To The Shareholders, PARAS PETROFILS LIMITED

Your Directors present this 34^th Annual Report together with the Audited Annual Financial Statements of Paras Petrofils Limited ("Paras" or "the Company") for the year ended March 31^st, 2025.

FINANCIAL HIGHLIGHTS- AT A GLANCE • Overall Performance of your Company

During the Financial Year 2024-25, the Company did not carry on any business operations. However, the Company reported a Net Profit of 7.82 Lakhs as compared to a Net Loss of 37.38 Lakhs in the

Financial Year 2023-24, primarily on account of other income and prudent financial management.

• The financial summary, performance highlights operations/state of affair of your Company for the year are summarized below:

No dividend has been declared for the Financial Year 2024-25 in view of the accumulated losses carried forward by the Company.

Since there was no unpaid/unclaimed Dividend declared or paid by the Company, the provisions of Section 125 of the Companies Act, 2013 do not apply.

The Board proposes no amount to transfer to the reserves and no amount is proposed to be retained in surplus.

There was no change under the Share Capital during the year under review as the Company has not issued any shares including Equity Shares, Shares with Differential Voting Rights, Stock Options, Sweat Equity, etc. The Company has not bought back any equity shares during the year 2024-25.

As on 31^st March, 2025, paid-up share capital of the Company stood at 36,78,43,000 consisting of

33,42,21,000 Equity Share of Rs. 1/- each and 33,62,200 11% Non-cumulative Preference Shares of Rs.10/- each.

In terms of Regulation 76 of the SEBI (Depositories and Participants) Regulations, 2018, the Reconciliation of Share Capital Audit is undertaken by a firm of Practicing Company Secretaries on quarterly basis. The audit is aimed at reconciliation of total shares held in CDSL, NSDL and in physical form with the admitted, issued and listed capital of the Company. The Reconciliation of Share Capital

Audit Report(s) as submitted by the Auditor on quarterly basis was filed with respective stock exchanges where original shares of the Company are listed.

Mr. Deepak Kishorchandra Vaidya Whole-time Director Ms. Madhuben Shankarbhai Rathod Non-Executive Director

Mr. Kailashdan Charan ^@ Non-Executive Director Mr. Sanjay Jayant Bhatt Non-Executive Director

Mr. Jayprakashan Padmanabhan Nair Non-Executive Director

Mr. Rupesh Pachori Non-Executive Independent Director Mr. Piyush Khatod Non-Executive Independent Director

Mr. Deepak Kishorchandra Vaidya Chief Financial Officer

Ms. Shalu Ramesh Sarraf ^# Company Secretary & Compliance Officer

Mr. Deepak Kishorchandra Vaidya (DIN: 08201304), Whole-time Director and Mr. Jayprakashan

Padmanabhan Nair (DIN : 10699010), Director will be retiring by rotation at this Annual General Meeting and being eligible, offers him for re-appointment. The Board recommends his re-appointment to the Company at this Annual General Meeting.

There were no other changes in the Directors or Key Managerial Personnel of the Company during the year under review, except as stated below:

During the year under review:

• Mr. Kailashdan Charan has ceased to be the part of board of director of the company w.e.f.

15.04.2024

• Mr. Jayprakashan Padmanabhan Nair was appointed as Non-Executive Non-Independent Director of the company w.e.f. 08.07.2024

After the closure of the year:

• Ms. Shalu Ramesh Sarraf has ceased to be Company Secretary & Compliance Officer of the company w.e.f. 30.07.2025

All Independent Directors have given declarations under section 149(7) that they meet the criteria of

Independence as laid down under section 149(6) of the Companies Act, 2013 and Rules made thereunder to be read with SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015.

The provisions of Section 134(3)(p) of the Companies Act, 2013, read with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, mandate that a formal annual evaluation be carried out by the Board of its own performance, that of its Committees, and individual Directors. Schedule IV of the Companies Act, 2013, further provides that the performance evaluation of Independent Directors shall be done by the Board, excluding the Director being evaluated.

