Dear Members,

The Board of Director's is pleased to present the Eighteenth Annual Report on the business and operations of Sirca Paints India Limited ("SPIL" or the "Company") together with the audited financial statements (standalone and consolidated) for the financial year 2022-23.

**** Company has allo ed 27404400 Equity Shares on May 12, 2023 as Bonus Shares to the beneficial owner of Equity Shares holders as on May 11, 2023 being the record date.

**** Calculation of EPS has been done after considering the Bonus Shares allo ed on May 12, 2023.

Total revenue during the year 2023 was 26774.94 Lakhs as compared to 20002.49 Lakhs during the year 2022- an increase of 33.86%;

Profit after tax was 4611.08 Lakhs during the year 2023 as compared to 2772.72 Lakhs during the year 2022- an increase of 66.30%;

Basic earnings per share (of face value of 10/- each) was 8.41 for the year 2023 as compared to 5.06 for the year 2022, an increase of 66.20%.

Total revenue during the year 2023 was 26774.94 Lakhs as compared to 20002.49 Lakhs during the year2022- an increase of 33.86%;

Profit after tax was 4610.67 Lakhs during the year 2023 as compared to 2772.33 Lakhs during the year 2022-an increase of 66.31%;

Basic earnings per share (of face value of 10/- each) was 8.41 for the year 2023 as compared to 5.06 for the year 2022, an increase of 66.20%.

The state of affairs of the Company is presented as part of Management Discussion and Analysis Report forming part of this report.

Pursuant to the provisions of Section 118 of the Companies Act, 2013, the Company has complied with the applicable provisions of secretarial standards issued by the Institute of Company Secretaries of India.

The Board of directors of the Company has recommended a final dividend of 1.5/- per equity share of 10/- each (15% of Face Value)at its meeting held on May 16, 2023 for the Financial Year 2022-23. In terms of the provisions of the Finance Act, 2020, dividend shall be taxed in the hands of the shareholders and the Company shall withhold tax at source at the applicable rates. The payment is subject to the approval of the shareholders at the ensuing Annual General Meeting (‘AGM') of the Company to those members whose names appeared on the Register of Members of the Company on the record date.

The Board of Directors of the Company in line with provisions of Regulation 43A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) had approved Dividend Distribution Policy. The Dividend Distribution policy is uploaded on Company's website and can be accessed at the link h ps://www.sircapaints. com/wp-content/uploads/2021/06/Dividend-Distribution-Policy.pdf

During the year under review, no amount has been transferred to any of the reserves by the Company.

The Board of Directors at their meeting held on March 29, 2023, recommended issue of bonus equity shares, in the proportion of 1:1, i.e. 1 (One) bonus equity share of 10/- each for every 1 (One) fully paid-up equity shares of 10/- each held by the Members of the Company.

The Ordinary resolution passed for the said bonus issue by the Members of the Company vide postal ballot (remote e-voting) dated May 3, 2023. Subsequently, the Board of Directors at their meeting held on May 12, 2023 approved allotment of 2,74,04,400/- bonus equity shares to those beneficiaries whose name were appeared in the list of NSDL, CDSL and RTA on record date i.e. May 11, 2023.

Company received the listing approval from the BSE & NSE on May 15, 2023, after ge ing the due listing Approval the Company further received trading approval on Bonus shares from the BSE & NSE on May 23, 2023.

There has been no increase/decrease in the Authorised Share Capital as well as Issued, Subscribed and Paid-up share capital of the Company during the year under review.

As on March 31, 2023, the Authorized share capital of the Company was 32,00,00,000/- divided into 3,20,00,000 equity shares of face value of 10 each.

The Issued, Subscribed and Paid-up share capital of the Company as on March 31, 2023 was 27,40,44,000/- divided into 2,74,04,400 equity shares of face value of 10 each

Further, the Board of Directors, at its meeting held on March 29, 2023, approved the increase in Authorized Share Capital of the Company from 32,00,00,000/- to

60,00,00,000/- and issue of Bonus shares in the proportion of 1 (One) New Equity Share of 10 each for every 1 (One) existing Equity Shares of 10 each, subject to approval of the Shareholders.

