Chiraharit Ltd Directors Report

To,

The Members,

Chiraharit Limited

The Board of Directors of the Company have great pleasure in presenting the 19^th Directors Report of the Company together with Audited Financial Results for the year ended March 31, 2025. This report states compliance as per the requirements of the Companies Act, 2013 ("the Act"), the Secretarial Standards and other rules and regulations as applicable to the Company.

FINANCIAL PERFORMANCE:

The highlight of the financial performance of the Company for the year ended March 31,2025 is summarized as follows:

Particulars	Standalone		Consolidated
	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Revenue from Operations
- Sale of Products	3302.99	1591.66	4134.73	2285.81
Sale of Services	1836.61	770.45	1828.07	770.75
Total Revenue from Operations	5139.6	2362.11	5962.8	3056.56
Other Income	13.57	0.01	16.99	0.86
Total Income	5153.17	2362.12	5979.79	3057.42
Direct & other related Expenses	3631.55	1701.76	4235.67	2252.45
Employee Benefit Expenses	439.63	361.16	553.41	453.04
Finance Cost	91.36	58.62	125.19	91.67
Depreciation & Amortisation Expenses	14.41	15.11	30.47	30.67
Other Expenses	104.21	77.29	198.11	115.34
Total Expenditure	4281.16	2213.94	5142.85	2943.17
Profit / (Loss) before Tax	872.01	148.18	836.94	114.25
Less: Exceptional Items	0		0
Profit/(Loss) before Tax	872.01	148.18	836.94	114.25
Provision for Taxation (Net)	221.76	44.72	234.65	53.91
Profit / (Loss) after Tax	650.25	103.46	602.29	60.34
Other Comprehensive income for the financial year	0	0	0	0
Total Comprehensive income/{loss) for the financial year	650.25	103.46	602.29	60.34
Earnings per Equity Share (Rs.) - Face Value of 1/- each	1.63	4.14	1.51	2.41

STATE OF COMPANYS AFFAIRS AND OPERATIONS:

Business and Financial Performance Overview:

Business Overview

Our performance during FY 2024-25 demonstrated the strength of our integrated EPC business model, which focuses on three high-impact verticals:

• Water Infrastructure: including irrigation systems, solar panel cleaning solutions, and pipeline projects;

• Renewable Energy: with turnkey development of Compressed Bio-Gas (CBG) plants; and

• Civil Construction: encompassing industrial and residential execution.

Financial Performance Overview Standalone Financials:

The Company recorded a standalone revenue from operations of Rs.5139.60 lakhs in FY 2024- 25 as against Rs.2362.11 lakhs in FY 2023-24, reflecting a growth of around 118% over the previous year. The revenue more than doubled in both the segments of sale of products and sale of services. The increase was primarily driven by higher order execution reflecting the Companys ability to procure more orders and its execution.

The increase in other income is due to booking of income on liabilities written off.

The Company achieved a Profit Before Tax (PBT) of Rs.872.01 lakhs and Profit After Tax (PAT) of Rs.650.25 lakhs in FY 2024-25 as compared to Rs.148.18 lakhs and Rs.103.46 lakhs respectively in FY 2023-24, registering a substantialgrowth due to improved operational efficiency and higher contribution margins with increased revenue.

Consolidated Financials:

The Company recorded a consolidated revenue from operations of Rs.5962.80 lakhs in FY 2024- 25 as against Rs.3056.56 lakhs in FY 2023-24, reflecting a growth of around 95% over the previous year.

The Company achieved a Profit Before Tax (PBT) of Rs.836.94 lakhs and Profit After Tax (PAT) of Rs.602.29 lakhs in FY 2024-25 as compared to Rs.114.25 lakhs and Rs.60.34 lakhs respectively in FY 2023-24.

Operational results of the subsidiary company affected the performance in consolidated financials vis-a-vis standalone financials.

