Swastika Investmart Ltd

Dear Shareholders Swastika Investmart Limited

Your Directors are pleased to present the 32^nd Annual Report on the business and operations of Swastika Investmart Limited along with Standalone and Consolidated Audited Financial Statements of Company for the financial year ended March 31, 2024.

1. State of Affairs and Financial Performance:

1.1 Financial Highlights and Summary of Standalone and Consolidated Financial Statements

The Standalone andConsolidated financial statements of the Company for the financial year ended March 31, 2024, have been prepared in accordance with the Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs and as amended from time to time. The performance highlights and summarized financial results of the Company are given below:

(Amount in Lakhs except EPS)

1.2 Operational and State of Company's Affairs

On a standalone basis, your company has recorded revenue from operation of 11092.23 Lakhs for the financial year ended 31st March 2024 as against 8546.11 Lakhs in the previous year, reflecting an increase of 29.79%.

The company reported standalone net profit after tax before other comprehensive income of 1211.45 lakhs as against previous year in which Company posted net profit before other comprehensive income of 593.86 Lakhs, reflecting the increase of 103.99%. On a consolidated basis, your company has recorded revenue from operation of 11417.38 Lakhs for the financial year ended 31st March 2024 as against 8833.53 Lakhs in the previous year, recording an increase of 29.25%.

Your company reported consolidated net profit before other comprehensive income of 1228.50 lakhs as against previous year in which Company posted net profit before other comprehensive income of 614.78 Lakhs, reflecting the increase of 99.83%. The consolidated financials reflect the cumulative performances of Swastika Investmart Limited along with its wholly owned subsidiaries companies. Detailed description about the business carried out is contained in the Management Discussion and Analysis report.

1.3 Future Outlook

Bolstered by a strong balance sheet, an expansive portfolio of diverse products and services, and an exceptional team of passionate professionals, we are excited to embark on a new phase of growth and expansion. In FY 2024-25, our key focus areas will be to strengthen our capabilities across the entire value chain of the business, as we introduce more products and service offerings, leading to expanding revenue streams and better margins. Through strategic partnerships, technological advancements, and a persistent pursuit of excellence, the Company is poised to emerge stronger from the challenges and capitalize on new growth opportunities in the future.

Further, our strategy to diversify our business model towards more sources of annual income is showing definite results. Our Investment Banking division has launched 4 SME IPOs, all of which have been listed successfully. Furthermore, we have a promising pipeline with a large number of potential IPOs in various stages of development, indicative of our strong market position and ability to identify and capitalize on opportunities.

2. Annual Return

Pursuant to Section 134(3)(a) read with Section 92(3) of the Companies Act, 2013, the requirement to place copy of Annual Return for Financial year 2023-24 is applicable to the Company and the same is available on the website of the Company i.e.

https://cdn.prod.website-files.com/64b51ae831e2d786aa8442e5/6657f957d2ec23e4d0e69758_MGT7_202324.pdf

3. Share Capital

The Paid-up Equity Share Capital as on 31st March 2024 stood at 295.97 lakhs. During the year under review, the company has not issued any shares with differential voting rights nor granted any stock option or sweat equity shares.

4. Preferential Issue of Convertible Share Warrants

Pursuant to the approval of the Board at its meeting held on 7th November, 2023 and approval of the members of the Company at their ExtraOrdinary General Meeting ('EGM') held on 2nd December, 2023, upon receipt of 25% of the issue price per warrant (i.e. 77.75 per warrant) as upfront payment ("Warrant Subscription Price"), the Company, on 20th December, 2023 has allotted 10,60,000 (Ten Lakhs Sixty Thousand) convertible share warrants, on preferential basis to the Promoter/Promoter Group of the Company and certain identified non-promoter persons/entity, at a price of 311/- each ("Warrant Issue Price").

Each warrant, so allotted, is convertible into one fully paid-up equity share of the Company having face value of 10/- (Rupees Ten only) each in accordance with the provisions of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, on payment of the balance consideration of 233.25/- per warrant ("Warrant Exercise Price"), being 75% of the issue price per warrant from the Allottees pursuant to exercise of conversion option against each such warrant, within 18 months from the date of allotment of warrants.

The details of utilization of funds are given hereunder:

Further, as on 31st March 2024, except Mr. Sunil Nyati, Chairman & MD and Mrs. Anita Nyati, Whole Time Director of the Company none of the Directors of the company hold instruments convertible into equity shares of the Company.

