Le Merite Exports Ltd Directors Report

To

The Members

Le Merite Exports Limited

Your directors have the pleasure to present the 22^nd Annual Report on the business and operations of your Company along with the Audited Financial Statements for the year ended March 31, 2025.

Financial Results

The Financial Results of the Companys performance for the year under review and those of the previous year are as follows: -

(Rs. In Lakhs)

Particulars	Standalone		Consolidated
	March 31, 2025	March 31, 2024	March 31, 2025	March 31, 2024
Income From Operations	48,011.39	46,810.49	51,474.18	46,815.34
Other Income	880.24	370.93	1,111.39	373.38
Total Income	48,891.62	47,181.42	52,585.57	47,188.72
Expenses [Except Depreciation Expenses]	48,065.85	46,904.06	51,603.35	46,910.86
Profit / (Loss) Before Depreciation,	825.77	277.36	982.22	277.86
Amortization and Taxation
Provision For Depreciation	117.64	46.61	117.64	46.61
Profit / (Loss) Before Extra-Ordinary Items [Net of Tax Expenses]	708.13	230.75	864.58	231.26
Less: Extra-Ordinary Items [Net of Tax Expenses]
Profit / (Loss) Before Tax	708.13	230.75	864.58	231.26
Less: Tax Expenses: -
Current Tax	175.00	60.00	175.00	60.08
Deferred Tax	3.10	(3.56)	3.10	(3.56)
Excess / Short Tax Provision W/off	-	-	-	-
Profit / (Loss) before Minority Interest	-	-	686.48	174.73
Less: Minority Interest	-	-	76.66	0.21
Profit / (Loss) After Tax	530.04	174.30	609.82	174.52
Paid-up Share Capital	2429.86	2348.10	2429.86	2348.10

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COMPANY PERFORMANCE OVERVIEW

During the year under review, your company reported the revenue from operation amounted to Rs. 48,011.39 lakh as against Rs. 46,810.49 lakh during the previous financial year 2023-24. The Net Profit of your Company, for the year amounted to Rs.530.04 lakh as against Rs. 174.30 lakh during the previous financial year 2023-24.

State Of Affairs

The Company is engaged in the business of manufacturing and trading of textile products namely cotton yarn, greige fabric and finished fabric. There is no change in the business of the Company during the financial year ended March 31, 2025.

Material Changes and Commitments Affecting Financial Position Between the End Of The Financial Year And Date Of The Report

There have been no material changes and commitments, which affect the financial position of the Company, that have occurred between the end of the financial year to which the financial statements relate and the date of this report.

INSURANCE

Your Company has taken appropriate insurance for all assets against foreseeable perils.

Dividend

The Board of Directors has decided not to recommend any dividend for the financial year 2024-25 in order to conserve resources and strengthen the companys financial position.

Dividend Distribution Policy of the Company which is available on the website of the Company at the link: https://www.lemeriteexports.com/pdf/Dividend-Distribution- Policy.pdf

Transfer to Reserve

The Company has not transferred any amount to the Reserves for the year ended March 31, 2025.

Capital Structure

The Authorised Share Capital of the company as on March 31, 2025, was Rs. 3500.00 Lakh divided into 3,50,00,000 equity shares of Rs. 10/- each.

The paid-up equity shares capital of the company stood at Rs. 2429.86 Lakh consisting of 2,42,98,600 equity shares of Rs.10/- each.

During the year under review, the Company has issued 14,91,200 Equity Warrants on a preferential basis and 8,17,600 warrants were converted into Equity Shares and

Le Merite Exports Limited Annual Report 2024-25

balance Warrants remain outstanding and are eligible for conversion within the stipulated timeline.

Subsidiary / Joint Ventures / Associates

As on March 31, 2025, the Company has 2 subsidiary companies pursuant to the provisions of section 129(3) of the Companies Act, 2013 read with the Companies (accounts) rules, 2014, a statement containing salient features of financial statements of subsidiaries, associates and joint venture companies in form AOC-1 is annexed herewith and marked as Annexure - I to this Report.

