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Galada Finance Ltd.

BSE: 538881 Sector: Financials
NSE: N.A. ISIN Code: INE243E01010
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OPEN 13.03
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VOLUME 63
52-Week high 22.05
52-Week low 12.38
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
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Galada Finance Ltd. (GALADAFINANCE) - Director Report

Company director report

To

The Members

Your Directors have pleasure in presenting their 36th Annual Report on thebusiness and operations of the Company and the accounts for the Financial Year ended March31 2022.

FINANCIAL SUMMARY OR HIGHLIGHTS/PERFORMANCE OF THE COMPANY (STANDALONE)

DESCRIPTION 2021-2022 2020-2021
Total Income 10669676.00 9083758.00
Total Expenditure 12922323.00 9460581.00
Profit before tax (2252647.00) (376823.00)
Tax 460500.00 355400.00
Profit after tax (2713147.00) (732223.00)
Other Comprehensive Income 2988154.00 2507934.00
Total Comprehensive Income 275007.00 1775711.00
Earnings Per Share (0.90) (0.24)

DIVIDEND

The Board of Directors of your company after considering holistically the relevantcircumstances and the loss for the year has decided not to recommend any dividend forthe year under review.

RESERVES

During the year an amount of Rs. 55000/- was transferred to Statutory Reserve asrequired under Section 45-IC of the Reserve Bank of India Act 1934

BRIEF DESCRIPTION OF THE COMPANY'S WORKING DURING THE YEAR/STATE OF COMPANY'S AFFAIRS

Duringthe year under report the Company extended creditfacility to the tune ofRs.102.39 lakhs.

The total income of the Company is at Rs. 106.70 lakhs during the year under review asagainst Rs. 90.84 lakhs in the previous financial year; and the company has incurred aloss before tax of Rs.22.53 lakhs during the year under review as compared to Loss ofRs.3.77 lakhs in the previous financial year; The profit (loss) after tax and othercomprehensive income during the year under review is at Rs. 2.751akhs as compared toprofit of Rs.17.78 lakhs in the previous financial year.

INFORMATION REQUIRED UNDER NON-BANKING FINANCIAL COMPANIES ACCEPTANCE OF PUBLICDEPOSITS (RESERVE BANK) DIRECTIONS 1998

There are no instance where the public deposit of the company have not been claimed bythe depositors or not paid by the company after the date on which the deposit became duefor repayment.

As such the total amount due under such accounts remaining unclaimed or unpaid beyondthe dates referred to above was NIL.

CHANGE IN THE NATURE OF BUSINESS IF ANY

There is no significant change in the activities of the company. Your Company continuestoadvance finance under the various categories as in previous years

MATERIALCHANGES AND COMMITMENTS

There have been no material changes and commitments affecting the financial position ofthe Company occurred between the end of the financial year to which this financialstatements relate and the date of this report

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS ORTRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE

There are no instances wherein significant and material orders passed by regulators orcourts or tribunals had impacted the going concern status and company's operations

DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THEFINANCIAL STATEMENTS.

The Company's Internal Control System is designed to ensure operational efficiencyprotection and conservation of resources accuracy and promptness in financial reportingand compliance with laws and regulations. Adequate Internal Control Systems and checks arein place commensurate with the size of the Company and nature of its business. Themanagement exercises financial control on the operations through a well defined monitoringprocess and standard operating procedures. A report of Auditors pursuant to Section143(3) (i) of the Companies Act 2013 certifying the adequacy of Internal FinancialControls is annexed with the Auditors report

DETAILS OF SUBSIDIARY/JOINT VENTURES/ASSOCIATE COMPANIES

Your Company do not have a Subsidiary/Joint Venture/Associate Company as such instancesof reporting does not arise.

PERFORMANCE AND FINANCIAL POSITION OF EACH OF THE SUBSIDIARIES ASSOCIATES AND JOINTVENTURE COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENT.

As there are No subsidiaries associates and jointventure companies instances ofreporting on their performance and financial position does notarise.

DEPOSITS

The details relating to deposits covered under Chapter V of the Act-

(a] Accepted during the year including renewal of interest accrued on renewal of existing deposits; Nil
[b] Remained unpaid or unclaimed as at the end of the year; Nil
(c] Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so number of such cases and the total amount involved - Nil
a] at the beginning of the year;
b] maximum during the year;
c) at the end of the year;
(d] The details of deposits which are not in compliance with the requirements of Chapter V of the Act; Nil

Note: As on 31.03.2022 there is Rs. 34.61 lakh exempted deposit from directors &Rs.13.50 lakhs inter corporate deposit.

