Your Directors have pleasure in presenting 41"' Annual Report together with the Audited Statement of Accounts of the Company for the
year ended 31^st March, 2025.

Further, in compliance with the Companies Act, 2013 the Company has made requisite disclosures in this Board's Report with the
objective of accountability and transparency in its operations to make you aware about its performance and future perspective of the
Company.

FINANCIAL RESULTS

The Audited Standalone Financial Statements of the Company as on 31^st March, 2025 are prepared in accordance with the relevant
applicable IND AS and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
(“Listing Regulations”) and provisions of the Companies Act, 2013 (“Act”).

The performance of the Company for the financial year ended on 31^st March, 2025 is summarized below:

INDIAN ACCOUNTING STANDARDS (Ind AS)

As mandated by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (“Ind AS”) from 1^st April, 2017.
The financial statements of the Company for the financial year 2024-2025 have been prepared in accordance with Ind AS, prescribed
under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 and the other
recognized accounting practices and policies to the extent applicable.

DIVIDEND

Your Directors have decided to plough back the profits to the operational fund requirement of the Company. Hence, no dividend has been
recommended for the year under review.

AMOUNT TRANSFERRED TO RESERVE

The Board of Directors has not proposed any amount for transfer to reserves for the year ended 31^st March, 2025.

CHANGE IN NATURE OF BUSINESS

During the year there was no change in the nature of business of the company.

OPERATIONS

During the year under review, Revenue from operations and Other Income of the Company stood at Rs. 20,610.47 Lacs showing
increasing trend over the previous year Revenue from operations and Other Income Rs. 3,393.46 Lacs Profit before tax has Increased
and stood at Rs. 373.17 Lacs as compared to previous year figures Rs. 89.58 Lacs and Net Profit also Increased and stood at Rs.
282.72 Lacs as compared to previous year net profit Rs. 67.64 Lacs.

Your Directors are hopeful for better performance in the coming years.

DEPOSITS FROM PUBLIC

The Company has not accepted any deposits from the public within the meaning of Section 73 of the Companies Act, 2013 read with the
Companies (Acceptance of Deposits) Rules, 2014 and as such, no amount on account of principal or interest on deposits from public was
outstanding as on the date of the March 31,2025. The Company has not received any unsecured loan from Director during the financial
year.

SHARE CAPITAL

The Authorized Share Capital of the company as on March 31“, 2025 stood as Rs. 20,00,00,000 (Twenty Crore Rupees) comprising of
Rs. 19,00,00,000 divided into 1,90,00,000 Equity shares of Rs. 10/- each and Rs. 1,00,00,000 divided into 1,00,000 Preference Share of
Rs. 100/- each.

The Paid Up Equity Share Capital as on March, 31“ 2025 was Rs. 9,29,18,000 divided into 92,91,800 Equity shares of Rs. 10/- each.

Further the company has not issued any shares with differential voting rights, sweats equity shares, Bonus Shares and also not granted
stock options as prescribed in Companies Act, 2013 and rules framed there under.

TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

There were no funds which were required to be transferred to Investor Education and Protection Fund.

INSURANCE

All properties and insurable interests of the Company including Building and Plant & Machinery have been adequately insured.

HUMAN RESOURCE & INDUSTRIAL RELATIONS

Industrial relations were harmonious throughout the year. The Board wishes to place on record their sincere appreciation to the co¬
operation extended by all the employees in maintaining cordial relations.

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS

A separate report on Corporate Governance in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended, forms integral part of this report. Certificate regarding compliance of conditions of Corporate Governance Report issued by
Practicing Company Secretary is attached separately to this report.

Management Discussion and Analysis Report as required under Regulation 34 of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended, is attached separately to this Annual Report.

DIRECTORS' RESPONSIBILITIES STATEMENT

To the best of their knowledge and belief, your Directors make the following statements in terms of Section 134(3) (c) read with Section
134(5) of the Companies Act, 2013:

I) That in the preparation of the annual accounts for financial year ended 31“ March, 2025; the applicable accounting standards have
been followed along with proper explanation relating to material departures, if any;

ii) That the Directors have 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 financial year and of the profit/
loss of the Company for that period;

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

iv) That the Directors have prepared the annual accounts on a going concern basis;

v) That the Directors have laid down internal financial controls, which are adequate and are operating effectively;

vi) That 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.

DIRECTORS AND KEY MANAGERIAL PERSONNEL
Re-appointment of Director

Ms. Deepika Arora (DIN: 07117491), Non-Executive Director of the Company retires by rotation in accordance with the provisions of the
Articles of Association of the Company and being eligible offer herself for re-appointment.

A resolution seeking Shareholders' approval for her re-appointment along with other required details forms part of the Notice.

