Asi Industries Ltd

Dear Members,

The Board of Directors are pleased to present the Company's 78^th Annual Report on business and operations, together with the audited financial statements of the Company for the financial year ended 31^st March, 2024.

A summary of the Company's financial results for the Financial

Year 2023-24 are as under:

Total revenue was 16692.34 Lakhs for FY 2023-24 as compared to . 14824.00 Lakhs for FY 2022-23 an increase in revenue of 12.60%. EBITDA stood at . 4210.06 Lakhs as compared to 3272.47 Lakhs during FY 2022-23 and Net Profit (Loss) after Tax stood at . 2511.06 Lakhs for FY 2023-24 as compared to .1727.51 Lakhs for FY 2022-23 an increase of 45.35%.

During the financial year under review, there is no change in nature of business of the Company.

We would like to inform that your Company is not having any subsidiary, joint venture or associate company as on March 31, 2024.

The Board of Directors has recommended a dividend of Re.0.35 (35%) per equity share of Re.1/-each for the financial year ending on 31st March, 2024.

The proposed dividend on equity shares is subject to the approval of the shareholders at the upcoming Annual General Meeting (AGM) scheduled on Friday, 20^th September, 2024.

Upon approval by the shareholders, the dividend will be paid after the AGM, commencing from 20^th September 2024. The Record Date for determining the shareholders eligible for the dividend will be 13^th September, 2024.

In compliance with the provisions of Section 194 of the Income Tax Act, 1961, our company is obligated to deduct Tax Deducted at Source (TDS) at a rate of 10% on dividend payments. However, it is important to note that if the aggregate amount of dividends payable to an individual resident shareholder is up to Rs.5000, no TDS is deducted. Furthermore, no TDS is applicable for dividend payments made to entities such as Life Insurance Corporation, General Insurance Corporation of India, specified insurers, and Mutual Funds, as mentioned under Section 10(23D) of the Income Tax Act.

For non-resident shareholders, as per Section 195 of the Income Tax Act, 1961, TDS is required to be deducted at a rate of 20% along with the applicable surcharge on dividend payments.

The Authorized Share Capital of the Company stood at Rs. 28,45,00,000/- consisting of 26,24,00,000 equity shares of Re.1/- each, 200000 Redeemable Preference Shares of Rs. 100/- each, 1000 12% Non-Cumulative Preference Shares of Rs. 100/-each and 200000 un classified shares of Rs.10/-each.

The paid-up Equity Share Capital as at 31^st March, 2024 stood at 900.75 Lakhs. The Company has not issued any convertible securities or shares with differential voting rights nor has granted any stock options or sweat equity or warrants.

During the F. Y 2023-24, there were no changes in the Authorised, Issued, subscribed and Paid up capital of the Company.

The Company has not transferred any amount to the General Reserve for the year ended 31 March, 2024.

As mandated by the Ministry of Corporate Affairs, the financial statements for the year ended on 31^st March, 2024 has been prepared in accordance with the Indian Accounting Standards (IND AS) notified under Section 133 of the Companies Act, 2013(hereinafter referred to as "the Act") read with the Companies (Accounts) Rules, 2014 as amended from time to time. The estimates and judgments relating to the Financial Statements are made on a prudent basis, so as to reflect in a true and fair manner, the form and substance of transactions and reasonably present the Company's state of affairs, profits and for the year ended 31^st March, 2024. The Notes to the Financial Statements adequately cover the standalone Audited Statements and form an integral part of this Report.

There is no material subsidiary of the company as on 31^st March, 2024. However, still the Policy of determining material subsidiary has been uploaded on the Company's website at http://www. asigroup.co.in.

The Management Discussion and Analysis Report on the operations of the Company, as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as "Listing Regulations") is provided in a separate section and forms an integral part of this Report.

As per Regulation 34(3) read with Schedule V of the Listing Regulations, a separate section on corporate governance practices followed by the Company, together with a certificate from the Company's Auditors confirming compliance forms an integral part of this Report.

Annual Return in Form MGT-7, as required under Section 92 of the Act is available on the Company's website viz. http://www. asigroup.co.in DIRECTORS self-assessment

In accordance with the provisions of Section 152 of the Act and the Company's Articles of Association, Mr. Tushya Jatia, self- Director retires by rotation at the forthcoming Annual General Meeting and, being eligible offers himself for re-appointment. The Board recommends his re-appointment for the consideration of the Members of the Company at the forthcoming Annual General Meeting.

Brief profile Notice convening the Annual General Meeting.

