To the Members of Thangamayil Jewellery Limited

The Directors are pleased to present the 26th Annual Report and the Audited Statement of Accounts for the year ended 31st March 2026:

1) FINANCIAL RESULTS

' in Lakhs

The year 25-26 witnessed heavy fluctuations in Gold and Silver prices almost on a regular basis specifically in the second half of 25-26. A steep unstopped monthly increase of gold & silver prices created issue on the affordability of resources in the hands of the customer. This up normal price escalation resulted in,

a. Marginal drop in volume in SSS outlets.

b. Larger arrival of old gold for new jewellery exchanges.

c. Substantive funding requirements for hedged inventory for both margin wise and MTM calls,

d. Uneven offtake in market place compelled by uncertainties prevailed,

e. Geo-political continued difficulties particularly of IRAN war in West Asia contributed to uncertainties in the Jewellery trade.

In this backdrop, your Company managed to better its results in all financial parameters with the help of shift in pricing strategy and adoption of tech based tools for better revenue growth. Though, the revenue increase was attribute to gold & silver price escalation the Chennai Metro penetration at the right time also significantly contributed to our improved performance.

In spite of enlarged outlay on advertisement and promotional expenses, the PAT improved to Rs. 35,165 lakhs as against Rs.11,871 lakhs registering a growth of 196%.

Both Revenue & PAT were the highest in the history of the Company. It was made possible partly to resounding success in the new areas - Chennai Metro & surroundings and also due to better contribution from non-gold segment besides positive impact on the elevated gold & silver price prevailed.

EXPANSION OF RETAIL OUTLETS

In the FY 25-26, the Company opened 10 outlets at an outlay of Rs.78,298 lakhs Crores funded by all the major three sources - equity infusion, customer advances and bank borrowings. It is heartening to note that the Chennai Division has contributed to nearly 20% of total Revenue on annualized basis and promising to move up in the ladder on completion of second phase of expansion to 25% in FY 27-28.

In the light of successful penetration to Chennai market, the company planned to open at least nine outlets in FY 26-27 for which initial civil / interior works are on. The entire expansion phase II will be completed by 31/12/2026. The fund needed both for Capex and working capital requirements are already tied up.

We wish to state that our funding rationale of 1/3 of equity, customer advances and bank borrowings will be respected in our expansion plan as well. The Company has already obtained necessary sanctions from member bankers up to ' 1,412 Crores as working capital facilities that is sufficient in the current context to complete our expansion plan-II in Chennai Metro & surrounding areas.

PERFORMANCE OF EXISTING OUTLETS

All retail outlets are EBITDA positive including the newly opened Chennai Metro outlets. Even after providing for Head office amortization expenses, all the outlets are making PBT profits.

You may also note that our last 5 years CAGR growth in Revenue at 40% and in PAT at 74% . This consistency in performance well above the industry normal was made possible with effective inventory/ liquidity management and cost effective model of delivery.

2) Dividend

The Board of Directors at their meeting held on 15th May, 2026, has recommended payment of 18.00/- (Rupees Eighteen Only) (180%) per equity share of the face value of 10 (Rupee ten only) each as dividend for the financial year ended 31st March, 2026. The payment of dividend is subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company. If approved, total dividend payout for the FY 2025-26 amounting to ' 5,594.76 lakhs as against the total dividend payout for the FY 2024-25 amounting to ' 3,885.25 lakhs. The Board has proposed to transfer a sum of '3,516 lakhs to the General Reserves Account.

Refer for Dividend Distribution policy.

3) SHARE CAPITAL

The share capital of the Company is at Rs. 3108 lakhs comprising 3,10,82,021 no of equity shares at a face value of Rs.10/- each.

4) HEDGING

The company has got a well-defined operative "Hedging" mechanism in place. The metal loan availed from banks and the advances received from customers for future delivery objectives are covered under natural hedge against gold price fluctuations. A portion of other inventories is also hedged with MCX platform by paying margin and meeting day-to-day MTM (marked to market) obligations.

