Katare Spinning Mills Ltd Directors Report

To the Members,

KATARE SPINNING MILLS LIMITED

The Board of Directors are pleased to present the Forty Sixth (46 th) Annual Report of the Company along with the financial statements for the Financial Year ended 31st March 2026.

1. FINANCIAL HIGHLIGHTS:

Certain key aspects of your Companys performance during the Financial Year ended 31st March 2026 as compared to the previous Financial Year are summarized below:

(Rs. In Thousand)

Particulars	2025-26	2024-25
Turnover	36,303	53,642
Profit Before Interest & Depreciation	1,195	(3,710)
Less : Interest	(3,866)	(3,353)
Profit before depreciation	(2,671)	(7,063)
Less : Depreciation	(13,065)	(13,092)
Loss after depreciation & before taxation	(15,736)	(20,155)
Add : Excess provision in the last year	0.00	0.00
Less: Tax expenses relating to previous year	0.00	0.00
Add/Less: Deferred Tax Liability/Assets	5,907	(2,851)
Profit / loss for the period	(21,643)	(17,304)
Profit / Loss for the period
Add : Balance carried from previous	0.00	0.00
Profit/Loss carried forward	(21,643)	(17,304)

2. OVERVIEW OF OPERATIONS:

During the year under review, your Company recorded a total income of Rs. 36,303 (in thousand) as compared to last years income of Rs. 53,642 (in thousand) and net Loss of Rs. 21,643 (in thousand) as compared to last years net loss of Rs. 17,304 (in thousand). For further information, kindly refer to Management Discussion and Analysis Report, forming a part of this Annual Report.

The Board of Directors have taken measures to adopt new technologies and industry standards to cope up with competition in the industry and advance towards achieving its goal.

3. DIVIDEND AND RESERVE:

Your directors do not recommend any dividend for the year under review. The details of reserves and surplus are provided in Note No. 15 of the notes to the standalone financial statement.

4. STATE OF AFFAIRS OF THE COMPANY/BUSINESS OVERVIEW: SPINNING MILL INDUSTRY:

The performance of the spinning industry continues to be influenced by various external factors, including cotton availability and prices, yarn prices, domestic and export demand, power and other input costs, exchange-rate movements and general economic conditions. These factors may have a direct impact on the profitability and operational performance of spinning companies.

During the financial year under review, the Company recorded revenue of Rs. 36,303/- thousand from its spinning segment as against Rs. 53,642/- thousand in the previous financial year, representing a decline of approximately 32.32% in revenue.

The decline in turnover was primarily attributable to the challenging operating environment faced by the textile and spinning industry during the year, including fluctuations in cotton prices, yarn realizations, subdued market demand and pressure on operating margins. Volatility in the prices of key raw materials, particularly cotton, together with changes in market conditions and demand for cotton yarn, affected the Companys production, sales volumes and overall realizations during the year.

SOLAR POWER PROJECT:

Considering the significant contribution of electricity and power costs to the overall cost of production, the Company has installed a 1 MW solar power plant for captive consumption under the net metering mechanism. The solar power generated is primarily utilized for the Companys day-to- day manufacturing operations, with surplus power, wherever applicable, being exported to the grid in accordance with the applicable regulatory framework.

During the financial year 2025-26, the Companys captive solar power plant generated approximately 14,91,913 units of electricity, having an estimated value of approximately Rs. 47.90 lakh. The generation of renewable power has contributed towards reducing the Companys dependence on conventional grid power and has assisted in optimizing power costs and reducing the overall cost of production.

The Companys investment in captive solar power also supports its commitment towards sustainable business practices and reduction in its carbon footprint. The use of renewable energy for its manufacturing operations is expected to provide long-term benefits through improved energy efficiency, cost optimization and greater reliance on clean energy.

During FY 2025-26, the captive solar power sector in Maharashtra continued to operate in a changing regulatory environment. In particular, changes in the Maharashtra Electricity Regulatory Commission (MERC) framework relating to energy banking and settlement of renewable energy have impacted the flexibility available for adjustment of generated and consumed energy and may have an effect on the economic benefits derived from captive renewable energy generation.

