N K Industries Ltd Directors Report

To,

The Members,

Your Directors are pleased to present the 38 th Annual Report along with the Standalone and Consolidated Audited Financial Statements of your Company for the Financial Year ended on 31st March, 2026.

? FINANCIAL RESULTS

The figures for the Year ended 31 st March, 2026 are also Ind AS compliant.

The financial highlights are depicted below:

( In Lacs)

PARTICULARS	Standalone		Consolidated
	Year Ended 31.03.2026	Year Ended 31.03.2025	Year Ended 31.03.2026	Year Ended 31.03.2025
Revenue from operations	240.00	240.00	1244.89	1612.82
Other Income	48.47	64.51	52.07	67.83
Total Income	288.47	304.51	1296.96	1680.65
Total Expenditure	339.48	373.37	1412.73	1787.56
Profit / (Loss) before Finance Cost, Depreciation & Amortization and Tax Expenses	(51.01)	(68.86)	(115.77)	(106.91)
Finance Cost	3.84	0.73	4.09	0.90
Depreciation & Amortization	230.95	241.63	245.65	255.72
Profit/(Loss) Before Tax	(285.79)	(311.22)	(365.52)	(363.53)
(i) Current Tax	-	--	--	--
(ii) Deferred Tax	8.44	(3.41)	3.20	8.26
(iii) Earlier period tax (written back)	--	--	--	--
Total Tax (i+ii+iii)	8.44	(3.41)	3.20	8.26
Profit /(Loss) after Tax	(277.35)	(314.63)	(362.31)	(355.27)
Other Comprehensive Income	3.45	(38.66)	3.45	(38.66)
Items that will not be reclassified to profit and loss	3.45	(38.66)	3.45	(38.66)
Total Comprehensive Income	(273.90)	(353.28)	(358.86)	(393.93)

Note: The above figures are extracted from the standalone and consolidated financial statements.

? PERFORMANCE HIGHLIGHTS

The key aspects of revenue and profits for the financial year 2025-26 from the Companys Standalone and Consolidated Results are as follows:

REVENUE STANDALONE

Our total income on a Standalone basis for the financial year is 240 Lakhs which is same as 240 Lakhs in the previous year. Loss for the year is 277.35 Lakhs as compared to 314.63 Lakhs of last year.

REVENUE CONSOLIDATED

Our total income on a consolidated basis decreased from 1296.96 Lakhs in previous year to 1680.65 Lakhs in the current year. Loss for the year is 362.31 Lakhs and 355.27 Lakhs in the last year.

? STATE OF COMPANYS AFFAIRS AND FUTURE OUTLOOK

With a view to curb the invariable expenditure and also generate a fixed monthly income, the Company decided and entered into a Dry Lease Agreement with its Group Company viz. M/s. N K Proteins Private Limited on 15 th April, 2019, whereby the Factory Premise of the Company situated at Kadi Mehsana has been given on lease to M/s. N K Proteins Private Limited. The said agreement was extended for a further period of one year since then and the same has been further extended vide supplemental agreement dated 01st April, 2026.

? CHANGE IN NATURE OF BUSINESS, IF ANY

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

? SUBSIDIARY/ JOINT VENTURE COMPANIES /ASSOCIATES

Your Company has three wholly owned subsidiaries as on 31 st March, 2026. The Board of Directors also reviewed the affairs of the subsidiary companies. In accordance with the provisions of Section 129(3) of the Companies Act, 2013, we have prepared Consolidated Financial Statements of the Company and its Subsidiaries, which forms part of this Annual Report. The accounts of Joint Venture i.e. AWN Agro Private Limited has not been consolidated. The reason for non- consolidation is due to discontinuation of control on the management and financial affairs of the Joint Venture Company.

Further a statement containing the salient features of the financial statements of our Subsidiary Companies and Joint Venture Company in the prescribed format AOC-1 is appended as Annexure-A to the Boards report.

? SHARE CAPITAL

As on 31 st March, 2026, the Authorized Share Capital of the Company is 30,00,00,000/- (Rupees Thirty Crores) divided into 2,50,00,000 (Two Crores Fifty Lakhs) Equity Shares of 10/- (Rupees Ten) each and Preference Share Capital 5,00,000 (Five Lakhs) of 100 (Rupees Hunderd) each and Paid-up Share Capital of the Company is 6,00,99,000/-divided into 60,09,900 (Sixty Lakh Nine Thousand Nine Hundred) Equity Shares of 10/- (Rupees Ten) each. The Company has not issued shares with differential voting rights nor granted stock options nor sweat equity.

? DIVIDEND AND RESERVES

Your Directors express their inability to recommend any dividend for the year 2025-26 owing to accumulated losses of the Company. In view of this, your Company is unable to transfer any funds to the Reserves and Surplus Account.

? DEPOSITS

The Company has neither invited nor accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 from the public during the year ended 31 st March, 2026.

? PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN SUB-SECTION (1) OF SECTION 188.

