Karnavati Finance Ltd Directors Report.

To,

The Shareholders,

The directors have the pleasure in presenting 37th Annual Report of Your Company with the Audited Financial Statements of the Company for the financial year ended on March 31, 2021.

FINANCIAL RESULTS

(Amount in Lakhs)

Particulars F.Y. 2020-21 F.Y. 2019-20
Revenue From Operations 100.30 276.36
Other operation Income 2.50 0.03
Impairment Profit 19.40 -
Total Revenue 122.20 276.38
Less: Total Expenses before Depreciation, Finance Cost & Tax 95.57 235.07
Operating Profits before Depreciation, Finance Cost & Tax 26.63 41.31
Less: Depreciation 1.24 1.26
Finance cost 4.91 26.10
Profit/(Loss) Before Tax 20.48 13.95
Less: Current Tax 5.25 3.28
Less: Deferred Tax Liability (Assets) 2.88 (0.07)
Profit/(Loss) after Tax 12.35 10.75

YEAR AT A GLANCE

Financial Performance

During the financial year 2020-21, The Company has earned total income of Rs. 122.20 Lakhs from business activities as compared to Rs.276.38 Lakhs in previous year. The total revenue of the company is decreased by 55.79%. The Total income of the Company decreased mainly due to Interest on Loan received by company was decreased in comparison of previous year.

The total Profit before tax for the financial year 2020-21 stood at Rs. 20.48 Lakhs and the total net profit after tax for the financial year 2020-21 stood at Rs. 12.35 Lakhs.

The Directors of the Company are planning to expand the business of the Company in areas of providing loan against securities and opening of FFMC branches in various cities in the current year and thus confident of presenting the better figures in the coming years.

Dividend

To conserve resources for future prospect and growth of the Company, your Directors regret to declare Dividend for the Financial Year 2020-21 (Previous year - Nil).

Net Profit Transfer to Reserve

The Company has transferred Rs.246,963 to Statutory Reserve Fund in terms of Section 45-1C of the Reserve Bank of India Act, 1934.

Change in Nature of Business

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.

Share Capital

During the year under review, the company has not issued any shares including equity shares, shares with differential voting rights, stock options, sweat equity etc. The company has not bought back any equity shares during the year 202021.

The paid up share capital of the company as on March 31,2021 was Rs. 10.05 crores.

Dematerialization of Shares

The Company has entered into Tripartite Agreement with the depositories, National Securities Depository Limited (NSDL) and Central Depository Service (India) Limited (CDSL) for providing Demat facility to its Shareholders. For this purpose, the company has appointed Satellite Corporate Services Private Limited, as its registrar and Share Transfer Agent.

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Constitution of Board

The Constitution of the Board of Directors and other disclosure of the Board of Directors are given in the Corporate Governance Report.

Board Meeting

Regular meetings of the Board are held at least once in a quarter, inter-alia, to review the quarterly results of the Company. 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 corporate office of the Company.

During the year under review, Board of Directors of the Company met 12 (Twelve) times viz., May 06, 2020, May 26, 2020, July 24, 2020, July 30, 2020, August 31, 2020, September 15, 2020, October 05 2020, November 12,2020, January 08 2021, January 16 2021, February 12, 2021 and March 31 2021 respectively.

The details of attendance of each Director at the Board Meeting and Annual General Meeting are given in the Corporate Governance Report.

Independent Directors

In terms of Section 149 of the Companies Act, 2013 and rules made there under and Listing Regulations, the Company has three Non-Promoter Independent Directors. In the opinion of the Board of Directors, all three Independent Directors of the Company meet all the criteria mandated by Section 149 of the Companies Act, 2013 and rules made there under and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and they are Independent of Management.

A separate meeting of Independent Directors was held on March 31, 2021 to review the performance of Non-Independent Directors and Board as whole and performance of Chairperson of the Company including assessment of quality, quantity and timeliness of flow of information between Company management and Board that is necessary for the board of directors to effectively and reasonably perform their duties.