As recommended by the Nomination and Remuneration committee, board of directors at their meeting held on 23^rd July, 2024 subject to approval of members at the ensuing Annual General Meeting, re-appointed Mr. Deepak Jatia as Managing Director and Mr. Tushya Jatia as Whole Time Directors (designated as Executive Director) for a further period of 3 years. Terms and conditions, duration and other details are set out in the notice of Annual General Meeting.

During the year under review, Mr. Sanjay Seksaria resigned as independent director of the company w.e.f. 17^th August, 2023. Further, tenure of Mr. Anshul Sonawala as an Independent director of the company was expired on 31^st March, 2024. During the year under review: (i) Board of directors at their meeting held on 26^th August, 2023 appointed Mr. Padamkumar Radheshyam Poddar (DIN:00012533) as an additional director designated as independent director, with effective from 26^th August 2023 not liable to retire by rotation and to hold office upto 25 th August, 2028. Further, his appointment was approved by members at the annual general meeting of the company held on 29^th September, 2023. (ii) Board of directors at their meeting held on 9^th February, 2024 appointed Mr. Arunanshu V. Agarwal (DIN: 00166400) as an additional director designated as Independent director of the Company, with effective from 10th February, 2024 not liable to retire by rotation and to hold office effective upto 9th February, 2029. Further, above appointment was approved by members through special resolution passed by way of postal ballot details of which are given separately under postal ballot section of corporate governance report.

All Independent Directors of the Company have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Act and Regulation 16(1) (b) of the Listing Regulations. The Board is of the opinion that all Independent Directors of the Company possess requisite qualifications, experience, expertise and they hold highest standards of integrity. All Independent Directors of the Company have registered themselves with the Indian Institute of Corporate Affairs at Manesar (‘IICA') as required under Rule 6 of Companies (Appointment and Qualification of Directors) Rules, 2014. Further all the Independent Director except Mr. Arunanshu V. Agarwal have served on the board of listed entities and hence shall not berequired to pass the online proficiency test as per the proviso to Rule 6(4) of the Companies (Appointment and Qualification of Directors) Rules, 2014. Mr. Arunanshu V. Agarwal will provide the online proficiency test in due course.

The Independent Directors have also confirmed that they have complied with the Company's Code of Business Conduct & Ethics. of Mr. Tushya Jatia has been given in the

The details of the number of meetings of the Board held during the Financial Year 2023-24 forms part of the Corporate Governance Report.

Mr. Deepak Jatia- Chairman and Managing Director,

Mr. Tushya Jatia, Whole-time Director,

Mrs. Anita Jatia, Whole-time Director,

Mr. Pavan Soni- Chief Financial Officer

Company Secretary and Compliance Officer are the Key Managerial Personnel of the Company.

No persons were appointed/ceased as Key Managerial Personnel of the Company during the year under review.

The Board of Directors have Audit Committee, Nomination and Remuneration Committee, Stakeholders' Relationship Committee and Corporate Social Responsibility Committee. The details of the Committees along with their composition, number of meetings and attendance at the meetings are provided in the Corporate Governance Report.

In terms with the Policy for Evaluation of the Performance of the Board of Directors of the Company, we conducted a formal Board Effectiveness Review, as part of our efforts to evaluate the performance of our Board and identify areas that need improvement, in order to enhance the effectiveness of the Board, its Committees, and Individual Directors. This was in line with the requirements of the Companies Act 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements Regulations) 2015.

The criteria for Board processes included Board composition, strategic orientation and team dynamics. Evaluation of each of the Board Committees covered whether they have well-defined objectives, the correct composition, and whether they achieved their objectives. The criteria for Individual Board Members included skills, experience, level of preparedness, attendance, extent of contribution to Board debates and discussion, and how each Director leveraged their expertise and networks to meaningfully contribute to the Company. The criteria for the Chairperson's evaluation included leadership style and conduct of Board Meetings.

Further, the performance evaluation criteria for Independent Directors included a check on their fulfilmentof the independence criteria and their independence from the management.

The performance evaluation of the Directors was completed during the year under review. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors and Non-Executive Director. The Board of Directors expressed their satisfaction with the evaluation process.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE COMPANY and material order has been passed

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Act are given in the notes to Financial Statements forming a part of this Annual Report.

