Rudra Ecovation Ltd Directors Report

TO

THE MEMBERS OF, Rudra Ecovation Limited.

(Formerly Known as Himachal Fibres Limited)

Your Directors have pleasure in presenting the 43^rd Annual Report together with the Audited Statement of Accounts of Rudra Ecovation Limited (Formerly Known as Himachal Fibres Limited) for the year ended March 31, 2024.

1. FINANCIAL HIGHLIGHTS.

The summary of the financial performance of the Company for the financial year ended March 31, 2024 compared to the previous year ended March 31, 2023 is given below:

		(in Lacs)
Particulars	Year Ended March 31st 2024	Year Ended March 31st 2023
Revenue from Operations and Other Income (Total Revenues)	2047.50	2773.22
Profit/Loss before Tax (PBT)	(115.64)	298.53
Tax- Current	0	0
Tax- Deferred	(51.59)	5.50
Profit/Loss after Tax	(64.05)	293.03
Other Comprehensive Income (Net of Tax)	10.57	15.39
Total Comprehensive Income	(53.48)	308.42
Earnings per Share (EPS) (in Rs.)
(after exceptional item)
- Basic	(0.07)	0.34
- Diluted	(0.07)	0.34

*Previous figures have been regrouped/ reclassified, wherever necessary, to confirm with the current period classification/presentation.

2. STATE OF COMPANYS AFFAIRS :

Total Revenue from operation for the year is Rs. 2047.50 Lakhs as compared to Rs. 2773.22 Lakhs of previous year. The Net profit (Loss) after tax for the year ended March 31st, 2024 is Rs. (64.05) Lakhs as compare to Rs. 5.50 Lakhs profit for the previous year. The company has started the production of recycled plastic, prepare yarn from PET bottles.

3. INDIAN ACCOUNTING STANDARDS

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind-AS) as notified by Ministry of Corporate Affairs (MCA) under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules,2015 as amended and other relevant provisions of the Act. The significant accounting policies which are consistently applied have been set out in the Notes to the Financial Statements.

4. DIVIDEND

Due to insufficient funds or suffered loss in the financial year ended March 31, 2024, the Board of directors has not recommended any dividend for the year under review. As per Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, top 1000 listed entities based on market capitalization are required to formulate a Dividend Distribution Policy. However, your company does not fall under the purview of above regulation and hence this regulation does not apply to the Company.

5. TRANSFER TO RESERVE

The Board of your Company has decided to retain the entire amount of profits in the Reserve and Surplus Account not to transfer any amount to the General Reserves for the financial year 2023-24.

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

Since there were no unpaid/unclaimed Dividend and other amounts, as prescribed under Sections 124 & 125 of Companies Act, 2013 lying with the company, therefore, the provisions of above mentioned sections do not apply to the company.

7. MATERIAL CHANGES AND COMMITMENTS, IF ANY, 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 RELATE AND THE DATE OF THE REPORT.

In pursuance to section 134(3) (L) of the Act, no material changes and commitments have occurred after the closure of the financial year to which the financial statements relate till the date of this report, affecting the financial position of the Company.

8. CHANGE IN THE NATURE OF BUSINESS

There was no change in the nature of business of the company during the year under review. However, company amends its memorandum of association and amended its main objects in the financial year and further expanded its business.

The company had adopted the new objects in addition to existing objects, the details of the same is as under:

? To carry on the business in India or outside India of collection, segregation, cleaning, washing, transportation, processing, composting, recycling, upcycling, treatment, disposal, buying, selling, trading of all types of plastic waste and non-plastic waste (like electronics waste, etc) for the purpose of recovering and reusing the same for different purposes including but not limited to manufacturing or production of different types of consumer, industrial or commercial products having application in any industry or segment.

