Directors Report of Shri Balaji Valve Components Ltd.

Mar 31, 2025

Your directors are pleased to present the Fourteenth Annual Report of the Company covering the operating and financial
performance together with the Audited Financial Statements and the Auditors’ Report thereon for the Financial Year ended
on March 31, 2025.

1. FINANCIAL PERFORMANCE:

Key highlights of consolidated and standalone financial performance for the year ended March 31, 2025, is sum¬
marised as under

(Amount in Lakh)

Particulars	Standalone Financial Statement Year ended
	March 31, 2025	March 31, 2024
Income:
Revenue from Operations	8100.71	8255.98
Other Income	135.13	51.69
Total Income	8235.84	8307.67
Total Expenses	7354.93	7191.01
Profit Before Interest, Depreciation & Taxation	1406.81	1479.12
Less: Interest and Finance Charges (net)	156.64	153.31
Less: Depreciation	368.82	209.15
Profit Before Tax	881.35	1121.76
Add / (Less) Prior Period Adjustment- Income Tax	-	-
Add / (Less): current tax	180.48	339.10
Add/ (Less): MAT Credit Entitlement	-	-
Add / (Less) : Deferred tax	50.39	(49.90)
Add /(Less):- Excess/Short Provision Written back/off	0.03	-
Profit After Tax	650.45	832.56
Less: Proposed Dividend / Interim Dividend including tax on dividend	-	-
Profit for the year	650.45	832.56

2. STATE OF COMPANY AFFAIRS AND FUTURE OUTLOOK:

During the year under review, the company has made Revenue from Operations of Rs. 8100.71 Lakhs and Net Profit
after Tax of Rs. 650.45 Lakhs. The Board of Directors of your Company is optimistic about the future prospects of the
Company. Your directors are of the view that the progressive growth of the company will continue in the subsequent
financial year and are hopeful for bright future prospects. The financial result as reflected in the statement of profit
and loss account of the company is self-explanatory.

3. TRANSFER TO RESERVES

The Board has decided to transfer Rs. 650.45 Lakhs Net Profit to the Reserves for the year underreview.

4. DIVIDEND

The Board of Directors of your company, after considering holistically the relevant circumstances and keeping in view
the company’s dividend distribution policy, has decided it would be prudent not to recommend any Dividend for the
year ended on 31^st March, 2025, and the entire surplus be ploughed back into the reserve of the company.

5. SHARE CAPITAL

During the year under review, there were no changes in the share capital of the company. The details of the share capital
of the company are as follows:

I. Authorised Share Capital:

The Authorised Share Capital of the Company as on March 31, 2025, was Rs. 8,50,00,000 divided into 85,00,000
Equity Shares of Re. 10 each.

II. Paid Up Share Capital:

As on March 31, 2025, the Issued and Paid-up Share Capital of the Company stood at Rs.8,16,00,000/- divided
into 81,60,000 fully paid-up equity shares of face value of Re. 10/- per share.

6. DETAILS OF UTILISATION OF FUNDS & STATEMENT OF DEVIATION(S) OR VARIATION(S)

Pursuant to Regulation 32 (1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''List¬
ing Regulations/LODR’), there was no deviation/variation in the utilization of proceeds as mentioned in the Prospectus.

7. CHANGES IN NATURE OF BUSINESS:

During the year under review, there has been no change in the nature of the business of the
Company.

8. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION:

There have been no material changes or commitments that have affected the financial position of the Company
between the close of FY 2024-25 and the date of this report.

9. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

Pursuant to the Section 124 applicable provisions of the Companies Act, 2013, read with the Investor Education
and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ("IEPF Rules”), all the unpaid
or unclaimed dividends are required to be transferred to the IEPF established by the Central Government, upon
completion of seven (7) years.

Further, according to the Investor Education & Protection Fund ("IEPF”) Rules, the shares in respect of which a
dividend has not been paid or claimed by the Shareholders for seven (7) consecutive years or more shall also be
transferred to the Demat account created by the IEPF Authority.

Your Company does not have any unpaid or unclaimed dividends or shares relating thereto which is required to
be transferred to the IEPF as on the date of this Report.

10. DEPOSITS:

During the year, the Company has not accepted or renewed any deposits from the public interms of the directives
issued by the Reserve Bank of India and the provisions of sections73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules madethere under hence, information regarding outstanding deposits is not
required.

11. SUBSIDIARY, JOINT VENTURE AND ASSOCIATE COMPANY:

There are no subsidiaries, associates or joint venture companies within the meaning of Section 2(6) of the
Companies Act, 2013 ("Act”).

12. DETAILS OF CHANGE IN COMPOSITION OF DIRECTORS OR KEY MANAGERIAL PERSONNEL:

• Constitution of Board:

The Board of the Company comprises Executive, Non-Executive, and Independent Directors. In terms of
Section 149 of the Companies Act, 2013, and rules made thereunder and Listing Regulations, the Company
has two Non-Promoter Non-Executive Independent Directors. In the opinion of the Board of Directors, both
Independent Directors of the Company meet all the criteria mandated by Section 149 of the Companies
Act, 2013, and rules made there under and Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and they are Independent of Management.

A separate meeting of Independent Directors was held on May 24, 2025 to review the performance of Non¬
Independent Directors and the Board as a whole and the performance of the Chairperson of the Company
including the assessment of quality, quantity and timeliness of flow of information between Company
management and Board that is necessary for the board of directors to effectively and reasonably perform their
duties.

The terms and conditions of appointment of Independent Directors and the Code for Independent Directors
are incorporated on the website of the Company.

The Company has received a declaration from the Independent Directors of the Company under Section 149(7)
of the Companies Act, 2013 and 16(1)(b) of the Listing Regulations confirming that they meet the criteria of
Independence as per relevant provisions of the Companies Act, 2013 for the financial year 2024-25. The Board
of Directors of the Company has taken on record the said declarations and confirmation as submitted by the
Independent Directors after undertaking due assessment of the veracity of the same. In the opinion of the
Board, they fulfill the conditions for Independent Directors and are independent of the Management. All the
Independent Directors have confirmed that they are in compliance with Rules 6(1) and 6(2) of the Companies
(Appointment and Qualification of Directors) Rules, 2014, with respect to registration with the data bank of
Independent Directors maintained by the Indian Institute of Corporate Affairs.

None of the Independent Directors has resigned during the year

• Cessation

During the year under review, there was no cessation from Directorship.

• Key Managerial Personnel

Sr. No	Name of Key Managerial Personnel	Designation
1.	Laxmikant Sadashiv Kole	Chairman & Managing Director
2.	Shrinivas Laxmikant Kole	Whole Time Director & CFO
3.	Monika R. Pamnani	Company Secretary and Compliance Officer

13. DECLARATION BY INDEPENDENT DIRECTORS

The Company has received declaration pursuant to Section 149(7) of the Companies Act, 2013 from each
of its Non-Executive and Independent Directors to the effect that they meet the criteria of independence
as provided in Section 149(6) of the Companies Act, 2013, Regulation 16(1) (b) and Regulation 25 of the
SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as "Listing
Regulations”). These declarations have been placed before and noted by the Board.

14. DIRECTORS'' RESPONSIBILITY STATEMENT:

The Directors’ Responsibility Statement referred to in clause (c) of sub-section (3) of Section 134 of the
Companies Act, 2013, shall state

a) That in the preparation of Annual Accounts, the mandatory Accounting Standards have been followed along with
proper explanation relating to material departures.

b) That proper accounting policies have been selected and applied consistently; and the judgments and estimates
that are made are reasonable and prudent so as to give a true and fair view of the state of affairs of the
company as on 31^st March 2025 and of the Profit of the Company for that period.

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

d) That the Annual Accounts have been prepared on a going concern basis.

e) That the directors laid down internal financial controls to be followed by the Company, and such internal financial
controls are adequate and operating effectively.

f ) That 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.

15. COMPOSITION OF THE BOARD AND VARIOUS COMMITTEES AND THEIR MEETINGS

The Board of Directors, along with its committees, provides leadership and guidance to the Management and
directs and supervises the performance of the Company, thereby enhancing stakeholder value.