In line with the criteria and framework laid down by the Nomination and Remuneration Committee and adopted by the Board, a formal annual performance evaluation was conducted. The evaluation was carried out through a structured process to assess the performance of individual Directors, including the

Chairman of the Board. Directors were evaluated on parameters such as education, knowledge, experience, expertise, skills, behavior, leadership qualities, level of engagement and contribution, independence of judgment, and decision-making ability in safeguarding the interests of the Company, stakeholders, and shareholders.

The performance evaluation of Independent Directors was carried out by the entire Board, excluding the Independent Director being evaluated. The performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors. The Board expressed satisfaction with the evaluation process and approved the results.

The Board of Directors has laid down the code of conduct for all Board Members and members of the Senior Management of the Company. Additionally, all Independent Directors of the company shall be bound by duties of Independent Directors as set out in Companies Act, 2013 to be read with SEBI Listing Regulations, 2015.

All Board Members, Key Managerial Personnel and Senior Management Personnel have affirmed compliance with the Code of Conduct.

The appointment, removal, and remuneration of Directors are subject to the recommendations of the Nomination and Remuneration Committee ("NRC") and are in accordance with the provisions of the Companies Act, 2013 and the Listing Regulations. The Company has in place a policy on the appointment and remuneration of Directors, which, inter alia, sets out the criteria for determining the qualifications, attributes, independence, diversity, and other requirements for Directors.

The ‘Nomination and Remuneration Policy' has been formulated and revised in line with the provisions of the Act and the Listing Regulations. The policy covers, among other matters, the remuneration of

Directors, Key Managerial Personnel, and Senior Management Personnel, as well as the identification of and criteria for the selection of suitable candidates for appointment as Directors, Key Managerial

Personnel, and Senior Management Personnel.

In terms of Section 134(3) of the Companies Act 2013, the Directors, would like to state as follows:

(a) In the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures; (b) the Directors had selected such accounting policies and applied them consistently and made judgments & estimates that are reasonable and prudent so as to give a true & fair view of the state of affairs of the company at the end of the financial year and of the profit & loss of the Company for that period;

(c) the Directors had taken proper & 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 & detecting fraud & other irregularities; (d) the Directors had prepared the Annual Accounts on a going concern basis; (e) the Directors had laid down Internal Financial Controls to be followed by the Company and such controls are adequate and are operating effectively; (f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

The details of Board Meetings convened during the year along with other details of Board Meetings held are given in Corporate Governance Report, which forms the integral part of this Annual Report. The maximum interval between any two meetings did not exceed 120 days, as prescribed in the Companies Act, 2013.

The Audit Committee of the Company is constituted in line with the provisions of section 177 of the Companies Act, 2013 to be read with Regulation 18 of the SEBI (Listing Obligation & Disclosure

Requirement) Regulation, 2015. The Composition of Audit Committee is given in the Corporate Governance Report which forms the integral part of this Annual Report.

The Nomination & Remuneration Committee of the Company is constituted in line with the provisions of section 178 of the Companies Act, 2013 to be read with Regulation 19 of the SEBI (Listing Obligation

& Disclosure Requirement) Regulation, 2015. The Composition of the Committee is given in the Corporate Governance Report which forms the integral part of this Annual Report.

The Stakeholders' Relationship Committee of the Company is constituted in line with the provisions of section 178 of the Companies Act, 2013 to be read with Regulation 20 of the SEBI (Listing Obligation &

Disclosure Requirement) Regulation, 2015.The Composition of the Committee is given in the Corporate Governance Report which forms the integral part of this Annual Report.

The Company has constituted a Vigil Mechanism Committee in compliance with Section 177 of the

Companies Act, 2013 and Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The composition of the Committee is provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

As per Reg. 34 of SEBI Regulation, 2015 to be read with Part A of Schedule V of the said regulations, a separate section on corporate governance practices followed by the company, together with the certificate from the Practicing Company Secretary confirming compliance forms an integral part of this Report.

Management Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section of this Annual Report.