In view of the changing regulatory and operating environment, the Company continues to monitor developments in the renewable energy sector and applicable MERC regulations. The Company will evaluate appropriate measures for optimizing solar power generation and consumption, improving utilisation of captive renewable energy and enhancing the overall economic benefits of the solar power project.

The Company remains committed to increasing the use of renewable energy and exploring opportunities for modernization, efficiency improvement and potential expansion of its renewable energy capacity, subject to technical feasibility, commercial viability and applicable regulatory requirements. The Company believes that greater utilisation of renewable energy will contribute to long-term cost efficiency and support its broader objective of sustainable growth.

5. ANNUAL RETURN:

Pursuant to Section 92(3) read with Section 134(3) (a) of the Companies Act, 2013, the Annual Return as on 31st March, 2026 is available on the Companys website i.e. https://katarespinningmills.com under investor Relations section.

6. NUMBER OF MEETINGS OF THE BOARD:

Four (4) Meetings of the Board of Directors were held during the financial year 2025-26 and the gap between two consecutive board meetings was in accordance with the statutory limit. The details of the number of meetings held and attended by each Director are provided in the Corporate Governance Report, which forms part of this Report.

COMMITTEES OF THE BOARD:

The Company has the following 3 (Three) Board Committees which have been established in compliance with the requirement of applicable law(s) and statute(s) and function accordingly:

> Audit Committee

> Nomination and remuneration Committee

> Stakeholders Relationship Committee

7. BOARD EFFECTIVENESS:

The Company has adopted the Governance guidelines which, inter alia, cover aspects related to composition and role of the Board, Chairman and Directors, Board diversity, definition of independence, Directors term, retirement age and Committees of the Board. It also covers aspects relating to nomination, appointment, induction and development of Directors, Directors Remuneration, Code of Conduct, Board Effectiveness Review and mandates of Board Committees.

A. BOARD 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 Act and the corporate governance requirement as prescribed by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 [“SEBI (LODR), 2015”].

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

The Board and the Nomination and Remuneration Committee (NRC) 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. In addition, the Chairman was also evaluated on the key aspect of his role.

B. APPOINTMENT OF DIRECTORS AND CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR:

The Nomination and Remuneration Committee (NRC) is responsible for developing competency requirements for the Board based on the industry and strategy of the Company. The NRC reviews and meets potential candidates, prior to recommending their nomination to the Board. At the time of appointment, specific requirements for the position, including expert knowledge expected, is communicated to the appointee.

The NRC has formulated the criteria for determining qualifications, positive attributes and independence of Directors in terms of provisions of Section 178 (3) of the Act and SEBI (LODR), 2015:

Independence: A Director will be considered as an ‘Independent Director if he/ she meets with the criteria for ‘Independence as laid down in the Act and SEBI (LODR), 2015.

Competency: A transparent Board nomination process is in place that encourages diversity of thought, experience, knowledge, perspective, age and gender. It is ensured that the Board has a mix of members with different educational qualifications, knowledge and with adequate experience in banking and finance, accounting and taxation, legal and regulatory matters, hospitality sector and other disciplines related to the Companys businesses.

Additional Positive Attributes:

> The Directors should not have any other pecuniary relationship with the Company and the Companys promoters, except as provided under law.

> The Directors should maintain an arms length relationship between themselves and the employees of the Company, as also with the Directors and promoters, stakeholders for whom the relationship with these entities is material.

> The Directors should not be the subject of proved allegations of illegal or unethical behavior, in their private or professional lives.

> The Directors should have the ability to devote sufficient time to the affairs of the Company.

C. REMUNERATION POLICY:

The Company had adopted a Nomination and Remuneration Policy for the Directors, KMP and other employees, pursuant to the provisions of the Act and SEBI (LODR), 2015.

The key principles governing the Companys Remuneration Policy are as follows:

> Independent Directors (ID) may be paid sitting fees for attending the meetings of the Board and of Committees of which they may be members, and receive commission within regulatory limits, as recommended by the NRC and approved by the Board.

