Sagardeep Alloys Ltd Directors Report

Dear Members,

Your Directors take pleasure in presenting the 16th Annual Report along with Audited Financial Statements of your Company for the financial year ended 31st March, 2023.

1. Financial highlights

The financial highlights for the year 2022-23 are as under:

Standalone (in lakhs)

Particulars for the year ended	March 31, 2023	March 31, 2022
Net revenue from Operations (Sales)	8707.84	9067.84
Profit Before Depreciation and Tax	146.37	153.14
Less: Depreciation	71.51	77.06
Profit Before Tax	74.86	76.08
Less: Tax Expense	21.30	28.90
Profit After Tax	53.56	47.18
EPS (Basic)	0.31	0.28
EPS (Diluted)	0.31	0.28

Consolidated (in Lakhs)

Particulars for the year ended	March 31, 2023	March 31, 2022
Net revenue from Operations (Sales)	8707.84	9067.84
Profit Before Depreciation and Tax	150.46	160.35
Less: Depreciation	73.14	78.98
Profit Before Tax	77.32	81.38
Less: Tax Expense	22.33	35.13
Profit After Tax	54.99	46.23
EPS (Basic)	0.32	0.27
EPS (Diluted)	0.32	0.27

2. STATE OF COMPANY AFFAIRS:

During the year under review, your Company has achieved a total net sale of Rs.8707.84 lakhs and Net Profit after Tax (NP) of Rs. 53.56lakhs. There is decrease in sales but the profit after tax of the company has been increased during the current year in comparison to that of previous year. However, your directors are optimistic about the performance of the Company in the coming years.

3. Dividend

Your Director feel that it is prudent to plough back the profits of the Company for future growth of the Company and therefore do not recommend any dividend for the year ended March 31st, 2023.

4. Transfer of Unclaimed Dividend to Investor Education and Protection Fund

Since there was no unpaid/unclaimed dividend, the provision of Section 125 of the Companies Act, 2013 do not apply.

5. Change in the nature of business, if any-

There is no change in the nature of business carried out by the Company in the Year 2022-2023. Further, in the year 2022-23, the management of the Company discontinued the Commercial Production of copper sulphate owing to less margin and low demand of the said products. It is further to be noted that all required approval from the Gujarat Pollution Control Board (GPCBJ) are taken by the Owner of the Land and requisite approvals from GPCB are issued for the factory premises and is not in the name of the Company. The Company has cancelled the lease Agreement for the factory premises situated at Plot No. 3529, Phase - IV, G.I.D.C, Chhatral, Tal: Kalol, Dist: Gandhinagar, Gujarat to establish the manufacturing facility of copper sulphate and necessary process of cancellation and/or alteration of GPCB approval will be carried out by the land owner of the said premises. Further, the Company has initiated the process to sell the acquired. plant and machinery for this product.

6. Reserves

The Board of Directors has decided to retain the entire amount of profit in the profit and loss account. Accordingly, the Company has not transferred any amount to the Reserves for the year ended March 31,2023.

7. Subsidiary, Joint Ventures and Associate Companies

The Company has one wholly owned Indian Material Subsidiary company i.e. Sagardeep Engineers Private Limited. A statement containing the salient features of financial statement of our subsidiary in the prescribed format AOC-1 is appended to the financial statements of the Company.

8. Consolidated Financial Statement

The Financial Statement of the Company for the Financial year 2022-23 are prepared in compliance with the applicable provisions of the Act, Accounting Standards and as prescribed by Securities and Exchange Board of India (SEBI) under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Consolidated Financial Statement has been prepared on the basis of the audited financial statement of the Company as approved by their respective Board of Directors. Pursuant to the provisions of Section 136 of the Act, the Financial Statements of the Company, the Consolidated Financial Statements along with all relevant documents and Auditors report thereon form part of this Annual Report.

