Hoac Foods India Ltd Directors Report

Dear Shareholders,

Your Directors have great pleasure in presenting to you the 06th Annual Report on the affairs of the Company together with the Audited Accounts for the Financial year ended 31st March, 2024

We would like to start by thanking all of our investors and stakeholders for their continued support and faith in us; you are the reason for our successful IPO. In the years ahead, we aspire to build on our legacy and reach major milestones together.

The Board of Directors hereby submits the report of the business and operations of HOAC FOODS INDIA LIMITED ("the Company"), along with the audited financial statements, for the financial year ended March 31, 2024 along with the reports of the Auditors thereon.

FINANCIAL YEAR 2023-24 AT GLANCE

In Hundred

Particulars	F.Y. 2023-24	F.Y. 2022-23
Revenue from Operations	15,62,940.05	12,10,094.00
Other Income	0.00	10,554.96
Total Income	15,62,940.05	12,20,648.96
Less: Total Expenses before Depreciation, Finance Cost and Tax	13,81,225.28	10,95.324.78
Profit before Depreciation, Finance Cost and Tax	1,81,714.77	1,25,324.18
Less: Depreciation	12,933.74	18,251.76
Less: Finance Cost	32,500.50	25,548.51
Profit Before Extraordinary & Exceptional Items and Tax	1,36,280.54	81,523.91
Less: Extraordinary & Exceptional Items	-
Profit before tax	1,36,280.54	81,523.91
Less: Current Tax	37,602.00	26,314.80
Less: Earlier Years Tax	455.82	2721.96
Less: Deferred tax Liability (Asset)	-4,130.71	2,020.35
Profit after Tax	1,02,353.42	50,466.80

FINANCIAL PERFORMANCE

During the year under review, the revenue from operation of the Company was stood at INR 15,62,940.05 (In Hundred) for the period March 31, 2024. Profit before Tax and Profit after Tax for the period April 01, 2023 to March 31, 2024 stood at INR 1,36,280.54 (In Hundred) and INR 1,02,353.42 (In Hundred) respectively.

Your Directors are committed to achieve higher revenues and profits for its stakeholders in the coming year and hence are in the continuous process of developing new products and tailor made services for its customers

The above figures are extracted from the Financial Statements prepared in accordance with generally accepted accounting Principles in India. The applicable mandatory Accounting Standards as amended specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 of India have been followed in preparation of these financial statements and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), as amended.

DIVIDEND

The Company is in the growth phase and expanding organically as well as inorganically. In order to save the profit earned during the year for future expansion of the Company, your directors do not recommend any dividend for the financial year ended March 31, 2024.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

There was no amount outstanding to be an Unclaimed Dividend to Investor Education and Protection Fund during the FY 2023-2024.

TRANSFER TO GENERAL RESERVE

Your Directors do not propose to transfer any amount to the General Reserves.

CHANGE IN NAME OF THE COMPANY

Our Company was originally incorporated as a private limited company on March 13, 2018 under the Companies Act, 2013 in the name and style of "HOAC MP Atta Spices Manufacture Private Limited" bearing Corporate Identification Number U15120DL2018PTC330739 issued by the Registrar of Companies, Delhi.

Further, the companys name was changed to "HOAC Foods India Private Limited" vide Fresh Certificate of Incorporation dated November 03, 2021 issued by Registrar of Companies, Delhi.

Subsequently, our Company was converted into public limited company pursuant to a shareholders resolution passed at an Extra-Ordinary General Meeting held on October 13, 2023, and name of our Company was changed to "HOAC Foods India Limited" and a fresh Certificate of Incorporation dated October 30, 2023 was issued by Registrar of Companies, Delhi

During the year under review, pursuant to special resolutions passed by the Members of the Company, in their extra-ordinary general meeting held on October 13, 2023, decided to convert the Company from "Private Limited" to "Public Limited". The application was submitted to the Registrar of Companies, Delhi and Registrar has vide their Certificate dated October 30, 2023 issued new certificate of incorporation consequent to conversion of the Company from "Private Limited" to "Public Limited".

INITIAL PUBLIC ISSUE AND LISTING

The Company has successfully completed the Initial Public Offer (IPO). In the IPO, 11,55,000 Equity Shares of Rs.10/- each was offered by the Company for subscription at an issue price of Rs 48.00/- per share aggregating to Rs 554.40 Lakhs which was oversubscribed by 1994 times. The issue was opened for subscription on May 16, 2024 and closed on May 21, 2024. The Board has allotted 11,55,000 Equity Shares of Rs 48/- each to the successful applicant on May 22, 2024. The equity shares of the HOAC Foods India Limited (Formerly known as HOAC Foods India Private Limited) got listed on May 24, 2024 on the NSE EMERGE.