5. Number of Meetings of the Board, its Committees & AGM

The Board met 7 (seven) times during the FY 2023-24, the details of which are given in the Corporate Governance Report forming part of the Annual Report. The maximum interval between any two meetings did not exceed 120 days, as prescribed in the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations").

Information on the Audit Committee, Nomination and Remuneration Committee (“NRC”) and Stakeholders Relationship Committee and meetings of those Committees held during the year is given in the Corporate Governance Report.

Further, 31st Annual General Meeting of the Company for financial year 2022-23 was held on 12th September, 2023 and One Extra Ordinary General Meeting of the Company was held on 2^nd December, 2023 during the financial year 2023-24.

6. Dividend

Based on the Company's performance and keeping in mind the shareholders' interest, the Board of Directors are pleased to recommend a final dividend of 20% i.e, 2/- per Equity Share of face value 10/- each fully paid up aggregating to 59.194 lakhs for the financial year 2023-24, subject to approval of the members in ensuing 32nd Annual General Meeting.

Amount transferred to Investor Education and Protection Fund

Pursuant to the applicable provisions of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (Rules) as amended, all unpaid or unclaimed dividends are required to be transferred by the Company to the Investor Education and Protection Fund (IEPF) established by the Central Government, after completion of seven years from the date of transfer to Unpaid Dividend Account of the Company. Hence, during the Financial Year 2023-24 unpaid/unclaimed dividends of 0.67 Lakhs relating to financial year ended 2015-16 were transferred to the Investor Education and Protection Fund.

Further, according to the Rules, the shares in respect of which dividend has not been paid or claimed by the shareholders for seven consecutive years or more shall also be transferred to IEPF Authority. Accordingly, during the financial year 2023-24, the Company has transferred 2062 equity shares related to dividend declared for financial year 2015-16 to account of IEPF Authority.

Details of Nodal Officer

The Company has appointed Ms. Shikha Agrawal, Company Secretary and Compliance Officer as the Nodal Officer for the purpose of coordination with Investor Education and Protection Fund Authority. Details of the Nodal Officer are available on the website of the Company at https://www.swastika.co.in/investor-relation/otheruserfulinfo

7. Amounts transferred to reserves

During the year under review, your Company has transferred 250.00 lakhs to General Reserves out of the Profits available for appropriation.

8. Deposits

The Company has not accepted any deposits, within the meaning of Section 73 of the Companies Act, 2013, read with the Companies (Acceptance of Deposits) Rules, 2014 as amended from time to time.

Details of deposits which are not in compliance with the requirements of Chapter V of the act: Not applicable, since Company has not accepted any deposits, therefore the question does not arise regarding non compliance with the requirements of Chapter V of the Act.

Disclosure of unsecured loan from Directors

Pursuant to Section 2(31) of the Companies Act, 2013 read with Rule 2(1)(c)(viii) of Companies (Acceptance of Deposits) Rules, 2014, (including any statutory modification or re-enactment thereof for the time being in force), the Company had not received any unsecured loan from directors during the financial year 2023-24.

9. Subsidiary Companies, Joint Ventures or Associate Companies

As on 31st March 2024, the Company had three wholly owned subsidiaries i.e.:

1. Swastika Fin-Mart Private Limited

2. Swastika Insurance Broking Services Limited and,

3. Swastika Investmart (IFSC) Private Limited.

There are no associate companies or joint venture Companies within the meaning of Companies Act, 2013. Further there are no companies that have become or ceased to be the subsidiary, associate or joint venture of the Company during the financial year 2023-24.

During the financial year, your Board of Directors had reviewed the affairs of the subsidiaries. The consolidated financial statements of your Company are prepared in accordance with Section 129(3) of the Companies Act, 2013; and forms part of this Annual Report.

A separate statement containing salient features of the Financial Statements of all the Subsidiaries in accordance with Section 129(3) of the Companies Act, 2013 and the rules made there under in the prescribed Form AOC-1 are annexed to this Report asANNEXURE-A and hence is not repeated here for sake of brevity. There has been no material change in the nature of the business of the subsidiary company. In accordance with fourth proviso to Section 136(1) of the Companies Act, 2013, the Annual Report of your Company, containing inter alia the audited standalone and consolidated financial statements of the Company for the financial year ended 31st March, 2024, along with relevant documents, has been placed on the website of the Company at www.swastika.co.in. Further, audited financial statements together with related information of each of the subsidiary companies have also been placed on the website of the Company at www.swastika.co.in. In terms of Section 136 of the Companies Act, 2013 ('the Act'), financial statements of the subsidiary companies are not required to be sent to the members of the Company. The Company shall provide a copy of the annual accounts of its subsidiary companies to the members of the Company on their request. The annual accounts of its subsidiary companies will also be kept open for inspection at the registered office of the Company during business hours.