Approval of the Shareholders sought vide Postal Ballot Notice dated March 29, 2023. Subsequently, the Shareholder approved on May 3, 2023 increase the Authorized Share Capital of the Company from

32,00,00,000/- (Rupees Thirty-Two Crores only) to

60,00,00,000/- (Rupees Sixty Crores only) and also approved the issue of bonus equity shares in the ratio of 1:1 through postal ballot (remote e-voting)

Further in addition to the approval of issue of bonus shares, the Board of Directors, at it's meeting held on May 12, 2023 approved the allotment of equity bonus shares of 2,74,04,400 (Two Crores Seventy Four Lakhs Four Thousand Four Hundred) Equity Shares of 10/- each which resulted in to increase in paid-up, issued and subscribed equity shares capital of the Company from 2,74,04,400 equity shares to 5,48,08,800 equity shares face value of 10/- per share

The bonus shares were allo ed by capitalizing the Company's Free Reserves in compliance with the provisions of the Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

During the year under review, the Company has not accepted any deposits from the public under Section 73 and 76 of the Act and rules made thereunder and no amount of principal or interest was outstanding as at the end of Financial Year 2022-23. There were no unclaimed or unpaid deposits lying with the Company.

There has been no change in the nature of business during the year. 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 this Report.

During the year under review, the Company has not changed its Registered Office

The Company continues to comply with all the requirements prescribed by the Reserve Bank of India from time to time.

As on March 31, 2023, there were Eight (8) Directors on the Board of the Company, consisting of Four (4) Independent Directors,Two(2)Non-ExecutiveDirectors(1ofwhomispart of the Promoter Group), Two (2) Executive Directors(both are part of the promoter group). Pursuant to the provisions of Section 203 of the Act, the Key Managerial Personnel of the Company as on March 31, 2023 are:

i. Mr. Sanjay Agarwal - Chairman and Managing Director, ii. Mr. Apoorv Agarwal - Joint Managing Director, iii. Ms. Shallu - Chief Financial Officer, and

iv. Mr. Suraj Singh - Company Secretary & Compliance Officer of the Company.

During the year under review, the following changes took place in the office of directors of the Company.

Mr. Gurjit Singh Bains(DIN: 01977032) was re-appointed as director liable to retire by rotation at the Annual General Meeting held on July 25, 2022.

Mr. Sanjay Agarwal (DIN: 01302479) was, on recommendation of Nomination and Remuneration Commi ee, reappointed as the Chairman cum Managing Director of the Company for further period of 5 years with effect from November 14, 2022 by the Board of Directors of the Company at their meeting held on June 20, 2022 and the same was approved by the members at the 17 Annual General Meeting of the Company held on July 25, 2022

Mr. Apoorv Agarwal (DIN: 01302537) was, on recommendation of Nomination and Remuneration Commi ee, reappointed as the Joint Managing Director of the Company for further period of 5 years with effect from November 14, 2022 by the Board of Directors of the Company at their meeting held on June 20, 2022 and the same was approved by the members at the 17 Annual General Meeting of the Company held on July 25, 2022.

Mr.SanjayKapoor(DIN:00383275)was,onrecommendation of Nomination and Remuneration Commi ee, reappointed as the Non- Executive Independent Director of the Company for further period of 5 years with effect from December 14, 2022 by the Board of Directors of the Company at their meeting held on June 20, 2022 and the same was approved by the members at the 17 Annual General Meeting of the Company held on July 25, 2022.

Details of Directors proposed to be re-appointed at the ensuing Annual General Meeting are as follows:

a. At the ensuing Annual General Meeting, Mr. Sanjay Agarwal (DIN: 01302479), Director of the Company is liable to retire by rotation in accordance with the provisions of Section 152 of the Companies Act, 2013, read with the Articles of Association of the Company and being eligible, offers himself for reappointment as director of the Company.