As on March, 31, 2024 the Authorised Share Capital of the Company is Rs 400.00 Lakhs divided into 40,00,000 Equity Shares of 10/- each. The Paid up Share Capital of the Company is 268.821 Lakhs divided into 26,88,210 Equity Shares of 10/- each.

DEMATERIALISATION OF SHARES:

During the year under review, the Company has entered into tripartite agreements for dematerialization of equity shares with the KFIN Technologies Limited National Securities Depository Limited and Central Depository Services (India) Limited. As on March 31, 2024 the share of the Company held in demat form represents 100% of the total issued and paid-up capital of the Company.

The Company ISIN No. is INE0S6S01017 M/s. KFIN Technologies Limited is the Registrar and Share Transfer Agent of the Company

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

No Material Changes and commitments affecting the financial position of the Company, have occurred between the end of the financial year of the company to which the financial statements relate and the date of this Directors Report.

ALTERATION OF MEMORANDUM AND ARTICLES OF ASSOCIATION

The Authorized Share Capital of the Company has been increased, and consequently, the capital clauses of the Memorandum of Association were amended by the shareholders;.

SI. No.	Date of Extra ordinary General Meeting	Increased in Authorized Capital
		From	To
1	September 18, 2023	50,00,000	4,00,00,000

The Name of the Company has changed, and consequently, the Name Clause of the Memorandum of Association and Article of Associations were amended by the shareholders

SI. No.	Date of Extra ordinary General Meeting	Name Change
		From	To
1	October 13, 2023	HOAC Foods India Private Limited	HOAC Foods India Limited

SUBSIDARIES

During the period under review, the Company does not have any Subsidiary Company.

Other Ventures/Associates

The Company does not have any associate company, nor has it entered into a joint venture with any other company

SHARE CAPITAL

During the year under review, following changes were carried out in the authorized and paid-up share capital of the Company.

Authorized Capital

The Authorized share Capital of the Company, as at closure of financial year 2023-24, was INR 4,00,00,000 divided into 40,00,000 Equity Shares of INR 10.00 each.

Issued, Subscribed & Paid-up Capital

Issued, Subscribed & Paid-up share Capital of the Company as at closure of financial year 2023-24, was INR 2,68,82,100 divided into 26,88,210 Equity Shares of INR 10 each.

During the year under review, following changes took places in paid-up capital of the Capital:

a. Buy Back of Securities:

Company has not bought back any of its securities during the year under review.

b. Sweat Equity:

Company has not issued any Sweat Equity Shares during the year under review.

c. Rights Issue:

Company has not issued any Right issue of shares during the year under review.

f. Bonus Issue:

The company has issued 23,71,950 equity shares of Rs. 10/- each through Bonus allotment during the year under review.

e. Private Placement:

During the year under review, the Company issued 99,260 Equity Shares of face value of Rs.10/- each along with premium of Rs. 75/- each through conversion of loan into equity

e. IPO (Initial Public Offer):

Post above capital structure upon incorporation, the Company came up with an Initial Public Offer of 11,55,000 equity shares of INR 10.00 each at issue price of INR 48.00 per equity shares. The said 11,55,000 equity shares were successfully subscribed by the public and Company has made allotment of equity shares on May 22, 2024.

The entire Paid-up Equity shares of the Company was then listed at Emerge Platform of National Stock Exchange of India Limited.

Issued, Subscribed & Paid-up share Capital of the Company, as on the date of this report, stood at INR 3,84,32,100 divided into 38,43,210 Equity Shares of INR 10 each

BOARD MEETINGS

Regular meetings of the Board are held, inter-alia, to review and discuss the various businesses that require the approval of the Board. Additional Board meetings are convened, as and when required, to discuss and decide on various business policies, strategies and other businesses. The Board meetings are generally held at registered office of the Company.

During the year under review, Board of Directors of the Company met 23 (Twenty three) times, viz

Month	Dates
April 2023	21-04-2023
May 2023	-
June 2023	01-06-2023
July 2023	08-07-2023
August 2023	01-08-2023, 31-08-2023
September 2023	05-09-2023, 18-09-2023, 22-09-2023, 27-09-2023
October 2023	04-10-2023, 05-10-2023, 07-10-2023, 09-10-2023,11-10-2023,12-10-2023,25-102023
November 2023	01-11-2023, 02-11-2023, 27-11-2023
December 2023	-
January 2024	15-01-2024
February 2024	15-02-2024, 21-02-2024
March 2024	18-03-2024

The gap between two consecutive meetings was not more than one hundred and twenty days as provided in section 173 of the Act.