All related party transactions entered into during FY 2025-26 were on an arms length basis and in the ordinary course of business and were in compliance with the applicable provisions of the Companies Act, 2013 (the Act) and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

All related party transactions are placed before the Audit Committee for review and approval of the Committee and also to the Board for approval. The policy on materiality of related party transactions and dealing with related party transactions as approved by the Board is available on the Companys website.

The details of related party transactions entered into by the Company are provided in Form AOC 2 given as Annexure B of Directors Report. There are no materially significant related party transactions made by the Company with Promoters, Key Managerial Personnel or other designated persons which may have potential conflict with interest of the Company at large. The Company has developed a Related Party Transactions Policy through Standard Operating Procedures for the purpose of identification and monitoring of such transactions.

? MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENT RELATE AND THE DATE OF THE REPORT

There are no other material changes that would affect the financial position of the Company.

? CORPORATE GOVERNANCE

All the mandatory provisions of Corporate Governance as prescribed in Regulations 17 to 27 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are not applicable to the Company as it does not fall under the criteria of its applicability pursuant to Regulation 15 of SEBI Listing Regulations.

? MANAGEMENT DISCUSSION AND ANALYSIS REPORTS

In terms of the Regulation 34(e) read with Schedule V of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, MDA covering details of Risks and Concerns, Internal Control Systems and their Adequacy, Discussion on Financial Performance with respect to Operational Performance etc. for the year under review is set out in this Annual Report as Annexure C .

? PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 of Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is annexed as Annexure D .

Further no employee of the Company was employed during the year drawing remuneration exceeding the limits as prescribed under Rule 5(2) of the (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Hence the information under Rule 5(2) is not applicable.

? BOARD DIVERSITY

The Company recognizes and embraces the benefits of having a diverse Board of Directors and believes that increasing diversity at Board level is an essential element for maintaining a competitive advantage in the complex business that it operates.

The Board of Directors has also adopted a policy on Board Diversity which sets out the approach to diversify the Board of Directors. The Board Diversity Policy is available at our website: https://www.nkindustriesltd.com/investor/ .

? PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

The Company has not given any loans or guarantees during the year under review within the purview of section 186 of the Companies Act, 2013. The details of the investments made by Company are given in the notes to investments in the financial statements.

? DECLARATION BY INDEPENDENT DIRECTORS

The Company has received declaration from each Independent Director of the Company under section 149 (7) of the Companies Act, 2013 that he/she meets the criteria of independence laid down in section 149 (6) of the Companies Act, 2013.

? BOARD EVALUATION

The Companies Act, 2013 states that the formal annual evaluation needs to be made by Board of its own performance and that of its Committees and individual Directors, Schedule IV of the Companies Act, 2013 states that performance evaluation of the Independent Directors shall be done by the entire Board of Directors, excluding the director being evaluated.

The evaluation of all the Directors and the entire Board was conducted based on the criteria and framework adopted by the Board.

The Board approved the evaluation results as allotted by the Nomination and remuneration committee. The Companies Act, 2013 states that the formal annual evaluation needs to be made by board of its own performance.

? APPOINTMENT AND RESIGNATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with the provisions of Section 152(6) of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Hasmukhbhai Patel (DIN: 06587284), Whole-time Director of the Company, retires by rotation at the ensuing Annual General Meeting and, being eligible, has offered himself for re-appointment.

During the year under review, the following changes took place in the Key Managerial Personnel of the Company:

Name	Designation	Nature of Change	Effective Date
Ms. Jelin Dodiya	Company Secretary & Compliance Officer	Resigned	January 2, 2026
Ms. Ashna Harishkumar Pahwa (Membership No. A56002)	Company Secretary & Compliance Officer	Appointed	March 13, 2026

The Board places on record its sincere appreciation for the valuable services rendered by Ms. Jelin Dodiya during her tenure with the Company.

Save and except the aforesaid changes, there were no other changes in the composition of the Board of Directors and the Key Managerial Personnel of the Company during the year under review.

? COMPLIANCE WITH SECRETARIAL STANDARD

The Company has Complied with the applicable Secretarial Standards (as amended from time to time) on meetings of the Board of Directors and Meeting of Shareholders (AGM) i.e. SS-1 and SS-2 issued by The Institute of Company Secretaries of India and approved by Central Government under section 118(10) of the Companies Act, 2013.

? BOARD MEETINGS/ DETAILS OF OTHER MEETINGS

The Board of the Company is endlessly focused for the growth, expansion of the Company. It is further involved to strategize the optimum utilization of the available resources and to reduce cost so as to improve the profitability of the Company and also to generate additional opportunities for better performance as a whole.

The Management of the Company is also striving towards becoming a 100% compliant entity and to improve its investor relations by sharing latest and correct information with its stakeholders and thereby creating a transparent atmosphere.