The brief profiles of Mr. Sanjay Agarwal forms part of the Corporate Governance Report and the notice of the ensuing Annual General Meeting of the Company.

No director of the Company is disqualified as per the provisions of Section 164(2) of the Companies Act, 2013. The directors of the Company have made necessary disclosures, as required under various provisions of the Companies Act, 2013 (Hereinafter referred as "the Act") and the Listing Regulations.

On the basis of the declarations submi ed by the Independent Director of the Company, the Board of Directors have opined that the Independent Director of the Company fulfil the required criteria as defined under Section 149(6) of the Act and the Listing Regulations.

As on date of this report, the Board comprises of 8 (Eight) Directors. The composition includes 4 (Four) Independent Directors. All the Independent Directors are appointed on theBoardofyourCompanyincompliancewiththeapplicable provisions of the Act and SEBI Listing Regulations.

The Company has received declarations from all the Independent Directors confirming that they meet/ continue to meet, as the case may be, the criteria of Independence under sub-section (6) of section 149 of the Act and Regulation 16(1) (b) of the SEBI Listing Regulations.

Also, the Independent Directors have complied with the Code for Independent Directors prescribed in Schedule IV of the Act and have confirmed that they are in compliance with the Code of Conduct for Directors and Senior Management personnel formulated by the Company.

All the Independent Directors of your Company have submi ed their declaration of independence, as required, pursuant to the provisions of Section 149(7) of the Act and Regulation 25(8) of the Listing Regulations, stating that they meet the criteria of independence, as provided in Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations and are not disqualified from continuing as Independent Directors of your Company. Further, veracity of the above declarations has been assessed by the Board, in accordance with Regulation 25(9) of the Listing Regulations.

The Board is of the opinion that the Independent Directors of the Company hold highest standards of integrity and possess requisite qualifications, expertise & experience (including the proficiency) and competency in the business & industry knowledge, financial expertise, digital & information technology, corporate governance, legal and compliance marketing & sales, risk management, leadership & human resource development and general management as required to fulfill their duties as Independent Directors.

Further, in terms of Section 150 of the Act read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, all the Independent Directors have confirmed that they have registered themselves with databank maintained by the Indian Institute of Corporate Affairs ("IICA"). These declarations/ confirmations have been placed before the Board. The Independent Directors are also required to undertake online proficiency self assessment test conducted by the IICA within a period of 2 (Two) years from the date of inclusion of their names in the data bank, unless they meet the criteria specified for exemption.

The Company's policy on directors' appointment and remuneration, including criteria for determining qualifications, positive a ributes, independence of a director and other ma ers provided under sub section (3) of Section 178 of the Act, as is adopted by the Board.

The Company has adopted a comprehensive policy on nomination and remuneration of Directors and Key Managerial Personnel on the Board. As per such policy, candidates proposed to be appointed as Directors and Key Managerial Personnel on the Board shall be first reviewed by the Nomination and Remuneration Commi ee in its duly convened Meeting. The policy can be accessed at the following Link: h ps://www.sircapaints.com/ investors/#policies

The Board of the Company and its Commi ees meet at regular intervals to discuss, decide and supervise the various business policies, business strategy, Company's performance and other statutory ma ers. During the year under review, the Board has met Ten times. The details of the meeting of the Board and its Commi ees are given in the Corporate Governance Report, which forms part of this Report. The intervening gap between two Board Meetings did not exceed 120 days.

The Board had duly constituted following Commi ees, which are in line with the provisions of applicable laws:

A. Audit Commi ee

B. Nomination and Remuneration Commi ee C. Corporate Social Responsibility Commi ee D. Stakeholders' Relationship Commi ee E. Risk Management Commi ee

Details of the composition of the Commi ees and changes therein, terms of reference of the Commi ees and other requisite details are provided in the Corporate Governance Report, which forms part of this Annual Report.

The salient features of the Nomination and Remuneration Policy of the Company are set out in the Corporate Governance Report which forms part of this Annual Report.