Pursuant to the requirements of Regulation 34(3) read with Schedule V of the SEBI Listing Regulations, the details of Loans/ Advances made to and investments made in the subsidiaries have been furnished in Notes forming part of the Accounts.

Material Subsidiary

Swastika Fin-mart Private Limited is material wholly owned subsidiary of the Company as per the thresholds laid down under the Regulation 16 of SEBI Listing Regulations. The Board of Directors of the Company has approved a Policy for determining material subsidiaries which is in line with the SEBI Listing Regulations as amended from time to time. The Policy has been uploaded on the Company's website at

https://assets-global.website-files.com/64b51ae831e2d786aa8442e5/64ba11249332a04257128a73_Policy%20for%20determining%20material%20subsidiary%20companies.pdf

10. Consolidated Financial Statements

The consolidated financial statements of the Company for the year ended 31st March 2024, have been prepared in accordance with the Indian Accounting Standards (IND AS) 110 - "Consolidated Financial Statements" as notified by Ministry of Corporate Affairs and as per the general instructions for preparation of consolidated financial statements given in Schedule III and other applicable provisions of the Act, and in compliance with the SEBI Listing Regulations.

The financial statements of the subsidiaries and the related detailed information will be made available to the shareholders of the Company seeking such information. The Audited Consolidated Financial Statements along with the Auditors' Report thereon forms part of the Annual Report.

11.Details of Directors and Key Managerial Personnel

The Company has a professional Board with an optimum combination of executive and non-executive directors who bring to the table the right mix of knowledge, skills and expertise. The Board provides strategic guidance and direction to the Company in achieving its business objectives and protecting the interest of stakeholders. The composition of the Board of Directors of the Company is in accordance with the provisions of Section 149 of the Companies Act, 2013 and Regulation 17 of the SEBI Listing Regulations.

Directors liable to retire by rotation seeking re-appointment

In accordance with the provisions of Section 152(6) of the Companies Act, 2013 and the Company's Articles of Association, Mrs. Anita Nyati, Whole Time Director, (DIN: 01454595) retires by rotation at the forthcoming Annual General Meeting and being eligible offers herself for reappointment. However, her term is fixed and shall not break due to this retirement. Your Directors have recommended her appointment for approval of the shareholders, in the ensuing Annual General Meeting of your Company.

Change inDirectors

During the year under review, on recommendation of Nomination and Remuneration Committee ('NRC'), the Board has appointed Mr. Anshul

Agrawal (DIN: 08058452) and Mr. Tarun Kumar Baldua (DIN: 02212645), as Additional Directors in the category of Non-Executive Independent Directors of the Company for a period of five year with effect from 20th July, 2023. The same has been approved by members in 31st Annual General Meeting held on 12th September, 2023.

Further, second and final term of Mr. Raman Lal Bhutda (DIN: 01789675) has been completed from the close of business hours on 31st March, 2024, consequently he ceased/retired from Directorship of the Company as well as from all the Committees positions. Your Board places on record his deep appreciation of the valuable contribution made by him during his tenure as Independent Director of the Company. Further during the current FY 2024-25, on recommendation of NRC, the Board of Directors in their Meeting held on 3rd May, 2024 subject to the approval of members in ensuing Annual General Meeting, considered and approved: Re-appointment of Mr. Sunil Nyati as Chairman & Managing Director of the Company for term of three years w.e.f. 15th June 2024 to 14th June, 2027.

Re-appointment of Mrs. Anita Nyati as Whole-time Director of the Company for term of three years w.e.f. 1st June, 2024 till 31st May, 2027.

Furthermore, during the current financial year 2024-25, on the recommendation of NRC, the Board at its Meeting held on 6^th June, 2024 considered and approved :- Appointment of Mr. Gyan Chand Jain (DIN: 05124184) as an Additional Director under the category of Non-Executive Independent Director, to hold office for a term of 5 (five) consecutive years commencing from 6^th June, 2024 to 5^th June, 2029 (both days inclusive). Appointment of Mr. Parth Nyati (DIN: 02583324), as an Additional Director on the Board of Directors of the Company with effect from 6^th June, 2024 to hold office up to the date of the ensuing Annual General Meeting of the Company.