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

The Company has received a declaration from the Independent Directors of the Company under Section 149(7) of Companies Act, 2013 and 16(1 )(b) of Listing Regulations confirming that they meet criteria of Independence as per relevant provisions of Companies Act, 2013 for financial year 2021-22. The Board of Directors of the Company has taken on record the said declarations and confirmation as submitted by the Independent Directors after undertaking due assessment of the veracity of the same. In the opinion of the Board, they fulfill the conditions as Independent Directors and are independent of the Management. Further, all the Independent Directors have registered themselves with Independent Directors Data Bank.

None of Independent Directors have resigned during the year.

Information on Directors

During the year under review, there was following change in constitution of the Board of Directors of the Company.

a) Change in Board Composition.

I. Ms. Vinita Ajaybhai Parekh (DIN: 08739757) was appointed as an Additional (Non-Executive Independent) Director in accordance with the provisions of Section 161 of the Companies Act, 2013 by the Board of Directors at its Board Meeting held on May 6, 2020. The approval of the shareholders were obtained at their 36thAnnual General Meeting held on September 29, 2020, For appointment of Ms. Vinita Ajaybhai Parekh as Non-Executive Independent Director of the Company, not liable to retired by rotation for a term of Five consecutive years i.e. Up to the period of May 05, 2025.

II. The Board of Directors has, at its meeting held on May 26, 2020, appointed Mr. Kashyap Bharatkumar Vyas (DIN: 08747756) as Professional - Additional (Non-Executive) Director of the Company w.e.f. May 26, 2020 pursuant to Section 161 of the Companies Act, 2013 During the Financial year 2020-21 approval of the shareholders were obtained at their 36thAnnual General Meeting held on September 29, 2020 for appointment of Mr. Kashyap Bharatkumar Vyas as Non-executive Director of the Company, liable to retired by rotation.

III. The Board of Directors are intending to appoint Mr. Vineshkumar Popatlal Makadia (DIN: 00362318) as a non-executive director subject the approval of Reserve Bank of India, Board of Directors and any other statutory approval as required in this regards and the same has been communicated to the stock exchange on August 15, 2020. Appointment of Mr. Vinesh Makadia was approved by the Members in the 36th Annual General Meeting held on September 29, 2020. Company made an Application to RBI for approval of Appoitnment of Mr. Vinesh Makadia as a Non Executive Director and the same has been approved by RBI on December 8, 2020. Thenafter, The Board of directors at its meeting held on January 16, 2021 Appointed, Mr. Vinesh kumar Popatlal Makadia as Non-Executive Director of the Company liable for retired by rotation.

b) Retirement by rotation and subsequent re-appointment.

IV. Further during the Financial year 2020-21 Mr. Jay Ramanbhai Morzaria Managing Director of the Company who retires by rotation and were re-appointed in the AGM held on September 29, 2020.

V. In accordance with the provisions of the Articles of Association and Section 152 of the Companies Act, 2013, Mr. Raman Morzaria (DIN: 00203310) of the Company retires by rotation at the ensuing annual general meeting. He, being eligible, has offered himself for re-appointment as such and seeks re-appointment. The Board of Directors recommends his appointment on the Board.

c) Cessation of Directorships

VI. Mr. Kashyap Bharatkumar Vyas (DIN: 08747756) ceased to hold the office as Non-Executive Director of the company with effect from January 16, 2021 due to his pre-occupancy elsewhere The Board placed on record its appreciation for the valuable contribution and services rendered by them during their tenure as Director of the Company.

The relevant details, as required under Regulation 36 (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") and Secretarial Standards-2 issued by ICSI, of the person seeking appointment/re-appointment as Directors are annexed to the Notice convening the thirty seventh annual general meeting.

Key Managerial Personnel

In accordance with Section 203 of the Companies Act, 2013, the Company has already appointed Mr. Jay Morzaria as Chairman and Managing Director of the Company, Mr. Kush Morzaria as Chief Financial Officer

Further, there was change in the Key Managerial Personnel of the Company during the financial year 2020-21 as under.