This is done based on daily sales criteria. In aggregate, the hedging is at 95% as against 96% of last year. You may note that in the last five years, the hedging portion is progressively improved. We are fully committed to hedging in the prevailing volatility in gold price behavior. The company is fully confident on sustaining the operating profit as per the goals set.

Portion of gold metal is hedging in our inventory.

5) FINANCE

The required working capital for the current year based on the estimates done, the company is fully supported by various sources of finance.

The secured working capital outstanding borrowings of the company as at 31st March 2026 stood at ' 70,449 lakhs as against ' 60,291 lakhs of the previous year. The aggregate working capital facilities from multiple banking arrangement is at ' 130,700 lakhs. The current drawing power covers the sanctioned limits fully.

The eligible fixed deposits limit from public & shareholders is at ' 38,582 lakhs . However, the company took only ' 7,316 lakhs. Overall Interest outflows have increased marginally due to improved utilization of working capital borrowings caused by hedging MTM requirements and also due to steep increase in metal loan servicing cost up to 5% as against 2.5% in last year. For the current year 26-27, slowly metal loan interest rate is coming down. Based on the likely offtake post second phase expansion, the blended cost of external funding will be 5.5% to 5.75% per annum.

6) CONTINUING CHALLENGES

a. Though gold and silver prices stabilized and currently settled at lower level, the steep increase impact up to 58% in gold and 204 % in silver even current prices affects the business as customers affordability could not match the steep rise in prices.

b. Due to highly working capital intensive model aggravated by steep rise in gold and silver prices, PAT less dividend cash available in the system is not commensurate to the incremental working capital requirements.

c. High level of competitive intensity.

d. Exceptional substantial allocation of capital is required for huge advertisement and publicity to improve the visibility and recall factors associated with brand building exercise required for expansion in places where the brand is not familiar.

e. Huge leverage backed demand for other consumption based discretionary expenses due to emergence of aspirational class in population.

7) FUTURE PROSPECTS

a. Completion of second phase of Chennai division expansion of outlets.

b. Improve revenue and EBITDA contribution from non-gold segment.

c. Continued support from customer advances portfolio (pre-sale)

d. Optimum utilization of brand equity built and opening of new Metro outlets and in SSS outlets also.

e. Model is redesigned to accumulate the absolute contribution concept as against universally followed maximization of unit realization concept generally followed by the trade;

f. Make use of all synergies available in the system to continue the delivery at most cost effective manner;

g. Better amortization of "Fixed costs" on enlarged retail sales.

h. Maintaining a larger unutilized reserves to take advantages thrown open by the fluctuating / uncertain eco system.

i. Improved product mix in value terms of high contribution items.

j. Honourable Prime Minister, in recent days made an appeal to general public to defer purchase of gold jewellery in order to reduce current account deficit (forex). Followed by his assertion, Govt of India on 13/05/2026 by notification increased the import duty with immediate effect for gold & silver from 6% to 15%. This may have an impact on the demand for gold & silver jewellery in coming months in an already sagging demand scenario. However, customers slowly shifted to exchange of gold for new jewellery purchases in the past several months. From a historic average of around 25% currently, the exchange gold sales ranges from 50% to 60% of current sales. We have to wait and see the public reaction to these directives initiated by Govt. of India. The steep rise in import duty by 150% (from 6% to 15%) in gold and silver on actual realization basis may result in "inventory gains" to the company around Rs.60 Crs at current market prices prevailing for gold & silver products.

Except for unforeseen circumstances, the management is confident of bettering the performance in the short to medium of term on the areas prioritized.

8) DEFERRED TAX ASSETS

The company as per Ind AS requirements has created deferred tax assets ' 523 lakhs as against deferred tax assets of ' 400 lakhs of previous year.

The company has recognised provision for Income tax for the year ended and measured its deferred tax basis the rate prescribed in the Act.