? To carry on the business in India or outside India of manufacturing, producing, processing, importing, exporting, buying, selling, marketing, dealing and trading of various products including but not limited to fibres, yarns, fabrics, acoustic panels, industrial fabrics, non-woven fabric or products, woven fabric or products, polyester fabrics, packaging materials, PET bottles, tapes, ropes, cords, bags, and any other products, made from recycling or upcycling of all types of plastic waste and non-plastic waste (like electronics waste, etc).

? To engage in the business in India or outside India of manufacturing, producing, processing, importing, exporting, buying, selling, marketing, dealing and trading of chips, pellets, new bottles, packaging material, and any other product made from recycling or upcycling of all types of plastic waste and non-plastic waste (like electronics waste, etc).

? To engage in the business in India or outside India of manufacturing, producing, processing, dealing, importing, exporting, purchasing, selling, distributing, and marketing of all types of geotextile products, including but not limited to woven, non-woven, and knitted geotextile products, from recycling or upcycling of all types of plastic waste and non-plastic waste (like electronics waste, etc).

? To explore, conduct, undertake, and invest in the research, development, and innovation of new and improved methods for recycling or upcycling of all types of waste materials and manufacturing or producing environmentally friendly or sustainable products.

? To establish and operate waste collection centres, eco parks, manufacturing facilities, workshops, distribution centres for collection, recycling, upcycling, waste management of all types of plastic and non-plastics waste and production or manufacturing or processing and sale of all types of recycled and/or sustainable products.

? To carry on the business of manufacturing, producing, buying, selling, importing, exporting, trading, marketing, distributing, setting up, engineering, provision, construction of all types of waste water treatment or effluent treatment plants, machines, parts, spares, stores, or any other product or solutions or services relating to waste water treatment or effluent treatment in any manner.

? To provide consulting, advisory, guidance or any other service relating to management of all types of plastic or non-plastic wastes, environment preservation or conservation, sustainability, carbon emission, waste water treatment, effluent treatment, carbon credits, plastic credits, Extended Producers Responsibility credits or any other similar credits or benefits.

? To avail, claim, buy, sell, distribute, trade, utilize, transfer all types carbon credits, plastic credits, Extended Producers Responsibility credits, or any other similar credits or benefits available.

? To invest in, acquire, merge with, or enter into joint ventures with other companies or entities engaged into activities related to recycling or upcycling of waste, waste management or manufacturing or production of products from recycling or upcycling of all types of waste material, waste water or effluent treatment, carbon credits, plastic credits, Extended

Producers Responsibility credits or any other company or entity having similar objects.

? To carry on any activity which is ancillary or incidental for the attainment of above objects.

9. SHARE CAPITAL

During the year under review, there is no change in the paid-up share capital of the company.

The Authorised Share Capital of Company is Rs. 33,50,00,000 comprising equity share capital is Rs. 17,50,00,000 @ Rs.1 each and preference share capital is Rs. 16,00,00,000 @ Rs. 100 each.

During the financial year 2023-24, The issued, subscribed and paid up capital of the company is Rs. 20,62,50,000 comprising Equity share Capital is Rs. 8,62,50,000 @ Rs. 1 each and Preference shares is Rs. 1200,00,000 @ Rs. 100 each.

Further Company issued and allotted warrants of 1,50,00,000 of Rs. 10 each at a face value of Rs. 1 and premium of Rs. 9 each on November 08, 2023 on preferential basis, which are convertible into equity shares within a period of 18 months from the date of allotment of warrants. For which the Company was accorded approval of board of directors of the company on September 01, 2023 and shareholders approval was accorded on September 28, 2023.

Further, During the current financial year, out of 150,00,000 warrants 1,40,00,000 warrants were converted into Equity share capital on May 25, 2024 for this trading / Listing approval has been granted by exchange.

9.1 Redemption of Preference Shares

The Company has not redeemed any Preference Shares during the year under review.

9.2 Buy Back of Securities

The Company has not bought back any of its securities during the year under review.