The said Policy of the Company, inter alia, provides that the Nomination and Remuneration Commi ee shall formulate the criteria for appointment & Re – appointment of Directors on the Board of the Company and persons holding senior management positions in the Company, including their remuneration and other ma ers as provided under Section 178 of the Act and Listing Regulations.

Pursuant to the provisions of the Act and the SEBI Listing Regulations, Annual evaluation of the Board, its committees and individual directors has been carried out on the basis of Guidance Note on Board Evaluation issued by Securities and Exchange Board of India ("SEBI").

Questionnaire forms were circulated to all the directors for their feedback on Board, Board Commi ees and director evaluation. A meeting of the independent directors was held on March 29, 2023 where they reviewed and discussed the feedback on the functioning of the Board, Board Commi ees, Chairman and other directors. The Board reviewed and discussed the feedback of the evaluations. The area of improvements as highlighted by the evaluation exercise has been implemented to further strengthen the corporate governance of the organization

Pursuant to Schedule IV to the Act and SEBI Listing Regulations one meeting of Independent Directors was held during the year i.e. on March 29, 2023, without the a endance of non-independent Directors and members of Management.

In addition, the Company encourages regular meetings of its independent directors to update them on Strategies of the Company. At such meetings, the Head of the Departments of the Company make presentations with respect to the Business Vertical which they are heading. Such Meeting was conducted on March 29, 2023

The Company has in place a structured induction and familiarization programme for all its directors including the Independent Directors. They are updated on all business related issues and new initiatives. They are also invited in management level business review meetings so as to step back and assist the executive management. They are also informed of the important policies of the Company including the ‘Code of Conduct for Directors and Senior Management Personnel' and the ‘Code of Conduct for Prevention of Insider Trading'.

The Equity Shares of the Company are listed on National Stock Exchange of India Limited (‘NSE') and the BSE Limited (‘BSE'). The due annual listing fees for the financial year 2023-24 has been paid to the Stock Exchange i.e. NSE & BSE

The Company was listed on National Stock Exchange of India Limited (‘NSE') and got listed on BSE Limited (‘BSE') w.e.f. December 12, 2022. It was also apprised the shareholders on the same day.

Pursuant to the requirement of Section 134 (3) (c) read with Section 134(5) of the Companies Act, 2013 with respect to directors' responsibility statement, your directors hereby confirm that:

(a) In the preparation of the annual accounts for the financial year ended March 31, 2023, the applicable Accounting Standards and Schedule III of the Companies Act, 2013, have been followed and there are no material departures 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 give a true and fair view of the state of affairs of the Company as at March 31, 2023 and of profit and Loss of the Company for the financial year ended March 31, 2023;

(c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Company

Act, 2013 for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;

(d) The Directors have 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;

(f) 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.

Management Discussion and Analysis as stipulated under the Listing Regulations is presented in a separate section forming part of this Annual Report. It speaks about the overall industry structure, global and domestic economic scenarios, developments in business operations/ performance of the Company's various businesses viz., decorative business, international operations, industrial and home improvement business, internal controls and their adequacy, Risk, threats, outlook etc.

The Company re-afirms its commitment to the standards of corporate governance. This Annual Report carries a Section on Corporate Governance and benchmarks your Company with the relevant provisions of the Listing Regulations.

Pursuant to the Listing Regulations, as amended, a certificate obtained from a Practicing Company Secretary certifying that the Directors of the Company are not debarred or disqualified from being appointed or to continue as directors of the companies by the Securities and Exchange Board of India/Ministry of Corporate Affairs, forms part of the report as Annexure-A.

A Certificate of the CEO and CFO of the Company in terms of Listing Regulations, inter-alia, confirming the correctness of the financial statements and cash flow statements, adequacy of the internal control measures and reporting of ma ers to the Audit Commi ee, is also annexed.

As on March 31, 2023, the Company has one (1) Subsidiary Company, namely Sirca Industries Limited. Pursuant to Section 129 (3) of the Act read with Rule 5 of Companies (Accounts of Companies) Rules 2014 and Ind - AS 110 issued by the Institute of Chartered Accountants of India, Consolidated Financial Statements presented by the Company include the financial statements of its subsidiary.