Key Managerial Personnel

As on 31st March, 2024 the following have been designated as the Key Managerial Personnel of the Company pursuant to Sections 2(51) and 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended from time to time:

1. Mr. Sunil Nyati (DIN: 00015963), Chairman & Managing Director;

2. Mrs. Anita Nyati (DIN: 01454595), Whole Time Director;

3. Mr. Mahendra Kumar Sharma, Chief Financial Officer;

4. Ms. Shikha Bansal, Company Secretary and Compliance officer

Change in the Key Managerial Personnel

During the year under review, there was no change in the Key Managerial Personnel of the Company.

However during the current financial year 2024-25, on recommendation of Nomination and remuneration Committee, Board of Directors of the Company in their meeting held on 6^th June, 2024 considered and approved appointment of Mr. Parth Nyati (DIN: 02583324) as Whole Time Director of the Company for period of three years w.e.f. 6^th June, 2024 to 5^th June, 2027, subject to approval of the members of the company in forthcoming Annual General Meeting or any other appropriate authority, if any

Disqualifications of directors

During the year under review, declarations were received from the Directors of the Company pursuant to Section 164 of the Companies Act, 2013. Board appraised the same and found that none of the director is disqualified for holding office as director.

12.Declaration by Independent Director

The Independent Directors have submitted the declaration of independence, as required under Section 149(7) of the Companies Act, 2013, stating that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of SEBI Listing Regulations as amended from time to time. Further, In terms of Regulation 25(8) of the SEBI Listing Regulations, the Independent Directors have confirmed that they are not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair or impact their ability to discharge their duties with an objective independent judgment and without any external influence and that they are independent of the Management. The Board of Directors of the Company have taken on record the declaration and confirmation submitted by the Independent Directors after undertaking due assessment of the veracity of the same.

The Board is of the opinion that the Independent Directors of the Company hold highest standards of integrity and possess requisite expertise and experience required to fulfil their duties as Independent Directors.

In terms of Section 150 of the Companies Act, 2013 read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, Independent Directors of the Company have confirmed that they have registered themselves with the databank maintained by The Indian Institute of Corporate Affairs, Manesar ("IICA"). The Independent Directors are also required to undertake online proficiency self-assessment test conducted by the IICA within a period of 2 (two) years from the date of inclusion of their names in the data bank, unless they meet the criteria specified for exemption.

All the Independent Directors of the Company are exempt from the requirement to undertake online proficiency self-assessment test except Mr. Anshul Agrawal (DIN: 08058452) who will undertake required online proficiency self-assessment test within stipulated time period.

13.Directors Responsibility Statement

Pursuant to Section 134(5) of the Companies Act, 2013 the Board of Directors of your Company, to the best of their knowledge, belief, ability and explanations obtained by them, confirm that: i. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; ii. 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 that year; iii. 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; iv. the Directors had prepared the annual accounts on a going concern basis; v. the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and operating effectively; vi. 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.

Based on the framework and testing of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory and secretarial auditors and external agencies, including audit of internal financial controls over financial reporting by the Statutory Auditors and the reviews performed by Management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the Company's internal financial controls were adequate and effective during the financial year 2023-24.

14.Familiarization Programmes imparted to Independent Directors

Your Company has familiarized the Independent Directors, with regard to their roles, rights, responsibilities, nature of the industry in which your Company operates, the business model of your Company etc. The Familiarization Programme was imparted to the Independent Directors during the meetings of the Board of Directors.

The Familiarization Programme for Independent Directors is uploaded on the website of your Company, and is accessible at:

https://assets-global.website-files.com/64b51ae831e2d786aa8442e5/6620e868532f7bbd21397186_Familiarization%20Programme%20for%20Independent%20Directors%202023-24.pdf

15. Meeting of Independent Directors

The Independent Directors met once during the year as on 20th January, 2024. The Meeting was conducted in an informal manner without the presence of the Chairman, the Whole Time Director, the Non-Executive Non-IndependentDirectors and the Chief Financial Officer.

16. Committees of the Board of Directors

The Board is assisted by several committees, whose delegated authority enhances role clarity and the effective execution of responsibilities throughout our business. These committees are tasked with governance issues and provide periodic reports to the Board on their activities. Each committee evaluates its effectiveness by reviewing its activities against approved terms of reference in alignment with delegated powers and authority.

