Directors Report of Sainik Finance & Industries Ltd.

Mar 31, 2024

Your directors have immense pleasure in presenting 32^nd Annual Report of Sainik Finance & Industries Limited (‘the Company’) along with the Audited Annual Financial Statements and the Auditor’s Report thereon for the financial year ended 31^st March, 2024.

1. COMPANY OVERVIEW

Sainik Finance & Industries Limited is a public limited company which was incorporated on 22^nd August, 1991 with Registrar of Companies, NCT Delhi and Haryana (ROC) in the name & style of Garuda Clays Limited. Later on Ramanuj Leasing Limited which was incorporated on 2^nd January 1985 with the object to carry on leasing & finance activities, was merged with Garuda Clays Limited by order of the Hon’ble High Court of Delhi dated 1^st November 1999 and the said order was filed with ROC on 4^th December 2000. Thereafter, the name of Garuda Clays Limited was changed to the present name i.e. Sainik Finance & Industries Limited. The Company is presently engaged in non-banking finance activities and is registered with Reserve Bank of India as Non-Banking Finance Company (NBFC) without accepting public deposits. The Reserve Bank of India has issued its Certificate of Registration No. N.14.02967 dated 03 September 2003. The Company launched its public offer for equity shares and is presently listed on BSE Limited.

2. FINANCIAL RESULTS

(Amount in Rupees Lakhs)
Particulars	For the financial	For the financial
	year 2023-24	year 2022-23
Revenue from operations	1524.88	1802.45
Other income	7.71	21.74
Total Revenue	1532.59	1824.19
Profit before finance costs, depreciation and tax	1268.42	1727.72
Finance Costs	1000.56	1493.89
Profit before depreciation and tax	267.86	233.83
Depreciation for the financial year	-	-
Profit /(Loss) before tax	267.86	233.83
Direct Taxes ( current and deferred taxes)	67.40	242.58
Profit / (Loss) after Tax	200.46	(8.75)
Other Comprehensive Income for the year (net of tax)	1.40	(7.19)
Total Comprehensive income (Loss) for the year	201.86	(15.94)
Transfer to Reserve Fund	-	-

3. APPLICABILITY OF INDIAN ACCOUNTING STANDARDS (‘IND AS’) AND PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared and presented in accordance with Indian Accounting Standards (‘Ind AS’) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under section 133 of the Companies Act, 2013 (the Act) along with guidelines issued by the Securities and Exchange Board of India (SEBI) and the guidelines issued by the Reserve Bank of India (‘RBI’) as applicable to a Non-Banking Finance Company (‘NBFC’). The financial statements have been prepared on a going concern basis. The Company uses accrual basis of accounting except in case of significant uncertainties. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements are presented in Indian rupees.

4. TRANSFERS TO RESERVES AND PROVISIONS

Except as mentioned below, no amount was proposed to transfer to any reserve by the Company during the year under review.

During the year under review, the Company transferred an amount of Rs.40.09 Lakhs to Special Reserve Funds in order to comply with the provisions of Section 45IA read with section 45IC of the Reserve Bank of India Act, 1934 as the Company earned profit after tax of Rs.200.46 lakhs. As on 31^st March, 2024, the Company has made the provision of Rs.249.05 Lakhs for Sub Standard Assets and Rs.237.04 Lakhs for Standard Assets in order to comply with the guidelines of the Reserve Bank of India.

5. STATE OF COMPANY’S AFFAIRS

During the year under review, the Company was engaged in carrying on the business as Non- Banking Financial Company (without accepting public deposits) for which the certificate of registration has been obtained from the Department of NonBanking Supervision, Reserve Bank of India, New Delhi.

During the year under review, the Company’s total revenue has decreased to Rs.1,532.59 Lakhs as compared to Rs.1,824.19 Lakhs in the previous year. The Company also earned profit before tax of Rs.267.86 Lakhs as compared to the profit of Rs.233.83 Lakhs in the previous year. Total comprehensive income of the Company is Rs.201.86 Lakhs as compared to total comprehensive losses of Rs.15.94 Lakhs during previous year.

6. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

The Company neither is subsidiary of any other company nor having any subsidiary / joint venture / associate company in India and abroad during the year under review.

7. NON-PERFORMING ASSETS OF THE COMPANY

Your Company is in adherence to the provisions of Indian Accounting Standards (Ind AS) with respect to computation of Stage-3 Assets Non- performing assets (NPA). Your Company’s assets have been classified based on expected performance. Exposure at Default (EAD) is the total amount outstanding including accrued interest as on the reporting date.

During the year under review, your Company was able to ascertain its gross NPAs at Rs.249.05 Lakhs as compared to Rs.261.25 Lakhs in previous year. Your Company reviews the delinquency and loan portfolio on regular basis. Further, the information on the business overview and outlook and state of affairs of your Company have been discussed in detail in the MDA which forms part of this Annual Report.

8. SHARE CAPITAL OF THE COMPANY

The Authorised share capital of the Company is Rs.1100.00 Lakhs divided into 11000000 Equity shares of Rs.10/- each. Issued, Subscribed and Paid up Share Capital of the Company is Rs.1088.00 Lakhs divided into 10880000 Equity Shares of Rs.10/- each fully paid up.

Out of the above said issued and paid up shares capital, 9478049 Equity shares being 87.11% of the Company’s paid up equity shares capital are in dematerialized form as on 31^st March, 2024 and balance 1401951 Equity Shares being 12.89% of the Company’s paid up equity shares capital are in physical form. However, 100% shareholdings of the promoter and promoters group are in dematerialised form. The Company & its RTA frequently, in order to comply with the provisions of SEBI circular’s issued from time to time, request all the shareholders who hold equity shares in physical form to get their equity shares dematerialised with their depository at earliest. Our Registrar & Transfer Agent is M/s Indus Shareshree Private Limited (Erstwhile known as Indus Portfolio Private Limited), having their communication office at G-65, Bali Nagar, New Delhi -110015.

9. PAYMENT OF DIVIDEND

Your directors do not recommend any dividend for payment to the shareholders / members of the Company for the financial year ended on 31^st March, 2024.

10. DIRECTORS & KEY MANAGERIAL PERSON (KMP) OF THE COMPANY

As on date, the Board of the Company comprises of Six Directors, consisting of three Independent Directors (including one Women Independent Director) and three Non-Executive Non Independent Directors who bring in a wide range of skills and experience to the Board. Name, designation and DIN of the Board members of the Company are given below:

Name of Director	Designation	DIN
Sh. Rudra Sen Sindhu	Non- Executive Non-Independent Director	00006999
Sh. Kuldeep Singh Solanki	Non- Executive Non-Independent Director	00009212
Sh. Sarvesh Sindhu	Non- Executive Non-Independent Director	06545787
Sh. Ramesh Shah	Non- Executive Independent Director	00029864
Smt. Nishi Sabharwal	Non- Executive Independent Director	06963293
Sh. Bharat Sinh	Non- Executive Independent Director	00347364

In term of the Section 152 of the Act and Articles of Association of the Company, Sh. Kuldeep Singh Solanki (DIN-00009212), Non- Executive director of the Company, retires by rotation at ensuing Annual General Meeting and being eligible, offered himself for re-appointment. Your directors recommend his re-appointment, as Non-Executive director of the Company, for approval of the members at the ensuing AGM.

During the year under review, none of the directors has been appointed and resign from the board of directors of the Company. The Company also appointed whole time Key Managerial Personnel in term of the provisions of Section 203 of the Act read with rules made thereunder. As on date, the following are the key managerial personnel of the Company:

a) Sh. Chandra Datt - Chief Executive Officer

b) Sh. Jagdish Chandra - Chief Financial Officer

c) Sh. Piyush Garg - Company Secretary

11. DECLARATION BY INDEPENDENT DIRECTORS

The independent directors have submitted the declaration of independence stating that they meet the criteria of independence as provided under section 149(6) of the Act read with regulation 16 of the SEBI Listing Regulations, as amended from time to time. The independent directors have also confirmed compliance with the provisions of rule 6 of Companies (Appointment and Qualifications of Directors) Rules, 2014, as amended, relating to inclusion of their name in the databank of independent directors.

