3M India Ltd

To the Members of

Your Directors are pleased to present the Thirty Eight (38^th) Annual Report of the Company. The Financial Statements of the Company for the financial year ended March 31, 2025 are prepared in compliance with the applicable provisions of the Companies Act, 2013 including Indian Accounting Standards. The audited Financial Statements together with the Auditors' Report thereon form a part of the Annual Report.

(Rs. in lakhs)

1. The financial year ending March 31, 2025, reflects merged financials following the amalgamation of 3M Electro & Communication India Private Limited (a wholly owned subsidiary) with 3M India Limited. To facilitate comparison, the values for the financial year ended March 31, 2024, have been adjusted to include the effects of the merger.

The Board is pleased to recommend a dividend of Rs. 535 per equity share (final dividend of Rs. 160 per equity share and special dividend of Rs. 375 per equity share) at its meeting held on May 28, 2025. This payment is subject to the approval of the Members in the ensuing Annual General Meeting of the Company. The dividend will be paid to all those equity shareholders of the Company whose names appear in the Register of Members and whose names appear as beneficial owners as per the beneficiary list furnished the purpose by National Securities Depository Limited and Central Depository Services (India) Limited as on record date fixed for this purpose.

The Board of Directors approved the Dividend Distribution Policy on February 9, 2017 in terms of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015. The Policy is available at https://www.3mindia. in/3M/en_IN/company-in/about-3m/financial-facts-local/ and the same is annexed as "Annexure J", which forms part of this report.

Transfer of dividend to the Investor Education and Protection Fund, if any: NA

The Company does not propose to transfer any amounts to general reserves.

The global economic environment remained uncertain during the year, as geopolitical tensions led to cautious investments, rising costs, and supply chain challenges. Despite these headwinds, India's economy stayed strong and delivered steady growth. During the year, your Company continued to monitor external trends and their impact on operations. The Company remained resilient, maintaining stable revenues while focusing on efficiency and agility to create value for all stakeholders.

India's automotive industry remains a key contributor to the country's GDP and manufacturing sector. The increasing adoption of electric vehicles has created new opportunities for the Company to introduce innovative products and solutions. Additionally, the Company's offerings across the automotive value chain include adhesives, abrasives, and products designed for the automotive aftermarket segments. Demonstrating a strong commitment to growth, the Company expanded its presence across various segments of the broader industrial market.

The government's increased capital expenditure in infrastructure development aimed at modernising roads, railways, regional airports, and other key projects has opened growth avenues for the Company. These initiatives have driven demand for the Company's transportation safety solutions, as well as its commercial and industrial offerings.

Government policies, particularly the Product Linked Incentive (PLI) schemes, have been instrumental in fostering growth in emerging sectors such as mobile phones, electronics manufacturing, and defense. The Company has strategically aligned itself with leading manufacturing firms, supplying essential materials and supporting the broader manufacturing ecosystem.

The fiscal year saw significant expansion of modern trade and e-commerce channels. This rise in consumer demand across these channels directly impacted the Company's home improvement and cleaning products, enhancing market share and driving forward the penetration of its various consumer product lines.

The Company effectively maintained a stable cash position and managed costs efficiently across all business operations. In response to inflationary pressures, strategic price adjustments were implemented, while proactive cost-streamlining measures helped mitigate the impact of other external constraints throughout the year.

During FY 24-25, the Company's sourcing operations continued to monitor the markets and optimised the costs across the goods and services, including raw materials procured.

The Company's revenue from operations increased by 6.12% at Rs. 444,555.63 lakhs for the financial year ended March 31, 2025 compared to Rs. 418,936.24 lakhs in the previous financial year. The Profit Before Interest and Depreciation is Rs. 83,986.87 lakhs compared to Rs. 83,736.63 lakhs for the previous financial year. Profit Before Tax isRs. 77,340.66 lakhs compared to Rs. 78,121.42 lakhs for the previous financial year. The operating margin for the current year is 18.60% compared to 19.62% for the previous financial year. Total Comprehensive Income is Rs. 47,125.08 lakhs compared to Rs. 58,208.36 lakhs for the previous financial year. Export Sales is Rs. 2,377.99 lakhs for the financial year ended March 31, 2025 compared to Rs. 1,643.76 lakhs in the previous financial year, a increase of 44.67% due to higher demand in the global market.

The Safety and Industrial business increased by 6.04%; Transportation business increased by 1.65%; Health Care business increased by 13.71%; and Consumer business increased by 8.62%.

The Earnings Per Share (Basic and Diluted) of the Company for FY 24-25 was Rs. 422.60 per share as compared to Rs. 517.90 per share in the previous financial year, with an decrease of 18.40%. Detailed analysis of the performance has been discussed in the Management's Discussion and Analysis Section of the Annual Report.

During the period under review, the Hon'ble National Company Law Tribunal (NCLT), Bengaluru, approved the Scheme of Amalgamation of 3M Electro & Communication India Private Limited, wholly owned subsidiary of the Company with 3M India Limited by its Order dated August 8, 2024. Pursuant to Sections 230 to 232 of the Companies Act, 2013 read with the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016. In terms of the Order, the Hon'ble NCLT has directed the Appointed Date of the Scheme to be treated as April 1, 2023.

The Company operates an Information Security

Management System (ISMS), centered at the Head Office, St. Paul, USA which is certified to the requirements of ISO/ IEC 27001:2013 and has continued to meet the certification requirements since 2014. In 2022, we added ISO/ IEC 27017:2015 requirements for cloud services. Enhancing and optimising cybersecurity protection continues to remain one of the top priorities. The Company conducts monthly social engineering simulation assessments for all users globally to increase their knowledge on how to identify and report phishing attempts. Training is delivered to employees worldwide on an annual basis to mitigate human- based cybersecurity risk. Awareness efforts include relevant communications disseminated on various channels to promote a secure culture within 3M. Other frameworks include NIST CSF (The National Institute of Standards and

Technologies, Cybersecurity Framework) which is a cross- industry standardised framework that several organisations use to manage their cybersecurity programmes. NIST CSF provides a common language and lifecycle approach to understand, manage and express cybersecurity risks. It helps identify and prioritise actions to reduce risk and aligns policy, business and technology approaches to manage that risk. The cybersecurity landscape is constantly evolving and new threats and challenges emerge. The Company consistently reviews and re-evaluates its capabilities to identify and respond to these threats.

