Parmax Pharma Ltd. ನಿರ್ದೇಶಕರ ವರದಿ

Mar 31, 2025

The Board of Directors are pleased to present Thirty First Annual Report along with the audited financial statements
for the financial year ended March 31, 2025.

FINANCIAL RESULTS

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

(Rs. in lacs except per share data)

Particulars	2024-25	2023-24
Net Total Income	2820.39	1110.12
Less: Operating and Admin. Exps.	2511.18	1504.54
Profit before depreciation and Taxes	-136.40	-394.42
Less: Depreciation	103.16	171.17
Less: Extraordinary/Exceptional Items	0.00	0.00
Net Profit/(Loss) on sale of Fixed Assets	0.00	0.00
Profit before Tax (PBT)	-239.51	-565.59
Less: Taxes (including deferred tax and fringe benefit tax)	30.10	9.46
Profit after Tax (PAT)	-209.40	-575.05
Balance Available for appropriation	-643.98	-434.58
Which the Directors propose to appropriate as under:
(i) Proposed Dividend	0.00	0.00
(ii) Corporate Dividend Tax	0.00	0.00
Balance carried to Balance Sheet as Retained Earnings	-643.98	-575.05
Earnings per Share (Rs.)	-5.60	-15.37

FINANCIAL REVIEW AND HIGHLIGHTS

REVENUE FROM OPERATIONS:

In FY 2025, your Company recorded total revenue from operations of Rs. 2820.39 lacs as against Rs. 1105.30 lacs lacs
in FY 2024.

REPORTED NET PROFIT AFTER TAX / (LOSS) Reported PAT was Rs. (209.40) lacs in FY 2024 as against Rs. (575.05) lacs in
FY 2024.

DIVIDEND

In absence of profit, the Board of Directors of the Company has not declared any dividend for the year ended March
31, 2025.

CAPITAL STRUCTURE

As on March 31, 2025, the company''s authorised share capital was Rs.6,00,00,000/- (Rupees Six Crores Only) divided
into 60,00,000 (Sixty lacs only) equity shares of Rs.10/- (Rupees Ten only) each.

The Company''s paid up capital is Rs.3,74,13,000/- (Rupees Three Crore Seventy four lacs thirteen thousand Only)
divided into 37,41,300 (Thirty Seven Lacs forty one thousand and three hundred only) equity shares of Rs.10/- (Rupees
ten only) each.

There is no change in share capital of the Company during the year.

PERFORMANCE OF SUBSIDIARIES, ASSOCIATE COMPANIES AND JOINT VENTURES

As on 31^st March, 2025, Your Company has Nil Subsidiary/Joint Venture/ Associate Company

LOANS, GUARANTEES AND INVESTMENTS

The Company has not given any Loans, Guarantees or made Investments as at 31^st March, 2025.

LIQUIDITY

The Company has cash and cash equivalents of Rs.9.03 Lacs as on March 31, 2025 to meet the liquidity requirement.
TERM DEBT

During the FY 2024-25, the Company has availed any fund-based credit facilities of Rs. 840 Lacs and having outstanding
liability of Rs.770.35 Lacs as on 31^st March, 2025.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Shri Umang Alkesh Gosalia is liable to retire by rotation at the ensuing AGM in compliance with the provisions of Section
152 of the Companies Act, 2013 read with the Companies (Appointment and Qualification of Directors) Rules, 2014 and
the Articles of Association of the Company and being eligible has offered himself for reappointment. The Independent
Directors of Company are not liable to retire by rotation as per provisions of section 149(13) of the Companies Act,
2013.

All the directors of the Company have confirmed that they are not disqualified from being appointed as directors in

terms of Section 164 of the Companies Act, 2013. The Company has received declarations from all the Independent
Directors confirming that they meet the criteria of independence as prescribed under 149(6) of the Companies Act,
2013 read with rules issued there under as well as Regulation 16(1)(b) of the Listing Regulations (including any statutory
modification(s) or re- enactment(s) for the time being in force). The Board is of the opinion that Independent Directors
of the Company hold highest standards of integrity and possess requisite expertise and experience required to fulfil
their duties as Independent Directors. In terms of Regulation 25(8) of the Listing Regulations, Independent Directors
have confirmed that they are not aware of any circumstances or situation which exists or may be reasonably anticipated
that could impair or impact their ability to discharge their duties.

The details of policy on Directors'' Appointment, its remuneration including criteria for determining qualifications,
positive attributes, independence of a director and other matters provided under subsection (3) of section 178; and
performance evaluation has been described in detail in the report on Corporate Governance of the Company which
forms and integral part of the report.