9.3 Sweat Equity

The Company has not issued any Sweat Equity Shares during the year under review.

9.4 Bonus Shares

No Bonus Shares were issued during the year under review.

9.5 Employees Stock Option Plan

The Company has not provided any Stock Option Scheme to the employees.

10. FINANCE

10.1 Cash And Cash Equivalent

Cash and Cash equivalent as at March 31^st, 2024 is Rs. 254.67. The Company continues to focus on judicious management of working capital. Working Capital parameters are kept under strict check through continuous monitoring.

10.2 Deposits/ Fixed Deposits

During the year, Company has not accepted deposit from the public falling within the ambit of Section 73 of Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014. Further, the Company has not repaid any deposits to the public during the year and no deposits are remained unpaid / unclaimed as on March 31^st, 2024.

10.3 Particulars of Loans, Guarantees or Investments

Detail of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes of Financial Statements.

Further, during the current financial year 2024-25, the company Rudra Ecovation Limited has made an investment in the shares of Shiva Texfabs Limited. The company Rudra Ecovation Limited has given loan to Shiva Texfabs limited which will further convert into equity.

11. HUMAN RESOURCES

Rudra Ecovation Limited is committed to hiring, developing and retaining the best minds in the industry. The

Company has key internal processes and initiatives that support this vision. The Company has developed a strong employee value proposition that focuses on key pillars of challenging work that matters, hiring and retaining the right people, sustained focus on talent and leadership development, differentiated rewards to drive exceptional performance and community engagement. Talent management is a shared responsibility between business leaders and the Human Resources function at REL, enabling a strong focus on succession planning for key roles and actively promoting internal move to drive career growth. Talent management is supported by a strong learning architecture that enables leadership and functional development. This is supported by a Positive Employee Relations (PER) strategy that aims to build an engaged and motivated workforce.

12. DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)

The Company recognizes and embraces the importance of a diverse board in its success. We believe that a truly diverse board will leverage differences in thought, perspective, knowledge, skill, regional and industry experience, cultural and geographical background, age, ethnicity, race and gender, which will help us, retain our competitive advantage.

12.1 Directors Retiring By rotation

Pursuant to provisions of Companies Act, 2013 (‘The Act) and the Articles of Association of the Company and Section 152(6) of the Companies Act, 2013, Mr. Akhil Malhotra (DIN: 00126240), Non Executive Director is liable to retire by rotation and being eligible, offers himself for re-appointment. The Nomination and Remuneration Committee and Board of Directors have recommended his re-appointment for the approval of the shareholders of the Company at the ensuing Annual General Meeting of the Company.

12.2 Changes during the Year

Board would also like to inform the members that during the year 2023-24 the following changes have been made in the Board:

During the year under review, Mr. Akhil Malhotra (DIN: 00126240), Mr. Bhim Sain Goyal (DIN: 02139510), were appointed w.e.f. November 23, 2023 as Non-Executive Director (Non- Independent Director) and Non-Executive Director (Independent Director) respectively of the Company.

Further, Ms. Laxmi Khatri Company Secretary cum Compliance officer of the Company has resigned from the company w.e.f. May 30, 2023. Ms. Sharon Arora was appointed as a company secretary cum compliance officer of the Company w.e.f. May 31, 2023 and has been resigned w.e.f. November 23, 2023. Mr. Kanwar Nitin Singh was appointed as a company secretary cum compliance officer of the Company w.e.f. November 23, 2023 and resigned on December 21, 2023. Ms. Nancy Singla was appointed as a Company Secretary cum Compliance officer of the Company w.e.f. January 05, 2024.

During the current financial year, Mr. V K Goyal (DIN: 02751391) was appointed as a Executive Director cum CEO of the Company w.e.f. July 22, 2024.

12.3 Declaration By Independent Directors

All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149 (6) of the Act and Regulations 16(1)(b) and 25(8) of Securities and Exchange Board of India

(Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the SEBI LODR Regulations"), that they are independent from the Management of the Company and that they are not aware of any circumstance or situation, which exist or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgment and without any external influence.