1. Board of Directors at their Meeting held on October 05, 2020 Appointed Ms.Akanksha Rai as a Company Secretary and compliance officer of the Company in place of Ms. Nitixa Ramanuj who resigned from the Post of Company Secretary and Compliance Officer of the company w.e.f October 05, 2020.

Performance Evaluation

The Board of Directors has carried out an annual evaluation of its own performance, board committees and individual directors pursuant to the provisions of the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 in the following manners;

o 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.

o 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.

o The board and the nomination and remuneration committee reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc.

o In addition, the chairman was also evaluated on the key aspects of his role.

Separate meeting of independent directors was held to evaluate the performance of non-independent directors, performance of the board as a whole and performance of the chairman, taking into account the views of executive directors and non-executive directors. Performance evaluation of independent directors was done by the entire board, excluding the independent director being evaluated.

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, 2021, 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, 2021 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 adequate and operating effectively.

COMMITTEES OF BOARD

The Board of Directors, in line with the requirement of the act and Listing Regulations, has formed various committees, details of which are given hereunder.

1. Audit Committee

2. Nomination and Remuneration Committee

3. Stakeholders Grievance & Relationship Committee

The composition of each of the above Committees, their respective role and responsibility are detailed in the Report of Corporate Governance annexed to this Report.

Audit Committee

The Company has formed audit committee in line with the provisions of Section 177 of the Companies Act, 2013 and Regulation 18 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As at March 31, 2021, the Audit Committee comprised Mr. Parth Chandreshbhai Maniar (Non-Executive Independent) as Chairperson and Mrs. Birmda Minoobhai Bilimoria (Non-Executive Independent) and Mr. Jay Ramanbhai Morzaria (Executive) as Members. Details on dates of meetings and attendance of Members are detailed in the Report of Corporate Governance annexed to this Report.

Recommendations of Audit Committee, wherever/whenever given, have been accepted by the Board of Directors.

Vigil Mechanism

The Company has established a vigil mechanism and accordingly framed a Whistle Blower Policy. The policy enables the employees to report to the management instances of unethical behavior, actual or suspected fraud or violation of Companys Code of Conduct. Further the mechanism adopted by the Company encourages the Whistle Blower to report genuine concerns or grievances and provide for adequate safe guards against victimization of the Whistle Blower who avails of such mechanism and also provides for direct access to the Chairman of the Audit Committee, in exceptional cases. The functioning of vigil mechanism is reviewed by the Audit Committee from time to time. None of the Whistle blowers has been denied access to the Audit Committee of the Board. The Whistle Blower Policy of the Company is available on the website of the Company at

http://karnavatifinancelimited.com/docs/Policv/Whistle%20Blower%20Policv.pdf

Nomination and Remuneration Policy

Nomination and Remuneration Policy in the Company is designed to create a high performance culture. It enables the Company to attract motivated and retained manpower in competitive market, and to harmonize the aspirations of human resources consistent with the goals of the Company. The Company pays remuneration by way of salary, benefits, perquisites and allowances to its Executive Directors and Key Managerial Personnel. Annual increments are decided by the Nomination and Remuneration Committee within the salary scale approved by the members and are effective from April 1, of each year.

The Nomination and Remuneration Policy, as adopted by the Board of Directors, is placed on the website of the Company at http://karnavatifmancelimited.com/docs/Policy/Nomination%20 %20Remuneration%20Policy.pdf and is annexed to this Report as Annexure - A.

Remuneration of Directors

The details of remuneration/sitting fees paid during the financial year 2020-21 to Executive Directors/Directors of the Company is provided in Annual Return https://karnavatifinancelimited.com/investors/ and Report on Corporate Governance which are the part of this report.

During the year under review, the non-executive directors of the company had no pecuniary relationship or transaction with the company.