NUMBERS OF MEETINGS OF BOARD

The Board met six times during financial year 2024-25, the details of which are provided in the Corporate Governance
Report. The gap between any two meetings was within the period prescribed by the Act and the SEBI Listing
Regulations.

COMMITTEES OF THE BOARD

The Board of Directors has the following Committees as on March 31, 2025:

a. Audit Committee

b. Nomination and Remuneration Committee

c. Stakeholders'' Relationship Committee

The details of the Committees along with their composition, number of meetings and attendance at the meetings are
provided in the Corporate Governance Report.

PERFORMANCE EVALUATION

The Nomination and Remuneration Policy of the Company empowers the Nomination and Remuneration Committee
to formulate a process for evaluating the performance of Individual Directors, Committees of the Board and the Board
as a whole.

In terms of the requirement of the Companies Act, 2013 and the SEBI Listing Regulations, an annual performance
evaluation is undertaken. The details of the evaluation process, parameters etc. are set out in the Corporate
Governance Report which forms a part of this Annual Report.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013, the Directors, based on the information and
representations received from the Management of the Company, confirm that:

a) in the preparation of the annual accounts for the financial year ended March 31, 2025, the applicable accounting
standards had been followed and there are no material departures from the same;

b) they 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 March 31,
2025 and of the Profit of the company for that period;

c) they have taken proper and sufficient care to the best of their knowledge and ability 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) they have prepared the annual accounts on a going concern basis;

e) they have laid down internal financial controls to be followed by the company and that such internal financial
controls are adequate and are operating effectively during the financial year ended March 31, 2025; and

f) they had devised proper systems to ensure compliance with the provisions of all applicable laws and such systems
were adequate and operating effectively throughout the financial year ended March 31, 2025.

MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis forms an integral part of this report and gives details of the overall industry
structure, economic developments, outlook, operational performance and state of affairs of your Company.

CORPORATE GOVERNANCE

In compliance with Regulation 34 of the Listing Regulations, a separate report on Corporate Governance along with
certificate from the Auditors on its compliance forms an integral part of this report.

AUDITORS AND AUDITORS'' REPORT

Statutory Auditors

M/s. B A Shah S R Mehta & Co., Chartered Accountants (ICAI Firm Registration No. 128796W) ("Existing Auditors") were
appointed as statutory auditors of the Company at Twenty ninth AGM to hold office upto Thirty fourth AGM of the
Company to audit the financial statement from FY 2022-23 to FY 2026-27. They have confirmed that they are not
disqualified from continuing as Auditors of the Company.

The Auditors'' Reports for the financial year ended March 31, 2025 on the financial statements (Standalone and
consolidated) of the Company is a part of Annual Report. The auditors'' report contain following qualification.

i) The investments made by the Company, during the year, are not prejudicial to its interest, except Company
has invested sum of Rs. 40 lakhs during the year with Aditya Birla Sun life Mutual Fund. Investment is in the
name of Managing Director Umang A. Gosalia which is nominated to Namrata U. Gosalia which is in
contravene of section 187 (1) of Companies Act, 2013.

The Management is in procedure of transferring this investment in the Company''s name after following all necessary
procedures.

ii) The company has accepted deposits of Rs. 25 lakhs from Relative of Directors and Hence
directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any
other relevant provisions of the Act and the Companies (Acceptance of deposit) Rules, 2015
with regard to the deposits accepted from the relative of Director is contravening. According
to information and explanations provided to us, no order has been passed by Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any court or any other
tribunal.

The Management is in procedure of complying with the provisions of the Companies Act, 2013.

Secretarial Auditors

The Report of the Secretarial Auditor for FY25 is annexed herewith as Annexure - B. The said Secretarial Audit Report
does not contains following qualification:

i) The investments made by the Company, during the year, are not prejudicial to its interest, except Company
has invested sum of Rs. 40 lakhs during the year with Aditya Birla Sun life Mutual Fund. Investment is in the
name of Managing Director Umang A. Gosalia which is nominated to Namrata U. Gosalia which is in
contravene of section 187 (1) of Companies Act, 2013.

The Management is in procedure of transferring this investment in the Company''s name after following all necessary
procedures.

ii) The company has accepted deposits of Rs. 25 lakhs from Relative of Directors and Hence
directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any
other relevant provisions of the Act and the Companies (Acceptance of deposit) Rules, 2015
with regard to the deposits accepted from the relative of Director is contravening. According
to information and explanations provided to us, no order has been passed by Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any court or any other
tribunal.

