Shreenath Paper Products Ltd Directors Report

To,

The Members of

SHREENATH PAPER PRODUCTS LIMITED

The Directors have pleasure in presenting before you the Annual Report of the Company together with audited annual financial statements, for the year ended March 31, 2026.

FINANCIAL RESULTS:

The performance during the year ended March 31, 2026 has been as under:

(Amount in Rs. Lakhs) Note: Previous year figures converted to Lakhs for consistency.

Particulars	FY 2025-26	FY 2024-25
Sales & other Income (Net)	12,156.83	10,608.11
Expenses	11,772.26	10,215.75
Profit Before Tax	384.57	392.36
Less: Provision for Tax (Current)	97.78	102.83
Less: Provision for Tax (Deferred)	1.26	0.66
Profit after Tax	285.54	288.87
Add: Profit brought forward from last year	747.70	458.83
Amount available for appropriation	1033.24	747.70
Balance Carried to Balance Sheet (P&L)	1033.24	747.70
Securities Premium Account	1530.79	1749.01
Total Reserves and Surplus	2564.02	2,496.71

THE STATE OF COMPANY AFFAIRS:

During the year under consideration, your company has earned a total income of Rs. 12,156.83 Lakhs as compared to Rs. 10,608.11 Lakhs of previous year and earned profit after tax of Rs. 285.54 Lakhs during the year as against Rs. 288.87 Lakhs that of previous year.

DETAILS OF SUBSIDIARIES, JOINT VENTURES (JV) OR ASSOCIATE COMPANIES (AC):

The Company does not have a Subsidiary Company, an Associate Company or a Joint Venture.

REPORT ON PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES, JOINT VENTURES (JV), ASSOCIATE COMPANIES (AC):

The Company does not have a Subsidiary Company, an Associate Company or a Joint Venture.

AMOUNTS PROPOSED TO BE CARRIED TO ANY RESERVES:

The company has not transferred any amounts to reserves during the year.

DIVIDEND:

Considering the performance of the Company and long term plans, it was thought desirable to retain the earnings of the company. Hence the Directors have not recommended dividend for the year ended on March 31, 2026.

CAPITAL STRUCTURE

AUTHORIZED SHARE CAPITAL

The Authorized Share Capital of the Company as on March 31, 2026 was Rs 25,00,00,000/- divided into 2,50,00,000 shares of Rs 10/- each.

PAID UP CAPITAL

The Paid up Capital of the Company as on March 31, 2026 was Rs. 19,65,42,000 divided into 1,96,54,200 Equity Shares of Rs. 10 each.

CHANGES IN SHARE CAPITAL:

During the year under review, the Company has not issued any equity shares or raised additional share capital.

LISTING OF SHARES

The Companys shares are listed on BSE SME platform with ISIN INE0RXS01018 & Script Code: 544372.

MATERIAL CHANGES IF ANY BETWEEN THE END OF THE FINANCIAL YEAR 31.03.2026 OF THE COMPANY AND THE DATE OF THE REPORT:

There are no material changes and commitment affecting the financial position of the Company till the date of this report.

DIRECTORS:

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, the Director liable to retire by rotation at the ensuing Annual General Meeting will be determined based on the relevant statutory criteria, and being eligible, offers themselves for re-appointment.

APPOINTMENT AND OR RESIGNATION OF KEY MANAGERIAL PERSONNEL:

The company being a BSE Listed company the details of appointment and or resignation of Key Managerial Personnel as required under Rule 8(5)(iii) of the Companies (Accounts) Rules, 2014 are applicable.

1, 2026 till July 10, 2029.

The structural configuration of Key Managerial Personnel and Directors on the Board is as follows:

Mr. Alok Parekh - Managing Director (Appointed w.e.f. 15/05/2023)
Mr. Ronak Harish Parekh - CEO & Whole-Time Director (Appointed w.e.f. 28/11/2023)
CS Neetika Sanket Sakla - Company Secretary (Appointed w.e.f. 28/04/2023)
Mr. Navneetdas Vallabhdas Parekh - CFO (Re-appointed w.e.f. 11/07/2026)
CA Vijay Dwarkadas Shah - Independent Director (Appointed w.e.f. 12/06/2023)
Dr. Aditya Narayandas Daultabadkar - Non-Executive Director (Appointed w.e.f. 12/06/2023)
Mrs. Neha Nagar - Woman Independent Director (Appointed w.e.f. 12/06/2023)

NUMBER OF BOARD MEETINGS HELD:

Details of Board Meetings held during the financial year 2025-26 as required u/s 134(3)(b) of the Companies Act, 2013 are as under:

Sr No	Date of Meetings
1	20/05/2025
2	30/05/2025
3	28/07/2025
4	15/10/2025
5	10/11/2025 (Adjourned)
6	14/11/2025 (Resumed)
7	22/11/2025
8	01/01/2026
9	15/02/2026
10	18/03/2026 (Independent Directors Meeting)

Details regarding attendance of the Directors at the Board Meetings held during the Financial Year 2025-26 and at the last Annual General Meeting held on September 30, 2025 are given below:

Name	Category	Meetings Held	Meetings Attended	Attendance at AGM held on Sept 30, 2025
Alok Parekh	Managing Director	10	9	Yes
Ronak Parekh	Whole Time Director/CEO	10	9	Yes

 

Name	Category	Meetings Held	Meetings Attended	Attendance at AGM held on Sept 30, 2025
Neha Nagar	Independent Director	10	6	No
Vijay Dwarkadas Shah	Independent Director	10	5	No
Aditya Narayandas Daultabadkar	Non-Executive Director	10	4	Yes

DECLARATIONS BY INDEPENDENT DIRECTORS:

All Independent Directors of the Company have given their respective declaration as required under Section 149(7) of the Act to the effect that they meet the criteria of independence as provided in Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulation.

Furthermore, they have affirmed their adherence to the Code of Conduct outlined in Schedule IV of the Act. These declarations include confirmations that they are not barred from holding the office of director by any SEBI order or any other authoritative body and have maintained their registration with the database of the Indian Institute of Corporate Affairs (IICA).

The Board based on thorough evaluation, is of the opinion that all independent directors consistently demonstrate integrity, expertise, and experience, significantly contributing to the governance of the Company. Additionally, all directors of the Company have confirmed that there are no disqualifications against them for appointment as directors, in accordance with Section 164 of the Act.

BOARD COMMITTEES:

Details of the Board Committees and other related information are provided hereunder:

Audit Committee

Name	Position in the Committee
Vijay Shah	Chairman
Neha Nagar	Member
Alok Parekh	Member

Nomination and Remuneration Committee

Name	Position in the Committee
Neha Nagar	Chairman
Vijay Shah	Member
Aditya Daultabadkar	Member

Stakeholders Relationship Committee

Name	Position in the Committee
Neha Nagar	Chairman
Alok Parekh	Member
Ronak Parekh	Member

CSR Committee

Name	Position in the Committee
Neha Nagar	Chairman
Aditya Daultabadkar	Member
Ronak Parekh	Member

The Company Secretary of the Company acts as the Secretary of all Board Committees.

COMMITTEE MEETINGS HELD DURING THE FINANCIAL YEAR 2025-26:

AUDIT COMMITTEE:

During the year under review, there have been 6 meetings of the Audit Committee (including adjourned and specific meetings).

Dates of Meetings: 20/05/2025, 30/05/2025, 28/07/2025, 10/11/2025 (adjourned), 14/11/2025, and 14/02/2026 (convened specifically for the review of Related Party Transactions of the entire year).

NOMINATION AND REMUNERATION COMMITTEE:

During the year under review, there was 1 meeting of the Nomination and Remuneration Committee.

Date of Meeting: 20/05/2025

STAKEHOLDER RELATIONSHIP COMMITTEE:

During the year under review, there have been 3 meetings of the Stakeholder Relationship Committee.

Dates of Meetings: 30/05/2025, 14/11/2025, and 14/02/2026

Companys Policy On Directors Appointment and Remuneration:

The Nomination & Remuneration Committee (NRC) has adopted a policy which, inter-alia, deals with the manner and selection of Board of Directors and Key Managerial Personnel and their remuneration.

Criteria Of Selection of Non-Executive Directors

The Non-Executive Directors shall be of high integrity with relevant expertise and experience so as to have a diverse Board.

In case of appointment of Independent Directors, the NRC shall satisfy itself with regard to the independent nature of the Directors vis-?-vis the Company so as to enable the Board to discharge its function and duties effectively.

The NRC shall ensure that candidate identified for appointment as a Director is not disqualified for appointment under Section 164 of the Companies Act, 2013.

The NRC shall consider attributes such as qualification, expertise, experience, and professional standing whilst recommending candidatures to the Board.

Performance Evaluation

Pursuant to the provisions of the Act, the Board has carried out the annual performance evaluation of its own performance, the Directors individually as well as the evaluation of the working of its committees. A structured questionnaire was utilized to review operations.

Observations of Board evaluation carried out for the year: No observations.

Previous years observations and actions taken: Since no observations were received, no actions were taken.

Proposed actions based on current year observations: Since no observations were received, no actions were taken.