Further, all the Independent Directors have given declarations that they complied with the provisions of Companies (Appointment and Qualifications of Directors) Rules, 2014. The Independent Directors have given declarations that they have complied with the Code for Independent Directors prescribed in Schedule IV to the Act and the Code of Business Conduct and Ethics of the Company. The independent directors are exempted from clearing the proficiency test by the IICA.

Meeting of independent Director:

A separate Meeting of Independent Directors was held on Tuesday, December 12, 2023, interalia to discuss: ? To evaluate the performance of Non-Independent Directors, performance of the Board as a whole, ? Review the performance of the Chairman, taking into account the views of Executive Directors and Non-Executive Directors. The same was discussed in the Board Meeting that followed the meeting of the

Independent Directors, at which the performance of the Board, its Committees and Individual Directors was also discussed. ? Assess the quality, quantity and timeliness of flow of information between the Company Management and the Board that is necessary for the Board to effectively and reasonably perform their duties.

BOARD MEETINGS & ATTENDANCE OF DIRECTORS

The Board regularly meets to discuss and decide on Company, business policy and strategy apart from conducting other Board related businesses. The Board of Directors were provided with the requisite information mentioned in the Listing Regulations well before the Board meetings.

During the year under review, the Board duly met 11 (Eleven) times. The maximum gap between any two consecutive Board meetings did not exceed 120 days. The details of the Board meeting are set out in the Corporate Governance Report which forms part of this Report. Date of Meetings: - 30.05.2023, 14.08.2023, 01.09.2023, 18.10.2023, 31.10.2023, 08.11.2023, 23.11.2023, 12.12.2023, 21.12.2023, 05.01.2024, 12.02.2024.

The notices of Board Meetings are given well in advance to all the Directors. The Agenda is circulated at least a week prior to the date of the meeting.

During the year under review, on March 20, 2024, resolution by way of circulation was passed by the Company.

13. COMMITTEES OF BOARD

As on 31st March 2024, the Board had Six Committees the Audit Committee, the Nomination and Remuneration Committee, the Stakeholders Relationship Committee, Securities Transfer Committee, Banking and Finance Committee and Expansion and Diversification Committee . During the year, all recommendations made by the Committees were approved and accepted by the Board.

During the year Audit Committee has been reconstituted and details of the same is provided in the Corporate Governance Report. During the year company has been constituted one new committee i.e. Expansion and Diversification Committee. A detailed note on the composition of the Board and its Committees is provided in the Corporate Governance Report.

14. CORPORATE SOCIAL RESPONSIBILITY

Even though the provisions of Companies Act, 2013 regarding Corporate Social Responsibility are not attracted to the company yet the Company has been, over the years, pursuing as part of its corporate philosophy, an unwritten CSR policy voluntarily which goes much beyond mere philanthropic gestures and integrates interest, welfare and aspirations of the community with those of the Company itself in an environment of partnership for inclusive development.

15. DIRECTORS RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submits its responsibility Statement:

a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

b) 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;

c) 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;

d) the directors had prepared the annual accounts on a going concern basis; and e) the directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were 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.

16. CORPORATE GOVERNANCE:

The Company is committed to maintain the highest standards of Corporate Governance. We believe in adherence to good corporate practices, implementing effective policies and guidelines and developing a culture of the best management practices and compliance with the law at all levels. Our Corporate governance practices strive to foster and attain the highest standards of integrity, transparency, accountability and ethics in all business matters to enhance and retain investor trust, long-term shareholder value and respect minority rights in all our business decisions.

A Separate section on Corporate Governance as stipulated under Schedule V (C) of the SEBI Listing Regulations forms part of this Report. The Corporate Governance Report along with the requisite certificate from the Company Secretary in practice confirming compliance with the conditions of Corporate Governance as stipulated under SEBI Listing Regulations forms part of this Annual Report.