STATUTORY AUDITORS

M/s. Suresh kumar & Co. Chartered Accountants (FRN.004273S] Chennai thestatutory auditors of the Company were appointed by the members at the Annual GeneralMeeting held on 26th September 2020 for a period of Three (3] years Howeveras per the peer review guidelines the statutory auditor has tendered their resignation onconclusion of the forthcoming Annual General Meeting.

In order to fill up such casual vacancy based on the recommendation of the AuditCommittee the Board of Directors has proposed the appointment of M/s. Chandarana &Sanklecha Chartered Accountants Chennai [Firm Registration No: 000557S] as the StatutoryAuditors of the Company for a period of Three years to hold the office of StatutoryAuditors from the conclusion of this AGM till the conclusion of AGM to be held in the year2025.

AUDITOR'S REPORT

The Board of Directors wish to state that the Auditors' Report on the Audited FinancialStatement of the Company for the year ended 31st March 2022 do not contain anyqualification reservation or adverse remark so need not require any explanation orcomment.

FRAUDS REPORTED BY THE AUDITOR

During the Year under review no frauds were reported by the Auditor (StatutoryAuditor Secretarial Auditor] to the Audit Committee/ Board.

SECRETARIAL AUDIT REPORT

The Board of Directors of the company had appointed ASJ & Associates PracticingCompany Secretaries represented by Abishek Jain (Membership No. FCS 10925/CP 15508]havingaddress at ID Middle Block Saptamallika Apt 188 Poonamllee High Road KilpaukChennai-600010 who has conducted the Secretarial Audit of the Company for the FinancialYear 2021-2022.The Secretarial Audit report issued by him is attached to this report as Annexure-"C".As there are no qualifications reservation or adverse remark or disclaimer made by theCompany secretary in whole time practice in the secretarial audit report the need forproviding explanation or comments on the same by the Board of Directors does not arise

COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND GENERAL MEETINGS

During the Financial Year 2021-22 your Company has complied with applicableSecretarial Standards namely SS-1 & SS-2 issued by the Institute of CompanySecretaries of India

SHARE CAPITAL

• Issue of equity shares with differential rights

The Board of Directors wish to inform that there are no instance during the financialyear for issue of equity shares with differential rights as such the requirement forproviding details as provided in rule 4 (4] of Companies (Share Capital and Debentures]Rules 2014 does not arise.

• Issue of sweat equity shares

The Board of Directors wish to inform that there are no instance during the financialyear for issue of sweat equity shares as such the requirement for providing details asprovided in Rule 8(13] of Companies (Share Capital and Debentures] Rules 2014 doesnotarise.

• Issue of employee stock options

The Board of Directors wish to inform that there are no instance during the financialyear for issue of employee stock options as such the requirement for providing details asprovided in rule 12 (9] of Companies (Share Capital and Debentures] Rules 2014 does notarise.

CASH FLOW STATEMENT

In compliance with the provisions of Section 134 of Companies Act 2013 and Regulation34(2](c] of SEBI (Listing Obligations and Disclosure Requirements] Regulations 2015 theCash flow statement for the financial year ended March 31 2022 forms part of this AnnualReport

PROVISION OF MONEY BY COMPANY FOR PURCHASE OF ITS OWN SHARES BY EMPLOYEES OR BYTRUSTEES FOR THE BENEFIT OF EMPLOYEES

The Board of Directors wish to inform that there are no instance during the financialyear where the company had made provision of money for purchase of its own shares byemployees or by trustees for the benefit of employees as such the requirement forproviding details as provide din rule 16 (4] of Companies (Share Capital and Debentures]Rules 2014 does not arise

EXTRACT OF THE ANNUAL RETURN

Pursuant to the provisions of Section 134(3] (a] of the Companies Act 2013 the Annualreturn as per provisions of Section 92 (3] of the Companies Act 2013 can be viewed on thewebsite of the company www.galadafinance.in.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION& FOREIGN EXCHANGE EARNINGS OUTGO:

A. Details of Conservation of Energy: NIL

I. Steps taken or impact on conservation of energy

II. Steps taken by the company for utilizing alternate sources of energy

III. Capital investment on energy conservation equipment

B. Technology Absorption: Nil

I. Efforts made towards technology absorption:

II. Benefits derived as a result of the above efforts:

III. In case of imported technology (imported during the last 3 years reckoned fromthebeginning of the financial year]:

(a] Details of technology imported:

(b] Year of import:

(c] Whether the technology been fully absorbed:

(d] If not fully absorbed areas where absorption has not taken place and the reasonsthereof:

IV. Expenditure incurred on Research and Development:

The Company has not incurred any cost towards undertaking R&D Activity during theperiod under review

C. Foreign Exchange Earnings and Outgo:

Foreign Exchange earned in terms of actual inflows during the year: NIL ForeignExchange outgo during the year in terms of actual outflows: NIL

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Corporate Social Responsibility (CSR] which is applicable to every company havingnetworth of rupees five hundred crore or more or turnover of rupees one thousand crore ormore or a net profit of rupees five crore or more during the preceding financial year isNot applicable and as such instances of disclosures as per Rule 9 of Companies (CorporateSocial Responsibility Policy] Rules 2014 does not arise.

DECLARATION FROM INDEPENDENT DIRECTOR

The Company has received declarations from all the Independent Directors on the boardof the Company as on the end of financial year 2021-22 confirming that they continue tomeet with the criteria of Independence as prescribed under Section 149(6] of the CompaniesAct 2013 and Regulation 25 & 16 of SEBI (Listing Obligations and DisclosureRequirements] Regulations2015 and amendments made under thereto.

In the opinion of the Board all the Independent Directors are the person of integrityand are expert in various fields of Finance Law Technology Commerce and have more than20 years of vast experience. As all the Independent directors on the Board carries morethan 10 years of experience they are exempted from appearing in online proficiency selfassessment test conducted by the institute notified under sub-section (1] of section 150of the Companies Act 2013 hence in the opinion of the Board all the IndependentDirectors of the Company fulfill the conditions specified in the Listing Regulations andare independent of the management.

FORMAL ANNUAL EVALUATION

The Board periodically evaluates its own performance and that of its committees andindividual directors

LISTING OF SHARES

The equity shares of the Company are listed on the Stock Exchange viz. BSE Limited(BSE] The Company has paid the applicable listing fees to the Stock Exchange within thestipulated ime.

DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITION ANDREDRESSAL) ACT 2013

Your company has always believed in providing a safe and harassment free work place forevery individual working in the company's premises through various interventionsandpractices. The company always endeavors to create and provide an environment that isfree from discrimination and harassment including sexual harassment. The company haveaformal Anti Sexual Harassment policy in line with the requirements of The SexualHarassment of Workmen at the Workplace (Prevention Prohibition & Redressal) Act2013.1nternal complaints committee has been set up to redress complaints contractualtemporary and trainees are covered under the policy.

The following is the summary of sexual harassment complaints received and disposed offduring the 2021-2022:

No. Of complaints received: NIL No. Of complaints disposed off: NIL

DIRECTORS:

The Current Directors on the Board are Mr. Ashok Jawarilal Galada Mr. Naveen AshokGalada Mr. Ponniah Bhaskaran Mr. Kunjithapatham Ramu and Mrs. Indira SrinivasanRoyakottam

Mr. Naveen Ashok Galada Managing Director is liable to retire by rotation and beingeligible has offered himself for re-appointment. Your Directors recommend there-appointment of the Mr. Naveen Ashok Galada retiring by rotation to the members.

NUMBER OF MEETINGS OF BOARD AND AUDIT COMMITTEE:

The Board meets at regular intervals to discuss and decide on business strategies /policies and review the financial performances of the Company. The details of number ofboard meetings and Other committee meetings held during the Financial Year 2021-22 are asfollows:

COMPOSITION OF BOARD& NUMBER OF MEETING

Name of the Director Designation Category
Mr. PonniahBhaskaran Chairman Independent and Non-Executive Director
Mr. Ashok Jawarilal Galada Director Promoter and Non- Executive Director
Mr. Naveen Ashok Galada Managing Director Promoter and Executive Director
Mr. KunjithapathamRamu Director Independent and Non-Executive Director
Mrs.Indira Srinivasan Royakottam Director Independent and Non-Executive Director