ATTENDANCE OF DIRECTORS AT THE BOARD MEETINGS

As per standard 9 of the Secretarial Standard on Meetings of the Board of Directors (SS-1) issued by the Institute of Company Secretaries of India (ICSI), the attendance of Directors at Board meetings held during the financial year 2023-24 are as under:

SI. No.	Name of Director	Board Meeting
1	Rambabu Thakur	23
2	Gaytri Thakur	23
3	Yashwant Thakur	08
4	Mukesh Garg	08
5	Mamta	06

GENERAL MEETING

During the year under review, the following General Meeting were held:

SI. No.	Type of Meeting	Date of Meeting	Total Number of members entitled to date attend meeting	Attendance
				Number of members Attended	% of attendance
1.	Extra- Ordinary General Meeting	August 01, 2023	2	2	100
2.	Extra- Ordinary General Meeting	September 18, 2023	2	2	100
3.	Annual General Meeting	September 30, 2023	2	2	100
4.	Extra- Ordinary General Meeting	October 13, 2023	7	7	100
5.	Extra- Ordinary General Meeting	November 02, 2023	7	7	100
6.	Extra- Ordinary General Meeting	January 17, 2024	7	7	100

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL Constitution of Board

The composition of Board complies with the requirements of the Companies Act, 2013 ("Act"). Further, in pursuance of Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), the Company is exempted from requirement of having composition of Board as per Regulation 17 of Listing Regulations.

None of the Directors of Board is a member of more than ten Committees or Chairperson of more than five committees across all the Public companies in which they are Director. The necessary disclosures regarding Committee positions have been made by all the Directors.

None of the Director of the Company is serving as a Whole-Time Director in any Listed Company and is holding position of Independent Director in more than 3 Listed Company. Neither any of the Director of the Company is holding position as Director in more than 7 listed entities nor any of the Director of the Company serve as Independent Director in more than 7 listed entities.

The Board of the Company comprises Five Directors who have wide and varied experience in different disciplines of corporate functioning. The present composition of the Board consists of One Managing Director, One Executive Director, one non- Executive Director and Two Non-Executive Independent Directors, one among them is a women director.

Retirement by Rotation

In accordance with the provisions of Section 152(6) of the Companies Act, 2013, read with the Articles of Association of the Company, at least 2/3rd of the total number of Directors of a public company shall be liable to retire by rotation and 1 /3rd of such Directors shall retire by rotation at every AGM; However, "Independent Directors" are out of the ambit of retiring by rotation.

Mrs. Gaytri Thakur (DIN: 08084214) retires by rotation in the ensuing AGM and being eligible, offers herself for re-appointment. A resolution seeking shareholders approval for her re- appointment, along with other required details forms part of the Notice of the AGM.

During the year under review, following changes took place in the constitution of the Board of Directors

Name	Date of Change	Date of Approval by the Board	Date of Approval by the Shareholders	Nature of Change
Rambabu Thakur	12-03-2018	-	-	Appointment as First Director
Gaytri Thakur	12-03-2018	-	-	Appointment as First Director
Rambabu Thakur	02-11-2023	02-11-2023	02-11-2023	Change in Designation to Managing Director.
Yashwant Thakur	12-10-2023	12-10-2023	02-11-2023	Appointed as Additional NonExecutive Director and further regularized as Non-Executive Director
Mukesh Garg	12-10-2023	12-10-2023	02-11-2023	Appointed as Additional NonExecutive Independent Director and further regularized as NonExecutive Independent Director
Mamta	01-11-2023	01-11-2023	02-11-2023	Appointed as Additional NonExecutive Independent Director and further regularized as NonExecutive Independent Director

KEY MANAGERIAL PERSONNEL

In accordance with Section 203 of the Companies Act, 2013, during the year under review, the Company has appointed Mr. Rambabu Thakur as Managing Director (w.e.f. November 02, 2023) of the Company, Mr. Manish

Sharma as Chief Financial Officer (w.e.f. November 01, 2023) of the Company, Mr. Patterson Thomas as Company Secretary and Compliance Officer (w.e.f. October 25, 2023) of the Company who subsequently resigned from his post (w.e.f. January 13, 2024), Ms. Bhawna Agarwal was appointed as Company Secretary and Compliance Officer (w.e.f. January 15, 2023) who are acting as Key Managerial Personnel in accordance with Section 203 of the Companies Act, 2013.