9. Public Deposit

The Company has not accepted or renewed any amount falling within the purview of provisions of Section 73 of the Companies Act, 2013 ("the Act") read with the Companies (Acceptance of Deposit) Rules, 2014 during the period under review. Hence, the requirement for furnishing the details of deposits which are not in compliance with Chapter V of the Act is not applicable.

10. Particulars of loan, Guarantees or Investment made under Section 186

During the year, the Company has not given any guarantee or provided security in connection with the loan to any other body corporate or person or made any investments falling under the purview of provisions of section 186 of the Companies Act, 2013.

11. Extract of the annual return

Pursuant to Section 92(3) read with section 134(3)(a) of the Companies Act, 2013, copies of the Annual Returns of the Company prepared in accordance with Section 92(1) of the Act read with Rule 11 of the Companies (Management and Administration) Rules, 2014 are placed on the website of the Companywww.sdalloys.com

12. Directors& Key Management Personnel

I. Composition of Board& Board Meetings

The Board of Directors of the Company has an optimum combination of Executive, Non-Executive and Independent Directors. As on the date of this report, the Board comprises of 6(Six) Directors, out of which 2 are Executive Directors, 1 is Non-executive Director and 3 are Non-Executive Independent Directors that includes one Woman Director. The Chairman of the Board is an executive Director.

The Board of Directors duly met 7 (Seven) times on 01/04/2022, 24/05/2022, 30/06/2022, 10/08/2022, 30/09/2022, 11/11/2022 and 02/02/2023 during the year. The Composition, category and attendance of each Director at the Board and Annual General Meeting of each Director in various companies is as follows: -

Name of Director, Designation and Category	No of Board Meetings held during the year	No of Board Meetings attended during the year	Attendance at the AGM
Mr. Satishkumar A Mehta Chairman & Managing Director Promoter	7	7	Yes
Mr. Jayeshkumar A Mehta Whole Time Director Promoter	7	7	Yes
Mr. Hemendra B Patel * Non-Executive Director Independent	7	5	Yes
Mrs. Vinita P Maheshwari Non-Executive Director Independent	7	6	Yes
Mr. Jitendra D PatelA Non-Executive Director Independent	7	1	No
Mr. Parimal Patwa ** Non-Executive Director NonIndependent	7	7	Yes
Mr. Manan Gajjar# Non-Executive Director Independent	7	4	Yes
Mr. Amit R. Pachori ## Non-Executive Director Independent	0	0	No

AMr. Jitendra D Patel Non-Executive Director

Independent ceased to be director from 22/05/2022

#Mr. Manan Gajjar has appointed as an additional Independent director w.e.f 30.06.2022.

## Mr. Amit R. Pachori has appointed as an Additional Director under Independent category w.e.f 23.08.2023

• Mr. Hemendra B Patel has been redesignated as NonExecutive Non-Independent director effective from 23.08.2023

** Mr. Parimal Patwa has been resigned as Non-Executive Non-Independent Director effective from 23.08.2023

II. INDUCTIONS

The following appointments were made

During the year, Ms. Ami Doshi was appointed as Company Secretary and Compliance Officer w.e.f April 01,2022 and she resigned from the post of Company Secretary and Compliance Officer w.e.f. September 30,2022 thereafter on the recommendation of Nomination and Remuneration Committee, the Board has appointed Ms. Anuja Jain as a Company Secretary & Compliance Officer of the Company w.e.f November 11,2022.

During the year, Mr. Jayeshkumar A. Mehta was appointed as Chief financial Officer of the company w.e.f. September 30, 2022 to fill the casual vacancy caused due to resignation of Mr. Vismay Shah as CFO w.e.f.30/09/2022

Mr. Manan Gajjar has been appointed as an additional director under independent category w.e.f 30/06/2022 and his appointment was regularized by shareholders of the Company at 15th Annual General Meeting held on 22nd September, 2022.

