Elnet Technologies Ltd Directors Report

To the Members of Elnet Technologies Limited,

Dear Members,

Your directors are pleased to present the 33^rd Annual Report, along with the Annual Audited Financial Statements of your Company, for the Financial Year ended March 31, 2024.

FINANCIAL HIGHLIGHTS:

The Financial Performance of your company is stated hereunder:

(Rs. In Lakhs)

Sr. No.	Particulars	2023-24	2022-23
1	Revenue from operations	2,614.97	2,460.83
2	Other income	827.82	610.03
3	Total revenue	3,442.79	3,070.86
4	Expenses	1,089.28	1,202.96
5	Profit before exceptional items and tax	2,353.51	1,867.90
6	Exceptional items	0.00	0.00
7	Profit before tax	2,353.51	1,867.90
8	Tax expense	604.33	498.41
9	Profit for the period	1,749.18	1,369.49
10	Other comprehensive income, net of income tax	2.77	-0.14
11	Total comprehensive income for the period	1,751.95	1,369.35
12	Earnings per share	43.73	34.24

PERFORMANCE OF THE COMPANY:

STATE OF THE COMPANYS AFFAIRS:

During the Financial Year 2023-24, there was no significant change in the business model of the company.

DIVIDEND:

The Board of Directors at their meeting held on Monday, July 29, 2024, is pleased to recommend a final dividend of 17% i.e., Rs. 1.70/- on the Equity Shares of the Company for the Financial Year ended March 31, 2024. The dividend, if approved by the Shareholders will be paid within the statutory period to all those equity shareholders whose names appear on the Register of Members of the Company as on Tuesday, September 17, 2024, being the record date.

Pursuant to the Income-Tax Act, 1961, dividend income is taxable in the hands of the Shareholders and the Company is required to deduct tax at source from such dividend at the prescribed rates. A separate communication providing detailed information and instructions with respect to tax on the Final Dividend for the Financial Year ended March 31, 2024, is being sent to the Shareholders.

SHARE CAPITAL:

During the Financial Year under review, your Company has not issued any type of shares. Hence there is no change in the share capital of the company.

TRANSFER TO RESERVES:

The Company retained the entire surplus in the Profit and Loss Account and hence no transfer to the General Reserve was made during the Financial Year.

TRANSFERS TO THE INVESTOR EDUCATION AND PROTECTION FUND (IEPF):

Pursuant to Section 124 of the Companies Act, 2013, read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, all unpaid or unclaimed dividends are required to be transferred by the Company to the Investor Education and Protection Fund (IEPF) established by the Central Government, after completion of Seven Consecutive Years from the date of transfer to unpaid dividend account. Further, according to the Rules, the shares in respect of which dividend has not been paid or claimed for Seven Consecutive Years or more shall also be transferred to the demat account of IEPF Authority. Transfer of Unpaid/Unclaimed Dividend Amount/Shares pertaining to the dividend declared in the Financial Year ended March 31, 2017, to Investor Education and Protection Fund (IEPF)

The due date for transfer of Unpaid/Unclaimed Dividend Amount and corresponding Shares for the dividend declared during the Financial Year ended March 31, 2017, is August 08, 2024. In compliance with the provision, during the Financial Year 2023-2024, the Company had sent intimation to the eligible shareholders and had also issued advertisement in the newspaper seeking action from the shareholders who have not claimed their dividends for seven consecutive years or more for the dividend declared during the Financial Year ended March 31, 2017. Accordingly, after the expiry of the due date for claiming the unpaid/ unclaimed dividend, the Company will transfer such unpaid or unclaimed dividends along with the corresponding shares for the Financial Year ended March 31, 2017, to IEPF authority. Details of shares/shareholders in respect of which dividend has not been claimed, are available on the website of the company www.elnettechnologies.com (Investors/ Compliances/ Unpaid Dividend Data/year 2024). Members are requested to ensure that they claim the dividends and shares referred to above before they are transferred to the said Fund. Members/claimants whose shares, and/or unclaimed dividend, have been transferred to the IEPF Demat Account or the Fund, as the case may be, may claim the shares or apply for refund of dividend by making an application to the IEPF Authority in Form IEPF-5 (available on http://www.iepf.gov.in) along with requisite fee as decided by the IEPF Authority from time to time. The Member/claimant can file only one consolidated claim in a Financial Year as per the IEPF Rules.

