To,

The Members,

Clara Industries Limited

Your directors have pleasure in presenting the First Annual Report together with the Audited Statements of Accounts of the Company on Stand-alone basis for the year ended on March 31, 2022.

FINANCIAL RESULTS:

The Company's financial performance, for the year ended on March 31,2022 is given in the table below:

- STATE OF THE COMPANY'S AFFAIRS:

Your Company is primarily engaged in the business of manufacturing of LDPE, HDPE, PP, BOPP, ADHESIVE TAPES and its related products and activities and also to carry on the business of Manufacturers and traders of Plastic Bags, Industrial Packaging SELF ADHESIVE TAPES, PRINTING AND PLAIN MULTI LAYERED FLEXIBLE PACKAGING, MANUFACTURER OF PP PLASTIC MATS, TWINE AND ROPES.

The Total revenue of the Company stood at Rs.387.31 Lacs for the year ended March 31, 2022. The Company made a Net Profit of Rs.105.06 Lacs for the year ended March 31, 2022.

The company in spite of many challenges and competitive market conditions was able to achieve satisfactory Sales and Net Profit (After Tax) figures. The management is of the opinion that in the coming future as the overall situation seems to be improving and Directors are optimistic about Company's business and hopeful of better performance with increased revenue in next year.

There has been no change in the business of the Company during the financial year ended March 31, 2022

- CAPITAL STRUCTURE:

The authorized share capital of the company is Rs 2,50,00,000/- (Rupees Two Crore Fifty Lakh) divided into 25,00,000 Equity Shares of Rs 10/- each.

The Company has allotted shares to Ms. Parry Kukreja pursuant to acquisition of M/s Clara Petrochemicals via a Business Transfer Agreement on November 10, 2021 and allotted 87,140 shares having face value of Rs. 10 each at Rs.75 each

The Company has made preferential issue of its shares on November 17, 2021 and allotted 1,17,000 shares having face value of Rs. 10 each at Rs.75 each.

Company has come up with an IPO of 7,02,000 equity shares of face value of Rs. 10 each ("equity shares") of Clara Industries Limited (the "company" or the "issuer") for cash at a price of Rs. 43.00 per equity (the "issue price") aggregating to Rs.301.86 Lakhs ("the issue") with effect from December 24, 2021.

As on March 31, 2022, the issued, subscribed and paid-up share capital of your Company stood at Rs. 2,48,09,800 comprising 24,80,980 Equity shares of Rs. 10.00 each.

a CHANGE IN DIRECTORSHIP:

There has been following notable changes in the constitution of Board during the year under review i.e., Financial Year 2021-2022.

1. Ms. Parry Kukreja (DIN: 06649401) was appointed as Managing Director of the company with effect from September 28, 2021 .

2. Mr. Nikhil Kukreja (DIN: 06649387) was appointed as Executive Director of the Company with effect from September 28, 2021.

3. Mr. Nikhil Kukreja (DIN: 06649387) appointed as Chief Financial Officer of the Company with effect from September 28, 2021.

4. Ms. Priyanka Mediratta (DIN: 09303974) was appointed as Non-Executive Director of the Company with effect from September 28, 2021.

5. Mr. Manmohan Singh (DIN: 07790507) was appointed as independent Director of the Company with effect from September 28, 2021.

6. Mr. Ajay Kumar Jain (DIN: 01408067) was appointed as independent Director of the Company with effect from September 28, 2021.

7. Mr. Anurag Saharawat having Membership No. 66170 was appointed as Company Secretary and Compliance Officer with effect from September 28, 2021.

8. Ms. Isha Sachdeva (DIN: 09303975) resigned from the directorship of the Company with effect from September 8, 2021.

10 Ms. Shanti Rani (DIN: 09303976) resigned from the directorship of the Company with effect from September 8, 2021

None of the Directors of the Company is disqualified for being appointed / re-appointed as directors of the company as per the provisions of Section 164 of the Companies Act, 2013.