After the end of Financial Year 2022-23

• Mr. Amit R. Pachori has been appointed as an Additional director under independent category w.e.f 23/08/2023 subject to approval of shareholders in the ensuing Annual General Meeting and

• Mr. Hemendra B Patel has been redesignated as Non-Executive Non-Independent Director from NonExecutive Independent director subject to approval of shareholders in the ensuing Annual General Meeting.

III. REAPPOINTMENT:

There were no re-appointment of any Director / KMP During the year.

IV. CESSATIONS:

During the year, the following directors/ key managerial personnel resigned from their office:

Mr. Jitendra D Patel as Non-executive Independent Director of the company effective from 22/05/2022. Tenure of Mr. Jitendrakumar Dhanjibhai Patel, as an Independent Director of the Company was completed on 22ndFebruary, 2022. The Board in their meeting held on 09thFebruary, 2022 decided and re-appointed him as Independent Director for second consecutive term of 5 years effective from 22rd February, 2022, subject to shareholders approval. In terms of Regulation 17(1)(c) of SEBI LODR Regulations,2015 the Company should obtain the shareholders approval for reappointment of Independent Director in the next general meeting or within 3 months from the date of appointment, whichever is earlier and therefore the re-appointment of Mr. Jitendrakumar Dhanjibhai Patel as Independent Director should have been confirmed by the shareholders of the Company on or before 22nd May, 2022 and as the Company failed to call the shareholders meeting for such reappointment within the stipulated time period as provided under Regulation 17(1)(c) of SEBI LODR Regulations ,2015 , the re-appointment of Mr.Jitendra kumar Dhanjibhai Patel as Independent Director ceases w.e.f. 22nd May, 2022 and his cessation has been considered as retirement from the board.

• Ms. Ami Joshi resigned as a company secretary and compliance officer of the company effective from September 30, 2022.

• Mr. Vismay Shah resigned as Chief Financial officer of the company effective from 30/09/2022.

After the end of Financial Year 2022-23

• Mr. Suryakant Parimal Patwa has been resigned from the office of Non Executive Non independent director of the company effective from 23.08.2023

V. Retirement by Rotation

I n accordance with the provisions of the Companies Act 2013 and Companies Articles of Association, Mr. Jayesh A Mehta (DIN: 02156140) retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment. The Board recommends his reappointment. Necessary resolution for his re-appointment is placed before the shareholder for approval.

VI. Familiarizations Programme of Independent Directors

Pursuant to the requirements of the Listing Regulations, all the Independent Directors are familiarised with the operations and functioning of the Company at the time of their appointment and further the Company has put in place framework for a structured induction and familiarisation programmes for all its Directors, including the Independent Directors on an ongoing basis to familiarise them with the business and operations of the

Company, new initiatives, regulatory updates, nature of the industry in which the Company operates, their roles, rights, duties and responsibilities vis-a-vis the Company, etc .

The Independent Directors have been updated with their roles, rights and responsibilities in the Company by specifying them in their appointment letter along with necessary documents, reports and internal policies to enable them to familiarize with the Companys procedures and practices. The Independent Directors regularly visit at factory and management update the IDs relating to the manufacturing process at factory. The Company endeavors, through presentations at regular intervals, to familiarize the Independent Directors with the strategy, operations and functioning of the Company and also with changes in the regulatory environment having a significant impact on the operations of the Company and the industry as a whole The Independent Directors also meet with senior management team of the Company in informal gatherings.

VII. Profile of Directors seeking appointment / reappointment

As required under regulation 36(3) of SEBI (LODR), 2015, particulars of the Directors retiring and seeking reappointment at the ensuing Annual General Meeting is annexed to the notice convening 16th Annual General Meeting.

