Palm Jewels Ltd Directors Report.

To,

The Members,

Your Directors have pleasure in presenting their Report on the Business and Operations of the Company and the Accounts for the Financial Year ended 31st March 2021.

1. FINANCIAL SUMMARY OR HIGHLIGHTS / PERFORMANCE OF THE COMPANY

The Boards Report is prepared based on the standalone financial statements of the Company.

(Rs. in lakhs)

PARTICULARS 2020-21 2019-20
Total Income for the Year 7,826.89 4,746.09
Operating & Administrative Expenses 7,793.96 4,737.64
Profit / (Loss) before Depreciation and Taxes 32.93 9.06
Less: Depreciation 6.84 0.61
Net Profit / (Loss) before Tax 26.09 8.45
Less: Provision for Tax 6.00 2.25
Deferred Tax 0.18 (0.10)
Profit / (Loss) after Tax 19.91 6.30

2. OPERATION & REVIEW

Your Company posted a total income of Rs. 7,826.89 lakhs for the financial year ended 31st March 2021. Your Companies profit after tax for the year was Rs. 19.91 lakhs.

3. DIVIDEND

The Board of Directors has not recommended any dividend for the financial year ended 31st March 2021.

4. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

Since there was no unpaid / unclaimed dividend, the provisions of Section 125 of the Companies Act, 2013 ("the Act") does not apply to the Company.

5. TRANSFER TO RESERVES

The Board of Directors of your Company has decided not to transfer any amount to the Reserves for the year under review.

6. CHANGE IN THE NATURE OF BUSINESS

During the year, there is no change in the nature of business of the Company.

7. DIRECTORS AND KEY MANAGERIAL PERSONNEL

Directors:

As per the provisions of the Companies Act, 2013, Mrs. Chetana Rohitbhai Shah (DIN: 00538673), Director of the Company retires by rotation and being eligible, has offered herself for re-appointment. The relevant details of her are given in the Explanatory Statement to the Notice convening the Meeting.

The Company has appointed Mr. Suresh Fulpathi as an Additional Director (Non-Executive Independent) on the Board of the Company w.e.f. 14th July 2021. The Board hereby recommends his appointment as an Independent Director. The relevant details of him are given in the Explanatory Statement to the Notice convening the Meeting.

Ms. Vaishnavi Prajapati (DIN: 08380181) has tendered her resignation as an Independent Director of the Company w.e.f. close of working hours of 14th July 2021. The Board places on record its appreciation for the guidance and support provided by her during her tenure as a Director of the Company.

All the Independent Directors of the Company have given their declarations to the Company under Section 149(7) of the Act that they meet the criteria of independence as provided under Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations. In the opinion of the Board, they fulfil the conditions of independence as specified in the Act and the Listing Regulations and are independent of the management.

Key Managerial Personnel:

Mr. Jagdish Kanzariya has resigned as Company Secretary and Compliance Officer of the Company w.e.f. 7th March 2021 and Mr. Yash Shah has been appointed as Company Secretary and Compliance Officer of the Company w.e.f. 14th July 2021.

Mr. Rohit Dalpatbhai Shah, Managing Director (DIN: 00543440), Mr. Saunil Rohitkumar Shah, Whole-Time Director (DIN: 07673046), Mr. Mukesh Kumar Mali, Chief Financial Officer and Mr. Yash Shah, Company Secretary and Compliance Officer are the Key Managerial Personnel of the Company as on the date of this Report.

8. NUMBER OF BOARD MEETINGS

The Board of Directors met seven (7) times on 7th May 2020, 27th July 2020, 3rd September 2020, 28th September 2020, 14th October 2020, 26th January 2021 and 7th March 2021 and in respect of said meetings, proper notices were given and proceedings were properly recorded and signed in the Minute Book maintained for the purpose.

The gap between two Board Meetings was within the maximum time gap prescribed under the Act and the Listing Regulations. The requisite quorum was present in all the meetings.

9. COMPLIANCE WITH SECRETARIAL STANDARDS

During the year under review, the Company has complied with the provisions of Secretarial Standard 1 (relating to meetings of the Board of Directors) and Secretarial Standard 2 (relating to General Meetings) issued by the Institute of Company Secretaries of India.