Continued disruptions due to geopolitical tensions, natural disasters, and labour shortages have affected supply chains worldwide, leading to delays and increased costs. Uncertainty due to tariffs adds to that complexity. Focus is on building resilient supply chains and reducing complexity by localisation.

During FY 24-25, the Company paid various taxes on account of its business/operation viz., CGST, IGST, Direct Taxes and Customs Duty amounting to Rs. 144,689 lakhs in aggregate.

Capital Investments during FY 24-25 was Rs. 5,542.02 lakhs (Net of capital work-in-progress and capital advances) (PY 23-24: Rs. 3,141.42 lakhs).

There have been no material changes and/or commitments affecting the financial position of the Company since close of the financial year and till the date of this report.

There were no changes in the nature of business during the year under review.

The Management Discussion and Analysis Report is annexed herewith as "Annexure A", which forms part of this report.

A separate Report on Corporate Governance in terms of Regulation 34 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as "Listing Regulations") along with a Certificate from a Practicing Company Secretary regarding compliance to the conditions stipulated under Chapter IV of the Listing Regulations is provided as "Annexure B", which forms part of this report.

A separate section on Business Responsibility and Sustainability Report (BRSR) is annexed as "Annexure C" and forms a part of this report as required under Regulation 34(2)(f) of the Listing Regulations.

The Company has only one class of Share, i.e. Equity Share with a face value of Rs. 10 each.

The Authorised Share Capital as at March 31, 2025 is Rs. 117,650,700 (divided into 1,17,65,070 Equity Shares of Rs. 10 each).

The Issued/Subscribed and fully Paid-up Share Capital as at March 31, 2025 is Rs. 112,650,700 (divided into 1,12,65,070 Equity Shares of Rs. 10 each).

Pursuant to the Scheme of Arrangement for amalgamation of 3M Electro & Communication India Private Limited (‘3M E&C') with 3M India Limited (‘the Company'), as approved and Order dated August 8, 2024 passed by Hon'ble National Company Law Tribunal, Bengaluru, the authorised share capital of 3M E&C (Rs. 50 lakhs) is combined with the authorised share capital of the Company. According, the authorised share capital of the Company stands revised (increased) by an amount of Rs. 50 lakhs i.e., revised from Rs. 112,650,700 toRs. 117,650,700 (consisting of 1,17,65,070 shares of Rs. 10 each).

During the year under review, the Company has not issued Equity Shares nor Shares with differential voting rights nor granted Stock Options nor Sweat Equity.

The Company has upto date paid the requisite listing fee to the National Stock Exchange of India Limited and BSE Limited where the Company's Equity Shares are listed.

The following appointment and re-appointment were made during the financial year till the date of the report:

The Board of Directors of the Company, on recommendation of the Nomination and Remuneration Committee, at its meeting held on May 28,2024 appointed Mr. Narumanchi Venkata Sivakumar (DIN: 03534101) as an Additional Director in the category Non-Executive Independent Director of the Company with effect from July 15, 2024. The Members of the Company have approved his appointment by way of an Ordinary Resolution at the 37^th Annual General Meeting held on August 6, 2024.

The Board of Directors of the Company, on recommendation of the Nomination and Remuneration Committee, at its meeting held on May 28,2024 appointed Mr. Andrew Bennett (DIN: 10681735) as an Additional Director in the category Non-Executive Non-Independent Director of the Company with effect from July 15, 2024. The Members of the Company have approved his appointment by way of an Ordinary Resolution at the 37^th Annual General Meeting held on August 6, 2024.

The Board of Directors of the Company, on recommendation of the Nomination and Remuneration Committee, on December 25, 2024 appointed Ms. Kong Sau Wai Elizabeth (DIN: 10879418) as an Additional Director in the category Non-Executive Non-Independent Director of the Company with effect from January 1, 2025. The Members of the Company have approved her appointment by way of an Ordinary Resolution through Postal Ballot notice dated December 25, 2024.

The Board of Directors of the Company, on recommendation of the Nomination and Remuneration Committee, at its meeting held on March 13, 2025 appointed Mr. Jayanand V. Kaginalkar (DIN: 07904558) as an Additional Director and Whole-Time Director of the Company for the period from April 1, 2025 to March 31, 2027, categorised as Executive, Non-Independent Director. The Members of the Company have approved his appointment by way of an Ordinary Resolution through Postal Ballot notice dated March 13, 2025.

The Board of Directors of the Company, on recommendation of the Nomination and Remuneration Committee, at its meeting held on March 13, 2025 appointed Ms. Jung Hyun Kim (DIN: 10954275) as a Non-Executive and Non- Independent Director of the Company with effect from April 1, 2025. The Members of the Company have approved her appointment by way of an Ordinary Resolution through Postal Ballot notice dated March 13, 2025.

The Board has unanimously appointed Ms. Radhika Rajan (DIN: 00499485) (Non-Executive, Independent Director of the Company) as the "Chairperson of the Board", with effect from March 26, 2025.

Ms. Kong Sau Wai Elizabeth (DIN: 10879418) will retire by rotation at the ensuing Annual General Meeting and being eligible, offers herself for re-appointment. The details of Ms. Kong Sau Wai Elizabeth are provided in the Notice of the Annual General Meeting. The Board of Directors recommend her re-appointment.

The following resignation/ retirement were accepted during the financial year till the date of the report:

Mr. Biren Gabhawala (DIN: 03091772) ceased to be Independent Director of the Company upon completion of his second term of 5 (five) on August 13, 2024.

