To the Members,
The Board of Directors is pleased to present the 39th Annual Report of the Company, along with the Audited Financial Statements for the financial year ended 31st March, 2025.
FINANCIAL PERFORMANCE AND HIGHLIGHTS
The audited financial statements (standalone and consolidated) of the Company, prepared in accordance with Indian Accounting Standards (Ind AS), are provided in this Annual Report. Highlights of the financial performance (standalone and consolidated) of the Company for the financial year ended 31st March, 2025, is summarised below:
(Rs. in Crore)
Particulars |
Standalone |
Consolidated |
||
Current Year 2024-25 | Previous Year 2023-24 | Current Year 2024-25 | Previous Year 2023-24 | |
Turnover |
||||
Export |
1,122.51 | 867.35 | 1,122.51 | 867.35 |
Domestic |
1,720.50 | 1,780.62 | 1,734.44 | 1,760.71 |
Total |
2,843.01 | 2,647.97 | 2,856.95 | 2,628.06 |
Profit before Tax, Interest & Depreciation and before Exceptional Items |
244.34 | 218.32 | 260.01 | 228.27 |
Less: Interest/Finance Cost |
92.10 | 67.85 | 94.68 | 71.43 |
Profit before Tax & Depreciation and before Exceptional Items |
152.24 | 150.47 | 165.33 | 156.84 |
Less: Depreciation & Amortisation |
106.80 | 90.91 | 114.49 | 96.81 |
Profit/(Loss) before exceptional items & tax |
45.44 | 59.56 | 50.84 | 60.03 |
Exceptional Items |
6.64 | 6.64 | 6.64 | 6.64 |
Profit/(Loss) before Tax |
38.80 | 52.92 | 44.20 | 53.39 |
Less: Current Tax |
4.55 | 10.97 | 4.55 | 10.97 |
Tax of earlier years |
0.90 | (0.28) | 0.90 | (0.28) |
Deferred Tax Liability/(Asset) |
5.88 | 4.14 | 6.95 | 1.88 |
Profit/(Loss) after Tax |
27.47 | 38.09 | 31.80 | 40.82 |
OPERATIONAL PERFORMANCE AND STATE OF AFFAIRS Standalone Performance:
For the financial year 2024-25, the Company has recorded a revenue from operations of 2,843.01 Crore, which represents a growth of 7.37% from 2,647.97 Crore in the previous financial year. The increase in revenue was primarily driven by export sales showed significant growth during the year.
Net Profit After Tax (PAT): The Companys PAT for the year was 27.47 Crore, as compared to 38.09 Crore in FY 2023-24. This decline was mainly attributed to a rise in finance costs, as well as an increase in depreciation and amortisation charges.
The Company has made substantial investments in modernisation and expansion, and while this will benefit future performance, these have contributed to higher depreciation costs in the short term. The Board remains confident about the long-term benefits arising from these investments.
The Companys export revenue grew significantly to 1,122.51 Crore, up from 867.35 Crore in the previous year. This marks an increase of 29.42%, with exports now accounting for approximately 39.48% of the Companys total revenue. This demonstrates the Companys growing presence in international markets and its ongoing efforts to strengthen its global footprint.
The Company has undertaken several initiatives to expand its export market share, focusing on key regions with strong growth potential. The increase in export revenue underscores the effectiveness of these efforts.
Consolidated Performance:
The consolidated revenue from operations for the year 2024-25 stood at 2,856.95 Crore, compared to 2,628.06 Crore in the previous year. This reflects an increase of 8.71% and demonstrate consistent growth across international markets. The growth was fueled by an increase in exports.
The consolidated Net Profit After Tax (PAT) for Financial Year 2024-25 was 31.80 Crore, a decrease from 40.82 Crore in Financial Year 2023-24. The decrease in PAT was due to the increase in finance costs and depreciation.
EXPANSION PROGRAMME SPINNING DIVISION
The Company is pleased to report that the ongoing expansion and modernisation of its spinning unit located at Village Sareri, Bhilwara (Rajasthan) is progressing as planned. This strategic initiative, with a financial outlay of 344 Crore, is on track for completion within the stipulated timeline.
The expansion project has been funded through a term loan of 258 Crore from our bankers, with the balance through internal accruals. Once completed, the upgraded spinning unit will significantly enhance the Companys production capacity, improve operational efficiency, and elevate product quality, thereby supporting the Companys long-term growth objectives.
