Hisar Metal Industries Ltd Directors Report

Dear Members,

Your Directors are pleased to present 36 th Annual Report and the Companys audited financial statement for the financial year ended March 31, 2026.

FINANCIAL RESULTS

The Companys financial performance for the year ended March 31, 2026 is summarized below:

(Rs. in Lakhs)

FINANCIAL RESULTS	2025-26	2024-25
Sales/Others receipts	26328	24556
Profit before depreciation and Taxation	743	700
Less: depreciation	287	273
Profit after depreciation	456	427
Less: Provision for Taxation
Current Year	90	106
Deferred Tax	28	4
Previous Year Tax	-	-1
Profit after Taxation	338	318
Other comprehensive income, net of tax ( Items that will not be reclassified to profit or loss)	8	-
Total Comprehensive income	346	318
Add: Profit brought forward	2434	3670
Profit available for appropriation	2780	3988
Dividend	54	54
Transfer To General Reserve	-	1500
Surplus carried to Balance Sheet	2726	2434

COMPANYS BUSINESS GROWTH AND PROSPECTS

The total income for the current year has remained to Rs 26328 Lakhs as against previous year of Rs. 24556 Lakhs, whereas the profit after tax has remained to Rs. 338 Lakhs as against previous year of Rs. 318 Lakhs.

DIVIDEND

Your Directors have recommended a dividend of 10% on share of face value of Rs. 10 each i.e. Rs. 1/- per share for the financial year ended on March 31, 2026.

SHARE CAPITAL

The paid up Equity Share Capital as on 31st March, 2026 was Rs. 5,40,00,000/-. During the year under review the company has not issued any shares or convertible instruments.

TRANSFER TO RESERVES

Your Directors have not recommended any amount to transfer to general reserve.

CHANGE IN NATURE OF BUSINESS

There was no change in nature of business during the year under review.

FIXED DEPOSITS

Your Company has not accepted any deposit within the meaning of Section 73 of the Companies Act, 2013, read with the Companies (Acceptance of Deposits) Rule, 2014.

INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

In compliance with the provisions of Sections 124 and 125 of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules) as amended from time to time, the Company has deposited a sum of Rs. 59148/- into the specified bank account of the IEPF, Government of India, towards unclaimed/unpaid dividend amount for the financial year ended March 31, 2018.

As per the said Rules, the corresponding equity shares in respect of which Dividend remains unclaimed/unpaid for seven consecutive years or more, are required to be transferred to the Demat Account of the IEPF Authority. During the year under review, the Company has transferred 3075 underlying Equity Shares to the Demat Account of the IEPF Authority, in compliance with the aforesaid Rules.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Company has not given any loans or guarantees coved under the provisions of Section 186 of the Companies Act, 2013.

The details of the investments made by the Company, if any, are given in the notes to the financial statements. REVISION OF FINANCIAL STATEMENTS OR BOARDS REPORT

The Company has not made any modification or alteration in its Financial Statement / Board Report in respect of last Four Years.

CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

All contracts/arrangements/transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arms length basis. During the year, the Company has not entered into any contract/arrangement/transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions.

The Policy on materiality of related party transactions may be accessed on the Companys website at the link: http://www.hisarmetal.com

Your Directors draw attention of the members to Note 31 to the financial statement which sets out related party disclosures.

INTERNAL FINANCIAL CONTROL

Your Company has adequate internal control systems commensurate with its size and operations, although not documented. The Company regularly gets its accounts audited from internal auditor.

VIGIL MECHANISM/WHISTLE BLOWER POLICY

The Company has a Vigil Mechanism & Whistle Blower Policy to report genuine concerns or grievances. The Vigil Mechanism & Whistle Blower Policy has been posted on the Companys website at http://www. hisarmetal.com.

RISK MANAGEMENT

The Company has laid down procedures to inform Board members about the risk assessment and minimization procedures. These procedures are periodically reviewed to ensure that executive management controls risk through means of a properly defined framework. The Company has also devised a Risk Management Policy for identification of elements of risks and procedures for reporting the same to the Board.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS & OUTGO

The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under the Act, are provided in Annexure A to this Report.

DIRECTORS RESPONSIBILITY STATEMENT

In accordance with Section 134 (5) of Companies Act, 2013 the Board of Directors confirms that:

a) in the preparation of the annual accounts for the year ended March 31, 2026 the applicable Indian accounting standards (IND-AS) read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same;

b) the Directors have 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 and of the profit and loss of the Company for that period;

c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on a going concern basis;

e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

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

RELATED PARTY TRANSACTIONS

The Company has formulated a Policy on Related Party Transactions and manner of dealing with related party transactions which is available on the Companys website. All related party transactions entered into during FY 2025-26 were on an arms length basis and in the ordinary course of business. No material related party transactions were entered into during the financial year by the Company. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Act in Form AOC-2 is not applicable to the Company for FY 2025-26.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with the provisions of the Act and the Articles of Association of the Company, Mrs. Anubha Tayal (DIN-00081391) and Mr. Abhiram Tayal (DIN 00081453) Directors of the Company, retire by rotation at the ensuing Annual General Meeting and being eligible have offered themselves for re-appointment.