A statement containing the salient features of the financial statement of Subsidiary in the prescribed format AOC-

1 is a ached as Annexure–B to this report. Further, the Company does not have any Associate, Joint Ventures, hence no information in this regard is required to be furnished

In terms of provisions of Section 136 of the Act separate audited accounts of the subsidiary Companies shall be available on the website of the Company at h ps://www. sircapaints.com/

The duly audited Consolidated Financial Statements as required under the Indian Accounting Standard 110, provisions of Regulation 33 of the Listing Regulations and Section 136 of the Act have been prepared after considering the audited financial statements of the Company's subsidiary and appear in the Annual Report of the Company for the year 2022-23.

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company at its meeting held on March 29, 2023 had appointed M/s Jatin Aggarwal & Associates, Practicing Company Secretaries to undertake the Secretarial Audit of the Company for the Financial Year 2022-23. The Secretarial Audit Report is annexed herewith as Annexure-C.

Further, in terms of the provisions of the Circular No. CIR/ CFD/CMD1/27/2019 dated February 8, 2019 issued by Securities and Exchange Board of India, the Company has obtained the Annual Secretarial Compliance Report for the financial year ended March 31, 2023, confirming compliance of the applicable SEBI Regulations and circulars/ guidelines issued thereunder, by the Company.

The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

M/s Rajesh Kukreja & Associates, Chartered Accountants (FRN: 004254N) was re-appointed as Statutory Auditors of your Company at the Annual General Meeting held on July 25, 2022, for a term of five consecutive years.

The Independent Auditors Report given by the Auditors on the financial statement (Standalone and Consolidated) of your Company forms part of this Annual Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report

In terms of the Section 148 of the Act read with Companies (Cost Records and Audit) Rules, 2014, the Company is required to maintain cost accounting records and get them audited every year from Cost Auditor and accordingly such accounts and records are made and maintained by the Company.

The Board of Directors appointedM/s PAN & ASSOCIATES, Cost Accountants, (Firm Registration Number 003692), as Cost Auditors to audit the cost accounts of your Company for the Financial Year 2022-23. The Cost Audit Report for the FY 2022-23 will be filed with the Ministry of Corporate Affairs, in due course.

M/s S Mahajan & Co. (FRN: 033060N), Chartered Accountants was re-appointed as Internal Auditor of the Company at the Board Meeting held on June 20, 2022, to conduct the Internal Audit for the Financial Year 2022– 23.

During the period under review, M/s S Mahajan & Co., performed the duties of internal auditor of the Company and his report is reviewed by the Audit Commi ee.

As part of its initiatives under Corporate Social Responsibility (CSR), the CSR Commi ee has been entrusted with the prime responsibility of recommending to the Board about Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the Company as specified in Schedule VII of Companies Act, 2013, the amount of expenditure to be incurred on CSR activities and monitoring the implementation of the framework of the CSR Policy.

The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company as adopted by the Board and the initiatives undertaken by the Company on CSR activities during the year under review are set out in Annexure-D of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. For other details regarding the CSR Commi ee, please refer to the Corporate Governance Report, which is a part of this report. The CSR policy is available on h ps:// www.sircapaints.com/investors/#policies

The Business Responsibility and Sustainability Report as required in terms of the provisions of Regulation 34(2)(f) of the SEBI Listing Regulations, separately forms part of this Annual Report.

The Company's internal financial control systems are commensurate with its size and nature of its operations and such internal financial controls are adequate and are operating effectively. The Company has adopted policies and procedures for ensuring orderly and efficient conduct of the business. These controls have been designed to provide reasonable assurance regarding recording and providing reliable financial and operational information, adherence to the Company's policies, safeguarding of assetsfromunauthorizeduseandpreventionanddetection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.

