Parmeshwari Silk Mills Ltd Directors Report

To

The Shareholders of the Company,

Your Directors are pleased to present this 33^rd Annual Report together with the Audited Annual Financial Statements for the year ended March 31, 2026.

FINANCIAL HIGHLIGHTS- AT A GLANCE

Overall Performance of your Company

The Financial Year 2025-26 had been fortunate enough for the Company as your Company has shown a prodigious performance during the year under review. The Net profits of your Company had gone up from Rs. 7,56,04,815.86/-in the Financial Year 2024-2025 to Rs. 8,61,66,478.29/- in the Financial Year 2025-26 on standalone basis. The Net Profits of your Company had gone up from Rs. 8,64,54,464.61 in the Financial Year 2024-2025 to Rs. 9,96,66,992.09 in the Financial Year 2025-26 on Consolidated basis.

The financial summary, performance highlights operations/state of affair of your Company for the year ended 31^st March, 2026 along with the previous years figures are summarized below:

PARTICULARS	Standalone	Consolidated
	Year ended 31st March, 2026	Year ended 31st March, 2025	Year ended 31st March, 2026	Year ended 31st March, 2025
Income from Business	2,40,64,98,179.60	2,28,25,81,103.72	2,49,01,27,048.80	2,33,36,21,649.18
Operations
Other Income	33,72,847.91	40,24,778.05	33,75,631.95	40,27,934.05
Total Income	2,40,98,71,027.51	2,28,66,05,881.77	2,49,35,02,680.75	2,33,76,49,583.23
Less: Expenditure except	2,26,20,33,721.88	2,14,49,29,935.72	2,32,06,97,769.32	2,17,75,28,216.98
Depreciation
Profit/Loss before	14,78,37,305.63	14,16,75,946.05	17,28,04,911.43	16,01,21,366.25
Depreciation and Tax
Less: Depreciation	4,11,18,737.95	3,81,28,211.20	4,98,08,374.33	4,34,95,645.31
Profit/Loss before exceptional items and Tax	10,67,18,567.68	10,35,47,734.85	12,29,96,537.10	11,66,25,720.94
Profit on sale of Fixed Assets	1,17,87,409.96	12,091.77	1,17,87,409.96	12,091.77
Prior Period Items	2,24,625.00	-	2,24,625.00
CSR Expenditure	23,20,480.00	15,27,492.00	23,20,480.00	15,27,492.00
Profit/Loss before Tax	11,59,60,872.64	10,20,08,151.08	13,22,38,842.06	11,50,86,137.17
Less: Tax Expense	2,57,39,578.28	2,42,89,898.17	2,68,46,390.58	2,58,46,498.67
Less : Deferred Tax Asset	37,37,298.24	14,87,295.05	54,07,941.56	21,59,031.89
Add: MAT Credit Entitlement	0.00	0.00	0.00	0.00
Less: Prior Period Taxes	3,17,517.83	6,26,142.00	3,17,517.83	6,26,142.00
Net Profit/Loss after tax	8,61,66,478.29	7,56,04,815.86	9,96,66,992.09	8,64,54,464.61
Add: Other Comprehensive	0.00	0.00	0.00	0.00
Income
Net Profit/Loss for the period	8,61,66,478.29	7,56,04,815.86	9,96,66,992.09	8,64,54,464.61
Earnings per share:
Basic	28.71	25.19	33.21	28.81
Diluted	28.71	25.19	33.21	28.81

RESULTS OF OPERATIONS & STATE OF COMPANYS AFFAIRS UNDER SECTION 134(3)(i) OF THE COMPANIES ACT, 2013

During the year under review, Total Income of the company was Rs. 2,40,98,71,027.51/- as compared to Rs. 2,28,66,05,881.77/- of last financial year on standalone basis. Profit Before Tax (PBT) for the period was Rs. 11,59,60,872.64 /- as compared to Rs. 10,20,08,151.08/- of last fiscal year 2024-25 on standalone basis. Profit After Tax (PAT) increased to Rs. 8,61,66,478.29 /- as compared to Rs. 7,56,04,815.86/- of last fiscal and earning per share (EPS) increased to Rs. 28.71 as compared to Rs. 25.19 of last financial year on standalone basis.

