Snehaa Organics Ltd Directors Report

To

The Members,

M/s. SNEHAA ORGANICS PRIVATE LIMITED

The Directors are pleased to present the 2^nd Annual Report together with the audited accounts for the year ended 31^st March 2024. The summarized finandal results of the Company are given hereunder:

FINANCIAL RESULTS

Particulars	As at 31.03.2024	As at 31.03.2023
	Rs.	Rs.
Total Revenue	23,78,83,174	13,69,32,606
Total Expenditure	19,08,03,025	9,57,15,662
Profit befo re Tax	4,70,80,149	4,12,16,944
Tax Expenses	1,13,21,059	99,00,198
Deferred Tax	7,24,687	3,78,359
Profit/Loss after Tax	3,50,34,403	3,09,38,387
Net Profit/Loss	3,50,34,403	3,09,38,387

OPERATIONAL REVIEW/STATE OF COMPANY S AFFAIR;

During the year, the Company reported total revenue of Rs. 23,78,83,174/- as against the previous year total revenue of Rs. 13,69,32,606/-. The net profit after tax was Rs. 3,50,34,403/- as at end of the year as against the previous year of net profit after tax of Rs. 3,09,38,387/-.

Your Company is implementing the appropriate cost control measures and putting continuous efforts for ?ncrease of business and profits and your directors are planning to ?mplement the strategy to increase the turnover and profits of the Company. To achieve this task, the management is implementing the strategy ?n improving the efficiency in production process, in the area of marketing and controlling expenditure.

DIVIDEND

The Directors have not declared any dividend for the year under review.

TRANSFER TO RESERVES

During the year the net profit of Rs. 3,50,34,403/- was transferred to reserves & surplus.

CHANGE IN THE NATURE OF BUSINESS

There was no change ?n the nature of the business of the Company during the year under review.

DEPOSIT

Your Company has not accepted any public deposits under Section 73&76 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014 during the year under review.

DIRECTORS

A) Changes in Directors and Key Managerial Personnel

During the year under review, Mr. Venkata Sai Kiran Nandigala, Mr. Venkata Sai Harish Nandigala, and Mrs. Venkata Lakshmi Nandigala are the Directors of the Company from the date of its incorporation on July 05, 2022.

There were no changes in the directors or key managerial personnel by way of appointment, re - designation, resignation, death or disqualification, variation made orwithdrawn etc.

B) Declararon by an Independent Director(s) and re- appointment, if any - Not Applicable

C) Formal Annual Evaluation - Not Applicable CORPORATE SOCIAL RESPONSIBILITY fCSR1

During the year under review, the Company does not fall under the purview of provisions of section 135 read with Schedule Vil of the Companies Act, 2013. Henee the Company has not made any contributions towards CSR Activities.

RISK MANAGEMENT

The development and implementation of risk management policy and various risks, including the risks associated with the economy; regulations, competition, foreign exchange, interest rate etc., are documented, monitored and managed efficiently.

NUMBER OF MEETINGS OF THE BOARD MEETINGS

The Board of Directors met 5 times during this financial year.

They met on 13.05.2023, 19.06.2023, 03.09.2023, 23.12.2023 and 30.03.2024 during the finandal year.

?ame of the Director	No. of Meetings attended
Mr. Venkata Sai Kiran Nandigala	5
Mr. Venkata Sai Harish Nandigala	5
Mrs. Venkata Lakshmi Nandigala	5

Audit Committee - Not Applicable

Details of establishment of vigil mechanism for directors and employees- Not Applicable Nomination and Remuneraron Committee- Not Applicable DIRECTOR S RESPONSIBILITY STATEMENT

Pursuant to the requirement of Section 134(5) of the Companies Act, 2013, with respect to Directors Responsibility Statement, it is hereby confirmed:

(a) The applicable accounting standards had been followed along with proper explanaron relating to material departures in the prepararon of the annual accounts;

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

PARTICULARS OF EMPLOYEES/ DIRECTORS

Since the Company is a Pr?vate Limited Company, the disclosures under Section 197(12) are not applicable to the Company.