17. AUDITORS AND RECORDS

17.1 Statutory Auditors

M/s. Manjul Mittal & Associates, Chartered Accountants (Firm Registration No. 028039N) were re-appointed as the Statutory Auditors of the Company for a second term of five years from the conclusion of 41st Annual General Meeting till the conclusion of 46th Annual General Meeting.

The Auditors report on the Annual Accounts of the Company for the year under review is self-explanatory and requires no comments.

During the year under review, there were no frauds reported by auditors under Section 143(12) of Companies Act, 2013.

17.2 Secretarial Auditors

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 had appointed M/s Bhambri & Associates (CP No-22626), Company Secretaries to undertake the secretarial audit of the company for the financial year 2024-25. The Secretarial Audit Report is annexed herewith as ‘Annexure - 1.

17.3 Internal Auditors

Mr. Sanjay Kumar was appointed as Internal Auditor and he performed the duties of internal auditors of the company and their report is reviewed by the audit committee from time to time. For the year 2024-25 Mr. Sanjay Kumar has been re-appointed as the Internal Auditor by the Board.

17.4 Cost Records

Pursuant to the rules made by the Central Government, the maintenance of cost records has not been applicable on the Company.

17.5 Explanation on qualification/ reservation/ adverse remarks in the Auditors Report

Members attention is invited to the observations/Qualification made by the Statutory Auditors appearing in Independent Auditors Report and by Secretarial Auditor in Secretarial Audit Report. The observations/Qualification made by auditors in their reports along with the management replies on them is as follows:

a) Regarding Auditors remark in their report in point No. 36 other Regulatory Information (ix) and

Secretarial Auditors remark in their report- Charge ID 80036826 is pending for satisfaction beyond the statutory period

Boards Comment: it is informed that these are the redundant charges which could not be got satisfied. The company is in continuous effort following up with the Ex Bank / Financial institutions to get the "No Due Certificate." b) Regarding Secretarial Auditors remark in their report: The company had made delayed Payment of Annual Listing Fee for 2023-24 on 01.09.2023

Boards Comment: the delay in the payment of the Annual listing fees for 2023-24 was an isolated incident due to unforeseen administrative challenges. The company has taken immediate corrective measures to ensure that such delays do not occur in the future. c) Regarding Secretarial Auditors remark in their report: Company has a SDD (Structured Digital Database) software in place but the Company has missed out recording some of the entries in the software during the period under review

Boards Comment: The Company is maintaining the SDD software properly and we are capturing all details diligently. We further like to mention that some entries were missed due to non availability of company secretary in the office and that the late entries in the software due to software glitches. The company is as instructed will further improve the system of capturing all information well on time.

18. LISTING OF SECURITIES

The Securities of the Company are listed on Main Board of BSE Limited. The Company has been paid annual listing fee to exchanges for the year 2023-24.

19. COMPLIANCES WITH SECRETARIAL STANDARD ON BOARD AND GENERAL MEETINGS

During the year under review, your company has duly complied with the applicable provisions of Secretarial Standards.

20. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Companys operations in future.

21. ANNUAL RETURN

The details forming part of the extract of the Annual Return as required under Section 92 of the Act, is available on the Companys website viz. https://rudraecovation.com/wp-content/uploads/2024/09/Form_MGT_7-HFL-final-signed.pdf

22. VIGIL MECHANISM/WHISTLE BLOWER POLICY

The company has set up vigil mechanism viz. Whistle Blower Policy to enable the employees and directors to report genuine concerns, unethical behavior and irregularities, if any, in the company noticed by them which could adversely affect companys operations. The same is reviewed by the Audit Committee from time to time.

No concerns or irregularities have been reported till date. The details of the Whistle Blower Policy is posted on the website of the Company at www.rudraecovation.com.