Total Income of the company was Rs. 2,49,35,02,680.75 /- as compared to Rs. 2,33,76,49,583.23/- of last financial year on Consolidated basis. Profit Before Tax (PBT) for the period was Rs. 13,22,38,842.06 /- as compared to Rs. 11,50,86,137.17/- of last fiscal year 2024-25 on Consolidated basis. Profit After Tax (PAT) increased to Rs. 9,96,66,992.09 /- as compared to Rs. 8,64,54,464.61/- of last fiscal and Earning per share (EPS) increased to Rs. 33.21 as compared to Rs. 28.81 of last financial year on Consolidated basis.

DIVIDEND

Your company has made profits for the year under review; but in order to conserve the resources, the Board of Directors of the Company has not recommended any Dividend on Equity Shares for the year under review.

INDIAN ACCOUNTING STANDARDS

As per the requirements of notification dated 16^th February, 2015 issued by the Ministry of Corporate Affairs (MCA), Financial Statements of the Company for the Financial Year 2025-26 have been prepared as per Indian Accounting Standard (IND-AS) specified under Section 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

RESERVES

During the year under review, the Company has not transferred any amount to reserves.

The profit for the year has been retained in the Surplus / Retained Earnings of the Company.

SHARE CAPITAL

During the year under report, there was no change in the Authorized and Paid-up Share Capital of the Company. As at 31st March, 2026, the Authorized Share Capital of the Company was Rs.3,50,00,000/- consisting of 35,00,000 Equity Share of Rs. 10/- each. The Paid-up Share Capital of the Company as on 31st March, 2026 was Rs. 3,00,11,000/- consisting of 30,01,100 Equity Share of Rs. 10/- each and during the year under report, your Company has not issued any shares under any employee stock option schemes, sweat equity shares or any equity shares with differential rights, as to dividend, voting or otherwise. Further, the Company has not bought back its own securities, during the year under the report.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

Since there was no unpaid/unclaimed Dividend declared or paid by the Company, the provisions of Section 125 of the Companies Act, 2013 do not apply on the Company for the period under review.

DEPOSITS

During the year under review, the Company has not accepted/renewed any public deposits in terms of Section 73 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014 and as such, no amount of principal or interest was outstanding as of the Balance Sheet date. There were no unclaimed deposits at the end of Financial Year i.e. 31st March, 2026.

SUBSIDIARY / ASSOCIATE/ JOINT VENTURES COMPANIES OF THE COMPANY

During the financial year 2025-26, Company has one subsidiary namely Harappa Textile Mills Private Limited within the meaning of Section 2(87) of the Companies Act, 2013 ("Act") and there are no associates or joint venture companies within the meaning of Section 2(6) of the Companies Act, 2013 ("Act").

Pursuant to the provisions of Section 129(3) of the Act, a statement containing the salient features of financial statements of the Companys subsidiary are mentioned in Form AOC-1 and is annexed herewith as

"Annexure-I" and forms part of this Report.

REVISION OF FINANCIAL STATEMENT

There was no revision of the financial statements of the company, for the year under review.

MANAGEMENT DISCUSSION & ANALYSIS REPORT

Management Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section of this Board Report.

CHANGE IN DIRECTORS /KEY MANAGERIAL PERSONNEL DURING THE YEAR

The details about the changes in Directors or Key Managerial Personnel by way of Appointment, Re-designation, Resignation, Death, Dis-qualification, variation made or withdrawn etc. are as follows:

Name of Director / KMP	DIN	Designation / Category	Nature of Change	Effective Date
1. Mr. Ranbir Singh	08591813	Whole-time Director	Appointed as an Additional Director designated as Whole-time Director and his appointment was approved by the Members at the Annual General Meeting held on September 30, 2025	July 03, 2025
2. Mr. Arshdeep Singh Bedi	10804130	Non-Executive (Independent) Director	Appointed as an Additional Director in the category of Non-Executive Independent Director and his appointment was approved by the Members at the Annual General Meeting held on September 30, 2025	August 12, 2025

Opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year

During the financial year under review, Mr. Arshdeep Singh Bedi (DIN: 10804130) was appointed as an Additional Director in the category of Non-Executive Independent Director of the Company with effect from August 12, 2025. His appointment as a Non-Executive Independent Director was approved by the Members at the Annual General Meeting of the Company held on September 30, 2025.