Mr. Amit Laroya (DIN: 00098933) resigned as a Director of the Company with effect from November 12, 2024, due to impending retirement from the Company.

Ms. Vidya Sarathy (DIN: 01689378) resigned as a Whole-time Director and Chief Financial Officer (Key Managerial Personnel) of the Company with effect from January 29, 2025 to pursue opportunities outside of the Company.

Mr. Bharat D. Shah (DIN: 00136969) ceased to be Independent Director of the Company and as a Chairperson of the Board upon completion of his second term of 5 (five) on March 26, 2025.

Mr. Andrew Paul Bennett (DIN: 10681735) resigned as a Director of the Company with effect from April 1, 2025, due to various other professional commitments and responsibilities within the 3M Group.

Ms. Yun Jin (DIN: 09474323) resigned as a Director of the Company with effect from April 1, 2025, consequent upon her taking up a new role and responsibility within 3M Group.

The Board place on record their sincere appreciation for the valuable contributions made by Mr. Biren Gabhawala, Mr. Bharat D. Shah, Mr. Amit Laroya, Ms. Vidya Sarathy, Mr. Andrew Paul Bennett and Ms. Yun Jin, to the progress of the Company during their tenure as Directors of the Company.

Based on the recommendation of the Nomination and Remuneration Committee and the Audit Committee, the Board of Directors of the Company appointed Mr. Nikhil Arora as Chief Financial Officer with effect from May 5, 2025. Mr. Prasad Balakrishnan, acted as the interim CFO with effect from January 30, 2025 following the resignation of Ms. Vidya Sarathy as a Whole-time Director and Chief Financial Officer (Key Managerial Personnel) of the Company with effect from January 29, 2025.

As at the financial year ended March 31, 2025, Mr. Ramesh Ramadurai, Managing Director, Mr. Prasad Balakrishnan, Interim Chief Financial Officer and Mr. Pratap Rudra Bhuvanagiri, Company Secretary and Compliance Officer, were the Key Managerial Personnel of the Company.

The Company has received necessary declarations from each Independent Director of the Company under the provisions of Section 149(7) of the Companies Act, 2013, that they meet the criteria of Independence laid down under the provisions of Section 149(6) of the Companies Act, 2013 read with Listing Regulations. All the Independent Directors have also confirmed under Regulation 16(b) of SEBI (LODR) Regulations, 2015 that they are not Non-Independent Director of another Company on the Board of which any Non- Independent Director of the listed entity is an Independent Director. In the opinion of the Board, all the independent directors have the integrity, expertise, experience and proficiency necessary for the role.

During FY 24-25, Seven (7) Meetings of the Board were held. The Company has Five (5) Board Committees. The composition and number of Meetings attended by each Director/Committee Member are furnished in the Corporate Governance Report.

As on the financial year ended March 31, 2025, the Audit Committee of the Company consisted of Two (2) Non-Executive Independent Directors and One (1) Non-Executive Director and all of them have financial and accounting knowledge. The Members of the Committee as on March 31, 2025, were Mr. N. V. Sivakumar (Chairperson), Ms. Radhika Rajan and Ms. Yun Jin. The Committee comprises majority of Independent Director. The Board has accepted all the recommendations made by the Audit Committee during the year under review.

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a Policy for the selection and appointment of Directors, Senior Management and other employees and their remuneration. The Policy is available at https://www.3mindia.in/3M/en_IN/company-in/about-3m/financial-facts-local/.

The composition, criteria for selection of Directors and the terms of reference of the Nomination and Remuneration Committee is stated in the Corporate Governance Report.

The Board of Directors has carried out an annual evaluation of its own performance, its Committees and Directors pursuant to the requirements of the Companies Act, 2013, Listing Regulations and as per the Guidance Note issued by SEBI. Further, the Independent Directors, at their separate meeting held during the year, reviewed the performance of the Board, its Chairperson and Non-Executive Directors and other items as stipulated under the Listing Regulations.

The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

Disclosure pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed herewith as "Annexure D", which forms part of this report.

During the year under review, no Commission or Remuneration was paid to the Executive Directors from Holding/ Subsidiary Companies.

To the best of the knowledge and belief and according to the information and explanations obtained, your Directors state in terms of Section 134 (5) of the Companies Act, 2013 (the Act):

(a) that in the preparation of the annual financial statements for the year ended March 31, 2025, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.

(b) that they had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2025 and of the profit of the Company for the year ended on that date.

(c) that they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(d) that they had prepared the annual financial statements on a going concern basis.

(e) that they had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

(f) that they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

The Company's Internal controls are aligned with 3M Global's internal control over financial reporting which is based on the framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Controls Integrated Framework (2013). This framework essentially has two elements:

(1) structures, policies and guidelines designed to achieve efficiency and effectiveness in operations and compliance with laws and regulations and

(2) an assurance function provided by Internal Audit. The Directors have laid down internal financial controls to be followed by the Company and such policies and procedures are adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

The Company has in place adequate systems of internal controls commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorised use or losses, executing transactions with proper authorisation and ensuring compliance of corporate policies.

The Company, through its own Corporate Internal Audit Department, carries out periodic audits to cover all the offices, factories and key areas of business segments based on the plan approved by the Audit Committee and bring out any deviation to internal controls procedures. The Internal Auditor functionally reports to the Audit Committee and administratively to the Managing Director. The observations arising out of audit are periodically reviewed and compliance ensured. The summary of the Internal Audit observations and status of the implementation is submitted to the Audit Committee of the Board of Director. The status of implementation of the recommendations is reviewed by the Committee on a regular basis and concerns, if any, are reported to the Board.

During the year under review, there were no frauds reported by the Auditor to the Audit Committee or to the Board.

During the year under review, the Company has neither accepted nor renewed any deposits from public within the meaning of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.

During the year under review, the Company has not given any Loans, provided any guarantees or made any Investments covered under Section 186 of the Companies Act, 2013.