WEAVING DIVISION
Similarly, the Company is nearing the completion of the expansion and modernisation project for its weaving unit at Village Atun, Chittorgarh Road, Bhilwara (Rajasthan). The financial outlay for this project is Rs. 161 Crore and the project is progressing according to the original schedule.
The expansion has been financed through a term loan of Rs. 120 Crore with the remaining portion funded from internal accruals. Upon completion, this project will enhance the Company?s fabric production capabilities, enabling us to meet increasing market demand. Additionally, it will strengthen the Company?s position in the market by enabling the production of higher-value, value-added products. This expansion is a key part of the Company?s strategy to enhance its market competitiveness and position in the fabric manufacturing sector.
TRANSFER TO RESERVE
The Board of Directors has not proposed to transfer any amount to the General Reserve during the financial year under review.
DIVIDEND
The Board of Directors is pleased to recommend a dividend of Rs. 2/- per equity share of Rs. 10/- each @ 20% for the financial year 2024-25. This dividend is subject to the approval of the shareholders at the ensuing Annual General Meeting.
SHARE CAPITAL
During the year under review, there has been no change in the authorised share capital.
During the financial year under review, there has been no change in the paid-up share capital of the Company. The paid-up share capital remains at Rs. 50,24,65,590 (Rupees Fifty Crore Twenty-Four Lakhs Sixty-Five Thousand Five Hundred Ninety Only), divided into 5,02,46,559 equity shares of Rs. 10 each.
EMPLOYEES BENEFITS SCHEME(S)
The Company has implemented the Sangam (India) Limited Employees Stock Option Scheme - 2022 (ESOP Scheme, 2022) as amended with a pool of 22,50,000 Options, which is in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity Shares) Regulations, 2021 and is administered by Sangam (India) Limited Employees Welfare Trust under the supervision of Nomination & Remuneration Committee and/or the Board of Directors. The Sangam (India) Limited Employees Welfare Trust acquires the shares of the company from secondary market and implement the ESOP Scheme as the aforesaid regulations.
The details and information required pertaining the ESOP Scheme, 2022 is available on the website of the Company. The Secretarial Auditors certificate on the implementation of ESOP Scheme-2022 in accordance with SEBI (Share Based Employee Benefits and Sweat Equity Shares) Regulation, 2021 will be made available during the 39th Annual General Meeting.
The Company has made the necessary disclosures as per Regulation 14 of the SEBI (Share-Based Employee Benefits and Sweat Equity) Regulations, 2021 on the website of the company on following web link:. https://sangamgroup. com/financials/Handbook/ESOP_Disclosure_FY_24-25. pdf
WHOLLY OWNED SUBSIDIARY COMPANY
Sangam Ventures Limited (SVL), a wholly-owned subsidiary of the Company, has been established with the aim of setting up a world-class manufacturing plant for seamless garments. SVL?s product range will include garments made from advanced blends such as polyamide, spandex, polypropylene, and natural fibres. This initiative is in line with the Company?s strategy to expand its product portfolio and tap into emerging segments of the garment manufacturing industry.
The Company does not have any associate companies during the period under review.
A statement detailing the salient features of the financial statements of the subsidiaries, as required under the first proviso to Section 129(3) read with Rule 5 of the Companies (Accounts) Rules, 2014, is provided in Annexure I of this report.
The Company has adopted a policy for determining material subsidiaries in line with Regulation 16(1 )(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This policy is available on the Company?s website for stakeholders reference. https://sangamgroup. com/financials/Policies/Material_Subsidiaries_Policy.pdf.
CONSOLIDATED FINANCIAL STATEMENTS
The Audited Consolidated Financial Statements for the financial year ending 31st March, 2025, have been prepared in accordance with applicable accounting standards as prescribed under the Companies Act, 2013 and the Companies (Accounts) Rules, 2014. These statements have been consolidated based on the financials received from the wholly-owned subsidiary, Sangam Ventures Limited (SVL), and approved by the Board of Directors.