As on date of this report, the Company has Mr. Rambabu Thakur as Managing Director of the Company, Mr. Manish Sharma as Chief Financial Officer of the Company and Ms. Bhawna Agarwal as Company Secretary and Compliance Officer who are acting as Key Managerial Personnel in accordance with Section 203 of the Companies Act, 2013.

INDEPENDENT DIRECTORS

In terms of Section 149 of the Companies Act, 2013 and rules made there under, the Company had two NonExecutive Independent Directors in line with the Companies Act, 2013. Further, both the Independent Directors of the Company had registered themselves in the Independent Directors Data Bank.

The terms and conditions of appointment of Independent Directors and Code for Independent Director are incorporated on the website of the Company at www.hoacfoodsindia.com.

DECLARATION BY INDEPENDENT DIRECTOR

The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013 that they meet the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and the rules made thereunder and Listing Regulations.

All the Independent Directors of the Company have registered themselves with the Indian Institute of Corporate Affairs ("IICA"). Further, as per the declarations received, all the Independent Directors of Company have either passed or were exempted to clear online proficiency test as per the first proviso to Rule 6(4) of the MCA Notification dated October 22, 2019 and December 18, 2020

Accordingly, the Company has taken on record, the Statement of Declaration of Independence, as submitted by all the Independent Directors.

In the opinion of the Board of Directors, all Independent Directors of the Company fulfils the conditions specified in the Act and Rules made thereunder

FAMILIARISATION PROGRAMMES

The Company familiarizes its Independent Directors on their appointment as such on the Board with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, etc. through familiarization programme. The Company also conducts orientation programme upon induction of new Directors, as well as other initiatives to update the Directors on a continuing basis. The familiarisation programme for Independent Directors is disclosed on the Companys website www.hoacfoodsindia.com

COMMITTEES OF BOARD

Pursuant to an IPO, in addition to the applicable provisions of the Companies Act, 2013 in respect to Corporate Governance, provisions of the SEBI Listing Regulations are also applicable on the Company.

Further, the requirement specified in regulations 17 to, 27 and clauses (b) to (i) of sub regulation (2) of regulation 46 and para C, D and E of Schedule V is not applicable to the Company, although we require to comply with requirement of the Companies Act, 2013 wherever applicable. Company has complied with the corporate governance requirement, particularly in relation to appointment of independent directors including woman director on the Board and also constitution of an Audit Committee, Stakeholders Relationship Committee and Nomination and Remuneration Committee. Board of the Company functions either on its own or through committees constituted thereof, to oversee specific operational areas.

During the year under review, Company has constituted the Audit Committee, Nomination & Remuneration Committee and Stakeholder Relationship Committee vide Board Resolution dated December 07, 2023:

1. Audit Committee

2. Nomination and Remuneration Committee

3. Stakeholders Relationship Committee

Composition of Committee, Meeting and Attendance of each Member at Meetings Audit Committee

The Audit Committee of the Company is constituted in line with the provision of Section 177 of the Companies Act, 2013. The Audit Committee is constituted in line to monitor and provide effective supervision of the managements financial reporting process, to ensure accurate and timely disclosures, with the highest level of transparency, integrity, and quality of Financial Reporting

The quorum for the meeting shall be one third of total members of the Audit Committee or Two, whichever is higher, subject to minimum two Independent Director shall be present at the meeting.

During the year under review, Audit Committee of the Company met 01 (One) time, viz. 15-01-2024.

The composition of the Committee and the details of meetings attended by its members are given below:

Name of Members	Category	Designation in Committee	Number of meetings during the financial year 2023-24
			Held	Eligible to attend	Attended
Mukesh Garg *	Independent Director	Chairperson	01	01	01
Yashwant Thakur*	Non-Executive Director	Member	01	01	01
Mamta*	Independent Director	Member	01	01	01

Company Secretary and Compliance Officer of the Company act as the secretary of the Committee.

2. Nomination and Remuneration Committee:

The Nomination and Remuneration Committee of the Company is constituted with the provision of Section 178 of the Companies Act, 2013. The Nomination and Remuneration Committee recommends the appointment of Directors and remuneration of such Directors.

The level and structure of appointment and remuneration of all Key Managerial personnel and Senior Management Personnel of the Company, as per Remuneration policy, is also overseen by this Committee

During the year under review, Nomination and Remuneration Committee of the Company met 01 (One) time, viz 15-01-2024.