CHANGE IN CAPITAL STRUCTURE / SHARE CAPITAL:

The Authorized and Paid up Share Capital of the Company stands at Rs.25,00,000/- (25,00,000 shares with Face Value of Re.1/- each) as on 31^st March, 2024.

During the Financial Year 2024-25, the Company undertook significant corporate actions relating to its share capital, as under:

> To facilitate future capital expansion and the proposed bonus issue, Authorized Share Capital was increased from Rs.25,00,000 to Rs.6,00,00,000 (6,00,00,000 shares of Re.1/~ each). This increase was approved by the shareholders through a resolution passed at the Extra-Ordinary General Meeting held on 1^st August 2024.

> Following the enhancement of Authorized Share Capital, the Board of Directors, at its meeting held on 9^th October 2024, approved the issuance of 3,75,00,000fully paid-up equity shares of Re.1 each as bonus shares, in the ratio of 15:1 (fifteen equity shares for every one equity share held}. This capitalized an amount of Rs.3,75,00,000 from the Companys reserves.

The Authorized and Paid up Share Capital of the Company stands at Rs.6,00,00,000/- (6,00,00,000 shares with Face Value of Re.1/- each) and Rs.4,00,00,000/- (4,00,00,000 shares with Face Value of Re.1 /- each) as on 31^st March, 2025, respectively.

Dematerialization Status:

The Company has registered with NSDL and CDSL for dematerialization of shares. The entire shares are in dematerialized form.

RESERVES & SURPLUS:

As on 31^st March 2024, the reserves of the Company stood at Rs.381.15 lakhs. This amount pertains to Surplus in the statement of Profit & Loss Account and there are no other specified reserves. During the year under review, in line with the Boards resolution dated 9^th October 2024 and to reward the shareholders, the Company capitalized the said reserves and issued 3,75,00,000 fully paid-up bonus equity shares of Re.1 each to the existing shareholders in the ratio of 15:1 (i.e., fifteen new equity shares for every one equity share held). The reserves have increased to Rs.656.40 lakhs as on 31flMarch 2025 with addition of net profit earned during the

year under review.

TRANSFER TO RESERVES:

During the year under review, the Company has not transferred any amount to reserve & surplus pursuant to the provisions of Section 123 of the Companies Act, 2013. However, during the year under review, the profit of Rs. 650.25 Lakhs was transferred to the Reserve & Surplus.

DIVIDEND:

The Board of Directors, after careful evaluation of the Companys financial position, future growth prospects, and working capital requirements, have decided to retain the profits for the financial year 2024-25. This decision is aligned with the Companys strategic objectives of strengthening its financial position, investing in growth opportunities, and optimizing operational efficiency. The Board believes that reinvesting the profits will enable the Company to capitalize on emerging market trends and enhance long-term shareholder value by facilitating sustained growth, technological investment, and operational efficiency.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND:

No amounts were transferred to the Investor Education and Protection Fund (IEPF) during the financial year as there were no unclaimed dividends, shares, or other securities due for transfer under Section 125(2) of the Companies Act, 2013.

CHANGE IN THE NATURE OF BUSINESS:

There was no change in the Business of the Company during the financial year ended March 31,2025.

MATERIAL DEVELOPMENTS DURING THE CURRENT YEAR:

The Company has been converted into public limited company w.e.f. 02.12.2024 vide fresh certificate of incorporation issued by MCA.

The Company filed DRHP for iPO with BSE Listing Portal - SME Platform of BSE on 31.03.2025 and received in-principle approval by BSE on 09.07.2025 for the same.

MATERIAL CHANGES AND COMMITMENTS (AFTER 31 ST MARCH, 2025 AND UPTO THE DATE OF THE REPORT) AFFECTING THE FINANCIAL POSITION OF THE COMPANY:

There were no material changes or commitments affectingthe financial position of the Company between the end of the financial year (31^st March, 2025) and the date of this report.

SUBSIDIARY, JOINT VENTURE, AND ASSOCIATE COMPANIES:

Pursuant to the provisions of Section 129(3) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, a separate statement in Form AOC-1, containing the salient features of the financial performance of each of the subsidiary companies, is attached as Annexure -1 and forms part of this Report.