No. of Board Meetings: 5 (Five]: 05th June 2021; 29th June2021; 13th August 2021 30th October 2021 and 05thFebruary2022

ATTENDANCE OF DIRECTORS IN BOARD MEETING

Date of Meeting 05.06.2021 29.06.2021 13.08.2021 30.10.2021 05.02.2022
Mr. Ponniah Bhaskaran Present Present Present Present Present
Mr. Ash ok Jawarilal Galada LOA LOA Present Present Present
Mr. Naveen Ashok Galada Present Present Present Present Present
Mr. Kunjithapatham Ramu Present Present Present Present Present
Mrs.Indira Srinivasan Royakottam Present Present Present Present Present

The interval between two Board Meetings was well within the maximum period mentionedunder section 173 of the Companies Act 2013 and SEBI Listing (Disclosures andObligations Requirements] Regulations 2015.

COMPOSITION OF COMMITTEES OF BOARD:

Currently the board has following Committees: Audit Committee Nomination &Remuneration Committee Stakeholders Relationship Committee &Risk Management Committee

Name of the Committee Composition of the Committee/ No. of times the committee met Highlights of duties responsibilities & Activities
Audit Committee Mr. Ponniah Bhaskaran DIN: 00126136 {Independent and NonExecutive Director} Chairman of the Committee > The Audit Committee was mandated with the same Terms of Reference specified in SEBI (LODR] REGULATIONS2015
> The current Terms of Reference fully conform to the requirements of the Companies Act-2013.
Mrs. Indira Srinivasan Royakottam DIN:06823929 {Independent and NonExecutive Director} Member > The Audit committee is responsible for overseeing the Company's financial reporting process reviewing the quarterly/half yearly/annual
Mr. Kunjithapatham Ramu DIN:01538291 {Independent and NonExecutive Director} Member financial statements reviewing with the management the financial statements and adequacy of internal audit function recommending the appointment/reappointment of statutory auditors and fixation of audit fees reviewing the significant internal audit findings/related party transactions reviewing the Management Discussion and Analysis of financial condition and result of operations and also statutory compliance issues
The Committee met 5 times on 05th June 2021 29th June 2021 13th August 2021 30th October 2021 05th February 2022 > The Committee acts as a link between the management external and internal auditors and the Board of Directors of the Company
Nomination & Remuneration Committee Mr. Kunjithapatham Ramu DIN:01538291 {Independent and NonExecutive Director} Chairman of the Committee > To fix salary allowances and the perks to senior level personnel as and when appointed by the Company.
Mr. Ponniah Bhaskaran DIN: 00126136 {Independent and NonExecutive Director} Member > REMUNERATION POLICY: The managing director is the only executive director on the board who is entitled to receive remuneration. The non-executive directors are not entitled to any remuneration. The compensation to the managing director is within the scale approved by the shareholders. The elements of compensation comprise a fixed component and a performance incentive. The compensation is determined based on the level of responsibility and scales prevailing in the industry. The managing director is not paid sitting fees for any board / committee meetings attended by him.
Mrs. Indira Srinivasan Royakottam DIN:06823929 {Independent and NonExecutive Director} Member
The Committee met 1 times on :- 13th August 2021
Stakeholders Relationship Committee Mrs. Indira Srinivasan Royakottam DIN:06823929 (Independent and NonExecutive Director} Chairman of the Committee > The role of the committee includes formulation of shareholders' servicing plans and policies consideration of valid share transfer requests share transmissions issue of duplicate share certificates issue of share certificates for split dematerialization consolidation of shares etc. The committee also monitors and reviews the mechanism of share transfers dematerialization of shares and payment of dividends.
Mr. Ashok Jawarilal Galada DIN:00042295 (Promoter and NonExecutive Director } Member > It further looks into the redressing of shareholders grievances like non-receipt of balance sheet non-receipt of declared dividends and determining monitoring and reviewing the standards for resolution of shareholders' grievances.
Mr.Naveen Ashok Galada DIN:00043054 (Promoter and Executive Director } Member
There was no meeting of the committee held during 2021-22
The company has not received any grievances/complains from the investors during the financial year 20212022.
Risk Management Committee Mr. Ponniah Bhaskaran DIN: 00126136 (Independent and NonExecutive Director} Chairman of the Committee > The role of the committee includes review of the risk management policy developed by the management review of the risk management framework document and implementation of the actions planned in and periodical review of the process for systematic identification and assessment of the business risks
Mrs. Indira Srinivasan Royakottam DIN:06823929 {Independent and NonExecutive Director} Member
Mr. Kunjithapatham Ramil DIN:01538291 {Independent and NonExecutive Director} Member
The Committee met 1 times on :- 05th February 2022

