Directors Report of Super Fine Knitters Ltd.

Mar 31, 2024

Your Directors have pleasure in presenting their 26^th Annual Report on the business and operations of the
Company together with the Audited Statement of Accounts for the year ended 31^st March, 2024.

FINANCIAL HIGHLIGHTS

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

(Rs. in Lakh)

Particulars	Current Yr.	Previous Yr.
Turnover (Including Exports Incentives)	2798.62	2785.76
Other Income	61.38	1.59
Profit/(loss) before Depreciation and Taxation	184.18	142.05
Provision for Depreciation	93.46	88.11
Profit/(Loss) before taxation	90.72	53.94
Less: Provision for Taxation	32.85	48.8
Profit/(Loss) after tax	57.87	5.14
Balance carried to Balance Sheet	57.87	5.14

STATE OF COMPANY''S AFFAIRS

During the year under review, the Company’s turnover of INR 2798.62 Lakh as compared to INR 2785.76 Lakh for
the previous year. The Company has earned profit of INR 57.87 Lakh as compared to profit of INR 5.14 Lakh for
the previous year.

DIVIDEND

Due to insufficient funds or suffered loss in the financial year ended 31^st March, 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.

AMOUNTS TRANSFERRED TO RESERVES

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.

CHANGES IN SHARE CAPITAL

There is no change in Share Capital of the Company during the year.

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)

The Board of Directors have ultimate responsibility for the management, general affairs, direction, performance and
long-term success of business as a whole. The Board continuously reviews Company’s governance, risk and
compliance framework, business plans and organization structure to align with competitive benchmark. The Board
represents an optimum mix of professionalism, knowledge and experience which enables the Board to discharge its
responsibilities and provide effective leadership to the Company

None of the Directors on the Board hold directorships in more than ten public companies and member of more than
ten committees or chairperson of more than five committees across all the public companies in which he or she is a
director. The necessary disclosures regarding Committee positions have been made by all the Directors.

None of the Director of the Company is disqualified for being appointed as Director as specified in Section 164 (2)
of the Companies Act, 2013.

Composition

The Board of Directors comprises six (6) Directors consisting of three (3) Independent Directors, two (2) Whole¬
time Directors and one (1) Managing Director as on 31^st March, 2024.

Name of Directors	Category	No. of Other Directorship held in Public Ltd. Company	Membership of the Committee
Ajit Kumar Lakra	Promoter/Managing Director	Nil	0
Vivek Lakra	Promoter/Executive Director	Nil	1
Gita Lakra	Promoter/Executive Director	Nil	0
Shruti Gupta	Non-Executive/Independent Director	1	3
Ambika Jindal	Non-Executive/Independent Director	Nil	3
Shruti Arora	Non-Executive/Independent Director	Nil	2

Appointment/Reappointment/Resignation from Board of Directors/Key Managerial Personnel as on 31^st
March, 2024

Resignation of Directors/Key Managerial Personnel:

Mr. Rohit Malhotra (DIN: 09071224), Independent Director resigned from the directorship of the Company with
effect from 01^st October, 2023.

Mr. Naveen Malhotra (DIN: 09071031), Independent Director resigned from the directorship of the Company with
effect from 01^st October, 2023.

Mr. Chandan Patel (DIN: 09088843), Independent Director resigned from the directorship of the Company with
effect from 01^st October, 2023.

Mrs. Nancy Singla as Company Secretary cum Compliance officer of the Company resigned with effect from 01^st
January, 2024.

Appointment of Directors/Key Managerial Personnel:

Ms. Shruti Gupta (DIN: 10310259) appointed as an Additional Director on the Board of Directors of the Company
w.e.f. 08^th September, 2023, shall hold the office upto 25^th Annual General Meeting of the Company. She was
appointed as an independent Director /non-executive Director of the Company for a term of 5 (five) consecutive
years, with effect from 30^th September, 2023.

Ms. Shruti Arora (DIN: 10310241) appointed as an Additional Director on the Board of Directors of the Company
w.e.f. 08^th September, 2023, shall hold the office upto 25^th Annual General Meeting of the Company. She was
appointed as an independent Director /non-executive Director of the Company for a term of 5 (five) consecutive
years, with effect from 30^th September, 2023.