All Related Party Transactions (RPTs) which were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. All RPTs are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee is obtained on a yearly basis for the transactions which are foreseeable and repetitive in nature. A statement exhibiting details of all actual RPTs versus the approval is placed before the Audit Committee for approval on a quarterly basis. A Policy on RPTs as approved by the Board is available at https:// www.3mindia.in/3M/en_IN/company-in/about-3m/ financial-facts-local/.

The Company being a part of 3M conglomerate, has rights to carry out the business within India and accordingly, has access to the Group's synergies, state of the art products and technologies, competencies and "3M" brand name which are very critical and essential to carry out its business operations more efficiently in an increasingly globalised and competitive scenario. As a part of its regular business, the Company purchases, avails/renders services from/to 3M Company, USA and/or its group companies at arm's length basis. None of the Directors and the Key Managerial Personnel has any pecuniary relationships or transactions vis-a-vis the Company.

The RPTs are necessary, normal to business and play a significant role in the Company's business operations and also form an integral part of the Company's business.

The Company obtained the approval of the Members at the 37^th Annual General Meeting held on August 7, 2024 for material related party transactions with 3M Company, USA and 3M Innovation Singapore Pte Ltd for the period of 1 year i.e., upto the ensuing 38th Annual General meeting. The Company proposes to seek approval of the Members for material related party transactions to be entered by the Company with 3M Company, USA at the 38^th Annual General Meeting, commencing from the date of Members' approval at the 38^th Annual General Meeting to the 39 ^th Annual General Meeting. The estimated/proposed RPTs are in the Ordinary and normal course of business and on Arms'

Length basis and accordingly the Board recommends the Ordinary Resolution set forth in the Notice for the approval of the Member.

Details of the related party transactions as required under Section 134(3)(h) read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as "Annexure E", which forms part of this report.

The Company is committed to supporting communities in India through education, community and environmental programmes, with a focus on underrepresented and underserved communities. The Company helps build sustainable communities through strategic CSR investments and partnerships around the geographical areas of operation. Programmes are implemented in accordance with the activities listed under Schedule VII of the Companies Act, 2013. During FY 24-25, 58% of the CSR funds were spent towards education programmes, 18% on community programmes and 24% on environmental initiatives. The main project interventions under each of the focus areas have been highlighted below:

As a science-based company, 3M is motivated to support equitable pathways to science and technology education. During FY 24-25, the Company implemented a STEM Scholarships programme for undergraduate girls, expanded the existing STEM education programme to Government schools in other locations and continued to support the education of girl students in rural areas.

1. Protect Nanhi Kali: Educating the Girl Child:

Since 2018, the Company has collaborated with the K.C. Mahindra Education Trust to support girl child education through their flagship programme, Project Nanhi Kali. In the fiscal year 2024 25, the Company continued its commitment by aiding the education of 2,851 girls across 189 Academic Support Centers in the rural blocks of Ambegaon and Khed in Pune district, Maharashtra. This initiative has implemented several impactful interventions aimed at improving learning outcomes and boosting the confidence of to pursue higher education. Digital learning tools have significantly enhanced academic performance, while the integration of life skills and physical education into the curriculum has promoted holistic development. To encourage physical activity and sportsmanship, Project Nanhi Kali organises the annual Toofaan Games at the village, district, and national levels across all its Academic Support Centers in India. This serves as an inspiring testament to the growing confidence and talent among these young girls. Furthermore, the programme recognises the achievements of its graduates to motivate current students. Last year, 171 students who completed Class 10 were honoured, with many receiving distinctions. The initiative has also helped prevent school dropouts stemming from household responsibilities or economic pressures. Parents, witnessing their daughters thrive academically, have become more supportive of their aspirations for higher education, marking a significant shift in community attitudes and a powerful outcome of this ongoing initiative.

2. 3M Wonder Tinkering Labs Programme to encourage and promote Science:

The Company has maintained its investment in the Wonder Tinkering Lab initiative that started in fiscal year 2022-23. Officially launched in 2023 in Pune, the programme has now extended to Bengaluru and Ahmedabad. Collaborating with the Learning Links Foundation, it seeks to inspire future innovators in 30 government schools across these cities.

These labs serve as dedicated maker spaces in government schools, allowing over 8000 students from grades 5 to 10 to engage hands-on with STEM concepts. They help students build essential skills such as problem-solving, critical thinking, and collaboration through project work and prototype development that addresses real-world challenges. Under the guidance of Innovation Coaches, students develop prototypes of their models to showcase at interschool science carnivals and the Annual Science Fair. Additionally, they visit the Company's manufacturing and R&D campuses to gain exposure to a professional environment. Over 60 teachers are actively involved, equipped with the skills to integrate STEM learning into their classrooms, ensuring sustained impact over time. Students have developed over 400 unique projects, showcasing their creativity and problem-solving abilities. These projects reflect their growing capacity to innovate and apply STEM knowledge in meaningful ways.

3. Pragyaan Girls in STEM Scholarships Programme:

The Company has reinforced its commitment to STEM education by introducing the Pragyaan Girls in STEM Scholarships for the FY 23-24. In partnership with the Foundation for Excellence, this initiative aims to empower 200 academically talented girls from underprivileged backgrounds by providing them with scholarships and essential skills for future job readiness. The programme goes beyond just financial assistance; it also offers holistic development through a series of quarterly sessions led by 3M volunteers.

These sessions are designed to ensure that students acquire academic knowledge and practical skills vital for success in STEM careers. Moreover, the programme provides industry exposure by facilitating interactions with women leaders in STEM. These interactions offer students broader perspectives on the diverse career opportunities available in STEM and introduces them to successful role models who have established strong professional careers.

Community initiatives include interventions addressing specific community needs related to health, infrastructure, skilling and livelihood in underserved communities, in and around the geographical areas of operation or the Company's response to natural disasters.