The Board met 5 times during the year under review viz. on 23 rd May 2025, 8th August 2025, 10th November 2025, 4th February 2026 and 13th March 2026 . The Board held at least one meeting in each quarter and the gap between any two meetings was not more than one hundred and twenty days as prescribed under the Companies Act, 2013.

Details of the Directors, their positions, attendance record at Board meetings and last Annual General Meeting held and convened during the financial year are as follows:

Sr. No.	Name of directors	Designation	Number of Meetings Attended / Total Meetings held during the year 2025-26	Attended AGM on 29 th September, 2025
1.	Mr. Nimish K. Patel	Chairman and Managing Director	5/5	\u221a
2.	Mr. Hasmukh K. Patel	Whole Time Director	5/5	\u221a
3.	Mr. Snehal Patel	Independent Director	5/5	\u221a
4.	Ms. Himanshi M. Shah	Independent Woman Director	5/5	\u221a

? INDEPENDENT DIRECTORS MEETING

As per Schedule IV of the Companies Act, 2013, a separate meeting of Independent Director was held on 4 th February 2026 at office of the company situated at Ahmedabad to discuss the agenda items as required under the Companies Act, 2013.

? COMMITTEES MEETING

As on 31 st March, 2026 the Board had three committees i.e. Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee. All committees are properly constituted with proper composition of Independent Directors as mentioned in relevant provisions of Companies Act, 2013.

? AUDIT COMMITTEE AND ITS MEETINGS:

Audit Committee met 4 times during the year under review on 23 rd May 2025, 8th August 2025, 10th November 2025 and 4th February 2026.

Constitution of Audit Committee was as per the following:

Sr. No.	Name of the Director	Status in Committee	DIN	Total Meetings Attended/ Total Meetings Held
1.	Mr. Snehal Patel	Chairman & Member	01655758	4/4
2.	Mr. Hasmukh Patel	Member	06587284	4/4
3.	Ms. Himanshi Shah	Member	10373495	4/4

? NOMINATION AND REMUNERATION COMMITTEE AND ITS MEETINGS:

The Nomination and Remuneration Committee met four (4) times during the financial year under review on 23 rd May, 2025, 8th August, 2025, 4th February, 2026 and 13th March, 2026.

During the year under review, there was a change in the composition of the Nomination and Remuneration Committee. Mr. Hasmukh K. Patel ceased to be a Member of the Committee, and Mr. Nimish Keshavlal Patel was inducted as a Member of the Committee with effect from 30 th March, 2026, pursuant to a Circular Resolution passed unanimously by the Board of Directors with their consent on 30th March, 2026.

The composition of the Nomination and Remuneration Committee and attendance of its members at the meetings held during the financial year are as under.

Sr. No.	Name of the Director	Status in Committee	DIN	Total Meetings Attended/ Total Meeting Held
1.	Mr. Snehal Patel	Chairman & Member	01655758	4/4
2.	Mr Hasmukh Patel	Member (upto 30.03.2026)	06587284	4/4
3.	Ms. Himanshi Shah	Member	10373495	4/4
4.	Mr. Nimish K Patel	Member (w.e.f. 30.03.2026)	00240621	0/4

? STAKEHOLDERS RELATIONSHIP COMMITTEE AND ITS MEETING:

Stakeholders Relationship Committee met 4 times during the year under review on 23 rd May, 2025, 8th August, 2025, 10th November, 2025 and 4th February, 2026.

Constitution of Stakeholders Relationship Committee was as per the following:

Sr. No.	Name of the Director	Status in Committee	Nature of Directorship	Total Meetings Attended/ Total Meeting Held
1.	Mr. Snehal Patel	Chairman & Member	Independent Director	4/4
2.	Mr. Hasmukh K Patel	Member	Whole Time Director	4/4
3.	Ms. Himanshi Shah	Member	Independent Woman Director	4/4

? OTHER INFORMATION RELATED TO BOARD COMMITTEES:

Name of the Committee	Highlights of Duties, Responsibilities and Activities
Audit Committee	The Audit Committee reviewed the financial reporting process, internal financial controls, internal audit reports, statutory audit observations, related party transactions and other matters within its terms of reference. All the recommendations made by the Audit Committee during the financial year were accepted by the Board of Directors. The Company has established a Vigil Mechanism/Whistle Blower Policy to enable Directors and employees to report genuine concerns relating to unethical behaviour, actual or suspected fraud, or violation of the Company\u2019s Code of Conduct. No person has been denied access to the Chairperson of the Audit Committee. The Company has also formulated a Policy on Related Party Transactions in accordance with the provisions of the Companies Act, 2013 and the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Vigil Mechanism Policy and the Related Party Transactions Policy are available on the Company\u2019s website at https://www.nkindustriesltd.com/investor/
Nomination and Remuneration Committee	The Committee identifies persons who are qualified to become Directors and Senior Management Personnel and recommends their appointment, re-appointment and remuneration to the Board. The Committee oversees the implementation of the Nomination and Remuneration Policy and periodically reviews the remuneration structure of Directors, Key Managerial Personnel and Senior Management Personnel to ensure that it is aligned with the Company\u2019s objectives, industry practices and statutory requirements. The Nomination and Remuneration Policy framed by the Committee is available on the Company\u2019s website at https://www.nkindustriesltd.com/investor/
Stakeholders Relationship Committee	The Committee oversees and reviews investor services and redressal of shareholders\u2019 and investors\u2019 grievances relating to transfer/transmission of shares, dematerialization, issue of duplicate share certificates and other investor-related matters. During the financial year under review, the Company did not receive any investor grievances or complaints. Accordingly, no investor grievance remained pending as on 31 st March, 2026.