The Management is in procedure of complying with the provisions of the Companies Act, 2013.

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 and amended Regulation 24A of the SEBI Listing Regulations, the Board has based on the
recommendation of Audit Committee approved appointment of Mr. Samsad Alam Khan (Membership No. F13629, CP
No.13972), a peer reviewed Company Secretaries in Practice as Secretarial Auditors of the Company for a period of five
years, i.e., from April 1, 2025 to March 31, 2030, subject to approval of the Shareholders of the Company at the ensuing
AGM.

The Company is not required to get its cost records audited for the financial year 2024-25.

The Board has appointed M/s B A Shah Associates as Internal Auditors of the Company for the period of two years up
to FY 24-25 under Section 138 of the Companies Act, 2013 as per the scope provided by the Board.

REPORTING OF FRAUDS BY AUDITORS

During the year under review, the Statutory Auditors and Secretarial Auditors have not reported any instances of frauds
committed in the Company by its Officers or Employees to the Audit Committee or Central Government under section
143(12) of the Companies Act, 2013, details of which needs to be mentioned in this Report.

INTERNAL FINANCIAL CONTROLS

The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including
adherence to the 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 disclosures.

RELATED PARTY TRANSACTIONS

All transactions entered with related parties for the financial year 2024-25 were on arm''s length basis and in the
ordinary course of business and that the provisions of Section 188(1) of the Companies Act, 2013 and the Rules made
thereunder, disclosure in Form AOC-2 in terms of Section 134 of the Companies Act, 2013 is set out in Annexure-A.
Further, there is no material transaction with any related party during the year under review. The Company complies
with the policy on related party transactions while identification and monitoring it.

All transactions with related parties were reviewed and approved by the Audit Committee and are in accordance with
the Policy on Related Party Transactions formulated by the Company. There are no materially significant related party
transactions that may have potential conflict with interest of the Company at large.

All related party transactions are placed before the Audit Committee as also to the Board for review and approval.
Omnibus approval of the Audit Committee was obtained for transactions which are of repetitive nature. Transactions
entered into pursuant to omnibus approval are reviewed by Audit Committee and a statement giving details of all
related party transactions are placed before the Audit Committee and the Board for review on a quarterly basis. The

Company regularly makes necessary modifications to the said policy in line with the amendments as introduced in the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 from time to time.

ANNUAL RETURN

The Companies (Management and Administration) Amendment Rules, 2020 has done away the requirement of
attaching extract of Annual Return in Form MGT-9 to Board''s Report. The annual return in Form MGT-7 as required
under Section 92(3) of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration)
Rules, 2014 is available on the website of the Company at https://parmaxpharma.com/annualreports.aspx

EMPLOYEE AND RELATED DISCLOSURES

The remuneration paid to the Directors is in accordance with the Nomination and Remuneration Policy formulated in
accordance with Section 178 of the Companies Act, 2013 and Regulation 19 of the Listing Regulations (including any
statutory modification(s) or re-enactment(s) for the time being in force).

As per the provisions of Section 136(1) of the Act and Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Report and Financial Statements are being sent to the Members of the
Company excluding the statement of particulars of employees under Rule 5(2) of the Rules. Any Member interested in
obtaining a copy of the said statement may write to the Company Secretary at the Registered Office of the Company

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 annexed to this
report as Annexure-C.

CORPORATE SOCIAL RESPONSIBILITY

This clause is not applicable.

MATERIAL CHANGES:

There was a fire incident in the factory during FY 2023-24 which caused significant damage in the manufacturing plant.
However, the company has already started the process for filing the insurance claim to cover the said damage. There
are no other material changes and commitments that would affect the financial position of the company from the end
of the financial year of the company to which the financial statements relate and the date of the directors report.

CORPORATE GOVERNANCE:

The Company is dedicated to enhancing stakeholder value through the rigorous application of good Corporate
Governance principles, in accordance with legal requirements and the stipulations outlined in the Listing Regulations.
Our objective, shared by the management and employees, is to manufacture and market our products in a manner that
generates long-term, sustainable value for consumers, shareholders, employees, business partners, and the broader
national economy. In support of this commitment, we have obtained a certificate from the Company''s auditors
confirming compliance with the Corporate Governance conditions set forth in the Listing Regulations. This certificate is
enclosed for your review.

VIGIL MECHANISM/ WHISTLE BLOWER POLICY

The Company has adopted a Whistle Blower Policy, as part of vigil mechanism to provide appropriate avenues to the
Directors and employees to bring to the attention of the management any issue which is perceived to be in violation
of or in conflict with the Internal Rules/ Code of Conduct of the Company. The details of the same have been described
in more depth in Corporate Governance Report.