VIII. Key Managerial Personnel

As on the date of this report, the following persons are the Key Managerial Personnel(s) of the Company:

a) Mr. Satishkumar A. Mehta, Chairman & Managing Director

b) Mr. Jayeshkumar A. Mehta, Whole Time Director and Chief Financial Officer

c) Ms. Anuja Jain, Company Secretary & Complaince Officer

IX. Declaration from Independent Director

All the Independent Directors of the Company have given their declarations stating that they meet the criteria of independence as prescribed under the Section 149(6) of the Companies Act, 2013 read with the rules made there under and in the opinion of the Board, the Independent Directors meet the said criteria.

During the year under review the Independent Directors duly met pursuant to the provisions as specified in Schedule IV of the Companies Act, 2013 and the quorum was present throughout the meeting.

13. Audit Committee

The Audit Committee is duly constituted in accordance with SEBI (LODR) Regulations 2015 and Section 177 of the Companies Act, 2013 read with Rule 6 of the Companies (Meetings of the Board and its Powers) Rules, 2014 as amended from time to time. It adheres to the terms of reference which is prepared in compliance with Section 177 of the Companies Act, 2013, and SEBI (LODR) Regulations 2015. The present committee has been reconstituted on 30/06/2022. The Members of the Committee are: -

Name Category & Position	Number of meetings held	Number of meetings attended
Mr. Manan Gajjar A Non-Executive Independent Director Chairman	5	3
Mrs. Vinita Maheshwari Non-Executive Independent Director Member	5	4
Mr. Satish Kumar A Mehta Executive Director Member	5	5
Mr. Jitendrakumar Patel# Non-Executive Independent Director Chairman	5	0

# ceased to be chairman of the committee w.e.f 22/05/2022 inducted as chairman of the committee w.e.f. 30/06/2022

Two third of the members are Independent Directors and all the members are financially literate. The composition, role, functions and powers of the Audit Committee are in line with the requirements of applicable laws and regulations. The Audit Committee shall oversee financial reporting process and disclosures, review financial statements, internal audit reports, related party transactions, financial and risk management policies, auditors qualifications, compliance with Accounting Standards etc. and oversee compliance with Stock Exchanges and legal requirements concerning financial statements and fixation of audit fee as well as payment for other services etc.

Five (5) Audit Committee meetings were held during the year 2022-23 at the Registered Office of the Company on 24/05/2022, 30/06/2022, 10/08/2022, 11/11/2022 and 02/02/2023.

14. Nomination and Remuneration Committee

The Nomination and Remuneration Committee is constituted in accordance with SEBI (LODR) Regulations 2015 and Section 178 of the Companies Act, 2013 read with Rule 6 of the Companies (Meetings of the Board and its Powers) Rules, 2014 as amended from time to time. The Company Secretary acts as the Secretary to the committee. Further the present committee has been reconstituted on 30thJune 2022and the Committee Members are:

Name Category & Position	Number of meetings held	Number of meetings attended
Mr. Manan GajjarA Non-Executive Independent Director Chairman	5	4
Mrs. Vinita Maheshwari Non-Executive Independent Director Member	5	5
Mr. Hemendra B Patel Non-Executive Independent Director Member	5	4
Mr. Jitendrakumar Patel# Non-Executive Independent Director Chairman	5	0

# ceased to be chairman of the committee w.e.f 22/05/2022

inducted as chairman of the committee w.e.f. 30/06/2022

The Board has in accordance with the provisions of sub-section (3) of Section 178 of the Companies Act, 2013, formulated the policy setting out the criteria for determining qualifications, positive attributes, independence of a Director and policy relating to remuneration of Directors, Key Managerial Personnel and other employees. The said policy is available on the website of the Company (www.sdalloys.com).

Five (5) meetings was held during the year 2022-23 on 24/05/2022, 30/06/2022, 30/09/2022, 11/11/2022 and 02/02/2023.