The composition of the Committee and the details of meetings attended by its members are given below:

Name of Members	Category	Designation in Committee	Number of meetings during the financial year 2023-24
			Held	Eligible to attend	Attended
Mukesh Garg *	Independent Director	Chairperson	01	01	01
Yashwant Thakur*	Non-Executive Director	Member	01	01	01
Mamta*	Independent Director	Member	01	01	01

Company Secretary and Compliance Officer of the Company act as the secretary of the Committee. Stakeholders Relationship Committee

The Company has a Stakeholders Relationship Committee of Directors in compliance with provisions of the Companies Act, 2013 to look into the redressal of complaints of investors such as transfer or credit of shares, non-receipt of dividend/notices/annual reports, etc.

During the year under review, Stakeholders Relationship Committee of the Company met 01 (One) time, viz 15-01-2024. A total of 01 (one) Stakeholders Relationship Committee Meeting were held post Listing of the Company.

The composition of the Committee during the year and the details of meetings attended by its members are given below:

Name of Members	Category		Designation in Committee		Number of meetings during the financial year 2023-24
					Held		Eligible to attend		Attended
Mukesh Garg *	Independent Director		Chairperson		01		01		01
Yashwant Thakur*	Non-Executive Director		Member		01		01		01
Mamta*		Independent Director		Member		01		01		01

Company Secretary and Compliance Officer of the Company act as the secretary of the Committee.

POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION

The Board, based on the recommendation of the Nomination and Remuneration Committee, has framed a policy for the selection and appointment of Directors and Senior Management Personnel and their remuneration.

The Companys policy relating to the Directors appointment, payment of remuneration and discharge of their duties is available on the website of the Company at https://www.hoacfoodsindia.com/policies.

BOARD EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and the corporate governance requirements as prescribed by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 ("SEBI Listing Regulations") peer evaluation of all Board members, annual performance evaluation of its own performance, as well as the evaluation of the working of Boards Committees was undertaken.

The following evaluation process were followed:

a. Evaluation Criteria

This evaluation is led by the Chairman of the Nomination and Remuneration Committee with a specific focus on the performance and effective functioning of the Board and its Committees. The evaluation process, inter alia, considers attendance of Directors at Board and committee meetings, acquaintance with business, communication inter se board members, the time spent by each of the Board members, core competencies, personal characteristics, accomplishment of specific responsibilities and expertise.

b. Performance Evaluation of the individual directors including Independent Directors

The Chairman of the Nomination and Remuneration Committee conducted the evaluation process, inter alia, based on attendance of Directors at Board and committee meetings, acquaintance with business, communication inter se board members, the time spent by each of the Board members, core competencies, personal characteristics, accomplishment of specific responsibilities and expertise.

The report on the performance evaluation of the Individual Directors was reviewed by the Board and feedback was given to the Directors. The performance of each directors were satisfactory.

c. Board of Directors

The performance of the Board was evaluated by the Board after seeking inputs from all the Directors on the basis of the criteria such as the Board composition and structure, effectiveness of Board processes, information and functioning etc.

d. Performance Evaluation of the Committee

The performance of the Committees was evaluated by the Board after seeking inputs from the Committee Members on the basis of the criteria such as the composition of Committees, effectiveness of committee meetings, etc.

Outcome of Evaluation:

Board of the Company was satisfied with the functioning of the Board and its Committees. The Committees are functioning well and besides covering the Committees terms of reference, as mandated by law, important issues are brought up and discussed in the Committee meetings. The Board was also satisfied with the contribution of Directors, in their individual capacities.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to section 134(5) of the Companies Act, 2013, the board of directors, to the best of their knowledge and ability, confirm that:

a) In preparation of annual accounts for the year ended March 31, 2024, the applicable accounting standards have been followed and that no material departures have been made from the same;

b) 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 and of the profit or loss of the Company for that year;

c) The Directors had taken proper and sufficient care 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;

d) The Directors had prepared the annual accounts for the year ended March 31, 2024 on going concern basis.

e) The Directors had laid down the 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 had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were

g) Adequate and operating effectively.

STATUTORY AUDITOR AND THEIR REPORT

Pursuant to the provisions of section 139 of the Act, M/s. Krishan Rakesh & Co, Chartered Accountants (Firm Registration No. 0016923N) were appointed as the Statutory Auditors of the Company, for a term of 5 (five) years, to hold office from the conclusion of the AGM held on September 30, 2023 till the conclusion of the AGM of the Company to be held for the Financial Year 2027-28. The Board of Directors and Audit Committee have recommended their appointment as Statutory Auditor of the Company.