UNCLAIMED DIVIDEND AND SHARES
In accordance with the provisions of Sections 124 and 125 of the Companies Act, 2013, along with the relevant provisions of the IEPF Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016 (hereinafter referred to as "IEPF Rules"), the Company is mandated to transfer the amount of any unclaimed dividend to the Investor Education and Protection Fund (IEPF) after a period of seven years from the date of such dividend becoming due for payment. Furthermore, the IEPF Rules require the transfer of equity shares to the IEPF if the dividend on such shares remains unpaid or unclaimed for seven consecutive years.
During the year under review, the Company has transferred the Unclaimed Dividend amount of Rs. 5,11,878 and 14,183 Equity Shares to the IEPF. Shareholders whose unclaimed dividends or shares transferred to the IEPF may claim these, including any benefits arising from such shares, by following the procedure outlined under the applicable provisions of the Companies Act, 2013.
The details of the unclaimed dividends and shares transferred to the IEPF are available on the Company?s website at the following link: https://sangamgroup.com/ investors-handbook/.
PUBLIC DEPOSITS
During the financial year under review, the Company has not accepted any deposits within the meaning of Section 73 to 76 of the Companies Act, 2013 and the Companies (Acceptance of Deposit) Rules, 2014. There are no outstanding deposit as on 31st March, 2025.
PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED
Particulars of loans given, investments made, guarantees provided and securities furnished by the Company in accordance with Section 186 of the Companies Act, 2013 are included in the notes to the Standalone Financial Statements of the Company. These transactions have been conducted in compliance with the regulatory requirements.
PARTICULARS OF CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
All related party transactions during the financial year were conducted on an arm?s length basis and in the ordinary course of business. These transactions have been carried out in compliance with the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
There are no material related party transactions with Promoters, Directors, Key Managerial Personnel (KMP), or their relatives that may conflict with the interests of the Company at large.
The particulars of contracts and arrangements with related parties, as required under Section 188(1) of the Companies Act, 2013, are disclosed in Annexure II of this Board?s Report, in the prescribed AOC-2 format.
Prior omnibus approval of the Audit Committee is sought on an annual basis for related party transactions of a repetitive nature, with specific approvals obtained for unforeseen transactions. A statement detailing all related party transactions is presented to the Audit Committee and the Board of Directors on a quarterly basis, specifying the nature, value, and terms and conditions of the transactions.
The policy governing Related Party Transactions as approved by the Board is available on the Company?s website at: https://sangamgroup.com/financials/Policies/ RPT_Policy.pdf.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)
The Board of Directors comprises of 8 members out of which 4 are Independent Directors, including one woman Independent Director.
As per Section 152(6) of the Companies Act, 2013, Mr. V.K. Sodani, Executive Director, is liable to retire by rotation and, being eligible, has offered himself for re-appointment at the ensuing Annual General Meeting.
The following changes in the Directors and KMPs took place during the year under review:
Mr. Yaduvendra Mathur ceased to be a Non-Executive Independent Director of the Company on 4th May, 2024,
due to his sad demise. The Board places on record its heartfelt gratitude for his invaluable contributions to the growth of the Company and prays for the peace of his soul.
Mr. Dinesh Chander Patwari, Mr. Upendra Prasad Singh, and Mrs. Irina Garg were appointed as NonExecutive Independent Directors of the Company with effect from 12th August, 2024, for a term of 3 years.
Dr. Tapan Kumar Mukhopadhyay and Mr. Achintya Karati ceased to be Non-Executive Independent Directors of the Company on 23rd September, 2024, after completing two consecutive terms of 5 years each.
Mrs. Aparna Sahay ceased to be a Non-Executive Independent Director of the Company on 26th October, 2024, as her tenure was completed.
Mr. Arjun Agal was appointed as the Company Secretary of the Company on 31st July, 2024.
The Key Managerial Personnel ("KMP") of the Company as
of the reporting date are:
Mr. R.P. Soni - |
Chairman |
Dr. S.N. Modani - |
Vice Chairman |
Mr. Anurag Soni - |
Managing Director |
Mr. V.K. Sodani - |
Executive Director |
Mr. S.R. Dakhera - |
Chief Financial Officer |
Mr. Arjun Agal - |
Company Secretary |
All the Independent Directors have provided declarations confirming that they meet the criteria of independence as defined under Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. They have also confirmed compliance with the Code of Independent Directors prescribed in Schedule IV of the Companies Act, 2013.
The terms and conditions of the appointment of the Independent Directors are available on the Company?s website.