Pursuant to Sections 92(3) and 134(3)(a) of the Act and Rule 12(1) of the Companies (Management & Administration) Rules, 2014, the Annual Return of the Company for FY 2022-23 is available on the website of the Company at: h ps:// www.sircapaints.com/

The Board of Directors of the Company has constituted a Risk Management Commi ee to frame, implement, and monitor the risk management plan for the Company. The Commi ee is responsible for reviewing the risk management plan and its effectiveness. The Company has Risk Management Policy which can be accessed on Company's website h ps://www.sircapaints.com/

In order to provide a mechanism to employees of the Company to disclose any unethical and improper practices or any other alleged wrongful conduct in the Company and to prohibit managerial personnel from taking any adverse action against those employees, the Company has laid down a Vigil Mechanism also known as Whistle Blower Policy to deal with instance of fraud and mismanagement, if any. The details of the Vigil Mechanism or Whistle Blower Policy is explained in the Corporate Governance Report and also posted on the website of the Company.

There are no applications made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year

No significant or material orders were passed by the Regulators or Courts or Tribunals which will impact the going concern status and Company's operations in future.

The particulars of loans, guarantees and investments have been disclosed in the financial statements which forms part of this Annual Report.

The Company has always been commi ed to good corporate governance practices, including in ma ers relating to Related Party Transactions (RPTs). Endeavour is consistently made to have only arm's length transactions with all parties including Related Parties. The Board of Directors of the Company had adopted the Related Party Transaction Policy regarding materiality of related party transactions and also on dealings with Related Parties in terms of Regulation 23 of the Listing Regulations and Section 188 of the Act. The policy is available at the following weblink: h ps://www.sircapaints.com/investors/#policies

In terms of the provisions of Section 188(1) of the Act read with the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 23 of the SEBI Listing Regulations, all contracts/ arrangements/ transactions entered into by the Company with its related parties, during the year under review, were in the ordinary course of business of the Company and on an arm's length basis. Details of particulars of contracts or arrangements with related parties referred to in sub-section (1) of Section 188 of the Act in form AOC-2 has been enclosed as Annexure–E to the Director's Report as required.

For details on Related Party Transactions, you may refer Notes to financial statements forming part of this Annual Report.

The details required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are annexed as Annexure-F and forms part of this report.

Further, as required under the provisions of Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the name and other particulars of employees are set out in Annexure-G and forms part of this report.

Environmental sustainability is embedded in the Sirca Environmental policy which reflects that the Company pursues the path of Industrial development in harmony with the environment. As part of long-term sustainability, your Company ensures that the products, packaging and operations are safe for employees, consumers, stakeholders and the environment. Your Company ensures this with a focus on technologies, processes and improvements that ma er for the environment. As an organization, your Company is commi ed to the goal of sustainable and inclusive growth.

The Company's manufacturing units are ISO 9001 quality management system, ISO 14001 Environment Management System, ISO 45001, Occupational Health and Safety.

The Company measures progress in energy management through various key indicators of specific power consumption, specific fuel consumption, percentage outage, power cost, power losses etc.

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 as follow:

The manufacturing units of the Company have continued their efforts to reduce their energy consumption and the plants of Nathupur and Nathupur-II nearby Sonipat, Haryana have also followed the suit.

1. Some of the key measures taken by all the manufacturing plants are as below:

Use of Energy efficient motors for all new projects.

Pressure based pumping system for utility pumping.

Elimination of compressed air in packing for vacuum application.

Use of Energy Efficient aluminum Air piping solution to reduce friction losses.

LED lighting for all plants.

Utility using electric pallets to save fuel and run with the clean solar energy.

STP treated water reused for gardening/ toilet flushing.

ETP treated water reused for utility make-up.

Stripping water recycling in tanker cleaning.

Air Dust Collector to clean the environment inside factory.

Fume suction system to recover and remove the hazardous fumes from the factory environment.

All the utilities are noise free pollution.

2. Alternate Sources of Energy

Sirca Paints initiated plans to install Solar panels in roof, under outsourced model, which was dismantled due to an unfortunate fire incident occurred in the Factory premises.

Replacement of high power consuming conventional lights with LED Lights.