Further pursuant to the recommendation of the Nomination & Remuneration Committee and approved by the Board of Directors in their respective meeting held on 30th May 2026, Mr. Manish Jain (DIN: 00300805) & Mr. Shreyaskar Chaudhary (DIN: 00059059) have been appointed as Additional Director designated as NonExecutive Independent Director on the Board of the Company to hold office of Independent Director for a term of five consecutive years commencing from May 30, 2026 upto May 29, 2031 (both days inclusive) subject to approval of shareholders.

Further Mr. Rajender Kumar Leekha (DIN: 03597751) and Mr. Sanjay Kumar Jain (DIN: 02817520) have resigned from directorship of the company on 30th May 2026 because they have not qualified online proficiency test which was mandatory for them and due to pre-occupation in my their own business/profession. The Board conveyed thanks to them for their fruitful association with the company.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under the Act and Regulation 16 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. All the Directors of the Company have confirmed that they are not disqualified from being appointed as directors in terms of Section 164 of the Companies Act, 2013. In terms of Regulation 25(8) of the Listing Regulations, the Independent Directors have confirmed that they are not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair or impact their ability to discharge their duties with an objective independent judgment and without any external influence. Further, declaration on compliance with Rule 6(3) of the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended by Ministry of Corporate Affairs (MCA) Notification dated October 22, 2019, regarding the requirement relating to enrollment in the Data Bank created by MCA for Independent Directors, and had been received from all Independent Directors.

The Company has devised a policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors which includes criteria for performance evaluation of the Non-Executive Directors and Executive Directors. The evaluation of all the Directors and the Board as whole was conducted based on the criteria and framework adopted by the Board. The evaluation process has been explained in the Corporate Governance Report section in this Annual Report.

The policy of the Company on Directors appointment and remuneration, adopted by the Board, is appended as Annexure-B to the Boards report.

AUDIT COMMITTEE

The Audit Committee consists of three Directors, out of which two are the Independent Directors, namely Mr. Mr. Ritesh Mohan Jindal (Chairman), Mr. Rajender Kumar Leekha and Mrs. Anubha Tayal as other members. All the recommendations made by the Audit Committee were accepted by the Board. Other Details are disclosed in the Corporate Governance Report.

DETAIL OF COMMITTEE MEMBERS Audit Committee:

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Mr. Ritesh Mohan Jindal (DIN- 10507554)	Chairperson	Non-Executive Independent Director
2.	Mr. Rajender Kumar Leekha (DIN-03597751)	Member	Non- Executive Independent Director
3.	Mrs. Anubha Tayal (DIN- 00081391)	Member	Non- Executive Director

Stakeholders Relationship Committee:

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Mr. Ritesh Mohan Jindal (DIN- 10507554)	Chairperson	Non- Executive Independent Director
2.	Mr. Sandeep Garg (DIN: 10666936)	Member	Non- Executive Independent Director
3.	Mrs. Anubha Tayal (DIN- 00081391)	Member	Non- Executive Director

Nomination and Remuneration Committee:

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Mr. Sandeep Garg (DIN: 10666936)	Chairperson	Non- Executive Independent Director
2.	Mr. Rajender Kumar Leekha (DIN- 03597751)	Member	Non- Executive Independent Director
3.	Mr. Ritesh Mohan Jindal (DIN- 10507554)	Member	Non- Executive Independent Director

Corporate Social Responsibility Committee:

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Mr. Sandeep Garg (DIN: 10666936)	Chairperson	Non- Executive Independent Director
2.	Mr. Rajender Kumar Leekha (DIN- 03597751)	Member	Non- Executive Independent Director
3.	Mrs. Anubha Tayal (DIN- 00081391)	Member	Non- Executive Director

Consequent on resignation of Mr. Rajender Kumar Leekha (DIN: 03597751) and Mr. Sanjay Kumar Jain (DIN: 02817520) Audit Committee, Nomination and Remuneration Committee & Corporate Social Responsibility Committee have been reconstituted as under:- Audit Committee:

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Mr. Ritesh Mohan Jindal (DIN- 10507554)	Chairperson	Non- Executive Independent Director
2.	Mr. Manish Jain (DIN- 00300805)	Member	Non- Executive Independent Director
3.	Mrs. Anubha Tayal (DIN- 00081391)	Member	Non- Executive Director

Nomination and Remuneration Committee:

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Mr. Sandeep Garg (DIN: 10666936)	Chairperson	Non- Executive Independent Director
2.	Mr. Manish Jain (DIN- 00300805)	Member	Non- Executive Independent Director
3.	Mr. Ritesh Mohan Jindal (DIN- 10507554)	Member	Non- Executive Independent Director

Corporate Social Responsibility Committee:

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Mr. Sandeep Garg (DIN: 10666936)	Chairperson	Non- Executive Independent Director
2.	Mr. Manish Jain (DIN- 00300805)	Member	Non- Executive Independent Director
3.	Mrs. Anubha Tayal (DIN- 00081391)	Member	Non- Executive Director

BOARD AND COMMITTEE MEETINGS

Four meetings of the Board of Directors were held during the year. The details of the composition of the Board and its Committees and the number of meetings held and attendance of Directors at such meetings are provided in the Corporate Governance Report, which forms part of the Annual Report.

STATUTORY AUDITORS

M/s. Ram Sanjay & Co., Chartered Accountants, were appointed as Statutory Auditor of the Company at 32 nd Annual General Meeting held on September 23, 2022 to hold office till the conclusion of the 37 th Annual General Meeting.

The Auditors Report does not contain any qualification, reservation or adverse remark.

SECRETARIAL AUDITORS

Ms. Anju Jain, the Practicing Company Secretary having Certificate of Practice No. 2728, has been appointed as the Secretarial Auditor of the Company, pursuant to the provisions of Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 204 of the Companies Act, 2013 and rules made thereunder to carry out Secretarial Audit for consecutive 5 years, i.e. from the FY.2025-26 to FY.2029-30 in the AGM held on 19th September 2025.

The Report of the Secretarial Audit Report for the financial year 2025-26 is annexed to this Board of Directors Report as Annexure-C.

COST RECORDS

Maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is required by the Company and accordingly such accounts and records are made and maintained.

COST AUDITORS

The Board has appointed M/s. Naveen Gupta & Co., Cost Accountants having Firm Registration No. 100920

with the Institute of Cost Accountants of India, as Cost Auditor of the Company for conducting Cost Audit of the Company for the financial year 2026-27.

INTERNAL AUDITORS

Pursuant to the provisions of Section 138 of the Act and the Companies (Accounts) Rules, 2014, on the recommendation of the Audit Committee, Ms. Ritu Aggarwal has appointed by the Board of Directors to conduct internal audit for the financial year 2026-27.

ANNUAL RETURN

As provided under Section 92(3) & 134(3)(a) of the Act, Annual Return for FY 2025-26 is uploaded on the website of the Company and can be accessed at https://www.hisarmetal.com/annual-returns.html

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

There was no such employee of the Company who is covered under provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in Annexure D to this Report.

CORPORATE GOVERNANCE

Your Company has complied with all the mandatory provisions of corporate governance of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A separate report on Corporate Governance along-with Auditors certificate in this regard forms part of the Annual Report as Annexure E to the Boards report.

MANAGEMENTS DISCUSSION AND ANALYSIS REPORT

Managements Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented in a separate section forms part of the Annual Report as Annexure F to the Boards report.

Annual Report on Corporate Social Responsibility (CSR) activities in accordance with Rule 8 of Companies (CSR Policy) Rules, 2014:

Refer Annexure G.

COMPLIANCE OF GUIDELINES OF SEBI/STOCK EXCHANGE

We have duly complied with all the applicable guidelines issued by SEBI/Stock Exchange.

SECRETARIAL STANDARDS OF ICSI

The Directors have devised proper systems and processes for complying with the requirements of applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems were adequate and operating effectively.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF THE REPORT

Except as disclosed elsewhere in this report, no material changes and commitments which could affect the Companys financial position have occurred between the end of the financial year and date of this report. INDUSTRIAL RELATIONS

Industrial relations continued to be cordial during the year under review.

Policy on Sexual Harassment:

The Company has zero tolerance towards sexual harassment at the workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules there under. The Company has complied with provisions relating to the constitution of Internal Complaints Committee under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the Financial Year 2025-26, there were no cases reported under the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

GENERAL

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

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

2. The Company has not constituted Employees Stock Option Scheme (ESOS) and not issued any share to its employees under the said Scheme or any other scheme (including sweat equity shares) during the financial year.

3. Company does not have any subsidiary.

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companys operations in future.

ACKNOWLEDGEMENT

The Board of Directors thanks and deeply acknowledge the co-operation, assistance and support provided by all the stakeholders viz., workers, shareholders, bankers, customers, dealers, vendors, Government and Regulatory agencies.

For and on behalf of the Board of Directors

Date: May 30, 2026	(AbhiramTayal)	(Karan Dev Tayal)
Place : Hisar	Managing Director	Whole-time Director
	DIN:00081453	DIN:00181214