As part of our continued focus on diversification and strategic growth, the Company incorporated a subsidiary on 05.06.2025 named as Le Merite Tactical & Defence Solutions Private Limited. This incorporation marks a significant step in broadening our business portfolio and building specialized capabilities in niche sectors of national importance.

The subsidiary has been established to engage primarily in the manufacturing and supply of advanced textile products, with a particular focus on the defence sector. By leveraging our expertise, infrastructure, and innovation-driven approach, the subsidiary aims to provide high-quality, durable, and technically advanced textile solutions to meet the stringent requirements of defence applications. This initiative aligns with the Companys long-term strategy of entering high-value, technologyintensive markets that offer both growth potential and opportunities to contribute to national priorities.

The incorporation of this subsidiary not only reflects our commitment to creating sustainable growth avenues but also underscores our proactive role in strengthening self-reliance within the defence supply chain. With this milestone, the Company is well-positioned to enhance stakeholder value while supporting critical sectors that drive security, innovation, and economic progress.

The Separate Audited Financial Statements in respect of each of the subsidiaries shall be kept open for inspection at the Registered Office of the Company.

The Company will also make available these documents upon request by any member of the company interested in obtaining the same. The Separate Audited Financial Statements in respect of each of the subsidiaries are also available on the website of the company at www.lemeriteexports.com.

Extracts of Annual Return

Pursuant to Section 92 (3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31, 2025 is available on the Companys website at

www.lemeriteexports.com

Le Merite Exports Limited Annual Report 2024-25

Directors Responsibility Statement

Pursuant to the requirements under Section 134(3)(c) of the Companies Act, 2013, with respect to Directors Responsibility Statement, your Directors hereby confirm the following:

a. In the preparation of the annual accounts for the financial year ended March 31, 2025, the applicable accounting standards have been followed;

b. The directors have selected such accounting policies and applied consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

c. The directors have taken proper and sufficient care towards 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 have prepared the annual accounts on a going concern basis;

e. The directors have laid down internal financial controls, which are adequate and operating effectively;

f. The directors have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Particulars of loans, guarantees and investments covered under Section 186 of the Companies Act, 2013 form part of the notes to the standalone financial statements forming a part of this Annual Report.

Public Deposits

According to Chapter V of the Companies Act, 2013, the Company has not invited/ accepted any deposits from the public during the year ended March 31, 2025. Hence, there were no unclaimed or unpaid deposits as on March 31, 2025.

Investor Education and Protection Fund (IEPF)

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

Le Merite Exports Limited Annual Report 2024-25

Internal Control Systems & Their Adequacy

Your Company has an adequate and effective Internal Control Mechanism in place which is commensurate with the size, scale and complexity of its operations, to ensure efficient conduct of its operations, security of assets, prevention and detection of frauds/errors, accuracy and completeness of accounting records and the timely preparation of reliable financial information as per its Management Information System (MIS). These controls have been designed to provide reasonable assurance about maintaining proper accounting controls for ensuring the reliability of financial reporting, monitoring of operations and protecting assets from unauthorized use or losses, and compliance with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.

Directors and Key Managerial Personnel

The composition of the Board consists of the following persons:

Key Managerial Personnel

Executive Directors

1. Mrs. Sweta Lath Non-Executive, Independent Directors

1. Mr. Narendra Kumar Srivastava

2. Mr. Rohit Agarwal

3. Mr. Jaydeep Purujit Mehta

In accordance with the provisions of the Companies Act, 2013 and the Companys Articles of Association, Mrs. Sweta Lath, Executive Director of the Company, retires by rotation at the ensuing Annual General Meeting of the Company and being eligible offer for re-appointment.

