad was honored with the "Garima Puraskar" for its Outstanding Performance in the eld of Implementation of o cial language Hindi. NFL Vijaipur Unit was awarded the First Prize and O cial Language Shield for its Excellent Work in the o cial language Hindi during the year 2024-25 at the half-yearly meeting organized by the Town O cial Language Implementation

Committee, Guna (Madhya Pradesh) on 24 December, 2025.

Initiatives taken for development of employees belonging to Scheduled Caste/Scheduled Tribes/Other Backward Classes (SC/ST/OBC categories)

Company is committed to the development of employees belonging to reserved categories. An Implementation Cell is functional in all Units/ O ces of the Company to oversee the implementation of Presidential Directives on Reservation Policy for SCs / STs. Liaison O cer has been appointed in each Unit / O ce and Chief Liaison O cer at CO, Noida to ensure due compliance of orders and instructions pertaining to reservation for SCs and STs and other concessions admissible to them. Meetings were periodically held at Unit level as well as at corporate level with the SC /ST Employees Welfare Associations by the Management for redressal of grievances of SC /ST employees. A statement showing representation of employees belonging to Scheduled Caste / Scheduled Tribes / Other Backward Classes / Persons with disabilities is appended as Annexure-12 forms part of this Report.

Presidential Directives

Schedule of Compliances with Presidential Directive issued during nancial year 2025-26 and during last three year preceding the nancial year 2025-26 is as below:

Information Technology & Details of Cyber Security incidents and its preventives

The Information Technology Department continued to serve as the backbone of NFL's digital transformation journey, enabling the organization to achieve operational excellence, enhance productivity and respond e ectively to the evolving needs of the industry. During the nancial year 2025 26, the Company undertook several signi cant initiatives aimed at modernizing its IT landscape, strengthening cybersecurity and improving digital resilience across its operations.

As part of its modernization drive, NFL successfully phased out several legacy systems including the Dispatch Management System, Marketing Management & Information System and the Employee Self-Service Portal and replaced them with a comprehensive Enterprise Resource Planning (ERP) system. The ERP platform has been designed as an integrated business solution to enable real-time access to information, improves process e ciency, enhance transparency and support informed decision-making across various business functions. This strategic initiative marks a major step in the Company's digital transformation roadmap and is expected to contribute signi cantly towards long-term growth, improved operational agility and enhanced competitiveness in a rapidly changing business environment.

During the year, NFL also continued to strengthen its IT infrastructure and network architecture to ensure secure and uninterrupted access to critical business applications. In this direction, the Company deployed a Software-De ned Wide Area Network (SD-WAN) solution to provide seamless, secure and reliable connectivity across all operational locations. In addition, critical business applications are hosted in an ISO 27001:2022 standard data centre, thereby supporting enhanced business continuity, system availability and information security.

Overall, NFL continued to lead a series of digital transformation initiatives during the year, focused on streamlining operations, strengthening information security and adopting emerging technologies to maintain a competitive edge in an increasingly dynamic business environment.

During the nancial year 2025-26 no Cyber Security Incident, Cyber Breaches or loss of data/documents were observed in the Company.

During the year, the Company continued to maintain and strenghthen its cyber security framework through proactive preventive monitoring and control mechanisms aimed at safeguarding its digital assets, applications and network infrastructure. As part of these measures, NFL implemented Honey Pot sensors at strategic points within its IT environment to enable early detection and monitoring of potential cyber threats. Further, the hosting of critical business applications in ISO 27001:2022 certi ed data centre along with the deployment of SD-WAN solution, has signi cantly strengthened the Company's cyber security posture and improved resilience against evolving cyber risks.

Statutory Auditors

The Statutory Audit of your Company was conducted by Chartered Accountants rms M/s Dassani & Associates LLP, Chartered Accountants and M/s R S P H & Associates, Chartered Accountants, Joint Auditors appointed by Comptroller & Auditor General of India (C&AG). Auditor's Report on the Financial Statements including consolidated Financial Statements of the Company for the nancial year 2025-26 is attached.

Proposal authorizing Board of Directors to decide & x remuneration of Statutory Auditors appointed/ to be appointed by the Comptroller and Auditor General of India for the FY 2026-27 is placed for your approval.