? NOMINATION AND REMUNERATION POLICY

The Policy of the Company on Directors appointment and remuneration including criteria for determining qualifications, positive attributes, Independency of a Director and other matters provided under sub-section (3) of section 178 of The Companies Act, 2013, adopted by the board is available on the website i.e https://www.nkindustriesltd.com/investor/

We affirm that the remuneration paid to the Directors is as per the term laid out in the Nomination and remuneration policy of the company.

? DIRECTORS RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Clause (c) of Sub-Section (3) of Section 134 of the Companies Act, 2013, which states that-

? in the preparation of the annual accounts for the year ending 31st March, 2026, the applicable accounting standards have been followed along with proper explanation relating to material departures;

? 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 and loss of the company for that period;

? the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

? the directors had prepared the annual accounts on a going concern basis;

? the Directors have laid down Internal Financial Controls to be followed by the Company and that such Internal Financial Controls are adequate and were operating effectively; and

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

? AUDITORS

? Statutory Auditors

As per the provisions of Section 139, 141 of the Companies Act, 2013 and rules made thereunder (hereinafter referred to as The Act), the Company at its 35 th Annual General Meeting(AGM) held on 25th September, 2023 approved the appointment of M/s. (Pankaj R. Shah & Associates, Chartered Accountants (FRN-107361W) as Statutory Auditor for a period of 5 years commencing from the conclusion of 35th AGM till the conclusion of the 40th AGM to be held in the year 2027.

There are certain qualifications made by the Auditors in their Standalone Report for which the Board of Directors hereby give its comments/explanation as under:

? The Company had entered into financial arrangement with National Spot Exchange Ltd (NSEL) through trading and Clearing Member, N.K. Proteins Private Ltd (erstwhile N. K. Proteins Limited (NKPL) (Group Company) by way of purchase and sales of various goods up to financial year 2012-13. The trade payables and trade receivables arising out of the said transactions through National Spot Exchange Limited (NSEL) from the concerns other than the group concerns are subject to confirmations by the respective parties/NSEL and reconciliations/adjustments, if any. Further, NSEL has suspended the trading on 31.07.2013, as per the directions issued by the Government of India, Ministry of Consumer Affairs. NSEL has initiated recovery proceedings against the group company NKPL and also against the company by filing a civil suit in the Honble High Court of Mumbai for an alleged amount of around Rs.937 crores plus interest .and the said proceedings are pending as on date. Further, the Home department, Government of Maharashtra has issued a notification under the Maharashtra Protection of Interest of Depositors (in financial establishments)-Act, 1999 (MPID Act) attaching the Land, Building & Plant & Machinery of the company located at Kadi, Gujarat. The company had challenged the notification issued by Home department of Maharashtra before Honble Gujarat High Court which was disposed off vides its order dated 29th March 2017. The company preferred a Special Leave Petition before the Honble Supreme Court of India against the order of Honble Gujarat High Court and The Honble Supreme Court of India had disposed off the Special Leave Petition on 17th April, 2017 with a observation to file an application before Honble Bombay High Court, Mumbai, and as informed by the management, the company has filed petition before the Honble Bombay High Court in June 2017 which is pending .Besides the above, the company has also filed its objections against the attachment notification before the Designated Special MPID Court, Mumbai.

? The Directorate of Enforcement, Government of India has initiated proceedings against the company under section 5(1) of the prevention of Money Laundering Act, 2002, along with group company NKPL, and by virtue of the provisional attachment order dated 10/03/2015, attached the assets of the company comprising of Land, building,

plant and machinery situated at Survey Nos.719, 720, 721, 732/1, 732/2, 733, 741, 743, 744, 745, Kadi Thol Road, Village Kadi Kasba , taluka- Kadi, District Mehsana-382715 Gujarat. As explained to us, The Company has preferred an appeal before the Honble Appellate Tribunal under the Prevention of Money laundering Act, 2002 against the order of Adjudicating Authority Which is pending for final hearing and adjudication. Further ,the Director of Enforcement (hereinafter referred to as ED), Government of India had preferred an application u/s17(4) of the Prevention of Money Laundering Act, 2002 before the Adjudicating Authority, New Delhi, vide it is Application No.OA/236 of 2018 against the company as well as group company NKPL and the promoters for retention of the seized properties and for continuation of order of freezing the properties, till finalization of the proceedings, of the properties mentioned in the application u/s 17(4) of the PMLA Act, 2002. The company along with Group Company and promoters challenged the show cause notice issued by the adjudicating authority New Delhi, before the Honble High Court of Delhi and the Honble High Court has set aside the said show cause notice. The Director of Enforcement has attached assets of the company, group company NKPL and the promoters of the company by issuing a fresh show cause notice dated 30/08/2018 and the company has filed an appeal before PMLA Appellate Tribunal, Delhi.