DETAILS OF RECOMMENDATIONS OF AUDIT COMMITTEE WHICH WERE NOT ACCEPTED BY THE BOARDALONG WITH REASONS

The Audit Committee generally makes certain recommendations to the Board of Directorsof the Company during their meetings held to consider any financial results (Unaudited andAudited] and such other matters placed before the Audit Committee as per the CompaniesAct 2013and SEBI (Listing Obligations and Disclosure Requirements] Regulations 2015 fromtime to time. During the year the Board of Directors has considered all therecommendations made by the Audit Committee and has accepted and carried on therecommendations suggested by the Committee to its satisfaction. Hence there are norecommendations unaccepted by the Board of Directors of the Company during the year underreview

KEY MANAGERIAL PERSONNEL

The following Directors/Officials of the Company have been designated as Key ManagerialPersonnel (KMP] of the Company by the Board of Directors in terms of provisions of Section203 of the Companies Act 2013 and the SEBI Listing Regulations:

1. Mr. Naveen Ashok Galada- Managing Director

2. Mr.BilalMohammadialil -Company Secretary**

3. Mrs. K.R.Manimeghala- ChiefFinancial Officer

** Mr. Bilal Mohammadiali I. resigned from the Company with effect from May 31 2022.The Board places its sincere gratitude for the services and support rendered by the saidKey Managerial personnel during their tenure in the Board

CHANGE IN KEY MANAGERIAL PERSONNEL

During the financial year ended March 31 2022Mrs-Kavirala Deepika resigned from theposition of Company Secretary with effect from July 31 2021 and Mr. Bilal Mohammadiali Iappointed as a Company Secretary with effect from 01st August 2021

ESTABLISHMENT OF VIGIL MECHANISM/ WHISTLE BLOWER POLICY

Pursuant to Section 177(9) of Companies Act 2013 and Regulation 22 of SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 the Company has formulated awhistle blower mechanism for directors and employees to report concerns about unethicalbehavior actual or suspected frauds or violation of the Company's code of conduct andethics. The Audit Committee of the Board oversees the functioning of Whistle BlowerPolicy. The Whistle Blower Policy covering all employees and directors is available in theCompany's website at www.galadafinance.in

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS UNDER SECTION 186

The Company has not given any loans or guarantees covered under the provision ofsection 186 of the Companies Act 2013. The details of the investments made by the Companyaregiven in the notes to the financial statements which forms part of this Annual Report.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

All related party transaction that was entered into during the financial year was on anarm's length basis in the ordinary course of business. There are no ‘material'contracts or arrangements or transactions which were not at arm's length basis andtherefore disclosure in form AOC -2 is not required.

All Related Party Transactions are placed before the Audit Committee as also the Boardfor approval. Prior omnibus approval of the Audit Committee is obtained for thetransactions which are foreseeable and repetitive nature. For the transactions enteredinto pursuant to the omnibus approval so granted a statement giving details of allrelated party transactions is placed before the Audit Committee and the board of Directorsfor their approval on a quarterly basis

PARTICULARS OF EMPLOYEES

The information as required under the provisions of Section 197(12) of the CompaniesAct 2013 and read with Rule 5(1) 5(2) and 5(3) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 are set out in ANNEXURE-A attachedherewith which forms part of this report.

The statement containing such particulars of employees as required in terms of theprovisions of Section 197(12] of the Act read with rules 5(2] and 5(3] of the Companies(Appointment and Remuneration of Managerial Personnel] Rules 2014 forms part of theAnnual Report. Pursuant to the provisions of the Section 136(1] of the Companies Act2013 the reports and accounts as set out therein are being sent to all members of theCompany excluding the aforesaid information and the same is open for inspection at theregistered office of the Company during working hours upto the date of Annual GeneralMeeting and if any member is interested in obtaining such information may write to theCompany Secretary at the registered office of the Company in this regard.