The above re-appointment form part of the Notice of the Annual General Meeting. Meetings of the Board

The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 and Secretarial Standard-1 issued by the Council of the Institute of Company Secretaries of India and approved by the Central Government. During the year, 8 (Eight) Board Meetings were held on the following dates:

Mr. Umashankar	- Chairman and Managing Director
Lath Mr. Abhishek Lath	- Managing Director and Chief Financial Officer
Mr. Sandeep	- Company Secretary and Compliance Officer
Poddar	(Resigned w.e.f. 20.03.2025)
Mr. Arpit Sharma	- Company Secretary and Compliance Officer (Appointment w.e.f. 10.07.2025)

The composition of the Board and the attendance details of the Members are given below:

Name of the Directors	Category	No. of	Meetings
		Held	Attended
Mr. Umashankar Lath	Chairman & Managing Director	8	5
Mr. Abhishek Lath	Managing Director & CFO	8	8
Mrs. Sweta Lath	Executive Director	8	7
Mr. Narendra Kumar Srivastava	Non-Executive, Independent Director	8	7
Mr. Jaydeep Purujit Mehta	Non-Executive, Independent Director	8	8
Mr. Rohit Agarwal	Non-Executive, Independent Director	8	3

Independent Directors Meeting

During the year under review, the Independent Directors met on January 30, 2025, inter alia, to discuss:

Evaluation of the performance of Non-Independent Directors and the Board of Directors as a whole;

Evaluation of the performance of the Chairman of the Company, taking into account the views of the Executive and Non-Executive Directors.

Evaluation of the quality, content, and timeliness of the flow of information between the Management and the Board that is necessary for the Board to effectively and reasonably perform its duties.

All the Independent Directors were present at the Meeting .

Declaration by Independent Directors

All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Grievance Redressal Mechanism [Sebi Complaints Redress System (SCORES)]:

(i) May 25, 2024	(ii) July 26, 2024
(iii) August 14, 2024	(iv) September 06, 2024
(v) October 25, 2024	(vi) November 11, 2024
(vii) December 6, 2024	(viii) March 18,2025

Le Merite Exports Limited Annual Report 2024-25

The investor complaints are processed in a centralized web-based complaints redress system. The salient features of this system are the 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 had received one complaint on the SCORES during the financial year 2024-25 and the same was resolved in the prescribed timeline.

AUDITORS AND AUDITORS REPORT

Statutory Auditors

M/s. Nagori Nuwal & Co., Chartered Accountant was appointed as the statutory auditor of the company.

The Audit Report on the Financial Statements for the Financial Year ended on March 31 2025, issued by M/s. Nagori Nuwal & Co., Chartered Accountants, is unmodified and does not contain any qualifications, reservations, or adverse remarks. The information referred to in Auditors Report is self-explanatory and hence does not require any further clarification.

The first proviso to section 139(1) of the Companies Act, 2013 has been omitted vide section 40 of the Companies (Amendment) Act, 2017 notified on May 07, 2018. Therefore, it is not mandatory for the Company to place the matter relating to the appointment of a statutory auditor for ratification by members at every Annual General Meeting. Hence the Company has not included the ratification of statutory auditors in the Notice of AGM.

During the Year under review, the Auditors have not reported any matter under Section 143 (12) of the Act, therefore no detail is required to be disclosed under Section 134 (3) (ca) of the Act.

Internal Auditor

The Company is having an internal audit department to test the adequacy and effectiveness of Internal Control Systems laid down by the Management and suggests improvement in the systems. Internal Audit Reports are discussed with the Management and are reviewed by the Audit Committee of the Board. During the year, Companys Internal Controls were tested and no reportable weakness in the system was observed.

Secretarial Audit

The Board has appointed M/s. Vijay S. Tiwari & Associates, Practicing Company Secretaries, to carry out the Secretarial Audit pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 for the Financial Year 2024-25. The Secretarial Audit Report for the Financial Year ended March 31, 2025, is annexed herewith and marked as Annexure - II to this Report.

Le Merite Exports Limited Annual Report 2024-25

Further, pursuant to amended Regulation 24A of SEBI Listing Regulations, and subject to approval of members being sought as the ensuing AGM, M/s. Prachi Bansal and Associates, Practicing Company Secretary has been appointed as a Secretarial Auditor to undertake the Secretarial Audit of your Company for the term of five consecutive financial years from FY 2025-26 till FY 2029-30. M/s. Prachi Bansal and Associates has confirmed that they are not disqualified to be appointed as a Secretarial Auditor and is eligible to hold office as Secretarial Auditor of your Company. The Secretarial Audit Report of your Company does not contain any qualification, reservation or adverse remark.

