Adline Chem Lab Ltd

To,

The Members,

Your Directors have pleasure in presenting their 37^th Annual Report on the business and operations of the Company and the Audited Accounts for the Financial Year ended 31st March, 2025.

1. Financial Summary/Highlights of Performance of The Company

2. Performance and State of Affairs of the Company:

During the year under review, the Company has incurred loss of Rs. 12.13 (Rs. In Lakhs) the Board of Directors of the Company is continuously making efforts for the growth of the Company.

3. Change In Nature Of Business:

There has been no change in the business of the Company during the financial year ended 31^st March, 2025.

4. Dividend:

The Company has not declared any dividend during the year.

5. Transfer To Reserve

Company has negative reserves of Rs. 788.50/- (Rs. In Lakhs) as compared to previous year i.e., negative Rs. 776.38/-(Rs. In Lakhs).

6. Share capital:

The Paid up share capital of the Company as on 31^st March, 2025 was Rs.5,85,00,000/- consisting of 58,50,000 Equity Shares of Rs. 10 each fully paid up as on 31^st March, 2025, the Company has not issued any shares with differential voting rights nor granted stock options nor do sweat equity and none of the Directors of the Company hold any convertible instruments.

7. Material changes and Commitments, if any, affecting the Financial Position of the Company which have occurred between the End of the Financial Year of the Company to which the financial statements relate and the Date of the Report:

There have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the Financial Year of the Company to which the financial statements relate and the date of the Report.

8. Performance and financial position of each of the subsidiaries, associates, and joint venture Companies:

As on 31^st March, 2025, Company doesn't have any Subsidiary, Associates and Joint Venture Companies at the end of the year.

9. Deposits:

The Company has neither accepted nor renewed any deposit within the meaning of the Companies (Acceptance of Deposits) Rules, 2014 during the year under review. However, loan from directors/ Relative of Directors taken during the year are as follows:

Company has not issued any Employee Stock Option during the year.

The Company is having website i.e. www.adlinechem.com and Annual Return of Company has been published on such website. Link of the same is given below: www.adlinechem.com

During the year, the Company has not issued Sweat Equity shares. Hence, details as per Rule 8(13) of the Companies (Share Capital and Debentures) Rule, 2014 are not reported yet.

Corporate Social Responsibility (CSR) is not applicable to the Company during the year.

The Company has received necessary declarations from all Independent Directors of the Company in accordance with the provisions of Section 149(7) of the Companies Act, 2013 confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013.

Your Directors are of the opinion that the Independent Directors of the Company are of high integrity and suitable expertise as well as experience (including proficiency).

The Board of Directors has carried out an annual evaluation of its own performance, Board committees, and individual directors pursuant to the provisions of the Act and SEBI Listing Regulations.

The performance of the Board was evaluated by the Board after seeking inputs from all the directors on the basis of criteria such as the board composition and structure, effectiveness of board processes, information and functioning, etc. The performance of the committees was evaluated by the Board after seeking inputs from the committee members on the basis of criteria such as the composition of committees, effectiveness of committee meetings, etc.

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. In a separate meeting of independent directors, performance of non-independent Directors, the Board as a whole and Chairman of the Company was evaluated, taking into account the views of executive directors and non-executive directors.

Performance evaluation of independent directors was done by the entire Board, excluding the independent director being evaluated.

The Company has a Nomination and Remuneration Committee. The Committee reviews and recommend to the Board of Directors about remuneration for Directors and Key Managerial Personnel and other employee up to one level below of Key Managerial Personnel. The Company does not pay any remuneration to the Non-Executive Directors of the Company other than sitting fee for attending the Meetings of the Board of Directors and Committees of the Board.

The Company has devised the Nomination and Remuneration Policy for the appointment, reappointment and remuneration of Directors, Key Managerial Personnel and Senior Management Personnel. All the appointment, re-appointment and remuneration of Directors, Key Managerial Personnel and Senior Management Personnel are as per the Nomination and Remuneration Policy of the company.

The details of conservation of energy, technology absorption, foreign exchange earnings and outgo are attached herewith as Annexure-A.

A calendar of Meetings is prepared and circulated in advance to the Directors. During this year, 6 (Six)meetings of the Board of Directors were held i.e., 23^rd May, 2024,15^th July, 2024, 24^th August, 2024, 13^th November, 2024, 11^th December, 2024, 04^th February, 2025.

The intervening gap between the Meetings was within the period prescribed under The Act and The Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015[LODR].

The Company has established a vigil mechanism and accordingly framed a Whistle Blower Policy. The policy enables the employees to report to the management instances of unethical behaviour, actual or suspected fraud or violation of Company's Code of Conduct.