- CHANGES IN NATURE OF BUSINESS

There is no significant change made in the nature of the company during the financial year

- PARTICULARS OF EMPLOYEES:

No employee in the Company was in receipt of remuneration in excess of the amount mentioned

Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

- DIVIDEND:

The Board of Directors of your company has not declared any Dividend for the current financial year.

- PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATEDPARTY TRANSACTIONS:

The particulars of contracts or arrangements with related parties referred to in Section 188 (1) entered by the Company during the financial year ended March 31, 2021 is annexed hereto in prescribed Form AOC-2 as Annexure-A and forms part ofthis report.

- DETAILS OF SUBSIDIARY / HOLDING / JOINT VENTURE / ASSOCIATECOMPANIES:

The details of Subsidiary / Holding / Joint Venture / Associate Companies have been disclosed in point III of MGT-9 is annexed hereto as Annexure- B and forms part of this report.

- EXTRACT OF ANNUAL RETURN:

Pursuant to section 134(3)(a) and section 92(3) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, a copy of the annual return is placed on the website of the Company and can be accessed at https://clara.co.in/annual-reports/.

- RESERVES:

The Accounting Standards permit that the amounts in the Profit after tax stands are included in the Reserve & Surplus Schedule; hence the Company has not transferred any amount to its General Reserves.

DETAILS OF SUBSIDIARY/JOINT VENTURES/ASSOCIATE COMPANIES (IF ANY)

Your Company has no subsidiary Company, Joint Ventures or Associate Companies during the year under review.

- MEETINGS OF BOARD OF DIRECTORS:

The Board of Directors met 14(Fourteen) times during the year under review that is on 03,09.2021, 09.09.2021, 27.09.2021, 2020,18.10.2021, 29.10.2021, 10.11.2021, 15.11.2021, 17.11.2021.20.11.2021.22.11.2021, 23.11.2021, 27.11.2021,01.12.2021, 24.12.2021. The maximum gap between any two Board Meetings was less than one Hundred and Twenty days.

The names of members of the Board, their attendance at the Board Meetings are as under:

BOARD COMMITTEES:

There are four Committees constituted as per Companies Act, 2013. They are:

A. Audit Committee

B. Nomination & Remuneration Committee

C. Shareholders & Investor's Grievance Committee

D. Internal Complaint Committee

The composition of various committees is as follows:

AUDIT COMMITTEE

NOMINATION AND REMUNERATION COMMITTEE

STAKEHOLDERS RELATIONSHIP AND INVESTOR GRIEVANCE COMMITTEE

INTERNAL COMPLAINT COMMITTEE

- DIRECTORS' RESPONSIBILITY STATEMENT:

i. To the best of their knowledge and belief and according to the information and explanation obtained by them, your

Directors make the following statements in terms of the Section 134(3)(c) of the Companies Act, 2013.

ii. That in the preparation of the annual financial statements for the year ended March 31, 2021, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

iii. That such accounting policies, as mentioned in the Financial Statements as ‘Significant Accounting Policies' have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at March 31, 2021 and of the profit of the Company for the year ended on that date;

iv. That proper and sufficient care has been taken 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;

v. That the annual financial statements have been prepared on a going concern basis.

vi. That proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.

vii. That proper system to ensure compliance with the provisions of all applicable laws was in place and was adequate and operating effectively.

- STATUTORY AUDITORS:

M/s. Gupta Agarwal & Associates, Chartered Accountants, having FRN 329001E was appointed as Statutory and Peer Review

Auditor in Board Meeting held on September 27, 2021 till the upcoming Annual General Meeting.

M/s. Gupta Agarwal & Associates (FRN- 329001E), Chartered Accountants, Statutory Auditors of the Company hold office till the ensuing Annual General Meeting and being eligible, have expressed their willingness to continue, if so appointed. As required under the provisions of sections 139 and 141 of the Companies Act, 2013, your Company has received a written certificate from the Statutory Auditors proposed to be re-appointed to the effect that their re-appointment, if made, would be in conformity with the limits specified in Section 141.