9) CONTRIBUTION TO EXCHEQUER

The Company is a regular payer of taxes and other duties to the Government. The Company has paid GST of ' 25,732 lakhs as compared to ' 14,775 lakhs paid in the previous year and the Income tax amounts to ' 10,462 lakhs was paid as against ' 4,983 lakhs for financial year 2024-25.

10) CAPITAL EXPENDITURE

During the year, we capitalized ' 7,797 Lakhs to our gross block comprising ' 7,199 lakhs for Plant & Machinery, Building , Furniture & Fittings and other assets and balance of ' 598 lakhs for Computer Equipment's including Software.

The capital work in progress amount outstanding as on 31st March 2026 is ' 687 lakhs (previous year ' 1,127 lakhs). This comprises of interiors and other assets still to be put in use and are yet to be capitalised.

For the previous year, we capitalized ' 4,941 lakhs to our gross block comprising ' 4,592 lakhs for Plant & Machinery and Furniture & Fittings and others and the balance of ' 349 lakhs for Computer Equipment's including Software.

11) DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SUB-SECTION (12) OF SECTION

143 OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT

The Statutory Auditors of the Company have not reported any fraud as specified under the second proviso of Section 143(12) of the Companies Act,2013 (including any statutory modification(s) or re-enactment(s) for the time being in force).

12) DIRECTORS' RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(5) of the Companies Act, 2013:

a. In the preparation of the annual accounts, the applicable accounting standards had been followed and there is no material departure.

b. 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 the financial year and of the profit and loss of the company for the year;

c. 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;

d. The directors have prepared the annual accounts on a 'going concern' basis;

e. The directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively. Internal financial control means the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business 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

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.

13) MANUFACTURING FACILITIES

Utilisation of own manufacturing facilities including on job work basis is around 81% as against 78% of the earlier years. The overall cost of production has come down due to attainment of scale of economies in the manufacturing facilities. It is expected to improve the own manufacturing capacity utilisation in forthcoming years. On a need basis, at short notice, handmade items capacity could be enlarged.

14) DEPOSITORY SYSTEM

The trading in the Equity Shares of your Company is under compulsory dematerialization mode. As on March 31, 2026, Equity Shares representing 100% of the equity share capital are in dematerialized form. As the depository system offers numerous advantages, members are requested to take advantage of the same and avail of the facility of dematerialization of the Company's shares.

15) CORPORATE GOVERNANCE

Your Company has been practising the principles of good corporate governance over the years and lays strong emphasis on transparency, accountability and integrity.

A separate section on Corporate Governance and a certificate from the statutory auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Regulation 27 of SEBI (LODR) 2015 of the Listing Agreement(s) with the Stock Exchange(s) forms part of this report.

The Chairman and Managing Director and Chief Financial Officer of the Company have certified to the Board on financial statements and other matters in accordance with Regulation 17 (8) of SEBI (LODR) 2015 of the listing agreement pertaining to CEO certification for the financial year ended 31st March 2026.

16) INDEPENDENT DIRECTORS:

The Board of Directors comprise of 8 total number of Directors out of which 4 are Independent Directors (50%) thus fulfilling the requirement of the companies act, 2013 and SEBI(LODR) , 2015. Therefore the composition of Board of Directors is in accordance with the requirements of the act and regulations.

Constitutions of Various Committees

a) Audit committee members:

1. Mr.S.M.Chandrasekaran (Chairman)

2. Mr.N.Jegatheesan

3. Mrs.Rajakumari Jeevagan

4. Mr.Ba.Ramesh

b) Nomination and remuneration committee members:

1. Mr.S.M.Chandrasekaran (Chairman)

2. Mr.N.Jegatheesan

3. Mrs.Rajakumari Jeevagan

4. Mr.Balarama Govinda Das

c) Corporate Social Responsibility committee members:

1. Mr.Balarama Govinda Das (Chairman)

2. Mr.Ba.Ramesh

3. N.B.Kumar

4. Mr.S.M.Chandrasekaran

d) Stakeholders & Grievances Committee members:

1. Mr.S.M.Chandrasekaran (Chairman)

2. Mr.Balarama Govinda Das

3. Mr.Ba.Ramesh

4. N.B.Kumar

e) Risk Management Committee Members:

1. Mr.Balarama Govinda Das (Chairman)

2. Mr.Ba.Ramesh

3. N.B.Kumar

4. Mr.S.M.Chandrasekaran

5. Mr.K.Thirupathi Rajan

17) DISCLOSURE REQUIREMENTS

As per SEBI Listing Regulations, the Corporate Governance Report with the Auditors' Certificate thereon, and the integrated Management Discussion and Analysis including the Business Responsibility and Sustainability Report are attached, which forms part of this report.

18) LISTING OF SHARES

The Equity Shares of your Company continue to remain listed with Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The listing fees for the year 2025-26 have been paid to these Stock Exchanges. The Shares of the companies are compulsorily tradable in dematerialized form.

19) INSURANCE

The assets of the Company are adequately insured against fire and such other risks, as are considered necessary by the Management.

20) HUMAN RESOURCE DEVELOPMENT

Manyinitiativeshavebeentakentosupport businessthroughorganizationalefficiency,development, resourcing,performance & compensation management, competency-based development, career & succession planning and organization building. Leadership development is one of the primary key initiatives of the Company. Primary personal development program has been taken up as long term strategy of the Company. A significant effort has also been undertaken to develop leadership as well as administrative / functional capabilities in order to meet future talent requirement.

The Company continues to maintain pleasant relations without any interruption in work. As on 31st March 2026 the Company has 3,450 employees on its rolls as against 3,086 employees in the previous year.

21) PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

In terms of the provision of Section 197(12) of Act read with rules 5(2) and 5(3) of the Companies ( Appointment and Remuneration of Managerial personnel) Rules, 2014 a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in the Annual Report.

Disclosures pertaining to remuneration and other details as 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 provided in the Annexure -1.

The said information is available for inspection at the corporate office of the Company during working hours and any member interested in obtaining such information may write to the Company Secretary and the same will be furnished on request. The full Annual Report including the aforesaid information is being sent electronically to all those members who have registered their addresses and is available on the Company's website.

22) STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY

Pursuant to section 134 (3) (n) of the Companies Act, 2013 & under regulation 21 of the SEBI (Listing obligations and disclosure requirements) Regulations, 2015, the company has adopted risk management policies to monitor the business.

Business Risk Evaluation and Management (BRM) is an on-going process within the Organization. The Company has a robust risk management framework to identify, monitor and minimize risks as also identify business opportunities.

The objectives and scope of the Risk Management:

1. Overseeing of risk management performed by the executive management;

2. The BRM policy and framework formulated in line with local legal requirements and SEBI guidelines;

3. Risks and evaluate treatment including initiating mitigation actions and ownership as per a pre-defined cycle;

4. Defining framework for identification, assessment, monitoring, and mitigation and reporting of risks.

5. Within its overall scope as aforesaid, the Company shall review risks trends, exposure, and potential impact analysis and mitigation plan.

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

INFORMATION IN ACCORDANCE WITH THE PROVISIONS OF SECTION 134 (3)(M) OF THE COMPANIES ACT, 2013 READ WITH RULE 8(3) OF THE COMPANIES RULES, 2014.

a) Conservation of Energy

The disclosure of particulars with respect to conservation of energy pursuant to Section 134 (3) (m) of the Companies Act, 2013 read with rule 8(3) of the companies (accounts) rules, 2014 are not applicable as our business is not specified in the Schedule . However, the company makes its best efforts to conserve energy in a more efficient and effective manner.

b) Technology Absorption, Adaptation and Innovation

The company has not carried out any specific research and development activities. The company uses indigenous technology for its operations. Accordingly, the information related to technology absorption, adaptation and innovation is reported to be NIL.

c) Foreign Exchange Earning and Outgo

24) ESTABLISHED PROCESS OF MITIGATING RISKS IN TMJL

The Risk management process at TMJL revolves around identification of all risks of internal and external and undertaking risk mitigation measures so that monitoring their impact would be process driven with a view to take corrective course of actions.