Further the mechanism adopted by the Company encourages the Whistle Blower to report genuine concerns or grievances and provide for adequate safe guards against victimization of Whistle Blower who avails of such mechanism and also provides for direct access to the Chairman of the Audit Committee, in exceptional cases.

The functioning of vigil mechanism is reviewed by the Audit Committee from time to time. None of the Whistle blowers has been denied access to the Audit Committee of the Board. The Whistle Blower Policy of the Company is available on the website of the Company www.adlinechem.com.

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the Notes to the Financial Statements.

The information required pursuant to Section 197(12) of The Companies Act, 2013 read with Rule 5(1),5(2) and 5(3) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is enclosed as Annexure-B which forms part of this report.

Further, there were no employee getting salary in excess of the limit as specified under the provisions of Section 197 (12) of the Companies Act, 2013 read with rule 5(2) and 5(3) of the Companies (Appointmentand Remuneration of Managerial Personnel) Rules, 2014.

The Nomination & Remuneration Policy are available on the Company's website: www.adlinechem.com.

During the period under review, the Company has not entered into any contracts/arrangement/ transaction with related parties which is required to be reported in Form No. AOC-2 in terms of Section 188 of the Companies Act, 2013 and Rule 8A of the Companies(Accounts) Rules, 2014. Hence, disclosure as required in Form AOC-2 is not attached with this report. Disclosures under Para A of Schedule V of Listing Regulations enclosed herewith as Annexure-C.

Statutory Auditors:

At the 34^thAnnual General Meeting (AGM) held on 16^th September, 2022, the present Auditors of the Company M/s. Deepak Soni& Associates, Chartered Accountants, Ahmedabad, were appointed as Statutory Auditors of the Company for a period of 5 years i.e. for financial years 2022-23 to 2026-2027. They continue to hold office as Statutory Auditors till the conclusion of 39^thAGM to be held in the year 2027.

Further, M/s. Deepak Soni& Associates resigned as Statutory Auditor of the Company w.e.f 2^nd August, 2024 due to Unavoidable Circumstances.

Further, to fill the Casual Vacancy caused by the resignation of M/s. Deepak Soni& Associates hereby accorded to appoint, Jain Kedia and Sharma Chartered Accountants, Ahmedabad were appointed as Statutory Auditors of the Companyfor F.Y 2024-2025 and for a period of 5 years i.e. for financial years 2024-25 to 2028-2029.

Auditors' Report:

The Statutory Auditor's Report on the financial statement for the FY 2024-25 contains emphasis of matter which is self-explanatory. The remarks of the Auditors are self-explanatory and have been explained in Notes on Accounts.

Secretarial Auditors:

The Board of Directors in their meeting held on 6^th June, 2025 has approved the appointment of M/s. lshit Vyas & Co., Practicing Company Secretaries, as a Scrutinizer for the purpose of 37^th Annual General Meeting (AGM) and also approved the appointment of M/s. lshit Vyas &Co., Practicing Company Secretaries, Ahmedabad as the Secretarial Auditors of the Company for the period of five consecutive financial years that is from the conclusion of ensuing 37^th Annual General Meeting of the Company until the conclusion of 42^nd Annual General Meeting to carry out the secretarial audit from the financial year 2025-26 till 2029-30.

The Secretarial Audit Report for the financial year 2024-25, in Form MR-3 provided by M/s Jitendra Parmar & Associates, Practicing Company Secretary (Firm Registration No. S2023GJ903900, Membership No. F11336, COP No. 15863) does not contain any qualification, reservation or adverse remark except mentioned below and is annexed to this report as

"Annexure-D".

During the financial year 2024-2025, no fraud was reported by the Secretarial Auditors of the Company in their Audit Report.

A report on Management Discussion and Analysis, as required in terms of Regulation 34(2) of LODR forms part of this Report. It deals with the Business Operations and Financial Performance, Research & Development Expansion & Diversification, Risk Management, Marketing Strategy, Safety & Environment, Human Resource Development, etc. enclosed as per Annexure-E.

As per Regulation 15(2) of the SEBI Listing Regulations, compliance with the corporate governance provisions as specified in regulation 17 to 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 and para-C, D and E of Schedule V, shall not apply in respect of the listed entity having paid up equity share capital not exceeding rupees ten crore and net worth not exceeding rupees twenty five crore, as on the last day of the previous financial year. At present, the Company is not required to comply with Corporate Governance regulations as none of the above referred limits have been triggered. The details of the same is enclosed as Annexure-F.