10. BOARD EVALUATION

Pursuant to the provisions of the Act and the Listing Regulations, the Board evaluated the effectiveness of its functioning and that of the Committees and of Individual Directors by seeking their inputs on various aspects of Board / Committees. The evaluation covered functioning and composition of the Board and its Committees, understanding of the roles and responsibilities, experience, competencies, participation at the Board and Committee meetings, corporate governance practices etc.

Evaluation of the Board and its compositions was carried out through a defined process covering the areas of the Board functioning viz. composition of the Board and Committees, understanding of roles and responsibilities, experience and competencies, contribution at the meetings etc.

11. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(5) of the Act, with respect to Directors Responsibility Statement, it is hereby confirmed that:

In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

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 / loss of the company for that period;

The Directors have 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 have 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 operating effectively; and

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

12. ADEQUACY OF INTERNAL FINANCIAL CONTROLS

The Company has in place adequate Internal Financial Controls with reference to Financial Statements. The Board has inter-alia reviewed the adequacy and effectiveness of the Companys Internal Financial Controls relating to its Financial Statements.

During the year, such controls were tested and no reportable material weakness was observed.

13. CHANGE IN CAPITAL SRUCTURE OF COMPANY

During the year under review, the Company has not issued any shares.

14. MATERIAL CHANGES AND COMMITMENTS, IF ANY

There have been no material changes and commitments, which affect the financial position of the Company which have occurred between the end of the Financial Year to which the Financial Statements relate and the date of this Report.

15. ANNUAL RETURN

In terms of Section 92(3) of the Act and Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return of the Company is available on the website of the Company at www.palmjewelsltd.com.

16. AUDITORS

Statutory Auditors:

The Audit Committee and the Board of Directors of the Company proposed, subject to approval of the shareholders, the appointment of M/s. A. K. Shah & Associates, Chartered Accountants (Firm Registration No. 109748W) as the Statutory Auditors of the Company to hold office for second term of 5 (five) years starting from 1st April 2021 till the conclusion of Annual General Meeting to be held for the FY 2025-26.

The Auditors Report does not contain any qualification, reservation or adverse remark. The Auditors Report is enclosed with the financial statements.

There are no prevalence of fraud reported by the auditors as required under Section 143(12) of the Companies Act, 2013.

Secretarial Auditors:

In terms of Section 204 of the Act, the Company has appointed Practicing Company Secretary as Secretarial Auditors of the Company. The report of the Secretarial Auditor is enclosed to this report as "Annexure A".

The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

Cost Auditors:

The Company was not required to maintain cost records and appoint cost auditors as required under Section 148 of the Act read with the Companies (Cost Records and Audit) Amendment Rules, 2014.

17. INTERNAL AUDIT & CONTROLS

The Company has appointed external firm as its Internal Auditors. During the year, the Company continued to implement their suggestions and recommendations to improve the control environment. Their scope of work includes review of processes for safeguarding the assets of the Company, review of operational efficiency, effectiveness of systems and processes, and assessing the internal control strengths in all areas. Findings of Internal Auditors are discussed with the process owners and suitable corrective actions were taken as per the directions of Audit Committee on an ongoing basis to improve efficiency in operations.

18. DEPOSITS

The Company has not accepted or renewed any amount falling within the purview of provisions of Section 73 of the Act read with the Companies (Acceptance of Deposit) Rules, 2014 during the period under review.

19. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company does not have any Subsidiary, Joint venture or Associate Company during the financial year under review.

20. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

In terms of the provisions of Section 135 of the Act and Rule 9 of the Companies (Accounts) Rules, 2014, the Company has not formulated and implemented any Corporate Social Responsibility Initiatives as the said provisions are not applicable to the Company.

21. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE ACT

During the year under review, the Company has not given any loan, made investment, provided guarantee or security to any entity falling under the provisions of Section 186 of the Act.

22. PARTICULARS REGARDING EMPLOYEES

During the year under review, none of the employees were in receipt of remuneration exceeding the limit prescribed under Section 197 of the Act and Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

23. RELATED PARTY TRANSACTIONS

During the year under review, contracts or arrangements entered into with the Related Parties as defined under Section 188 of the Act were in ordinary course of business and on arms length basis. Details of transactions pursuant to Section 134(3)(h) of the Act and Rule 8(2) of the Companies (Accounts) Rule, 2014 are annexed herewith as per "Annexure B".

