Presentation of the Annual Report together with the Audited Financial Statements of the Company for the year ended 31^st March 2024 is hereby submitted as under:

FINANCIAL RESULTS

The summarized financial performance highlight is presented in the table below:

(Rs. in Lakhs)

PERFORMANCE REVIEW

Your company has incurred a net Profit of Rs 25.42 lakhs during the year under review as against Rs. 18.77 lakhs in the previous financial year.

DIVIDEND

Your Company is incurring losses, the Board of Directors does not recommend any dividend for the year 2023-24.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

In compliance with the provisions of section 125 of the Companies Act, 2013, as at 31st March, 2024 Company has not recommend the dividend so, This Clause is not applicable.

TRANSFER TO RESERVES

The Company has not transferred any amount to reserves during the year under review due to loss. CHANGE IN SHARE CAPITAL

There is no change in the share capital of the Company during the year under review.

ANNUAL RETURN

A copy of the annual return as provided under sub-section (3) of section 92 of the Companies Act, 2013 (‘the Act’), in the prescribed form, which will be filed with Registrar of Companies/MCA, for the year ended as on 31^st March, 2024 is hosted on the website of company and can be accessed at www.krettosysconltd.com

NUMBER OF BOARD MEETINGS:

During the Financial Year 2023-24, the Company held Six (6) board meetings of the Board of Directors as per Section 173 of Companies Act, 2013 which is summarized below. The provisions of Companies Act, 2013 and SEBI (Listing obligations & Disclosure Requirements) Regulations, 2015 were adhered to while considering the time gap between two meetings.

OPERATIONS & MANAGEMENT DISCUSSION AND ANALYSIS

The current year’s operations are covered in the Management Discussion and Analysis Report. This Report, as stipulated under Schedule V to the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, is presented in a separate section forming part of this annual report.

CORPORATE GOVERNANCE

The Report on Corporate Governance, as stipulated in Schedule V to the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, forms part of this Report. Further, it is stated that:

(i) The composition of Audit Committee and other particulars are given in item No. 7 of the Corporate Governance Report.

(ii) The Company has established a vigil mechanism for directors and employees to report their genuine concern and grievances. No personnel had been denied access to the Audit Committee.

(iii) The Company has adopted Risk Assessment Procedure which provides an approach by the Management to identify potential events that may affect the Company, to manage the risk within its risk appetite and to provide reasonable assurance regarding the achievement of the objectives of the Company. The Management prioritizes the risk and finalizes the action plan for mitigation of the key risks. The Board is of the opinion that there are no elements of risk which may threaten the existence of the Company.

(iv) The numbers of shares held by non-executive directors as on 31.03.2024 have been disclosed in item No. 12 of the Corporate Governance Report.

(v) The meeting of Independent Directors was held during the year 2023-24 on 24-05-2023.

(vi) The report on Corporate Governance as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented in a separate section forming part of this annual report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

The directors and KMP of the company as on March 31, 2024, are as under:

DIRECTORS RESPONSIBILITY STATEMENT

As required by Section 134(3)(c) of the Companies Act, 2013, the Board of Directors states that:

(a) In the preparation of the annual accounts for the financial year that ended March 31, 2024, the applicable accounting standards had been followed along with proper explanation relating to material departures;

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

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

(d) The Directors had prepared the annual accounts on a going concern basis;

(e) The Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

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

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

The Company has not given any loans or guarantees covered under the provisions of Section 186 of the Companies Act, 2013. The details of the investments made by the company are given in the notes to the Financial Statements.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

There were no material contracts or arrangements with related parties during the year under review as referred to in sub-section (1) of section 188 of the Companies Act, 2013 and hence disclosure in Form AOC-2 is not attached.

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

The details as required under Clause-3 of Rule 8 of the Companies (Accounts) Rules, 2014, are provided in Annexure - I to the Directors’ Report.

PARTICULARS OF EMPLOYEES

The information required under Section 197(12) of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and remuneration of managerial personnel) Rules, 2014, and forming part of the Directors’ Report for the year ended 31^st March 2023 is given in a separately Annexure -II to the Directors’ Report.

FIXED DEPOSITS

The Company has not either invited or accepted or renewed deposits from the members and public during the financial year ended 31st March 2024, under Chapter V of the Companies Act, 2013.

STATUTORY AUDITOR

The statutory auditor M/s S. Mandawat & co., Chartered Accountants (ICAI Firm Registration Number 118330W) was appointed Annual General Meeting held on 20^th September 19, from the financial year 2018-19 to 2023-24.

COST AUDITOR

Maintenance of cost records as specified by the Central Government under Section 148 of the Companies Act 2013 is not applicable to the Company during the year under review.

OTHER DISCLOSURES

The particulars as required under Section 134(3) of the Companies Act, 2013, read with Rule 8 of the Companies (Accounts) Rules, 2014, are given below:

(i) The Company has in place adequate internal financial controls with reference to financial statements and such controls are adequate and are operating effectively.

(ii) As per Section 92(3) read with 134(3)(a) of the Companies Act, 2013, the Annual Return

as on March 31, 2024, is available on the website of company i.e.

https: //www .krettosysconltd. com/

(iii) The Nomination and Remuneration Policy under Section 178(3) of the Companies Act, 2013, is given in Annexure - III to the Directors’ Report.

(iv) The Secretarial and Legal Compliance Audit Report in Form MR-3 prescribed under Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, read with Section 204(1) of the Companies Act, 2013, is given in Annexure - IV to the Directors’ Report.

(v) The Nomination & Remuneration Committee of the Board has laid down the policy on the Director’s appointment, remuneration, and criteria for determining qualifications, independence of directors, etc. Para-1 of the Corporate Governance Report discloses the criteria for payment of remuneration to Non-Executive Directors and details of remuneration paid to the Managing Director and that the Company does not have Stock Option Scheme.

(vi) The formal annual evaluation of the Board and individual directors have been carried out

during the year 2023-24.

(vii) The Company has not entered into a contract with related parties within the meaning of Section 188(1) of the Companies Act, 2013, read with Rule 15 of the Companies (Meetings of Board and its Powers) Rules, 2014.

(viii) The Company is not a subsidiary and Associate Company of any other company nor has a subsidiary company and Associate Company.

(ix) Pursuant to provisions of Section 134(3) (ca) of the Companies Act, 2013, it is hereby confirmed that during the year 2023-24, there have been no frauds reported by the Auditor.

(x) No significant or material orders were passed by the Regulators or Courts or Tribunals.

(xi) The Company has adopted a policy under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act.

(xii) The Directors confirm that the applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to ‘Meetings of the Board of Directors’ and ‘General Meetings’, respectively have been duly followed by your Company.

ACKNOWLEDGMENTS

The Board of Directors wishes to express appreciation for the support and cooperation of the employees, various departments of Central and State Governments, Bankers, Financial Institutions, Suppliers, Employees, and Associates.

For Kretto Syscon Limited By Order of the Board of Directors

Sd/-

Place: Ahmedabad Tushar Shashikant Shah

Date: July 27, 2024 Managing Director

DIN:01748630