Ms. Ambika Jindal (DIN: 10310252) appointed as an Additional Director on the Board of Directors of the Company
w.e.f. 08^th September, 2023, shall hold the office upto 25^th Annual General Meeting of the Company. She was
appointed as an independent Director /non-executive Director of the Company for a term of 5 (five) consecutive
years, with effect from 30^th September, 2023.

Mrs. Samridhi Seth, Associate Member of Institute of Company Secretaries of India (ICSI) was appointed as
Company Secretary & Compliance Officer with effect from 05^th March, 2024, pursuant to provisions of Companies
Act, 2013 read with rule and regulations made thereunder and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

Retirement By Rotation:

In accordance with the provisions of the Articles of Associations and 152 (6) of Companies Act, 2013 Mr. Vivek
Lakra (DIN - 01067219), Whole Time Director will be retiring by rotation at the ensuring Annual General Meeting
and being eligible, has offered himself for re-appointment.

The relevant details, as required under the Regulation 36 (3) of Listing Regulations and Secretarial Standards, of
the person seeking re-appointment as Director are also provided in the Notice convening the 26^th Annual General
Meeting.

Declaration by Independent Directors

The Independent Directors of the Company have submitted the declaration of independence, as required pursuant
to the provisions of Section 149(7) of the Companies Act, 2013, stating that they meet the criteria of Independence
as provided under Section 149(6). They have also confirmed that they meet the requirements of Independent
Director as mentioned under Regulation 16(1) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

Meeting of independent Director:

Separate meeting of Independent Directors was held on Monday, 15^th May, 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. However, in case of a special and urgent business need, the Board’s.

During the period under review fourteen (14) Board Meetings were held and the gap between two meetings did not
exceed the prescribed limits. During the year under review, Company did not passed any resolution by way of
Circulation.

The dates on which the Board Meetings were held are as follows :--

26-Apr-23, 28-Apr-23, 10-May-23, 30-May-23, 27-Jun-23, 22-Aug-23, 08-Sep-23, 30-Sep-23, 14-Nov-23, 11-Dec-
23, 15-Jan-24, 09-Feb-24, 05-Mar-24 and 12-Mar-24.

The details of attendance of each director at the Board Meetings are given below:

Name of Directors	Category	Number of Board Meetings Eligible to Attend	No. of Board Meetings attended	Attendance of Last AGM
Mr. Ajit Kumar Lakra	Promoter/Managing Director	14	14	Yes
Mr. Vivek Lakra	Promoter/Executive Director	14	14	Yes
Ms. Gita Lakra	Promoter/Executive Director	14	11	Yes
Mr. Chanten Patel	Non-Executive/Independent Director	8	7	Yes
Mr. Rohit Malhotra	Non-Executive/Independent Director	8	6	Yes
Mr. Naveen Malhotra	Non-Executive/Independent Director	8	6	Yes
Ms. Shruti Gupta	Non-Executive/Independent Director	7	5	No
Ms. Ambika Jindal	Non-Executive/Independent Director	7	6	Yes
Ms. Shruti Arora	Non-Executive/Independent Director	7	5	Yes

COMMITTEES OF THE BOARD

The terms of reference of Board Committees are determined by the Board from time to time. Presently the
Company has three committees i.e. Audit Committee, Nomination and Remuneration Committee and Stakeholders
Relationship Committee. All the decisions pertaining to the constitution of the Committees, appointment of
members, and fixing of terms of reference for committee members are taken by the Board of Directors. Details on
the role and composition of these committees, including the number of meetings held during the financial year and
the related attendance, are provided below:

AUDIT COMMITTEE

Appointment/Resignation of Members:

Mr. Rohit Malhotra has resigned from the membership with effect from 01-10-2023 and Mr. Chandan Patel, has
resigned from the chairmanship with effect from 01-10-2023. Ms. Shruti Gupta was appointed as chairman of the
committee with effect from 30-09-2023. Ms. Ambika Jindal was become a member of the audit committee with
effect from 30-09-2023. The Committee was re-constitute after the 25^th Annual General Meeting.