During the financial year under review, the Company does not have any joint venture or associate companies.

The following entities were the subsidiaries of Chiraharit Limited as on 31^st March 2025:

1. Malaxmi Polymers Private Limited

2. Vasavi Building Materials Private Limited

The Company has complied with all applicable requirements under the Companies Act, 2013 in relation to the management and reporting of its subsidiaries.

CONSOLIDATED FINANCIAL STATEMENTS:

in accordance with the provisions of the Companies Act, 2013 and applicable Accounting Standards, the consolidated financial statements of the Company and its subsidiaries for the financial year 2024-25 are attached and form part of the Annual Report.

MATTERS RELATED TO DIRECTORS AND KEY MANAGERIAL PERSONNEL:

Changes in Directors / KMP:

During the year, the following changes took place in the Board / Key Managerial Personnel:

In the Board Meeting held on 11^th December, 2024, the Company appointed Independent Directors viz., Mr. Venkata Chakrapani Chaturvedula (DIN: 10813796) and Mr. Anantha Krishna Nageshwara (DIN: 08455478) and Key Managerial Personnel viz., Mr. Gudla Rama Chandra Rao, Chief Financial Officer and Mr. Dixitula Venkata Kama Dixitulu, Company Secretary.

Composition of Board of Directors and Key Managerial Personnel (KMP) as on March 31, 2025:

SI. No. Name of Director	DIN	Designation	Appointment/ Resignation/ Change in Designation	Date of Appointment/ Cessation / Change in Designation
1. Mr. Pavan Kumar Bang	03614791	Managing Director & Chief Executive Officer	Change in designation	01/04/2024 (Originally appointed as Director on 20.08.2012)
2. Mr. G V Ramana Reddy	07532133	Executive Director	Change in designation	01/04/2024 (Originally appointed as Director on 11.05.2016)
3. Dr. YTejaswini	00232268	Non-Executive Director	Appointment	11/05/2016
4. Mr. Venkata Chakrapani Chaturvedula	10813796	Non-Executive, Independent Director	Appointment	11/12/2024
5. Mr. Anantha Krishna Nageshwara	08455478	Non-Executive, Independent Director	Appointment	11/12/2024
6. Mr. Gudla Rama Chandra Rao	-	Chief Financial Officer (CFO)	Appointment	11/12/2024
7. Mr. Dixitula Venkata Kama Dixitulu	-	Company Secretary (CS)	Appointment	11/12/2024

The Company has complied with all applicable provisions concerning the appointment, remuneration, and roles of KMPs.

Retirement by Rotation:

Mr. Pavan Kumar Bang, Chief Executive Officer and Managing Director, who was appointed on April 01,2024 (Originally appointed as Director on August 20, 2012) as a Chief Executive Officer and Managing Director up to March 31,2029 and whose office is liable to retire at the ensuing AGM, being eligible, offers for reappointment.

NUMBER OF BOARD MEETINGS HELD DURING THE YEAR:

The Board of Directors met 11 times during the financial year ended March 31, 2025 in accordance with the provisions of the Companies Act, 2013 and the rules made there under:

01.04.2024	23.05.2024	06.07.2024	26.07.2024	27.08.2024	09.10.2024
18.11.2024	11.12.2024	11.01.2025	25.03.2025	29.03.2025

Proper notices were issued for each meeting, and the proceedings were duly recorded.

COMMITTEES OF THE BOARD:

During the financial year 2024-25, the Company constituted various committees of the Board to comply with the provisions of the Companies Act, 2013 and in preparation for its proposed initial public offering (IPO). These committees were constituted pursuant to a resolution passed at the Board Meeting held on 11^th January 2025.