The Board of Directors, based on the declarations, confirmations and disclosures received from Mr. Arshdeep Singh Bedi, is of the opinion that he is a person of integrity and possesses the requisite expertise, experience and proficiency required for discharging his duties as an Independent Director of the Company.

Further, in the opinion of the Board, Mr. Arshdeep Singh Bedi fulfils the conditions of independence as specified under the Companies Act, 2013 and the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, wherever applicable.

Retirement by Rotation

Pursuant to Section 149(13) of the Companies Act, 2013, the independent directors are not liable to retire by rotation. Further Section 152(6) of the Companies Act, 2013 stipulates that 2/3rd of the total number of directors of the public company should be liable to retire by rotation and out of such directors, 1/3rd should retire by rotation at every Annual General Meeting of the company. To meet the requirement of provisions of Section 152(6) of the Companies Act, 2013, Ms. Harinder Kaur (DIN: 08407151), Director will be retiring by rotation at the ensuing Annual General Meeting and being eligible, offers herself for re-appointment. The Board recommends her re-appointment to the Board of Directors of the Company at the ensuing Annual General Meeting. A resolution seeking Shareholders approval for her re-appointment along with other required details forms part of the Notice.

STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SECTION 149(6) OF COMPANIES ACT, 2013

All Independent Directors have given declarations under Section 149(7) of the Companies Act, 2013 that they meet the criteria of Independence as laid down under section 149(6) of the Companies Act, 2013 and Rules made thereunder to be read with SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015.

Further, in the opinion of the Board, the Independent Directors also possess the attributes of integrity, expertise and experience as required to be disclosed under Rule 8(5)(iii)(a), of the Companies (Accounts) Rules, 2014.

ANNUAL RETURN UNDER SECTION 134(3)(a) OF THE COMPANIES ACT,2013

As required under Section 134(3)(a) of the Act, the Annual Return for the financial year ended on 31st March 2026 in Form MGT-7 pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014 is put on the Companys website and can be accessed at https://www.parmeshwarisilkmills.com/investor-desk/annual-return

NUMBER OF MEETINGS OF THE BOARD & COMMITTEES

During the financial year ended on March 31, 2026, 13 Board Meetings were held & the dates on which the Board meetings were held are 23/04/2025, 20/05/2025, 29/05/2025, 03/07/2025, 12/08/2025, 27/08/2025, 28/08/2025, 03/ 09/2025, 15/09/2025, 14/11/2025, 19/01/2026, 22/01/2026, 12/02/2026. The maximum interval between any two meetings didnt exceed 120 days, as prescribed in the Companies Act, 2013. Further, details of the meetings of the Board and its Committees are given in the Corporate Governance Report, which forms part of the Annual Report.

Further, during the year, a separate meeting of the Independent Directors of the Company was held on March 11, 2026 to discuss and review the performance of all other non- independent Directors, Chairperson of the Company and the Board as a whole and for reviewing and assessing the matters as prescribed under Schedule IV of the Companies Act, 2013 and under Regulation 25(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

AUDIT COMMITTEE

The Audit Committee of the Company is duly constituted in line with the provisions of Section 177 of the Companies Act, 2013 read with Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Audit Committee of the Company comprises of the following members:

Name of Member	Designation in Committee
1. Mr. Khushvinder Bir Singh	Chairperson
2. Mr. Arshdeep Singh Bedi	Member
3. Ms. Priya Begana	Member

During the year under review, all recommendations made by the Audit Committee were accepted by the Board of Directors.