Industry Risk

Jewellery industry dominated by gold metal in India and is going through a shrinking phase in the discretionary context of customers priorities for purchases together with wide gold price movements. Business is shifting from unorganized sector to corporates with deep pockets of resources to sustain the cyclical risk impact.

Your company enlarged its wings in semi and rural areas where the existing business is shifting to organized players like us. The shrinking size risk is mitigated by adding value added products in the portfolio and also by selling other popular brands under our umbrella.

Regulatory Risk

The Government has implemented more stringent regulatory measures in all aspects of the trade starting from compliances under various Acts including Income tax and customer friendly Hallmarking, etc., in a speedier manner.

Your company has already adapted to the changes in the trade requirements and in fact would be a beneficiary under GST regulations.

Commodity Risk

Gold being a commodity, price is influenced by various factors including demand and supply. Even though we buy gold whenever we sell on the same day, in order not to carry the risk of price fluctuations, the underlying stock on a given date certainly affected by the price movement. The impact of it either positive or negative often shadowed the real operating capabilities of the company. Your company has an inbuilt hedging mechanism to mitigate the extreme fluctuations in gold price movement. Currently we maintain the ratio of 96:4 between hedged and un-hedged closing stock inventory in any given date. This strategy helped us to maintain our performance, besides ensuring liquidity in the system.

Every aspect, of the risks components mentioned in the earlier paras, were carefully evaluated by the respective teams and reported to Board at intervals to reset the strategies and policies that may tend to be appropriate and re-assuring in the changed realities.

Cost Risk

The brand building and establishment cost increased in recent years due to growth aspirations. New business can be identified by enhancing the visibility of the Brand. It involves a huge cost on a recurring basis even though the positive impact could be seen in later years.

Your Company by taking into advantages of low cost retailer tag has already spent larger sums for advertisement and publicity. This will go a long way in expanding the retail outlets in larger parts of Tamil Nadu and the cost currently incurred would be amortized among larger number of retail outlets in the days to come.

Growth Risk

The industry suffers from the introduction of sovereign gold bond and also by the penetration of "E-commerce" activity in the trade. New territorial expansion often results in burning cash in the form of excessive fixed cost in the earlier years anticipating a sustainable business later that is not guaranteed.

Your Company though strategically decided to grow but restricted its inroads into current territorial places in a deeper and concentrated manner so that fixed cost impact will not be felt by the company as an adverse factor. We opt for Asset less model and therefore the risk of growth in unknown places is mitigated to that extent.

Financial risk

Stretched financials could hamper business sustainability. The Company's gearing as at 31st March 2026 stood at 0.78 times which is among one of the best in the target corporates of the industry.

The company is consistently reducing its high-cost debts and leverage only when it is self-liquidating in nature. All the financial indicators are improving including risk weighted Return on Equity.

However, all our retails outlets expansion plan is going forward smoothly. Our learning out of first wave has helped us to rearrange resources and improve our operating efficiencies.

25) INTERNAL CONTROL SYSTEMS

The Board of Directors is responsible for ensuring that internal financial controls have been laid down in the Company and that such controls are adequate and is functioning effectively. TMJL has policies, procedures, control frameworks and management systems in place that map into the definition of Internal Financial Controls as detailed in the Companies Act, 2013. These have been established at the entity and process levels and are designed to ensure compliance to internal control requirements, regulatory compliance, and appropriate recording of financial and operational information.