• BOARD OF DIRECTORS

The Board has a fiduciary relationship in ensuring that the rights of all stakeholders are protected. The Board of Shri
Balaji Valve Components Limited comprises Executive (Whole-Time) and Non-Executive Directors. Independent
Directors are eminent persons with proven records in diverse areas like business, accounting, finance, economics,
administration, etc. The composition of the Board of Directors represents an optimal mix of professionalism,
qualification, knowledge, skill sets, track record, integrity, expertise and diversity.

The Board of Directors, as of March 31, 2025, comprised 5 Directors, out of which 2 were Executive Directors
("ED”), 1 was a Non-Executive Director, and 2 were non-executive ("NEDs”) Independent Directors ("IDs”).

• COMPOSITION OF BOARD:

S. No.	Name	Category	Designation
1.	Mrs. Madhuri Laxmikant Kole	Non-Executive Director (Women Director)	Director
2.	Mr. Laxmikant Sadashiv Kole	Executive Director	Managing Director & Chairman
3.	Mr. Shrinivas Laxmikant Kole	Executive Director	Whole Time Director & CFO(KMP)
4.	Mr. Sanker Parameswaran	Independent Director	Independent Director
5.	Mr. Vasudeo Ganpatdas Gujrathi	Independent Director	Independent Director

• BOARD MEETINGS:

The Board of Directors duly met 5 (Five) times at regular intervals during the mentioned financial year, and
in respect of which meetings proper notices were given and the proceedings were properly recorded and
signed in the Minutes Book maintained for the purpose. The intervening gap between the two meetings was
within the period prescribed under the Companies Act, 2013. The dates on which meetings were held are
as follows:

S. No.	Date of Meeting	Total Number of directors as on the date of the meeting	Total Number of Directors Attended the meeting	% of attendance
1.	07-05-2024	5	5	100
2.	30-06-2024	5	5	100
3.	23-08-2024	5	5	100
4.	09-11-2024	5	5	100
5.	06-03-2025	5	5	100

• ANNUAL GENERAL MEETINGS:

S. No.	Date of Meeting	Total Number of Members as on the date of meeting	Total Number of Members Attended the meeting	% of attendance
1.	14/09/2024	1407	21	1.49%

• COMMITTEE MEETINGS:

COMMITTEES OF THE BOARD:

The Board of Directors has constituted the following Committees, and their details arehereunder:

a) NOMINATION AND REMUNERATION COMMITTEE:

As per provision of section 178, Schedule V and other applicable provisions of the Companies Act, 2013
read with rule 6 of the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to
constitute a Nomination and Remuneration Committee.

Hence, the Board constituted Nomination and Remuneration Committee which consists of Two Independent
Directors and One Non-Executive Director as of 31^st March, 2025.

The detailed composition of the members of the Nomination and Remuneration Committee at present is given
below:

NOMINATION AND REMUNERATION COMMITTEE
Name	Designation	Designation
Vasudeo Ganpatdas Gujrathi	Independent Director	Chairman
Madhuri Laxmikant Kole	Non-Executive Director	Member
Sanker Parameswaran	Independent Director	Member

In terms of requirements prescribed under Section 178(3) of the Companies Act, 2013, the Nomination and
Remuneration Policy inter alia provides the terms for appointment and payment of remuneration to Directors and
Key Managerial Personnel.

The Nomination and Remuneration Policy, as adopted by the Board of Directors, is placed on the website of the
Company at www.balajivalvecomponents.com

b) AUDIT COMMITTEE:

As per provisions of section 177 and other applicable provisions of the Companies Act, 2013,read with rule 6 of
the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to constitute an Audit
Committee. Hence, the Board constituted an Audit Committee which consists of two Independent Directors
and One Executive Director as on 31^st March, 2025. The detailed composition of the members of the Audit
Committee at present is given below:

S. No.	Name of Meeting	Date of Meeting	Total Number of members as on the date of meeting	Total Number of members Attended the meeting	% of attendance
1.	AUDIT COMMITTEE	07-05-2024	3	3	100
2	AUDIT COMMITTEE	23-08-2024	3	3	100
3	AUDIT COMMITTEE	09-11-2024	3	3	100
4	AUDIT COMMITTEE	06-03-2025	3	3	100
5	CSR COMMITTEE	24-03-2025	3	3	100
6	SR COMMITTEE	24-03-2025	3	3	100
7	NRC COMMITTEE	30-06-2024	3	3	100
8	NRC COMMITTEE	23-08-2024	3	3	100

AUDIT COMMITTEE MEMBERS
Name	Designation	Designation
Sanker Parameswaran	Independent Director	Chairman
Vasudeo Ganpatdas Gujrathi	Independent Director	Member
Laxmikant Sadashiv Kole	Chairman and Managing Director	Member

c) STAKEHOLDER RELATIONSHIP COMMITTEE:

As per the provision of section 178 sub-section (5) and other applicable provisions of the Companies Act, 2013
read with rule 6 of the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required
to constitute a Stakeholder Relationship Committee. Hence, the Board constituted a Stakeholder Relationship
Committee which consists of one Independent Director, one Executive, and One Non-Executive Director as on

STAKEHOLDERS RELATIONSHIP COMMITTEE
Name	Designation	Designation
Madhuri Laxmikant Kole	Non-Executive Director	Chairman
Shrinivas Laxmikant Kole	Whole Time Director	Member
Sanker Parameswaran	Independent Director	Member

d) CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:

As per the provisions of section 135 sub-section (1) and other applicable provisions of the Companies Act,
2013, read with rules made thereunder of the Companies (Meetings of Board and its Power) Rules, 2014, the
Board was required to constitute a Corporate Social Responsibility Committee. Hence, the Board constituted
a Corporate Social Responsibility Committee which consists of one Independent Director and two Executive
Directors as on 31^st March, 2025. The detailed composition of the members of the Stakeholder Relationship
Committee at present is given below:

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
Name	Designation	Designation
Laxmikant Sadashiv Kole	Managing Director & Chairman	Chairman
Shrinivas Laxmikant Kole	Whole Time Director & CFO	Member
Sanker Parameswaran	Independent Director	Member

16. DETAIL OF FRAUD REPORTED BY AUDITORS:

During the year under review, there was no fraud reported by the auditors to the Board under section
143(12) of the Companies Act, 2013.

17. POLICY ON DIRECTORS'' APPOINTMENT AND REMUNERATION

The Company has formed a Nomination and Remuneration Committee, which has framed the Nomination
and Remuneration Policy. The Committee reviews and recommends to the Board of Directors about
remuneration for Directors and Key Managerial Personnel and other employees up to one level below Key
Managerial Personnel. The Company does not pay any remuneration to the Non-Executive Directors of the
Company other than a sitting fee for attending the Meetings of the Board of Directors and Committees of
the Board. Remuneration to Executive Directors is governed under the relevant provisions of the Act and
approvals.

The Company has devised the Nomination and Remuneration Policy for the appointment, reappointment
and remuneration of Directors and Key managers. All the appointments, reappointments, and remunerations
of Directors and Key Managerial Personnel are as per the Company''s Nomination and Remuneration Policy.
The Nomination and Remuneration Policy is also available on the website of the Company https://www.
balajivalvecomponents.com/investor-details?type=5 in the head of Policies & Code.

The Board of Directors of the Company has laid down a code of conduct for all the Board Members and
Senior Management of the Company. The main object of the Code is to set a benchmark for the Company''s
commitment to values and ethical business conduct and practices. Its purpose is to conduct the business

of the Company in accordance with its value systems, fair and ethical practices, applicable laws, rules and
regulations. Further, the Code provides for the highest standard of professional integrity while discharging
the duties and promoting and demonstrating professionalism in the Company.

All the Board Members and Senior Management of the Company have affirmed compliance with the code
of conduct for the financial year ended on March 31, 2025, as required by Regulation 26(3) of the Listing
Regulations. A declaration signed by the Chairman & Managing Director to this effect is attached as a part
of this Annual Report in Annexure I. The code of conduct is also available on the website of the Company
https://www.balajivalvecomponents.com/investor-details?type=5

18. POLICY FOR PREVENTION OF INSIDER TRADING

The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 came into
effect on May 15, 2015 to put in place a framework for the prohibition of insider trading in securities and
to strengthen the legal framework thereof. Pursuant to Regulation 8 of Securities and Exchange Board
of India (Prohibition of Insider Trading) Regulations, 2015, the Company has formulated and adopted
the Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information
("Code of Fair Disclosure https://www.balajivalvecomponents.com/upload/pdf/CODE%20OF%20FAIR%20
DISCLOSURE%20UNDER%20UPSI.pdf

Further, pursuant to Regulation 9 of the Securities and Exchange Board of India (Prohibition of Insider
Trading) Regulations, 2015, the Company has formulated and adopted the Code of Conduct for Prevention
of Insider Trading. The Code lays down guidelines and procedures to be followed and disclosures to be
made while dealing with the shares of the Company, and cautioning them of the consequences of non¬
compliance.