REMUNERATION OF THE DIRECTORS / KEY MANAGERIAL PERSONNEL (KMP) / EMPLOYEES:

The details of remuneration paid / payable to the executive directors and Key Managerial Personnel for the financial year 2025-26 are in accordance with the disclosures on rolls. Sitting fees were paid to Non-Executive/Independent Directors.

DISCLOSURE OF REMUNERATION OR COMMISSION RECEIVED BY A MANAGING OR WHOLE-TIME DIRECTOR FROM THE COMPANYS HOLDING OR SUBSIDIARY COMPANY:

As the company does not have any Holding or Subsidiary Company, the provisions of this Section do not apply to the company.

STATEMENT UNDER RULE 5 (2) OF COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014:

There is no employee in the Company drawing remuneration aggregating to Rs. 8.50 lacs or above per month or Rs. 1.02 crore or above per annum.

INFORMATION REQUIRED UNDER SECTION 197(12) READ WITH RULE 5(1) OF THE DISCLOSURES:

Percentage Increase in Remuneration: The percentage increase in the remuneration of each Director during financial year 2025-26 was 0.81%, for CFO was NIL, and for Company Secretary was 28.08%.

Ratio of Remuneration to Median Remuneration: The ratio of the remuneration of each Executive Director to the median remuneration of the employees was 13.18:1, and for the CFO was 14.53:1.

Median Remuneration of Employees: The median remuneration of employees of the Company during the financial year was Rs. 2,06,500/- per month.

Permanent Employees: There were 26 permanent employees (including KMPs) on the rolls of the Company as on March 31, 2026.

Salary Increase/Decrease Trends: The average percentage increase made in the salaries of employees other than the managerial personnel in the financial year was 3.53%, whereas the increase in the managerial remuneration was 5.94%.

The details of remuneration paid or payable to the Executive Directors and Key Managerial Personnel for the financial year 2025-26 are as follows:

A. Executive Directors & KMP Remuneration Ledger

Name of Director / KMP	Designation	Salary / Remuneration (in Rs. Lakhs)
Mr. Alok N. Parekh	Managing Director	27.22
Mr. Ronak H. Parekh	Whole-Time Director & CEO	27.22
Mr. Navneetdas V. Parekh	Chief Financial Officer (CFO)	30.00
Mr. Harish D. Parekh	Director / Relative	30.00

Note: Remuneration paid is strictly in accordance with the Remuneration Policy for Directors, Key Managerial Personnel, and other Employees adopted by the Company. Contributions to Provident Funds and Gratuity are mapped systematically within the overarching financial statement notes.

B. Non-Executive & Independent Directors

Name of Director	Designation	Sitting Fees / Salary (in Rs.)
Mrs. Neha Nagar	Independent Director	24,000
CA Vijay Dwarkadas Shah	Independent Director	21,000
Dr. Aditya Narayandas Daultabadkar	Non-Executive Director	15,000

Additional Disclosures Under Rule 5(1):

Rentals Paid to KMPs/Relatives: Beyond standard salaries, the company paid shop rent of Rs. 4.89 Lakhs to Hasumati N. Parekh. Car rentals were executed for Alok N. Parekh (Rs. 3.6 Lakhs), Ronak Parekh (Rs. 6.00 Lakhs), and N.V. Parekh (Rs. 2.4 Lakhs) at standard arms length parameters.

Commission Structures: None of the Directors or KMPs of the Company received any variable commissions from the entity during the reporting cycle

DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY:

The company has established a risk management policy commensurate with the size and pursuant to the nature of business of the company. The operational risks of fire and accidents etc. are mitigated through insurance cover, safety norms and continued training to employees. Further, the company has entered into a Debtors Insurance Contract with a leading Insurance Company which covers the entire risk of non-realization of debtors.

DEPOSITS:

The Company has not accepted any deposits under the provisions of Section 73 of the Companies Act, 2013 read with Companies (Acceptance of Deposit) Rules, 2014 as amended.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

Information required under section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, is given herein below:

CONSERVATION OF ENERGY: The Company is not covered under the list of specified industries, however required conservation measures are already taken to ensure power consumption to the extent necessary.

TECHNOLOGY ABSORPTION: Since no Technology has been acquired by the Company, the question of Technology Absorption, Adaption and Innovation does not arise.