The detailed composition, meetings and attendance of the Audit Committee are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

NOMINATION & REMUNERATION COMMITTEE

The Nomination and Remuneration Committee of the Company is duly constituted in accordance with the provisions of Section 178 of the Companies Act, 2013 read with Regulation 19 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As on the date of this Report, the Nomination and Remuneration Committee comprises of the following members:

Name of Member	Designation in Committee
1. Mr. Arshdeep Singh Bedi	Chairperson
2. Ms. Priya Begana	Member
3. Mr. Khushvinder Bir Singh	Member

Notes:

1. Appointment: Mr. Arshdeep Singh Bedi was appointed as Chairperson of the Nomination and Remuneration Committee with effect from August 12, 2025.

2. Resignation / Cessation: Mr. Jatinder Pal Singh ceased to be a Member of the Nomination and Remuneration Committee on August 12, 2025.

3. Mr. Khushvinder Bir Singh, who was earlier the Chairperson of the Nomination and Remuneration Committee, continued as a Member of the Committee with effect from August 12, 2025.

The Company has adopted a Nomination and Remuneration Policy for determining qualifications, positive attributes and independence of directors and for recommending remuneration payable to the Directors, Key Managerial Personnel and Senior Management Personnel of the Company.

The detailed composition, meetings and attendance of the Nomination and Remuneration Committee are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

STAKEHOLDERS RELATIONSHIP COMMITTEE

The Stakeholders Relationship Committee of the Company is duly constituted in accordance with the provisions of Section 178 of the Companies Act, 2013 read with Regulation 20 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As on the date of this Report, the Stakeholders Relationship Committee comprises of the following members:

Name of Member	Designation in Committee
1. Mr. Khushvinder Bir Singh	Chairperson
2. Mr. Arshdeep Singh Bedi	Member
3. Ms. Priya Begana	Member

The Committee reviews and oversees the redressal of grievances of security holders of the Company, including complaints relating to transfer/transmission of shares, non-receipt of annual report, non-receipt of declared dividends and other investor-related matters.

The detailed composition, meetings and attendance of the Stakeholders Relationship Committee are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The Corporate Social Responsibility Committee of the Company is duly constituted in accordance with the provisions of Section 135 of the Companies Act, 2013 read with Rule 5 of the Companies (Corporate Social Responsibility Policy) Rules, 2014.

As on the date of this Report, the Corporate Social Responsibility Committee comprises the following members:

Name of Member	Designation in Committee
1. Mr. Jatinder Pal Singh	Chairperson
2. Mr. Khushvinder Bir Singh	Member
3. Ms. Priya Begana	Member

The detailed composition, meetings and attendance of the Corporate Social Responsibility Committee are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

VIGIL MECHANISM

The Vigil Mechanism is part of Audit Committee of the Company, which is constituted in line with the provisions of Section 177 of the Companies Act, 2013 to be read with Regulation 18 & 22 of the SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015.

BOARD ANNUAL EVALUATION UNDER SECTION 134(3)(p) OF THE COMPANIES ACT, 2013

The provisions of Section 134(3)(p) of the Companies Act, 2013 read with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 mandate that a Formal Annual Evaluation is to be made by Board of its own performance and that of its Committee and individual Directors. Schedule IV of the Companies Act, 2013 states that performance evaluation of the Independent Director shall be done by Directors excluding the Director being evaluated. The Board carried out a formal annual performance evaluation as per the criteria/framework laid down by the Nomination & Remuneration Committee of the company and adopted by the Board. The evaluation was carried out through a structured evaluation process to judge the performance of individual Directors including the Chairperson of the Board. They were evaluated on parameters such as their education, knowledge, experience, expertise, skills, behavior, leadership qualities, level of engagement & contribution, independence of judgment, decision making ability for safeguarding the interest of the Company, stakeholders and its shareholders.

The performance evaluation of the Independent Directors was carried out by the entire Board except the participation of concerned Independent Director whose evaluation was to be done. The performance evaluation of the Chairperson and the Non-Independent Directors was carried out by the Independent Directors. The Board was satisfied with the evaluation process and approved the evaluation results thereof.