The following committees were constituted:

Committee	Composition	Remarks
Audit Committee (AC) Constituted in accordance with Section 177 of the Companies Act, 2013	Mr. Venkata Chakrapani Chaturvedula Chairpers on	The members of Audit Committee met once on 25.03.2025. The recommendations made by the Committee were approved by the Board.
	Mr. Anantha Krishna Nageshwara Member
	Ms. Tejaswini Yarlagadda Member
Nomination and Remuneration Committee (NRC) Constituted in accordance with Section 178(1) of the Companies Act, 2013	Mr. Venkata Chakrapani Chaturvedula Chairpers on	The members of Nomination and Remuneration Committee met once on 29.03.2025. The Board has taken note of the same.
	Mr. Anantha Krishna Nageshwara Member
	Ms. Tejaswini Yarlagadda Member
Stakeholders Relationship Committee (SRC) Constituted in accordance with Section 178(5) of the Companies Act, 2013.	Ms. Tejaswini Yarlagadda Chairpers on	The members of Stakeholders Relationship Committee met once on 29.03.2025. The Board has taken note of the same.
	Mr. Anantha Krishna Nageshwara Member
	Mr. Venkata Ramana Reddy G Member

Corporate Social Responsibility (CSR) Committee:

The provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility {CSR) become applicable to a company having net profit of Rs.5.00 crore or more during the immediately preceding financial year. The provisions were not applicable to the Company for the FY 2023-24. The Company has earned a net profit exceeding Rs.5.00 crore during the financial year 2024-25 and the CSR provisions shall be applicable to the Company from the financial year 2025-26. The Board will take necessary steps to constitute a CSR Committee, adopt a CSR Policy, and identify appropriate projects and initiatives to fulfil its CSR obligations in accordance with the law.

INDEPENDENT DIRECTORS:

During the financial year 2024-25, the Company appointed Independent Directors in accordance with the provisions of Section 149(4) of the Companies Act, 2013, read with the Companies {Appointment and Qualification of Directors) Rules, 2014. These appointments were made as part of the Companys transition to a public limited company and in preparation for its proposed listing.

The Independent Directors have submitted declarations under Section 149(7) of the Act confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013. The Board has taken on record the said declarations and is of the opinion that the Independent Directors appointed possess the requisite integrity, expertise, and experience.

COMPANYS POLICY ON DIRECTORS* APPOINTMENT & REMUNERATION:

The Companys Nomination and Remuneration Policy is available on the website of the Company and sets out the criteria for selection and appointment of Directors and KMP and their remuneration.

BOARD EVALUATION:

The Board has carried out an annual evaluation of its own performance, that of its committees and individual Directors, including Independent Directors.

DEPOSITS:

During the financial year ended 31^st March 2025, the Company has not accepted any deposits from its members or the public in accordance with the provisions of Section 73 to 76 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014. Consequently, as of 31st March 2025, there were no outstanding amounts of principal or interest related to

such deposits.

PARTICULARS OF LOANS, GUARANTEES, INVESTMENTS UNDER SECTION 186:

Pursuant to the provisions of Section 186 of the Companies Act, 2013 and the rules made thereunder, the details of loans, guarantees and investments made by the Company during the financial year ended 31 st March 2025 are as follows:

Loans:

During the financial year under review, the Company has not granted any loans to any person or entity, including its subsidiaries, associates, or joint ventures, and has complied with the provisions of Section 186 of the Companies Act, 2013 in this regard.

Guarantees:

During the financial year under review, the Company has not provided any fresh guarantee / security to any person or entity, including its subsidiaries, associates, or joint ventures, and has complied with the provisions of Section 186 of the Companies Act, 2013 in this regard. The details of existing guarantees are as under:

The Company provided Corporate Guarantee on 29.03.2021 for Rs.1.60 Crores in favour of ICICI Bank for the credit facilities availed by Malaxmi Polymers Private Limited and charge was filed with MCA.