NOMINATION AND REMUNERATION POLICY OF THE COMPANY RELATING TO DIRECTORS?. APPOINTMENT, REMUNERATION, AND DISCHARGE OF THEIR DUTIES
The Nomination and Remuneration Policy of the Company governs the appointment of Directors and Senior Management personnel, as well as the fixation of their remuneration. The Nomination and Remuneration Committee, along with the Board, has reviewed and evaluate the performance of the Board, its committees,and individual Directors and expressed satisfaction with their performance.
In a separate meeting, the Independent Directors also reviewed the performance of the non-independent directors, the Chairperson, and the Board as a whole. They discussed the quality, quantity, and timeliness of the information shared with the Board and expressed their satisfaction in this regard.
The Nomination and Remuneration Policy is available on the Companys website at the following link: https:// sangamgroup.com/financials/Policies/Remuneration_ Policy.pdf.
BOARD OF DIRECTORS AND THEIR MEETINGS
The Board of Directors of the Company comprises eminent individuals with proven credentials in their respective fields. They bring with them strong financial acumen, leadership capabilities, strategic insight, and a high degree of integrity. In addition to their wide-ranging experience, the Directors are committed to the long-term success of the Company and actively contribute to Board discussions, policy-making, and strategic planning.
BOARD MEETINGS
During the financial year 2024-25, the Board met five (5) times on 10th May, 2024, 31st July, 2024, 12th August, 2024, 25th October, 2024 and 12th February, 2025. The intervening gap between the meetings was well within the limits prescribed under the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), and Secretarial Standards-1 issued by the Institute of Company Secretaries of India (ICSI).
The Board regularly reviews and monitors the Companys performance, financials, strategy, risks, governance practices, and regulatory compliance.
The details of attendance of Directors at Board meetings, the composition of various Committees, and other disclosures are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.
BOARD DIVERSITY AND COMPETENCY MAPPING
The Company recognises and values the importance of a diverse Board in enhancing governance quality and effectiveness. The Board?s composition reflects a balance of industry knowledge, functional expertise, and gender diversity.
The core skills, expertise, and competencies identified and mapped to each individual Director are outlined in the Corporate Governance Report.
SECRETARIAL STANDARDS
The Company has complied with all applicable Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI). The Directors have devised proper systems and processes to ensure effective compliance, and these systems have been found to be adequate and operating effectively.
AUDIT COMMITTEE
The Companys Audit Committee is duly constituted in accordance with the provisions of Section 177 of the Companies Act, 2013 and Regulation 18 of the SEBI (LODR) Regulations, 2015.
All members of the Audit Committee are financially literate, and the Committee is chaired by Mr. Dinesh Chander Patwari, an Independent Director with rich experience and financial expertise. The Committee plays a critical role in the oversight of the Companys financial reporting process, internal controls, audit function, and statutory compliances.
The detailed terms of reference, composition, meetings held, and attendance of members are disclosed in the Corporate Governance Report, forming part of this Annual Report.
MATERIAL CHANGES AND COMMITMENTS
Pursuant to Section 134(3)(l) of the Companies Act, 2013, the Board confirms that there have been no material changes and commitments affecting the financial position of the Company between the end of the financial year and the date of this Report.
FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS
In accordance with Regulation 25(7) of the SEBI (LODR) Regulations, 2015, the Company has regularly organised Familiarization Programme for Independent Directors. The programme aims to provide insight into the nature of the industry, the Companys business model, strategic direction, governance practices, and their roles and responsibilities.
The details of the Familiarization Programme are available on the Companys website at: https://sangamgroup.com/ investors-handbook/.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your Company has always believed in inclusive and sustainable growth. In accordance with Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board has constituted a CSR Committee and formulated a CSR Policy.
CSR ACTIVITIES AND EXPENDITURE
During the year under review, the Company has undertaken a wide array of CSR initiatives focused on health, education, community development, and environmental sustainability. A total expenditure of Rs. 499.43 Lakhs was incurred on CSR activities in FY 2024-25.
The detailed annual report on CSR activities in the prescribed format is annexed as Annexure - III to this Report.
RISK MANAGEMENT POLICY
The Company has formulated a comprehensive Risk Management Policy in line with the provisions of the Companies Act, 2013 and the Listing Regulations. The policy outlines the Companys approach to identifying, assessing, and managing key risks that may impact its objectives.