Details of Director seeking re-appointment as required under the Listing Regulations are provided in the Notice forming part of this Annual
Report. Re-appointment of Ms. Deepika Arora (DIN: 07117491) is appropriate and in the best interest of the Company.

Cessation of Director

During the financial year, there has been no cessation of any director in the Company.

Key Managerial Personnel (KMP)

During the period under the review, there were no changes in the composition of the Key Managerial Personnel of the company.

The following are the KMP of the Company as on March 31,2025:

• Mr. Ajay Peshkar, Whole-time Director

• Mr. Om Prakash Mundra, Chief Financial Officer

• Ms. Riya Bhandari, Company Secretary

Declaration by Director

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

Declaration by Independent Director

All Independent Directors have given declarations under section 149(7) that they meet the criteria of independence as laid down under
Section 149(6) of the Companies Act, 2013 and Regulation 16 of SeBi (Listing Obligations and Disclosure Requirements) Regulations,
2015, as amended.

In compliance with Rule 6 of Companies (Appointment and Qualification of Directors) Rules, 2014, all Independent Directors of the
Company have registered themselves with the India Institute of Corporate Affairs (IICA), Manesar and have included their names in the
databank of Independent Directors within the statutory timeline. They have also confirmed that they will appear for the online proficiency
test, wherever applicable.

NOMINATION AND REMUNERATION POLICY

In compliance with the requirements of Section 178 of the Act and Regulation 19 of the SEBI Listing Regulations, 2015, the Company has
laid down a Nomination and Remuneration Policy which has been uploaded on the Company's website. The web-link as required under
the Act is as under: https://www.sarthakindustries.com/.

LISTING OF SHARES

The equity shares of the Company are listed on the BSE Limited (BSE). The listing fee for the year 2025-26 has already been paid to the
Stock Exchange.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

As on 31.03.2025, the Company does not have any subsidiary company or joint venture or associate company.

NUMBER OF MEETINGS OF THE BOARD

The Board met 11 times during the financial year. The details of which are given in the Corporate Governance Report that forms part of
this annual report. The intervening gap between any two Meetings was within the period prescribed under the Companies Act, 2013.

MEETING OF INDEPENDENT DIRECTORS

During the year under review, one meeting of the Independent Directors was held on 07.02.2025, without the attendance of Executive
Directors and members of management. All the Independent Directors were present in that meeting.

NUMBER OF COMMITTEE MEETINGS & ATTENDANCE

The details of the Committee Meetings and respective attendance of Members therein are provided in the Corporate Governance Report
forming part of Annual Report

CODE OF CONDUCT

The Company has laid down a code of conduct for all Board members and Senior Management and Independent Directors of the
Company. All the Board members including Independent Directors and Senior Management Personnel have affirmed compliance with
the code of conduct. Declaration on adherence to the code of conduct is forming part of the Corporate Governance Report.

BOARD EVALUATION

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, SEBI Listing Regulations and the Guidance Note on Board Evaluation issued by the Securities and Exchange
Board of India on January 5, 2017 bearing Circular No. SEBI/HO/CFD/CMD/CIR/P/2017/004.

The Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation
of the working of its committees. The evaluation of all the directors and the Board as a whole was conducted based on the criteria and
framework adopted by the Board. The performance evaluation of the Independent Directors was carried out by the entire Board. The
performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors who also
reviewed the performance of the Secretarial Department. The Directors expressed their satisfaction with the evaluation process.

FAMILIARIZATION PROGRAMME

Details of the programmes for familiarization of the Independent Directors with the Company, their roles, rights, responsibilities in the
Company, nature of the industry in which the Company operates, business model of the Company, etc. are available on the website of the
Company at the link: http://sarthakindustries.com/upload/investors_file/CTI1676637163.pdf

INTERNAL FINANCIAL CONTROLS

The Company has adequate internal financial control systems commensurate with its nature of business and size of the operations of the
Company including adherence to Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information and to monitor and
ensure compliance with applicable laws, rules, and regulations.

The Company has also appointed an Internal Auditor as per the provisions of the Companies Act, 2013. The Company's internal audit
process covers all significant operational areas and reviews the Process and Control. The Internal Auditor has authority to verify whether
the policies and procedures, including financial transactions, are carried out in accordance with defined processes and variations and
exceptions (if any) are justified and reported properly.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Your Company has not given any loans or guarantees or made investment beyond the limits mentioned under the provisions of Section
186 of the Companies Act, 2013.

RELATED PARTY TRANSACTIONS

During the year under review, all transactions entered into with related parties were approved by the Audit Committee of Directors.
Certain transactions, which were repetitive in nature, were approved through the omnibus route. As per the Listing Regulations, any
related party transaction exceeding Rs. 1,000 crore or 10% of the annual consolidated turnover, as per the last audited financial
statement whichever is lower, is considered as material and requires the Members' approval. Accordingly, the Company sought and
obtained the necessary Members' approval for the year under review. However, there were no transactions with any related parties falling
under the scope of Section 188 of the Act. Therefore, the disclosure of Related Party Transactions as required under Section 134(3)(h) of
the Act in Form AOC-2 is not applicable for FY 2025 and does not form part of this report.