Investments:

During the financial year under review, the Company has not made any fresh investment in / to any person or entity, including its subsidiaries, associates, or joint ventures, and has complied with the provisions of Section 186 of the Companies Act, 2013 in this regard. The details of existing investments are as under:

• The Company invested Rs.33,00,000/- by way capital contribution for the Rights Issue made by Malaxmi Polymers Private Limited, subsidiary company duringthe FY 2023-24 and the total outstanding investment in Malaxmi Polymers Private Limited by way of capital contribution is Rs.1,32,00,000/- (66.00%).

• The Company made an investment of Rs.54,39,320/- in Vasavi Building Materials Private Limited (Wholly Owned Subsidiary) to acquire its entire shareholding during the FY 2023-24.

RELATED PARTY TRANSACTIONS:

During the financial year under review, all related party transactions that were entered into by the Company were conducted at arms length basis and were in the ordinary course of business, in compliance with the provisions of Section 188 of the Companies Act, 2013 and applicable accounting standards.

In accordance with the provisions of Section 134(3)(h) of the Act read with Rule 8{2) of the Companies (Accounts) Rules, 2014, the details of related party transactions are provided in the prescribed format Form AOC-2as Annexure - II, which forms an integral part of this Report.

RISK MANAGEMENT FRAMEWORK:

The Company has established a comprehensive and proactive risk management framework aimed at identifying, evaluating, and mitigating potential risks that may impact its operations, financial performance, strategic goals, and reputation.

A detailed Risk Management Policy, approved by the Board of Directors, outlines the Companys structured approach towards risk identification, assessment, monitoring, and mitigation. This policy forms the foundation for a consistent and integrated risk management culture across the organization.

The management team is entrusted with the day-to-day implementation of this framework and conducts regular risk assessments to evaluate both internal and external risk factors. Based on these assessments, appropriate mitigation strategies are developed and implemented, ensuring that risks are addressed proactively and effectively.

By embedding risk management into its core decision-making and operational processes, the Company strives to safeguard stakeholder interests, enhance resilience, and support sustainable growth.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has implemented a robust and structured internal financial control system to ensure the accuracy and integrity of financial reporting, safeguarding of assets, operational efficiency, and compliance with statutory and regulatory requirements. These controls are embedded across the Companys processes and are continuously reviewed for effectiveness.

The internal control framework is governed by formal policies, standard operating procedures, and automated controls supported by oversight at various managerial and board levels. The Companys internal financial controls are designed to:

• Safeguard the Companys assets and prevent losses

• Ensure the reliability and completeness of accounting records

• Detect and prevent frauds and financial irregularities

• Enhance operational effectiveness and efficiency

• Ensure compliance with applicable laws, rules, and regulations

As part of the governance structure, the Audit Committee of the Board plays a critical role in evaluating the adequacy and effectiveness of the internal financial control system. The Committee conducts periodic reviews and recommends improvements wherever necessary, in line with its responsibilities under Section 177 of the Companies Act, 2013.

The internal audit function also supports the framework by conducting risk-based audits and reporting directly to the Audit Committee to ensure transparency and accountability.

Based on the review carried out by management, internal auditors, and the Audit Committee, the Board of Directors affirms that the internal financial controls of the Company were found to be adequate and operating effectively during the financial year under review.

CORPORATE GOVERNANCE AND COMPLIANCE:

All relevant policies including the Vigil Mechanism Policy, Code of Conduct, and Risk Management Policy are available on the Companys website at https://chiraharit.com/investors/corporate-governance/^,,

CORPORATE SOCIAL RESPONSIBILITY (CSR):

The provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility (CSR) become applicable to a company having net profit of Rs.5.00 crore or more during the immediately preceding financial year. The provisions were not applicable to the Company for the FY 2023-24. The Company has earned a net profit exceeding Rs.5.00 crore duringthe financialyear 2024-25. Accordingly, the Company will be required to comply with the provisions of Section 135 from FY2025=28<>nwards, including:

• Constitution of a CSR Committee

• Adoption of a CSR Policy

• Identification and implementation of eligible CSR projects

• Ensuring minimum CSR expenditure as per the Act

The Company is in the process of making the necessary preparations to ensure timely and effective compliance in the upcoming financialyear to ensure compliance under the Act and the Rules made thereunder.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

Management Discussion and Analysis Report is presented in ‘Annexure III* and forms an integral part of the Directors Report.