Further, pursuant to Section 141 of the Act and relevant Rules prescribed there under, the Company has received certificate from the Auditors along with peer review certificate, that they are eligible to continue with their appointment and that they are not disqualified in any manner whatsoever from continuing as Statutory Auditors.

The Financial Statements and the Auditors Report for the financial year ended on 31st March, 2024 are free from any qualification, reservation, observation and adverse remark; further the notes on accounts are selfexplanatory. The Auditors Report is enclosed with the Financial Statements in this Annual Report

INDEPENDENT AUDITORS REPORT

The Statutory Auditors Report for the Financial Year 2023-24 is annexed to this Annual Report. The Statutory Audit Report does not contain any qualification reservation or adverse remark or disclaimer made by Statutory Auditors. The notes to the accounts referred to in the Auditors Report are self-explanatory and, therefore, do not call for any further comments.

SECRETARIAL AUDITOR AND THEIR REPORT

As the National Stock Exchange of India Limited (N SE) has granted listing approval on its SME platform effective May 24, 2024, so the company is not required to undergo the secretarial Audit for the financial year 2023-24.

After attaining the status of Listed Public Company, the section 204 of Companies Act, 2013 is applicable to the Company.

As the Company has attained status of SME listed company on NSE Emerge in the current year, so in order to comply with the provisions of Section 204 of Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors has appointed M/s. AK NANWANI & ASSOCIATES, Practicing Company Secretary, for conducting Secretarial Audit of the Company for the Financial Year 2024-25.

INTERNAL AUDITORS AND REPORT

The Company was listed on May 24, 2024 and the provisions in respect of Internal Audit became applicable only from that date. The process for appointing the internal auditor was initiated and pursuant to the provisions of Section 138 of Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the Company has appointed Mr. Shivam Sharma, as Internal Auditor for the financial year 2024-25.

EXTRACT OF ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3) (a) of the Companies Act, 2013, read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return for the year ending on March 31, 2024 is available on the Companys website and can be accessed at

https://www.hoacfoodsindia.com/annual-return.

RISK MANAGEMENT

The Company is not required to form a Risk Management Committee. However, the Company has developed and implemented a risk management policy for identifying the risk associated with business of the Company and measures to be taken by including identification of elements of risk and measures to control them.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

The particulars of loans given, investment made or guarantee given or security provided and the purpose for which the loan or guarantee or security is proposed to be utilized as per the provisions of Section 186 of the Companies Act, 2013 are disclosed in the notes to account to the financial statements for the FY 2023-24

DISCLOSURE ON RELATED PARTYS TRANSACTIONS

All Related Party transactions that were entered into during the FY 2023-2024 were on arms length basis and in the ordinary course of business. There are no materially significant related party transactions made by the Company with related parties which may have a potential conflict of interest with the company.

All the related parties transaction are in compliance with the Accounting Standards issued by ICAI and further details are mentioned in the notes of the Financial Statements.

All Related party transactions are placed before the Audit Committee for approval as per the Related Party Transactions Policy of the Company as approved by the Board. The policy is also uploaded on the website of the Company & can be accessed through the link https: / /www.hoacfoodsindia.com/policies.

Since, all the related party transactions that were entered into during the financial year 2023-2024 were on an arms length basis and were in the ordinary course of business and there was no material related party transaction entered by the Company during the year as per Related Party Transactions Policy, details are required to be provided in the Form AOC-2 prescribed under clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014. Particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 in the prescribed form (Form AOC-2) are attached as "Annexure-I".

The details of the transaction with related parties are provided in the notes to accompanying financial statements

CORPORATE GOVERNANCE

Your company being responsible corporate citizen provides utmost importance to best Corporate Governance practices and always works in the best interest of its stakeholders. Your Company has incorporated the appropriate standards for corporate governance, pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

As per regulation 15(2) of the Listing Regulation, the Compliance with the Corporate Governance provisions shall not apply in respect of the following class of the Companies:

a. Listed entity having paid up equity share capital not exceeding Rs.10 Crore and Net Worth not exceeding Rs.25 Crore, as on the last day of the previous financial year.

b. Listed entity which has listed its specified securities on the SME Exchange.

Since, our Company falls within the ambit of aforesaid exemption (b); hence compliance with the provision of Corporate Governance shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2023-2024.

NON-APPLICABILITY OF THE INDIAN ACCOUNTING STANDARDS

As per Provision to regulation Rule 4(1) of the companies (Indian Accounting Standards) Rules, 2015 notified vide Notification No. G.S.R 111 (E) on 16th February, 2015, Companies whose shares are listed on SME exchange as referred to in Chapter XB of SEBI (Issue of Capital and Disclosure Requirements) Regulations,2009, are exempted from the compulsory requirements of adoption of IND-AS w.e.f. April 01, 2017.