1. We. Are All Us Programme.

In March 2024, the Company launched the We Are All Us programme to support the Gender and Sexual minorities in Bengaluru, reinforcing its commitment to equality and inclusion. In partnership with Sangama, a leading NGO for gender and sexual minority rights, and Solidarity Foundation, the initiative established a Community Resource Center (CRC-Help Desk) a safe space that offers essential services and support. The CRC has facilitated providing access to 500+ community members to social security services; 388 received healthcare access, including several members who received self-identity support through regular meetings and awareness sessions. 40 members received skill development training, out of which 12 have been placed in various roles. Over 5000 individuals have participated in awareness and sensitisation sessions. The Community Resource Center serves as a one-stop hub for resources that enable community members to lead safer, healthier, and more empowered lives.

2. Smile on Wheels Programme: Mobile Health Clinics in Aspirational Districts.

The Company is committed to enhancing community health and well-being through its impactful partnership with the Smile Foundation. This collaboration focuses on providing primary healthcare services to underserved and remote rural populations across India. Specially equipped mobile medical vans are deployed in four identified districts: Siddharthnagar in Uttar Pradesh, Balangir in Odisha, Goalpara in Assam, and Ranjangaon in Maharashtra. These regions have been selected based on their healthcare access challenges and developmental needs. The mobile clinics offer a combination of preventive and medical services. The vans are fully equipped to provide general health check-ups, maternal and child healthcare, diagnostic tests, and health education sessions. The core idea is to deliver "health at the doorstep", particularly for communities where traveling to the nearest hospital or clinic may be prohibitively difficult due to distance, lack of transportation, or financial constraints. Since the launch of the programme in September 2021, this mobile healthcare initiative has made a significant impact, providing medical attention to over 2,35,644 people.

Our environment commitments extend to our communities through interventions to promote water conservation in water-stressed areas and transitioning to renewables in rural areas. We are working with local communities to promote water recycling and conservation since our manufacturing sites are located in water stressed regions. Ultimately, we aim to help these communities build and manage their own water efforts in the future.

1. Community Water Resilience Programme:

Water scarcity is a significant challenge across many regions of India, especially in drought-prone areas where communities rely heavily on rainfall for agriculture and daily needs. Considering this urgent issue, the Company recognised water usage and availability as an environmental risk. Using the Aqueduct Water Risk Atlas (Aqueduct 3.0) to evaluate its manufacturing locations, the Company discovered that its plant in the Shirur block of Ranjangaon, Pune, was in a high water-stress zone. With average annual rainfall below 550 mm, the region is susceptible to drought. Kendur, one of the villages amongst 11 that were identified as high water-stressed, has a water stress score between 4 and 5 on the Water Risk Atlas. In response, the Company launched a water conservation and management initiative in collaboration with the Water for People India Trust to enhance regional water sustainability, support local farmers, and promote efficient agricultural practices. Hydrogeological studies were conducted, and Kendur was also chosen as the pilot site due to its unique topography, which features hilly ridges and narrow plateaus that are suitable for watershed development. Launched in the first quarter of 2024 (January March), the project implemented a ridge-to-valley watershed approach that included rainwater harvesting, desiltation, and the construction of deep contour trenches, sunken ponds, check dams, and gabion structures designed to capture and store rainwater during the monsoon season and reduce runoff. In addition to developing physical infrastructure, the project emphasised community engagement and training in sustainable water and agricultural practices amongst farmers. These efforts aimed to build local capacity for managing water resources and adapt to climate variability. During the July August 2024 monsoon, the region experienced favourable rainfall, and the interventions successfully captured significant volumes of water. The local farming community reported improved access to water for agriculture, attributed to enhanced rainwater harvesting and groundwater recharge. The programme plans to extend similar initiatives to cover all 11 additional water-stressed villages over the next 3 to 5 years. This expansion will include community engagement, training in climate-resilient farming techniques, and awareness programmes for sustainable water use. Approximately 1,100 households and over 4,800 individuals in Kendur village benefited from improved access to water for agriculture, domestic use, and drinking. This initiative lays the foundation for lasting, community-led water sustainability and helps rural populations better adapt to changing environmental conditions.

2. Rainwater Harvesting at 3M Wonder Tinkering Labs in Bengaluru

In line with its commitment to promoting water conservation, the Company has partnered with Biome Environmental Trust to implement a rainwater harvesting system at four Government schools with the ongoing 3M Wonder Tinkering Labs initiative, located in Anekal, Bengaluru. This programme extends beyond just infrastructure; it actively engages teachers and students in understanding, managing, and taking ownership of the rainwater harvesting system. This approach ensures its long-term effectiveness, encourages responsible usage, and reduces dependency on groundwater. The partnership between the Company and Biome is helping schools in Anekal transform into resilient, water-conscious learning environments, equipping the next generation to think critically about environmental issues and take meaningful action.

3. Solar Electrification of Wonder Tinkering Labs in Pune

To address energy shortages in underserved communities, the Company teamed up with the SELCO Foundation to implement solar electrification projects at all 10 3M Wonder Tinkering Labs in Pune. This initiative aims to combat frequent power outages that disrupt the learning environment and hinder access to quality education. By introducing a reliable and clean energy source, the project seeks to provide uninterrupted learning experiences to students while promoting sustainability and energy equity in schools.

Each solar system installed is tailored to meet the specific needs of the respective schools, ensuring optimal performance and efficiency. Additionally, the systems come with a 5-year warranty after installation, providing ongoing maintenance support and peace of mind for the schools.

The Annual Report on CSR activities is annexed herewith as "Annexure F", which forms part of this report.

Pursuant to Section 197(12) of the Companies Act, 2013 read with Rules 5(2) & (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing details of the top Ten (10) employees in terms of remuneration drawn during the financial year and other employees of the Company employed throughout the year and employees employed for part of the year who were in receipt of remuneration of Rs. 1.02 crores or more per annum and Rs. 8.50 lakhs or more per month respectively is annexed herewith as "Annexure G", which forms part of this report.