Cost Records & Audit

Maintenance of cost records and requirement of cost audit as prescribed under the provisions of Section 148(1) of the Companies Act, 2013 are not applicable to the business activities carried out by the Company.

Reporting of Frauds by Auditors

During the year under review, the Statutory Auditors, and Secretarial Auditors have not reported any instances of fraud committed in the Company by its officers or employees under Section 143(12) of the Companies Act, 2013.

Awards And Recognition

Your Company has been conferred with the following awards and recognition during the year under review: -

1. Best Export Performance from STEPC for the year 2023-2024, Special Award in the Merchant Export Category.

2. The Company has achieved a remarkable milestone by securing orders worth ^50 crore from the defence sector till date. Crossing this landmark reflects the growing recognition of our capabilities, the trust placed in our products, and our consistent commitment to delivering excellence in this highly specialized and strategic domain. This achievement, which has also been formally intimated to the National Stock Exchange, marks a significant step forward in our journey of growth and contribution to the nations defence preparedness. It stands as a testament to the dedication of our team, our focus on quality and innovation, and our ability to build lasting partnerships in critical sectors.

Reaching this milestone energizes us to pursue even greater opportunities in the future, as we continue to align our efforts with national priorities while creating sustainable value for our stakeholders.

Committees of the Board

The Company has constituted different Committees under the Board that are mandated under the Companies Act, 2013.

Le Merite Exports Limited Annual Report 2024-25

[I] Mandatory Committees

(a) Audit Committee

The Audit Committee of the Board of Directors oversees the Financial Statements and Financial Reporting before submission to the Board.

The Audit Committee is responsible for the recommendation of the appointment, remuneration, performance and oversight of the Internal and Statutory Auditors. It reviews the Reports of the Internal Auditors and Statutory Auditors. The Senior Management Personnel are invited to the meetings of the Audit Committee, along with the Head of Internal Audit.

<p >During the year under review, the Audit Committee met 4 (Four) times to deliberate on various matters. The Meetings were held on May 25, 2024, September 06, 2024, October 25, 2024, and February 10, 2025.

The composition of the Committee and the attendance details of the Members are given below:

Name of the Directors	Category	No. of M Held	eetings Attended
Narendra Kumar Srivastava	Chairman, NonExecutive, Independent Director	4	4
Jaydeep Purujit Mehta	Member, NonExecutive, Independent Director	4	4
Abhishek Lath	Member, Managing Director & CFO	4	3

(b) Nomination and Remuneration Committee

Your Company has constituted the Nomination and Remuneration Committee of the Company pursuant to the provisions of Section 178 of the Companies Act, 2013. The functions of this Committee include identification of persons who are qualified to become Directors and who may be appointed as Senior Management, formulation of criteria for determining qualifications, positive attributes, independence, recommendations of their appointments to the Board, evaluation of every Directors performance, formulation of Remuneration Policy to include recommendation of remuneration for Directors, Key Managerial Personnel and Senior Management.

At present, there are 3 (Three) Members of the Nomination and Remuneration Committee, in which all are Non-Executive & Independent Directors.

During the year under review, the Nomination and Remuneration Committee met once to deliberate on various matters. The Meeting was held on January 30, 2025.

Le Merite Exports Limited Annual Report 2024-25

The composition Committee and the attendance details of the Members are given below:

Name of the Directors	Category	No. of Meetings
		Held	Attended
Narendra Kumar Srivastava	Chairman, Non-Executive, Independent Director	1	1
Jaydeep Purujit Mehta	Non-Executive, Independent Director	1	1
Rohit Agarwal	Non-Executive, Independent Director	1	1

Remuneration Policy. Details of Remuneration and Other Terms of Appointment of Directors.

The Board has, on the recommendation of the Nomination and Remuneration Committee framed a Policy for Selection and Appointment of Directors, Senior Management and their remuneration. This Policy inter-alia includes:

(i) Criteria of Selection of Non-Executive Directors

- Non-Executive Directors will be selected on the basis of Identification of Industry / subject leaders with strong experience. The advisory area and therefore the role may be defined for each independent director.