The Company Secretary has been appointed as a Compliance Officer and is responsible for monitoring
adherence to the Code. The code of conduct to regulate, monitor and report trading by insiders is also
available on the website of the Company https://www.balajivalvecomponents.com/upload/pdf/CODE%20
0F%20FAIR%20DISCL0SURE%20UNDER%20UPSI.pdf.

19. VIGIL MECHANISM/WHISTLEBLOWER POLICY:

The Company is committed to principles of professional integrity and ethical behaviour in the conduct of
its affairs. The Whistle-blower Policy provides for adequate safeguards against victimisation of director(s)
/ employee(s) who avail of the mechanism and also provides for direct access to the Chairperson of
the Audit Committee. It is affirmed that no person has been denied access to the Audit Committee. The
Compliance Officer and Audit Committee are mandated to receive the complaints under this policy. The
Board on a yearly basis presents an update on the whistleblower policy. Whistleblower policy is available
on the website of the Company at https://www.balajivalvecomponents.com/upload/pdf/POLICY ON VIGIL
MECHANISM[1].pdf

The Policy ensures complete protection to the whistle-blower and follows a zero-tolerance approach to
retaliation or unfair treatment against the whistle-blower and all others who report any concern under this
Policy. During the year under review, the Company did not receive any complaint of any fraud, misfeasance
etc. The Company''s Whistle Blower Policy (Vigil Mechanism) has also been amended to make employees
aware of the existence of policies and procedures for inquiry in case of leakage of Unpublished Price
Sensitive Information to enable them to report on leakages, if any, of such information.

20. BOARD EVALUATION

The Board evaluated the effectiveness of its functioning, that of the Committees and of individual Directors,
pursuant to the provisions of the Act and SEBI Listing Regulations.

• Degree of fulfilment of key responsibilities towards stakeholders (by way of monitoring corporate
governance practices, participation in long-term strategic planning, etc.);

• Structure, composition, and role clarity of the Board and Committees;

• Extent of co-ordination and cohesiveness between the Board and its Committees;

• Effectiveness of the deliberations and process management;

• Board/Committee culture and dynamics; and

• Quality of the relationship between Board Members and the Management
The evaluation frameworks were the following key areas:

1. For Non-Executive & Independent Directors:

• Knowledge

• Professional Conduct

• Comply with Secretarial Standards issued by ICSI Duties,

• Role and functions

2. For Executive Directors:

• Performance as a leader

• Evaluating Business Opportunities and analysis of Risk Reward Scenarios

• Key set investment goal

• Professional conduct and integrity

• Sharing of information with the Board.

• Adherence to applicable government law

21. RISK MANAGEMENT POLICY

The Company is aware of the risks associated with the business. It regularly analyses and takes corrective
actions for managing/mitigating the same.

The Company has framed a formal Risk Management Policy for risk assessment and risk minimization
which is periodically reviewed to ensure smooth operation and effective management control, which is
also available on our website https://www.balajivalvecomponents.com/upload/pdf/POLICY%20QN%20
ROLES%20AND%20RESPONSTBTLTTES%20OF%20AfJDTT%20COMMTTTEE.pdf The Audit Committee also
reviews the adequacy of the risk management framework of the Company, the key risks associated with the
business and measure and steps in place to minimize the same.

22. DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
& REDRESSAL) ACT, 2013

Your Company provides equal opportunities and is committed to creating a healthy working environment
that enables our Minds to work with equality and without fear of discrimination, prejudice, gender bias or
any form of harassment at the workplace. Your Company has in place a Prevention of Sexual Harassment
(POSH) policy in accordance with the requirements of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 which is also available on our website https://www.
balajivalvecomponents.com/investor-details?type=5

Further, your company has set up an Internal Complaint Committee ("ICC") at the corporate office. ICC has
equal representation of men and women and is chaired by senior women employees of the HR Department
of the Company.

Sr. No.	Name Of The Member	Designation
1	Madhuri Laxmikant Kole	Director
2	Shrinivas Laxmikant Kole	Whole Time Director & CFO
3	Sakshi Shrinivas Kole	Business Development Executive
4	Ganesh Ranpise	Manager (Finance And Accounts)
5	Balaji Kalidas Dhawale	HR Executive

23. AUDITORS:

i. STATUTORY AUDITORS:

As recommended by the Audit Committee Meeting held on 23^rd August 2024, the Company board of
directors of the company has approved the Reappointment of M/s Kishor Gujar & Associates, Chartered
Accountants, Pune, having Firm Registration No. FRN-116747W, for the term of the Five Financial years
from the conclusion of the 13^th Annual General Meeting till the conclusion of the 18^th Annual General
Meeting.

The Company reappointed M/s Kishor Gujar & Associates, Chartered Accountants, Pune, having Firm
Registration No. FRN-116747W as the Statutory Auditors for the term of five (5) financial years.

The Auditors'' Report for the financial year ended on March 31, 2025, has been provided in "Financial
Statements” forming part of this Annual Report.

The report of the Statutory Auditor does not contain any qualification, reservation, adverse remark, or
disclaimer. The observations made in the Auditor''s Report are self-explanatory and therefore do not call
for any further comments.

ii. INTERNAL AUDITORS:

M/s JSG And Company Accountants_(FRN: 135589W) has been appointed as an Tnternal Auditor of the
company on Tuesday, 07^th Day of May, 2024, for FY 2023-24 and 2024-25. Tnternal Auditor is appointed
by the Board of Directors of the Company on a yearly basis and based on the recommendation of the Audit
Committee. The Internal Auditor reports their findings on the Internal Audit of the Company to the Audit
Committee on a half-yearly basis. The scope of the internal audit is approved by the Audit Committee.

iii. SECRETARIAL AUDITOR:

Pursuant to Section 204 of the Companies Act, 2013, and rules made thereunder, the Company has appointed
M/s. Chirag Chawra & Co., Practicing Company Secretaries as Secretarial Auditor of the Company for the
financial year ended on March 31, 2025. The Secretarial Audit Report in Form MR-3 for the financial year ended
on March 31, 2025, is attached to the Director’s Report and forms part of this Annual Report. (Annexure-II)

The report of the Secretarial auditor does not contain any qualification, reservation, adverse remark or disclaimer.

24. DIRECTORS'' RESPONSE ON AUDITORS'' QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR
DISCLAIMER MADE

There is no qualification or Disclaimer of Opinion in the Auditor’s Report on the Financial Statements to the
shareholders of the Company made by the Statutory Auditors in their audit.

25. COMPLIANCE WITH SECRETARIAL STANDARDS:

The Company has articulated proper systems to ensure compliance with Secretarial Standards issued by
The Institute of Company Secretaries of India and its provisions, and is in compliance with the same.

26. ANNUAL RETURN

In accordance with Sections 134(3)(a) & 92(3) of the Companies Act, 2013, read with Rule 12(1) of the
Companies (Management and Administration) Rules, 2014, the annual return in Form No.MGT-7 for the financial
year 2024-25 will be available on the website of the Company (www.balajivalvecomponents.com). The due
date for filing Annual Returns for the financial year 2024- 25 is within a period of sixty days from the date of
the annual general meeting. Accordingly, the Company shall file the same with the Ministry of Corporate Affairs
within the prescribed time, and a copy of the same shall be made available on the website of the Company (www.
balajivalvecomponents.com) as is required in terms of Section 92(3) of the Companies Act, 2013.

27. CORPORATE GOVERNANCE:

As per Regulation 15 (Listing Obligations and Disclosure Requirements) Regulations, 2015 applicability of
Corporate Governance shall not be mandatory for companies listed on the SME Platform. Since our company
has registered on the SME platform of the BSE, the requirement of Corporate Governance does not apply to
us.

28. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

The Management Discussion and Analysis Report, as required under Regulation 34(2)(e) read with Schedule
V Part B of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 ("SEBI Listing Regulations, 2015”), is annexed herewith as Annexure III.

29. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE
COMPANIES ACT, 2013:

The details of loans/guarantees/ investments (if any) made by the Company under Section 186 of the Companies
Act, 2013, have been disclosed in the Financial Statement.

30. LOANS FROM DIRECTOR/ RELATIVE OF DIRECTOR

The balances of monies accepted by the Company from Directors/ relatives of Directors at the beginning of the
year and at the close of the year have been disclosed in the Financial Statement.

The Funds have been given out of the Directors’ own Funds and are not being given out of funds acquired by
borrowing from others

31. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All contracts/arrangements/transactions entered into by the Company during the financial year with related
parties were in the ordinary course of business, and as per the information furnished by the management, all

transactions are on an arm’s length basis. Details of contracts or arrangements, or transactions made with related
parties, are provided in AOC-2. Please see Annexure IV

32. CORPORATE SOCIAL RESPONSIBILITY

Pursuant to section 135 of the Companies Act. 2013 read with Rule 5 of the Corporate Social Responsibility Rules,
2014 and any other applicable provisions thereof (Including any statutory modification(s) or re-enactment
thereof for the time being in force) as amended from time to time, and as per the company CSR policy approved
by the Board of Director and as recommended by the Corporate Social Responsibility Committee consent of
the Board of Directors be and is hereby accorded to approve the Contribution for the Financial Year 2024-25 of
Rs.14,75,000 (Rupees Fourteen Lakh Seventy-Five Thousand) as the CSR Expenditure.

CSR Expenditure for the financial year 2024-25 was spent by the company on the following entity, which is
engaged in the CSR Activity, i.e., providing education facilities with the purpose of achieving their objective to
impart quality education to the students.

Details of the entity.

Sr. No.	Name	PAN No	CSR Reg, No.	Amount Rs.
1	MAHARSHTRA AARYA VAISHA MAHASABHA NANDED	AAIAM3816B	CSR00044458	8,00,000
2	MAHARSHI VEDVYAS PRATISHTHAN	AAATM1606J	CSR00002814	3,00,000
3	NAISARGIK SHIKSHAN SAANSHODHAN VA PRASHIK- SHAN SANSTHA	AABTN3937G	CSR00014620.	1,00,000
4	BVP SOUTH PUNE (PARTVATI SECTION) CHARTABLE TRUST	AADTB2710P	CSR00035292	2,75,000
		Total		14,75,000

33. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its
operations. At the same time, it adheres to local statutory requirements for the orderly and efficient
conduct of business, safeguarding of assets, the detection and prevention of fraud and errors, adequacy and
completeness of accounting records, and timely preparation of reliable financial information. The efficacy
of the internal checks and control systems is validated by self-audits and internal as well as statutory
auditors.

34. PARTICULARS OF EMPLOYEES:

The information required under Section 197 of the Companies Act, 2013 read with rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are as follows:

1. The ratio of the remuneration of each director to the median remuneration of the employees of the Company
and the percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer
and Company Secretary in the financial year:

Name	Ratio to median remuneration	% increase in remuneration in the financial year
Executive Director
MR. LAXMIKANT SADASHIV KOLE	7.5157	NA
MR. SHRINIVAS LAXMIKANT KOLE	5.0104	NA
Company Secretary
CS MONIKA PAMNANI	1.00	NA

2. The percentage increase in the median remuneration of employees in the financial year: 12.39

3. The number of permanent employees on the rolls of the Company: -177

4. Average percentile increases already made in the salaries of employees other than the managerial personnel in
the last financial year and their comparison with the percentile increase in the managerial remuneration and
justification thereof, and point out if there are any exceptional circumstances for an increase in the managerial
remuneration.

5. Affirmation that the remuneration is as per the remuneration policy of the Company: The Company affirms
that the remuneration is as per the remuneration policy of the Company. The information pursuant to Rules
5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is not
applicable to the company as no employee is in receipt of remuneration exceeding Rs. 8,50,000/- per month or
Rs. 1,02,00,000/- per annum.

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

1.1 Conservation of Energy:

The steps taken or impact on the conservation of energy: -

I. The company is putting continuous efforts to reduce the consumption of energy and achieve
maximum possible saving of energy.

II. The steps taken by the company for utilizing alternate sources of energy: - The Company has used
alternate sources of energy, whenever and to the extent possible.

III. The capital investment on energy conservation equipment: NIL

1.2 Technology Absorption:

a. The effort made towards technology absorption: -No specific activities have been done by the
Company.

b. The benefits derived, like product improvement, cost reduction, product development or import
substitution: -No specific activity has been done by the Company.

c. In case of imported technology (imported during the last three years reckoned from the beginning
of the financial year: N.A.

d. The expenditure incurred on Research & Development: NIL

1.3 Foreign Exchange Earnings and Outgo:

Further, the details of foreign exchange earnings or outgoings during the year under review as required in
accordance with the provisions of section 134 (m) of the Companies Act, 2013, are as follows:

Foreign Exchange Earning:- Rs. 23,16,40,980.11

Foreign Exchange Outgo:- Rs. 38,00,429

36. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

During the year under review, there were no significant and/or material orders passed by any Court or
Regulator or Tribunal, which may impact the going concern status or the Company''s operations in future.

37. INDUSTRIAL RELATIONS:

The company has maintained good industrial relations on all fronts. Your directors wish to place on record
their appreciation for the honest and efficient services rendered by the employees of the company.

38. BUSINESS RESPONSIBILITY REPORT

Pursuant to Regulation 34(2)(f) of the Listing Regulations, the Business Responsibility Report is to be given
only by the top 1000 listed companies based on market capitalization; therefore, the same does not apply to the
Company as of March 31, 2024.

39. MAINTENANCE OF COST RECORD

The Cost audit, as specified by the Central Government under section 148 of the Companies Act, 2013, read
with the Companies (Cost Records and Audit) Amendment Rules, 2014, does not apply to the company.
However, the maintenance of cost records is applicable as the turnover of the relevant HSN code is more
than the prescribed limit. And your company is maintaining the cost record as per the applicable rules.
The company had obtained the Certificate from the cost auditor with respect to maintaining the cost audit
records.

40. DEMATERIALISATION OF SHARES:

The Demat activation number allotted to the Company is ISIN INE0RNZ01014. The shares of your Company
are being traded in electronic form, and the Company has established connectivity with both the depositories,
i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).

41. INSOLVENCY AND BANKRUPTCY CODE

There is no application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of
2016) during the year. The details of the difference between the amount of the valuation done at the time of one¬
time settlement and the valuation done while taking a loan from the Banks or Financial Institutions, along with the
reasons thereof, are not applicable to the Company.

42. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has laid down the set of standards, processes and structure which enable to implementation of
internal financial control across the Organization and ensure that the same are adequate and operating effectively.
To maintain the objectivity and independence of Internal Audit, the Internal Auditor reports to the Chairman of
the Audit Committee of the Board.

The Internal Auditor monitors and evaluates the efficacy and adequacy of an internal control system in the
Company, its compliance with the operating systems, accounting procedures and policies of the Company. Based
on the report of the Internal Auditor, the process owners undertake the corrective action in their respective areas
and thereby strengthen the Control. Significant audit observations and corrective actions thereon are presented
to the Audit Committee of the Board.

43. WEB LINK OF ANNUAL RETURN:

The Annual Return of the Company as on 31^st March 2025 will be available on the website of the
Company at www.balajivalvecomponents.com

44. ACKNOWLEDGEMENTS:

The Board of Directors greatly appreciates the commitment and dedication of employees at all levels who
have contributed to the growth and success of the Company. We also thank all our clients, vendors, investors,
bankers and other business associates for their continued support and encouragement during the year.