The Company has established system for reporting, investigation and suitable action in line with the whistle blower
policy. The whistle blower Policy is also available on Company''s website at weblink:
https://parmaxpharma.com/annualreports.aspx

CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO

The particulars of conservation of energy, research and development, technology absorption and foreign exchange
earnings and outgo in terms of Section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules,
2014 for the year ended March 31, 2025 are annexed to this report as Annexure-D.

SECRETARIAL STANDARDS OF ICSI

During the financial year under review, the Company has complied with the applicable provisions of the Secretarial
Standard-1 and Secretarial Standard-2 issued by the Institute of Company Secretaries of India and notified by Ministry
of Corporate Affairs.

INDIAN ACCOUNTING STANDARDS

The Company adopted Indian Accounting Standards (Ind AS) from April 1, 2017. Accordingly, the financial statements
have been prepared in compliance with Ind AS as per the Companies (Indian Accounting Standards) Rules, 2015 as
amended and notified under section 133 of the Act and other relevant provisions of the Act. In the preparation of
financial statements, no treatment which is different from that prescribed in an Accounting Standard has been
followed.

OTHER DISCLOSURES

Few statutory disclosures the Company is required to do are as under:

• The Board of Director of the Company has not proposed any amount for transfer to the reserve for the financial
year ended March 31, 2025.

• The Company has not paid any commission to any of its Directors and hence, provision of disclosure of commission
paid to any Director as mentioned in Section 197(14) is not applicable.

• The Managing Director of the Company has not received any remuneration or commission from any of Company''s
subsidiaries.

• There has been no instance of any revision in the Board''s Report or the financial statement under Section 131(1) of
the Act.

• During the year under review, there were no complaints/ cases filed/ pending/ disposed-off pursuant to the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Company has
complied with the provisions relating to the constitution of Internal Complaints Committee and other provisions
under the said Act.

• The Company has complied with the Maternity Benefit Act, 1961 and all eligible women employees are granted paid
maternity leave as per the Act.

• No application made or any proceeding is pending under the Insolvency and Bankruptcy Code, 2016 during the
financial year ended March 31, 2025.

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

• There have been no material changes/ commitments, affecting the financial position of the company which have
occurred between end of the financial year of the company to which the financial statements relate and the date of
the report. There has been no changes in nature of business of the Company.

• All the recommendations made by the Audit Committee were accepted by the Board of Directors.

• The Company does not have any scheme or provision of money for the purchase of its own shares by employees/
Directors or by trustees for the benefit of employees/ Directors.

• The details of difference between amount of the valuation done at the time of one time settlement and the valuation
done while taking loan from the Banks or Financial Institutions along with the reasons thereof - Not Applicable

APPRECIATION

Your Directors wish to convey their gratitude and place on record their appreciation for all the employees at all levels
for their hard work, solidarity, cooperation and dedication during the year.

Your Directors sincerely convey their appreciation to dealers, shareholders, vendors, bankers, business associates,
regulatory and government authorities for their continued support.

For and on behalf of the Board of
Parmax Pharma Limited

Umang Gosalia
Managing Director
DIN:05153830

Place: Rajkot
Date: August 14, 2025

---

Mar 31, 2024

The Board of Directors are pleased to present their 30th Annual Report on the business and operations of the Company and the Audited financial
accounts for the Year ended 31st March, 2024.

FINANCIAL RESULTS: (RS. IN LACS)

PARTICULARS	FOR THE YEAR ENDEDON 31ST MARCH, 2024	FOR THE YEAR ENDEDON 31ST MARCH, 2023
Net Total Income	1110.12	1546.41
Less: Operating and Admin. Exps.	1504.54	1353.94
Profit before depreciation and Taxes	-394.42	192.47
Less: Depreciation	171.17	187.86
Less: Extraordinary/Exceptional Items	0.00	0.00
Net Profit/(Loss) on sale of Fixed Assets	0.00	0.00
Profit before Tax (PBT)	-565.59	4.61
Less: Taxes (including deferred tax and fringe benefit tax)	9.46	15.02
Profit after Tax (PAT)	-575.05	-10.40
Balance Available for appropriation	-434.58	140.48
Which the Directors propose to appropriate as under:
(i) Proposed Dividend	0.00	0.00
(ii) Corporate Dividend Tax	0.00	0.00
Surplus Carried to Balance Sheet	-575.05	-10.40
Earnings Per Equity Share
Basic (amount in Rs.)	-15.37	-0.28
Diluted (amount in Rs.)	-15.37	-0.28

HIGHLIGHTS OF PERFORMANCE

REVENUE FROM OPERATIONS:

In FY 2024, your Company recorded total revenue from operations of Rs. 1105.30 lacs as against Rs. 1542.43 lacs in FY 2023.