STATUTORY AUDITOR & SECRETARIAL AUDITOR WITH THEIR QUALIFICATION, RESERVATION OR ADVERSE REMARKS ALONG WITH THE EXPLANATION OR COMMENTS BY THE DIRECTORS

A. STATUTORY AUDITOR:

M/s Montek S & Associates, Chartered Accountants (FRN: 020247N), were appointed as the Statutory Auditors of the Company at the 30^th Annual General Meeting (AGM) held on September 20, 2023 for a term of (5) five consecutive years i.e., to hold the office from the conclusion of the 30^th Annual General Meeting till the conclusion of 35^th Annual General Meeting of the Company to be held for the financial year ending March 31, 2028 pursuant to Section 139 of the Companies Act, 2013.

Qualification(s) and Directors comments on the report of Statutory Auditor:

The Notes on financial statement referred to in the Auditors Report are self-explanatory and in the opinion of the Directors do not call for any further comments. The Auditors Report does not contain any qualification, reservation, adverse remark or disclaimer.

B. SECRETARIAL AUDITOR

Pursuant to the provisions of Section 204 and other applicable provisions, if any, of the Companies Act, 2013 read with the rules made thereunder and Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Members of the Company at the Annual General Meeting held on September 30, 2025, approved the appointment of M/s. P. S. Bathla & Associates, Practicing Company Secretaries, Peer Reviewed Firm bearing Peer Review Certificate No. 1306/2021, as the Secretarial Auditors of the Company for a term of five consecutive financial years commencing from the financial year 2025-26 upto the financial year 2029-30.

The Secretarial Audit for the financial year ended March 31, 2026 was conducted by Mr. Parminder Singh Bathla, Company Secretary in Practice, Proprietor of M/s. P. S. Bathla & Associates, having Membership No. FCS 4391 and Certificate of Practice No. 2585. The Secretarial Audit Report issued by the Secretarial Auditor is annexed herewith as "Annexure-II" and forms an integral part of this Report.

Qualification(s), reservation(s), adverse remark(s) and disclaimer(s) in the Secretarial Audit Report

The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer requiring any explanation or comments by the Board of Directors.

ANNUAL SECRETARIAL COMPLIANCE REPORT

Pursuant to Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has obtained the Annual Secretarial Compliance Report for the financial year ended March 31, 2026 from M/s. P. S. Bathla & Associates, Practicing Company Secretaries, Peer Reviewed Firm.

The said report confirms compliance with the applicable SEBI Regulations, circulars and guidelines issued thereunder. The Annual Secretarial Compliance Report was submitted to the Stock Exchange(s) within the prescribed time and is annexed herewith as "Annexure-III", forming an integral part of this Report.

C. INTERNAL AUDITOR

The Company had appointed Ms. Harinder Kaur as Internal Auditor of the Company to carry out the Internal Audit Functions.

The Company has well established internal control system and procedures and the same has been working effectively throughout the year.

D. COST AUDITOR

The Board of Directors, on the recommendation of Audit Committee of the Company in their meeting held on 17th July , 2026 has re-appointed M/s Pawan & Associates, Cost Accountants (FRN: 101729) as Cost Auditor of the Company to conduct audit of Cost Records maintained by the Company for the Financial Year 2026-27 in accordance with Section 148 and the Companies (Cost Records and Audit) Rules, 2014 after obtaining their consent and certificate under Section 139, 141 and 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 where they have confirmed their consent and eligibility to act as Cost Auditors of the Company.

Your Company has maintained cost records and accounts as specified by the Central Government under subsection (1) of Section 148 of the Companies Act, 2013.

Cost Audit Report

There are no qualifications, reservations or adverse remarks made by Cost Auditors in their Report for FY 2025-26.

As required under the Act, a resolution seeking members approval for the remuneration payable to the Cost Auditor forms part of the Notice convening the Annual General Meeting for their ratification.

REPORTING OF FRAUDS

There was no instance of fraud during the year under review, which required the Statutory Auditors to report to the Audit Committee and / or Board under Section 143(12) of Act and Rules framed thereunder.

PARTICULAR OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

During the year, your Company has duly complied with the provisions of Section 186 of the Companies Act, 2013. The particulars of Loan given, Corporate Guarantees provided and Investment made by the Company during the year are disclosed in notes to Financial Statements.