On behalf of the Board of Directors
For Shri Balaji Valve Components Limited

(Formerly Known as Shri Balaji Valve Components Private Limited)

Sd/- ^Sd/-

LAXMIKANT SADASHIV KOLE ^{SHRINIVAS LAXMIKANT KOLE}

(Managing Director) ^{(Whole Time Director)}

(DIN: 05110323) ^{(DIN: 10119216)}

Date: 26^th August, 2025
Place: Pune

---

Mar 31, 2024

Our directors are pleased to present the Thirteenth Annual Report of the Company covering the operating and financial performance together with the Audited Financial Statements and the Auditors'' Report thereon for the Financial Year ended on March 31, 2024.

1. FINANCIAL RESULTS:

During the year under review, the performance of the company is as under:

(^ in Lakhs)
Particulars	Standalone Financial Statement Year ended
	March 31, 2024	March 31, 2023
Income:
Revenue from Operations	8255.98	6232.42
Other Income	51.69	66.68
Total Income	8307.67	6299.1
Total Expenses	7184.76	5431.11
Profit Before Interest, Depreciation & Taxation	1479.12	1194
Less: Interest and Finance Charges (net)	147.06	136.01
Less: Depreciation	209.15	190
Profit Before Tax	1128.01	867.99
Add / (Less) Prior Period Adjustment- Income Tax	-	-
Add / (Less): current tax	339.1	222.47
Add/ (Less): MAT Credit Entitlement	-	-
Add / (Less) : Deferred tax	-49.9	-2.94
Add /(Less):- Excess/Short Provision Written back/off	6.25	-
Profit After Tax	832.56	648.46
Less: Proposed Dividend / Interim Dividend including tax on dividend	-	-
Profit for the year	832.56	648.46

2. STATE OF COMPANY AFFAIRS AND FUTURE OUTLOOK

During the year under review, the company has made Revenue from Operations of Rs. 8255.98 Lakhs and Net Profit after Tax of Rs. 832.56 Lakhs. The Board of Directors of your Company is optimistic about the future prospects of the Company. Your directors are of the view that the progressive growth of the company will continue in the subsequent financial year and are hopeful for bright future prospects. The financial result as reflected in the statement of profit and loss account of the company is self-explanatory.

3. TRANSFER TO RESERVES

The Board has decided to transfer Rs. 832.56 Lakhs to the Reservesfor the year under review.

4. DIVIDEND

The Board of Directors of your company, after considering holistically the relevant circumstances and keeping in view the company''s dividend distribution policy, has decided it would be prudent, not to recommend any Dividend for the year ended on 31st March, 2024 and the entire surplus be ploughed back to the reserve of the company.

5. SHARE CAPITAL

During the year under review, the Company has made changes in the share capital the details of the same are mentioned below:

I. Authorised Share Capital:

The Company''s Authorized share capital has been increased from Rs.

I, 00,000/- (Rupees One Lakh only) comprising of 10000 (Ten Thousand) equity shares of Rs. 10 (Ten rupees) to Rs. 8,50,00,000/- (Eight Crore Fifty Lakh only) comprising of 8500000 (Eighty-Five Lakhs) equity share of Rs. 10 (Ten rupees) each, vide Ordinary Resolution passed at their Shareholder Meeting dated 30th day of May, 2023.

II. Paid Up Share Capital:

The Company''s paid-up share capital has been increased by the way of a Bonus Issue of Equity Shares from Rs. 1,00,000 (Rupees One Lakh only) comprising of 10000 Equity Shares of Rs.10/- each to 6,00,00,000 (Rupees Six Crore only) comprising of 6000000 equity shares of Rs.10/- each vides Ordinary Resolution passed at their Extra Ordinary General Meeting dated 30th May, 2023.

6. DETAILS OF UTILISATION OF FUNDS & STATEMENT OF DEVIATION(S) OR VARIATION(S)

Pursuant to Regulation 32 (1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations/LODR'') there was no deviation/variation in the utilization of proceeds as mentioned in the Prospectus.

7. STATE OF COMPANY AFFAIRS

During the year under review, the company made a Total Income of Rs. 8307.67/-Lakhs as against Rs. 6299.10/- Lakhs in the previous year. The company has made a Profit before depreciation, Finance Costs, Exceptional items and Tax Expenses of Rs. 1479.12/- Lakhs against a profit of Rs.

1194/-Lakhs in the previous year in the financial statement. Your Company made a net profit of Rs. 832.56/- Lakhs as against Rs. 648.46/- in the previous year in the financial statement.

8. CHANGES IN NATURE OF BUSINESS

There is no change in the nature of the business of the Company.

9. MATERIAL CHANGES AND COMMITMENTS AFFECTINGTHE FINANCIAL POSITION OF THE COMPANY BETWEEN THE END OF FINANCIAL YEAR AND DATE OF REPORT:

There are no material changes and commitments affecting the financial position of the company which have occurred between the ends of the financial year of the company to which the financial statements relate.

10. LISTING WITH STOCK EXCHANGE

The shares of the company are listed on BSE Limited (BSE) SME Platform w.e.f. 03/01/2024.

11. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

Pursuant to the Section 124 applicable provisions of the Companies Act, 2013, read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“IEPF Rules”), all the unpaid or unclaimed dividends are required to be transferred to the IEPF established by the Central Government, upon completion of seven (7) years.

Further, according to the Investor Education & Protection Fund ("IEPF") Rules, the shares in respect of which dividend has not been paid or claimed by the Shareholders for seven (7) consecutive years or more shall also be transferred to the Demat account created by the IEPF Authority.

Your Company does not have any unpaid or unclaimed dividend or shares relating thereto which is required to be transferred to the IEPF as on the date of this Report.

12. DEPOSITS

During the year, the Company has not accepted or renewed any deposits from the public in termsof the directives issued by the ReserveBank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act, 2013 and the rules made thereunder hence information regarding outstanding deposits is not required.

13. SUBSIDIARY, JOINT VENTUREAND ASSOCIATE COMPANY

There are no subsidiaries, associates or joint venture companies within the meaning of Section 2(6) of the Companies Act, 2013 (“Act”).

14. DETAILS OF CHANGE IN COMPOSITION OF DIRECTORS OR KEY MANAGERIAL PERSONNEL

Constitution of Board:

The Board of the Company comprises Executive, Non-Executive and Independent Directors.

In terms of Section 149 of the Companies Act, 2013 and rules made there under and Listing Regulations, the Company has two Non-Promoter NonExecutive Independent Directors. In the opinion of the Board of Directors, both Independent Directors of the Company meet all the criteria mandated by Section 149 of the Companies Act, 2013 and rules made there under and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and they are Independent of Management.

A separate meeting of Independent Directors was held on May 07, 2024 to review the performance of Non-Independent Directors and the Board as a whole and the performance of the Chairperson of the Company including the assessment of quality, quantity and timeliness of flow of information between Company management and Board that is necessary for the board of directors to effectively and reasonably perform their duties.

The terms and conditions of appointment of Independent Directors and the Code for Independent Director are incorporated on the website of the Company.

The Company has received a declaration from the Independent Directors of the Company under Section 149(7) of the Companies Act, 2013 and 16(1)(b) of Listing Regulations confirming that they meet the criteria of Independence as per relevant provisions of Companies Act, 2013 for the financial year 2023-24.

The Board of Directors of the Company has taken on record the said declarations and confirmation as submitted by the Independent Directors after undertaking due assessment of the veracity of the same. In the opinion of the Board, they fulfill the conditions for Independent Directors and are independent of the Management. All the Independent Directors have confirmed that they are in compliance with Rules 6(1) and 6(2) of the Companies (Appointment and Qualification of Directors) Rules, 2014, with respect to registration with the data bank of Independent Directors maintained by the Indian Institute of Corporate Affairs.

None of the Independent Directors have resigned during the year. Retirement by Rotation

In accordance with the provisions of the Articles of Association and Section 152 of the Companies Act, 2013, Mrs. Madhuri Laxmikant Kole (DIN: 05110326), a Director of the Company retires by rotation at the ensuing Annual General Meeting. She, being eligible, has offered herself for re-appointment as such and seeks re-appointment. The Board of Directors recommends her appointment on the Board. The Profile of the Director is Attached in (Annexure -I)

The relevant details, as required under Regulation 36 (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) and Secretarial Standards-II issued by ICSI, of the person seeking re-appointment as Directors are annexed to the Notice convening the 13th Annual General Meeting.