The Details of Committees of the Board are given below:-(i) Audit Committee (ii) Nomination and Remuneration Committee (iii) Stakeholders Relationship Committee (iv)Finance Committee

The details with respect to the composition, powers, roles, terms of reference, Meetings held and attendance of the Directors at such Meetings of the relevant Committees are given in detail in the Report on Corporate Governance of the Company which forms part of this Report.

17. Statement indicating the manner in which formal annual evaluation of the performance of the Board, its Committees and of individual directors has been made

Pursuant to Section 134(3)(p) of the Companies Act, 2013 and SEBI Listing Regulations, the Board of Directors have carried out an annual performance evaluation of its own performance, its Committees, the Directors individually including Independent Directors (where in the concerned Director being evaluated did not participate) based on the criteria and framework adopted by the Board. The Directors were satisfied with the evaluation results, which reflected the overall engagement of the Individual Directors, the Board as a whole and its Committees with the Company. The Board approved the evaluation results as collated by Nomination and Remuneration Committee ("NRC"). The above criteria are broadly based on the Guidance Note on Board Evaluation issued by the Securities and Exchange Board of India on January 5, 2017. The Board considered and discussed the inputs received from the Directors. Also, the Independent Directors at their meeting held on 20th January, 2024 reviewed the following: Performance of Non-Independent Directors and the Board and the Committee as a whole Performance of the Chairperson of the Company, taken into account the views of executive directors and non-executive directors. Assessed the quality, quantity and timeliness of flow of information between the Company's management and the Board, which is necessary for the Board to effectively and reasonably perform their duties.

The Independent Directors has also expressed their satisfaction with overall functioning and implementations of their suggestions.

Performance evaluation criteria for Independent Directors

The performance evaluation criteria for independent directors are determined by the Nomination and Remuneration committee. An indicative list of factors that may be evaluated include participation and contribution by a director, commitment, effective deployment of knowledge and expertise, effective management of relationship with stakeholders, integrity and maintenance of confidentiality and independence of behavior and judgments.

Statement with regard to integrity, expertise and experience of the Independent Director appointed during the year

During the year under review, the Board has appointed Mr. Anshul Agrawal (DIN: 08058452) and Mr. Tarun Kumar Baldua (DIN: 02212645) as an Independent Director in the Company. Further, in the opinion of the Board, all our Independent Directors possess requisite qualifications, experience, expertise and hold high standards of integrity for the purpose of Rule 8(5)(iiia) of the Companies (Accounts) Rules, 2014. List of key skills, expertise and core competencies of the Board, including the Independent Directors, is provided in Corporate Governance Report.

18. Particulars of Loan, Guarantees and Investments u/s 186

Pursuant to Section 186 of the Companies Act, 2013 and Schedule V of the SEBI Listing Regulations disclosure on particulars relating to Investment are stated in Note No. 6 of standalone financial statement. Details of loans given by the Company are stated in Note No. 5 of standalone financial statement. Loans, guarantees and investments are within the limit of Section 186 of the Companies Act, 2013. Loans and investments were made for the purpose of maximum optimum return. Loan given to wholly owned subsidiary were used for its principle business activities only.

19. Particulars of contracts or arrangements with related parties

In line with the requirements of the Companies Act, 2013 and the SEBI Listing Regulations, the Company has formulated a Policy on Related Party Transactions. The Policy can be accessed on the Company's website at https://assets-global.website-files.com/64b51ae831e2d786aa8442e5/655dd3693766e31587eb9218_Policy%20on%20Related%20Party%20Transactions.pdf

The Policy intends to ensure that proper reporting; approval and disclosure processes are in place for all transactions between the Company and Related Parties.

All Related Party Transactions are subjected to independent review by an Audit Committee to establish compliance with the requirements of Related Party Transactions under the Companies Act, 2013 and SEBI Listing Regulations. Prior omnibus approval is obtained for related party transactions which are of repetitive nature and entered in the ordinary course of business and on an arm's length basis.

All Related Party Transactions entered during the year 2023-24 were in Ordinary Course of the Business and at Arm's Length basis. The Company has not entered into any Material Related Party Transactions during the financial year. Further the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013 read with Rule 8(2) Companies (Accounts) Rules, 2014, in Form AOC-2 is set out asAnnexure-B and form part of this report.

Details of related party transactions entered into by the Company, in terms of IND AS-24 have been disclosed in the notes to the standalone/ consolidated financial statements forming part of this Report and Annual Accounts 2023-24.

