Goldstar Power Ltd Directors Report.

To,

The Members,

GOLDSTAR POWER LIMITED,

Dear Members,

Your Directors are pleased to present their 22ndAnnual Report on the business and operations of the company together with the Audited Financial Statements for the financial year ended on March 31, 2021.

FINANCIAL RESULTS:

Your Companys performance for the year ended on 31st March, 2021, is summarized as under:

(Amount in Rs)
Sr PARTICULARS No 2020-21 2019-20
1. Revenue from Operation (Net) 42,06,10,821.05 35,87,61,812.10
2. Other Income 1,75,32,175.29 19,298,358.79
3. TOTAL REVENUE (1+2) 43,81,42,996.34 37,80,60,170.89
4. Cost of raw material consumed 29,93,73,123.29 29,84,25,297.56
5. Employees Benefits Expense 2,92,52,587.02 2,98,29,072.00
Changes in Inventories of Finished 6. goods, work-in-progress and Stock-inTrade 2,58,34,183.04 (2,01,86,316.76)
7. Finance Cost 96,17,404.76 88,74,341.68
8. Depreciation & Amortization Exp. 1,58,13,403.00 1,63,35,699.00
9. Other Expenses 5,65,84,426.67 4,16,97,288.10
10. TOTAL EXPENSE (4+9) 43,64,75,127.78 37,49,75,381.58
11 Profit/ (Loss) Before Tax 16,67,868.56 30,84,789.31
12. Current Tax 25,10,000.00 21,00,000.00
13. Deferred Tax (16,20,000.00) (20,80,000.00)
14. Less: MAT Credit 0.00 (6,84,809.00)
15. PROFIT/ (LOSS) AFTER TAX (PAT) 7,77,868.56 37,49,598.31

OPERATIONAL RESULTS AND STATE OF COMPANY AFFAIRS:

The Highlights of Companys performance for the year ended on March 31, 2021:

> Total Revenue from Operations increased from Rs. 35.88Croresof previous F.Y.2019-20 to Rs. 42.06 Crores in the year under Report

> Total Expenses has increased from Rs. 37.50 Crores of previous F.Y. 2019-20 to Rs. 43.65 Crores in the year under Report

> Profit before exceptional & extra ordinary items has decreased from Rs. Rs. 30.85 Lakhs of previous F.Y. 2019-20 to Rs. 16.68 Lakhs in the year under Report

> Net Profit decreased from Rs. Rs. 37.50 Lakhs of previous F.Y. 2019-20 to Rs. 7.78 Lakhs in the year under Report

> Earnings per share (EPS) for the F.Y. 2020-21 is 0.07 as compared to 0.35 of F.Y. 2019-20.

The Board assures that the management will leave no efforts untouched to increase the profitability of the company.

UPDATE ON COVID 19

During the last quarter of FY 2019-20, COVID-19 spread globally and in India. This had an impact on the business operations of the Company. Some normalcy was restored as infections reduced and therefore lockdown restrictions were lifted in the country during the second half of the year.

However, towards the end of FY 2020-21, a much stronger second wave of the pandemic with significantly higher infections had been witnessed across the country. The enforcements from authorities at local levels this time are much stricter. Enforcements vary from complete or partial lockdown in several cities and towns, to restricted hours of operations, to store closures on certain days of the week. As the country continues to grapple with this situation, we frequently expect such restrictions throughout the country during the year.

The complete extent to which COVID-19 further impacts our business will depend on future developments, which are highly uncertain and cannot be predicted. At the same time, our business continues to rapidly adopt new guidelines announced by the Central Government, State Governments and the local authorities

DECLARATION OF DIVIDEND:

With a view to use the internal accruals for growth of the Company and to strengthen the financial position of the company, your directors do not recommend any dividend for the year under Report.

TRANSFER OF AMOUNT TO RESERVES:

Pursuant to provision of section 134(1) (j) of the Companies Act, 2013, no amount is transferred to general reserves account of the Company during the year under review.

The company has a closing balance of Rs. 9,01,29,345.90/- (Rupees Nine Crore One Lakh Twenty Nine Thousand Three Hundred Forty Five and Ninety Paisa) as Reserves and Surplus as on 31.03.2021.

CHANGE IN NATURE OF BUSINESS:

The Company is engaged in the business of manufacture, produce and assembles all types of batteries, including storage batteries, dry batteries, solar power batteries etc. During the year, Your Company has not changed its business or object and continues to be in the same line of business as per main object of the company.

MATERIAL CHANGES AND COMMITMENTS. IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THIS REPORT.