Internal Financial Controls that encompass the policies, processes, and monitoring systems for assessing and mitigating operational, financial and compliance risks and controls over related party transactions, substantially exist. The management reviews and certifies the effectiveness of the internal control mechanism over financial reporting, adherence to the code of conduct and Company's policies for which they are responsible and also the compliance to established procedures relating to financial or commercial transactions, where they have a personal interest or potential conflict of interest, if any.

The Audit Division continuously monitors the efficacy of Internal Financial Controls with the objective of providing to the Audit Committee and the Board of Directors, an independent, objective and reasonable assurance on the adequacy and

effectiveness of the organisation's risk management, control and governance processes. The audit plan is approved by the Audit Committee, which reviews compliance to the plan.

During the year, the Audit Committee met regularly to review reports submitted by the Audit Division. All significant audit observations and follow-up actions thereon were reported to the Audit Committee.

The Audit Committee also met the Company's Statutory Auditors to ascertain their views on financial statements, including the financial reporting system, compliance to accounting policies and procedures, the adequacy and effectiveness of the internal controls and systems followed by the Company. The Management acted upon the observations and suggestions of the Audit Committee.

26) DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIAL RESPONSIBILITY INITIATIVES (CSR)

During the financial year ended 31st March, 2026, the Company incurred CSR Expenditure of '289 Lakhs (Rupees two hundred and eighty nine lakhs Only). The CSR initiatives of the Company were under the thrust area of health & hygiene, education, water management and vocational training. The CSR Policy of the Company is available on the website of the Company.

The Company's CSR Policy statement and annual report on the CSR activities undertaken during the financial year ended 31st March, 2026, in accordance with Section 135 of the Act and Companies (Corporate Social Responsibility Policy) Rules, 2014 is set out in Annexure 2 to this report.

27) CORPORATE GOVERNANCE AND BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

In compliance with Regulation 34 of the Listing Regulations, a separate report on Corporate Governance along with a certificate from the Auditors on its compliance and a Business Responsibility Report as per Regulation 34 of the Listing Regulations, detailing the various initiatives taken by the Company on the environmental, social and Governance front forms part of this Annual Report.

28) PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013

There were no loans & guarantees given or investments made by the Company under Section 186 of the Companies Act, 2013 during the year under review.

Particulars of contracts or arrangements with related parties referred to in Section 188(1)

All related party transactions that were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel, or other designated persons which may have a potential conflict with the interest of the Company at large. All Related Party Transactions are placed before the Audit Committee as also in the Board for approval. Prior omnibus approval of the Audit Committee is obtained for the transactions which are foreseen and repetitive in nature.

The Annual Report on related party is annexed herewith as "Annexure 3".

29) COMPANY'S POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES

The Company's Policy relating to appointment of Directors, payment of Managerial remuneration, Directors' qualifications, positive attributes, independence of Directors and other related matters as provided under Section 178(3) of the Companies Act, 2013 is furnished in Annexure -4 and is attached to this report.

30) ANNUAL RETURN

The Annual Return of the Company as on 31st March, 2026 in Form MGT - 7 in accordance with Section 92(3) and Section 134 of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014, is available on the Company's website- .

31) NUMBER OF BOARD MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW

During the year, Eight Board Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.

32) SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company does not have any Subsidiary, Joint venture or Associate Company.

33) DEPOSITS

The details of deposits remain unpaid during the year under review are furnished hereunder:

34) DIRECTORS & KMP

Smt. Yamuna Vasini Deva Dasi Non - executive and Non - Independent Director of the Company retires by rotation and being eligible seeks reappointment. Your Board recommends her re-appointment.

Mr.V.Vijayaraghavan, Company Secretary demised on 16th december 2025, the Board appreciates the services rendered by Mr.V.Vijayaraghavan, during the tenure of his service. Subsequently, Mr.K.Narayanan, has been appointed as Company Secretary and Compliance Officer of the Company with effect from 2nd Feburary 2026.