Cessation

During the year under review, there is no cessation from Directorship. Key Managerial Personnel

Sr. No	Name of Key Managerial Personnel	Designation
1	Laxmikant Sadashiv Kole	Chairman & Managing Director
2	Shrinivas Laxmikant Kole	Whole Time Director & CFO
3	Monika R. Pamnani	Company Secretary and Compliance Officer

15. DECLARATION BY INDEPENDENT DIRECTORS

The Company has received declaration pursuant to Section 149(7) of the Companies Act, 2013 from each of its Non-Executive and Independent Directors to the effect that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013, Regulation 16(1) (b) and Regulation 25 of the sEbI (Listing obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as “Listing Regulations”). These declarations have been placed before and noted by the Board.

16. DIRECTORS RESPONSIBILITY STATEMENT

The Directors'' Responsibility Statement referred to in clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, shall state

a) That in the preparation of Annual Accounts, the mandatory Accounting Standards have been followed along with proper explanation relating to material departures.

b) That proper accounting policies have been selected and applied consistently; and, the judgments and estimates that are made are reasonable and prudent so as to give a trueand fair view of the state of affairs of thecompany as on 31st March 2024 and of the Profit of the Company for that period.

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

d) That the Annual Accounts have been prepared on a going concern basis.

e) That the directors laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively.

f) That 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.

17. COMPOSITION OF THE BOARD AND VARIOUS COMMITTEES AND THEIR MEETINGS

The Board of Directors along with its committees provide leadership and guidance to the Management and directs and supervises the performance of the Company, thereby enhancing stakeholder value.

BOARD OF DIRECTORS

The Board has a fiduciary relationship in ensuring that the rights of all stakeholders are protected. The Board of Shri Balaji Valve Components Limited comprises of Executive (Whole-Time) and Non-Executive Directors. Independent Directors are eminent persons with proven records in diverse areas like business, accounting, finance, economics, administration, etc. The composition of the Board of Directors represents an optimal mix of professionalism, qualification, knowledge, skill sets, track record, integrity, expertise and diversity.

The Board of Directors, as on March 31, 2024, comprised of 5 Directors, out of which 2 were Executive Directors ("ED"), 1 was Non-Executive Directors and 2 were Non-Executive Directors ("NEDs") Independent Directors ("IDs").

COMPOSITION OF BOARD

S.
No.	Name	Category	Designation
1	Mrs. Madhuri Laxmikant Kole	Non-Executive Director	Director
2	Mr. Laxmikant Sadashiv Kole	Executive Director	Managing Director & Chairman
3	Mr. Shrinivas Laxmikant Kole	Executive Director	Whole Time Director & CFO(KMP)
4	Mr. Sanker Parameswaran	Independent Director	Independent Director
5	Mr. Vasudeo Ganpatdas Gujrathi	Independent Director	Independent Director

BOARD MEETINGS

The Board of Directors duly met 21 times at regular intervals during the mentioned financial year and in respect of which meetings proper notices were given and the proceedings were properly recorded and signed in the Minutes Book maintained for the purpose. The intervening gap between the two meetings was within the period prescribed under the Companies Act, 2013. The dates on which meetings were held are as follows:

S. N	Date of Meeting	Total Number of directors as on the	Total Number of directors Attended	% of attendance
o.		date of meeting	the meeting
1	05-04-2023	2	2	100
2	14-04-2023	2	2	100
3	15-05-2023	2	2	100
4	17-06-2023	3	3	100
5	20-06-2023	3	3	100
6	21-06-2023	3	3	100
7	24-07-2023	3	3	100
8	04-08-2023	3	3	100
9	14-08-2023	3	3	100
10	02-09-2023	3	3	100
11	06-10-2023	3	3	100
12	17-10-2023	5	5	100
13	01-11-2023	5	5	100
14	06-11-2023	5	5	100
15	17-11-2023	5	5	100
16	20-11-2023	5	5	100
17	13-12-2023	5	5	100
18	19-12-2023	5	5	100
19	30-12-2023	5	5	100
20	01-01-2024	5	5	100
21	31-03-2024	5	5	100

EXTRA ORDINARY GENERAL MEETINGS:
S. N	Date of Meeting	Total Number of Members as on the	Total Number of Members Attended	% of attendance
o.		date of meeting	the meeting
1	30-05-2023	2	2	100
2	26-06-2023	3	3	100
3	03-09-2023	7	7	100
4	10-10-2023	7	7	100

ANNUAL GENERAL MEETINGS:
S.	Date of		Total Number of		Total Number of
No.	Meeting		Members as on the date of meeting		Members Attended the meeting		% of attendance
1	31-07-2023		7			7		100
COMMITTEE MEETINGS:
S.	Name of		Date of	Total Number of members		Total Number of members		% of
No.	Meeting		Meeting	as on the date of meeting		Attended the meeting		attendance
1	CSR COMMITTEE		30-03-2024		3	3		100

COMMITTEES OF THE BOARD:

The Board of Directors has constituted the following Committees and their details are hereunder:

a) NOMINATION AND REMUNERATION COMMITTEE:

As per provision of section 178, Schedule V and other applicable provisions of the Companies Act, 2013 read with rule 6 of the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to constitute a Nomination and Remuneration Committee. Hence, the Board constituted Nomination and Remuneration Committee which consists of Two Independent Directors and One Non-Executive Director as on 31st March, 2024. The detailed composition of the members of the Nomination and Remuneration Committe eat present is given below:

NOMINATION AND REMUNERATION COMMITTEE
Name	Designation	Designation
Vasudeo Ganpatdas Gujrathi	Independent Director	Chairman
Madhuri Laxmikant Kole	Non-Executive Director	Member
Sanker Parameswaran	Independent Director	Member

In terms of requirements prescribed under Section 178(3) of the Companies Act, 2013, the Nomination and Remuneration Policy inter-alia provides the terms for appointment and payment of remuneration to Directors and Key Managerial Personnel.

The Nomination and Remuneration Policy, as adopted by the Board of Directors, is placed on the website of the Company at www.balaiivalvecomponents.com

b) AUDIT COMMITTEE:

As per provision of section 177 and other applicable provisions of the Companies Act, 2013 read with rule 6 of the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to constitute an Audit Committee. Hence, the Board constituted an Audit Committee whichconsists of Two Independent Directorsand One Executive Director as on 31st March, 2024. The detailed composition of the members of the Audit Committee at present is given below:

AUDIT COMMITTEE MEMBERS
Name	Designation	Designation
Sanker Parameswaran	Independent Director	Chairman
Vasudeo Ganpatdas Gujrathi	Independent Director	Member
Laxmikant Sadashiv Kole	Chairman and Managing Director	Member

c) STAKEHOLDER RELATIONSHIP COMMITTEE:

As per provision of section 178 sub-section (5) and other applicable provisions of the Companies Act, 2013 read with rule 6 of the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to constitute a Stakeholder Relationship Committee. Hence, the Board constituted a Stakeholder Relationship Committee which consists of One Independent Directors and One Executive and One Non-Executive Director as on 31st March, 2024. The detailed composition of the members of the Stakeholder Relationship Committee at present is given below:

STAKEHOLDERS RELATIONSHIP COMMITTEE
Name	Designation	Designation
Madhuri Laxmikant Kole	Non- Executive Director	Chairman
Shrinivas Laxmikant Kole	Whole Time Director	Member
Sanker Parameswaran	Independent Director	Member

d) CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:

As per provision of section 135 sub-section (1) and other applicable provisions of the Companies Act, 2013 read with rule made their under of the Companies (Meetings of Board and its Power) Rules, 2014, the Board was required to constitute Corporate Social Responsibility Committee. Hence, the Board constituted a Corporate Social Responsibility Committee which consists of One Independent Directors and Two Executive Directors as on 30th March, 2024. The detailed composition of the members of the Stakeholder Relationship Committee at present is given below:

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
Name	Designation	Designation
Laxmikant Sadashiv Kole	Managing Director & Chairman	Chairman
Shrinivas Laxmikant Kole	Whole Time Director & CFO	Member
Sanker Parameswaran	Independent Director	Member

18. DETAIL OF FRAUD REPORTED BY AUDITORS:

During the year under review, there was no fraud reportedby the auditors to the Board under section 143(12) of the Companies Act, 2013.

19. POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION

The Company has formed Nomination and Remuneration Committee which has framed Nomination and Remuneration Policy. The Committee reviews and recommends to the Board of Directors about remuneration for Directors and Key Managerial Personnel and other employee up to one level below Key Managerial Personnel. The Company does not pay any remuneration to the Non-Executive Directors of the Company other than a sitting fee for attending the Meetings of the Board of Directors and Committees of the Board. Remuneration to Executive Directors is governed under the relevant provisions of the Act and approvals.

The Company has devised the Nomination and Remuneration Policy for the appointment, reappointment and remuneration of Directors and Key managers. All the appointment, reappointment and remuneration of Directors and Key Managerial Personnel are as per the Nomination and Remuneration Policy of the Company. The Nomination and Remuneration Policy is also available on the website of the Company

https://www.balaiivalvecomponents.com/investor-details?type=5 in the head of Policies & Code.

The Board of Directors of the Company has laid down a code of conduct for all the Board Members and Senior Management of the Company. The main object of the Code is to set a benchmark for the Company''s commitment to values and ethical business conduct and practices. Its purpose is to conduct the business of the Company in accordance with its value systems, fair and ethical practices, applicable laws, rules and regulations. Further, the Code provides for the highest standard of professional integrity while discharging the duties and to promote and demonstrate professionalism in the Company.

All the Board Members and Senior Management of the Company have affirmed compliance with the code of conduct for the financial year ended on March 31, 2024 as required by Regulation 26(3) of the Listing Regulations. A declaration signed by the Chairman & Managing Director to this effect is attached as a part of this Annual Report in Annexure IV. The code of conduct is also available on the website of the Company https://www.balajivalvecomponents.com/investor-details?type=5

20. POLICY FOR PREVENTION OF INSIDER TRADING

The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 came into effect on May 15, 2015 to put in place a framework for the prohibition of insider trading in securities and to strengthen the legal framework thereof. Pursuant to Regulation 8 of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, the Company has formulated and adopted the Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (“Code of Fair Disclosure https://www.balaiivalvecomponents.com/investor-details?tvpe=5

Further, pursuant to Regulation 9 of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, the Company has formulated and adopted the Code of Conduct for Prevention of Insider Trading. The Code lays down guidelines and procedures to be followed and disclosures to be made while dealing with the shares of the Company and cautioning them on the consequences of non-compliance.

The Company Secretary has been appointed as a Compliance Officer and is responsible for monitoring adherence to the Code. The code of conduct to regulate, monitor and report trading by insiders is also available on the website of the Company https://www.balaiivalvecomponents.com/investor-details?type=5

21. VIGIL MECHANISM/WHISTLEBLOWER POLICY:

The Company is committed to principles of professional integrity and ethical behaviour in the conduct of its affairs. The Whistle-blower Policy provides for adequate safeguards against victimization of director(s) / employee(s) who avail of the mechanism and also provides for direct access to the Chairperson of the Audit Committee.

It is affirmed that no person has been denied access to the Audit Committee. The Compliance Officer and Audit Committee are mandated to receive the complaints under this policy. The Board on a yearly basis presents an update on the whistleblower policy. Whistle Blower policy is available on the website of the Company at https://www.balaiivalvecomponents.com/i nvestor-details? type=5.

The Policy ensures complete protection to the whistle-blower and follows a zero-tolerance approach to retaliation or unfair treatment against the whistle-blower and all others who report any concern under this Policy. During the year under review, the Company did not receive any complaint of any fraud, misfeasance etc. The Company''s Whistle Blower Policy (Vigil Mechanism) has also been amended to make employees aware of the existence of policies and procedures for inquiry in case of leakage of Unpublished Price Sensitive Information to enable them to report on leakages, if any, of such information.

22. BOARD EVALUATION

The Board evaluated the effectiveness of its functioning, that of the Committees and of individual Directors, pursuant to the provisions of the Act and SEBI Listing Regulations.

The Board sought the feedback of Directors on various parameters including:

• Degree of fulfilment of key responsibilities towards stakeholders (by way of monitoring corporate governance practices, participation in long-term strategic planning, etc.);

• Structure, composition, and role clarity of the Board and Committees;

• Extent of co-ordination and cohesiveness between the Board and its Committees;

• Effectiveness of the deliberations and process management;

• Board/Committee culture and dynamics; and

• Quality of relationship between Board Members and the Management The evaluation frameworks were the following key areas:

1. For Non-Executive & Independent Directors:

• Knowledge

• Professional Conduct

• Comply Secretarial Standards issued by ICSI Duties,

• Role and functions

2. For Executive Directors:

• Performance as leader

• Evaluating Business Opportunities and analysis of Risk Reward Scenarios

• Key set investment goal

• Professional conduct and integrity

• Sharing of information with the Board.

• Adherence to applicable government law

23. RISK MANAGEMENT POLICY

The Company is aware of the risks associated with the business. It regularly analyses and takes corrective actions for managing/mitigating the same.

The Company has framed a formal Risk Management Policy for risk assessment and risk minimization which is periodically reviewed to ensure smooth operation and effective management control. The Audit Committee also reviews the adequacy of the risk management framework of the Company, the key risks associated with the business and measure and steps in place to minimize the same.

24. DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013

Our Company provides equal opportunities and is committed to creating a healthy working environment that enables our Minds to work with equality and without fear of discrimination, prejudice, gender bias or any form of harassment at the workplace. Your Company has in place a Prevention of Sexual Harassment (POSH) policy in accordance with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 which is also available on our website https://www.balaiivalvecomponents.com/investor-details?tvpe=5

Further, your company has set up an Internal Complaint Committee (“ICC“) at the corporate office. ICC has equal representation of men and women and is chaired by senior woman employees of the HR Department of the Company.

The composition of the internal complaint committee is as follows:

Sr. No.	Name of the Member	Designation
1	Madhuri Laxmikant Kole	Director
2	Pritee Nayakwadi	HR Executive
3	Ganesh Ranpise	Manager-Finance & Account

25. AUDITORS:

i. STATUTORY AUDITORS:

The Company has appointed M/s Kishor Gujar & Associates, Chartered Accountants, Pune having Firm Registration No. FRN-116747W, as the Statutory Auditor of the company for Five consecutive years at the 8th Annual General Meeting held on 30th September 2019 until the conclusion of the 13th Annual General Meeting of the Company to be held in the year 2024.

As recommended by the Audit Committee Meeting held on 23rd August 2024 the Company''s board of directors has approved the Reappointment of M/s Kishor Gujar & Associates, Chartered Accountants, Pune having Firm Registration No. FRN-116747W, for the second term of the Five Financial year from the conclusion of the 13th Annual General Meeting till the conclusion of the 18th Annual General Meeting.

The Auditors'' Report for the financial year ended on March 31, 2024 has been provided in “Financial Statements” forming part of this Annual Report.

The report of the Statutory Auditor does not contain any qualification, reservation, adverse remark or disclaimer. The observations made in the Auditor''s Report are self-explanatory and therefore do not call for any further comments.

ii. INTERNAL AUDITORS:

M/s JSG And Company Accountants (FRN: 135589W) has been appointed as an Internal Auditor of the company on 07th May, 2024 for the Financial Year 2024-25 and continues until resolved further. Internal Auditor is appointed by the Board of Directors of the Company on a yearly basis and based on the recommendation of the Audit Committee. The Internal Auditor reports their findings on the Internal Audit of the Company, to the Audit Committee on a half-yearly basis. The scope of the internal audit is approved by the Audit Committee.

iii. SECRETARIAL AUDITOR:

Pursuant to Section 204 of the Companies Act, 2013 and rules made thereunder, the Company has appointed M/s. Chirag Chawra & Co., Practicing Company Secretaries as Secretarial Auditor of the Company for the financial year ended on March 31, 2024 and continues until resolved further. The Secretarial Audit Report in Form MR-3 for the financial year ended on March 31, 2024 is attached to the Director''s Report and forming part of this Annual Report. (Annexure-II)

The report of the Secretarial auditor does not contain any qualification, reservation, adverse remark or disclaimer.

26. DIRECTORS’ RESPONSE ON AUDITORS’ QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMER MADE

There is no qualification or Disclaimer of Opinion in the Auditor''s Report on the Financial Statements to the shareholders of the Company made by the Statutory Auditors in their Auditors.