CASH FLOW STATEMENT:

In compliance with the provisions of Section 134 of the Companies Act, 2013 and Regulation 34(2)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Cash flow statement for the Financial Year ended March 31, 2024, forms part of this Annual Report.

NUMBER OF MEETINGS OF THE BOARD & COMMITTEES:

The Board of Directors met 04 (Four) times during the Financial Year ended March 31, 2024. i.e., May 29, 2023, August 14, 2023, November 08, 2023, and February 07, 2024. The gap between the Board meetings was within the period prescribed under the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Details regarding attendance of directors at the Board Meetings and the particulars of meeting of all Committees held during the Financial Year ended March 31, 2024, are given in the Corporate Governance report forming part of this Annual Report.

PASSING OF BOARD RESOLUTION BY CIRCULATION:

During the Financial Year 2023-24, there were no resolutions passed through circulation.

AUDIT COMMITTEE:

Pursuant to Section 177(8) of the Companies Act 2013 and Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has constituted an Audit Committee. The particulars of the Composition of the Audit Committee, meetings held during the financial year and other particulars have been detailed in the Corporate Governance Report forming part of this Annual Report.

DETAILS OF RECOMMENDATIONS OF AUDIT COMMITTEE WHICH WERE NOT ACCEPTED BY THE BOARD ALONG WITH REASONS:

The Audit Committee generally makes certain recommendations to the Board of Directors of the Company during their meetings held, to consider any financial results (Unaudited and Audited) and such other matters placed before the Audit Committee as per the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 from time to time. For the Financial Year 2023-24, the Board of directors has considered all the recommendations made by the Audit Committee and has accepted and carried on the recommendations suggested by the Committee to its satisfaction. Hence there are no recommendations unaccepted by the Board of Directors of the Company during the Financial Year under review.

CHANGE IN DIRECTORS AND KEY MANAGERIAL PERSONNEL:

CHANGE IN DIRECTORS APPOINTMENT/REAPPOINTMENT, CHANGE IN DESIGNATION AND RESIGNATION:

During the Financial Year ended March 31, 2024, pursuant to the Articles of Association of the Company and reference to the resolution passed at the Meeting of Board of Directors are detailed below:

APPOINTMENT:

Mr. Aneesh Sekhar Somasekharannair (DIN: 07887010) was appointed in place of Mr. Arulmarianathan Louis John (DIN: 06637866) as Chairman and Non-Executive Additional Director of the company with effect from May 29, 2023, and he was also regularized in the 32^nd Annual General Meeting held as on Saturday, September 09, 2023.

RE-APPOINTMENT:

a) Mrs. Unnamalai Thiagarajan was reappointed as Managing Director for a term of five years, with effect from September 30, 2023. The shareholders approved her reappointment at the Annual General Meeting held on Saturday, September 9, 2023.

b) Mr. Ammoor Periyan Radhakrishnan (DIN: 03642690) was reappointed as an Independent Director, effective March 2, 2024, for a second term. This reappointment was made in accordance with Sections 149, 150, and 152 and other applicable provisions of the Companies Act, 2013, including any statutory modifications or reenactments thereof, the Companies (Appointment and Qualifications of Directors) Rules, 2014, and Regulation 17 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. On Tuesday, April 30, 2024, shareholders approved the proposal through postal ballot. The results of the remote electronic voting, which took place from Monday, April 1, 2024, to Tuesday, April 30, 2024, were announced on Thursday, May 2, 2024.

RESIGNATION:

Mr. Arulmarianathan Louis John (DIN: 06637866) departed from the Board of the Company w.e.f. May 29, 2023. The Board extends its sincere gratitude for his services and support during his tenure as Chairperson and Non-Executive Additional Director.