? The Government of Maharashtra, (at the instance of Economic offence, wing Mumbai), has filed supplementary Charge sheet dated 25th December, 2018 under the various sections of IPC AND MPID Act against the company and its chairman Shri Nimish Patel. Further MPID Court on the basis of above supplementary charge sheet has issued summons and as stated by the management, the company has complied with said summons. However, the matter is subjudice. Thus, in view of the fact that the said criminal proceedings which have been initiated, inter alia, against the company and its Chairman Shri Nimish Patel are pending.

In addition to the above, the Auditors have made observations under the head Emphasis of Matter, reply to the said observations is as under:-

? Attention is drawn to Note 34 in Standalone Ind AS Financial Statements and according to which company is having accumulated losses (after taking into account the balance of reserves) of Rs 35492.13 lakhs as at 31.03.2026 and the net worth of the company is negative However, as per the business plan submitted by the management to us and accepted by us, The Company is making sincere efforts for the revival of the Business & the management is confident to recover the losses through improved profitability in foreseeable future. Therefore, no provision for the impairment has been made and accounts for the year have been prepared on going concern basis. Further business plan prepared by the management and accepted by us with respect to the subsidiaries company i.e. Banpal Oil Chem Private limited and NK OIL Mills Private limited, (Except Tirupati Retail India Pvt ltd where proper provision of Impairment has been done ) the management is confident to also revive the operations of the loss making subsidiary companies, hence no provision for impairment in the fair value of the investment made in the said subsidiary companies has been made in the books of accounts.

? Attention is invited to Note 40 in Standalone Ind AS Financial Statements and according to the same:

The Income Tax Department had carried out survey u/s 133 of the Income tax Act, 1961(the IT Act) on the company along with other group companies during FY 2013-14 and had ordered a special audit of the books of the company u/s 142(2A) of the IT Act, 1961, for AY 2011-12 & A.Y 12-13. The department had raised a demand of Rs 86.00 lakhs A.Y.2014-15 on the company for the aforesaid assessment years and the said demand has been disputed by the company and the company has initiated appellate proceedings before appropriate authorities. The said amount has been shown as contingent liability in the notes forming part of standalone financial statements. Further ,Income tax department has passed an attachment order on 22.04.2015 & 14.08.2015 by which it has attached properties of the company in pursuant to a demand, the details of the properties attached which are in the name of company is as under:

? 803, Manas Complex, Opp Star Bazaar , Nr Jodhpur Cross road, Satellite, Ahmedabad 380015.

? 603 Manas Complex, Opp Star Bazaar , Nr Jodhpur Cross road, Satellite, Ahmedabad 380015.

? Land, situated at Survey Nos.719, 720, 721, 732/1, 732/2, 733, 741, 743, 744, 745, kadi Thol Road, Village Kadi Kasba , Taluka- Kadi, District Mehsana-382715

? Factory Building Situated at Survey No 745, Kadi Thol Road, Village Kadi Kasba , Taluka- Kadi, District Mehsana-382715

? Attention is invited to note 31 in Standalone Ind AS Financial Statements and according to which Search & Seizure action U/S 132 of the Income Tax Act took place on 24.2.99. The Income Tax department had raised demand of Rs. 3312 lakhs vide the block assessment Order dt. 30.4.2001. In case of the company, the Honble Income Tax Appellate Tribunal (ITAT), Ahmedabad has subsequently given partial relief to the extent of Rs. 2884 lakhs. The company had preferred an appeal before the Honble High Court of Gujarat against the order of Honble ITAT, Ahmedabad. The Honble Gujarat High Court vide its order dated 20th June,2016 had given partial relief on some of the grounds and had also dismissed some of the grounds of the company. Against the grounds dismissed by Honble High Court of Gujarat, the company had further preferred an appeal before Honble Supreme Court of India, and the Honble Supreme Court of India vide order dated 16th January,2017

had dismissed the appeal of the Company. The Company had already provided an amount of Rs 288 lakh against the grounds dismissed by Honble ITAT, Ahmedabad during F.Y 2002-03 as well as Rs 127 lakh was provided in the books of accounts for the Assessment year in question for the interest payable up to 31-03-2005 during F.Y 2004-05. However, in view of the management and on the basis of the Judgment of the Honble Gujarat High Court, the amount provided/paid by the company towards total demand shall result in refund to the company. Pending effect of the various orders of adjudicating authorities by the Income Tax Department, the Company is yet to provide final entries in its books of accounts even during the year under review

? Attention is invited to note 42 in Standalone Ind AS Financial Statements and according to which the Sales Tax Department has completed the assessment proceedings for various assessment years and raised demand of Rs. 3314.22 lakhs (net of recovery) for the earlier financial years. The company has not made any provision for the above demand raised by the sales tax authority in its books of accounts as in view of the Management, the said demand shall not withstand before the Appellate Authorities and the company has already preferred an appeal before the appellate authority which is still pending..