27. COMPLIANCE WITH SECRETARIAL STANDARDS:

The Company has articulated proper systems to ensure compliance with Secretarial Standards Secretarial Standards issued by The Institute of Company Secretaries of India and its provisions and is in compliance with the same.

28. ANNUAL RETURN

In accordance with Sections 134(3)(a) & 92(3) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, The annual return in Form No.MGT-7 for the financial year 2023-24 will be available on the website of the Company (www.balaiivalvecomponents.com). The due date for filing Annual Returns for the financial year 2023- 24 is within a period of sixty days from the date of the annual general meeting. Accordingly, the Company shall file the same with the Ministry of Corporate Affairs within the prescribed time and a copy of the same shall be made available on the website of the Company (www.balaiivalvecomponents.com) as is required in terms of Section 92(3) of the Companies Act, 2013.

29. CORPORATE GOVERNANCE:

As per the Regulation 15 (Listing Obligations and Disclosure Requirements) Regulations, 2015 applicability of Corporate Governance shall not be mandatory for companies listed on the sMe Platform. Since our company has registered on the SME platform of the BSE the requirement of Corporate Governance does not apply to us.

30. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

The Management Discussion and Analysis Report as required under Regulation 34(2)(e) read with Schedule V Part B of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations, 2015") is annexed herewith as (Annexure III)

31. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013:

The details of loans/guarantees/ investments (if any) made by the Company under Section 186 of the Companies Act, 2013 have been disclosed in the Financial Statement.

32. LOANS FROM DIRECTOR/ RELATIVE OF DIRECTOR

The balances of monies accepted by the Company from Directors/ relatives of Directors at the beginning of the year and at the close of the year have been disclosed in the Financial Statement.

The Funds have been given out of Directors'' own Funds and are not being given out of funds acquired by borrowing from others

33. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

All contracts/arrangements/transactions entered by the Company during the financial year with related parties were in the ordinary course of business and as per the information furnished by the management all transaction is an arm''s length basis, Details of contracts or arrangements or transactions made with related parties are provided in AOC-2 please see Annexure V

34. CORPORATE SOCIAL RESPONSIBILITY

Pursuant to section 135 of the Companies Act. 2013 read with Rule 5 of the Corporate Social Responsibility Rules, 2014 and any other applicable provisions thereof (Including any statutory modification(s) or re-enactment thereof for the time being in force) as amended from time to time, and as per the company CSR policy approved by the Board of Director and as recommended by the Corporate Social Responsibility Committee consent of the Board of Directors be and is hereby accorded to approve the Contribution for the Financial Year 2023-24 of Rs. 7,23,400 (Rupees Seven Lakh Twenty-Three Thousand Four Hundred) as the CSR Expenditure.

CSR Expenditure for the financial year 2023-24 was spent by the company to M/s Maharshi Vedvyas Pratishthan (PUNE), a Registered society, registered under Section 12A and approved under Section 80G of the Income Tax Act, 1961. Having Registration Number: - F-626, and CSR Registration Number CSR00002814, which is engaged in the CSR Activity i.e., providing education facilities with the purpose of achieving their obiective to impart quality education to the students of Pune.

35. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for the orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

36. PARTICULARS OF EMPLOYEES:

The information required under Section 197 of the Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are as follows:

1) The ratio of the remuneration of each director to the median remuneration of the employees of the Company and the percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer and Company Secretary in the financial year:

		% increase in
Name	Ratio to median remuneration	remuneration in the financial year
Executive Director
MR. LAXMIKANT SADASHIV KOLE	4.34	NA
MR. SHRINIVAS LAXMIKANT	2.9	NA
KOLE
Company Secretary
CS ANIRUDDHA DESHMUKH	0.3	NA

2) The percentage increase in the median remuneration of employees in the financial year: NIL

3) The number of permanent employees on the rolls of the Company: -176

4) Average percentile increases already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration.

5) Affirmation that the remuneration is as per the remuneration policy of the Company: The Company affirms that the remuneration is as per the remuneration policy of the Company. The information pursuant to Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is not applicable to the company as no employee is in receipt of remuneration exceeding Rs. 8,50,000/- per month or Rs. 1,02,00,000/- per annum.

37. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGAND OUTGO:

1.1 Conservation of Energy:

I. The company is putting continuous efforts to reduce the consumption of energy and maximum possible saving of energy.

II. The steps taken by the company for utilizing alternate sources of energy: - The Company has used alternate sources of energy, whenever and to the extent possible.

III. The capital investment on energy conservation equipment: - NIL

1.2 Technology Absorption:

a. The effort made towards technology absorption: -No specific activities have been done by the Company.

b. The benefits derived like product improvement, cost reduction, product development or import substitution: -No specific activity has been done by the Company.

c. In case of imported technology (imported during the last three years reckoned from the beginning of the financial year: - N.A.

d. The expenditure incurred on Research & Development: - NIL

1.3 Foreign Exchange Earnings and Outgo:

Further, the details of foreign exchange earnings or outgoings during the year under review as required in accordance with the provisions of section 134 (m) of the Companies Act, 2013 are as follows:

Foreign Exchange Earning (Rs. in Lakh): - Rs. 14.54 Lakh

Foreign Exchange Outgo (Rs. in Lakh): -

38. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

During the year under review, there were no significant and/or material orders passed by any Court or Regulator or Tribunal, which may impact the going concern status or the Company''s operations in future.

39. INDUSTRIAL RELATIONS:

The company has maintained good industrial relations on all fronts. Your directors wish to place on record their appreciation for the honest and efficient services rendered by the employees of the company.

40. BUSINESS RESPONSIBILITY REPORT

Pursuant to Regulation 34(2)(f) of the Listing Regulations the Business Responsibility Report is to be given only by top 1000 listed companies based on market capitalization, therefore the same is not applicable to the Company as on March 31, 2024.

41. MAINENTANCE OF COST RECORD

The Cost audit as specified by the Central Government under section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules, 2014 is not applicableto the company. However, the maintenance of cost records is applicable as the turnover of the relevant HSN code is more than the prescribed limit. And your company is maintaining the cost record as per the applicable rules. The company had obtained the Certificate from the cost auditor with respect to Maintaining the cost audit records.

42. DEMATERIALISATION OF SHARES:

The Demat activation number allotted to the Company is ISIN INE0RNZ01014. The shares of your Company are being traded in electronic form and the Company has established connectivity with both the depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services(India) Limited (CDsL).

43. INSOLVENCY AND BANKRUPTCY CODE

There is no application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year. The details of the difference between the amount of the valuation done at the time of one-time settlement and the valuation done while taking a loan from the Banks or Financial Institutions along with the reasons thereof are not applicable to the Company.

44. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

Our Company has laid down the set of standards, processes and structure which enables to implementation of internal financial control across the Organization and ensures that the same are adequate and operating effectively.

To maintain the objectivity and independence of Internal Audit, the Internal Auditor reports to the Chairman of the Audit Committee of the Board.

The Internal Auditor monitors and evaluates the efficacy and adequacy of an internal control system in the Company, its compliance with the operating systems, accounting procedures and policies of the Company. Based on the report of the Internal Auditor, the process owners undertake the corrective action in their respective areas and thereby strengthen the Control. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board.

45. WEB LINK OF ANNUAL RETURN:

The Annual Return of the Companyas on 31st March, 2024 will be available on the websiteof the Company at www.balaiivalvecomponents.com/investor

46. ACKNOWLEDGEMENTS:

The Board of Directors greatly appreciates the commitment and dedication of employees at all levels who have contributed to the growth and success of the Company. We also thank all our clients, vendors, investors, bankers and other business associates for their continued support and encouragement during the year.

We also thank the Government of India, Government of Maharashtra, Ministry of Commerce and Industry, Ministry of Finance, Customs and Excise Departments, Income Tax Department and all other Government Agencies for their support during the year and look forward to their continued support in future.

47. CAUTIONARY STATEMENT:

This report contains forward-looking statements based on the perceptions of the Company and the data and information available to the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect the Company''s current views of future events and are subject to risks and uncertainties. Many factors like changes in general economic conditions, amongst others, could cause actual results to be materially different.