The members at the Annual General Meeting held on 30^th September, 2022 re-appointed M/s RMR & Co., Chartered Accountant (FRN:106467W), as Statutory Auditors of the Company for a period of five years to hold office from the conclusion of that meeting till the conclusion of 36^th Annual General Meeting of the Company.

The Notes on Accounts and observations of the Auditors in their Report on the Accounts of the Company are self-explanatory and in the opinion of the Directors, do not call for any further clarification(s). Also, the report submitted by the Auditor is unqualified.

Pursuant to provision of section 204 of the Companies Act, 2013, read with the Companies (Appointment and Remuneration of Managerial Personnel) Rule, 2014, the Company has appointed M/s. M.D. Baid & Associates, Company Secretaries to undertake Secretarial Audit of the Company for FY 2024-25.

The Secretarial Audit was conducted by CS Mohan Baid , Practicing Company Secretary, and the report thereon is annexed herewith as "Annexure- A".

There are qualifications, reservations or adverse remarks made by Secretarial Auditors in their Report and the same is self-explanatory.

The provisions of Regulation 24A of the SEBI (Listing Obligations and Disclosure) Regulations, 2015 are applicable on the Company. Therefore, the Company has obtained a certificate from a Practicing Company Secretary and has been attached with this Annual Report. The report thereon is annexed herewith as "Annexure-B".

The Company had appointed Internal Auditor to carry out the Internal Audit Functions. The Internal Auditor has to submit a "Quarterly Report" to the Audit Committee for its review.

During the year under review, neither the statutory auditors nor the secretarial auditor has reported to the Audit Committee, under Section 143(12) of the Companies Act, 2013, any instances of fraud committed against the Company by its officers or employees, the details of which would need to be mentioned in the Board's report.

As per sub-section (1) of section 148 of the Companies Act, 2013, maintenance of Cost Records has not been prescribed by the Central Government for the products/services manufactured/provided by the company.

The Annual Return in terms of section 92(3) of the Act for the financial year 2024-25 is available on the Company's website and can be accessed at https://www.paraspetrofils.in/

The Company is not having any Subsidiary Company/ Joint Venture/ Associate Company during the financial year 2024-25. A statement about Subsidiary / Joint Ventures / Associate Company in the form AOC-1 is not applicable.

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Act are given in the notes to Financial Statements forming part of the Annual Report.

The company has not made any investment during the year

During the year under review, the Company has not accepted any deposits in terms of section 73 of the Companies Act, 2013.There were no unclaimed deposits at the end of Financial Year i.e. 31st March, 2025.

In the financial year 2024-25, The Company has not entered into any material related party transaction with the related parties within the purview of section 188 of the Companies Act, 2013. Thus, form AOC-2 is not required.

The requisite information with regard to conservation of energy, technology absorption and foreign exchange earnings and outgo, in terms of the Section 134(3)(m) of the Companies Act, 2013, read with Companies (Accounts) Rules, 2014 is given below:

Further, there were no foreign exchange earnings and outgo during the year under review.

The Company has complied with the requirements prescribed under the Secretarial Standards on Meetings of the Board of Directors (SS–1) and General Meetings (SS–2) read with the MCA Circulars granting exemptions in view of the Covid-19 pandemic.

Your Company follows Indian Accounting Standards (Ind AS) issued by the Ministry of Corporate Affairs in the preparation of its financial statements. Your Company has consistently applied applicable accounting policies during the year under review. Management evaluates all recently issued or revised accounting standards on an ongoing basis. The Company discloses its financial results on a quarterly basis which are subjected to limited review and publishes audited financial results on an annual basis. The financial statements for the year ended 31 March, 2025 have been prepared in accordance with the Indian Accounting Standards ("Ind AS") as required under the provisions of Section 133 of the Companies Act, 2013 read with rules made there under, as amended.

The provisions of SEBI Regulations for formation of Risk Management Committee are not applicable to the Company. However, as per section 134 (3) (n) of Companies Act 2013, the company regularly maintains a proper check in normal course of its business regarding risk management. Currently, the company does not identify any element of risk which may threaten the existence of the company.