15. Stakeholders Relationship Committee

The Stakeholders Relationship Committee is constituted in compliance with the requirements of Section 178 of the Companies Act, 2013. Company Secretary is the Compliance Officer, who acts as the Secretary to the Committee and the Members of the Committee are:

Name Category & Position	Number of meetings held	Number of meetings attended
Mrs. Vinita P Maheshwari Non-Executive Independent Director Chairman	1	1
Mr. Hemendrabhai Patel Non-Executive Independent Director Member	1	1
Mr. Satishkumar A Mehta Managing Director Member	1	1

The Stakeholders Relationship Committee looks into shareholders complaints related to transfer of shares, non

receipts of balance sheet besides complaints from SEBI, Stock Exchanges, Court and various Investor Forums. It oversees the performance of the Registrars and Transfer Agent, and recommends measures for overall improvement in the quality of investor services. The Company is in compliance with the SCORES, which has initiated by SEBI for processing the investor complaints in a centralized web-based redress system and online redressal of all the shareholders complaints.

One meeting was held during the year 2022-23 at the Registered Office of the Company on 24/05/2022.

16. Compliance Officer

As on date of this report, the Compliance officer of the Company is Ms. Anuja Jain who is also designated as Company Secretary of the Company.

17. Statement On Formal Annual Evaluation Of Board

Nomination and Remuneration Committee annually evaluates the performance of individual Directors, Committees, and of the Board as a whole in accordance with the formal system adopted by it. Further, the Board also regularly in their meetings held for various purposes evaluates the performance of all the Directors, committees and the Board as a whole. The Board considers the recommendation made by Nomination and Remuneration Committee in regard to the evaluation of board members and also tries to discharge its duties more effectively. Each Board members contribution, their participation was evaluated and the domain knowledge they bring. They also evaluated the manner in which the information flows between the Board and the Management and the manner in which the board papers and other documents are prepared and furnished. The Independent Directors at their separate meeting held on 02/02/2023 reviewed the performance of: Non-Independent Directors and the Board as a whole, Chairman of the Company after taking into account the views of Executive Directors and Non-Executive Directors. The directors also discussed the quality, quantity and timeliness of flow of information between the Company management and the Board that is necessary for the Board to effectively and reasonably perform the duties.

The details of evaluation process of the Board, its Committees and of individual Directors, including Independent Directors have been provided under the Corporate Governance Report which forms part of this Report.

18. Declaration regarding opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year

The board hereby states that the independent directors appointed during the year possess requisite expertise and experience (including the proficiency) in terms of section 150 of the Act. The Independent Directors appointed during the year have included their names in the data bank of Independent Directors maintained with the Indian Institute of Corporate Affairs in terms of Section 150 of the Act read with Rule 6 of the Companies (Appointment & Qualification of Directors) Rules, 2014.

19. Material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statements relate and the date of the report

There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company and the date or report.

20. Details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and companys operations in future

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concerns status and Companys operations in future.

21. Auditors

1. Statutory Auditors

Your Company at its at the 14thAnnual General Meeting appointed M/s. Piyush J Shah & Co., Chartered Accountants as Statutory Auditors of the Company for a period of 5 consecutive years i.e., from the Fourteenth Annual General Meeting till Nineteenth Annual General Meeting at a remuneration as may be fixed by the Board of Directors and Audit Committee in consultation with the Auditors thereof.

In accordance with the Companies Amendment Act, 2017, enforced on 7th May, 2018 by the Ministry of Corporate Affairs, the appointment of Statutory Auditors is not required to be ratified at every Annual General Meeting.

There are no qualifications, reservations or adverse remarks made by M/s. Piyush J Shah & Co., Chartered Accountants, the Statutory Auditors of the Company, in their report.

The Statutory Auditors have not reported any instance of fraud committed in the Company by its Officers or Employees to the Audit Committee under section 143(12) of the Companies Act,2013, details of which needs to be mentioned in this Report.