RETIRE BY ROTATION:

Pursuant to Section 152(6)(c) of the Companies Act, 2013, Mr. Ravi Janakiraman (DIN: 00042953) and Mr. Chakkolath Ramachandran (DIN: 00050893) retired by rotation at the 32^nd Annual General Meeting of the Company held on Saturday, September 09, 2023, and being eligible and willing, were re-appointed.

CHANGE IN KEY MANAGERIAL PERSONNEL:

There were no changes in Key Managerial Personnel in the Company during the Financial Year March 31, 2024.

ANNUAL RETURN:

Pursuant to the provisions of Section 134(3) (a) of the Companies Act, 2013, the Annual Return as per the provisions of Section 92 (3) of the Companies Act, 2013 can be viewed on the website of the Company www.elnettechnologies.com

INDEPENDENT DIRECTORS DECLARATION:

The Company has received declarations from all the Independent Directors on the board of the Company at on the end of Financial Year 2023-24 confirming that they continue to meet with the criteria of Independence as prescribed under Section 149(6) of the Companies Act, 2013 and Regulation 25 & 16 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and amendments made under thereto.

In the opinion of the Board, all the Independent Directors are persons of integrity and are experts in various fields of Finance, Law, Technology, Engineering and Commerce and have more than 20 years of vast experience. All the Independent Directors of the Company have complied with the provision of Section 150 of the Companies Act, 2013.

Hence in the opinion of the Board all the Independent Directors of the Company fulfill the conditions specified in the Listing Regulations and are independent of the management.

CORPORATE GOVERNANCE REPORT:

Pursuant to Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Schedule-V thereof, the report on Corporate Governance and the certificate of practicing Company Secretaries regarding compliance with the conditions of Corporate Governance has been furnished in the Annual Report as ANNEXURE-VI and forms part of the Annual Report.

MANAGEMENT DISCUSSION & ANALYSIS:

Pursuant to Regulation 34(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Schedule-V thereof, the Management Discussion and Analysis report has been annexed to the Boards Report as ANNEXURE-IV and forms part of the Annual Report.

COMPLIANCE WITH CODE OF CONDUCT:

A code of conduct has been adopted by the company, the Board of Directors and the Senior Management personnel. The said Code of Conduct can be accessed on the website of the company, i.e. www.elnettechnologies.com. As of March 31, 2024, every member of the Board and every member of senior management has confirmed that they are in conformity with the Code. As required under Regulation 34(3) and Schedule V (D) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a declaration from Mrs. Unnamalai Thiagarajan, Managing Director to this effect is annexed to the report on Corporate Governance which forms part of this Annual Report.

LISTING OF SHARES:

The equity shares of the Company are listed on the Stock Exchange viz., BSE Limited (BSE). The Company has paid the applicable annual listing fees to the Stock Exchanges within the stipulated time.

DEMATERIALISATION OF EQUITY SHARES:

As on March 31, 2024, 38,98,373 numbers of equity shares are held in dematerialized form, which constitutes 97.46% of total shareholding. The Company urges its shareholders to dematerialize the remaining physical shares also at the earliest.

ACCEPTANCE OF DEPOSITS:

During the Financial Year under review, your Company neither accepted any deposits nor there were any amounts outstanding at the beginning or end of the Financial Year which were classified as ‘Deposits in terms of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014 and hence, the requirement for furnishing of details of deposits which are not in compliance with the Chapter V of the Companies Act, 2013 is not applicable.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirement under Sections 134(3) (c) and 134(5) of the Companies Act, 2013, in relation to the audited financial statements of the Company for the Financial Year ended March 31, 2024, the Board of Directors hereby confirms that:

a) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanations relating to material departures wherever applicable. b) The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent to give a true and fair view of the state of affairs of your Company as of March 31, 2024, and of the profit of your Company for the year ended on that date.

c) The Directors have taken proper and sufficient care of the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of your 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 have laid down internal financial controls to be followed by your Company and that such internal financial controls are adequate and are operating effectively and

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

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:

In compliance with the requirements of Section 135 and Schedule VII of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended, the Board of Directors have framed a policy on CSR as recommended by the CSR committee duly constituted and the said policy is available on the Companys website www.elnettechnologies.com. The composition and terms of reference of the CSR Committee are detailed in the Corporate Governance Report forming part of this Annual Report.