As your Company is also listed on Emerge Platform of NSE Limited, is covered under the exempted category and is not required to comply with IND-AS for preparation of financial statements beginning with period on or after April 01, 2017.

SEBI COMPLAINTS REDRESS SYSTEM (SCORES)

The investor complaints are processed in a centralized web-based complaints redress system. The salient features of this system are centralized database of all complaints, online upload of Action Taken Reports\(ATRs) by the concerned companies and online viewing by investors of actions taken on the complaint and its current status. Your Company has been registered on SCORES and makes every effort to resolve all investor complaints received through SCORES or otherwise within the statutory time limit from the receipt of the complaint. The Company has not received any complaint on the SCORES during financial year 2023-24

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

The details of conservation of energy, technology absorption, foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as "Annexure-H" and the same forms part of this report.

RISK MANAGEMENT POLICY

Pursuant Section 134(3)(n) of the Act, the Company has in place a Risk Management Policy which provides for the identification therein of elements of risk , which in the opinion of the Board may threaten the existence of the Company. The Policy further contains the risk assessment and minimization procedures.

The risk management plan is reviewed by the Board from time to time and suitable changes are done as may be necessitated.

CHANGE IN THE NATURE BUSINESS

There has been no change in the nature of business of the Company in the Financial Year under review. DISCLOSURE UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016)

During the year under review, neither any application was made nor is any proceeding pending against the Company under the Insolvency and Bankruptcy Code, 2016

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:

During the period under review, the provisions of Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility) Rules, 2014 were not applicable to the Company.

PUBLIC DEPOSIT

The Company has not accepted any deposits from Shareholders and Public falling within the ambit of Section 73 of the Companies Act, 2013 and rules made there under. Hence, the directives issued by the Reserve Bank of India & the Provision of Section 73 to 76 of the Company Act, 2013 or any other relevant provisions of the Act and the Rules there under are not applicable

There were no unclaimed or unpaid deposits as on 31st March, 2024.

WHISTLE BLOWER POLICY/ VIGIL MECHANISM

To meets the requirement under Section 177(9) and (10) of the Companies Act, 2013 and Regulation 22 of the SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015, the Company has adopted a Vigil Mechanism/ Whistle Blower Policy with a view to provide a vigilance mechanism for the directors and employees of the Company to raise concern of any violations of legal or regulatory requirements, incorrectness or misinterpretation of any financial statements and reports etc. The purpose of this Policy is to encourage the Companys directors and employees who have concerns about suspected misconduct, to come forward and express these concerns without fear of punishment or unfair treatment.

Likewise, under this policy, we have prohibited discrimination, retaliation or harassment of any kind against any employee who, based on the employees reasonable belief that such conduct or practice have occurred or are occurring, reports that information or participates in the said investigation. The Whistle Blower Policy is displayed on the Companys website at https://www.hoacfoodsindia.com/policies.

No individual in the Company has been denied access to the Audit Committee or its Chairman during the FY 2023-24

There were no instances of reporting under the Whistle Blower.

The Whistle Blower Policy of the Company is available on the website of the Company at www.hoacfoodsindia.com.

MAINTENANCE OF COST RECORD

The maintenance of Cost Records as specified by the Central Government under Section 148(1) of the Companies Act, 2013 is not applicable to the Company as the company does not fall under any of the category prescribed under Section 148(1) of Companies Act, 2013. Hence, the maintenance of the cost records as specified by the Central Government under Section 148(1) of the Act is not required and accordingly, such accounts and records are not made and maintained. The Company has not appointed any Cost Auditor during the year.

PREVENTION OF INSIDER TRADING

The Company has adopted a Code of Conduct for Prevention of Insider T rading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre- clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code. The Code is displayed on the Companys website at https://www.hoacfoodsindia.com/policies.

DETAILS OF REPORTING OF FRAUD BY AUDITOR

There are no instances of Fraud/ Suspected Fraud committed against the Company by the Officers or employees of the Company has been detected by the Auditor as required under Section 143(12) of the Companies Act, 2013 read with Rule 13 of the Companies (Audit and Auditors) Rules, 2014

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

According to Section 134(5) (e) of the Companies Act, 2013 the term "Internal Financial Control (IFC)" means the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, The Company believes that internal control is a necessary prerequisite of Governance and that freedom should be exercised within a framework of checks and balances. The Company has a well-established internal control framework, which is designed to continuously assess the adequacy, effectiveness and efficiency of financial and operational controls. The financial control framework includes internal controls, delegation of authority procedures, segregation of duties, system access controls and document filing and storage procedures.