There are no Material Changes and Commitments affecting the Financial Position of the Company between the end of Financial Year of the Company to which the Financial Statement relates and the date of this report.As stated earlier, there are certain effects of Corona pandemic in the financial year 2020-21, which the Company isconfident to compensate in the fourth coming years.

DEPOSITS:

The Company has neither accepted nor renewed any deposits falling within the purview of Section 73 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014 as amended from time to time, during the year under review and therefore details mentioned in Rule 8(5)(V) & (VI) of Companies (Accounts) Rules, 2014 relating to deposits, covered under Chapter V of the Act is not required to be given.

SHARE CAPITAL:

There is no change in the Share Capital of the Company during the Financial Year 202021.

DETAILS OF SUBSIDIARY/ JOINT VENTURE/ ASSOCIATE COMPANIES:

As on March 31, 2021, the Company does not have any subsidiary or joint venture and associate company.

LISTING STATUS:

The Companys equity shares are listed on NSE Emerge SME platform of National Stock Exchange of India Limited with Symbol GOLDSTAR. The Company is regular in payment of Annual Listing Fees. The Company has paid Listing Fees upto the year 2021-22.

DIRECTORS AND KEY MANAGERIAL PERSONNEL:

• REGISTRATION OF INDEPENDENT DIRECTORS IN INDEPENDENT DIRECTORS DATABANK:

All the Independent Directors of the Company have been registered and are members of Independent Directors Databank maintained by Indian Institute of Corporate Affairs.

• DIRECTORS LIABLE TO RETIRE BY ROTATION AND BE ELIGIBLE TO GET REAPPOINTED:

Pursuant to Section 149, 152 and other applicable provisions of the Companies Act, 2013, one-third of such of the Directors as are liable to retire by rotation, shall retire every year and, if eligible, offer themselves for re-appointment at every AGM.

Pursuant to the provisions of Section 152(6) and other applicable provisions of the Companies Act, 2013. Mrs. Dhruti N. Pansara (DIN: 01943399) though appointed as Director of the Company. she has been associated with the Company since 2007, is liable to get retired by rotation being eligible has offered herself for re-appointment at the ensuring 22ndAGM of the Company. The Board recommends her reappointment for consideration by the Members of the Company at the 22ndAnnual General Meeting. Accordingly, requisite resolution shall form part of the Notice convening the AGM.

• DECLARATION BY INDEPENDENT DIRECTOR

All the Independent Directors have confirmed to the Board that they meet the criteria of Independence as specified under Section 149(6) of the Companies Act, 2013 and Regulation 25 of the Listing Regulations that they qualify to be Independent Directors pursuant to Rule 5 of the Companies (Appointment and Qualification of Directors)

Rules, 2014. They have confirmed that they meet the requirements of "Independent Director" as mentioned under Regulation 16 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

Therefore, Board is duly composed as per the Companies Act, 2013 provisions and SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015. There is no change held in the composition of Board of Directors during the Financial Year 2020- 21.The confirmations were placed before and noted by the Board.

Mr. MaheshSojitra (DIN:09234220), is appointed as an Additional Director of the Company in the capacity of Independence w.e.f. 24.07.2021, after confirming to the Board that he has meet the criteria of Independence as specified under Section 149(6) of the Companies Act, 2013 and Regulation 25 of the Listing Regulations that they qualify to be Independent Directors pursuant to Rule 5 of the Companies (Appointment and Qualification of Directors) Rules, 2014. Also, Company had received declaration confirming that he is not debarred from holding the office ofdirector and holding office by virtue of any SEBI order or any other such authority.

Further, Mr. Jayantkumar Virani (DIN: 07831403) resigned from the post of Independent Director of the Company w.e.f. 24.07.2021.

BOARD AND COMMITTEE MEETING:

? BOARD MEETING:

The Board meets at regular intervals to discuss and take a view on the Companys policies and strategy apart from other Board matters. The notice for Board Meetings is given well in advance to all the Directors.

The Board of Directors met 6 times during the financial year ended March 31, 2021 in accordance with the provisions of the Companies Act, 2013 and rules made thereunder. The intervening gap between two board meetings was within the period prescribed under the Companies Act, 2013 and as per Secretarial Standard-1. The prescribed quorum was presented for all the Meetings and Directors of the Company actively participated in the meetings and contributed valuable inputs on the matters brought before the Board of Directors from time to time.