? Attention is invited to note 45 in Standalone Ind AS Financial Statements and according to which the balance confirmation from the suppliers, customers as well as to various loans or advances, capital advances given, certain non-moving banks & Fixed Deposit with Bank have been called for by the company , but the same are awaited till the date of audit. Thus, the balances of receivables, capital advances, trade payables as well as loans and advances, certain non-moving bank balances and Fixed Deposit balance have been taken as per the books of accounts submitted by the company and are subject to confirmation from the respective parties.

? Attention is invited to note 39 in Standalone Ind AS Financial Statements and according to which the Government of Maharashtra, (at the instance of Economic offence, wing Mumbai), has filed supplementary Charge sheet dated 25th December, 2018 under the various sections of IPC AND MPID Act against the company and its chairman Shri Nimish Patel. Further MPID Court on the basis of above supplementary charge sheet has issued summons and as stated by the management, the company has complied with said summons. However, the matter is subjudice. Thus, in view of the fact that the said criminal proceedings which have been initiated, inter alia, against the company and its Chairman Shri Nimish Patel are pending.

? Attention is invited to Note 42 in Standalone Ind AS Financial Statements which states that the company has received a notice from income tax department for the attachment of its registered office at 7th Floor, Popular House, Opp. Sales India, Ashram Road, Ahmedabad 380009 with respect to demand raised by them as detailed in note 40 of the financial statements.

? On the basis of certificate received from the Management of Holding company, the holding company does not have any control on its joint Venture viz AWN AGRO PRIVATE LIMITED and hence no consolidation of the said joint venture is taken in to accounts while consolidation of accounts.

The qualification made by the Auditors in their Consolidated Report for which the Board of Directors hereby give its comment/explanation as under:

? The Holding Company had entered into financial arrangement with National Spot Exchange Ltd (NSEL) through trading and Clearing Member, N.K. Proteins Private Ltd (erstwhile N. K. Proteins Limited (NKPL) (Group Company) by way of purchase and sales of various goods up to financial year 2012-13. The trade payables and trade receivables arising out of the said transactions through National Spot Exchange Limited (NSEL) from the concerns other than the group concerns are subject to confirmations by the respective parties/NSEL and reconciliations/adjustments, if any. Further, NSEL has suspended the trading on 31.07.2013, as per the directions issued by the Government of India, Ministry of Consumer Affairs. NSEL has initiated recovery proceedings against the group company NKPL and also against the Holding company by filing a civil suit in the Honble High Court of Mumbai for an alleged amount of around Rs.937 crores plus interest and the said proceedings are pending as on date. Further, the Home department, Government of Maharashtra has issued a notification under the Maharashtra Protection of Interest of Depositors (in financial establishments)-Act, 1999 (MPID Act) attaching the Land, Building & Plant & Machinery of the Holding company located at Kadi, Gujarat. The Holding company had challenged the notification issued by Home department of Maharashtra before Honble Gujarat High Court which was disposed off vide its order dated 29th March 2017. The Holding company preferred a Special Leave Petition before the Honble Supreme Court of India against the order of Honble Gujarat High Court and The Honble Supreme Court of India had disposed off the Special Leave Petition on 17th April, 2017 with an observation to file an application before Honble Bombay High Court, Mumbai, and as informed by the management, the Holding company has filed petition before the Honble Bombay High Court in June 2017 which is pending. Besides the above, the Holding company has also filed its objections against the attachment notification before the Designated Special MPID Court, Mumbai.

? The Subsidiary Company Tirupati Retail (India) Pvt ltd had entered into financial arrangement with National Spot Exchange Ltd (NSEL) through trading and Clearing Member, N.K. Proteins Private Limited erstwhile N.K Proteins Limited (NKPL) by way of purchase and sales of various goods up to financial year 2013-14. The trade payables and

trade receivables (now reflected under non-current financial liabilities & non-current financial assets) arising out of the transactions through National Spot Exchange Limited (NSEL) from the concerns other than the group concerns are subject to confirmations by the respective parties and reconciliations / adjustments, if any. Further, NSEL has initiated recovery proceedings against the company viz. N.K. Proteins private Limited and Holding Company viz. N K Industries limited and also against the subsidiary Company and the said proceedings are pending as on date.