Explanation in response to Auditor's Quali cation

Statutory Auditors of the Company have issued an Audit Report with Unmodi ed opinion on Audited Financial Results of the Company (Standalone & Consolidated) for the nancial year ended 31.03.2026.

Comments of C&AG

The Financial Statement (Standalone and consolidated) of the Company are subject to comments of C&AG of India under Section 143(6)(b) read with Section 129(4) of the Companies Act, 2013 which shall be sent to shareholders separately.

Cost Auditors

As prescribed under Section 148 of the Companies Act, 2013 and the Companies (Cost Records and Audit) Rules, 2014, the cost accounting records are being maintained by all the Units of the Company. Cost Audit for 2025-26 was carried out by Cost Auditors M/s K.L. Jaisingh & Co., M/s Diwanji & Associates, M/s TYPSGO & Co. and M/s Dhananjay V. Joshi & Associates, as prescribed under the Companies Act, 2013 and Rules framed thereunder. M/s Dhananjay V. Joshi & Associates acted as the Lead Cost Auditor. Consolidated Cost Audit Report for the FY 2024-25 was led with Ministry of Corporate A airs (MCA) on 11.09.2025.

Internal Auditors

Company has an Internal Audit Department headed by Chief General Manager I/c. To carry out Non-Technical Audit, your company had appointed nine Chartered Accountant rms namely M/s AMAA & Associates, M/s SP Chopra & Co., M/s JLN US & Co., M/s KK Goel & Associates, M/s JN Gupta & Co., M/s Dharam Raj & Co., M/s ASA & Associates, M/s Ravi Rajan & Co., and M/s S.L Chhajed & Co. for the year 2025-26. Technical Audit and IT/ EDP Audit was carried out by in-house internal audit teams.

Reporting of Internal Auditors

Internal auditors are appointed for various Units / O ces of NFL at all major locations. Internal audit is conducted by external independent Audit rms and their reports are put up to the concerned HoD's at places where they are appointed. Thereafter, the reports and the action taken by the Management is reviewed by the Audit Committee.

Secretarial Auditors

M/s Agarwal S. & Associates, Practicing Company Secretaries was appointed by the Members of the Company at

the 51 Annual General Meeting held on 29 September, 2025 for undertaking the Secretarial Audit for a term of

ve consecutive nancial years commencing from April 1 , 2025 till March 31 , 2030 in terms of Section 204 of Companies Act, 2013 and Rules made there under. Secretarial Audit Report for the year 2025-26 and Management's explanation to Secretarial Auditor's observations are appended as Annexure-13 which forms part of this Report.

Annual Secretarial Compliance Report for the Financial Year ended 31.03.2026 issued by M/s Agarwal S. & Associates, Practicing Company Secretaries, under Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is appended as Annexure-14 which forms part of this Report.

Compliance with Secretarial Standards

The Company complies with all applicable Secretarial Standards issued by "The Institute of Company Secretaries of India".

Audit Committee

The detailed disclosures have been made in the Corporate Governance Report annexed to this report.

Nomination & Remuneration Committee and Remuneration Policy

Disclosures regarding Nomination & Remuneration Committee and Remuneration Policy are given in the Corporate Governance Report annexed to this report.

Stakeholders' Relationship Committee

Disclosures regarding Stakeholders Relationship Committee are given in the Corporate Governance Report annexed to this report.

Corporate Social Responsibility and Sustainable Development Committee

Disclosures regarding Corporate Social Responsibility and Sustainable Development Committee are given in the Corporate Governance Report annexed to this report.

Company's policy on Director's appointment and remuneration

Ministry of Corporate A airs has granted exemption vide noti cation No. GSR463 (E) dated 05.06.2015 to the Government Companies from the provisions of Section 134(3)(p) of the Companies Act, 2013. Director's appointment and remuneration is decided by the Government of India. Keeping in view the exemption, no Remuneration Policy has been formulated.

Board & Committee Meetings

The details of Board Meetings, Committee Meetings and Meetings of Independent Directors are given in the Corporate Governance Report annexed to this report.

Annual Return u/s 92(3) of the Companies Act, 2013

The Annual Return of the Company will be made available on the website of the Company at www.nationalfertilizers.com.