> Overall remuneration should be reasonable and sufficient to attract, retain and motivate Directors aligned to the requirements of the Company, taking into consideration the challenges faced by the Company and its future growth imperatives.

> Remuneration paid should be reflective of the size of the Company, complexity of the sector/ industry/Companys operations and the Companys capacity to pay the remuneration and be consistent with recognized best practices.

8. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS:

During the financial year under review, no significant material orders were passed by the regulators or courts or tribunals impacting the going concern status and the Companys operations.

9. AUDIT COMMITTEE:

Details pertaining to the composition of Audit Committee are included in the Corporate Governance Report, which forms part of the Annual Report.

10. DIRECTORS AND KMP:

As per the provisions of Section 152 of the Act, Mr. Umakant Mahindrakar (DIN: 01233305), he is liable to retires by rotation at the ensuing annual general meeting and being eligible offered himself for re-appointment, the matter will be placed before member of the Company for approval.

The Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as prescribed both under Section 149 (6) of the Act and SEBI (LODR), 2015.

11. CORPORATE GOVERNANCE REPORT:

The members please note that the provisions relating to Corporate Governance i.e. Regulation 27 of SEBI (LODR), 2015 are not applicable to the Company and accordingly, the Company is not required to submit the Corporate Governance Report with this Annual Report. However, keeping in view the objective of encouraging the use of better practices through voluntary adoption, the Company has decided to adopt and disseminate voluntary disclosure of Corporate Governance which not only serve as a benchmark for the corporate sector but also help the Company in achieving the highest standard of corporate governance.

Accordingly, a voluntary disclosure i.e. the report on Corporate Governance as stipulated under regulation 34(3) read with Schedule V of the SEBI (LODR), 2015 is annexed herewith and forms a part of this report.

As such the Members may note that any omission of any corporate governance provisions shall not be construed as non-compliance of the above-mentioned regulations.

12. AUDITORS & THEIR REPORTS:

Pursuant to the provisions of Section 139, 140, 141, 142 and other applicable provisions, if any, of the Companies Act, 2013 (“Act”) and the rules made thereunder, M/s. G M Pawle and Associates, Chartered Accountants, Solapur (Firm Registration No. 160253W) were appointed as the Statutory Auditors of the Company at the Annual General Meeting (“AGM”) held on 29th September 2022, for a term of five consecutive years, to hold office from the conclusion of the said AGM until the conclusion of the AGM of the Company to be held in the year 2027.

During the financial year 2026, the Company received a resignation letter dated 12th August 2026 from M/s. G M Pawle and Associates, Chartered Accountants, tendering their resignation as Statutory Auditors of the Company. The resignation was tendered on account of the restructuring of the proprietary firm, which is proposed to be merged into a partnership firm of Chartered Accountants under the name and style of M/s. PMWC and Associates, Chartered Accountants. Consequent upon such restructuring, the proprietary firm will cease to practice independently and, accordingly, the existing Statutory Auditor will not be in a position to continue the statutory audit assignment of the Company.

The Board of Directors took note of the resignation, which resulted in a casual vacancy in the office of Statutory Auditors of the Company pursuant to the provisions of Section 139(8) of the Act.

Based on the recommendation of the Audit Committee, the Board of Directors, at its meeting held on 21st August 2026, approved the appointment of M/s. Hiremath Patil Udgiri and Associates, Chartered Accountants (Firm Registration No. 129856W, Membership No. 131259 and Peer Review No. 024697) as Statutory Auditors of the Company to fill the casual vacancy caused by the resignation of M/s. G M Pawle and Associates, Chartered Accountants, subject to the approval of the Members of the Company at the ensuing AGM.

Accordingly, the appointment of M/s. Hiremath Patil Udgiri and Associates, Chartered Accountants, to fill the casual vacancy is being placed before the Members for their approval at the ensuing 46th AGM to be held on 26th September 2026, in accordance with Section 139(8) and other applicable provisions of the Act.