REPORTED NET PROFIT AFTER TAX / (LOSS)

Reported PAT was (575.05) lacs in FY 2024 as against Rs. (10.40) lacs in FY 2023.

DIVIDEND:

Keeping in view the financial requirements the directors do not recommend any dividend during the year under review.

SUBSIDIARY/ JOINT VENTURE/ ASSOCIATE COMPANY:

As on 31st March, 2024, Your Company has Nil Subsidiary/Joint Venture/ Associate Company.

TRANSFER TO RESERVES:

During the year under review, no amount was transferred to general reserves by the Company.

INTERNAL CONTROL SYSTEMS:

The Company has established a comprehensive system of internal controls that is appropriate for its size and the nature of its operations. This
system ensures the accurate recording, authorization, and reporting of transactions, while also safeguarding the Company''s assets against loss
due to waste, unauthorized use, or disposal. These internal control mechanisms are reinforced by well-documented policies, guidelines, and
procedures, all of which comply with the requirements of the internal financial control framework. The Company also maintains a rigorous internal
audit program conducted by a firm of chartered accountants, with periodic management reviews. Additionally, the Audit Committee regularly
assesses the adequacy and effectiveness of the internal control systems and provides recommendations for enhancements.

RISK MANAGEMENT:

Our Company recognizes that risk is an inherent aspect of its business operations and, as such, takes diligent measures to manage risks
proactively and efficiently. The management regularly evaluates risks in both the internal and external environments, integrating appropriate risk
management strategies into its business and operational plans. Detailed practices and procedures followed by the Company in this regard are
included in the Corporate Governance Report.

The Board is of the opinion that there are no risks that threaten the Company''s existence. However, certain challenges faced by the Company are
addressed in the Management Discussion and Analysis section of this Report.

BOARD MEETINGS HELD DURING THE YEAR:

Details of the meetings of the Board held during the year, form part of the Corporate Governance Report
DIRECTORS AND KEY MANAGERIAL PERSONNEL:

In terms of Section 152 of the Companies Act, 2013, Mr. Umang Alkesh Gosalia (DIN: 005173830) is liable to retire by rotation at forthcoming AGM
and being eligible offers himself for re-appointment. A brief resume of director being re-appointed with the nature of their expertise, their
shareholding in the Company as stipulated under as required under Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, is annexed to this Notice of the ensuing Annual General Meeting.

The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013, that he/she
meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 16(1) (b) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.

All the directors of the Company have confirmed that they are not disqualified from being appointed as directors in terms of Section 164 of the
Companies Act, 2013.

MATTERS AS PRESCRIBED UNDER SUB-SECTIONS (1) AND (3) OF SECTION 178 OF THE COMPANIES ACT 2013:

The policy of the Company on directors'' appointment and remuneration, including criteria for determining qualifications, positive attributes,
independence of a director and other matters provided under Sub section (3) of Section 178 of the Companies Act, 2013, adopted by the
Committee, is appended in the Corporate Governance Report.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(3)(c) of the Companies Act, 2013 (the ''Act''), the Directors, to the best of their knowledge,
confirm that:

• In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation
relating to material departures, if any;

• Appropriate accounting policies have been applied consistently and judgments and estimates that are reasonable and prudent have
been made 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 of
the Company for the period;

• Proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• The Annual Accounts have been prepared on a going concern basis;

• The internal financial controls to be followed by the Company have been laid down and such internal financial controls are adequate

and are operating effectively; and

• Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems are
adequate and are operating effectively.

EXTRACT OF ANNUAL RETURN AS PER SECTION 92 (3) OF COMPANIES ACT, 2013:

The Annual Return as required under Section 92 and Section 134 of the Companies Act, 2013 read with Rule 12 of the Companies

(Management and Administration) Rules, 2014 is available on the website of the Company and the web-link for the same is

https://www.parmaxpharma.com/investor_relations.php

KEY FINANCIAL RATIOS:

Key Financial Ratios for the financial year 2023-24 with comparatives for the year 2022-23, are disclosed in Financial Statements.

Management has also provided the reasons for where variances are in excess of 25% compared to previous year and Management is
very proactive and is actively evaluating the causes of differences in ratios and actively working for improving its ratios.