The Information on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo stipulated under Section 134 (3) (m) of the Companies Act, 2013 read with Rule 8(3) of The Companies (Accounts) Rules, 2014 is annexed as "Annexure H", which forms part of this report.

The Company has a Risk Management Policy pursuant to the requirements of Listing Regulations. The details of the Risk Management Committee and its terms of reference are set out in the Corporate Governance Report forming a part of the Board's Report.

There were no significant and material orders passed during FY 24-25 by the Regulators/Courts which would impact the going concern status of the Company and its future operations.

There was no application made nor did the Company receive notice of any proceedings against it as pending under the Insolvency and Bankruptcy Code, 2016 during FY 24-25.

The Company has an effective vigil mechanism by way of the Business Conduct Concern Reporting Policy (Whistle Blower Policy) for upholding 3M's Code of Conduct. The details of the said Policy are stated in the Corporate Governance Report and also available at https://www.3mindia.in/3M/ en_IN/company-in/about-3m/financial-facts-local/. During the year, the Company reached out to employees through e-learning modules to create greater awareness with respect to Fair Competition and Anti-Bribery and Corruption. This has helped in achieving a high level of engagement and compliance among the employees.

Messrs. BSR & Co. LLP, Chartered Accountants, Bengaluru (ICAI Firm Registration No. 101248W/W-100022) were re-appointed as the Statutory Auditor of the Company at the 34th Annual General Meeting held on August 26, 2021 to hold office for a second term of five (5) years i.e. from the conclusion of the 34^th Annual General Meeting till the conclusion of the 39^th Annual General Meeting to be held in the year 2026.

Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014, the cost audit records maintained by the Company in respect of the products covered under the said rules are required to be audited by a Cost Accountant. Accordingly, the Board of Directors of the Company at its Meeting held on May 28, 2025 on the recommendation of the Audit Committee, approved the re-appointment of Messrs. Rao, Murthy & Associates, Cost Accountants, Bengaluru, (Firm's Registration No. 000065), to conduct the audit of the cost records of the Company for FY 25-26 at a remuneration of Rs. 575,000 (Rupees Five lakhs Seventy-Five Thousand only) plus taxes as applicable and out of pocket expenses at actuals.

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

As required under the Companies Act, 2013, the remuneration payable to the Cost Auditor is required to be placed before the Members at the General Meeting for their ratification. Accordingly, a resolution seeking ratification of the remuneration payable to Messrs. Rao, Murthy & Associates, Cost Accountants, Bengaluru is included in the Notice convening the Annual General Meeting.

For the financial year ended March 31, 2024, the Cost Audit Report submitted by Messrs. Rao, Murthy & Associates, Cost Accountants, Bengaluru, was filed with the Ministry of Corporate Affairs, well within the due/extended date. Messrs. Rao, Murthy & Associates, has confirmed the cost records for the financial year ended March 31, 2024 are free from any disqualifications as specified under Section 141(3) and proviso to Section 148(3) read with Section 141(4) of the Act.

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 Mr. Parameshwar G. Bhat, Company Secretary in practice (FCS: 8860, CP: 11004) to undertake the Secretarial Audit of the Company for FY 24-25. The Report of the Secretarial Audit Report is annexed herewith as "Annexure I", which forms part of this report. The Company had undertaken an audit for FY 24-25 for all applicable compliances as per SEBI Regulations and Circulars/Guidelines issued thereunder. The Annual Secretarial Compliance Report has been submitted to the stock exchanges within 60 days of the end of the financial year.

During the year under review, there were no qualifications, reservations or adverse remarks made by the Statutory Auditors / Secretarial Auditor in their respective Reports.

During FY 24-25, the Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

Pursuant to the provisions of Section 134(3)(a) and Section 92(3) of the Act read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the draft of the Annual Return in Form MGT 7 of the Company for the financial year ended March 31, 2025 is uploaded on the website of the Company and can be accessed at https:// www.3mindia.in/3M/en_IN/company-in/about-3m/ financial-facts-local/.

The Company has a Prevention of Sexual Harrasment Policy in line with the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Policy is available on the website of the Company https://www.3mindia. in/3M/en_IN/ company-in/about-3m/financial-facts-local/. Internal Complaints Committees (ICC) have been set up to redress complaints received regarding sexual harassment.

1. Number of complaints of sexual harassment received During FY 24-25: 3

2. Number of complaints disposed off during FY 24-25: 2

3. Number of cases pending at the end of the financial year: 1 (90 days enquiry period spilled into April 2025)

4. Number of workshops or awareness programmes carried out: 7

5. Remedial measures taken by the Company:

• A mandatory interactive virtual training session was conducted for employees on "Sexual Harassment at the Workplace". This session reinforced the understanding of what constitutes sexual harassment, complaint process and behavioral do's and don'ts at the workplace.

• Location specific trainings were imparted to the plant employees in vernacular languages to reinforce their understanding of POSH Act and the rights and responsibilities of employees pertaining to the Act.

In-depth capacity building training was conducted for all Internal Committee member Train the Trainer session was conducted for all Internal Committee members. This session equipped participants with the knowledge & resources to conduct general awareness sessions at their respective locations.

During FY 24-25, the Company undertook many initiatives to increase organisational capability and productivity to be value driven and future ready. As on March 31, 2025, the Company had an employee strength of 1,213 personnel.

During the financial year under review, the Company: 1. has not bought its own Shares nor has it given any loan to the employees (including KMPs) of the Company for purchase of the Company's Shares.

2. has not issued any Shares to trustees for the benefit of employees.

3. there was no revision in the Financial Statements.

3M is committed to the safety, health, and well-being of its employees. The Company continuously evaluates opportunities to raise safety and health standards, training site leaders and conducting site visits to identify and manage environmental health and safety risks; evaluating compliance with regulatory requirements and 3M policy; and maintaining a global security operation for the protection of facilities and people on 3M sites.