23. RISK MANAGEMENT POLICY

The Company manages monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives. The Companys management systems, organizational structures, processes and behaviors together form the Risk Management Policy that governs how the company conducts its business and manages associated risks.

24. HOLDINGS, SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company does not have any Holdings, Subsidiary, Joint venture or Associate Company. There were no companies which have become or ceased to be its holdings, subsidiaries, joint ventures or associate companies during the year under review.

25. RELATED PARTY TRANSACTIONS/ PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES.

All transactions entered into with Related Parties, if any, as defined under the Companies Act, 2013 during the financial year, were in the ordinary course of business and were on arms length pricing basis and do not attract the provisions of Section 188 of the Companies Act, 2013. There were no materially significant transactions not on arms length with related parties during the financial year. Suitable disclosure as required by the Accounting Standards (AS18) has been made in the notes to the Financial Statements. The report of the Board in respect of the particular of contracts or arrangements with related parties referred to sub section (1) of Section 188 in form AOC-2 is annexed to this report in ‘Annexure- 2.

26. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND

REDRESSAL), ACT, 2013

The Company has in place a prevention of sexual Harassment policy in line with the requirements of the sexual Harassment of Women at the Workplace (prevention, prohibition and Redressal) Act, 2013.

A Sexual Harassment Committee/Internal Complaints Committee (ICC) was setup/constituted which is responsible for redressal of complaints related to sexual harassment at the workplace.

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

During the year 2023-24, no complaint were received/filed by the Company related to sexual Harassment.

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

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under section 134 (3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as "Annexure- 3".

28. PARTICULARS OF EMPLOYEES

The information required under Section 197(12) of the Companies Act, 2013, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed to the Boards report as per

‘Annexure- 4.

29. REMUNERATION TO DIRECTORS/EMPLOYEES AND RELATED ANALYSIS

During the year under review, no employee of the Company received salary in excess of the limits as prescribed under the Act. Accordingly, no particulars of employees are being given pursuant to Section 134 of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The details pertaining to the ratio of the remuneration of each director to the median employee‘s remuneration and other prescribed details as required under section 197(12) of the Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed herewith and forms part of this report as Annexure - 4

30. REMUNERATION POLICY AND BOARD EVALUATION

Company has Nomination and Remuneration policy in place pursuant to Companies Act, 2013 and SEBI (LODR) Regulation, 2015.

Independent directors in their meeting held on December 12, 2023, evaluated the performance of the non-independent directors of the board including Whole time Director. The minutes of the meeting were placed before the board and board affirmed the same. The Board has carried out an annual evaluation of its own performance, performance of its Committees as well as the directors individually.

The Companys policy on directors appointment and remuneration and other matters provided in Section

178(3) of the Companies Act, 2013 and SEBI(LODR) Regulations, 2015 is enclosed herewith as ‘Annexure - 5.

31. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company has an effective internal control system, which ensures that all the assets of the Company are safeguarded and protected against any loss from unauthorized use or disposition.

The Internal Auditor of the Company carries out review of the internal systems and procedures. The internal audit reports are reviewed by Audit Committee.

Your Company has also put in place adequate internal financial controls with reference to the financial statements commensurate with the size and nature of operations of the Company. During the year, such controls were tested and no material discrepancy or weakness in the Companys internal controls over financial reporting was observed.

32. MANAGEMENT DISCUSSION & ANALYSIS REPORT:

In terms of Regulation 34 and schedule V of SEBI (Listing Obligations and Disclosure Requirements) regulations, 2015 a review of the performance of the company, for the year under review, Management Discussion and Analysis Report, is presented under separate section attached as Annexure-6 forming part of this Annual Report.

33. 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.

34. CREDIT RATING:

During the Financial Year 2023-24 no credit rating was there.