BOARD EVALUATION:

Pursuant to the provisions of the Companies Act, 2013, the Board has carried out an annual evaluation of its own performance, the
directors individually, as well as the evaluation of the working of its Committees. At the meeting of the Board all the relevant factors that
are material for evaluating the performance of individual Directors, the Board and its various committees were discussed in detail. A
structured questionnaire each for evaluation of the Board, its various Committees and individual Directors was prepared and
recommended to the Board by Nomination & Remuneration Committee for doing the required evaluation after taking into consideration
the input received from the Directors covering various aspects of the Board''s functioning such as adequacy of the composition of the
Board and its Committees, execution and performance of specific duties, obligations and governance etc.

AUDITORS:

• STATUTORY AUDITORS:

In terms of provisions of Section 139 of the Act and the Rules made thereunder, the Shareholders of the Company have appointed M/s B.
A. Shah S. R. Mehta & Co., Chartered Accountants for the purpose of carrying out Statutory Audit of the Company.

The existing term of office of M/s. B A Shah S R Mehta & Co., Chartered Accountants, Statutory Auditors is valid and continuing until the
conclusion of the 34th Annual General Meeting, subject to shareholder approval at the upcoming AGM.

The Independent Auditor''s Report for the fiscal year 2023-24 has been duly obtained. While the auditor has issued an unqualified
opinion, indicating that the financial statements present a true and fair view of the Company''s financial position, a few remarks have been
noted in the report. These remarks will be carefully reviewed and addressed by the Company to ensure ongoing compliance and
continuous improvement in financial management.

Reporting of Frauds by Auditors:

During the year, there were no instances of frauds reported by Auditors under Section 143(12) of the Act.

• SECRETARIAL AUDITOR

The Board has appointed Mr. Samsad Alam Khan, Company Secretaries to conduct Secretarial Audit in accordance with the provisions of
Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 for FY 2023-24. The
Secretarial Audit Report for FY 2023-24 has been obtained and contains one qualification for which requires any comments from the
Board. The Secretarial Audit Report for FY 2023-24 is annexed to this report as Annexure -B.

BOARD RESPONSE TO SECRETARIAL AUDIT REPORT AND AUDIT REPORT:-

Your Board of Directors would like to clarify the qualification remarks made in Secretarial Audit Report as under:-
BOARD RESPONSE TO SECRETARIAL AUDIT:

QUALIFICATION/ ADVERSE REMARK	EXPLANATION
Company has not complied with the provisions of Section 74 of the Companies Act, 2013 regarding continuation of deposits.	The Board is in process of complying with Section 74 of Companies Act, 2013 regarding Acceptance of deposits.However, Board assures to comply with the Act and Regulations.

BOARD RESPONSE TO STATUTORY AUDIT REPORT-

QUALIFICATION/ ADVERSE REMARK	EXPLANATION

INTERNAL AUDITORS:

The Board has appointed M/s. B A Shah Associates, Chartered Accountants (FRN: 109493W) as Internal Auditor of the company for
the financial year 2024-25. The report prepared by the Internal Auditors is to be reviewed by the Statutory Auditors & Audit
Committee.

INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY:

The details in respect of internal financial control and their adequacy are included in the Management Discussion & Analysis Report,
which forms part of this report.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186:

Details of Loans, Guarantees and Investments under the provisions of Section 186 of the Companies Act, 2013 are not applicable to
the Company.

AUDIT COMMITTEE:

The composition and the functions of the Audit Committee of the Board of Directors of the Company is disclosed in the Report on
Corporate Governance, which is forming a part of this report.

RELATED PARTY TRANSACTIONS:

All the related party transactions entered into during the financial year were on an arm’s length basis and were in the ordinary
course of business. Accordingly, the disclosure of related party transactions as required under Section 134(3) (h) of the Companies
Act, 2013 in Form AOC 2 is attached in “Annexure C”.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

During the year under review, no significant and material order was passed by the Regulators/Courts that could impact the going
concern status of the Company and its future operations.

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

POLICY AGAINST SEXUAL HARASSMENT AT WORKPLACE:

The Company values the dignity of individuals and is committed to provide an environment, which is free of discrimination,
intimidation and abuse. The Company has put in place a policy on redressal of Sexual Harassment and a Policy on redressal of
Workplace Harassment as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
(“Sexual Harassment Act”). As per the policy, any employee may report his/ her complaint to the Redressal Committee formed for
this purpose or their Manager or HR personnel. The company has also constituted an Internal Complaints Committee to inquire into
complaints of sexual harassment and recommendation for appropriate action. No complaints have been filed/ disposed of/ pending
during the financial year ended 31st March, 2024.