2. Secretarial Auditor

M/s. Khandelwal Devesh & Associates, Company Secretaries, Ahmedabad were appointed as Secretarial Auditor of the Company to conduct secretarial audit pursuant to the provisions of Section 204 of the Companies Act, 2013. The secretarial audit of the Company has been conducted on a concurrent basis in respect of the matters as set out in the said rules and Secretarial Audit Report given by M/s. Khandelwal Devesh & Associates, Company Secretaries, Secretarial Auditor of the Company forms part of this report and is marked as Annexure-II.

The said report contains the following observations :

1) The Company failed to comply with the provisions of Regulation 3(5) and 3(6) of SEBI (PIT) Regulations, 2015 related to Structured Digital Database (SDD). The Company had maintained all the entries as per the prescribed regulations into Excel format and hence is tamperable in nature. and in response of that the management clarified that initially the entries were maintained into Excel Format and to maintain its non-tamperable nature, we strictly implemented the Password of File. Further, the Company has installed SDD software which is non- tamperable.

Annual Secretarial Compliance Report

During the period under review, the Company has complied with the applicable Secretarial Standards notified by the Institute of Company Secretaries of India. The Company has also undertaken an audit for the FY 2022- 23 pursuant to SEBI Circular No. CIR/CFD/CMO/I/27/2019 dated February 08, 2019 for all applicable compliances as per the Securities and Exchange Board of India Regulations and Circular/ Guidelines issued thereunder. The Report (Annual Secretarial Compliance Report) has been submitted to the Stock Exchanges on May 30, 2023 which is within 60 days of the end of the financial year ended March 31,2023. The said report is annexed as Annexure-III.

Secretarial Audit of Material Unlisted Indian Subsidiary Further as per the provisions of Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, M/s. Khandelwal Devesh & Associates, Company Secretaries, had undertaken secretarial audit of the Companys material subsidiary i.e., Sagardeep Engineers Private Limited for the FY2022-23. The Audit Report confirms that the material subsidiary has complied with the provisions of the Act, Rules, Regulations and Guidelines and that there were no deviations or non-compliances.

The Board, at its meeting held on July 13, 2021, has reappointed M/s. Khandelwal Devesh &Associates, Company Secretaries, as Secretarial Auditor, for conducting Secretarial Audit of the Company for FY 2021-22 and 202223. The said report is annexed as Annexure-IV.

3. Cost Auditor

The provision of the section 148 of the Companies act, 2013 read with Rules 14 of the Companies (Audit & Auditors) rules, 2014 is not applicable to the company.

4. Internal Auditor

M/s Amit Uttamchandani & Associates, Chartered Accountant have been appointed as an Internal Auditor of the Company.

22. Personnel

The information required under Section 197 of the Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in the Report and marked as Annexure-V. No employee of the Company was in receipt of the remuneration exceeding the limits prescribed in the rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

In the meeting held on 23.08.2023 the board of directors of the company recommended to increase the Managerial Remuneration of Managing Directors and Whole time Director of the company with effect from 01.09.2023

23. Corporate Social Responsibility (CSR)

The provisions of Corporate Social Responsibility (CSR) are not applicable to the Company.

24. Conservation of energy, technology absorption and foreign exchange earnings and outgo

1. CONSERVATION OF ENERGY:

i. the steps taken or impact on conservation of energy: Nil

ii. the steps taken by the company for utilising alternate sources of energy: None

iii. the capital investment on energy conservation equipment: Nil

2. TECHNOLOGY ABSORPTION:

i. the efforts made towards technology absorption: None

ii. the benefits derived like product improvement, cost reduction, product development or import substitution: None

iii. in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)-

a) the details of technology imported :None

b) the year of import :N.A.

c) whether the technology been fully absorbed : N.A.

d) i f not fully absorbed, areas where absorption has not taken place, and the reasons thereof : N.A.

e) the expenditure incurred on Research and Development : Nil

3. Foreign exchange Earnings & Outgo

• Foreign Exchange Earning: NIL

• Foreign Exchange Outgo: NIL

24. Particulars of contracts or arrangements with related parties:

The Company has no material significant transactions with its related parties which may have potential conflict with the interest of the Company at large. All the related party transactions has been reviewed and approved by the Audit Committee & Board of Directors of the Company. Your Company has not entered into any transactions with related parties which could be considered material in terms of Section 188 of the Act. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Act, in Form AOC 2, is not applicable. The Policy on Related Party Transactions is available on your Companys website

25. Managements Discussion and Analysis Report

The Managements Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 (2) (e) of the Listing Regulations is given as Annexure-"VI" to this report.