FOREIGN EXCHANGE EARNINGS & OUTGO: Foreign exchange earned in terms of actual inflows was NIL, and actual outflows was NIL.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

The Company was not covered by the applicability criteria specified under Section 135(1) of the Companies Act, 2013 for the financial year 2025-26, on the basis of the immediately preceding financial year. Accordingly, no statutory CSR obligation arose for FY 2025-26. During the year, the Company made a voluntary contribution of Rs. 10,60,000/- to Jivan Jyot Foundation towards a charitable/social activity. The said contribution is not treated as discharge of any statutory CSR obligation for FY 2025-26. The Company has constituted a CSR Committee and has a CSR Policy in accordance with the applicable provisions. The disclosure relating to CSR is annexed as "Annexure I".

SECRETARIAL AUDIT REPORT:

Pursuant to the provisions of Section 204 of the Act and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Secretarial Audit Report for the FY 2025-26 is annexed herewith as "Annexure II".

MANAGEMENT DISCUSSION & ANALYSIS REPORTS

A detailed report on Management Discussion and Analysis (MDA) Report is included in this Report as "Annexure III".

CORPORATE GOVERNANCE REPORT:

Since the Company is listed on the SME platform of BSE, the provisions of Corporate Governance under SEBI (LODR) Regulations are not applicable on the Company.

REPORTING OF FRAUDS:

During the year under review, pursuant to the provisions of the Section 143(12), the Statutory Auditors and the Secretarial Auditors have not reported any instances of frauds committed in the Company by its officers or employees.

AUDITORS:

Statutory Auditors

Statutory AuditorsPursuant to the provisions of section 139 of the Act, M/s S H Dama & Associates, Chartered Accountants (Firm Registration No 125932W) carry out the statutory audit functions. The Statutory Auditors Report to the shareholders of the Company for the financial year ended March 31, 2026 does not contain any qualification, adverse remarks or observation.

Internal Auditors

Internal AuditorsM/s R I Nilange & Co, Chartered Accountants, were appointed as the Internal Auditor of the Company for the F.Y. 2025-26, and the Board has further approved their appointment/continuation for the Financial Year 2026-27.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirement of section 134(5) of the Companies Act, 2013, the Directors state that:

In the preparation of the Annual Accounts for the year ended 31.03.2026, the applicable Accounting Standards had been followed along with proper explanation relating to material departures;

The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the period;

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

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

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

EXTRACT OF ANNUAL RETURN:

In accordance with the Act, the annual return in the prescribed format is available on the website of the Company at https://shreenathpaper.com/

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The Company has not given any loan or guarantee or security or made any new financial investment during the financial year. Total Non-current investments stood at Rs. 28.50 Lakhs as on March 31, 2026.

PARTICULARS OF RELATED PARTY TRANSACTIONS:

The Related party transactions entered into with the related parties as defined under the Act during the financial years were in the ordinary course of business and at arms length basis, approved by the Audit Committee and Board of Directors. Transactions are disclosed under Notes forming part to the financial statements and in Form AOC-2 in Annexure IV of the Report.

During the year under review, the Audit Committee at its meeting held on 14/02/2026 specifically conducted a comprehensive review of the Related Party Transactions entered into by the Company across the entire financial year.

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

There were no instances during the year attracting the provisions of Rule 8(5)(vii) of the Companies (Accounts) Rules, 2014.

DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:

Management has put in place effective Internal Control Systems which are commensurate with the nature and size of business to provide reasonable assurance for safeguarding assets, maintaining proper records, and ensuring reliable financial information.

STATEMENT OF DEVIATION OR VARIATION(S) FOR PUBLIC ISSUE:

There is no deviation or variation in utilization of funds raised through the public issue as mentioned in the Prospectus.

VIGIL MECHANISM:

The Company has established a vigil mechanism, through a Whistle Blower Policy, where Directors and employees can voice their genuine concerns or grievances about any unethical or unacceptable business practice. A whistle-blowing mechanism not only helps the Company in detection of fraud, but is also used as a corporate governance tool leading to prevention and deterrence of misconduct.

It provides direct excess to the employees of the Company to approach the Compliance Officer or the Chairman of the Audit Committee, where necessary. The Company ensures that genuine Whistle Blowers are accorded complete protection from any kind of unfair treatment or victimization. The Whistle Blower Policy is disclosed on the website of the Company at www.shreenathpaper.com

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

The following is a summary of sexual harassment complaints received and disposed off during the year 2025-26:

No of complaints received: NIL No of complaints disposed off: NIL

ACKNOWLEDGEMENT:

Directors take this opportunity to express their sincere appreciation for the services rendered by the Companys Bankers, Consultants and Advisors, Material Suppliers, Customers and Shareholders for their continued support and guidance. The Directors wish to place on record their appreciation for the dedicated efforts put in by the employees of the Company at all levels.

CEO DIN: 03467607

DIN: 05319641

Date: May 30, 2026

Place: Chhatrapati Sambhajinagar