Further, subject to the approval of the Members and compliance with the applicable provisions of the Act, it is proposed to appoint M/s. Hiremath Patil Udgiri and Associates, Chartered Accountants (Firm Registration No. 129856W) as the Statutory Auditors of the Company for a term of five consecutive years, commencing from the conclusion of the 46th AGM to be held in the year 2026 until the conclusion of the 51st AGM to be held in the year 2031.

The Company has received the necessary consent and eligibility certificate from the proposed Statutory Auditors confirming that their appointment, if made, shall be in accordance with the applicable provisions of the Act and that they satisfy the criteria prescribed under Section 141 of the Act.

None of the Directors, Key Managerial Personnel of the Company and their respective relatives is concerned or interested, financially or otherwise, in the proposed appointment, except to the extent of their respective shareholding, if any, in the Company.

Auditors Report

The Statutory Auditors Report for the financial year ended 31st March 2026, along with the Audited Financial Statements and Notes forming part thereof, is annexed to the Financial Statements forming part of this Annual Report.

The Statutory Auditors Report contains certain observations/qualifications in respect of the financial year under review. The Boards explanation/comments in respect of the observations/qualifications are appropriately provided in the relevant section of this Annual Report and/or the Notes forming part of the Financial Statements.

13. RESPONSE TO AUDITORS QUALIFICATION:

The Board of the Company has discussed the points as mentioned in the Auditors Report for period under review, in respect to this management is taking the necessary steps towards it.

Comments of the Board of Directors on the observations pointed out in the Independent Audit Report;

Sr. No.	Observations by Statutory Auditor	Comments by the Board
1	During the year under review; The Companys spinning division has remained substantially non-operational for a prolonged period, and the Company has incurred continuous net losses, including a net loss of Rs. 2,16,43,306/- for the year ended March 31, 2026.	The Board has noted the observation of the Statutory Auditors regarding non-operation of Spinning Division.
		In this the Board Would like to clarify as under.
		1. The Spinning Division has non-operating for last 3-4 years due to adverse & unviable market conditions beyond the control of the management the major reasons are.
		a) Unfavorable policy of the Central Govt. relating to textile sector.
		b) Huge disparity / mismatch between Raw Material (Cotton) prices & finished goods (yarn) prices making manufacturing commercially unviable.
		2. If the division is operated under present conditions the company would incur heavy cash losses on account of daily fixed costs such as labour wage, staff salaries, power charges,
		interest & other overheads which would be much higher than the present level of losses.
		3. Therefore as a prudent commercial measure to minimize losses & protect the interest of shareholders the Board has taken a conscious decision to keep the spinning operations on hold & explore alternative revenue models from the existing assets.
		Steps taken to mitigate losses & optimize asset utilization a) The unutilized factory sheds, land premises which are not required have been give the rental basis to the parties. This has resulted in steady rental income for the company.
		b) The company has a 1 M.W. Solar Power Plant the same is under Net metering / banking arrangement with MSEDCL. The exported power banked during the year was settled the company has received 46.51 Lacs from MSEDCL for the past year The power generated from Solar is being supplied to the tenants occupying the rented premises especially during morning hours which is generating additional power sale income.
		c) The Board clarifies that out of the total Net Loss reporting during the year approx 88% of loss is attributable to non-cash items viz. Depreciation & deferred tax liability thus the actual cash loss of the company is very minimal
		i.e. only about 12% of the reported loss during the current financial year 2025-26 the company has taken effective steps of enhancement in rental & letting out of additional area & optimum utilization of 1 MW Solar plant & Sale of power at better realization.
		The Board in confident that there measures the said minor cash loss will be fully wiped out & the company will turn into cash positive / plus the Board is continuously monitoring the textile market scenario & will restart the Spinning division as & when in becomes commercially viable.