The audit committee was re-constituted in accordance with the provisions of Companies Act, 2013 and SEBI
(Listing Obligation and Disclosure Requirements) Regulation, 2015. Further, the Company has adequately qualified
and Independent committee, accordance with the provisions of Companies Act, 2013 and SEBI (Listing Obligation
and Disclosure Requirements) Regulation, 2015. The major tasks performed by the audit committee may be
grouped under the following heads:

Statutory Audit, Internal Audit, reporting and other aspects

i. The Audit Committee of the Company is entrusted with the responsibility to supervise the Company’s internal
controls and financial reporting process The Committee acts as a link between the Management, Auditors and
the Board of Directors of the Company and has full access to the financial Information.
ii Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure
that the financial statement is correct, sufficient and credible and ensuring timely submission to statutory
authorities.

iii. Reviewing the Management Discussion & Analysis of financial and operational performance.

iv. Reviewing with the management, the half yearly financial results and annual financial statements and auditor''s
report thereon before submission to the board for approval.

v. Review the adequacy and effectiveness of the company’s system and internal control.

vi. Evaluation of internal financial controls and risk management systems.

vii. To review the functioning of the Whistle Blower mechanism.

Audit & other duties

i. Discussion with Statutory Auditors before the audit commences, about the nature and scope of audit as well as
post-audit discussion to ascertain any area of concern.

ii. Discussion with internal auditors of any significant findings and follow up there on.

iii. Review and recommend to the Board the appointment/re-appointment of the Statutory Auditors and internal
Auditors considering their independence and effectiveness and their replacement and removal.

iv. To recommend to the Board the remuneration of the Statutory Auditors and internal auditors.

v. To grant approval for related party transactions which are in the ordinary course of business and on an arm’s
length pricing basis and to review and approve such transactions subject to the approval of the Board.

The Composition of Audit Committee as on 31^st March, 2024 is as under:

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Ms. Shruti Gupta	Chairman	Independent Director
2.	Ms. Ambika Jindal	Member	Independent Director
3.	Mr Vivek Lakra	Member	Executive Director

During the year under the review, The Audit Committee met four times on 30-May-23, 08-Sep-23, 14-Nov-23 and
15-Jan-24.

All the members of the Audit Committee have the requisite qualifications for appointment on the Committee and
possess sound knowledge of accounting practices, taxation, financial and internal controls.

NOMINATION AND REMUNERATION COMMITTEE

Appointment/Resignation of Members:

Mr. Rohit Malhotra and Mr. Naveen Malhotra had resigned from the membership with effect from 01-Oct-2023 and
Mr. Chandan Patel, has resigned from the chairmanship with effect from 01-Oct-2023. Ms. Shruti Gupta was
appointed as chairman of the committee with effect from 30-Sep-2023. Ms. Ambika Jindal and Ms. Shruti Arora
were become a member of the committee with effect from 30-Sep-2023. The Committee was re-constitute after the
25^th Annual General Meeting.

The Nomination and Remuneration Committee was re-constituted, accordance with the Section 178 of Companies
Act, 2013 and Regulation 19 of SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015.

The terms of reference of the Committee are as follows:

1. Formulation of the criteria for determining qualifications, positive attributes and independence of a director and
recommend to the Board a policy, relating to the remuneration of the directors, key managerial personnel and
other employees;

2. Formulation of criteria for evaluation of Independent Directors and the Board;

3. Devising a policy on Board diversity;

4. Identifying persons who are qualified to become directors and who may be appointed in senior management in
accordance with the criteria laid down, and recommend to the Board their appointment and removal.

The remuneration policy as adopted by the company envisages payment of remuneration according to qualification,
experience and performance at different levels of the organization. The workers at the factory as well as those
rendering clerical, administrative and professional services are suitably remunerated according to the industry
norms.