35) DECLARATION OF INDEPENDENT DIRECTORS

The Independent Directors have submitted their disclosures to the Board that they fulfil all the requirements as stipulated in Section 149(6) of the Companies Act, 2013 so as to qualify themselves to be appointed as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules.

The Details of familiarisation programme arranged for independent directors have been disclosed on website of the company and are available at .

36) CODE OF CONDUCT

The Board of Directors has approved a Code of Conduct which is applicable to the Members of the Board and all employees in the course of day to day business operations of the company. The Company believes in "Zero Tolerance" against bribery, corruption and unethical dealings / behaviours of any form and the Board has laid down the directives to counter such acts. The code laid down by the Board is known as "code of business conduct" which forms an Appendix to the Code. The Code has been posted on the Company's website . The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. The Code gives guidance through examples on the expected behaviour from an employee in a given situation and the reporting structure.

All the Board Members and the Senior Management personnel have confirmed compliance with the Code. All Management Staff were given appropriate training in this regard.

37) STATUTORY AUDITORS

M/s. B. Thiagarajan & Co , Chartered Accountants (ICAI Registration No.: 004371S) ("M/s. BT&Co ") were appointed as Statutory Auditors of the Company, at the 22nd AGM held on 4th August 2022 to hold office till the conclusion of the 27th AGM. BT & Co has confirmed that they are not disqualified from continuing as Auditors of the Company.

The Report given by M/s. B. Thiagarajan & Co Chartered Accountants on the financial statement of the Company for the financial year 2025-2026 is part of the Annual Report. The Notes on financial statement referred to in the Auditor's Report

are self-explanatory and do not call for any further comments. The Auditor's Report does not contain any qualification, reservation, adverse remark or disclaimer. During the year under review, the Auditors had not reported any matter under Section 143 (12) of the Act, therefore no detail is required to be disclosed under Section 134(3)(ca) of the Act.

38) SECRETARIAL AUDITOR

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. S.Muthuraju, a Company Secretary in Practice to undertake the Secretarial Audit of the Company. The Report of the Secretarial Auditor is annexed herewith as "Annexure 5". Mr.S.Muthuraju, have been appointed as Secretarial Auditor at the Annual General Meeting held for the year 2024-25 on 28th July 2025, for a term of 5 years.

39) COMMENTS ON AUDITORS' REPORT

There are no qualifications, reservations or adverse remarks or disclaimers made by B. Thiagarajan & Co, Statutory Auditors, in their report and by Mr. S. Muthuraju , Company Secretary in Practice, in his secretarial audit report.

The Statutory Auditors have not reported any incident of fraud to the Audit Committee of the Company in the year under review.

40) WITH RESPECT TO COST RECORDS MAINTENANCE/COST AUDIT APPLICABILITY (RULE 8(5)(IX) OF

COMPANIES ACCOUNTS RULES,2014

The Company is primarily engaged in the business of retail trading of Jewellery and is not covered under the list of specified industries/sectors as prescribed under Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014. Accordingly, the provisions relating to maintenance of Cost Records and appointment of Cost Auditor are not applicable to the Company.

41) INTERNAL AUDIT AND CONTROL SYSTEMS

The company has an effective in-house internal audit system. The persons are well trained to cover various areas of verification inspection and system evaluation. All the mandatory compliances required to be followed under various statues are exhaustively covered in their scope. We have effective and adequate internal audit and control systems, commensurate with our business size. Regular internal audit visits to the operations are undertaken to ensure that high standards of internal controls are maintained at each level. Independence of the audit and compliance function is ensured by the auditors' direct reporting to the Audit Committee. Details on the composition and functions of the Audit Committee can be found in the chapter on Corporate Governance of the Annual Report.

42) SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

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

43) ENHANCING STAKEHOLDERS VALUE

Your Company believes that its Members are among its most important stakeholders. Accordingly, your Company's operations are committed to the pursuit of achieving high levels of operating performance and cost competitiveness, consolidating and building for growth, enhancing the productive asset and resource base and nurturing overall corporate reputation. Your Company is also committed to create value for its other stakeholders by ensuring that its corporate actions positively impact the socio-economic and environmental dimensions and contribute to sustainable growth and development.

44) PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE

The Company has a Policy on Prohibition, Prevention and Redressal of Sexual Harassment of women at workplace and matters connected therewith or incidental thereto covering all the aspects as required under the "The Sexual Harassment of Women at Workplace (Prohibition, Prevention and Redressal) Act, 2013. There were no such complaints received under the policy during the year.

The Company remains committed to ensure a safe and respectful workplace environment and continues to take necessary steps to strengthen awareness, training and redressal mechanism under the POSH framework.

With respect to the Maternity Benefit Act, 1961 [Rule 8(5)(xiii) of the Companies (Account) Rules, 2014.] - The Company is in full compliance with Maternity Benefit Act, 1961.

45) DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM

Pursuant to the provisions of the Companies Act, 2013 and under regulation 25 of the SEBI (Listing obligations and disclosure requirements) Regulations, 2015, the Board has carried out an evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

The Audit Committee consists of the following members

a. Mr.S.M. Chandrasekaran - Chairman

b. Mr.N.Jegatheesan - Member

c. Mrs. Rajakumari Jeevagan - Member

d. Mr.Ba.Ramesh - Member

The above composition of the Audit Committee consists of independent Directors viz., Mr. S.M. Chandrasekaran, Mrs. Rajakumari Jeevagan and Mr.N.Jegatheesan who form the majority.

The Company has established a vigil mechanism and overseas through the committee, the genuine concerns expressed by the employees and other Directors. The Company has also provided adequate safeguards against victimization of employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit Committee on reporting issues concerning the interests of Company employees and the Company.

46) ANNUAL EVALUATION BY THE BOARD

The evaluation framework for assessing the performance of Directors Comprises the following key areas:

1. Attendance of Board Meeting and Board Committee Meetings

2. Quality of Contribution to Board deliberations

3. Strategic perspectives or inputs regarding future growth of Company and its performance

4. Providing perspectives and feedback going beyond information provided by the management

5. Commitment to shareholders and other stakeholder interests

The evaluation involves self-evaluation by the Board Members and subsequently assessment by the Board of Directors. A member of the Board will not participate in the discussion of his/ her evaluation.

47) PREVENTION OF INSIDER TRADING:

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for dealing in the Company's shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code. All Directors and the designated employees have confirmed compliance with the Code. The same has been displayed at the company's website at . com.

48) SHARES

a. Buy Back of Securities

The Company has not bought back any of its securities during the year under review.

b. Sweat equity

The Company has not issued any Sweat Equity Shares during the year under review.

c. Bonus shares

The Company has not issued any Bonus Shares during the year under review.

d. Employees Stock Option Plan

The Company has not provided any Stock Option Scheme to the employees.

49) OTHER DISCLOSURES

(a) There has been no change in the nature of business of the Company as on the date of this Report.

(b) There were no material changes and commitments affecting the financial position of the Company between the end of the financial year and the date of this Report.

(c) There was no application made or proceeding pending against the Company under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year under review.

(d) The disclosure requirement under Rule 8(5)(xi) of Companies Accounts (Rules), 2014 is not applicable to the Company.

50) FORWARD-LOOKING STATEMENTS

55)Statements in the Board's Report and the Management Discussion & Analysis describing the Company's objectives, expectations or forecasts may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company's operations include domestic demand and demand and supply conditions affecting selling prices , input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.

51) ACKNOWLEDGEMENTS

The Board of Directors place on record sincere gratitude and appreciation for all the employees at all levels for their hard work, team spirit, cooperation and dedication during the year.

Your Directors place on record their sincere thanks to bankers, suppliers, business associates, consultants, and various Government Authorities for their continued support extended to your Company's activities during the year under review.

Your Directors also acknowledge gratefully the shareholders for their support and confidence reposed on the Company.