The disclosure on Corporate Social Responsibility initiatives during the Financial Year has been provided in ANNEXURE-III, which forms part of this Annual Report.

STATUTORY AUDITORS:

Pursuant to the provisions of Section 139 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, as amended, M/s. Selvam & Suku, Chartered Accountants, Chennai, were appointed as Statutory Auditors of your Company in the 31^st Annual General Meeting of the Company for a term of 5 years till the conclusion of 36^th Annual General Meeting.

The Annual Accounts of the Company including its Balance Sheet, Statement of Profit and Loss and Cash Flow Statement including the Notes and Schedules to the Accounts have been audited by M/s. Selvam & Suku, Chartered Accountants, Chennai.

The Independent Auditors Report given by the Auditors on the financial statements of the Company forms part of the Annual Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report which requires any explanation/ comments by the Board.

SECRETARIAL AUDITOR:

Pursuant to the Section 204(1) of the Companies Act, 2013 read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Board of Directors had appointed M/s. BP & Associates, Practicing Company Secretaries, Chennai as the Secretarial Auditors of the Company for conducting the Secretarial Audit for the Financial Year 2023-24.

Remarks from Secretarial Auditor	Board Comments
The Companies failure to update few policies in line with prevailing regulations, circulars and guidelines.	Board will update the policies in upcoming Board Meeting.
During the year, the company has not obtained shareholders approval for reappointment of Mr. Ammoor Periyan Radhakrishnan (DIN: 03642690) as an Independent Director of the Company before the expiring of first term on March 01, 2024. However, the Company has subsequently obtained the shareholders approval after expiring of his term on April 30, 2024, by a Postal Ballot for the second term of 05 (Five) consecutive years (i.e., w.e.f. 02nd March, 2024 to 01st March, 2029	The observation/comments made by the Auditors in their report are self-explanatory. The Board believes that no further clarification is required on the same.

Apart from the above-mentioned remarks, the Secretarial Audit Report for the Financial Year 2023-24 does not contain any other remarks, adverse qualifications, reservations, or disclaimers that require further explanation or comments from the Board. The Secretarial Audit Report is included in this Annual Report and is annexed as ANNEXURE-V.

INTERNAL AUDITOR:

Pursuant to Section 138 of the Companies Act, 2013 read with Rule 13 of the Companies (Accounts) Rules, 2014 and all other applicable provisions (including any amendment thereto) if any of the Companies Act, 2013, M/s. Ajay Kumar and Associates, Chartered Accountants, Chennai were appointed as the Internal Auditors of the Company for the Financial Year 2023-24.

The audit conducted by the Internal Auditors is based on an internal audit plan, which is reviewed each quarter in consultation with the Audit Committee. These audits are based on risk-based methodology and inter alia involve the review of internal controls and governance processes, adherence to management policies and review of statutory compliances. The Internal Auditors share their findings on an ongoing basis during the financial year for corrective action. The Audit Committee oversees the work of Internal Auditors.

COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND GENERAL MEETINGS:

During the Financial Year 2023-24, your Company has complied with applicable Secretarial Standards, namely SS-1 & SS-2 issued by the Institute of Company Secretaries of India.

PARTICULARS OF EMPLOYEES:

The information as required under the provisions of Section 197(12) of the Companies Act, 2013 and read with Rule 5(1), 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are set out in ANNEXURE - I attached herewith which forms part of this report.

The statement containing such particulars of employees as required in terms of the provisions of Section 197(12) of the Act read with rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, forms part of the Annual Report.