The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be
accessed on the Company's website at the link:

http://sarthakindustries.com/upload/investors_file/CTM618510472.pdf

A statement showing the disclosure of transactions with related parties as required under Ind AS 24 is set out separately in this Annual
Report.

MATERIAL CHANGES AND COMMITMENT BETWEEN THE DATE OF THE BOARD REPORT AND END OF FINANCIAL YEAR

No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to
which this financial statements relate and the date of this report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS/ OUTGO

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section
134(3)(m) of the Companies Act, 2013 read with Rule, 8 of The Companies (Accounts) Rules, 2014, are given in the ‘‘Annexure A”
forming part of this report.

PARTICULARS OF THE EMPLOYEES AND RELATED DISCLOSURES

Disclosure pertaining to remuneration and other details as 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, are given in the ‘‘Annexure B” forming part of
this report.

During the year under review, none of the employee of the company is drawing more than Rs.1,02,00,000/- per annum or Rs. 8,50,000/-
per month for the part of the year. The information required under Rule 5(2) and (3) of The Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, is provided in the Annexure forming part of this Report. In terms of the first provision to Section 136 of
the Act, the Report and Accounts are being sent to the Members excluding the aforesaid Annexure. Any Member interested in obtaining
the same may write to the Company Secretary at the Registered Office of the Company.

Further, none of directors is drawing any remuneration or commission from any subsidiary or associate companies.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION

The policy on Directors' Appointment and Remuneration including criteria for determining qualifications, positive attributes,
independence of a director and other matters provided under sub-section (3) of Section 178 of the Companies Act, 2013, and under
Regulation 19 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, adopted by the Board,
The Details of the said Policy is available on website of the Company i.e. https://www.sarthakindustries.com/policy-and-
disclosures and annexed as "Annexure C”.

AUDIT COMMITTEE

The details pertaining to composition of Audit Committee are included in the Corporate Governance Report, which forms part of this
report. All the recommendations made by the Audit Committee were accepted by the Board.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Company has a Vigil Mechanism which also incorporates a Whistle Blower Policy in line with the provisions of the Companies Act,
2013 and the Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to report
genuine concerns or grievances. The Vigil Mechanism/ Whistle Blower Policy may be accessed on the Company's website i.e.
https://www.sarthakindustries.com/assets/pdf/Vigil_Mechanism_and_Whistle_Blower_Policy.pdf.

RISK MANAGEMENT

Pursuant to section 134 (3) (n) of the Companies Act, 2013 & Regulation 17(9) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended, the Board of the Company has formed a Risk Management Committee to frame,
implement and monitor the Risk Management Plan for the Company. The details of risk have been covered in the Management
Discussion and Analysis Report forming part of the Board's report.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not
applicable to the Company.

AUDITORS & AUDITORS REPORT
STATUTORY AUDITOR

At the 39^th Annual General meeting held for the financial year ended 31.03.2023 on 11^th August, 2023, M/s. Ashok Khasgiwala & Co. LLP,
Chartered Accountants (Firm Registration No. 000743C/C400037), were appointed as the Statutory Auditors of the Company to the
Members for the period of five year from the conclusion of 39^th Annual General Meeting of the Company till the conclusion of 44^th Annual
General Meeting of the Company.

The notes referred to by the Auditors in their Report are self-explanatory and hence do not require any explanation.

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

COST AUDITOR AND COST AUDIT REPORT

The Board has appointed M/s. A. Goyal & Co., Cost Accountants, (Firm Registration No. 101308) as Cost Auditors of the Company for
conducting the audit of cost records maintained by the Company for the financial year 2025-26. The Cost Audit Report for the year 2023¬
24 was filed with the Central Government within time.

INTERNAL AUDITORS

Internal Audit for the year ended March 31,2025 was done by M/s. S K Malani & Co. (Firm Registration Number: 159090W). The Board
takes his suggestions and recommendations to improve and strengthen the internal control systems. The Audit Committee reviews
adequacy and effectiveness of the Company's internal control environment and monitors the implementation of audit recommendations.
The Board has re-appointed M/s. 'S K Malani & Co.' (Firm Registration Number: 159090W), as Internal Auditor of the company for the
year ended March 31,2026.

SECRETARIAL AUDITOR AND SECRETARIAL AUDIT REPORT

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and rules made thereunder, the Company has appointed M/s. Ajit
Jain & Co., Practicing Company Secretaries to undertake the Secretarial Audit of the Company for the financial year 2024-2025.