MATERIAL CHANGES:

There was a fire incident in the factory during FY 2023-24 which caused significant damage in the manufacturing plant. However, the
company has already started the process for filing the insurance claim to cover the said damage.

There are no other material changes and commitments that would affect the financial position of the company from the end of the
financial year of the company to which the financial statements relate and the date of the directors report.

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

The particulars prescribed under Section 134(3)(m) of the Companies Act, 2013, read with Rule 8(3) of the Companies (Accounts)
Rules, 2014 are attached as ‘Annexure - D’

CORPORATE GOVERNANCE:

The Company is dedicated to enhancing stakeholder value through the rigorous application of good Corporate Governance
principles, in accordance with legal requirements and the stipulations outlined in the Listing Regulations. Our objective, shared by
the management and employees, is to manufacture and market our products in a manner that generates long-term, sustainable
value for consumers, shareholders, employees, business partners, and the broader national economy.

In support of this commitment, we have obtained a certificate from the Company’s auditors confirming compliance with the
Corporate Governance conditions set forth in the Listing Regulations. This certificate is enclosed for your review.

RISK MANAGEMENT:

Our Company considers that risk is an integral part of its business and therefore, it takes proper steps to manage all risks in a
proactive and efficient manner. The Company management periodically assesses risks in the internal and external environment and
incorporates suitable risk treatment processes in its strategy and business and operating plans.

There are no risks which, in the opinion of the Board, threaten the very existence of your Company. However, some of the
challenges faced by it have been dealt with under Management Discussion and Analysis which forms part of this Report.Details
regarding constitution of Risk Management Committee, its role and responsibilities, form part of the Corporate Governance Report.

CORPORATE SOCIAL RESPONSIBILITY:

This clause is not applicable.

KEY MANAGERIAL PERSONNEL:

As on 31st March, 2024, Dr. Umang A. Gosalia, Managing Director and Mr. Keyur D Vora, Chief Financial Officer were the Key
Managerial Personnel of the Company.

VIGIL MECHANISM/WHISTLE BLOWER POLICY:

Your Company is committed to upholding the highest standards of ethical, moral, and legal business conduct. In line with this
commitment, the Board of Directors has established a Whistle-blower Policy that complies with Section 177(10) of the Companies
Act, 2013 and Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This policy is designed
for employees and Directors to report any instances of unethical behavior, actual or suspected fraud, or violations of the
Company’s code of conduct. It provides a secure channel for employees and Directors to raise concerns directly with the Chairman
of the Audit Committee.

Further, the whistle blower policy is available at the website of our company at http://www.parmaxpharma.com/policies.php
THE CHANGE IN NATURE OF BUSINESS:

There is no material change in the business of the Company during the year under review.

PARTICULARS OF EMPLOYEES:

A statement containing the names and other particulars of employees in accordance with the provisions of section 197(12) of the
Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is
appended as “Annexure - C” to this report.

No employee has received remuneration in excess of the limits set out in rules 5(2) and 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 during FY 2023-24.

ACKNOWLEDGMENT:

The Directors wish to express their sincere appreciation for the dedicated services rendered by the workers, staff, and officers,
whose efforts have significantly contributed to the efficient management of the Company during challenging times. The Directors
also acknowledge and thank the shareholders for their continued support. Additionally, the Directors take this opportunity to
convey their gratitude for the assistance and cooperation received from the bankers, vendors, and all stakeholders, including
financial institutions, Central and State Government authorities, and other business associates, whose sustained support and
encouragement have been invaluable throughout the year under review.

By and order of Board Of Directors ,

For, Parmax Pharma Limited

Dr. Umang Gosalia

Managing Director Date: 6th September, 2024

DIN: 05153830 Place: RAJKOT

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Mar 31, 1996

Your Directors have pleasure in presenting before you the Second Annual Report together with Audited Accounts of the Company for the year ended on 31st March, 1996.