EXTRACT OF ANNUAL RETURN:

Pursuant to the provisions of Section 92(3) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, the Annual Return of the Company for the financial year ended 31st March 2025 has been placed on the Companys website. The same can be accessed at the following web link: https://chiraharit.com/wp- content/uploads/investors/annual-reports/2024-2025/

DIRECTORS RESPONSIBILITY STATEMENT:

Based on the established and maintained framework of internal financial controls and compliance systems, the work performed by the Statutory Auditors, and the reviews conducted by Management and the Board, the Board is of the opinion that the Companys internalfinancial controls were adequate and effective during the Financial Year 2024-25.

Accordingly, pursuant to Section 134(3)(c) and 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm that:

i. In the preparation of the annualfinancial statements forthe year ended 31^st March 2025, the applicable accounting standards have been followed, and there are no material departures;

ii. Accounting policies have been selected and applied consistently, and judgments and estimates that are reasonable and prudent have been made, to give a true and fair view of the state of affairs of the Company as of 31^st March 2025, and of the profit of the Company for the year ended on that date;

iii. Proper and sufficient care has been taken forthe 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;

iv. The annual accounts have been prepared on a going concern basis;

v. Internal financial controls have been laid down by the Company and are adequate and operating effectively; and

vi. Proper systems have been devised to ensure compliance with the provisions of all applicable laws, and these systems are adequate and operating effectively.

AUDITORS AND AUDITORS REPORT:

Statutory Auditors:

M/s. G.P. Associates, Chartered Accountants, Hyderabad (FRN:006734S), have been appointed as the Statutory Auditors of the Company to hold office from the conclusion of 18^th Annual General Meeting for a period of 5 years, i.e., until the conclusion of 23^rd Annual General Meeting to be held in the year 2029 at such remuneration as may be determined by the Board. They will continue as the Statutory Auditors of the Company.

Explanation or comments on qualifications, reservations or adverse remarks or disclaimers made by the statutory auditors:

The Board of Directors confirms that the Statutory Auditors Report for the financial year ended 31st March 2025 does not contain any qualifications, reservations, adverse remarks, or disclaimers. The observations made by the auditors are self-explanatory and do not require any further comments.

DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143(12) OF THE COMPANIES ACT, 2013:

During the financial year ended 31st March 2025, the Statutory Auditors have not reported any instances of fraud, whether reportable to the Central Government or otherwise, under Section 143(12) of the Companies Act, 2013.

COST AUDIT:

Pursuant to the provisions of Section 148 of the Companies Act, 2013, read with the Companies (Cost Records and Audit) Rules, 2014, the Company is exempt from maintaining cost records and auditfor the financial year 2024-25.

SECRETARIAL AUDIT:

Secretarial Audit was not mandatory for the year under review, however, the Company intends to voluntarily adopt it from FY 2025-26 as part of its strengthening the governance in view of its proposed public listing.

COMPLIANCE WITH SECRETARIAL STANDARDS (SS-1 & SS-2):

The Directors state that applicable Secretarial Standards i.e. SS-1 and SS-2, relating to the ‘meetings of the Board of Directors and General Meetings respectively, have been duly followed by the Company.

DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND VIGIL MECHANISM:

in accordance with the provisions of Section 177 of the Companies Act, 2013, and in preparation for the Companys proposed initial public offering (IPO), the Board of Directors constituted an Audit Committee during the financial year 2024-25.