The Company has a Whistle Blower Policy to report genuine concerns or grievances and to provide adequate safeguards against victimization of persons who may use such mechanism. The Whistle Blower Policy has been posted on the website of the Company at http://www.asigroup.co.in

The Board of Directors has framed a policy which lays down a framework in relation to remuneration of Directors, Key Managerial Personnel and Senior Management of the Company. The Policy broadly lays down the guiding principles, philosophy and the basis for payment of remuneration to Executive and Non-executive Directors (by way of sitting fees and commission), Key Managerial Personnel, Senior Management and other employees. The policy also provides the criteria for determining qualifications, positive attributes and Independence of Director and criteria for appointment of Key Managerial Personnel / Senior Management and performance evaluation which are considered by the Nomination and Remuneration Committee and the Board of Directors while making selection of the candidates. The above policy has been posted on the website of the Company at http:// www.asigroup.co.in

All transactions entered with Related Parties for the year under review were on arm's length basis and thus a disclosure in Form AOC-2 in terms of Section 134 of the Act is not required. Further, there are no material related party transactions during the year under review with the Promoters, Directors or Key Managerial Personnel. All related party transactions are mentioned in the notes to the accounts. The Company has developed a framework through Standard Operating Procedures for the purpose of identification and monitoring of such Related Party Transactions.

All Related Party Transactions are placed before the Audit Committee for approval. Omnibus approval was obtained on a yearly basis for transactions which are of repetitive nature and a statement giving details of all Related Party Transactions are placed before the Audit Committee and the Board for review and approval on a quarterly basis.

The Policy on Related Party Transactions as approved by the Board of Directors has been uploaded on the website of the Company and can be seen at the link http://www.asigroup. co.in . None of the Directors has any pecuniary relationship or transactions vis-?-vis the Company except remuneration and sitting fees.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS by the No significant regulators, courts, tribunals impacting the going concern status and Company's operations in future.

Since the company no longer requires credit rating for borrowing facilities enjoyed by the Company, no ratings were obtained during the F. Y 2023-24.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(3)(c) and 134(5) of the Companies Act, 2013, with respect to the Directors'

Responsibility Statement, it is hereby confirmed that:

• In the preparation of the annual accounts for the year ended 31^st March 2024, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same;

• The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at 31^st March, 2024 and of the loss of your Company for the year ended on that date;

• The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities; • the Directors have prepared annual accounts on a ‘going concern' basis;

• the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and • the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

M/s B. L. Ajmera & Co., Chartered Accountants, Jaipur (FRN- 001100C) was appointed as Statutory Auditor of the at the Annual Company for a period of five

General Meeting of the Members held on 30^th September, 2022 on a remuneration mutually agreed upon by the Board of Directors and the Statutory Auditors.

The Auditors have also furnished a declaration confirming their independence as well as their arm's length relationship with the Company as well as declaring that they have not taken up any prohibited non-audit assignments for the Company. The Audit Committee reviews the independence of the Auditors and the effectiveness of the Audit process.

Further, there are no qualifications or adverse remarks in the Auditors' Report which require any clarification/explanation.

The Notes on financial statements are self-explanatory and need no further explanation. The Statutory Auditors have not reported any frauds under Section 143(12) of the Act.

As per the requirement of the Central Government and pursuant to Section 148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, M/s. N.D. Birla & Co., a firm of Cost Accountants in practice was appointed to undertake the cost audit for the financial year ended 31^st March, 2024. The Company has maintained Cost Record as specified by the Central Government under sub section (1) of Section 148 of the Companies Act, 2013.

Further, the Board of Directors, on the recommendation of the Audit Committee, have appointed M/s. N.D. Birla & Co., a firm of Cost Accountants to undertake records of the Company for the financial year ended 31^st March, 2025.

As required under Section 204 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board has appointed M/s. GMJ & Associates, Company Secretaries, as Secretarial Auditors of the Company in relation to the financial year 2024-25. The Company has received their consent for such appointment. The Secretarial Audit Report for the year 2023-24 is attached as Annexure-"A".

There is no secretarial audit qualification for the year under review.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has an effective internal control and risk-mitigation system, which are constantly assessed and strengthened with new/revised standard operating procedures. The Company's internal control system is commensurate with its size, scale and complexities of its operations. The internal and operational audit is entrusted to M/s L.B.Jha & Co Chartered Accountants. The main thrust of internal audit is to test and review controls, appraisal of risks and business processes, besides benchmarking controls with best practices in the industry.

The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.

There was no instance of fraud during the year under review, which required the Statutory Auditors to report to the Audit Committee and / or Board under Section 143(12) of the Companies Act, 2013 and Rules framed thereunder.

Your Company recognizes that risk is an integral part of business and is committed to managing the risks in a proactive and efficient manner. Your Company periodically assesses risks in the internal and external environment, along with the cost of treating risks and incorporates risk management plans in its strategy, business and operational plans.