The Board took on record the declaration and confirmation submitted by the independent directors with regard to meeting the prescribed criteria of independence, after undertaking due assessment of the veracity of the same in terms of the requirements of regulation 25 of the SEBI Listing Regulations.

During the year under review, non-executive independent directors of the Company had no pecuniary relationship or transactions with the Company, other than the sitting fees, commission and reimbursement of expenses incurred by them for the purpose of attending meetings of the Company.

12. COMPLIANCE WITH CODE OF CONDUCT

All Board members and senior management personnel have affirmed compliance with the Company’s Code of Conduct during the year under review. A declaration to this effect signed by the Chief Executive Officer is included in this Annual Report.

13. PERFORMANCE EVALUATION OF THE BOARD OF DIRECTORS, ITS COMMITTEE AND INDIVIDUAL DIRECTORS.

In compliance with the requirement of the Companies Act, 2013 and the SEBI Listing Regulations, as amended from time to time, the Board of Directors on annual basis evaluates the functioning of the Board, its committees, and of the Individual Directors (including Independent Directors). The Board as a whole and the committee thereof were being evaluated on various parameters including but not limited to their compositions, experience, qualifications, diversity, roles and responsibility of each and every directors towards stakeholders, strategic participation, governance compliances, culture and dynamics and quality of relationship between Board Members and the Management.

The individual directors including independent directors are also evaluated on the basis of their qualifications, experience, knowledge and their competency and while evaluating the performance of each and every director individually, the Board also gives utmost check to their ability to work as team, commitment towards the functions assigned, contribution and availability at Board Meeting and other business matters etc.

The review concluded by affirming that the Board as a whole, the committee(s), and the individual director continued to display a commitment to good governance by ensuring a constant improvement of processes and procedures and contributed their best in the overall growth of the organization.

14. REMUNERATION POLICY

The Board on the recommendation of the Nomination and Remuneration Committee adopted a “Policy on Nominations and Remuneration for Directors, Key Managerial Executives, Senior Management and other Employees”, which, inter-alia, lays down the criteria for identifying the persons who are qualified to be appointed as directors and / or Senior Management Personnel of the Company, along with the criteria for determination of qualification, positive attributes independence of a director and remuneration of directors, KMPs, Senior Management and other employees and their evaluation and includes other matters, as prescribed under the provisions of Section 178 of the Act and SEBI Listing Regulations. The “Policy on Nominations and Remuneration for Directors, Key Managerial Executives, Senior Management and Other is available on the Company’s website www.sainikfinance.com.

Disclosure under section 197 (12) of the Companies Act, 2013 read with rules made thereunder

Disclosures with respect to the remuneration of Directors and employees as required under Section 197 of the Act and Rule 5 (1) Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (Rules) is given below:

The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year;	Name of the Director	Ratio to the median
	N.A.	N.A.
The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year;	Name of Director / CS/ CFO	% Increase
	Jagdish Chandra, CFO	6%
	Chandra Datt, CEO	5%.
	Piyush Garg, CS	15%.
The percentage increase in the median remuneration of employees in the financial year;	NIL
The number of permanent employees on the rolls of Company at end of the financial year under review;	5
Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration;	NIL
Affirmation that the remuneration is as per the remuneration policy of the company.	Yes; the remuneration paid to KMP is as per the Remuneration Policy of the Company.

None of employees of the Company has received remuneration of Rs.1,02,00,000 per annum and Rs.8,50,000 per month during the financial under review. Details of employees remuneration as required under provisions of section 197 of the Companies Act, 2013 and Rule 5(2) and 5(3) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are available at the registered office of the Company during working hours 21 days before the Annual General Meeting and shall be made available to any shareholders on their request in written.