- The Nomination and Remuneration Committee shall ensure that the Candidate identified for Appointment as a Director is not disqualified for Appointment under Section 164 of the Companies Act, 2013.

- In case of Appointment of Independent Directors, the Nomination and Remuneration Committee shall satisfy itself with regard to the independent nature of the Directors vis-a-vis the Company so as to enable the Board to discharge its function and duties effectively.

(ii) Remuneration

- Pursuant to recommendation of the Nomination and Remuneration Committee and Approval of the Board of Directors, Independent Directors are entitled to sitting fees for attending Board Meetings and Committee Meetings within the overall limits prescribed under the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, In addition, Independent Directors shall be entitled to receive reimbursement of expenses for participation in the Board/Committee Meetings.

(c) Stakeholders Relationship and Grievance Committee

Your Company has reconstituted the Stakeholders Relationship and Grievance Committee of the Company pursuant to Section 178 of the Companies Act, 2013 which comprises of 4 (Four) Directors out of which Two are Non-executive

Le Merite Exports Limited Annual Report 2024-25

Independent Directors and Two are Managing Directors of the Company. The committee is headed by Mr. Jaydeep Purujit Mehta.

During the year under review, the Stakeholders Relationship and Grievance Committee met once on January 30, 2025, in order to take on note the Share Transfer / Transmission / Demat of Shares / Sub-Division as intimated by the RTA of the Company.

The composition of the Share Transfer and Stakeholders Relationship Committee is given below:

Name of the Directors	Category	No. of M	eetings
		Held	Attended
Jaydeep Purujit Mehta	Chairman, NonExecutive, Independent	1	1
Narendra Kumar Srivastava	Non-Executive, Independent Director	1	1
Abhishek Lath	Managing Director and CFO	1	1
Umashankar Lath	Chairman and Managing Director	1	1

Whistle Blower Policy and Vigil Mechanism

The Company has a robust vigil mechanism through its Whistle Blower Policy approved and adopted by the Board of Directors of the Company in compliance with the provisions of Section 177 (10) of the Act and Regulation 22 of the Listing Regulations.

The Policy provides protection to the directors, employees and business associates who report unethical practices and irregularities.

Any incidents that are reported are investigated and suitable action is taken in line with the Whistle Blower Policy. However, no complaint of this nature has been received by the Audit Committee during the Fiscal year 2025. The Whistle Blower Policy of the Company can be accessed at the website of the Company at www.lemeriteexports.com.

Risk Management Policy

The Management has put in place adequate and effective system and manpower for the purposes of risk management. In the opinion of the Board, following would threaten the existence risk of the Company:

Le Merite Exports Limited Annual Report 2024-25

Staying one step ahead of risk

The Company has laid down a well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact, and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitoring of both business and non-business risks.

APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

A case was filed by Count N Denier Exim Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 against the Company, seeking initiation of Corporate Insolvency Resolution Process. The matter was heard by the Honble National Company Law Tribunal (NCLT), and after due consideration, the petition was dismissed by the NCLT on 26th June 2025.

Orders passed by the Regulators

There have been no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Companys operations in future.

Disclosures under Sexual Harassment of Women

The Company has zero tolerance towards sexual harassment at the workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at 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. Internal Complaints Committee (ICC) has been constituted to consider & redress all sexual harassment complaints. The Company is committed to providing equal opportunities without regard to race, caste, sex, religion, color, nationality, disability, etc. All women associate (permanent, temporary, contractual and trainees) as well as any women visiting the Companys office premises or women service providers are covered under this Policy. All employees are treated with dignity with a view to maintaining a work environment free of sexual harassment whether physical, verbal or psychological.

During Fiscal year 2025, the Company has not received any complaints of sexual harassment.

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company has zero tolerance towards any form of sexual harassment and is committed to providing a safe and conducive work environment for all its employees. The Company has in place a policy on prevention, prohibition, and redressal of sexual harassment at workplace in accordance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and rules made thereunder. An Internal Complaints Committee (ICC) has been constituted to redress complaints received regarding sexual harassment.