20. Conservation of Energy, Technology absorption, Foreign exchange earnings and outgo

Information on Conservation of energy as prescribed under Section 134(3) (m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 is not applicable to the present activities of your Company.

(A) Conservation of Energy:

(i) the steps taken or impact on conservation of energy:

The operations of your Company are not energy intensive. However, adequate measures have been initiated to reduce energy consumption. (ii) the steps taken by the company for utilizing alternate sources of energy: The Company has used alternate source of energy, whenever and to the extent possible (iii) the capital investment on energy conservation equipments: Nil

(B) Technology Absorption:

(i) The efforts made towards technology absorption: Technology is a driving force at Swastika. We leverage technology at every level to drive change across the organization. Whether it is to improve the customer's account opening experience, or their ability to choose the right investment strategies, or to ease the life of our internal employees and departments, we use technology to continuously improve our processes to achieve these goals.

(ii) The benefits derived like product improvement, cost reduction, product development or import substitution: Not Applicable. (iii) In case of imported technology (imported during the last three years reckoned from the beginning of the Financial Year): The Company has neither purchased within India nor imported any technology.

(iv) The expenditure incurred on Research and Development:

The Company has not incurred any expenditure on Research and Development during the year under review.

(C) Foreign Exchange Earnings and outgo:

During the year, there was neither inflow nor outflow of foreign exchange.

21. Statement in respect of adequacy of Internal Financial Control with reference to the Financial Statements

Internal Financial Controls laid down by the Company is a systematic set of controls and procedures to ensure orderly and efficient conduct of its business including adherence to the Company's policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial information. Internal financial controls not only require the system to be designed effectively but also to be tested for operating effectiveness periodically. The Board is of the opinion that internal financial controls with reference to the financial statements were tested and reported adequate and operating effectively. The internal financial controls are commensurate with the size, scale and complexity of operations.

22. Corporate Social Responsibility (CSR)

The Company recognizes the responsibilities towards society and strongly intends to contribute towards development of knowledge based economy.

Pursuant to provisions of Section 135(9) of the Companies Act 2013, where the amount to be spent by a company under sub-section (5) of Section 135 does not exceed 50 lakhs (Indian Rupees Fifty lakhs), the requirement under sub-section (1) of Section 135 of the Companies Act 2013, constitution of the Corporate Social Responsibility Committee shall not be applicable and the functions of such Committee provided under this section shall, in such cases, be discharged by the Board of Directors of such company. At present company is not required to constitute any CSR committee as CSR amount is less than 50 Lakhs.

The Company's CSR Policy is available on the Company's web-link:

https://assets-global.website-files.com/64b51ae831e2d786aa8442e5/655f3a3229b683cdbe4d58fa_Policy%20On%20Corporate%20Social%20Responsibilities.pdf

The Company has focused on social cause and implementation of its Corporate Social Responsibility as per Schedule VII of the Companies Act, 2013.

During the financial year ended 31st March, 2024; the Company has spent 20.00 Lakhs on CSR activity.

Further, detailed information report on the CSR policy and the CSR initiatives taken during financial year 2023-24 is given in Annexure-C.

23. Remuneration Policy / Disclosure relating to remuneration of Directors, Key Managerial Personnel and particulars of Employees

In accordance with the provision of Section 178 and other applicable provisions if any, of the Companies Act, 2013 read with the Rules issued there under and the SEBI Listing Regulations, the Board of Directors formulated the Nomination and Remuneration Policy of your Company on the recommendations of the Nomination and Remuneration Committee. Pursuant to Section 134(3) of the Companies Act, 2013, the nomination and remuneration policy of the Company which lays down the criteria for determining qualifications, competencies, positive attributes and independence for appointment of Directors and policies of the Company relating to remuneration of Directors, KMP and other employees is available on the Company's website at

https://assets-global.website-files.com/64b51ae831e2d786aa8442e5/64ba0c8b710dc8828f11974e_Nomination%20And%20Remuneration%20Policy.pdf

The Board of Directors affirms that the remuneration paid to Directors, senior management and other employees is in accordance with the remuneration policy of the Company.

The Disclosure required under Section 197(12) of the Companies Act, 2013 read with the Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended up to date is annexed asAnnexure-Dand forms an integral part of the Board Report.

None of the employee of the company is drawing more than 102.00 Lakhs per annum or 8.50 Lakhs per month for the part of the year, during the year under review. Details of top ten employees in terms of the remuneration and employees in receipt of remuneration as prescribed under rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, containing details prescribed under rule 5(3) of the said rules, will be made available to any member on request, as per provisions of Section 136(1) of the Act. Pursuant to Section 197(14) of the Companies Act, 2013 neither the Managing Director nor Whole Time Director of the Company received any remuneration or commission from any of its subsidiaries.