CONSERVATION OF ENERGY/TECHNOLOGY ABSORPTION/FOREIGN EXCHANGE EARNINGS AND OUTGO: A. CONSERVATION OF ENERGY:

Steps taken or impact on conservation of energy	The operations of the Company are not energy intensive. However, wherever possible, the Company strives to curtail the consumption of energy on a continuing basis.
Steps taken by the company for utilizing alternate sources of energy
Capital investment on energy conservation equipments

B. TECHNOLOGY ABSORPTION:

Efforts made towards technology absorption
Benefits derived like product improvement, cost reduction, product development or import substitution
Expenditure on Research & Development if any	Not Applicable
Details of technology imported if any
Year of import
Whether imported technology fully Absorbed
Areas where absorption of imported technology has not taken place, if any

C. FOREIGN EXCHANGE EARNING AND OUTGO:

Particulars	Amount (In Lakhs)
Total Foreign exchange earned	NIL
Total Foreign exchange outgo	NIL

ANNUAL BOARD EVALUATION AND FAMILIARIZING PROGRAMME:

The Board has carried out an annual evaluation of its own performance, the directors and Committees of the Board based on the guidelines formulated by the Nomination & Remuneration Committee under Self-evaluation method. Board composition, quality and timely flow of information, frequency of meetings, and level of participation in discussions were some of the parameters considered during the evaluation process. A note on the familiarizing programme adopted by the Company for the orientation and training of the Directors and the Board evaluation process undertaken in compliance with the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is provided in the Corporate Governance Report which forms part of this Report. Further, the Independent Directors of the Company met once during the Financial Year on February 07, 2024, to review the performance of the Non-Executive Directors, Chairman of the Company and performance of the Board as a whole. Details regarding the familiarization programme are also available on the website of the Company.

AS PER THE SEBI CIRCULAR SEBI/HO/CFD/CMD/CIR/P/2018/79 DATED 10^TH MAY 2018, THE FOLLOWINGS DETAILS ARE BEING PROVIDED ON BOARD EVALUATION:

Observations of board evaluation carried out for the Financial Year.	There were no observations arising out of board evaluation during the year as the evaluation indicates that the Board has functioned effectively within its powers as enumerated under the Companies Act, 2013 and in consonance with the Articles of Association of the Company.
Previous years observations and action taken.	There were no observations during the previous year warranting any action.
Proposed actions based on current Financial Year observations.	As there were no observations, the action to be taken does not arise.

NOMINATION AND REMUNERATION POLICY:

The Company believes that a diverse and inclusive culture is integral to its success. A diverse Board, among others, will enhance the quality of decisions by utilizing different skills, qualifications, professional experience, and knowledge of the Board members necessary for achieving sustainable and balanced development. Accordingly, the Board, based on the recommendation of the Nomination and Remuneration Committee has formulated a policy on Directors appointment, remuneration of Directors, Key Managerial Personnel and Senior Management of the Company. The policy covers the appointment, including criteria for determining qualification, positive attributes, independence and remuneration of its Directors, Key Managerial Personnel and Senior Management Personnel. The key highlights of the policy forms part of this Report. The Nomination and Remuneration Policy may be accessed on the Companys website at https://www.elnettechnologies.com/Document/Nomination-And-Remuneration-Policy.pdf

AFFIRMATION THAT THE REMUNERATION IS AS PER THE REMUNERATION POLICY OF THE COMPANY:

The Company has formulated the Nomination and Remuneration Policy in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and Part D of Schedule II of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time. This policy governs the criteria for deciding the remuneration for Directors and Key Managerial Personnel. It is affirmed that the remuneration to Directors and Key Managerial Personnel is being fixed based on the criteria and parameters mentioned in the above-mentioned policy of the Company.

BOARD DIVERSITY:

The Company recognizes and values the importance of a diverse board as part of its corporate governance and success. The Company believes that a truly diverse Board will leverage differences in ideas, knowledge, thought, perspective, experience, skill sets, age, ethnicity, religion, and gender, which will go a long way in retaining its competitive advantage.

ESTABLISHMENT OF VIGIL MECHANISM/ WHISTLE BLOWER POLICY:

Pursuant to Section 177(9) of the Companies Act 2013 and Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Company has formulated a whistle blower mechanism for directors and employees to report concerns about unethical behaviour, actual or suspected frauds or violation of the Companys code of conduct and ethics. The Audit Committee oversees the functioning of Whistle Blower Policy. The Whistle Blower Policy covering all the employees and directors is available in the Companys website at https://www.elnettechnologies.com/Document/Vigil-Mechanism-Policy-and-Whistle-Blower-Policy.pdf

PARTICULARS OF LOANS, INVESTMENT OR GUARANTEES:

The Company has not given any loans or guarantees covered under the provision of Section 186 of the Companies Act, 2013. The details of the investments made by the Company are given in the notes for the financial statements which form part of this Annual Report.