Le Merite Exports Limited Annual Report 2024-25

The Committee is responsible for conducting inquiries and making recommendations in accordance with the law.

During the financial year 2024-25, the following are the details of complaints received and disposed of under the Act:

Number of complaints of Sexual harassment received during the year: Nil

Number of complaints disposed of during the year: Nil

Number of complaints pending for more than 90 days: Nil

Maternity Benefit Provided by the Company under Maternity Benefit Act 1961

The Company declares that it has duly complied with the provisions of the Maternity Benefit Act, 1961. The statutory benefits prescribed under the Act, including paid maternity leave, continuity of salary and service during the leave period, and postmaternity support such as nursing breaks and flexible return-to-work options, as applicable has been extended to all the eligible women employees. The Company remains committed to fostering an inclusive and supportive work environment that upholds the rights and welfare of its women employees in accordance with applicable laws.

Foreign Exchange Earnings Outgo

During the period under review, there was Rs.32,121.51 lakhs Foreign Exchange Earnings and Rs.218.86 lakhs Foreign Exchange Outflow and for previous Financial Year Rs. 33,003.61 lakhs Foreign Exchange Earnings and Rs. 223.75 lakhs Foreign Exchange Outflow.

Managerial Remuneration and Particulars of Employees

The Disclosures with respect to the Remuneration of Directors and Employees as required under Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 along with, a statement containing particulars of Employees as required under Section 197 of Companies Act, 2013 read with Rule 5(2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith and marked as Annexure - "III" and form part of this report.

Particulars of Contracts and Arrangements with Related Parties

All related party transactions are entered on an arms length basis, in the ordinary course of business and are in compliance with the applicable provisions of the Companies Act, 2013. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Accordingly, no transactions are being reported in Form AOC-2 in terms of Section 134 of the Act read with Rule 8 of the Companies (Accounts) Rules,

Le Merite Exports Limited Annual Report 2024-25

2014. However, the details of the transactions with the Related Party are provided in the Companys financial statements in accordance with the Accounting Standards.

Internal Financial Control

The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness in the design or operation was observed. The internal financial control of the company is adequate to ensure the accuracy and completeness of the accounting records, timely preparation of reliable financial information, prevention and detection of frauds and errors, safeguarding of the assets, and that the business is conducted in an orderly and efficient manner.

Depository System

As the Members are aware, your Companys shares are tradable compulsorily in Electronic Form and the Company has established connectivity with both the Depositories in the Country i.e., NSDL and CDSL. In view of the various advantages offered by the Depository System, Members are requested to avail of the facility of dematerialization of the Companys shares on either of the aforesaid Depositories.

Code of Conduct

The Board of Directors has approved a Code of Conduct, which is applicable to the Members of the Board and all Employees in the course of day-to-day business operations of the Company. A copy of the Certificate of Compliance thereof is annexed herewith and marked as Annexure - IV.

Secretarial Standards

The Directors state that the applicable secretarial standards i.e., SS-1 and SS-2, relating to Meeting of the Board of Directors and Meeting of General Meeting, respectively, have been duly followed by the Company.

Listing Of Shares on The Stock Exchange

The Companys equity shares are listed on Emerge Platform of the National Stock Exchange of India Limited.

Business responsibility & sustainability report (BRSR)

The Business Responsibility & Sustainability Reporting as required by regulation 34(2) (f) of the SEBI (listing obligations and disclosure requirement) regulations, 2015 is not applicable to the company for the financial year ending, March 31, 2025.

Corporate Governance & Management Discussion and Analysis Report

The Company is committed to maintaining the highest standards of corporate governance and transparency. We ensure that we evolve & follow the corporate governance guidelines & best practices sincerely to boost long-term shareholder value legally, ethically & sustainably. We consider it an inherent responsibility to

Le Merite Exports Limited Annual Report 2024-25

disclose timely and accurate information regarding its operations and performance. We also endeavour to maximize shareholders value and respect minority rights in all our business decisions.

Our company is Listed on Emerge Platform of the National Stock Exchange of India Limited (NSE), by virtue of Regulation 15 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 the compliance with the Corporate Governance provisions as specified in regulation 17 to 27 and Clause (b) to (i) and (t) of subregulation (2) of Regulation 46 and Para C, D and E of Schedule V is not applicable to the company.