Investor Education and Protection Fund

The Company has complied with all the provisions relating to the Investor Education and Protection Fund (IEPF) under the Companies Act, 2013 and The Investor Education and Protection Fund Authority (Accountng, Audit, Transfer and Refund) Rules, 2016, made thereunder. Company Secretary is the Nodal O cer to deal with IEPF Authority and compliances related thereto.

During the year 2025-26, an amount of 4,06,189.59 of unpaid/unclaimed dividend amount was transferred to Investor Education and Protection Fund on account of unpaid/unclaimed dividend. Accordingly as per Section 124(6) of the Companies Act, 2013 and Rules noti ed thereunder, 8,961 shares were transferred to demat account of IEPF. The details of the unpaid/unclaimed dividend and shares transferred to IEPF Account for the previous years are available at the website of the Company www.nationalfertilizers.com.

Listing

Company's equity Shares are listed at National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). Other disclosures regarding listing regulations have been made in Corporate Governance Report.

Listing Fee

Company has paid requisite listing fee to the stock exchanges during the year 2025-26.

Service to Shareholders

All matters relating to transfer/transmission of shares, issue of duplicate share certi cates, payment of dividend, de-materialization and re-materialization of shares and redressal of investors grievances are carried out by the Company's RTA i.e. M/s MAS Services Limited, New Delhi.

Code of Conduct

Board Members and the Senior Management Personnel have a rmed compliance with the Code of Conduct for the nancial year ended 31.03.2026. Code of Conduct has been uploaded on the website of the Company at www.nationalfertilizers.com.

Corporate Policies & Codes

Details regarding various corporate policies & codes are given in the Corporate Governance Report and also available on the website of the Company at www.nationalfertilizers.com.

Disclosure pursuant to FEMA Regulation

FEMA Regulations applicable to Companies owned or controlled by non-resident entity(s) are not applicable to NFL.

Key Business Development

Overview of the Indian & Global fertilizer industry is given in the Management Discussion & Analysis Report annexed to this report.

Disclosure regarding frauds

No fraud has been reported by the Auditor to the Audit Committee or to the Board during the FY 2025-26.

Details of the sickness of the Company

Not applicable.

Key Managerial Personnel (KMP)

In compliance with provisions of Section 203 of the Companies Act, 2013, Key Managerial Personnel (KMP) position as on 31.03.2026 is as follows:

Dr. U. Saravanan, Chairman & Managing Director.

Shri Ashok Jha, Company Secretary.

Further, Shri Hira Nand, Chief Financial O cer and Director (Finance) ceased to be CFO & D(F) w.e.f. 01.03.2026 on attaining the age of superannuation.

Changes in Composition

Shri Megh Nath Goyal was appointed as Director (Technical) in terms of DoF Order No. 82/1/2021-HR-PSU (e-27314) dated 04.11.2025 w.e.f. 05.11.2025.

Ms. Ritu Goswami, Director (Technical), Rashtriya Chemicals & Fertilizers Limited (RCFL) who was holding the additional charge of Director (Technical), National Fertilizers Limited w.e.f. 22.07.2025 ceased to be the Director (Technical) on appointment of regular incumbent w.e.f. 05.11.2025.

Shri Anurag Rohatgi was appointed as an Additional Director (Part Time Government Nominee Director) w.e.f. 19.12.2025 vice Shri Bharat Bhushan, in terms of DoF Order No. 95/1/2019-HR-PSU (Part -2) (e-31042) dated 18.12.2025, until further orders.

Shri Hira Nand ceased to be Director (Finance) w.e.f. 01.03.2026 on attaining the age of superannuation.

Shri Kuntal Sensarma was appointed as an Additional Director (Part Time Government Nominee Director) w.e.f. 17.04.2026 vice Dr. Prathibha A., in terms of DoF Order No. 95/1/2019-HR-PSU (Part -2) (e-31042) dated 17.04.2026, until further orders.

The rst term of Shri Jyoti Bhramar Tubid as Non-Executive Independent Director was completed on 20.04.2025. He was further appointed as Non-Executive Independent Director for a period of one year w.e.f. 05.05.2025 in

terms of DoF Letter No. 95/01/2025-HR-PSU (e-38792) dated 5 May, 2025. He has completed his tenure on 04.05.2026 and ceased to be Non-Executive Independent Directors w.e.f. 05.05.2026.