FOREIGN EXCHANGE EARNINGS/OUTGO

During the year under review, there was no Foreign Exchange earnings and Outgo from the operations of the Company as follows:

Particulars	As at March 31, 2024
	Amount (USD)	Amount (in INR)
Sales	—	—
Interest accrued but not due on borrowlnqs	—	—
Trade payables	—	--
Professlonal & Consultaron Fees		--
Guarantee Fees		—

CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION (A) Conservation of energy:

S. No. Particulars
1 The steps taken or impact on conservation of enerqy	Companys operation does not consume siqnificant amount of enerqy.
2 The steps taken by the Company for utilizinq alt?rnate sources of enerqy.	Not applicable, in view of comments in clause (i) above.
3 The capital investment on energy conservation equipments	Not applicable, in view of comments in clause (i) above.

(B) Technology absorption/Benefits der?ved/ Imported Technologies:

Particulars
1 The efforts made towards technology absorption	NIL
2 The benefits derived like product improvement, cost reduction, product development or import substitution	NIL
3 In case of imported technology (imported during the last three years reckoned from the beginninq of the financial year)	NIL
A) the details of technology imported	NIL
B) the year of import	NIL
C) whether the technology been fully absorbed	NIL
D) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof	NIL
E) The expenditure ?ncurred on Research and Development	NIL

ANNUAL RETURN

As required under section 134(3)(a) of the Companies Act, 2013 and Rules framed thereunder, an extract of annual return ?n Form MGT-9 ?s enclosed as "Annexure-I" which forms part of this Annual Report.

RISK MANAGEMENT POLICY

The existing Risk Management Policy of the Company as monitored by the Board of Directors and S?nior Managerial Personnel has not identified any element of risk which may threaten the existence of the company.

DETAILS 1N RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations.

Various Audit Systems in the Company monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating Systems, accounting procedures and policies of the Company. Based on the audit reports, Company undertakes corrective actions in respective areas and strengthens the control. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board periodically.

The Board of Directors of the Company have adopted various procedures for ensuring the orderly and efficient conduct of its business for safeguarding its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

MATERIAL ORDERS

There were no material orders passed by Regulators or Courts affecting the ongoing concern status and future operations.

MATERIAL CHANGES AND COMMITMENTS. IF ANY. AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURREP BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT

There were no such occurrences of material changes and commitments affecting the financial position of the Company.

PARTICULARS OF ASSOCIATE. HOLDING. SUBSIPIARY AND JOINT VENTURE COMPANIES

There are no holding, associate, subsidiary and joint venture companies to the company during the year under review.

PERFORMANCE AND FINANCIAL POSITION OF EACH OF THE SUBSIDIARAS. ASSOCIATES AND JOINT VENTURE COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENT

Not Applicable as there are no holding, subsidiarles, associates and joint ventures.

PARTICULARS OF LOANS. GUARANTEE AND INVESTMENTS

The Company has not given any loan, guarantees or made investments during the year.

SHARE CAPITAL

During the year under review, the Company authorized share capital was Rs. 1,00,00,000/- divided in to

10.00. 000 equity shares of Rs. 10/- per share and the paid-up capital was Rs. 1,00,00,000/- divided in to

10.00. 000 equity shares of Rs. 10/- per share. There are no changes in the authorized and paid-up capital of the Company during the year under review.

A) Issue of equity shares with differential rights. - NIL

B) Issue of sweat equity shares. - NIL

C) Issue of employee stock options. - NIL

D) Provisi?n of money by company for purchase of its own shares by employees or by trustees for the benefit of employees. NIL

RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were on an arms length basis and were in the ordinary course of business. There were no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large except the remuneration paid to the Directors of the Company.

In line with the provisions of Section 177 of the Companies Act, 2013 read with the Companies (Meetings of the Board and its Power) Rules, 2014, one time approval for the estimated valu? of transactions with the related parties for the financial year ahead has been obtained from the Board of Directors at their meeting. The transactions with the related parties are routine and repetitive in nature. None of the Directors had any pecuniary relationship or transactions with the Company, other than to the extent of their shareholding and except the payments made to them in the form of remuneration/sitting fee.