Education, Training and Development

In an ever-changing and fast-paced corporate world, training and development is an indispensable function and management of Le Merite believes that training presents a prime opportunity to expand the knowledge base of all employees. A structured training and development program is organized for employees to have consistent experience and background knowledge. We encourage a culture of continual learning among employees through various Training & development sessions within the organization. Le Merite team always focus on producing targeted and tangible results for the business, treating it seriously and considering it a capital investment and making it results-driven. The results from our training and development initiatives have been very positive and clearly presented the enhanced productivity, efficiency & effectiveness.

Board Policies

We seek to promote and follow the highest level of ethical standards in all our business transactions guided by our value system. The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018 mandate the formulation of certain policies for all listed companies. The Corporate Governance policies are available on the Companys website, at www.lemeriteexports.com The policies are reviewed periodically by the board and updated as needed.

Corporate Social Responsibility

The brief outline of the CSR policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure - V of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. This Policy is available on the Companys website at www.lemeriteexports.com.

Chief Executive Officer (CEO) / Chief Financial Officer (CFO) Certification

Regulation 17(8) of the Listing Obligations and Disclosures Requirements formulated by the Securities and Exchange Board of India (SEBI), the CEO/CFO certification is not applicable to your Company as it is an SME Listed Entity.

Conservation of Energy and Technology Absorption

The particulars of Conservation of Energy and Technology Absorption as required under Section 134(3)(m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 is annexed herewith and marked as Annexure - "VII" and form part of this report.

Green Initiative

The MCA had undertaken the Green Initiative in Corporate Governance by allowing paperless compliances by companies through electronic mode. We request all the shareholders to support the Green Initiative of the Ministry of Corporate Affairs and the Companys continuance towards greener environment by enabling the service of the Annual Report, AGM Notice and other documents electronically to your email address registered with your Depository Participant/ Registrar and Share Transfer Agent. The Company appeals to you, its Shareholders, who are yet to register the Email addresses that they take necessary steps for registering the same so that you can also become a part of the initiative and contribute towards a greener environment.

Familiarization programmer for Independent Director:

The Company proactively keeps its directors informed of the activities of the Company, its Management and operations and provides an overall industry perspective as well as issues being faced by the industry.

Board Evaluation:

Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the performance evaluation of the chairman and Non-Independent Directors was carried out by the Independent Directors in their separate Meeting also reviewed the performance of the Board as whole.

The Nomination and Remuneration Committee has defined the evaluation criteria and procedure for the performance evaluation of the Board of Directors

The Boards functioning was evaluated on various aspects, including inter alia degree of fulfilment of key responsibilities, Board structure and Composition, effectiveness of Board process, information and functioning.

The Directors were evaluated on aspects such as attendance and contribution at Board/ Committee Meetings and guidance /support to the Management outside Board/Committee Meetings. In addition, the Chairman was also evaluated on key aspects of his role, including setting the strategic agenda of the Board and encouraging active engagement of all Board Members.

Evaluation of Independent Directors was done by the entire Board, excluding the director being evaluated.

Le Merite Exports Limited Prevention of Insider Trading:

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

The insider trading Policy of the Company covering the code of practices and procedures for fair disclosures of unpublished price-sensitive information and the code of conduct for the prevention of Insider Trading is available on the website: www.lemeriteexports.com

Other Disclosures

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

b. The Company has not issued equity shares with differential rights as to dividend, voting or otherwise;

c. The Company has not issued any sweat equity shares/ESOP/ RSUs to its directors or employees; and

d. There was no revision of financial statements and the Boards report of the Company during the year under review.

Acknowledgement

Your directors wish to thank the Shareholders, Clients, Bankers and Stakeholders at large for their continued support during the year. Your directors also wish to place on record their appreciation for the dedication and commitment of the Employees at all levels.

For and on Behalf of the Board of Directors

Sd/-

Abhishek Lath

Managing Director and CFO

DIN:00331675

Dated: September 8, 2025

Place: Mumbai