26. Statement regarding the development and implementation of Risk Management Policy

The risk management process is followed by the company to ensure timely identification, categorization and prioritization of operational, financial and strategic business risks. Teams are authorized for managing such risks and updating it to the senior management. The Board and Audit Committee review on regular basis the risk assessment in the company.

27. Prevention of Sexual Harassment at Workplace

The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

All employees (permanent, contractual, temporary and trainees) are covered under this policy. The Company has also complied with the provisions related to constitution of Internal Complaints Committee (ICC) under the said Act to redress complaints received regarding sexual harassment. The Company received no complaints pertaining to sexual harassment during FY 2022-23.

28. Vigil Mechanism:

The Company believes in the conduct of its affairs in a fair and transparent manner to foster professionalism, honesty, integrity and ethical behavior in its employees & stakeholders. The Company has adopted a Whistle Blower Policy as a part of vigil mechanism.

Also, the Code of Business Conduct (Code) lays down important corporate ethical practices that shape the Companys value system and business functions and represents cherished values of the Company.

29. Adequacy of Internal Financial Control

The Company has designed and implemented a process driven framework for Internal Financial Controls (IFC) within the meaning of the explanation to Section 134(5)(e) of the Act. For the year ended March 31,2023, the Board is of the opinion that the Company has sound IFC commensurate with the nature and size of its business operations and operating effectively and no material weaknesses exist. The Company has a process in place to continuously monitor the same and identify gaps, if any, and implement new and / or improved controls wherever the effect of such gaps would have a material effect on the Companys operations.

During the year, no reportable material weakness was observed.

30. Directors Responsibility Statement

I n terms of Section 134 (5) of the Companies Act, 2013, the directors would like to state that:

(a) In the preparation of the annual accounts for the financial year ended March 31, 2023, the applicable accounting standards have been followed along with proper explanation relating to material departures.

(b) The directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period under review.

(c) The directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

(d) The directors have prepared the annual accounts on a going concern basis.

(e) The directors 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) The directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

31. Listing

The equity shares of the Company are listed on NSE and the Company has paid the annual listing fees for the year 2023-24.

32. Corporate Governance.

Your Company has complied with the requirements of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 regarding corporate governance. A report on the Companys Corporate Governance practices and the Auditors Certificate on compliance of mandatory requirements thereof are attached as Annexure VII.

33. Other Disclosures / Reporting

The Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions pertaining to these items during the year under review:

1. Details relating to deposits covered under Chapter V of the Companies Act, 2013.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except ESOPs referred to in this Report.

4. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

5. Voting rights which are not directly exercised by the employees in respect of shares for the subscription/ purchase of which loan was given by the Company (as there is no scheme pursuant to which such persons can beneficially hold shares as envisaged under section 67(3)

(c) of the Companies Act, 2013).

34. Application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016)

During the year no application has been made or no proceeding is pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).

35. Details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof.

There is no such onetime settlement during the period under review

36. Secretarial Standards:

The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Board Meetings and General Meetings.

37. Acknowledgement:

The Directors place on record their sincere thanks to the Bankers, business associates, consultants, customers, and employees for their continued support extended to your Companies activities during the year under review. Your Directors also acknowledges gratefully the shareholders for their support and confidence reposed on your Company.

	For and on behalf of board of directors
	Satishkumar A. Mehta
Date: 23/08/2023	Chairman & Managing Director
Place: Santej (Kalol)	(DIN: 01958984)