14. SECRETARIAL AUDIT:

Pursuant to the provisions of Section 204 of the Companies Act, 2013 (“Act”), read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR Regulations”), the Company had appointed M/s. Chetan Kumbhojkar, Practising Company Secretaries, Pune, as the Secretarial Auditor of the Company for a term of five consecutive financial years commencing from FY 2025-26 to FY 2029-30, to conduct the Secretarial Audit of the Company in accordance with the applicable provisions of the Act, the rules made thereunder and the SEBI LODR Regulations.

Accordingly, M/s. Chetan Kumbhojkar, Practising Company Secretaries, Pune, conducted the Secretarial Audit of the Company for the financial year ended 31st March 2026. The Secretarial Audit Report for the financial year ended 31st March 2026, in the prescribed Form MR-3, is annexed to this Annual Report and forms an integral part of the Directors Report.

The Secretarial Auditors Report is self-explanatory and does not call for any further explanation or clarification from the Board, except to the extent specifically stated herein.

The Company has taken note of the observations, instances of non- compliance, if any, reported by the Secretarial Auditor and has initiated/undertaken necessary corrective and remedial measures to ensure compliance with the applicable provisions of the Companies Act, 2013, the rules made thereunder, SEBI LODR Regulations and other applicable laws, and to strengthen the Companys compliance framework.

The Secretarial Auditor shall continue to conduct the Secretarial Audit of the Company for the remaining period of his tenure, subject to applicable provisions of the Act, SEBI LODR Regulations and other applicable laws.

15. INTERNAL FINANCIAL CONTROL:

The Company has in place internal financial control systems, commensurate with the size and complexity of its operations to ensure proper recording of financial and operational information and compliance of various internal controls and other regulatory and statutory compliances. The internal auditor monitors and evaluates the efficacy and adequacy of internal control systems in the Company. Based on the report of the internal auditor, respective departments undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and corrective actions there on are presented to the Audit Committee of the Board.

16. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3) (m) of the Act read with Rule 8(3) of The Companies (Accounts) Rules, 2014, is annexed herewith separately.

17. DEPOSITS:

The Company has not accepted or renewed any deposits from the public during the year under review in terms of the Companies (Acceptance of Deposits) Rule, 2014 and also, no deposits were outstanding at the beginning or at the closure of the financial year under review.

18. RELATED PARTY TRANSACTIONS:

All Related Party Transactions (RPTs) that were entered into during the financial year were on an arms length basis and in the ordinary course of business. Accordingly, detailed information given in Form AOC-2 which is annexed herewith separately.

There were no materially significant RPTs entered into by the Company during the year.

19. RISK MANAGEMENT:

The Company has adopted a Risk Management Policy, pursuant to the provisions of Section 134 of the Act, which has a robust Risk Management framework to identify and evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on business objectives and enhance the Companys competitive advantage.

The risk framework defines, the risk management approach across the enterprise at various levels including documentation and reporting.

The framework enables risks to be appropriately rated and graded in accordance with their potential impact and likelihood. The two key components of risks are the probability (likelihood) of occurrence and the impact (consequence) of occurrence, if the risk occurs. Risk is analyzed by combining estimates of probability and impact in the context of existing control measures.

20. LOANS, GUARANTEES AND INVESTMENTS:

During the year, the Company has not made any investments or given any loans or guarantees or provided any security in connection with a loan to any person or body corporate, covered under Section 186 of the Act.

21. CORPORATE SOCIAL RESPONSIBILITY INITIATIVE:

As the net worth of the Company is less than Rs. Five hundred crores, further the turnover of the Company is less than Rs. One thousand crores and net profit of the Company does not exceed Rs. Five crore or more at any point during the financial year, therefore the Company is not obliged to form Corporate Social Responsibility committee as per terms of section 135 (1) of the Act.

22. PARTICULARS OF EMPLOYEES:

There are no employee drawing remuneration exceeding the limits prescribed under Section 134(3) (q) of the Act read with Rule 5 of Rules 2014 and hence no details are required to be annexed to this report.

23. VIGIL MECHANISMS/WHISTLE BLOWER POLICY:

The Company has established a vigil mechanism named as ‘Whistle Blower Policy within the Company in compliance with the provisions of Section 177(10) of the Act and Regulation 22 of the SEBI (LODR), 2015.