Six Board Meetings were held as under:

1. 23.05.2020 2. 29.06.2020 3. 31.08.2020
4. 12.11.2020 5. 12.01.2021 6. 15.02.2021

Attendance of Directors in the Board Meeting

Sr.No Name of Director No. of Board Meeting
Held Attended
1. Mr. Mulji M. Pansara (Chairman) 6 4
2. Mr. Navneet M. Pansara (Managing Director) 6 6
3. Mr. Amrutlal M. Pansara (Whole-Time Director) 6 5
4. Mr. Vishal M. Pansara (Whole-Time Director) 6 5
5. Mrs. Dhruti N. Pansara (Director) 6 6
6. Mr. Jayant C. Virani (Independent Director) 6 3
7. Mr. Chetan V. Khattar (Independent Director) 6 4
8. Mr. Hemraj Patel (Independent Director) 6 4

NUMBER OF COMMITTEE MEETING

The Audit Committee met 4 times during the Financial Year ended March 31, 2021. The Stakeholders Relationship Committee met 1 timeduring the Financial Year ended March 31, 2021. The Nomination and Remuneration Committee met 3 times during the Financial Year ended March 31, 2021. Members of the Committees discussed the matter placed and contributed their valuable inputs on the matters brought before the meetings.

Additionally, during the Financial Year ended March 31, 2021 the Independent Directors held a separate meeting on 15th February, 2021 in compliance with the requirements of Schedule IVof the Companies Act, 2013 and Regulations 25(3) of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

COMMITTEES OF THE BOARD:

The Company has three committees viz; Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee which has established as a part of better corporate governance practices and is in compliance with the requirements of the relevant provisions of applicable laws and statutes.

I. AUDIT COMMITTEE:

The Audit Committees composition meets with the requirement of section 177 of the companies Act, 2013 and Clause 49 of Listing Agreement and Regulation 18 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. The Members of the Audit Committee possesses financial / accounting expertise / exposure.

The Audit Committee comprised of 4 members as per Table here in below. The Company Secretary is the Secretary and Compliance Officer of the committee. The detail of the composition of the Audit Committee along with their meetings held/ attended is as follows:

Sr. No Name Designation No. of Meetings held No. of Meetings attended
1. #Mr. Jayant Virani (Independent Director) Chairman 4 2
2. Mr. Chetan Khattar (Independent Director) Member 4 3
3. Mr. Hemraj Patel (Independent Director) Member 4 3

# After the closure of the Financial Year, Mr. Jayant Virani (DIN:07831403) has resigned from the post of Independent Directorship w.e.f. 24th July, 2021 and Mr. Maheshbhai Sojitra(DIN: 09234220), is appointed as an Additional Director of the Company in the capacity of Independence w.e.f. 24.07.2021.

During the year under review, meetings of Audit Committee were held on:

29.06.2020 31.08.2020 12.11.2020 15.02.2021

II. COMPOSITION OF NOMINATION & REMUNERATION COMMITTEE:

The Nomination & Remuneration Committees composition meets with the requirement of section 178 of the companies Act, 2013 and Clause 49 of Listing Agreement and Regulation 19 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. The Members of the Nomination & Remuneration Policy possesses sound knowledge / expertise / exposure.

The Committee comprised of 3 members as per Table here in below. The Company Secretary is the Secretary and Compliance Officer of the Committee. The detail of a composition of the Nomination & Remuneration Committee along with their meetings held/ attended is as follows: -

Sr. Name No Designation No. of Meetings held No. of Meetings attended
1. Mr. Hemraj Patel (Independent Director) Chairman 3 2
2. Mr. Chetan Khattar (Independent Director) Member 3 2
3. # Mr. Jayant Virani (Independent Director) Member 3 2

# After the closure of the Financial Year, Mr. Jayant Virani (DIN:07831403) has resigned from the post of Independent Directorship w.e.f. 24th July, 2021 and Mr. Maheshbhai Sojitra(DIN: 09234220), is appointed as an Additional Director of the Company in the capacity of Independence w.e.f. 24.07.2021.

During the year under review, meetings of Nomination & Remuneration Committee were held on

29.06.2020 12.11.2020 15.02.2021

The Company has duly formulated the Nomination & Remuneration Policy which is also available at the Company Website http://goldstarpower.com/wp-content/uploads/2018/05/Nomination- Remuneration-Policy.pdf.-LINK

III. COMPOSITION OF STAKEHOLDERS & RELATIONSHIP COMMITTEE:

The Stakeholders Relationship Committee meets with the requirement of the Section 178 of the Companies Act, 2013 and Regulation 20 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Stakeholders Relationship Committee is mainly responsible to review all grievances connected with the Companys transfer of securities and Redressal of shareholders / Investors / Security Holders Complaints.