The company does not fall under the criteria of net worth, turnover or profit for applicability of Corporate Social Responsibility (CSR) provisions as per Section 135 of the Companies Act, 2013, hence the same are not applicable to the company for the period under review.

As per Regulation 22 of the SEBI Regulations, 2015, in order to ensure that the activities of the Company & its employees are conducted in a fair & transparent manner by adoption of highest standards of professionalism, honesty, integrity and ethical behavior, the company has adopted a vigil mechanism policy. This policy is explained in "Corporate Governance Report" and is also posted on website of the company.

The Company has duly complied with provisions relating to the constitution of Internal Complaints

Committee under the Sexual Harassment of woman at Workplace (Prevention Prohibition and redressal)

Act, 2013 and the company has in place an Anti-Sexual Harassment policy in line with the requirement of the Act. The following is the summary of the complaints received and disposed off during the financial year:

The Company has complied with the provisions of the Maternity Benefit Act, 1961, to the extent applicable. All necessary measures have been undertaken to ensure adherence to the statutory requirements prescribed under the said Act.

Your Directors hereby place on record their appreciation for the services rendered by executives, staff and other workers of the Company for their hard work, dedication and commitment. During the year under review, relations between the Employees and the Management continued to remain cordial.

CHANGE In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations,IN KEY FINANCIAL RATIOS 2018, the Company is required to give details of changes in key sector-specific financial ratios.

None of the employees of your Company is in receipt of remuneration requiring disclosure pursuant to the provisions of Section 197, read with the Companies (Appointment and Remuneration of Managerial

Personnel) Rules, 2014; hence no such particulars are annexed.

Pursuant to the provisions of Regulation 25(7) of Listing Regulations, 2015, the Board has framed a policy to familiarize Independent Directors about the Company.

There were no material changes and commitments affecting the financial position of the Company occurred between the end of the financial year of the Company to which this financial statement relates and on the date of this report.

To the best of the Management's knowledge, no significant and material order(s) were passed by any regulator(s) or courts or tribunals which could impact the going concern status and company's operation in future.

The Company has a comprehensive Internal Financial Control system commensurate with the size, scale and complexity of its operation. The system encompasses the major processes to ensure reliability of financial reporting, compliance with policies, procedures, laws, and regulations, safeguarding of assets and economical and efficient use of resources. The Company has performed an evaluation and made an assessment of the adequacy and the effectiveness of the Company's Internal Financial Control System. The Statutory Auditors of the Company have also reviewed the Internal Financial Control system implemented by the Company on the financial reporting and in their opinion, the Company has, in all material respects, adequate Internal Financial Control system over Financial Reporting and such Controls over Financial Reporting were operating effectively as on 31^st March, 2025 based on the internal control over financial reporting criteria established by the Company. The policies and procedures adopted by the Company ensures he orderly and efficient conduct of its business and adherence to the company's policies, prevention and detection of frauds and errors, accuracy & completeness of the records and the timely preparation of reliable financial information. The Internal auditors continuously monitor the efficacy of internal controls with the objective of providing to the Audit Committee and the Board, an independent, objective and reasonable assurance on the adequacy and effectiveness of the organization's risk management with regard to the internal control framework.

Audit committee meets regularly to review reports submitted by the Internal Auditors. The Audit Committee also meet the Company's Statutory Auditors to ascertain their views on the financial statements, including the financial reporting system and compliance to accounting policies and procedures followed by the Company.

Your Company has adopted a Code of Conduct to regulate, monitor and report trading by designated persons and their immediate relatives as per the requirements under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. This Code of Conduct also includes code for practices and procedures for fair disclosure of unpublished price sensitive information which has been made available on the Company's website.

With reference to Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the disclosure of Statement of Deviation(s) or Variation(s) as per the said regulation is not applicable to the Company.

The Directors hereby acknowledge the dedication, loyalty, hard work, solidarity and commitment rendered by the employees of the Company during the year. They would also like to place on record their appreciation for the continued patronage, assistance and guidance received by the Company during the year from bankers, government authorities, shareholders and other stakeholders and Stock

Exchange authorities without whom the overall satisfactory performance would not have been possible.