If appointed, the firm will hold the office of Statutory Auditors from the conclusion of this AGM for a term of five (5) years.

- SECRETARIAL AUDITORS

The Board had appointed M/s. Verma Ashish & Co. (Membership No. 59867), Practicing Company Secretary, to carry out secretarial audit Pursuant to provision of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The Secretarial Audit report is annexed herewith as "Annexure 1"

- BOARD'S COMMENT ON THE AUDITORS' REPORT:

The Statutory Auditors Report for Financial Statement on Standalone basis for the financial year 2021-2022, when read together with the relevant notes to the accounts and accounting policies was self-explanatory and do not call for any further comment

- PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

The company has not given any loans or guarantees or investments covered under the provisions of section 186 of the Companies Act, 2013 during the Financial Year 2021-22.

- MATERIAL CHANGES:

Except as stated below there have been no material changes and commitments, which affect the financial position of the company which have occurred between the end of the financial year to which the financial statements on Standalone basis relate and the date of this Report.

Company had filed Draft Prospectus with SME platform of BSE Limited on November 29, 2021 and received In Principle approval on December 10, 2021. Latter Company had filed Prospectus with SME platform of BSE Limited on December 11, 2021 and got listed on December 28, 2021.

- CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 in respect of conservation of energy and technology absorption have not been furnished considering the nature of activities undertaken by the company during the year under review and hence are not required to be given.

The Company has not entered into any technology transfer agreement and also there are no foreign currency earnings and outgo during the financial year.

- RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM

The Company has established a well-defined process of risk management, wherein the identification, analysis and assessment of the various risks, measuring of the probable impact of such risks, formulation of risk mitigation strategy and implementation of the same takes place in a structured manner. Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company. The Company on various activities also puts necessary internal control systems in place across the board to ensure that business operations are directed towards attaining the stated organizational objectives with optimum utilization of the resources.

- DEPOSITS:

During the year under review your company has not accepted any deposits from the public and therefore no information is required to be furnished in respect of outstanding deposits.

- DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS, COURTS AND TRIBUNALS:

There are no significant and material orders passed by the Regulators/Courts, which would impact the going concern status of the Company and its future operations.

ADEQUACY OF INTERNAL FINANCIAL CONTROLS

Your Company has an effective internal financial control and risk-mitigation system, which are constantly assessed and strengthened with new/revised standard operating procedures which also covers adherence to the Company's Policies for safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of accounting records and timely preparation of reliable financial disclosures. The Company's internal financial control system is commensurate with its size, scale and complexities of its operations.

- CORPORATE GOVERNANCE

The Company being listed on the Small and Medium Enterprise Platform is exempted from provisions of corporate governance as per Regulation 15 of Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulation, 2015. Hence no corporate governance report is disclosed in this Annual Report. It is Pertinent to mention that the Company follows Majority of the provisions of the corporate governance voluntarily.

- COST AUDITOR:

The company does not fall under the criteria specific in Section 148 of the Companies Act, 2013 and hence the provisions of cost auditor appointment and maintenance of cost records are not applicable.

- DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013:

The company is committed to provide a work environment free from all forms of discrimination, including sexual harassment. The Company Recognizes that sexual harassment of employees violates their right to work in a respectful and stress-free environment with dignity.

There were no complaint received / pending under the provision of sexual Harassment of women at workplace (Prevention, Prohibition & Redressal) Act, 2013.

- ACKNOWLEDGEMENT:

Your Directors take this opportunity to express their gratitude to Ministry of Corporate Affairs and other agencies of Central and State government for their kind support and guidance.

Your Directors also wish to place on record their appreciation for the dedicated efforts put in by the employees of the Company at all levels who have contributed to the growth and performance of your Company.

Your Directors also thank the clients, vendors, bankers and advisers of the Company for their continued support.

In conclusion, your Directors thank you, the members of the Company for your support and seek your continued patronage for achieving better results.