A Risk Management Committee has been constituted by the Board, which regularly reviews the risk framework and suggests appropriate mitigation measures. The key risks and their mitigation strategies are reviewed periodically to ensure resilience and continuity of business operations.
INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY
The Company has in place an effective system of Internal Financial Controls. These controls are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in compliance with applicable laws.
The internal audit function, conducted by an independent firm, operates under the supervision of the Audit Committee. Reports from the internal auditors are reviewed periodically, and corrective actions are taken where necessary.
The statutory auditors, M/s. R. Kabra & Co. LLP and M/s.
O.P Dad & Co., have confirmed in their audit report that the Company has adequate internal financial controls with reference to financial statements and that such controls were operating effectively during the year.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has formulated the Whistle Blower Policy / Vigil Mechanism in pursuance of Section 177(9) of the Companies Act, 2013 and Regulation 22 of the SEBI (LODR) Regulations, 2015. With the objective of pursuing the business in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity and ethical behaviour and to encourage and protect the employees who wish to raise and report their genuine concerns about any unethical behaviour, actual or suspected fraud or violation of Companys Code of Conduct.
This mechanism encourages directors and employees to report genuine concerns or unethical practices within the organisation in a confidential manner.
The policy is available on the Companys website at: https://sangamgroup.com/financials/Policies/Whistle_ Blower_Policy.pdf
During the year under review, no complaints were received under the Vigil Mechanism. The Audit Committee reviews the functioning of the mechanism at regular intervals.
CORPORATE GOVERNANCE REPORT
Your Company is firmly committed to upholding the highest standards of Corporate Governance, ensuring transparency, integrity, accountability, and ethical conduct in all its operations and interactions with stakeholders. The Company has consistently aligned its governance framework and practices with the best-in-class standards and has fully complied with the requirements laid down in the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations").
The governance structure of the Company is designed to support the effective management of business while protecting and enhancing shareholder value. The Board of Directors exercises its fiduciary responsibilities with active oversight of the Companys business and strategic direction through well-established Board Committees including the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, Corporate Social Responsibility Committee, and Risk Management Committee.
A Corporate Governance Report, together with a certificate from a Practicing Company Secretary, confirming compliance with the provisions of the SEBI Listing Regulations, forms an integral part of this Annual Report.
CODE OF CONDUCT
The Company has comprehensive Code of Conduct applicable to the Board of Directors and the Senior Management Personnel in accordance with Regulation 17(5) of the SEBI Listing Regulations.
The Code is intended to provide guidance on the conduct of business and ethical behavior expected from the Directors and Senior Management. It covers compliance with laws, integrity in financial reporting, fair dealing, equal opportunity employment, and protection of Company assets and information.
All members of the Board and Senior Management have affirmed compliance with the Code of Conduct for the financial year ended 31st March, 2025. A declaration to this effect, duly signed by the Managing Director, is included in this Report.
AUDITORS AND AUDITORS?. REPORT
A. STATUTORY AUDITORS
In accordance with Sections 139 and 142 of the Companies Act, 2013, read with the Companies (Audit and Auditors) Rules, 2014, and pursuant to the recommendations of the Audit Committee and approval of the shareholders at the 36th Annual General Meeting held on 29th September 2022:
M/s. R. Kabra & Co. LLP Chartered Accountants (Firm Registration No. 104502W/W100721), appointed as Statutory Auditors for first term of five years, and
M/s. O.P Dad & Co., Chartered Accountants (Firm Registration No. 002330C), were appointed for second term of five years, to hold office until the conclusion of the 41st Annual General Meeting of the Company to be held in the year 2027.
The Statutory Auditors Reports on the standalone and consolidated financial statements for the financial year ended 31 st March, 2025, do not contain any qualifications, reservations, adverse remarks, or disclaimers. The relevant Notes to Accounts forming part of the financial statements are self-explanatory and provide further clarity on the financial matters referred to in the Auditors Reports. Accordingly, no further explanation is required under Section 134(3)(f) of the Companies Act, 2013.
B. COST AUDITORS
Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014, the Company is required to maintain cost records and conduct a cost audit for the applicable products as prescribed by the Central Government.