PROJECT

You are aware that the company is setting up a project costing Rs. 610 lacs to manufacture bulk drugs such as Amoxycillin tri hydrate, Ampicillin tri hydrate, Cephalexin mono hydrate and Nalidixic acid at Hadamtala, Taluka-Kotda Sangani, Dist-Rajkot. For the said project the company is setting up an anti-biotic plant with an installed capacity of 48 Metric Tonnes per annum and a non-anti-biotic plant with an installed capacity of 48 Metric Tonnes per annum. The anti-biotic plant has already been completed and the company has also started the trial run. The company proposes to start the commercial production by the third week of July, 1996. As far as the non-anti-biotic plant is concerned, the same is being implemented expeditiously and the company envisage to complete the same by the end of the September, 1996 and the company proposes to start the commercial production by the end of October, 1996. The common civil work for both the above plants is proposed to be completed by the end of August, 1996. It is noteworthy that due to the cost saving at every stage and vigilant personal attention of the Directors during the implementation of the project, though it is delayed, no cost over-run has been incurred by the Company

Till 31st March, 1996 the company has incurred the following expenditures towards its project under implementation

PARTICULARS

RS. IN LACS

Land & Site development 10.62

Building and Civil work 65.60

Plant & Machinery - Indigenous 139.64

Electrical Installation and other assets 22.92

Preliminary, Pre-operative & Public issue expenses 50.22

Margin money for working capital 148.53

For meeting the part of total cost of the project the company has successfully entered into capital market with a maiden public issue of 30,00,000 Equity Shares of Rs. 10/- each aggregating to Rs. 3 Crores. The issue had received a good response from public and it was oversubscribed by 1.26 times. The company allotted the Equity Shares pursuant to the said public issue on 8th January, 1996. The shares of the company have been listed with Ahmedabad, Rajkot and Mumbai Stock Exchanges. Further for financing the part of the Capital Cost of the Project, GSFC has already sanctioned a term loan of Rs. 100 lacs and till 31-3-1996 the company has availed disbursement of Rs. 48.18 lacs from GSFC.

The company has approached various banks for financing the working capital requirements of the project and finally the company has filed an application with Corporation Bank for financing the working capital requirements of the company, which is under active consideration of the bank.

FINANCIAL RESULTS

During the year under review the project of the Company was under implementation stage. The Company has incurred preliminary expenditure to the tune of Rs.2,30,000/-, preoperative expenditure to the tune of Rs.28,99,000/- and public issue expenditure to the tune of Rs. 18,93,000/- during the year under review. Since the Company has not started its commercial production, the Profit and Loss Account for the year ended on 31st March, 1996 is not prepared. The preliminary and public issue expenses incurred so far will be adjusted against profits in the future years. The expenditure incurred under the head "Pre-Operative Expenses" will be capitalised by allocation to fixed assets on appropriate basis on completion of the Project.

DIRECTORS

Pursuant to Article No. 153 and 154 of the Articles of Association of the Company read with Section 258 of the Companies Act, 1956 Shri Prabhudas D. Hansalpara is due to retire at the ensuing Annual General Meeting and being eligible offers himself for reappointment.

Shri Mansukh B. Thummar resigned as Director of the Company with effect from 01-04-1996 and his resignation was accepted by the Board of Directors at its meeting held on 01-04-1996 after appreciating his valuable support extended to the company during his tenure as Director of Company.

Shri Dhirajlal R Kavathia resigned as Director of the Company with effect from 01-04-1996 and his resignation was accepted by the Board of Directors at its meeting held on 01-04-1996 after appreciating his valuable support extended to the company during his tenure as Director of Company.

FIXED DEPOSITS FROM PUBLIC

The Company has not accepted any fixed deposit during the year under review, which is covered under Section 58A of the Companies Act, 1956.

AUDITORS

The existing Auditors of your Company, M/s. H. B. Kalaria & Associates, Chartered Accountants will retire at the ensuing Annual General Meeting. The retiring Auditors have expressed their intention not to seek reappointment. It is now proposed to appoint M/s. Gadhia Karachiwala & Co., Chartered Accountants, Rajkot as the Auditors of the Company from the conclusion of the ensuing Annual General Meeting. M/s. H. B. Kalaria & Associates have also supported the proposal of the Company. M/s. Gadhia Karachiwala & Co. have also confirmed to the Company that if appointed, their appointment will be in accordance with the provisions of the Companies Act, 1956.

PARTICULARS OF EMPLOYEES

Information pursuant to Section 217 (1-A) of the Companies Act, 1956 read togetherwith the Companies (Particulars of Employees) Rules, 1975 has not been given since there is no employee drawing remuneration in excess of the limit prescribed thereunder.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO

Additional information on conservation of Energy, Technology Absorption & Foreign Exchange Earning and Outgo as required to be disclosed in terms of

Section 217(1)(e) of the Companies Act, 1956 read together with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988, has not been given as the company has not started any manufacturing activity.

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Mar 31, 1995

Not available.