Your Company, through its risk management policy and effective risk management process, strive to contain impact and likelihood of the risks within the risk appetite as agreed from time to time with the Board of Directors. There are no risks which in the opinion of the Board threaten the theexistence audit of of your Company. However, some of the risks whichcost may pose challenges are set out in the Management Discussion and Analysis which forms part of this Report.

As per provision of Section 135 read with Schedule VII of the Companies Act, 2013 along with the Companies (Corporate Social Responsibility Policy) Rules, 2014 and any other statutory amendment or modification thereof and the Company's CSR

Policy in respect of Corporate Social Responsibility activity, a separate Report on CSR activities is attached as Annexure "B" to this Report. The CSR Policy has been posted on the website of the Company at http://www.asigroup.co.in For further details, also refer Note No. 29(b) notes to accounts of standalone financial statement for CSR Expenditure.

The Company is conscious of the importance of environmentally clean and safe operations. The Company's policy requires conduct of operations in such a manner so as to ensure safety of all concerned, compliances of environmental regulations and preservation of natural resources.

In order to comply with provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Rules framed thereunder, the Company has formulated and implemented a policy on prevention, prohibition and redressal of complaints related to sexual harassment of women at the workplace. All women employees either permanent, temporary or contractual are covered under the above policy. The said policy has been uploaded on the internal portal of the Company for information of all employees. An Internal Complaint Committee has been set up in compliance with the said Act. During the year under review, no complaints pertaining to sexual harassment of women employees were reported to the Company.

The Company takes pride in the commitment, competence and dedication of its employees in all areas of the business. The Company has a structured induction process at all locations objective appraisal systems based on Key Result Areas (KRAs) are in place for senior management staff.

Pursuant to the applicable provisions of the Companies Act, 2013, read with IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, all unpaid and unclaimed dividends are required to be transferred by the Company to IEPF established by the Central Government, after the completion of seven years. Further, according to the rules, the shares in respect of which dividend has not been paid or claimed by the shareholders for seven consecutive years or more shall also be transferred to the demat account created by the IEPF Authority, accordingly the Company has transferred unclaimed and unpaid dividend pertaining to FY 2015-16 on 16^th October, 2023. Further, the corresponding shares were also transferred to the IEPF Authority as per the requirements of IEPF Rules, details of which are provided on Company's website at http://www.asigroup.co.in.

The Company has not accepted any deposits falling under the ambit of Section 73 of the Companies Act, 2013 and the Rules framed thereunder, during the year under review. This does not include advances against supply of goods within a period of 365 days from the date of acceptance of such advance or any other amount received not considered as deposit as per rule 2 (1) (c) of the Companies (Acceptance of Deposit) Rules, 2014.

Pursuant to Regulation 39 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details in respect of the shares lying in the un-claimed suspense account till March 31, 2024 are as follow:

Voting rights on these 4,61,726 shares shall remain frozen till the rightful owner of such shares claims the shares. Shareholders may get in touch with the Company/RTA for any further information in this matter.

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo pursuant to Section 134(3) (m) of the Act, read with the Rule 8(3) of the Companies (Accounts) Rules, 2014 is attached as Annexure "C" and forms an integral part of this Report.

The Disclosure required under Section 197(12) of the Act read with the Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is attached as Annexure "'D" and forms an integral part of this Report. A statement comprising the names of top 10 employees in terms of remuneration drawn and every persons employed throughout the year, who were in receipt of remuneration in terms of Rule 5(2) of the Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014 is attached as Annexure "D" and forms an integral part of this report. In terms of Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the statement showing the name of the employees drawing remuneration in excess of the on the Company limitspecified as during the period, no employee of the Company was drawing salary in excess of the that drawn by the Managing Director or Whole Time Director or Manager. The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

We would like to inform that your Company is not having any subsidiary, joint venture or associate company as on March 31, 2024.

Statements in the Board's Report and the Management Discussion & Analysis Report describing the Company's objectives, expectations or forecasts may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed in the statements.

During the year under review, there is no application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016

There are no material changes between the period from end of financial year to the date of the report of the Board

During the year under review, No one time settlement was taken place. Hence, the disclosure is not applicable.

Your Directors wish to place on record their appreciation, for the contribution made by the employees at all levels but for whose hard work, and support, your Company's achievements would not have been possible. Your Directors also wish to thank its customers, dealers, agents, suppliers, investors and bankers for their continued support and faith reposed in the Company.