However, 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.

24. SIGNIFICANT AND MATERIAL ORDER PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATIONS IN FUTURE

There are no significant and material orders passed by Regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.

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

Disclosures pertaining to conservation of energy, technology absorption and foreign exchange earnings & outgo, were not applicable to the Company during the year under review.

26. DETAILS OF COMMITTEES OF THE BOARD

Audit Committee:

The Company has constituted the Audit Committee with the primary objective to monitor and provide effective supervision of the Managements Financial Reporting Process with the view to ensure accurate, timely and proper disclosures and transparency, integrity and quality of financial reporting.

All the recommendations / submissions made by the Committee during the year were accepted by the Board.

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

Name Designation Category

No. of Meetings held during the Period

Held Attended
Mr. Mitkumar D. Shah Chairman Non-Executive Independent 5 5
Ms. Vaishnavi D. Prajapati* Member Non-Executive Independent 5 5
Mrs. Chetana R. Shah Member Non-Executive 5 5
Mr. Sureshkumar A. Fulpathi** Member Non-Executive Independent N.A. N.A.

*Ms. Vaishnavi Prajapati has resigned as an Independent Director of the Company w.e.f. close of working hours of 14th July 2021.

**Mr. Sureshkumar A. Fulpathi was appointed as an Independent Director of the Company w.e.f. 14th July 2021.

Terms of reference:

The broad terms of reference of the Committee are as under:

Reviewing of the Companys financial reporting process and the disclosure of its financial information

To ensure that the financial statement is correct, sufficient and credible

Recommending the appointment, remuneration and terms of appointment of external Auditors

Review and monitor the Auditors independence and performance and effectiveness of audit process

Approval or any subsequent modification of transactions of the Company with related parties

Scrutiny of inter-corporate loans and investments

Valuation of undertakings or assets of the Company, wherever it is necessary

Monitoring the end use of funds raised through public offers and related matters

Reviewing with management the Annual Financial Statements and half yearly and quarterly Financial Results before submission to the Board

Reviewing periodically the adequacy of the Internal Control System

Discussions with Internal Auditors on any significant findings and follow up there on

Nomination and Remuneration Committee:

In compliance with the provisions of Section 178 of the Act and Regulation 19 of the Listing Regulations, the Board has constituted Nomination and Remuneration Committee (NRC).

NRC of the Board has been constituted mainly to determine and recommend to the Board, the Companys policies on remuneration packages for Executive and Non-Executive Directors and policies on Nomination for Appointment of Directors, Key Managerial Personnel and Senior Management Personnel.

All the recommendations / submissions made by the Committee during the year were accepted by the Board.

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

Name Designation Category

No. of Meetings held during the Period

Held Attended
Mr. Mitkumar D. Shah Chairman Non-Executive Independent 1 1
Ms. Vaishnavi D. Prajapati* Member Non-Executive Independent 1 1
Mrs. Chetana R. Shah Member Non-Executive 1 1
Mr. Sureshkumar A. Fulpathi** Member Non-Executive Independent N.A. N.A.

*Ms. Vaishnavi Prajapati has resigned as an Independent Director of the Company w.e.f. close of working hours of 14th July 2021.

**Mr. Sureshkumar A. Fulpathi was appointed as an Independent Director of the Company w.e.f. 14th July 2021.

Terms of reference:

The broad terms of reference of the Committee are as under:

Formulation of the criteria for determining the qualifications, positive attributes and independence of Director

Devising a policy on Board Diversity

Formulation of Remuneration Policy

Review the structure, size and composition of the Board

Identifying and selection of candidates for appointment as Directors

Identifying potential individuals for appointment as Key Managerial Personnel and Senior Management

Formulation of criteria for evaluation of Independent Directors and the Board

The NRC Policy is available on the website of the Company at www.palmjewelsltd.com and the salient features of the same have been enclosed as "Annexure C".

Stakeholders Relationship Committee:

In compliance with the provisions of Section 178 of the Act and Regulation 20 of the Listing Regulations, the Board has formed Stakeholders Relationship Committee.