The Committee comprised of 3membersas per Table here in below. The Company Secretary is the Secretary and Compliance Officer of the Committee. The detail of a composition of the said Committee along with their meetings held/ attended is as follows: -

Sr. Name No Designation No. of Meetings held No. of Meetings attended
1. Mr. Chetan Khattar (Independent Director) Chairman 1 1
2. Mr. Hemraj Patel (Independent Director) Member 1 1
3. # Mr. Jayant Virani (Independent Director) Member 1 0

During the year under review, meetings of Stakeholders Relationship Committee were held on August31, 2020.

# After the closure of the Financial Year, Mr. Jayant Virani (DIN:07831403) has resigned from the post of Independent Directorship w.e.f. 24th July, 2021 and Mr. Maheshbhai Sojitra(DIN: 09234220), is appointed as an Additional Director of the Company in the capacity of Independence w.e.f. 24.07.2021.

PERFORMANCE EVALUATION OF THE BOARD. ITS COMMITTEES AND INDIVIDUAL DIRECTORS:

Pursuant to the provisions of the Companies Act, 2013 and Rules made thereunder, the Board has carried out annual performance evaluation of its own performance, the directors individually as well the evaluation of the working of its Audit Committee, Nomination & Remuneration Committee and Stakeholders Relationship Committee, experience and expertise, performance of specific duties and obligations etc. were carried out. The Directors expressed their satisfaction with the evaluation process and outcome.

The performance of each of the non-independent directors was also evaluated by the independent directors at the separate meeting held of the Independent Directors of the Company.

CORPORATE SOCIAL RESPONSIBILITY:

In terms of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, every company with net worth of Rs. 500 Crores or more OR an annual turnover of Rs. 1000 Crores or more OR with a net profit of Rs. 5 Crores or more, during previous year is required to constitute a CSR Committee. Goldstar Power Limited does not fall in any of the above criteria during the year 2020-21. Therefore, it is not required mandatorily to carry out any CSR activities or constitute any Committees under provisions of Section 135 of the Act.

We also feel strongly about giving back to our community. We believe everybody deserves to be treated with dignity and respect, regardless of their personal circumstances, and offered the skills, knowledge and assistance they need to help themselves lead healthy and productive lives.

VIGIL MECHANISM FOR THE DIRECTORS AND EMPLOYEES:

Pursuant to Section 177(9) & (10) of the Companies Act, 2013, a Vigil Mechanism for directors and employees to report genuine concerns has been established, in order to ensure that the activities of the company and its employees are conducted in a fair and transparent manner by adoption of highest standards of professionalism, honesty and integrity and ethical behavior.

The Company has established a vigil mechanism through which Directors, employees and business associates may report unethical behavior, malpractices, wrongful conduct, fraud, violation of Companys code of conduct without fear of reprisal. The Company has set up a Direct Touch initiative, under which all Directors, employees, business associates have direct access to the Chairman of the Audit committee, and also to a three-member direct touch team established for this purpose. The direct touch team comprises one senior woman member so that women employees of the Company feel free and secure while lodging their complaints under the policy.

The Company ensures that genuine Whistle Blowers are accorded complete protection from any kind of unfair treatment or victimization. The vigil mechanism policy has also been uploaded in the website of the company at http://goldstarpower.com/wp-content/uploads/2018/05/Whistle-Blower Policy.pdf

RISK MANAGEMENT:

The Board of the Company has evaluated a risk management to monitor the risk management plan for the Company. The Audit Committee has additional oversight in the area of financial risks and controls. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The company has been following the principle of risk minimization as it is the norm in every industry. The Board has adopted steps for framing, implementing and monitoring the risk management plan for the company. The main objective of this policy is to ensure sustainable business growth with stability and to promote a proactive approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to risk management, in order to guide for decisions on risk related issues.

In todays Challenging and competitive environment, strategies for mitigating inherent risk in accomplishing the growth plans of the company are imperative. The Common risks inherent are: Regulations, Competition, business risk, technology obsolescence, long term investments and expansion of facilities. Business risk, inter alia, includes financial risk, political risk, legal risk etc., As a matter of policy, these risk are assessed and steps as appropriate are taken to mitigate the same.

INSURANCE:

All properties and insurable interests of the Company have been fully insured.

PARTICULARS OF LOANS. GUARANTEES OR INVESTMENTS UNDER SECTION 186:

The details of loans, guarantees or investment coveredunderthe provisions of section 186 of the Companies Act, 2013 are given in the Notes to the Financial Statements.