The Audit Committee was formed pursuant to a resolution passed at the Board Meeting held on 11th January 2025, with the following composition:

Name	Designation
Mr. Venkata Chakrapani Chaturvedula	Chairman (Non-Executive, Independent Director)
Mr. Anantha Krishna Nageshwara	Member (Non-Executive, Independent Director)
Dr. YTejaswini	Member (Non-Executive Director)

The Committee functions in accordance with its charter and the powers and roles prescribed under Section 177 of the Act. It assists the Board in its oversight responsibilities, particularly in relation to the integrity of financial reporting, internal control systems, and audit processes. Vigil Mechanism:

The Company is in the process of establishing a formal Vigil Mechanism Policy as required under Section 177(9) of the Companies Act, 2013. This mechanism will provide a secure and confidenttalframeworkfor employees and stakeholders to report genuine concerns or unethical behavior without fear of retaliation.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, AND FOREIGN EXCHANGE EARNINGS & OUTGO:

Pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, the required disclosures relating to conservation of energy, technology absorption, and foreign exchange earnings and outgo are as follows:

A. Conservation of Energy:

a) Steps Taken or Impact on Conservation of Energy:

As a company engaged in EPC activities across water infrastructure, renewable energy, and civil construction, Chiraharit Limited recognizes energy efficiency as a strategic operational priority.

Energy consumption plays a key role in both cost structure and sustainability performance, especially in field-based project execution under diverse environmental conditions.

Duringthe year, the Company undertook various initiatives including:

• Equipment Optimization: Upgraded construction and pumping machinery to high- efficiency models to reduce diesel and electrical load.

• Operational Best Practices: Improved fleet scheduling, preventive maintenance, and fuel tracking systems to curb energy waste.

• Technology-Enabled Monitoring: Deployed data analytics to assess energy usage at project sites and identify opportunities for efficiency improvements.

Though precise quantification of savings remains challenging due to project variability, these initiatives have collectively led to a measurable reduction in energy intensity across operations. However, your Company remains committed to exploring innovative energy-savingtechnologies and best practices to further enhance its environmental performance and financial sustainability.

b) Steps Taken for Utilizing Alternate Sources of Energy:

The Company continues to evaluate the feasibility of integrating renewable energy solutions - such as solar power for site-based operations and bio-gas utilization - in line with its long-term sustainability vision. While no major capital deployment occurred during the financial year, the Companys involvement in the construction of Compressed Bio-Gas (CBG) plants for clients reflects its broader commitmentto supporting clean energy initiatives.

c) Capital Investment on Energy Conservation Equipment:

Chiraharit Limited prioritizes energy-efficient capital procurement. Investments made during the year in modern pumping systems, solar-compatible components, and low-emission machinery are aligned with this objective. These investments not only enhance operational efficiency but also reflect the Companys proactive approach to sustainable development and cost management.

B. Technology Absorption:

The Company remains committed to adopting advanced engineering and construction technologies to drive project excellence. Key focus areas include:

• Implementation of precision trenching and micro-irrigation technologies in water projects.

• Deployment of automated solar module cleaning systems.

• Use of precast and modular construction techniques for speed and quality in civil projects.

These efforts have resulted in higher project accuracy, better resource management, and improved client satisfaction.

The Company continues to invest in modern engineering solutions and project execution technologies aligned with its operational model. A summary of disclosures under Rule 8(3)(B) of the Companies (Accounts) Rules, 2014 is given below:

i. The efforts made towards technology absorption	Necessary steps have been taken to explore the new methods and ways and absorb the technology in the operation of the company wherever required
li The benefits derived like product improvement, cost reduction, product development or import substitution	Optimum utilisation of resources resulting in cost reduction and competitiveness in the field.
iii In case of imported technology (imported duringthe last three years reckoned from the beginning of the year under reference)	Not Applicable
a) Details of the technology imported	Not Applicable
b) the year of Import	Not Applicable
c) Whether the technology has been fully absorbed	Not Applicable
d) If not fully absorbed, areas where absorption has not taken place, and the reasons thereof	Not Applicable
iv The expenditure incurred on Research and Development	No separate expenditure, it is part of operational expenditure

C. Foreign Exchange Earnings and Outgo

• Foreign Exchange Earnings: Nil

• Foreign Exchange Outgo: Rs.13.48 lakhs

PARTICULARS OF EMPLOYEES:

Pursuant to Rule 5 of the Companies {Appointment and Remuneration Managerial Personnel) Rule, 2014 of the Companies Act, 2013, there are no employees who are in receipt of remuneration of Rs. 1,02,00,000/- or more per annum or Rs. 8,50,000/- or more per month or where employed for a part of the year.