The management is committed to ensure an effective internal control environment, commensurate with the size, scale and complexity of the business, which provides an assurance on compliance with internal policies, applicable laws, regulations and protection of resources and assets. The control system ensures that the Companys assets are safeguarded and protected and also takes care to see that revenue leakages and losses to the Company are prevented and our income streams are protected. The control system enables reliable financial reporting. The Audit Committee reviews adherence to internal control systems and internal audit reports.

They have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensure compliance of corporate policies. It has continued its efforts to align all its processes and controls with global best practices.

LISTING AND DEPOSITORY FEES

Your Company has paid Annual Listing fees for the financial year 2024-2025 to National Stock Exchange of India Limited (NSE) according to the prescribed norms and regulations. Company has also paid Annual Custody fee to National Securities Depository Limited and Issuer fee to Central Depository Services (India) Limited for the financial year 2024-2025.

CODEOFCONDUCT

Commitment to ethical professional conduct is a must for every employee, including Board Members and Senior Management Personnel of the Company. The Code is intended to serve as a basis for ethical decisionmaking in conduct of professional work. The Code of Conduct enjoins that each individual in the organization must know and respect existing laws, accept and provide appropriate professional views, and be upright in his conduct and observe corporate discipline. The duties of Directors including duties as an Independent Director as laid down in the Companies Act, 2013 also form part of the Code of Conduct. All Board Members and Senior Management Personnel affirm compliance with the Code of Conduct annually as "Annexure - III"

DISCLOSURE ON SECRETARIAL STANDARDS

During the period under review, applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to Meetings of the Board of Directors and General Meetings, respectively, issued by The Institute of Company Secretaries of India have been duly followed by the Company and have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards and that such systems are adequate and operating effectively.

PARTICULAR OF EMPLOYEES

The information required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed as "Annexure IV" and forms part of this Report.

The statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this report. Further, the report and the accounts are being sent to the Members excluding the aforesaid annexure. In terms of Section 136 of the Act, the said annexure is opened for inspection in electronic form. Any Member interested in obtaining a copy of the same may write to the Company Secretary.

DETAILS OF DIFFERENCE BETWEEN AMOUNTS OF THE VALUATION

There was no one time settlement by the Company with the Banks or Financial Institutions during the year under review, thus, the details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof are not applicable.

POLICY AGAINST SEXUAL HARASSMENT

Your Company has always believed in providing safe and harassment free workplace for every individual working in its premises through various interventions and practices. The Company ensures that the work environment at all its locations is conducive to fair, safe and harmonious relations between employees. It strongly believes in upholding the dignity of all its employees, irrespective of their gender or seniority. Discrimination and harassment of any type are strictly prohibited.

SEXUAL HARASSMENT POLICY

The Company has adopted a policy for Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act). The Company has complied with the provisions relating to constitution of internal complaints committee (ICC) under the POSH Act. All women employees are covered under this policy. ICC has been set up to redress complaints received regarding sexual harassment.

An Internal Compliant Committee (ICC) is in place as per the requirements of the said Act to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. No case has been reported during the year under review

The details of the complaints received during the year under review were as follows:

No. of Complaints Pending at the Beginning of the Year	0
No. of Complaints Received and Resolved during the year	0
No. of Complaints Pending at the End of the Year	0

WEBSITE OF THE COMPANY

Your Company maintains a website www.hoacfoodsindia.com where detailed information of the Company and specified details in terms of the Companies Act, 2013 and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 have been provided

GENERAL

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

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

• Issue of shares (including sweat equity shares) to employees of the Company under any scheme.

The Company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees.

ACKNOWLEDGEMENT

Your Directors wish to place on record their gratitude for the valuable guidance and support rendered by the Government of India, various State Government departments, Banks and stakeholders, including, but not limited to, shareholders, customers and suppliers, among others. We place on record, our appreciation of the contribution made by our employees at all levels.

The Directors take this opportunity to place on record their deep sense of appreciation for the total commitment, dedication and hard work put in by the employees of the Company. Lastly, your directors are deeply grateful for the continuous confidence and faith shown by the members of the Company.

	For and on behalf of the board Hoac Foods India Limited
	(Previously Known As "Hoac Foods India Private Limited")
	Sd/-	Sd/-
	Rambabu Thakur	Gaytri Thakur
	Managing Director	Director
	DIN: 08084215	DIN:08084214
Date: 26.08.2024
Place: Delhi