AUDITORS:

? STATUTORY AUDITORS:

The members of the company at their Annual General Meeting held on 25th September, 2019 had appointed M/s. Jain Chowdhary & Co., Chartered Accountants, Mumbai, (ICAI Firm Registration Number: 113267W) as Statutory Auditors of the Company for a term of 5(five) financial years

The Auditors Report for the financial year ended March 31, 21 forms part of this Annual Report and is attached to the Directors Report as "ANNEXURE-2" and same does not contain any qualification, reservation or adverse remark.

There have been no instances of fraud reported by the Auditors under Section 143(12) of the Companies Act, 2013.

? SECRETARIAL AUDITORS:

As required under provisions of section 204 of the Companies Act, 2013 and Rules framed thereunder, the Board has appointed the Secretarial Auditors of the Company, CS Purvi Dave, Partner, MJP Associates, Practicing Company Secretaries, for conducting the Secretarial Audit for the FY 2020-21.

Secretarial Audit Report in Form MR-3 issued by the Secretarial Auditor of the Company for the Financial Year ended on March 31, 2021 is attached to the Directors Report as "ANNEXURE-3".

Secretarial auditor has observed that the

Company had filed the intimation of Closure of Trading Window for quarter 30th September, 2020 was given late by 1 month and 4 days.

The Board would like to clarify that the delay was mainly occurred due to restricted working hours on account of corona pandemic, and there was no malafide intention for late disclosures.

? INTERNAL AUDIT:

In accordance with the provisions of Section 138 of the Companies Act, 2013 and Rules framed thereunder, your Company has appointed M/s. B. B. Gusnani & Associates, Chartered Accountants, Jamnagar, (ICAI Firm Registration Number 140785W) as the Internal Auditors of the Company for the Financial Year 2020-21

and takes their suggestions and recommendations to improve and strengthen the internal control systems.

? COST AUDIT:

The provisions of Section 148(1) of the Companies Act, 2013 and Rule 14 of the Companies (Audit and Auditors) Rules, 2014 and other applicable rules and provisions is not applicable on the Company. Therefore, no cost records have been maintained by the company.

COMPLIANCE WITH SECRETARIAL STANDARDS:

The Company has complied with all the applicable Secretarial Standards in the Financial Year 2020-21 as issued by the Institute of Company Secretaries of India (ICSI).

DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE (PREVENTION. PROHIBITION & REDRESSAL) ACT. 2013:

At Goldstar Power Limited, all employees are of equal value. There is no discrimination between individuals at any point on the basis of race, colour, gender, religion, political opinion, national extraction, social origin, sexual orientation or age.

At Goldstar Power Limited, every individual is expected to treat his/her colleagues with respect and dignity. This is enshrined in values and in the Code of Ethics & Conduct of Goldstar Power Limited. The Direct Touch (Whistle-Blower &Protection Policy) Policy provides a platform to all employees for reporting unethical business practices at workplace without the fear of reprisal and help in eliminating any kind of misconduct in the system. The Policy also includes misconduct with respect to discrimination or sexual harassment.

The Company also has in place "Prevention of Sexual Harassment Policy". This AntiSexual Harassment Policy of the Company is in line with the requirements of TheSexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. All employees (permanent, contractual, temporary and trainees) are covered under this policy.

An Internal Complaints Committee (ICC) is in place to redress complaints received regarding sexual harassment. The following is a summary of sexual harassment complaints received and disposed off during the year:

• No. of complaints received: Nil

• No. of complaints disposed off: NA

DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS:

The Company is well equipped with internal financial controls. The Company has continuous monitoring mechanism which enables the organization to maintain the same standards of the control systems and help them in managing defaults, if any, on timely basis because of strong reporting mechanisms followed by the Company.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

In Terms of the Regulation 34 read with Schedule V of the SEBI (LODR) Regulations 2015, Management Discussion and Analysis report has been separately furnished in the Annual Report and forms part of the Annual Report as "ANNEXURE-6".

EXTRACT OF ANNUAL RETURN

Extract of Annual Return in Form MGT-9 containing details as on Financial Year ended 31st March, 2021 [as required under Section 92(3) read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014] the extract of Annual Return for the Financial Year 2020-21 is available at the website of the Company at www.goldstarpower.com.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED IN SUB SECTION 1 OF SECTION 188 OF THE COMPANIES ACT. 2013:

During the year under review, contracts or arrangements entered into with the related party, as defined under section 2(76) of the Companies Act, 2013 were in the ordinary course of business on arms length basis. Details of the transactions pursuant to compliance of section 134(3)(h) of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014 are annexed herewith as per "ANNEXURE-1"

During the year the Company has not entered into any materially significant related party transactions which may have potential conflict with the interest of the Company at large. Suitable disclosures as required are provided in AS-18 which is forming the part of the notes to the Financial Statement.