UNSECURED LOAN FROM DIRECTOR:

Duringthe financialyear under review, the Company has not obtained any unsecured loans from the Directors of the Company or their relatives.

DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE ACT, 2013 & PROTECTION OF WOMEN AT WORKPLACE:

The Company strives to provide a safe working environment to woman employees to avoid any gender discrimination. Therefore, the Company has formulated a Policy on Prevention of Sexual Harassment at workplace in terms of the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. The objective of the policy is to prohibit, prevent and address issues of sexual harassment at workplace. Pursuant to the said act the Company has constituted the Internal Complaint Committee for Prevention of Sexual Harassment (ICC) of all women employees whether they are permanent, temporary or contractual. The said policy also covered the women service provider or women who visit any office premises of the Company. In order to raise awareness among the employees the aforesaid policy has been widely circulated to all the employees of the Company.

During the year under review, no case of sexual harassment was reported.

The Committee was reconstituted, and the composition of Internal Complaints Committee is as under

SI. No. Name	Designation	Position in Committee	Contact Details
1 Ms. Sarada Kalavapudi	CEO, Dharmavana Nature Ark Association	Presiding Officer	Flat No. 1412, Turquoise, My Home Jewel Apartments, Madinaguda, Hyderabad-500050 Email: sarada.kalavapudi@gmail.com Mobile: 7893722300
2 Mr.V.L. Kantha Rao	Director, Malaxmi Polymers Pvt. Ltd.	Internal Member	F 304/1 -11 -200, Begumpet, Kukatpally, Hyderabad-500016 Email: vlkantharao@gmail.com Mobile: 9704988488
3 ! Mr. G Rama Chandra Rao	CFO, Chiraharit Limited	Internal Member	Flat No. 401, Infocity Royale, Puppalaguda, Hyderabad-500089 Email: rama@malaxmi.in Mobile: 9000858222
4 Ms. Kavitha David	COO, Unicorpus Health Care (Not- for-Profit)	External Member	20/B, Plot No. 10-3-23, St. Jhons Lane, Secunderabad -500025 Email: kavitha.david@gmail.com Mobile: 8106877665

 

1. Number of Sexual Harassment complaints received during the year	Nil
2. Number of Cases disposed of during the year	Nil
3. Number of cases pending for more than 90 days	Nil

MATERNITY BENEFIT PROVIDED BY THE COMPANY UNDER MATERNITY BENEFIT ACT 1961:

The Company declares that it has duly complied with the provisions of the Maternity Benefit Act, 1961. All eligible women employees have been extended the statutory benefits prescribed under the Act, including paid maternity leave, continuity of salary and service during the leave period, and post-maternity support such as nursing breaks and flexible return-to-work options, as applicable. The Company remains committed to fostering an inclusive and supportive work environment that upholds the rights and welfare of its women employees in accordance with applicable laws.

SIGNIFICANT AND MATERIAL ORDERS:

During the financial year under review, no significant or material orders were passed by any regulators, courts, or tribunals that would affect the going concern status of the Company or materially impact its future operations.

DETAILS OF APPLICATION MADE OR ANY PROCEEDINGS PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016:

During the year under review, there is no application made by or against the Company and there are no proceedings pending under the Insolvency and Bankruptcy Code, 2016.

DISCLOSURE ABOUT THE DIFFERENCE BETWEEN THE AMOUNT OF THE VALUATION EXECUTED 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:

During the year under review, the Company had not entered into any settlement with Banks and Financial Institutions and hence the said clause is not applicable.