In accordance with Section 134(3)(h) of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014, the particulars of contract or arrangement entered into, if any, by the Company with related parties referred to in Section 188(1) in Form AOC-2 is attached as "Annexure-N" which forms part of this Annual Report. The details of related party disclosures form part of the notes to the financial statements provided in this annual report.

INSURANCE

All the properties and insurable interests of the Company ?ncluding buildings have been fully ?nsured. WHISTLE BLQWER POLICY/VIGIL MECHANISM

In staying true to our val?es of Passion, Result-Oriented, Wellness, Transparent & Trust, Customer Success, Give back and in line with our visi?n of being one of the most respected companies, the Company is committed to the high standards of Corporate Governance and stakeholder responsibility. In line with requirement of the Companies Act, 2013, Vigil Mechanism/Whistle Blower Policy has been formulated for Directors and employees to report concerns about unethical behavior, actual or suspected fraud or violation of Companys Code of Conduct etc. The said Policy provides for adequate safeguard against victimization of directors/employees who avail of such mechanism and provides access to the Chairman of Board of Directors in exceptional cases. It is affirmed that no person has been denied access to the Chairman. During the year, no Whistle Blower complaints were received.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE fPREVENTION. PROHIBITION AND REDRESSA? ACT. 2013

The Company as required under the provisions of "The Sexual Harassment of Women at Workplace (Prohibition, Prevention and Redressal) Act, 2013" has framed a Policy on Prohibition, Prevention and Redressal of Sexual Harassment of Women at Workplace and matters connected therewith or incidental thereto. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

During the year under review, the Company has not received any complaints under this Policy

DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143M21

Nil.

AUDITORS

M/s. Sumalatha & Associates, Chartered Accountants, Firm Reg. No. 016036S, Hyderabad, was appointed as Statutory Auditors of the Company in the 1^st AGM of the Company held on September 30, 2023 to hold office from the conclusi?n of 1^st Annual General Meeting ("AGM") till the conclusi?n of the 6^th AGM of the company, at remuneration plus GST at applicable rates and reimbursement of out of pocket expenses as may be decided by the Board of Directors. They have consented to act as the Statutory Auditors of the company and accordingly have issued the eligibility certif?cate under Sec. 139 of the Companies Act, 2013.

REPLY TO THE QUALIFICATION IN THE AUDITOR S REPORT

There are no qualifications in the Auditors report.

COST AUDIT

Cost Audit ?s not applicable as per Sec 148 of the Companies Act 2013, read with Companies (Cost Records and Audit) Rules.

DETA1LS OF APPLICATION MADE OR ANY PROCEEDING PRENDING UNDER THE INSOLVENCY AND BANKRUPTCY COPE. 2016

During the year under review, no application was made under the Insolvency and Bankruptcy Code, 2016 and there were no one time settlement with any of the Banks or Financial Institutions.

COMPLIANCE WITH SECRETARIAL STANDARDS

The Company complied with all applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries of India.

COMMENTS BY THE BOARD ON QUALIFICATIQN / ADVERSE REMARKS BY THE AUDITOR AND PCS IN THEIR REPORTS

The Board has taken note of the Statutory Auditors Report and the same shall be placed before the members, for their consideration at the ensuing AGM.

There are no qualifications/adverse remarks by the Auditors in their Report.

A STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTOR fPAID UP SHARE CAPITAL >=25 CRORE1

This provisi?n is not applicable to the Company.

ACKNOWLEDGEMENT

The Board of Directors take this opportunity to place on record their appreciation to all the Stakeholders of the Company, viz., customers, investors, banks, regulators, suppliers and other business associates for the support received from them during the year under review. The Directors also wish to place on record their deep sense of gratitude and appreciation to all the employees for their commitment and contribution towards achieving the goals of the Company.

	By order of the Board
Place: Hyderabad	For Snehaa Organics Pr?vate Limited
Date: 02 September, 2024
	Venkata Sai Kiran Nandigala	Venkata Sai lHar?shNandigala
	Managing Director	Director
	DIN.07986570	DIN.07967075