? The Government of Maharashtra, (at the instance of Economic offence, wing Mumbai), has filed supplementary Charge sheet dated 25th December, 2018 under the various sections of IPC AND MPID Act against the holding company and its chairman Shri Nimish Patel. Further MPID Court on the basis of above supplementary charge sheet has issued summons and as stated by the management, the Holding has complied with said summons. However, the matter is subjudice. Thus, in view of the fact that the said criminal proceedings which have been initiated, inter alia, against the Holding company and its Chairman Shri Nimish Patel are pending.

? The Directorate of Enforcement, Government of India has initiated proceedings against the Holding company under section 5(1) of the prevention of Money Laundering Act, 2002, along with group company NKPL, and by virtue of the provisional attachment order dated 10/03/2015, attached the assets of the Holding company comprising of Land, building, plant and machinery situated at Survey Nos.719, 720, 721, 732/1, 732/2, 733, 741, 743, 744, 745, Kadi Thol Road, Village Kadi Kasba , taluka- Kadi, District Mehsana-382715 Gujarat. As explained to us, The Holding Company has preferred an appeal before the Honble Appellate Tribunal under the Prevention of Money laundering Act, 2002 against the order of Adjudicating Authority Which is pending for final hearing and adjudication. Further, the Director of Enforcement (hereinafter referred to as ED), Government of India had initiated proceedings of search/ seizure on 30.05.2018 on the group company NKPL, the promoters of the Holding company late Shri Nilesh Patel and Shri Nimish Patel, one of the family member as well as on the Holding company and thereafter on 29.06.2018, the ED, Government of India, had preferred an application u/s 17(4) of the Prevention of Money Laundering Act, 2002 before the Adjudicating Authority, New Delhi, vide its Application No. OA/236 of 2018 against the company as well as group company NKPL and the promoters for retention of the seized properties and for continuation of order of freezing the properties, till finalization of the proceedings, of the properties mentioned in the application u/s 17(4) of the PMLA Act, 2002. The Holding company along with Group Company and promoters challenged the show cause notice issued by the adjudicating authority New Delhi, before the Honble High Court of Delhi and the Honble High Court has set aside the said show cause notice. The Director of Enforcement has attached assets of the Holding company, group company NKPL and the promoters of the Holding company by issuing a fresh show cause notice dated 30/08/2018 and the Holding company has filed an appeal before PMLA Appellate Tribunal, Delhi.

? Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014, the Company has appointed, M/s Chirag Shah & Associates, Practicing Company Secretary (FCS - 5545, CP No. 3498) Ahmedabad to conduct a Secretarial Audit of the Companys Secretarial and related records for the year ended 31 st March, 2026.

The Report on the Secretarial Audit for the year ended 31 st March, 2026 is annexed herewith as Annexure E to this Boards Report. There were no qualifications/ observations in the report.

Further, pursuant to amended Regulation 24A of SEBI Listing Regulations, M/s. Chirag Shah & Associates (CSA), Company Secretaries in Practice, (Peer Review Number: 6543/2025), as the Secretarial Auditors of the Company for a period of five consecutive financial years from 2025-26 to 2029-30. The appointment is subject to shareholders approval at the AGM. M/s. Chirag Shah & Associates have confirmed that they are not disqualified to be appointed as a Secretarial Auditors and are eligible to hold office as Secretarial Auditors of your Company.

? Cost Auditor

Provisions Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules 2014, the Cost Audit records are not applicable to the company during the year 2025-26.

? SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

During the year, no significant and material order has been passed by the regulators, courts, tribunals impacting the going concern status and Companys operations.

? ANNUAL RETURN

In accordance with the provisions of Section 92(3) read with Section 134(3)(a) of the Companies Act, 2013, the Annual Return of the Company for the financial year ended 31 st March, 2026 will be hosted on the Companys website at https://www.nkindustriesltd.com/investor/ after the same is filed with the Registrar of Companies.

? CORPORATE SOCIAL RESPONSIBILITY

As per the provisions of the Companies Act, 2013 Corporate Social Responsibility (CSR), was not applicable to the Company during the year under review. Therefore, the Board of Directors has dissolved the Corporate Social Responsibility Committee (CSR) in its meeting held on 19 th April, 2018.

? VIGIL MECHANISM/WHISTLE BLOWER POLICY

Pursuant to the provisions of section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meeting of Board and it powers) Rules, 2014, the Company has adopted Whistle Blower Policy/Vigil Mechanism for directors and employees to report concerns about unethical behavior, actual or suspected fraud or violation of the Code of Conduct. It also provides for adequate safeguards against victimization of directors /employees who avail of the Mechanism.

The Company affirms denied access to the Audit Committee. To ensure proper functioning of vigil mechanism the Audit Committee of the Company on quarterly basis take note of the same.

The Vigil Mechanism has been placed on the Website of the Company https://www.nkindustriesltd.com/investor/

? INTERNAL FINANCIAL CONTROL SYSTEM AND ITS ADEQUACY

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. To maintain its objectivity and independence the Company has appointed Independent Internal Auditor M/s. Ashok P. Patel, Chartered Accountants to submit Internal Audit reports to the Audit Committee of the Board.