PARTICULAR OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES UNDER SECTION 188 OF THE COMPAIES ACT, 2013

During the financial year 2025-26, the Company has not entered into any contracts/arrangements/ transactions with related parties which could be considered material in accordance with the Companys Policy on Materiality of Related Party Transactions. All the transactions made on arms length basis are being reported in Form No. AOC-2 in terms of Section 134 of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed as "Annexure-IV" and forms part of this Annual Report.

The Company presents a statement of all related party contracts / arrangements or transactions entered into by the Company before the Audit Committee for its consideration and review on quarterly basis.

The Policy on Related Party Transactions is uploaded on the website of the Company and can be accessed at https://www.parmeshwarisilkmills.com/wp-content/uploads/2026/04/Policy-on-Materiality-Dealing-with-RPT.pdf

DETAILS OF MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATED AND THE DATE OF THE REPORT, IF ANY UNDER SECTION 134(3)(l) OF THE COMPANIES ACT, 2013

No material changes and commitments affecting the financial position of the Company occurred between the end of financial year to which this financial statements relates and the date of this Report.

CHANGE IN NATURE OF BUSINESS

During the year under review, there was no change in the nature of business of the Company.

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

To the best of the Managements knowledge, there has been no material order passed by any regulator or Court or Tribunal impacting the Going Concern status of the Companys operations.

DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 DURING THE YEAR ALONG WITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR

During the Financial Year 2025-26, there was no application made and proceeding initiated /pending under the Insolvency and Bankruptcy Code, 2016, by any Financial and/or Operational Creditors against your Company.

As on the date of this report, there is no application or proceeding pending against your company under the Insolvency and Bankruptcy Code, 2016.

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

During the year under review, there has been no one time settlement of loan taken from Bank & Financial Institution.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUT-GO

The requisite information with regard to conservation of energy, technology absorption and foreign exchange earnings and outgo, in terms of the Section 134(3)(m) of the Companies Act, 2013, read with Companies (Accounts) Rules, 2014 is given below:

Conservation of energy	Particulars
1. the steps taken or impact on conservation of energy	NIL
2. the steps taken by the company for utilizing alternate sources of energy	NIL
3. the capital investment on energy conservation equipment	NIL
Technology absorption
1. the efforts made towards technology absorption	NIL
2. the benefits derived like product improvement, cost reduction, product development or import substitution	NIL
3. in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)	NIL
4. the details of technology imported	NIL
5. the year of import	NIL
6. whether the technology been fully absorbed	NIL
7. if not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and	NIL
8. the expenditure incurred on Research and Development	NIL
Foreign exchange earnings and Outgo
1. The Foreign Exchange earned in terms of actual inflows during the year	Rs. 1,51,96,026.28
2. The Foreign Exchange outgo during the year in terms of actual outflows	Rs. 9,08,32,679.49

Further, there were no foreign exchange earnings and outgo during the year under review.

RISK MANAGEMENT

The provisions of SEBI Regulations for formation of Risk Management Committee are not applicable to the Company. However, as per section 134 (3) (n) of Companies Act 2013, the company regularly maintains a proper check in normal course of its business regarding risk management. Currently, the company does not identify any element of risk which may threaten the existence of the company.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The Company has framed a Policy on Corporate Social Responsibility pursuant to Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 and can be accessed at https://www.parmeshwarisilkmills.com/

The Annual Report on Companys CSR activities of the Company as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed as "Annexure-V" and forms part of this report.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Vigil Mechanism Policy of the Company is constituted in line with the provisions of section 177 of the Companies Act, 2013 to be read with Regulation 22 of the SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015. The Company promotes ethical behavior in all its business activities. Towards this, the Company has adopted a Policy on Vigil Mechanism and whistle blower policy. Protected disclosures can be made by a whistle blower through an e-mail or a letter to the Compliance Officer or to the Chairperson of the Audit Committee. The Audit Committee also reviews complaints/issues (if any) raised through Vigil Mechanism or by any Whistle blower on a quarterly basis. The whistle blower policy is uploaded on the website of the Company and can be accessed at https://www.parmeshwarisilkmills.com/wp-content/uploads/2019/05/WHISLE-BLOWER-POLICY.pdf

During the year under review, no protected disclosure concerning any reportable matter in accordance with the Vigil Mechanism and Whistle Blower Policy of the Company was received by the Company.

PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE

Your Company has always believed in providing a safe and harassment free workplace for every individual working in the company. Your Company always endeavours to create and provide an environment that is free from discrimination and harassment including sexual harassment.

As per the requirement of "The Sexual Harassment of Women at Workplace (Prevention, Prohibition &Redressal) Act, 2013" and Rules made thereunder, your Company has constituted Internal Complaints Committee (ICC) at its workplaces. During the year, no complaints were filed with the Company.

Number of complaints received	Number of complaints disposed of	Number of complaints pending more than ninety days	Number of workshops or awareness programme against sexual harassment
NIL	NIL	NIL	NIL

CORPORATE GOVERNANCE REPORT

As per Reg. 34 of SEBI Regulation, 2015 to be read with Part A of Schedule V of the said regulations, a separate section on corporate governance practices followed by the company, together with the certificate from the Practicing Company Secretary confirming compliance forms an integral part of this Report.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a robust and comprehensive Internal Financial Control system commensurate with the size, scale and complexity of its operation. The system encompasses the major processes to ensure reliability of financial reporting, compliance with policies, procedures, laws, and regulations, safeguarding of assets and economical and efficient use of resources.

The Company has performed an evaluation and made an assessment of the adequacy and the effectiveness of the Companys Internal Financial Control System. The Statutory Auditors of the Company have also reviewed the Internal Financial Control system implemented by the Company on the financial reporting and in their opinion, the Company has, in all material respects, adequate Internal Financial Control system over Financial Reporting and such Controls over Financial Reporting were operating effectively as on 31st March, 2026 based on the internal control over financial reporting criteria established by the Company.

The policies and procedures adopted by the Company ensures the orderly and efficient conduct of its business and adherence to the companys policies, prevention and detection of frauds and errors, accuracy & completeness of the records and the timely preparation of reliable financial information.

The Internal auditors continuously monitor the efficacy of internal controls with the objective of providing to the Audit Committee and the Board, an independent, objective and reasonable assurance on the adequacy and effectiveness of the organizations risk management with regard to the internal control framework.

Audit committee meets regularly to review reports submitted by the Internal Auditors. The Audit Committee also meet the Companys Statutory Auditors to ascertain their views on the financial statements, including the financial reporting system and compliance to accounting policies and procedures followed by the Company.

PERSONNEL RELATIONS

Your Directors hereby place on record their appreciation for the services rendered by executives, staff and other workers of the Company for their hard work, dedication and commitment. During the year under review, relations between the Employees and the Management continued to remain cordial.

PARTICULARS OF EMPLOYEES

The Particulars of remuneration of Employees during the year 2025-26 pursuant to the provisions of Section 197 of Companies Act, b2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is disclosed as an "Annexure-VI" and forms part of this Report.

Disclosure as per Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 Disclosure of Top Ten Employees in terms of remuneration drawn and the name of every employee is given in "Annexure-VII" and forms part of this Report.

The remuneration paid to all Key Managerial Personnel was in accordance with the remuneration policy as adopted by the company.

REMUNERATION POLICY OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board on the recommendation of Nomination &Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management Personnel and fixation of their remuneration thereof. The Policy contains, inter-alia, directors appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a Director, etc. The same can be accessed at https://www.parmeshwarisilkmills.com/wp-content/uploads/2022/12/Criteria-for-making-payment-to-Non-executive-Directors-1.pdf

FAMILIARIZATION PROGRAMMES FOR INDEPENDENT DIRECTORS

Pursuant to the provisions of Regulation 25(7) of Listing Regulations, 2015, the Board has framed a policy to familiarize Independent Directors about the Company. The same can be accessed a http://www.parmeshwarisilkmills.com/wp-content/uploads/2018/01/Familiarisation-Programme-for-Independent-Directors.pdf

ANNUAL LISTING FEES/CHARGES

The shares of the Company are presently listed at BSE Limited (BSE), and the Calcutta Stock Exchange Limited (CSE).