The details of the composition of the Nomination and Remuneration Committee are as under:

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Ms. Shruti Gupta	Chairman	Independent Director
2.	Ms. Ambika Jindal	Member	Independent Director
3.	Ms. Shruti Arora	Member	Independent Director

Details of Remuneration paid to Managing Director/Whole-time Director for the year ended 31^st March, 2024 is
given below:

Name	Sitting Fees (Rs.)	Salary (Rs.)	Perquisites and allowances etc. (Rs.)	Commission (paid) (Rs)	Total (Rs.)
Mr. Ajit Kumar Lakra	Nil	18,00,000	Nil	Nil	18,00,000
Mr. Vivek Lakra	Nil	18,00,000	Nil	Nil	18,00,000
Mrs. Gita Lakra	Nil	12,00,000	Nil	Nil	12,00,000

Further sitting fee is paid to independent directors for attending the Board Meetings of the Company.

During the year, the Nomination and Remuneration Committee Meeting was held on 26-Apr-23, 08-Sep-23 and 11-
Dec-23. all members were duly present in the meeting.

STAKEHOLDERS RELATIONSHIP COMMITTEE
Appointment/Resignation of Members:

Mr. Rohit Malhotra and Mr. Naveen Malhotra had resigned from the membership with effect from 01-Oct-2023 and
Mr. Chandan Patel, has resigned from the chairmanship with effect from 01-Oct-2023. Ms. Shruti Gupta was
appointed as chairman of the committee with effect from 30-Sep-2023. Ms. Ambika Jindal and Ms. Shruti Arora
were become a member of the committee with effect from 30-Sep-2023. The Committee was re-constitute after the
25^th Annual General Meeting.

The Stakeholders Relationship Committee was re-constituted, accordance with the Section 178 of Companies Act,
2013 and Regulation 20 of SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015. The Company
look after the grievances of the Stakeholders and Redressal of Investor’s complaints related to transfer of Shares,
non-receipt of Balance Sheet etc.

The Committee performs following functions:

• look into the redressal of grievances of shareholders, debenture holders and other security holders;

• To investigate complaints relating to allotment of shares, approval of transfer or transmission of shares;

• To consider and resolve the grievances of the security holders of the company including complaints related to
transfer of shares, non-receipt of balance sheet, non-receipt of declared dividends; and

• Issue of Duplicate Share Certificates.

• Review of Share dematerialization and rematerialisation.

• Monitoring the expeditious Redressal of Investor Grievances.

• Monitoring the performance of Company’s Registrar & Transfer Agent.

• All other matters related to the shares.

The Composition of the ''Stakeholders'' Relationship Committee is as under:-

Sr. No.	Name of the Director	Status	Nature of Directorship
1.	Ms. Shruti Gupta	Chairman	Independent Director
2.	Ms. Ambika Jindal	Member	Independent Director
3.	Ms. Shruti Arora	Member	Independent Director

The Company has an investor base of over 97 shareholders as on 31st March, 2024. During the year under review,
no complaints remained pending. There is no valid request pending for share transfer as at the year end. The
Stakeholders'' Relationship Committee met two times on 30-May-2023 during the year.

PERFORMANCE EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligation and Disclosure Requirements)
Regulations, 2015 the Nomination and Remuneration Committee has carried out an Annual Performance
Evaluation of the Board and of the Individual Directors has been made. During the year, the Evaluation cycle was
completed by the Company internally which included the evaluation of the Board as a whole, Board Committees
and Directors. The Evaluation process focused on various aspects of the Board and Committees functioning such
as composition of the Board and Committees, experience, performance of duties and governance issues etc.
Separate exercise was carried out to evaluate the performance of individual Directors on parameters such as
contribution, independent judgment and guidance and support provided to the Management. The results of the
evaluation were shared with the Board, Chairman of respective Committees and individual Directors.

CORPORATE GOVERNANCE

The Company strives to incorporate the appropriate standards for corporate governance. However, pursuant to
Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Company is not
obligated to mandatorily comply with the provisions of certain regulations of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and therefore the Company has not provided a separate report on
Corporate Governance, although few of the information are provided in this report under relevant heading.

DIRECTORS'' RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information and explanations obtained by them, your
Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:

a) That in the preparation of the annual financial statements for the year ended 31^st March, 2024; the applicable
accounting standards have been followed along with proper explanation relating to material departures, if any;

b) That such accounting policies as mentioned in Notes to the Financial Statements have been selected and
applied consistently and judgment and estimates have been made that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as at 31^st March, 2024.

c) That proper and sufficient care has been taken for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;

d) That the annual financial statements have been prepared on a going concern basis;

e) That proper internal financial controls were in place and that the financial controls were adequate and were
operating effectively.

f) That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate
and operating effectively.