DEPOSITS

The company being Non-Deposit accepting Non-Banking Finance Company has not accepted any deposits from the public. 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. Moreover, the Company is not holding any Deposit as at the financial year ended on March 31, 2021.

PARTICULARS OF CONTRACTS OR ARRANGEMENT MADE WITH RELATED PARTY

All transactions to be entered by the Company with related parties will be in the ordinary course of business and on an arms length basis. The detail of transaction entered with related parties is annexed to this Report as Annexure-B.

Further, there were no related party transactions with the Companys Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company.

Members may refer to the notes to the accounts for details of related party transactions entered as per Indian Accounting Standard - 24. The Board of Directors of the Company has, on the recommendation of the Audit Committee, adopted a policy to regulate transactions between the Company and its Related Parties, in compliance with the applicable provisions of the Companies Act 2013, the Rules thereunder and the SEBI LODR Regulations.

The Policy on Materiality of and dealing with Related Party Transactions as approved by the Board is uploaded on the Companys website and can be accessed at the Web-link:

http://kamavatifmancelimited.com/docs/Pohcv/Related%20Partv%20Transaction%20Pohcv.pdf

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

A. Conservation of energy -

i. ) The steps taken or impact on conservation of energy: Company ensures that the operations are conducted in the manner whereby optimum utilisation and maximum possible savings of energy is achieved.

ii. ) The steps taken by the Company for utilizing alternate sources of energy: No alternate source has been adopted.

iii. ) The capital investment on energy conservation equipment: No specific investment has been made in reduction in energy consumption.

B. Technology absorption -

i.) The effort made towards technology absorption: Not Applicable.

ii. ) The benefit derived like product improvement, cost reduction, product development or import substitution:

Not Applicable

iii. ) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year) -

a. The details of technology imported: Nil.

b. The year of import: Not Applicable.

c. Whether the technology has been fully absorbed: Not Applicable.

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

iv. ) The expenditure incurred on Research and Development: Nil

C. Foreign Exchange Earnings & Expenditure:

i. ) Details of Foreign Exchange Earnings: Nil

ii. ) Details of Foreign Exchange Expenditure: Nil ANNUAL RETURN

The Annual Return of the Company as on 31st March,2021 is available on the website of the Company at https://karnavatifmancelimited.com/investors/

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Details of Loans, Guarantees, Investments and Security covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statement.

PARTICULAR OF EMPLOYEES

The ratio of the remuneration of each whole-time director to the median of employees remuneration as per Section 197(12) of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed to this Report as Annexure - C.

The statement containing 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) 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 members excluding this annexure. In terms of Section 136 of the Act, the said annexure will be available for inspection in electronic form. Any shareholder interested in obtaining a copy of the same may write to Company Secretary.

INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY

During the year under review, the company has appointed M/s. Suresh Tejwani & Co, as an Internal Auditor to look after the internal financial control and their adequacy.

The details on Internal Financial Control and their adequacy are provided in Management Discussion and Analysis Report forming part of Annual Report 2020-21.

MATERIAL CHANGES & COMMITMENTS

There are following material changes and commitments affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statement relates and the date of this report.

1. The Company has joined hands with One Arc Labs Private Limited ("OL") and has entered into business correspondent Facilitation on April 30, 2021. The OL is Specialized solutions provider in the business of using technologies platform and otherwise and acting as business correspondent for various entities in India for varios business verticals like logistics, media etc. with innovative credit Products offerings for main business and collateral credit requirements. Our Company and OL had agreed to entered into agreement for facilitation and business corresponding services as per the terms of the agreement.

2. Board of Directors approved Surrender of its FFMC Licence in their Meeting held on May 19, 2021. The Company has surrendered its FFMC Licence KARNAVATI FINANCE LIMITED - FE.MUM.-1916/2016 - VALID UPTO 31.05.2021.

Management was of the view that License should not be renewed till the pandemic ends and International Travel restrictions are lifted. Later on with the consent of Board, our company will re- apply for Registration with RBI for FFMC License, post completion of pandemic situation.

DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDERESSAL) ACT, 2013

To foster a positive workplace environment, free from harassment of any nature, we have institutionalized the Anti-Sexual Harassment Initiative (ASHI) framework, through which we address complaints of sexual harassment at the all workplaces of the Company. Our policy assures discretion and guarantees non-retaliation to complainants. We follow a gender-neutral approach in handling complaints of sexual harassment and we are compliant with the law of the land where we operate. The Company has setup an Internal Complaints Committee (ICC) for redressal of Complaints.

During the financial year 2020-21, the Company has received Nil complaints on sexual harassment, out of which Nil complaints have been disposed of and Nil complaints remained pending as of March 31,2021.

NAMES OF THE COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES DURING THE YEAR

There is no subsidiary, joint venture or associate company as on March 31, 2021 and hence the same is not applicable to the company.

RISK MANAGEMENT POLICY

A well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process is in place. The objective of the mechanism is to minimize the impact of risks identified and taking advance actions to mitigate it. The mechanism works on the principles of probability of occurrence and impact, if triggered. A detailed exercise is being carried out to identify, evaluate, monitor and manage both business and nonbusiness risks.

PREVENTION OF INSIDER TRADING

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company and the same is hosted on the website of the company i.e. http://karnavatifinancelimited.com/docs/Policv/Policv%20on%20Disclosure%20of%20UPSI%20(w.e.f.%20April%201,% 202019).pdf 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. All the Board of Directors and designated employees have confirmed compliance with the Code.

CORPORATE GOVERNANCE

Your Company strives to incorporate the appropriate standards for corporate governance. As stipulated in Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Report on Corporate Governance and Certificate of the Practicing Company Secretary with regards to compliance with the conditions of Corporate Governance is annexed to the Boards Report as Annexure - D.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management Discussion and Analysis Report for the year under review, as stipulated under Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of this Annual Report.

MAINTENANCE OF COST RECORD

Since the company is not falling under prescribed class of Companies, our Company is not required to maintain cost record.

STATUTORY AUDITOR & THEIR REPORT

In terms of provisions of section 139 of the companies act, 2013 and companies (Audit and Auditors) Rules, 2014, M/s. D G M S & Co., Chartered Accountants (formerly known as M/s. Doshi Maru & Associates) were appointed as a statutory auditor of the company in 34th AGM for a period of 5 years till the conclusion of 39th AGM of the company subject to ratification of their appointment at every annual general meeting. However, in terms of provisions of companies Act (Amendments), 2017, the requirement for ratification of the auditors at every annual general meeting has been dispensed with.

The notes on financial statement referred to in the Auditors Report are self-explanatory and do not call for any further comments. Further the Auditors Report does not contain any qualification, reservation or adverse remark that requires clarification or justification.

Reporting of frauds by auditors

During the year under review, neither the statutory auditor nor the secretarial auditor has reported to the audit committee, under section 143 (12) of the Companies Act, 2013 any instances of fraud committed against the company by its officers or employees, the details of which would need to be mentioned in the Boards Report.

SECRETARIAL AUDITOR & THEIR REPORT

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. SCS AND CO LLP, Practicing Company Secretaries, Ahmedabad to carry out the Secretarial Audit for the financial year ended on March 31,2021. Secretarial Audit Report is annexed to the Boards Report as Annexure - E-1.

There have been few common annotations reported by the above Secretarial Auditors in their Report with respect to

Further, as per Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and necessary amendments thereto, every listed entity and its material unlisted subsidiaries incorporated in India is required to submit Annual Secretarial Compliance Report to the concern stock exchange within 60 days from the closure of respective financial year regarding the status of compliances done by the listed entity as prescribed under SEBI (LODR) Regulations, 2015.

For, compliance of Regulation 24A of SEBI (LODR) Regulations, 2015, the company has appointed M/s. SCS AND CO LLP, Practicing Company Secretaries for the purpose of availing Annual Secretarial Compliance Report and submitted the same with BSE Limited and the copy of the same is annexed to the Boards Report as Annexure - E-2.