24. Report on Corporate Governance & Management Discussion Analysis

Your Company has complied with the Corporate Governance requirements under Companies Act, 2013 and as stipulated under the provisions of the SEBI Listing Regulations. A detailed Report on Corporate Governance forms part of this Annual Report. A certificate of Practicing Company Secretary L.N. Joshi and Company, confirming compliance of the Corporate Governance requirements by the Company is attached to the Report on Corporate Governance.

A detailed analysis of the Company's performance is discussed in the Management Discussion and Analysis Report, which forms part of this Annual Report.

25. Disclosure on establishment of Vigil Mechanism/Whistle Blower Policy

The Company has a Whistle Blower Policy and has established the necessary vigil mechanism for directors and employees in conformation with Section 177(9) of the Act and Regulation 22 of SEBI Listing Regulations, to report. No Person has been denied access to the Audit Committee. The details of establishment of the reporting mechanism are disclosed on the website of the Company at the web-link:-

https://assets-global.website-files.com/64b51ae831e2d786aa8442e5/6620e525cf6246ae39f0fda0_Vigil%20Mechanism.pdf

26. Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors has appointed L. N. Joshi & Company, Practicing Company Secretaries, Indore to undertake Secretarial Audit of the Company.

The Secretarial Audit Report given by the Secretarial Auditor of the Company is annexed as Annexure-E and forms an integral part of this Report. There is no qualification, reservation or adverse remark or disclaimer in Secretarial Audit report except the following with Board Explanation:

27. Secretarial Audit of Material Unlisted Subsidiary Company

Swastika Fin-mart Private Limited, a material wholly owned subsidiary of the Company undertakes Secretarial Audit under Section 204 of the Companies Act, 2013. The Secretarial Audit of Swastika Fin-Mart Private Limited for the Financial Year 2023-24 was carried out pursuant to Section 204 of the Companies Act, 2013 read with Regulation 24A of the SEBI Listing Regulations. The Secretarial Audit Report of Swastika Fin-mart Private Limited submitted by L.N. Joshi & Company, Practicing Company Secretaries is annexed as Annexure-Fand forms an integral part of this Report.

28. Annual Secretarial Compliance Report

The Company has undertaken an audit for the financial year 2023-24 for all applicable compliances as per SEBI Regulations and Circulars/ Guidelines issued there under. Pursuant to provision of Regulation 24A, the Annual Secretarial Compliance Report for the financial year 2023-24 has submitted to the stock exchange within prescribed time.

29. Statutory Auditors

During the financial year Sahaj & Company, Chartered Accountants have resigned from the post of statutory Auditors with effect from 20th July, 2023, who were appointed as Statutory Auditors of your Company, for a term of five years to hold office till conclusion of the 33rd Annual General Meeting (AGM to be held in financial year 2024-25) of the Company.

Further pursuant to the provisions of Section 139(8) of the Companies Act, 2013 and on the recommendation of the Audit Committee, the Board of directors in their meeting held on 20th July, 2023 has appointed Fadnis & Gupte LLP, Chartered Accountants, Indore (Firm Registration No. 006600C/C400324) as statutory auditors to fill the casual vacancy caused by the resignation of Sahaj & Company, Chartered Accountants. The appointment of Fadnis & Gupte LLP Chartered Accountants as statutory auditors were also confirmed by members in their 31st Annual General Meeting held on 12th September, 2023, for a term of five consecutive years from the conclusion of 31st Annual General Meeting up to the conclusion of the 36th Annual General Meeting (AGM tobe held for financial year 2027-28).

Explanation to Auditor's Remarks

The Auditors in their report have referred to the notes forming part of the Accounts which are self-explanatory and does not contain any qualification, reservation or adverse remark or disclaimer.

Further, there was no fraud in the Company, which was required to report by Statutory Auditors of the Company under sub-section (12) of Section 143 of Companies Act, 2013.

30. Internal Auditors

The Board of Directors has appointed Anshul K Jain & Associates, Chartered Accountant, as Internal Auditors to conduct the internal audit of the various areas of operations and records of the Company. The periodic reports of the said internal auditors are regularly placed before the Audit Committee along with the comments of the management on the action taken to correct any observed deficiencies on the working of the various departments.