In compliance with these provisions and based on the recommendation of the Audit Committee, the Board of Directors has appointed M/s. K.G. Goyal & Company, Cost Accountants, Jaipur (Firm Registration No. 000017), as the Cost Auditors of the Company for the financial year 2024-25.
Further, the Board of Directors on recommendation of Audit Committee, at their meeting held on 29th May, 2025 has approved the appointment of M/s. K.G. Goyal & Company, Cost Accountants, Jaipur (Firm Registration No. 000017), as the Cost Auditors of the Company for the financial year 2025-26. A resolution seeking approval of the Shareholders for ratifying the remuneration payable to the Cost Auditors for financial year 2025-26 is provided in the Notice of the ensuing Annual General Meeting.
The Company has maintained all necessary cost records as specified under the Act and the Rules made thereunder. The Cost Auditor shall submit their report to the Board within the prescribed timelines.
C. SECRETARIAL AUDITORS
In accordance with Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors has appointed M/s. B K Sharma and Associates, Company Secretaries (Membership No. 6206), as the Secretarial Auditors to conduct the Secretarial Audit of the Company for the financial year 2024-25.
The Secretarial Audit Report issued by the Secretarial Auditor for the year ended 31st March, 2025 is annexed to this Report as Annexure IV. The report confirms that the Company has complied with all applicable laws, rules, and regulations and does not contain any qualification, reservation, adverse remark, or disclaimer. The observations made in the Report are self-explanatory and do not require any further explanation.
Further, the Board of Directors on recommendation of Audit Committee, at their meeting held on 29th May, 2025 has approved the appointment of M/s. B K Sharma and Associates, Company Secretaries, as the Secretarial Auditors of the Company for a period of five consecutive financial years commencing from the Financial Year 2025-26 to Financial Year 2029-30, subject to the approval of shareholders at the ensuing Annual General Meeting.
Annual Secretarial Compliance Report
As mandated under Regulation 24A of the SEBI Listing Regulations, the Company shall obtain an Annual Secretarial Compliance Report from M/s. B K Sharma and Associates, Company Secretaries, for the financial year 2024-25.
This report will certify compliance with all applicable SEBI Regulations and circulars/guidelines issued thereunder and has been filed with the Stock Exchanges and also made available on the website of the Company at https://sangamgroup.com/wp- content/uploads/2025/06/SCR_2025.pdf .
REPORTING OF FRAUDS BY AUDITORS
In accordance with the provisions of Section 143(12) of the Companies Act, 2013, it is hereby confirmed that during the financial year under review, no instance of fraud has been reported by the Statutory Auditors, Internal Auditors, Cost Auditors or Secretarial Auditors of the Company to the Audit Committee or the Board of Directors.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company maintains a strong commitment towards providing a safe, respectful, and inclusive work environment, particularly for women employees. In compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has adopted a formal Prevention of Sexual Harassment (POSH) Policy, which is gender-neutral in nature.
An Internal Complaints Committee (ICC) has been duly constituted in accordance with the statutory provisions to address complaints, if any, related to sexual harassment at the workplace. The Committee operates with complete autonomy and is responsible for investigating and redressing grievances, ensuring due process.
During the financial year ended 31 st March, 2025, the Company did not receive any complaint pertaining to sexual harassment.
PARTICULARS OF REMUNERATION OF DIRECTORS / KMP / EMPLOYEES
In compliance with the provisions of Section 197(12) of the Companies Act, 2013, read with Rule 5(1) and Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement containing the requisite details is annexed to this Report as Annexure-V.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
As required under Section 134(3)(m) of the Companies Act, 2013, read with Rule 8(3) of the Companies (Accounts) Rules, 2014, relevant details relating to the conservation of energy, technology absorption, and foreign exchange earnings and outgo are furnished in Annexure-VI, forming part of this Board?s Report.
The Company continuously strives to minimise its environmental footprint by implementing energy- efficient technologies, waste management practices, and sustainable production methods, thereby reinforcing its commitment to environmental stewardship and resource optimisation.
INVESTOR RELATIONS
Your Company places high importance on maintaining transparent and continuous engagement with its investors. During the year under review, the Company actively interacted with both domestic and global investors through:
One-on-one meetings
Group conference calls
Post-results earnings calls
Investor presentations and reports
These interactions were aimed at providing accurate and timely disclosures about the Companys performance, strategy, and outlook. The transcripts and recordings of these sessions are made available on the Companys website under the "Press Release" section at: https://sangamgroup.com/investors-handbook/.