In line with the requirements of the Companies Act, 2013 and SEBI Listing Regulation 2015, the Company has formulated a Policy on Related Party Transactions which is also available on Companys Website at http://goldstarpower.com/wp-content/uploads/2018/05/Related-Partv-Transactions-Policv.pdf

PARTICULARS OF EMPLOYEES AND REMUNERATION:

The Company has no employee in the Company drawing remuneration of more than Rs. 8,50,000/- per month or 1,20,00,000/- per annum, and hence the Company is not required to give information under Sub rule 2 and 3 of Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016.

The ratio of remuneration of each whole-time director and key managerial personnel (KMP) to the median of employees remuneration of the employee of the Company as per section 197(12) read with Rule 5 (1) (i) of the Companies (Appointment and Remuneration) Rules 2014 for the financial year 2020-21 forms part of this Board report as "ANNEXURE-4".

Additionally, the following details form part of Annexure-4 to the Boards Report:

• Remuneration to Whole Time Directors.

• Remuneration to Non-executive/ Independent Directors.

• Percentage increase in the median remuneration of employees in the financial year.

• Number of permanent employees on roll of the Company.

• The company did not allow any sweat equity shares & does not have employees stock option scheme.

DETAILS INRESPECT OF FRAUDS REPORTED BY AUDITORS OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT:

The Statutory Auditors or Secretarial Auditors of the Company have not reported any frauds to the Audit Committee or to the Board of Directors under Section 143(12) of the Companies Act, 2013, including rules made thereunder during the current Financial Year.

BOARD POILICIES AND CODE OF CONDUCTS:

A. Policy on Directors Appointment and Remuneration

The policy of the Company on directors appointment and remuneration, including the criteria for determining the qualifications, positive attributes, independence of a director and other matters, as required under sub section (3) of section 178 of the Companies Act, 2013 have been regulated by the nomination and remuneration committee and the policy framed by the company is annexed with the Board Report as "ANNEXURE-5" and available on our website, at www.goldstarpower.com

There has been no change in the policy since last fiscal. We affirm that the remuneration paid to the directors is as per the terms laid out in the Nomination and Remuneration Policy of the Company with the Nomination and Remuneration Committee of the Company.

B. Prevention of Insider Trading:

The Board of Directors has adopted the Insider Trading Policy in accordance with the Requirements of SEBI (Prohibition of Insider Trading) Regulations, 2015. The Insider Trading Policy of the Company lays down guidelines and procedures to be followed, and disclosures to be made while dealing with shares of the Company as well as consequences of violation. The Policy has been formulated to regulate, monitor and ensure reporting of deals by employees and to maintain the highest ethical standards of dealing in Companys Shares.

C. Other Board Policies and Conducts:

Following Board Policies have been approved and adopted by the Board, the details of which are available on the website of the company at www.goldstarpower.comand for the convenience given herein below:

Sr. Name of policy No Web link
1. Boards Diversity Policy http: / /goldstarpower.com /wp- content/uploads/2018/05/Board-Diversitv-Policy.pdf
2. Dividend Distribution Policy http://goldstarpower.com/wp- content/uploads/2018/05/Dividend-Distribution-
Policy.pdf
3. Related Party Transaction Policy http: / /goldstarpower.com/wp- content/uploads/2018/05/Related-Partv-Transactions-
Policy.pdf
4. Material Subsidiary http://goldstarpower.com/wp- content/uploads/2018/05/Material-Subsidiaries.pdf
5. Materiality of Events http: / /goldstarpower.com/wp- content/uploads /2018 /05/Materiality-of-Events.pdf
6. Preservation of Documents Policy http://goldstarpower.com/wp- content/uploads/2018/05/Preservation-of- Documents.pdf
7. Evaluation Policy http://goldstarpower.com/wp- content/uploads/2018/05/Evaluation-Policy.pdf
8. Whistle Blower Policy http: / /goldstarpower.com /wp- content/uploads /2018/05 /Whistle-Blower-Policy.pdf
9. Prevention of Sexual Harassment at Workplace http://goldstarpower.com/wp- content/uploads/2018/05/Prevention-of-Sexual-
Harrasement-at-Workplace.pdf
10. Web Archival Policy http: / /goldstarpower.com/wp- content/uploads /2018/05/Web-Archival-Policy.pdf
11. Code of Conduct for http://goldstarpower.com/wp-
prevention of Insider Trading content/uploads/2018/05/Insider-Trading-Policy.pdf
12. Terms & Conditions for Appointment of Independent Directors. http://goldstarpower.com/wp- content/uploads/2018/05/Appointment-Independent- Director.pdf
13. Payment to NonExecutive Directors http: / /goldstarpower.com/wp- content/uploads/2018/05/Payment-Non-Executive- Directors.pdf
14. Familiarization Programme for Independent Director http://goldstarpower.com/wp- content/uploads/2018/05/Familiarization- Programme-Independent-Director.pdf
15. Nomination & Remuneration Policy http: / /goldstarpower.com/wp- content/uploads/2018/05/Nomination-Remuneration- Policy.pdf
16. Code of Conduct for Directors and KMPs http://goldstarpower.com/wp- content/uploads/2018/05/Code-Conduct-Directors- KMP.pdf
17. Green Initiative with regard to Corporate Governance http://goldstarpower.com/wp- content/uploads/2018/05/Green-Initiative-Corporate- Governance.pdf
18. Insider Trading Policy with Amendments_20.03.2019 http: / /goldstarpower.com/wp- content/uploads/2018/05/Insider-Trading-Policy.pdf

SUBSIDIARIES ASSOCIATES AND JOINT VENTURES:

As at 31st March, 2021, the Company doesnt have any Subsidiary, Joint Venture or Associate Companies.

CORPORATE GOVERNANCE:

"Corporate Governance Practices Are Reflection of Value SystemsAnd which Invariably Includes our Culture, Policies and Relationships with our Shareholders"

Integrity and transparency are key factors to our governance practices to ensure that we achieve and will retain the trust of our stakeholders at all times. Corporate Governance is about maximizing Shareholders value legally, ethically and sustainably. At Goldstar, our Board exercises its fiduciary responsibilities in the widest sense of the term. Our disclosures seek to attain the best practices in the international corporate governance. We also endeavor to enhance long term shareholder value and respect- minority rights in all our business decisions.

As our company has been listed on SME EMERGE Platform of National Stock Exchange Limited (NSE), by virtue of regulation 15 (2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the compliance with the corporate governance provisions as specified in regulation 17 to 27 and clause B to (i) of sub regulation (2) of Regulation 46 and Para C, D and E of Schedule V relating to Corporate Governance Report, shall not apply to company listed on SME Exchange. Hence Corporate Governance Report does not form a part of this Board Report, though we are committed for the best corporate governance practices.

DISCLOSURE UNDER SECTION 164(2) OF THE COMPANIES ACT. 2013 IN RESPECT OF NON DISQUALIFICATION OF DIRECTORS:

The Company has received the disclosures in Form DIR-8 from its Directorsbeing appointed or reappointed and has noted that none of the Directors are disqualified under section 164(2) of the Companies Act, 2013 read with Rule 14(1) of the Companies (Appointment and Qualification of Directors) Rules, 2014 and Certificate for the same from the Practising Company Secretary is annexed as "ANNEXURE-7".

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS:

There were no significant and material orders issued against the Company by any regulating authority or court or tribunal which could affect the going concern status and Companys operations in future.

ELECTION OF SHRI MULIIBHAI PANSARA. CHAIRMAN OF GOLDSTAR. AS THE PRESIDENT OF THE GUJARAT BATTERY INDUSTRY ASSOCIATION

The Board is happy to share that the Federation of Indian Battery Association, amalgamating all the state level battery organizations of India on 12th June, 2021 elected Mr. Mulji Pansara (DIN: 00300722) as President of "GUJARAT BATTERY INDUSTRY ASSOCIATION"

Indias Battery manufacturing industry has recorded a growth of more than 25% in last year. Goldstar, considered as Indias leading manufacturing Company, having a fully intergraded unit and production facility at a single place under single control spreads over an area of approx. 125000 Sq.Ft. beneath its umbrella, Goldstar has gained eminence for manufacturing and delivering quality products under the flagship brand - "Goldstar". Since Companys inception in 1999 with sole intension, vision and impulsion of Shri Muljibhai, and Goldstar follows the same unshakable principles and solid values that anchored the organization firmly.