AUDITORS

Statutory Auditors

M/s. R.K. Deepak & Co., Chartered Accountants (Registration No. 003145N), had been appointed as Statutory
Auditors of the Company at the 23^rd Annual General Meeting held on 30^th September, 2021 to hold office till
conclusion of 28^th Annual General Meeting of the Company.

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 PDM and Associates (CP No.:
25003, ACS: A25988), Company Secretaries for the financial year 2023-2024 to undertake the Secretarial Audit of
the Company.

The Secretarial Audit Report for the financial year ended 31^st March, 2024 is annexed with Board Report.

Internal Auditors

M/s. Budh Kumar & Associates, Chartered Accountant has been re-appointed as Internal Auditor in the Board
meeting held on 08^th September, 2023 for the year 2023-2024.

Cost Auditor

In terms of Section 148 of the Companies Act, 2013 and rules made there under, Cost Audit is not applicable to the
Company and its products/business.

EXPLANATION ON STATUTORY AUDITOR''S REPORT/SECRETARIAL AUDITOR''S REPORT

Neither the Statutory Auditor nor Secretarial Auditor of the Company, in their respective reports have made any
qualification, reservation, adverse marks or disclaimers. Accordingly, no Explanations thereon are required to be
furnished.

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

The details of Energy, Technology, Absorption, 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.

PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 read with Rule 5, of The Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is as follows:

The Company has one Managing Director and the remuneration paid to him is INR 18,00,000 p.a.

The Remuneration paid to all Key management Personnel was in accordance with remuneration policy adopted by
the Company.

REMUNERATION POLICY

The Board has, on the recommendation of the Nomination & Remuneration committee framed a policy for selection
and appointment of Directors, Senior Management and their remuneration.

I. In determining the remuneration of the Senior Management Employees (i.e. KMPs and senior officers just
below the board level) the Committee shall ensure / consider the following:

i. the relationship of remuneration and performance benchmark is clear

ii. the balance between fixed and incentive pay reflecting short-term and long-term performance objectives,
appropriate to the working of the Company and its goals;

iii. the remuneration is divided into two components viz. fixed component comprising salaries, perquisites and
retirement benefits and a variable component comprising performance bonus; the remuneration including
annual increment and performance bonus is decided based on the criticality of the roles and responsibilities,
the Company’s performance vis-a-vis the annual budget achievement, individuals performance and current
compensation trends in the market.

II. The Managing Director or Whole Time Director will carry out the individual performance review based on the
standard appraisal matrix and shall take into account the appraisal score card and other factors and thereafter
shall recommend the annual increment and performance incentive to the Committee for its review and
approval.

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.

RELATED PARTY TRANSACTIONS

There were no contracts or arrangements entered into by the company in accordance with provisions of section
188 of the Companies Act, 2013.

However, there were certain related party transactions in terms of regulation 23 of the SEBI (listing obligations and
disclosure requirements) regulations, 2015 which were entered into on an arm’s length basis and were in the
ordinary course of business.

There are 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.

DETAILS OF SUBSIDIARY, JOINT VENTURE OR ASSOCIATES

The Company has no Subsidiary, Joint Ventures or Associates.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in Form MGT-9, as required under Section 92 of the
Act, is annexed which forms an integral part of this Report and is also available on the Company’s website viz.
www.superfineknitters.com.

PARTICULARS OF LOAN, GUARANTEES AND INVESTMENTS UNDER SECTION 186

The Company has not given any loan or given guarantee for loans taken by others from banks or financial
institutions during the year.

Further, during the year, a sum of INR 249.60 lakh has been taken as unsecured loan from Directors of the
Company and repaid a sum of INR 325.66 lakh, making a total unsecured loan of Rs 139.29 lakh and declarations
pursuant to Rule 2(c)(viii) of the Companies (Acceptance of Deposits) Rules, 2014 have been received for the
same.

DEPOSITS

The Company has not accepted any deposits during the year and no deposits remained unpaid or unclaimed as at
the end of the year under review and there has been no default in the repayments of deposits.