35. Training/Familiarization of Board of Directors

Your Company follows a structured orientation and familiarization programme through various reports/codes/internal policies for all the Directors with a view to update them on the Companys policies and procedures on a regular basis. Periodic presentations are made at the Board Meetings on business and performance, long term strategy, initiatives and risks involved. The details of familiarization programme have been posted in the website of the Company under the weblink www.rudraecovation.com

36. Code of Conduct for Board members and Senior Management

The Board of Directors has laid down the code of conduct for all the Board members and members of the Senior Management of the Company. All the Board members and Senior Management personnel have affirmed compliance with the code of conduct. The Declaration of the same is annexed herewith in ‘Annexure-7. The Code of Conduct is available on the website of the company.

37. ENTERPRISE RISK MANAGEMENT

The Companys Enterprise Risk Management Processes ensures that the management controls risks through means of a properly defined framework. The risks are reviewed periodically by the Whole time Director and the Chief Financial Officer through an established Enterprise Risk Management Framework and also annually by the Board of Directors.

38. GENERAL DISCLOSURES

Your Directors state that the Company has made disclosure in this report for the items prescribed in section 134(3) of the Act and Rule 8 of the Companies (Accounts) Rules, 2014 and other applicable provisions of the act and listing regulations, to the extent the transaction took place on those items during the year. Your Directors further state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review: ? Issue of Equity Shares with differential rights as to dividend, right issue. ? Issue of Sweat Equity Shares to Employees of the Company. ? Issue of Employee Stock Options to Employees of the Company.

? Purchase of its own shares either directly or indirectly.

? Annual Report and other compliances on Corporate Social Responsibility.

No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company s operations in future;

? Information on subsidiary, Associate and joint venture companies.

? Company did not have any funds lying unpaid or unclaimed for a period of seven years. Therefore there were no funds which were required to be transferred to Investor Education and Protection Fund (IEPF).

? The Company is not required to maintain the cost records pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148(1) of the Companies Act, 2013.

39. POLICY FOR PRESERVATION OF DOCUMENTS

The Company has formulated a Policy pursuant to Regulation 9 of the Securities Exchange Board of India (Listing obligations and Disclosure Requirements) Regulations, 2015 ("Regulations") on Preservation of the Documents to ensure safekeeping of the records and safeguard the Documents from getting manhandled, while at the same time avoiding superfluous inventory of documents.

40. ARCHIVAL POLICY

In accordance with regulation 30(8) of SEBI (Listing Obligations and Disclosures) Regulations, 2015 an archival policy has been adopted which has also been uploaded on the website of the company under the weblink www.rudraecovation.com.

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

No application made or any proceedings, pending under the Insolvency and Bankruptcy Code 2016, during the year along with their status as at the end of financial year.

42 . THE DETAILS OF DIFFERENCE BETWEEN AMOUNT OF VALUATION DONE AT THE TIME OF ONE TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTION ALONG WITH THE REASON THEREOF.

There is no one time settlement done by the company. So the above provisions not applicable on the company.

43. APPRECIATION AND ACKNOWLEDGEMENTS

The company has been very well supported from all quarters and therefore your directors wish to place on record their sincere appreciation for the support and co-operation received from Employees, Dealers, Suppliers, Central and State Governments, Bankers and others associated with the Company. Your Directors wish to thank the banks, financial institutions, shareholders and business associates for their continued support and cooperation. We look forward to receiving the continued patronage from all quarters to become a better and stronger company.

44. CAUTIONARY STATEMENT

The statements contained in the Boards Report and Management Discussion and Analysis contain certain statements relating to thefutureandthereforeareforwardlookingwithinthemeaningofapplicablesecurities, laws and regulations. Various factors such as economic conditions, changes in government regulations, tax regime, other statues, market forces and other associated and incidental factors may however lead to variation in actual results.

	By Order of the Board
	For Rudra Ecovation Limited
	Sd/-
	Nancy Singla
	Company secretary and Compliance officer
Place: Ludhiana
Dated: September 02, 2024