Shri Muljibhai is the founder and chairperson of the Gujarat Small Scale Battery Association and President of Federation of Indian Small-Scale Battery Association for West Zone. In the year 1982, the Battery Man of Gujarat, Shri. Muljibhai Pansara entered into battery business and he has been guiding light inspiring and leading the Goldstar to unmatched heights and has revolutionized the battery manufacturing industry through the Company.

PARTICULARS REGARDING CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION:

The information pertaining to Conservation of Energy, Technology Absorption, as required under Section 134(3) (m) of the Companies Act, 2013 read with Rule 5 of Companies (Accounts) Rules, 2014 as follows:

A. Conservation of Energy: -

1. The steps taken or impact on conservation of energy:

The Company applies strict control system to monitor day by day power consumption in an effort to save energy. The Company ensures optimal use of energy with minimum extent of wastage as far as possible.

2. The steps taken by the Company for utilizing alternate source of energy:

The Company has purchased land for Solar Plant and planning to use it as alternate source of energy.

3. Capital Investment on energy conservation equipment:

During the year under review, the Company has purchased a suitable land for setting up the Solar Plant for captive consumption purpose.

B. Technology Absorption:

1. The efforts made towards technology absorption:

The Company has not made any special effort towards technology absorption. However, company always prepared for update its factory for new technology.

2. The benefits derived like product improvement, cost reduction, product development or import substitution: Not Applicable

3. In case of imported technology (imported during the last three years reckoned from the beginning of the financial year): Not Applicable.

4. The details of technology imported: Not Applicable

5. The year of import: Not Applicable

6. Whether the technology been fully absorbed: Not Applicable

7. If not fully absorbed, areas where absorption has not taken place, and the reasons thereof: Not Applicable

8. The expenditure on Research and Development: Not Applicable FOREIGN EXCHANGE EARNINGS AND OUTGO:

Further, during the year under review, the Company has reported Foreign Exchange Earnings and Expenses as under:

PARTICULARS 2020-21 2019-20
Foreign Exchange Earnings 26,70,73,208.02 1,65,316,704.00
Foreign Exchange Outgo 1,24,30,437.00 30,54,066.00

DIRECTORS RESPONSIBILTY STATEMENT:

In terms of Section 134(5) of the Companies Act, 2013, in relation to the Audited Financial Statements of the Company for the year ended March 31, 2021, the Board of Directors hereby confirms that:

1. In the preparation of the annual accounts, the applicable accounting standards had been followed alongwith proper explanation relating to material departures;

2. The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year as on March 31, 2021 and of the profit of the company for that year;

3. The directors had taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

4. The directors had prepared the annual accounts of the company on a going concern basis; and;

5. Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and are operating effectively;

6. The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.

INVESTOR EDUCATION AND PROTECTION FUND (IEPF):

During the year under review, the provision of section 125(2) of the Companies Act, 2013 does not apply as the company was not required to transfer any amount to the Investor Education and Protection Fund (IEPF) established by Central Government of India.

CREDIT RATINGS:

Your Company being an SME Listed Company does not require to obtain credit rating for its securities. Though, Goldstar has received SMERA MSE 2from(Small and Medium Enterprise Ratings) on August 10, 2018 which is maintained till date. The rating indicates stable and positive outlook of the Company. Rating shows High Credit Worthiness in relation to other MSEs.

REGISTRAR AND SHARE TRANSFER AGENT INFORMATION:

M/S. LINK INTIME INDIA PRIVATE LIMITED

C-101, 247 Park, L.B.S Marg,

Vikhroli (West), Mumbai - 400 083,

Telephone Number: +91 22 4918 6000 Email: mumbai@linkintime.co.in Website: www.linkintime.co.in

INDUSTRIAL RELATIONS:

The Company maintained healthy, cordial and harmonious industrial relations at all levels. The enthusiasm and unstinting efforts of employees have enabled the Company to remain at the leadership position in the industry. It has taken various steps to improve productivity across organization.

ACKNOWLEDGEMENTAND APPRECIATION:

Your Directors would like to express their appreciation for assistance and cooperation received from the Shareholders, State Governments, Local authorities and Companys Bankers for the assistance co-operation and encouragement they extended to the Company.

Your Directors also wish to place on record their sincere thanks and appreciation for the continuing support and unstinting efforts of investors, vendors, dealers, business associates and employees in ensuing and excellent all around operational performance.

By Order of the Board of Directors
Date : 03.09.2021 For, GOLDSTAR POWER LIMITED,
Place : Jamnagar
Sd/-
MULJIBHAI PANSARA
Chairman & Director
(DIN:00300722)