RISK MANAGEMENT POLICY:

Pursuant to section 134(3)(n) of the Companies Act, 2013 the Company has framed Risk Management Policy which lays down the framework to define, assess, monitor, and mitigate the business, operational, financial, and other risks associated with the business of the Company. The Company has been addressing risks impacting the Company in the Management Discussion and Analysis Report which forms part of this Annual Report.

During the Financial Year the Company has not identified any element of risk which may threaten the existence of the Company.

DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

The Company has Internal Complaints Committees as required under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The Company firmly provides a safe, supportive, and friendly workplace environment - a workplace where our values come to life through the underlying behaviors. A positive workplace environment and a great employee experience are integral parts of our culture.

During the year under review, there were no cases filed pursuant to the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013.

MATERIAL CHANGES AND COMMITMENTS:

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

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

During the financial year, the Company has not entered into any new contracts / arrangements with related parties which qualify as material in accordance with the Policy of the Company on materiality of related party transactions.

There are no materially significant related party transactions that may have potential conflict with the interest of the company at large.

The details of the Related Party Transactions as per Indian Accounting Standards (Ind AS) 24 are set out in Note No. 37 to the Financial Statements of the Company.

Form AOC-2 pursuant to Section 134 (2) (h) of the Companies Act, 2013 read with Rule 8 (2) of the Companies (Accounts) Rules, 2014 is set out the ANNEXURE - II to the report.

The policy on Related Party Transactions as approved and can be accessed at website of the company www.elnettechnologies.com/Document/Related%20Party%20Transaction%20policy.pdf adopted by Board.

REPORT AS PER SECTION 134 READ WITH RULE 8 AND SUB RULE 5 OF THE COMPANIES ACCOUNTS RULES, 2014:

Change in nature of business, if any: NIL

Name of Companies which have become or ceased to be its subsidiaries, Joint Ventures, or associate companies during the year: N.A.

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 have been no significant and material orders passed by the courts or regulators or tribunals impacting the going concern status and Companys operations.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an adequate internal control system which commensurate with the size, scale, and complexity of its operations. The Internal Auditor monitors and evaluates the efficacy and adequacy of the internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. A report of Auditors pursuant to Section 143(3) (i) of the Companies Act, 2013 certifying the adequacy of Internal Financial Controls is annexed with the Auditors report.

COST AUDIT:

The provisions related to cost audits are not applicable to the Company.

DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS:

The auditors of the Company have confirmed that during the course of their audit, no material fraud, either by the Company or on the Company by its officers or employees, was noticed or reported. This is stated in the Independent Auditors Report, which forms part of this Annual Report. Hence, there is nothing to report to the Audit Committee or Board of Directors.

PERSONNEL:

Employee relations have been very cordial during the Financial Year ended March 31, 2024. The Board wishes to place on record its appreciation to all the employees in the Company for their sustained efforts and immense contribution to the high level of performance and growth of the business during the Financial Year. The Management team of the Company comprises of experienced passionate driven professionals committed to organizational goals.

ACKNOWLEDGEMENT:

Your directors gratefully acknowledge the continued support and Co-Operation of Government of Tamil Nadu, Electronics Corporation of Tamil Nadu Ltd., (ELCOT).

The Directors also thank the Bankers, Axis Bank - Thiruvanmiyur Branch, State Bank of India - Industrial Finance Branch, Chennai, Canara Bank - Tidel Park Branch, Axis Bank - Chennai Main Branch, Mylapore and the Companys customers, dealers, vendors and sub-contractors for their valuable support and assistance extended during the Financial Year.

The Directors wish to place on record their appreciation of the good work done by all the employees of the Company during the year under review.

For and on behalf of the Board of Directors, of Elnet Technologies Limited

Sd/-	Sd/-
Ramu Kannan	Unnamalai Thiagarajan
Chairman Director	Managing Director
DIN: 08562787	DIN: 00203154
Place: Chennai
Date: July 29, 2024