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

Name Designation Category

No. of Meetings held during the Period

Held Attended
Mr. Mitkumar D. Shah Chairman Non-Executive Independent 1 1
Ms. Vaishnavi D. Prajapati* Member Non-Executive Independent 1 1
Mrs. Chetana R. Shah Member Non-Executive 1 1
Mr. Sureshkumar A. Fulpathi** Member Non-Executive Independent N.A. N.A.

*Ms. Vaishnavi Prajapati has resigned as an Independent Director of the Company w.e.f. close of working hours of 14th July 2021.

**Mr. Sureshkumar A. Fulpathi was appointed as an Independent Director of the Company w.e.f. 14th July 2021.

27. MEETING OF INDEPENDENT DIRECTORS

During the year under review, a separate meeting of Independent Directors was held on 7th March 2021, inter-alia, to discuss:

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

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

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

All the Independent Directors were present at the meeting.

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

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

The Company always endeavours to create and provide an environment to its employees and external individuals engaged with the Company that is free from discrimination and harassment including sexual harassment. The Company has in place a robust policy on prevention of sexual harassment at workplace. The policy aims at prevention of harassment of employees as well as contractors and lays down the guidelines for identification, reporting and prevention of sexual harassment.

During the year under review, there were no incidences of sexual harassment reported and received.

29. VIGIL MECHANISM

The Company has established the vigil mechanism through Whistle Blower Policy for all the stakeholders of the Company, which also provides for direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases as per the Policy. The details of the Whistle Blower Policy are available on the website of the Company i.e. www.palmjewelsltd.com.

30. RISK MANAGEMENT

The Company recognizes that risk is an integral part of business and is committed to managing the risks in proactive and efficient manner. The Company periodically assesses risk in the internal and external environment, along with the cost of treating risks and incorporates risk treatment plans in its strategy, business and operational plans.

The Company, through its risk management process, strives to contain impact and likelihood of the risk within the risk appetite as agreed from time to time with the Board of Directors.

Management Discussion and Analysis Report of the Annual Report identifies key risks, which can affect the performance of the Company.

The Company has adopted a Risk Management Policy for a systematic approach to control risks. The Risk Management Policy of the Company developed in line with the business strategy lays down procedures for risk identification, evaluation, monitoring, review and reporting.

31. CORPORATE GOVERNANCE

As per Regulation 15(2) of the Listing Regulations, the compliance with the corporate governance provisions as specified in Regulations 17, 17A, 18, 19, 20, 21, 22, 23, 24, 24A, 25, 26, 27 and clauses (b) to (i) of sub-regulation (2) of Regulation 46 and para C, D and E of Schedule V shall not apply, in respect of:

• A listed entity having paid up equity share capital not exceeding rupees ten crore and net worth not exceeding rupees twenty five crore, as on the last day of the previous financial year.

The paid up equity share capital of the Company is Rs. 10,04,09,600/- (Rupees Ten Crore Four Lakh Nine Thousand Six Hundred Only) but the Net-worth of the Company is less than Rs. 25,00,00,000/- (Rupees Twenty Five Crore Only) as on the last day of the previous financial year ended on March 31, 2021. Accordingly, the provisions relating to Corporate Governance is not applicable to the Company.

32. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management Discussion and Analysis Report as Required under Regulation 34 and Schedule V of the Listing Regulations, forms an integral part of this Report and provide Companys current working and future outlook.

33. ACKNOWLEDGEMENTS

The Board expresses its sincere thanks to all the employees, customers, suppliers, investors, lenders, regulatory and government authorities and stock exchanges for their cooperation and support and look forward to their continued support in future.

The Board express their regret at the loss of human life due to COVID-19 pandemic and have immense respect and gratitude for every person who has risked their life and safety to fight this pandemic.

Place: Ahmedabad

BY ORDER OF THE BOARD OF DIRECTORS

Date: September 7, 2021

PALM JEWELS LIMITED

Registered Office:
G.F-37, Super Mall
Nr. Diamond Co. Op. Houg. Soc. Limited Rohit Shah Saunil Shah
Nr. Lal Bunglow, C.G. Road Managing Director Whole-Time Director
Ahmedabad - 380009 DIN: 00543440 DIN: 07673046