CORPORATE GOVERNANCE

As prescribed under the provisions of Regulation 15(2] of SEBI (Listing Obligations andDisclosures Requirements] Regulations 2015 your Company does not fall under the purviewof complying with the provisions of Corporate Governance. During the year your Company hasinformed the non-applicability provision to the Bombay Stock Exchange. Since theprovision of Corporate Governance is not applicable for the entire Financial Year 2021-22a separate report of Corporate Governance is not disclosed in the Annual Report 2021-22.

MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT

Pursuant to Regulation 34(2] of the SEBI (Listing Obligations and DisclosureRequirements]Regulations 2015 read with schedule-V thereof the Management Discussion andAnalysis report has been annexed to the Boards Report as ANNEXURE-B and forms partof the Annual Report

COMPLIANCE WITH CODE OF CONDUCT

The Company has framed a Code of Conduct for the Board of Directors and SeniorManagement personnel of the Company. The Code of Conduct is available on the Company'swebsite. All the Board of Directors and Senior Management personnel have affirmedcompliance with the Code of conduct as on March 31 2022

As required under Regulation 34(3] and Schedule V (D] of SEBI (Listing Obligations andDisclosure Requirements] Regulations 2015 a declaration from Mr. Naveen Ashok GaladaManaging director to this effect is annexed which forms part of this Annual Report

RISK MANAGEMENT POLICY

A Risk Management Policy for the Company has been adopted by the Board. The Companymanages risk through a detailed Risk Management Policy framework which lays downguidelines in identifying assessing and managing risks that the businesses are exposedto. Risk is managed by the Board through appropriate structures that are in place.

NOMINATION AND REMUNERATION POLICY

Pursuant to Section 178(3] of the Companies Act 2013 the Board of Directors hasframed a policy which lays down a framework in relation to remuneration of Directors KeyManagerial Personnel and Senior Management of the company. The policy also lays down thecriteria for selection and appointment of Board Members. The Remuneration Policy isavailable on the website of the company www.galadafinance.in.

AFFIRMATION THAT THE REMUNERATION IS AS PER THE REMUNERATION POLICY OF THE COMPANY

The Company has formulated the Nomination and Remuneration Policy in compliance withSection 178 of the Companies Act 2013 read along with the applicable rules thereto andPart D of Schedule II of Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements] Regulations 2015 as amended from time to time. This policygoverns the criteria for deciding the remuneration for Directors and Key ManagerialPersonnel. It is affirmed that the remuneration to Directors and Key Managerial Personnelis being fixed based on the criteria and parameters mentioned in the above mentionedpolicy of the Company.

BOARD DIVERSITY

The Company recognizes and values the importance of a diverse board as part of itscorporate governance and success. The Company believes that a truly diverse Board willleverage differences in ideas knowledge thought perspective experience skill setsage ethnicity religion and gender which will go a long way in retaining its competitiveadvantage

CRITERIA FOR PAYMENT OF REMUNERATION TO NON-EXECUTIVE DIRECTORS (PURSUANT TO PART-DSCHEDULE II (1) OF SEBI (LODR) REGULATIONS 2015

The Criteria for Payment Of Remuneration To Non-Executive Directors (Pursuant To Part-DSchedule II (1] Of SEBI (LODR] Regulations 2015is available on the website of the companywww.galadafinance.in.

DIRECTORS' RESPONSIBILITY STATEMENT

The terms of clause (c] of sub-section (3] of Section 134 of the Companies Act 2013the directors state that:

a] in the preparation of the annual accounts the applicable accounting standardshadbeen followed along with proper explanation relating to material departures;

b] the directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit and loss of the company for that period;

c] the directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;

d] the directors had prepared the annual accounts on a going concern basis; and

e] the directors in the case of a listed company had laid down internal financialcontrols to be followed by the company and that such internal financial controls areadequate and were operating effectively.

f] the directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENTS

Your Directors would like to express their appreciation for the assistance andcooperation received from the financial institutions banks Government authoritiescustomers vendors and members during the year under review. Your Directors also wish toplace on record their deep sense of appreciation for the committed services by theCompany's executives staff and employees.

By the Order of the Board
For GALADA FINANCE LIMITED
Place: Chennai JUSTICE PONNIAH BHASKARAN
Date: 27.08.2022 DIN:00126136

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