All statutory dues including Annual Listing Fees for the Financial Year 2026-27 has been paid by the Company.

CODE OF CONDUCT AS PER SEBI (LODR) REGULATIONS, 2015

The Board of Directors has laid down the code of conduct for all Board Members and members of the Senior Management of the Company. Additionally, all Independent Directors of the company shall be bound by duties of Independent Directors as set out in Companies Act, 2013 to be read with SEBI Listing Regulations, 2015.

CODE OF CONDUCT AS PER SEBI (PREVENTION OF INSIDER TRADING) REGULATIONS, 2015

The Board of Directors has laid down the Code of Practices and Procedures for Fair Disclosures of Unpublished Price Sensitive Information as per Regulation 8(1) of SEBI (Prevention of Insider Trading) Regulations, 2015 & Code of Conduct to Regulate, Monitor and Report trading by the Designated Persons as per Regulation 9(1) of SEBI (Prevention of Insider Trading) Regulations, 2015.

All Board Members, Key Managerial Personnel and Senior Management Personnel have affirmed compliance with the Code of Conduct.

DISCLOSURE OF STATEMENT OF DEVIATION(S) OR VARIATION(S) UNDER REGULATION 32 OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS), REGULATIONS, 2015

With reference to Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the disclosure of Statement of Deviation(s) or Variation(s) as per the said regulation is not applicable to the Company.

THE DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 DURING THE YEAR ALONGWITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR

During the year, no such application was made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016.

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

During the year, no such valuation done at the time of One Time Settlement and while taking Loan from the Banks or Financial Institutions.

DIRECTORS RESPONSIBILITY STATEMENT

In terms of Section 134(5) of the Companies Act 2013, the Directors, would like to state as follows:

(a) In the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistently and made judgments & estimates that are reasonable and prudent so as to give a true & 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 ;

(c) The Directors had taken proper & 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 & detecting fraud & other irregularities;

(d) The Directors had prepared the Annual Accounts on a going concern basis;

(e) The Directors had laid down Internal Financial Controls to be followed by the Company and such controls are adequate and are operating effectively;

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

DISCLOSURE OF CREDIT RATING

Disclosure of Credit Rating is not applicable on the company during the year under review.

GENERAL

The Board of Directors state that no disclosure or reporting is required in respect of the following matters as there were no transactions or applicability pertaining to these matters during the year under review:

i) Issue of equity shares with differential rights as to dividend, voting or otherwise.

ii) Issue of shares (including sweat equity shares and Employees Stock Options Schemes) to employees of the Company under any scheme.

iii) Fraud reported by the Auditors to the Audit Committee or the Board of Directors of the Company.

iv) Scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees.

v) Payment of remuneration or commission from any of its holding or subsidiary companies to the Managing Director of the Company.

COMPLIANCE OF THE PROVISIONS RELATING TO THE MATERNITY BENEFIT ACT, 1961

No such requirement during the year under review.

SPECIAL WINDOW FOR TRANSFER AND DEMATERIALISATION OF PHYSICAL SECURITIES

As per SEBI Circular No. HO/38/13/11(2)2026-MIRSD-POD/ I/3750/2026 dated January 30, 2026: To facilitate ease of investing for investors and to secure their rights in the securities purchased by them, the SEBI has decided to open special window for transfer and dematerialization ("demat") of physical securities which were sold/purchased prior to April 01, 2019. This special window shall be open for a period of one year from February 05, 2026 to February 04, 2027.

The special window shall also be available for such transfer requests which were submitted earlier and were rejected/ returned/not attended to due to deficiency in the documents/process/or otherwise.

ACKNOWLEDGEMENT

Your Directors would like to express their sincere appreciation for assistance and co-operation received from the various stake holders including Financial Institutions, Banks, Governmental authorities and other business associates who have extended their valuable support and encouragement during the year under review.

Your Directors take the opportunity to place on record their deep appreciation of the committed services rendered by the employees at all levels of the Company, who have contributed significantly towards Companys performance and for enhancing its inherent strength. Your Directors also acknowledge with gratitude the encouragement and support extended by our valued stakeholders.