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 Framework 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.

As stipulated in Section 134(3)(c) read with sub section 5 of the Companies Act, 2013, Directors subscribe to the "Directors' Responsibility Statement", and confirm that:

a. In preparation of annual accounts for the year ended 31^stMarch, 2025, the applicable accounting standards have been followed and that no material departures have been made from the same;

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 or loss of the Company for that year;

c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. The Directors had prepared the annual accounts for the year ended 31^stMarch, 2025 on going concern basis.

e. The Directors had laid down the 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.

The Company has constituted Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the company has complied with provisions of the same.

There were no incidences of sexual harassment reported during the year under review, in terms of the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The Directors are regularly informed during the meetings of the Board and the Committees, of the activities of the Company, its operations and issues faced by the Engineering Industry. Considering the long association of the Directors with the Company and their seniority and expertise in their respective areas of specialization and knowledge of the engineering industry, their training and familiarization were conducted in the below mentioned areas:

The Roles, Rights, Responsibilities and Duties of Independent Directors

Business Development Strategy and Plans

Changes brought in by the introduction of the Securities Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015

Changes in the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Audit Committee of the Board consists of Two Independent and One Non-Executive Non-Independent Director. The composition, role, terms of reference as well as power of the Audit Committee are in accordance with the provisions of Regulation 18 of LODR and Section 177 of The Act and Rules framed thereunder.

The details of all related party transactions are placed periodically before the Audit Committee. All the recommendations made by the Audit Committee were accepted by the Board. The Company has in place a Vigil Mechanism; details of which are available on the Company's website.

The Audit Committee comprises of the following Members as on 31^st March, 2025:-

There were 6 (Six) Meetings of the Audit Committee of the Board of Directors held during the Financial Year 2024-2025, (i.e., 23^thMay, 2024, 15^thJuly, 2024, 24^th August, 2024, 13^th November, 2024, 11^th December, 2024 and 04^th February, 2025).

The Statutory Auditors and Chief Financial Officer attend the Audit Committee Meetings as Invitees. The Company Secretary and Compliance Officer acts as Secretary to the Audit Committee. The Audit Committee has made observations and recommendations to the Board of Directors, which have been noted and accepted by the Board.

During the Financial Year 2024-2025, all recommendations made by the Audit Committee to the Board of Directors were accepted by the Board and there were no instances where the recommendations were not accepted.

In compliance with Section 178 of The Act, Your Company has in place a "Nomination and Remuneration Committee". The powers, role and terms of reference of the Nomination and Remuneration Committee cover the areas as contemplated under Regulation 19 of LODR and Section 178 of The Act, and Rules and Regulations, framed thereunder, besides other terms as may be referred by the Board of Directors.

The Nomination and Remuneration Committee comprises of the following Members as on March 31^st, 2025:-

There was 4 (Four) Meetings of the Nomination and Remuneration Committee of the Board of Directors held during the Financial Year 2024-25 i.e., on 15^th July, 2024, 24^thAugust, 2024, 13^th November, 2024, 11^th December, 2024.

Pursuant to the provisions of Section 178 of the Companies Act, 2013, your Company has constituted a Stakeholders' Relationship Committee of the Board of Directors, comprising of the following Members during the Financial Year 2024-2025:-

During the Financial Year 2024-25, 1 (One) Meeting of the Stakeholders' Relationship Committee was held, i.e., on 11^th December, 2024.

During the Financial Year 2024-25, 2 (two) Meeting of the Independent Director Committee was held, i.e., on 13^th November, 2024 and 11^th December, 2024.

Secretarial Standards for the Board of Directors and General Meetings (SS-1 & SS-2) are applicable to the Company. The Company has complied with the provisions of both Secretarial Standards.

The Company is not require to maintain cost records as specified by the Central Government under subsection (1) of section 148 of the Companies Act, 2013, and accordingly such accounts and records are not made and maintained.

Neither any application is made, nor any proceeding is pending under the Insolvency and Bankruptcy Code, 2016 (IBC) during the year under review and accordingly the Company has no information to offer in this regard.

The company has never made any one-time settlement against the loans obtained from Banks and Financial Institution and hence this clause is not applicable.

Your Directors wish to place on record sincere appreciation for the support and co-operation received from various Central and State Government Departments, organizations and agencies. Your Directors also gratefully acknowledge all stakeholders of your Company, viz., Shareholders, customers, dealers, vendors, banks and other business partners for excellent support received from them during the Financial Year under review. Your Directors also express their warm appreciation to all the employees of the Company for their unstinted commitment and continued contribution to the growth of your Company.