CORPORATE SOCIAL RESPONSIBILITY

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.

CHANGE IN NATURE OF BUSINESS

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

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

During the year under review, No Order has been passed by Regulators or Court or Tribunals.

HUMAN RESOURCES

The well discipline workforce which has served the Company for three decades lies at the very foundation of the
Company’s major achievements and shall well continue for the years to come. The management has always
carried out systematic appraisal of performance and imparted training at periodic intervals. The Company has
always recognized talent and has judiciously followed the principle of rewarding performance.

RISK MANAGEMENT POLICY

Although the Company has long been following the principle of risk minimization as is the norm in every industry, it
has now become a compulsion. Therefore, in accordance applicable provisions of SEBI (Listing Regulation and
Disclosure Requirements) Regulations 2015 the Board members were informed about risk assessment and
minimization procedures after which the Board formally adopted steps for framing, implementing and monitoring the
risk management plan for the Company. The main objective of this policy is to ensure sustainable business growth
with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the
business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk
Management, in order to guide decisions on risk related issues. In today’s challenging and competitive
environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are
imperative. The common risks inter alia are: Regulations, competition, Business risk, Technology obsolescence,
Investments, retention of talent and expansion of facilities. Business risk, inter-alia, further includes financial risk,
political risk, fidelity risk, legal risk. As a matter of policy, these risks are assessed and steps as appropriate are
taken to mitigate the same.

POLICY ON PRESERVATION OF THE 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 in
time avoiding superfluous inventory of Documents.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate system of internal control to safeguard and protect from loss, unauthorized use or
disposition of its assets. All the transactions are properly authorized, recorded and reported to the Management.
The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts
and reporting financial statements. The Internal Auditor of the Company checks and verifies the internal control and
monitors them in accordance with policy adopted by the Company. Even through this non-production period the
Company continues to ensure proper and adequate systems and procedures commensurate with its size and
nature of its business.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

In order to ensure that the activities of the Company and its employees are conducted in a fair and transparent
manner by adoption of highest standards of professionalism, honesty, integrity and ethical behavior the company
has adopted a vigil mechanism policy. This policy is explained in Corporate Governance Report and also posted on
the website of company.

SEXUAL HARASSMENT PREVENTION

The Company has in place a policy for prevention of sexual harassment at the workplace in line with the
requirement of the Sexual Harassment of Women at the workplace (Prevention, Prohibition and Redressal) Act,
2013 and the Rules there under.

The Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual
harassments. All the employees of the Company (permanent, temporary, contractual and trainees) are covered
under this policy.

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 Committee has not received any complaints of harassment.

FINANCIAL VIABILITY OF COMPANY

The Company has not defaulted in repayment of dues to financial institutions, banks and not given any guarantee
for loans taken by others from banks or financial institutions during the year.

DETAILS OF APPLICATION / ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY
CODE, 2016

Neither any application was made nor any proceeding pending under the Insolvency and Bankruptcy Code, 2016
(31 of 2016) during the financial year.

FRAUDS REPORTED BY AUDITORS UNDER SECTION 143(12), OTHER THAN THOSE WHICH ARE
REPORTABLE TO THE CENTRAL GOVERNMENT.

The Statutory Auditors have not reported any incident of fraud to the Board of Directors of the Company.

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

As Company has not done any one-time settlement during the year under review hence no disclosure is required.

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.

MANAGEMENT DISCUSSION AND 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, are annexed herewith and forms part of this report.

GENERAL DISCLOSURES

Directors 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:

1. Issue of Equity Shares with differential rights as to dividend, right issue.

2. Issue of Sweat Equity Shares to Employees of the Company.

3. Issue of Employee Stock Options to Employees of the Company.

4. Purchase of its own shares either directly or indirectly.

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 Director 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 in the years to come.

For and on behalf of the Board
Super Fine Knitters Limited

Place: Ludhiana Ajit Kumar Lakra Vivek Lakra

Date: 04^th September, 2024 Managing Director Whole Time Director

DIN: 01067195 DIN: 01067219

C-5, Phase V, Focal Point, C-5, Phase V, Focal Point,

Ludhiana, 141010 Ludhiana, 141010