M/s. Ajit Jain & Co.,, Practicing Company Secretaries, Secretarial Auditors, is proposed to be appointed on the basis of recommendation
of Board of Directors as the Secretarial Auditors of the Company from the conclusion of this 41"' Annual General Meeting till the
conclusion of 46'^h Annual General Meeting of the Company pursuant to the provisions of Regulation 24A of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, as amended and Section 204 of the Companies Act, 2013 and rules made thereunder,
subject to approval of shareholder of the company in the 41st Annual General Meeting of the Company. Written consent of the Secretarial
Auditors and confirmation to the effect that they are eligible and not disqualified to be appointed as the Auditors of the Company in the
terms of the provisions of the Listing Regulations, the Companies Act, 2013 and the rules made thereunder.

Secretarial Audi' Report:

Section 204 of the Companies Act, 2013 inter-alia requires every listed Company to undertake a Secretarial Audit and shall annex with its
Board's Report a Secretarial Audit Report given by a Company Secretary in practice in the prescribed form.

Your Company has adopted an ongoing secretarial audit practice throughout the financial year and has placed its periodic secretarial
audit report before the Board. This approach has resulted in detecting areas of improvement early and strengthened our level of
compliance reporting.

The Secretarial Audit Report for the financial year 2024-2025 is annexed herewith as “Annexure D” forming part of this report.

There are no adverse comments, qualifications or reservations or adverse remarks in the Secretarial Audit Report.

PREVENTION OF INSIDER TRADING

The Board of Directors has adopted the code as per SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended; The Details of
the said code is available on website of the Company at the weblink:
h''p://"ar'hakindu"'rie".com/upload/inve"'or"_file/CTI1618510757.pdf
BUSINESS RESPONSIBILITY REPORT

The Business Responsibility Reporting as required by Regulation 34(2) of the SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015, as amended, is not applicable to your Company for the financial year ending March 31,2025.

SIGNIFICANT AND MATERIAL ORDERS

There are no significant and material orders passed by the regulator or courts or tribunals impacting the going concern status of the
Company and future operations.

THE DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE TIME SETTLEMENT AND
THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS ORFINANCIAL INSTITUTIONS ALONG WITH THE REASONS
THEREOF:

Not Applicable, as there was no One Time Settlement of loan taken from Banks or any financial Institutions. Hence, the difference in
valuation does not arise

APPLICATION OR PROCEEDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

There is no application made or no proceeding pending under the Insolvency and Bankruptcy Code, 2016. There was no instance of
onetime settlement with any Bank or Financial Institution.

SECRETARIAL STANDARDS

Your Company has devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards issued by
the Institute of Company Secretaries of India and that such systems are adequate and operating effectively.

IMPLEMENTATION OF CORPORATE ACTION

During the year under review, the Company has not failed to implement any Corporate Actions within the specified time limit.

CREDIT RATING

Credit rating obtained along with revisions thereto for bank facilities of the Company during FY 2024-2025 as under:

ANNUAL RETURN

Pursuant to the provisions of Section 92(3) of the Companies Act, the annual return is available at Company's website
http://sarthakindustries.com/annual-return.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

The Company has in place an anti harassment policy in line with the requirements of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. All employees (permanent, contractual, temporary, trainees) are covered under the
policy. An Internal Complaints Committee (ICC) has also been set up to redress complaints received on sexual harassment. There was
no complaint received from any employee during the financial year 2024-2025 and hence no complaint is outstanding as on 31.03.2025
for redressal.

(a) Number of complaints of sexual harassment received in the year: Nil;

(b) Number of complaints disposed off during the year: Nil;

(c) Number of cases pending for more than ninety days: Nil.

COMPLIANCE OF THE PROVISIONS RELATING TO THE MATERNITY BENEFIT ACT, 1961

Pursuant to the provisions of the Companies (Accounts) Rules, 2014, the Company confirms compliance with the applicable provisions
of the Maternity Benefit Act, 1961 including but not limited paid maternity leave and nursing breaks, work from home provisions(where
applicable), creche facility (where required) and protection against dismissal during maternity leave.

The Company is deeply committed to promoting women's empowerment through progressive policies, leadership opportunities, and
continuous support for work-life balance. Regular reviews ensure that our practices align with both legal standards and our core values of
equality and inclusivity to fostering a compliant, equitable and employee- friendly environment in line with intent and spirit of the Maternity
Benefit Act, 1961.

ACKNOWLEDGEMENTS

The Directors wish to convey their appreciation to all the employees of the Company for their enormous personal efforts as well as their
collective contribution during the year. The Directors would also like to thank the shareholders, customers, suppliers, bankers, financial
institutions and all other business associates for their continuous support given by them to the Company and their confidence in the
management.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

AJAY PESHKAR DEEPIKA ARORA

Whole-time Director Director

DIN: 03094090 DIN:07117491

Place: Indore
Dated: 20^th August, 2025