There have been few common annotations reported by the above Secretarial Auditors in their Report with respect to:

Sr. No. Compliance Requirement (Regulations/ circulars / guidelines including specific clause) Deviations Observations/ Remarks of the Practicing Company Secretary Management Reply
Schehule III, Part A- Disclosures of Events or Information: Specified Securities- Regulation 30 of SEBI Listing Obligations and Disclosure Requirement Regulations (LODR), 2015. Outcome for Approval of Unaudited Financial Results for Quarter and half year ended on September 30, 2020 was uploaded after 30 minutes. The Company uploaded Outcome of Board Meeting held on November 12, 2020 for Approval of Unaudited Financial Results for Quarter and half year ended on September 30, 2020 at 04:18:08 PM for Board Meeting concluded at 3.30 P.M. The Upload was 18 minutes and 8 seconds late. The said delay was cause due to unintentional mistake. Otps to upload outcome and results were being received very late in email.
Point No. 7 of Annexure I of SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 09, 2015- Details that need to be provided while disclosing events given in Para A and Para B of Schedule III of SEBI LODR Regulations, 2015 Board Meeting Outcome dated August 31, 2020 for Recommending of Appointment of Director does not disclose details as per Point No. 7 of Annexure I of SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 09, 2015. The Company uploaded Board Meeting Outcome on August 31, 2020 for Board Meeting held on August 31, 2020 for approving various agendas including Recommending the appointment of Mr. VineshkumarPopatlalMakadia as a non-executive director subject to the approval of Reserve Bank of India and approval of any other statutory authorities, if any. The Company did not attached details of Director which is recommended for Appointment (Reason of Change, Brief Profile Disclosure of relationship between Directors) The said disclosure was made in the Notice to AGM sent to all the shareholders in which Mr. Vinesh kumar Popatlal Makadia was proposed to be appointed. It was inadvertently missed out to be mentioned in Outcome. The Company is taking due care for the compliance of all the applicable SEBI LODR Circulars.
Clause (b) of BSE Circular No.LIST/COMP/14/2018- 19 dated June 20, 2018- Enforcement of SEBI Orders regarding appointment of Directors by listed companies Company has not submitted Affirmation w..r.t Director being appointed is not debarred from holding the office of director by virtue of any SEBI order or any other such authority in Uploading Corporate Announcement on May 6, 2020, May 26, 2020 and August 31, 2020 for Appointment/Recommending Appointment of Director Company has not submitted Affirmation w..r.t Director being appointed is not debarred from holding the office of director by virtue of any SEBI order or any other such authority in Uploading Corporate Announcement on May 6, 2020, May 26, 2020 and August 31, 2020 for Appointment/Recommending Appointment of Directors. The Company received the said affirmation from director and the same has been taken into consideration at the Board Meeting held for his appointment. It was inadvertently missed out to be mentioned in Outcome. The Company is taking due care for the compliance of all the applicable SEBI LODR Circulars.

SECRETARIAL STANDARD

The company complies with all applicable mandatory secretarial standards issued by the Institute of Company Secretaries of India.

GENERAL DISCLOSURE

Your Directors state that the Company has made disclosures in this report for the items prescribed in section 134(3) of the Act and Rule 8 of The Companies (Accounts) Rules, 2014 to the extent the transactions took place on those items during the year.

Your Directors further 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. Details of Annual Report on Corporate Social Responsibility as Company is not falling within the criteria as prescribed u/s 135 of the Companies Act, 2013

2. Issue of Equity Shares with differential rights as to dividend, voting or otherwise.

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

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.

APPRECIATIONS AND ACKNOWLEDGEMENT

Your Directors take this opportunity to place on record the valuable co-operation and support extended by the banks, government, business associates and the shareholders for their continued confidence reposed in the Company and look forward to having the same support in all future endeavors.