The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. Based on the report of Internal Auditor, Audit Committee undertakes corrective action, if any in their respective areas and thereby strengthens the controls. Significant audit observations and recommendations along with corrective actions, if any, thereon are presented to the Audit Committee of the Board.

? ENVIRONMENT, HEALTH AND SAFETY

The Company is conscious of the importance of environmentally clean and safe operations. The Company is committed to health and safety of its employees, contractors and visitors. The Company is conducting operations in such a manner so as to ensure safety of all concerned, compliances of environmental regulations and preservation of natural resources.

? DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

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

During the financial year under review, the Company has complied with all the provisions of the POSH Act and the rules framed thereunder. Further details are as follow:

1.	Number of complaints of Sexual Harassment received in the Year	0
2.	Number of Complaints disposed off during the year	0
3.	Number of cases pending for more than ninety days	0

? MATERNITY BENEFIT

The Company affirms that it has duly complied with all provisions of the Maternity Benefit Act, 1961 and has extended all statutory benefits to eligible women employees during the year.

? REPORTING OF FRAUDS

There was no instance of fraud during the Financial Year 2025-26, which were required by the Statutory Auditors to report to the Audit Committee and / or Board under Section 143(12) of Act and Rules framed thereunder.

? INDUSTRIAL RELATIONS

The Company is committed to nurturing, enhancing and retaining top talent through superior Learning and Organizational Management. During the year under review, your Company enjoyed cordial relationship with workers and employees at all levels.

? STATUTORY INFORMATION

? Conservation of Energy:

? Company ensures that the manufacturing operations are conducted in the manner whereby optimum utilization and maximum possible savings of energy is achieved.

? No specific investment has been made in reduction in energy consumption.

? As the impact of measures taken for conservation and optimum utilization of energy are not quantitative, its impact on cost cannot be stated accurately.

? Since the Company does not fall under the list of industries, which should furnish this information in Form-A as annexed to the aforesaid Rules, the question of furnishing the same does not arise.

? Technology Absorption:

Companys products are manufactured by using in-house know how and no outside technology is being used for manufacturing activities. Therefore, no technology absorption is required.

? Foreign Exchange Earning and Outgo:

During the period under review the foreign exchange earnings and outflow was as follows:

Year 2025- 26	Amount in
Foreign Earnings	-
Foreign Outflow	-

? CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements of the Company prepared in accordance with Indian Accounting Standards (Ind AS) 110 issued by the Ministry of Corporate Affairs, forms part of this Annual Report.

? CYBER SECURITY

In view of increased cyber-attack scenarios, the cyber security maturity is reviewed periodically and the processes, technology controls are being enhanced in-line with the threat scenarios. Your Companys technology environment is enabled with real time security monitoring with requisite controls at various layers starting from end user machines to network, application and the data.

? 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. The Code requires pre-clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code.

? RISK MANAGEMENT POLICY

All the mandatory provisions of Corporate Governance as prescribed in Regulations 17 to 27 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are not applicable to your Company as the Company does not fall under the criteria of its applicability pursuant to Regulation 15 of SEBI Listing Regulations. However, all the Provisions, Rules and Regulations under the Companies Act, 2013 related to the Corporate Governance are applicable to the extent and have been comply by the Company.

? DETAILS OF APPLICATION MADE OR PROCEEDINGS PENDING UNDER INSOLVENCY AND BANKRUPTCY CODE 2016:

During the year under review, there were no applications made or proceedings pending in the name of the Company under the Insolvency and Bankruptcy Code, 2016.

? DETAILS OF DIFFERENCE BETWEEN VALUATION AMOUNT ON ONE TIME SETTLEMENT AND VALUATION WHILE AVAILING LOAN FROM BANKS AND FINANCIAL INSTITUTIONS:

During the year under review, there has been no one time settlement of loan taken from Banks and Financial Institutions.

? LISTING OF SHARES

The Companys shares are listed at NSE Limited & BSE Limited and the listing fee for the year 2025-26 has been duly paid.

? DIFFERENCE IN VALUATION

The Company has not made any one-time settlement for loans taken from the Banks or Financial Institutions, and hence 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 is not applicable.

? CAUTIONARY STATEMENT

Statements in this Directors Report describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companys operations include raw material availability and its prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, Tax regimes, economic developments within India and the countries in which the Company conducts business and other ancillary factors.

? ACKNOWLEDGEMENT

Your Directors would like to express their appreciation for the assistance and co-operation received from the Companys customers, vendors, bankers, auditors, investors and government bodies during the year under review.

Your Directors place on record their appreciation of the contributions made by employees at all levels.

For and on behalf of the Board of Directors

Sd/-

Date: 11 th August 2026 Nimish K. Patel

Place: Ahmedabad Chairman & Managing Director

DIN: 00240621