The policy of such mechanism has been circulated to all employees within the Company, which provides a framework to the employees for guided & proper utilization of the mechanism.

24. SEPARATE MEETING OF INDEPENDENT DIRECTORS:

The Independent Directors were fully kept informed of the Companys activities in all its spheres. During the year under review, a separate meeting of Independent Directors was held on 20th December, 2025 and the Independent Directors reviewed the performance of (i) non- independent directors and (ii) the board as whole.

They also assessed the quality, quantity and timelines of flow of information between the Companys Management and the Board that are necessary for the Board to effectively and reasonably perform their duties. All the Independent Directors were present at the meeting.

25. SAFETY MEASURES:

i. Insurance:

Your Company continued to cover all assets mainly, plant & machinery, building, materials, stock, furniture & fixtures against possible risks like fire, flood, terrorism and earthquake.

ii. Industrial Relations:

The industrial relations at the plants of the Company during the year under review continued to be cordial throughout the year.

26. MANAGEMENTS DISCUSSION AND ANALYSIS REPORT:

Managements Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 read with Schedule V to the SEBI (LODR), 2015, is presented in a separate section forming part of the Annual Report.

27. DISQUALIFICATION OF DIRECTORS:

None of Director on the Board of the Company has incurred any disqualification on account of non-compliance with any of the provisions of the Act.

28. DIRECTORS RESPOSIBILITY STATEMENT:

The Board of Directors acknowledge the responsibility for ensuring compliance with the provisions of Section 134(3)(c) read with Section 134(5) of the Act in the preparation of annual accounts for the year ended on 31st March, 2026 and state that:

i. In the preparation of the annual accounts for Financial Year ended 31st March, 2026, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. 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 of the Company for that period.

iii. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv. The Directors have prepared the annual accounts for Financial Year ended 31st March, 2026 on a ‘going concern basis.

v. The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and have been operating efficiently, and

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

29. DETAILS OF SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES:

The Company does not have any subsidiary or joint venture within the meaning of this clause and hence no details are required to be given.

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

The Company has zero tolerance for sexual harassment at its workplace and has adopted a Policy on prevention, prohibition and redressal of sexual harassment at the workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder for prevention.

During the year under review:

• Complaints received: 0

• Complaints resolved: 0

• Complaints pending for more than 90 days: 0

31. COMPLIANCE WITH MATERNITY BENEFIT ACT, 1961:

The Company affirms that it has duly complied with the provisions of the Maternity Benefit Act, 1961, including all amendments thereto. All applicable benefits, leave entitlements, and facilities as mandated under the Act have been extended to eligible women employees during the financial year under review. The Company is committed to fostering a supportive, inclusive, and equitable workplace, and remains steadfast in ensuring the well-being and rights of women employees, particularly during and after maternity. Provisions such as paid maternity leave, nursing breaks, and return-to-work support continue to be implemented in both letter and spirit across all Company locations.

32. DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016)

Your Company neither made any application nor any proceeding is pending under the Insolvency and Bankruptcy Code, 2016 during the year.

33. 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

Your Company has not obtained any one-time settlement of loan from the Banks or Financial Institutions during the year.

34. APPRECIATION:

Your Directors would like to place on record their appreciation for the co- operation and assistance received from the banks, for the utmost confidence reposed in the management by the shareholders and customers during the year under review. Your Directors wish to thank for the services of the executive, staff and workers of the Company at all levels for their dedication, devotion, determination and discipline. The Directors express their profound thanks to the shareholders for their continued support and goodwill and they look forward to the future with confidence.

By Order of the Board of Directors

KATARE SPINNING MILLS LIMITED

SD/-

KISHORE KATARE

MANAGING DIRECTOR

(DIN- 00645013)

Add: 14/30 Ground Floor, B Wing, Katare complex,

Gandhinagar, Bl. No. 10 Solapur 413006

Place: Solapur

Date: 21th August, 2026