The Company has three (3) manufacturing plants operating in India. All three plants have Environmental Management Systems (EMS) certified to the ISO 14001: 2015 environmental management systems standard and ISO 45001:2018 for Occupational Health and Safety Management System. We continue to be guided by our global Responsible Operations framework, which provides consistency and structure for implementing programmes and helps us be proactive to mitigate risks.

1. Journey to Zero

In 2024, 3M launched a safety campaign focusing on advancement of our safety culture. As one part of the campaign, we set reduction goals for injury, fire, and spill incidents. The Journey to Zero campaign challenges all 3M employees to do their part to help achieve those goals.

Core Safety programmes to ensure the Journey to Zero are driven through Priority initiatives for with special focus on Machine Guarding, Electrical Safety, Powered industrial vehicles, fire protection and prevention, Lock out and Tag out, Work at heights, Hearing protection, ergonomics etc., We strongly believe:

• The behavior of every individual defines the culture of the organisation.

All accidents and injuries are preventable.

• Everyone in the organisation is accountable for their safety performance.

Some Safety initiatives in 2024 to promulgate Safety in workplaces were as follows:

a. Investments to improve EHS infrastructure : Multiple campaigns brought focus to areas where hazards and incidents are most frequent. These campaigns focused on increased hazard identification and reduction and stronger awareness in several key topics such as Hand cut Safety, Slips Trips, Falls, Forklift safety, Fire Protection etc. Investments wereimproved infrastructure and provided resources to drive the right behavior and actions on the shop floor.

b. EHS See & Act and Field Verification of Critical Controls (FVCC):

3M's EHS Culture excellence programme "See and Act" which follows the concept of FVCC Field verification of critical controls, helped to continue build strong EHS Culture throughout 2024. The focus is not just the identification of Unsafe Acts and Conditions but to understand the root cause of their occurrence.

FVCCs allow us to intentionally build systems around workers that verifies the presence of controls and absorbs normal worker drift, allowing our people to "fail safely."

We use FVCC to ask better questions to the workforce, to better understand the risk and ensure we have proper controls in place to protect our people.

EHS Commitments are a simple way to describe 3M's key environment, health, and safety expectations based on 3M's Code of Conduct, Policies, and Standards. There is a shared responsibility for EHS and to keep each other safe. Worker safety, health, and wellbeing are important to 3M, and the Safety Always campaign was implemented across all facilities. Safety is each worker's responsibility. Since the launch of Safety Always we have seen a reduction in Slip-trip and fall. The Company strives to continuously improve performance and foster a safety culture that engages the entire workforce to help prevent incidents, injuries, and occupational illnesses.

A new Environment, Health and Safety Policy was developed and shared across the company. This policy further integrates the company's intent towards safety, health & environmental aspects to not only internal operations but also among the wider communities within which the company operates.

The Company's facility in Electronic City, Bengaluru had received State Level Recognition from Department of Factories, Boilers, Industrial Safety and Health, Government of Karnataka.

The Bengaluru facility hosted a Seminar organised by the Department as part of Disaster Prevention Day which was attended by industries from different parts of the state as well as expert speakers from academia & industry. The Company was also invited to share our views on Personal Protective Equipment to all the industry leaders at this event.

2. RESPONSIBLE OPERATIONS DRIVING EHS CULTURE ACTIVATION

Driving Responsible operations was implemented globally in 2023 and continued into 2024, to reduce injuries and incidents and drive right behaviors to set EHS performance to world class levels. The path of EHS excellence through Responsible Operations was attained by drawing up an EHS Facility Plan focusing on three key areas, a. Leadership Behavior & Accountability b. Standards & Systems c. Employee Training & Engagement The Company is committed to managing risks responsibly and has refined its management system by focusing on Leadership, Behavior and Accountability as the cornerstones to drive Responsible operations.

3. EHS MANAGEMENT STANDARDS AND SYSTEMS

The 3M Environment, Health, and Safety Management Standard (EHS-MS) provides the basis to address EHS risks and compliance obligations applicable to all workers within 3M operations. Workers at all 3M locations understand, manage, and mitigate their EHS risks and comply with all applicable 3M and local government requirements. All 3M manufacturing, Research & Development, and other locations maintain EHS self- assessment records of the elements that apply to their respective operations and workers. Technology is important in achieving excellence and EHS is no exception to this. Some of the Systems and tools to enable EHS management programme implementation are:

CAMMS: A portal which is customised to 3M requirements to track and monitor applicable EHS compliance and legal obligations.

EHS 360: Used for documenting, reporting, investigating and action item tracking related to workplace incidents, potential hazards or near miss events.

EHS Global Audits: All our three manufacturing plants have successfully completed 3M's EHS Global Audits based on the complexity of the site, without any primary audit finding.

Guarding and Prioritization (GAP): The Guarding Assessment and Prioritization (GAP) tool was implemented at all the Company Sites. This provides a systematic method for assessing risk to workers from machine hazards. All the Company Facilities implemented GAP tool to analyze the risk posed from machine operations.

Management of Change (MOC): Revised MOC was implemented at the Company Sites which went online to track all the changes made at facilities, processes, materials, equipment, procedures and/or utility. This helps to ensure changes do not inadvertently introduce new hazards or unknowingly increase the risk of existing hazards.

To mitigate Environmental Risk the following systems are utilised in the Company:

Environmental Inventory Toolkit: EIT is a set of tools and templates to maintain a consistent inventory of foundational manufacturing process and equipment information, specifically Process Flow Diagrams (PFD) and Equipment Inventory (EI) to enable various EHS related programmes.

Pollution Prevention Pays (3P): The Pollution Prevention Pays (3P) Programme began in 3M, USA in 1975 with the goal of eliminating or reducing sources of pollution in 3M products and processes. The programme has been recognised the world over for its innovation in environmental management by focusing on pollution prevention, rather than pollution control.

4. ENVIRONMENT

The Company follows the Environmental Management programme framework which comprises 18 elements mainly focusing on Air Quality, Water Quality, Land Management, Waste management. All these are tracked through an Environmental target database.