1. Specific areas in which R&D carried out by the Company: a) New products development in wood coating.

b) Anti-bacterial paint for interior wall application.

c) Development of direct to metal finishes for general industries

d) Collaborative work with academic institutions and vendors and customers

e) Competitor sample evaluation and benchmarking

f) Support to customers for smooth introduction of new shades & products on running production line g) Innovative shade development & color forecasting for OEM industry

h) Training to customers on paint Technology & Application to upgrade knowledge & skill

i) Upgradation of processes for cycle time reduction and energy saving

j) High solid resin

Development of new products for different applications.

Polyester paint for interior-exterior application.

Low cost exterior with gloss, rich look and smoother finish.

Economy exterior emulsion which is resistant to chalking, flaking, fading and prevent fungi and algae growth.

Quick drying, anti-rust, anti-yellowing durable coating system.

Economical elastomeric base coat.

Polyurethane coating with extended durability and weather ability.

Mono coat polyurethane finish with higher productivity and energy savings for GI.

Direct to metal finish for auto and GI sector.

Moisture cured heat resistance coating for GI.

High Solid Acrylic Polyol coatings for wood and metals.

Glass coating development for decorative and industrial purpose

Acrylic coating for decorative and industrials sector.

To develop new products based on advanced technology as per anticipated market need. Special focus will continue towards developing safe and user friendly products with superior performance.

YouCompanyhas,enteredintoanexclusiveManufacturing license Agreement with Sirca S.P.A (Italy) dated April 3, 2023 to manufacture 10 different Polyurethane wood coating products in India, which were earlier imported from Sirca S.p.A (Italy) by the Company.

Further, the aforesaid products roughly make up 50-55% of the Company's total sales, Sirca S.p.A (Italy) will be providing the technical know-how to the Company in order to manufacture these products as per the Italian quality standards, moreover, Sirca S.p.A (Italy) will also be supplying the Company with the key raw material i.e., resins, for manufacturing these products in India for the first 3 months, post that these resins will be produced/procured in India.

This strategic initiative will allow the Company to cut down on its import bill and inventory days of finished goods, increase its manufacturing in India, and strengthen its operations.

In line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("POSH Act"), the Company has adopted a "Policy on Appropriate Social Conduct at Workplace". The Policy is applicable for all employees of the organization, which includes corporate office, manufacturing locations, branches, depots, etc. The Policy is applicable to non-employees as well i.e. business associates, vendors, trainees etc.

The Company has complied with provisions relating to the constitution of Internal Complaints Commi ee under the POSH Act to redress complaints received on sexual harassment as well as other forms of verbal, physical, wri en or visual harassment.

During the year under review, the Company did not receive any complaints of sexual harassment and no cases were filed under the POSH Act.

During the year under review, The Company was not required to transfer any funds to Investor Education and Protection Funds (IEPF).

During the financial year under review the Company does not have any stock option plan in force

The Company believes in creating an enabling environment for employees to grow and contribute to its overall objective. The employees are provided with adequate learning and development opportunities to sharpen their skillset and drive the performance of the Company. The Company engages with the employees across platforms to strengthen employee stickiness. As on March 31, 2023, the Company has 486 permanent employees.

The securities of the Company have not been suspended from trading of the stock exchange.

There are no such events occurred during the period from April 1, 2022 to March 31, 2023, thus no valuation is carried out for the one-time se lement with the Banks or Financial Institutions.

Pursuant to Regulation 32 of SEBI Listing Regulations, The Directors of the Company confirm that there has been no deviation(s)/variation(s) in the use of proceeds from the Objects stated in the Prospectus for the FY 2022-23.

Further, As on March 31, 2022 the Company has utilized 7,791.36 Lakhs out of total IPO proceeds amounting to 7,791.36 Lakhs ("total IPO proceeds"), which constitutes 100% of total IPO proceeds.

The Board of Directors would like to express their sincere appreciation for the assistance and co-operation received from the financial institutions, banks, Government authorities, customers, vendors and members during the year under review. The Boards of Directors also wish to place on record its deep sense of appreciation for the commi ed services by the Company's executives, staff and workers.