PREVENTION OF INSIDER TRADING
The Board has adopted a Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons, in accordance with the SEBI (Prohibition of Insider Trading) Regulations, 2015 ("SEBI PIT Regulations") and concerned persons, while in possession of UPSI and during the Closure of trading windows.
The Code is designed to:
Preserve confidentiality of unpublished price- sensitive information (UPSI),
Prevent misuse of such information,
Regulate trading in the Companys securities by designated persons and their immediate relatives and concerned persons, while in possession of UPSI and during the Closure of trading windows.
The Code of Conduct is published on the Companys website at: https://sangamgroup.com/financials/Policies/ Code_Conduct_regulate_report_Designated_Persons.pdf.
Code of Practices and Procedures for Fair Disclosure of UPSI, including a policy for determination of legitimate purposes?, has also been adopted by the Board of Directors and is available at: https://sangamgroup.com/financials/ Policies/Code_UPSI_Disclosure.pdf.
GENERAL DISCLOSURES
Your Directors further confirm that during the financial year ended 31st March, 2025, there were no transactions or events requiring disclosure or reporting under the following headings:
a) Issue of equity shares with differential rights as to dividend, voting, or otherwise;
b) Significant and material orders passed by Regulators, Courts, or Tribunals which may impact the going concern status of the Company or its future operations;
c) Applications made or proceedings pending under the Insolvency and Bankruptcy Code, 2016 (IBC), and the status of such applications as at the end of the financial year.
DIRECTORS? RESPONSIBILITY STATEMENT
Pursuant to the requirement under clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, the Board of Directors hereby confirms and states that:
1. In the preparation of the annual financial statements the Company has followed the applicable accounting standards along with providing necessary explanations and disclosures relating to any material departures, if any;
2. They have selected and applied accounting policies consistently and made judgments and estimates that are prudent and reasonable so as to give a true and fair view of the Companys state of affairs as on 31st March, 2025 and of the profit for the financial year ended on that date;
3. They have taken proper and sufficient care to ensure the maintenance of adequate accounting records as required under the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;
4. The annual accounts have been prepared on a going concern basis, reflecting the Companys continued operational viability and future prospects;
5. They have laid down internal financial controls to be followed by the Company and such controls are adequate and have been operating effectively during the year; and
6. They have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and are operating effectively.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report for the financial year ended 31 st March, 2025, as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms an integral part of this Annual Report and is presented separately to provide insights into the Companys business performance, industry outlook, risks, opportunities, and future strategies.
LISTING OF SHARES
The equity shares of the Company continue to be listed on the following Stock Exchanges:
BSE Limited (BSE)
National Stock Exchange of India Limited (NSE)
The listing fees for the financial year 2025-26 have been duly paid to these Exchanges within the prescribed time.
DIVIDEND DISTRIBUTION POLICY
In compliance with Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated a Dividend Distribution Policy aimed at ensuring transparency, sustainability, and fairness in dividend declarations.
The Dividend Distribution Policy is available on the Companys website and can be accessed at: https:// sangamgroup.com/financials/Policies/distrubution.pdf.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT(BRSR)
In accordance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has prepared and presented the Business Responsibility and Sustainability Report (BRSR) for the financial year 2024-25.
The BRSR highlights the Companys performance on various environmental, social, and governance (ESG) parameters and reflects its commitment to sustainable and responsible business practices. The report forms part of this Annual Report.
ANNUAL RETURN
Pursuant to the provisions of Section 92(3) of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014, the Annual Return of the Company for the financial year 2024-25, in the prescribed format, is available for inspection and can be accessed on the Companys website at: https://sangamgroup.com/ investors-handbook/.
ACKNOWLEDGEMENT
Your Directors wish to place on record their sincere appreciation for the continued support, assistance, and cooperation extended by the Companys customers, vendors, financial institutions, banks, government authorities, and all other stakeholders during the year under review.
The Directors also acknowledge and appreciate the dedicated efforts and commitment of the Companys employees at all levels, whose hard work and perseverance have been instrumental in the Companys sustained growth and performance.
For and on behalf of the Board of Directors
Place: Bhilwara |
R.P. Soni |
Date: 29th May, 2025 |
Chairman |
(DIN: 00401439) |
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