The purpose is to identify the requirements necessary to minimise the impact to air quality/ atmosphere by having right programmes with sufficient resources in place. The following are some of the programmes for Air quality at the Company's sites:

• Air Emission Control Operation and Maintenance

Air Emission Reduction Programme (AERP)

• Greenhouse Gas Management

Refrigerant Management

Thermal Oxidiser Optimisation

The Company embraces commitment to water conservation for our operations, following a Global Water Stewardship Standard. 3M operations worldwide manage their water resources through compliance with regulatory requirements, conservation, and reuse, reporting water usage internally as well complying with the local laws. Our Water framework focuses on the following:

Water Management Standard (WMS)

• Stormwater Management

Wastewater Emission Control Operation and

Maintenance

Wastewater Management

Ensuring operations do not impact the land, and in order to prevent possible contamination 3M has deployed the following programmes across the globe. Aqueous Film Forming Foam (AFFF) management.

• Asbestos management

• Sewer management

• Spill and release prevention

• Underground and Aboveground Storage

Tanks

The Company practices waste minimisation whenever practical to reduce the volume and hazards of waste materials generated. All 3M locations are required to manage all returned, recycled, and waste materials from the time of generation until reused, recycled, treated, or disposed. The programme includes all the Onsite Waste Management & Offsite Waste Management Processes including but not restricted to Activities, Processes Products & Services. The Waste management programme encompasses the following:

Waste collection, Storage, Disposal,

Waste Identification, Characterisation and Documentation

Identification of applicable regulations and requirements & ensuring compliance

Compliance with 3M Environment policies, standards, guidelines and procedures

Proper handling, labelling, and storage of wastes

Preparation of waste transportation documents, necessary approvals and Record keeping

• Training programmes

Audit and Approval of Waste Management Companies

• Ensuring Contracts and Agreements for waste disposal are in place for FY 24-25 Environmental Waste management initiatives are as follows:

Installation of Retrofit Emission Control Devices for all Diesel generators suppor ting the manufacturing operations at Pune, Ahmedabad and Bengaluru much ahead of the regulatory enforcement.

Replacement of the old Diesel Generator with a brand-new DG in Bengaluru.

Reduction of waste in operations through design yield improvement and packaging material reductions at sites.

Water Management improvements to maintain Net Water Balance to achieve "Zero Liquid Discharge (ZLD) facility.

Use of MEE (Multiple Effect Evaporator, MEE) with capacity 10 CMD installed for RO rejects with recycling option.

The Company has placed a competent industrial hygienist at each site, to work in close collaboration with 3M corporate teams to prioritise monitoring health-related issues at individual sites.

Critical evaluation of various hazards ranging from chemical exposure to physical hazards like noise, heat, illumination and ergonomic standards.

Proactive preventive approach of 3M teams at regional facilities have enabled mechanisation of certain activities and improvements in ventilation systems.

All three sites conducted Heat Stress assessments in the peak summer period and identified additional improvements needed. These are being followed with long-term and short-term actions with management support.

5. ERGONOMICS

3M's Ergonomics Risk Reduction Process is a comprehensive global programme that identifies and assesses ergonomic risk in industrial and office workspaces. The successful application of ergonomics promotes worker health and well-being, improves quality and increases production, by providing employees with appropriate tools, workstations, and working environments.

3M requires that all manufacturing sites complete an ergonomic footprint assessment and establish yearly reduction targets. All 3 sites in India have completed ergonomics risk reduction projects to meet corporate requirements.

6. HEALTH AND WELLNESS EFFORTS

3M believes in the philosophy that "your health matters as much as your work". In 2024 there were several initiatives that promoted health & wellness of employees at the factories including an elaborate

Medical Surveillance Programme. This included:-

Vision tests were conducted at all sites.

Audiogram was conducted at Ranjangaon site,. in a calibrated audiometric booth for external noise cancellation.

Skin evaluation, Complete Eye test and Chest X-ray are done to rule out Tuberculosis as a part of Pre- Employment Medical Check Up at Ranjangaon site, for new hires to Microbiology Lab.

A medical checkup is done for Food Handlers at all sites.

A health checkup of the Emergency Response

Team members is conducted at Bengaluru site and employee cab drivers are provided with Vision and hearing checkups.

The Company was ranked 46th among India's top 250 listed companies for outstanding ESG performance, as assessed through BRSR disclosures by BW Businessworld.

The Company's Automotive & Aerospace Solutions Division received the "Special Recognition" and "Innovation Recognition" from its customers for our strong support and all-round contributions across operational and service aspects.

The Company's manufacturing site at Electronics City, Bengaluru received the prestigious award for "zero-defect deliveries in 2023 24". This highlights our operational rigour.

The Company's manufacturing site at Electronics City, Bengaluru was awarded by Government of Karnataka under Large Industry Category for maintaining high standards in workplace safety and compliance. This state-level recognition is the highest honor bestowed on manufacturing workers for their focus on safety at the workplace.

• The Company received appreciation for conducting impactful training sessions on best practices for cable accessories installation from its customers.

3M Company, USA i.e., the Company's Holding Company, was awarded the Health & Safety Award at the 2024 Global Excellence Assembly (GEA) Awards. This award highlights 3M's extensive contributions to health and safety products and solutions, especially during the COVID-19 pandemic.

• 3M Company was recognised as a finalist in the Science and Technology category of Fast Company's 2024 World Changing Ideas Awards for Sorbent-on-a-roll (SOAR) for direct air capture, a materials science-based climate tech solution developed in partnership with Sante.

Over the year, the Company employees received internal accolades for excellence in sales, marketing, technical and support functions, winning recognition from 3M Company, as well as Business and Area level awards.

Your Directors thank and acknowledge with gratitude the co-operation, assistance and support received from the Central Government, State Governments of Karnataka, Maharashtra and Gujarat, Bankers, Shareholders, Dealers, Vendors, Promoters of the Company and all other Stakeholders.

The Directors also wish to place on record their sincere appreciation and gratitude towards the contribution made by every employee.