Shri Rabi Ranjan Sen was appointed as Non-Executive Independent Director for a period of one year w.e.f 05.05.2025 in terms of DoF Letter No. 95/01/2025-HR-PSU (e-38792) dated 5 May, 2025. He has completed his tenure on 04.05.2026 and ceased to be Non-Executive Independent Directors w.e.f. 05.05.2026

Shri Arvind Kumar was appointed as Director (Finance) in terms of DoF Order No. 82/3/2013-HR-PSU (Part) (e-31064) dated 08.05.2026 w.e.f. 12.05.2026.

Shri Mahesh Chander Gupta was assigned the additional charge of Director (Finance), National Fertilizers Limited w.e.f. 03.03.2026 in terms of DoF Order No. 82/3/2013-HR PSU (e-28269) dated 03.03.2026 for a period of three months with immediate e ect or till regular incumbent joins the post, or until further orders, whichever is the earliest. He was holding additional charge of Director (Finance) upto 11.05.2026.

Shri Mahak Singh was appointed as Non-Executive Independent Director for a period of three years w.e.f.

14.08.2026 in terms of DoF Letter No. 95/01/2025(v)-HR-PSU (e-38759) dated 13 August, 2026.

Details of tenure of Directors are provided in the Corporate Governance Report.

Re-appointment of Directors at the AGM

Pursuant to the provisions of Section 152 of the Companies Act, 2013, Dr. U. Saravanan (DIN: 07274628) and Shri Mahesh Chander Gupta (DIN: 10996394) will retire by rotation at the ensuing AGM and being eligible have o ered themselves for re-appointment.

Declaration by Independent Directors u/s 149(6) of the Companies Act, 2013

All Independent Directors have given declaration that they meet the criteria of Independence as laid down in Section 149(6) of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. In the opinion of the Board, the Independent Directors posses integrity and necessary expertise & experience.

Re-appointment of Independent Directors

As per Section 149(10) of the Companies Act, 2013, none of the Independent Directors have been reappointed on the Board of the Company during the FY 2025-26.

Although, the rst term of Shri Jyoti Bhramar Tubid as Non-Executive Independent Director was completed on 20.04.2025. He was further appointed as Non-Executive Independent Director for a period of one year w.e.f.

05.05.2025 in terms of DoF Letter No. 95/01/2025-HR-PSU (e-38792) dated 5 May, 2025. He has completed his second tenure on 04.05.2026 and ceased to be Non-Executive Independent Directors w.e.f. 05.05.2026.

Disquali cations of Directors

None of the Directors have committed any disquali cation as provided under Section 164 of the Companies Act, 2013.

Remuneration to Directors

Details of Remuneration to Directors and Company Secretary are given in the Corporate Governance Report annexed to this Report.

Performance evaluation of Board of Directors

The details regarding performance evaluation of Board of Directors have been given in the Corporate Governance Report.

Directors' Responsibility Statement

Pursuant to the requirement of Section 134(3) (c) of the Companies Act, 2013, your Directors con rm that:

a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; b) The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of a airs of the Company at the end of the nancial year 2025-26 and of the pro t of the Company for that period;

c) The Directors had taken proper and su cient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Directors had prepared the annual accounts on a going concern basis;

e) The Directors had laid down internal nancial controls to be followed by the Company and that such internal nancial controls are adequate and are operating e ectively; and

f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating e ectively.

Acknowledgments

The Board of Directors acknowledge their gratitude for the valuable guidance and support received from the various wings of Government of India, in particular Department of Fertilizers, Fertilizer Industry Coordination Committee (FICC), various State Governments, Financial Institutions, Banks, stakeholders and all others whose continued support has been a source of strength to the Company.

Your Directors also acknowledge the suggestions received from Statutory Auditors, Internal Auditors, Cost Auditors, Secretarial Auditors and Comptroller and Auditor General of India and are grateful for their continued support and cooperation.

The Board would like to place on record its appreciation to the hard work, commitment and unstinting e orts put in by the employees at all levels throughout the year. Board also place on record active support and cooperation received from Employees Trade Union and O cers Association for sustained improvements.