The Audit Committee reviews adequacy and effectiveness of the Company's internal control environment and monitors the implementation of audit recommendations including those relating to strengthening of the Company's risk management policies and systems.

31. Cost Audit

Your Company does not falls within the provisions of Section 148 of Companies Act, 2013 read with the Companies (Cost Records & Audit) Rules, 2014 as amended from time to time, therefore no such record are required to be maintained.

32. MD/CFO Certification

The Managing Director & CFO of your Company have issued necessary certificate pursuant to the provisions of Regulation 17(8) of the SEBI Listing Regulations and the same forms part of this Annual Report.

33. Code of Conduct

The Board of Directors has laid Code of Conduct ("the Code") for the Board members and Senior Management Personnel of your Company. The code of conduct is available on the website of the Company at

https://assets-global.website-files.com/64b51ae831e2d786aa8442e5/64ba10727e4bedcbff43185c_CODE%20OF%20CONDUCT%20FOR%20BOARD%20MEMBERS%20AND%20SENIOR%20MANAGEMENT.pdf

All Board members and senior management personnel have confirmed compliance with the Code. Declaration on adherence to the code of conduct is forming part of the Corporate Governance Report.

34. Statement indicating development & implementation of Risk Management Policy

The Board of Directors has adopted a risk management policy to develop and implement risk management procedure/plan including therein of elements of risks, if any which in the opinion of the Board may threaten the existence of the Company.

35. Material changes & commitments, if any affecting the financial position of the Company

No material changes and commitments affecting the financial position of the company have occurred between the end of the financial year to which the financial statements relate and the date of this Board's Report.

36. Environment and Safety

The Company is engaged in the industry of providing services and not in manufacturing activities, hence it is a non-pollutant Company, however it has a deep concern for the protection and sustainability of environment owing to which it intends to be actively involved in activities for protection of environment. The Company emphasizes on reducing dependence on paper communications and encourages use of electronic means of communication which serves towards environmental protection and sustainable growth.

37. Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013

Your Company has framed and implemented a Policy on Sexual Harassment of Women at Workplace aiming at prevention of harassment of employees which lays down the guidelines for identification, reporting and prevention of undesired behavior. An Internal Committees (IC) was duly constituted in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Further regular employee awareness sessions are conducted to generate awareness about the policy, reporting mechanism and prevention of sexual harassment at the workplace. During the year, the committee has not received any complaint pertaining to sexual harassment.

38. Listing of Shares

The shares of the Company are listed on BSE Limited, and the Company is regular in payment of the listing fees. There was no suspension of trading during the year under review.

39. Insurance

The Company's assets are adequately insured against the loss of fire and other risk, as considered necessary by the Management from time to time. The Company has also taken insurance cover for any claims/losses arising out of its core business of security broking.

40. Compliance of Secretarial Standard

Your Company is in compliance with the applicable Secretarial Standards, issued by the Institute of Company Secretaries of India as amended from time to time and approved by the Central Government under Section 118(10) of the Companies Act, 2013.

41. Depository System

Your Company's shares are tradable compulsorily in electronic form and your Company has connectivity with both the Depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). In view of the numerous advantage offered by the Depository System, members are requested to avail the facility of Dematerialization of the Company's shares on either of the Depositories mentioned as aforesaid.

42. Other Disclosures

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions/events on these items during the year under review: No Significant or material orders passed by the Regulators or Courts or Tribunals which impact the going concern status and the Company's operation in future.

Voting rights which are not directly exercised by the employees in respect of shares for the subscription/ purchase of which loan was given by the Company (as there is no scheme pursuant to which such persons can beneficially hold shares as envisaged under section 67(3)(c) of the Companies Act, 2013).

There has been no change in the nature of business of your Company.

The Business Responsibility Reporting as required by Regulation 34(2) of the SEBI Listing Regulations, is not applicable to your Company for the financial year ending March 31, 2024.

No application was made or any proceeding is pending under the Insolvency and Bankruptcy Code, 2016 during the year in respect of your Company.

There was no one time settlement of loan obtained from the Banks or Financial Institutions.

There was no revision of financial statements and Board's Report of the Company during the year under review.

43. Acknowledgment and Appreciation

The Board of Directors places its gratitude and appreciation for the support and cooperation from its members, SEBI and other regulators, Exchange, banks, financial institutions, and other stakeholders. The Board of Directors also places on record its sincere appreciation for the commitment and hard work put in by the Management and the employees of the Company, and thanks them for yet an excellent year of performance.