15. BOARD MEETINGS HELD DURING THE YEAR UNDER REVIEW

During the year under review, Four (4) Board Meetings were convened and held. The details of Board and Committees meetings held during the year under review are given in the Corporate Governance Report attached herewith. The maximum interval between any two Board and Audit Committee meetings did not exceed 120 days as prescribed by the Companies Act, 2013 and SEBI Regulations.

Additionally, a meeting of the Independent Directors of the Company was held on 12^th February, 2024, with the participation of Independent Directors of the Company at the meeting.

16. AUDIT COMMITTEE

The Audit Committee comprises of Smt. Nishi Sabharwal (Chairperson), Sh. Rudra Sen Sindhu (Member), Sh. Bharat Sinh (Member) and Sh. Ramesh Shah (Member). During the year, all the recommendations made by the Audit Committee were accepted by the Board.

17. STAKEHOLDERS’ RELATIONSHIP COMMITTEE

The Stakeholders’ Relationship Committee comprises of Sh. Rudra Sen Sindhu (Chairperson), Sh. Kuldeep Singh Solanki (Member) and Sh. Bharat Sinh (Member).

18. NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee comprises of Smt. Nishi Sabharwal (Chairperson), Sh. Bharat Sinh (Member) Sh. Rudra Sen Sindhu (Member).

19. CORPORATE SOCIAL RESPONSIBILITIES COMMITTEE

The Corporate Social Responsibilities Committee comprises of Sh. Rudra Sen Sindhu (Chairperson), Sh. Kuldeep Singh Solanki (Member) and Smt. Nishi Sabharwal (Member).

20. DIRECTORS RESPONSIBILITY STATEMENT:

The Board of Directors acknowledges the responsibility for ensuring compliance with the provisions of section 134(3)(c) read with section 134(5) of the Companies Act, 2013 in the preparation of the Financial Statement for the financial year ended on 31^st March, 2024 and state:

i) That in the preparation of Annual Accounts for the financial year ended as at 31^st March, 2024, the applicable Accounting Standards have been followed along with proper explanation relating to the material departures.

ii) That the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the financial year ended as at 31^st March, 2024 and of the profit and loss of the Company for the financial year ended on 31^st March, 2024.

iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the Assets of the Company and for preventing and detecting fraud or other irregularities.

iv) That the Directors have prepared the Annual Accounts on a “Going Concern basis”.

v) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

vi) There is a proper system to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory and secretarial auditors and external consultants, including audit of internal financial controls over financial reporting by the statutory auditors, and the reviews performed by management and the relevant board committees, including the audit committee, the board is of the opinion that the Company’s internal financial controls were adequate and effective during financial year 2023-24

21. PUBLIC DEPOSITS

The Company has not invited or accepted any public deposits within the meaning of Section 73 of the Companies Act, 2013 and the rules made thereunder and section 45-I(bb) of the Reserve Bank of India Act, 1934 during the year under review. The Company does not hold any public deposit as on date and will not accept the same in future without the prior approval of Reserve Bank of India in writing.

22. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Company, being an NBFC registered with the RBI and engaged in the business of giving loans in ordinary course of its business, is exempt from complying with the provisions of section 186 of the Act read with rules made thereunder, with respect to loans, investment and guarantees etc. Accordingly, the Company is exempted from complying with the requirement to disclose in the financial statement / this report the full particulars of the loans given, investment made or guarantee given or security provided.

23. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has proper and adequate system of internal financial control geared towards achieving efficiency in its operations, safeguarding assets, optimum utilization of resources and compliance with statutory regulations. The Company has an internal control system, commensurate with the size, scale and complexity of its operations/ business. Testing of such internal control measures and systems forms a part of internal audit function. The Internal Auditors of the Company conduct audits of various departments based on an annual audit plan covering key areas of operations. Internal Audit reviews and evaluates the adequacy and effectiveness of internal controls, ensuring adherence to operating guidelines and systems and recommending improvements for strengthening them. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board. The Audit Committee of the Board of Directors reviews the adequacy of internal financial controls. This has improved the management of the affairs of the Company and strengthened transparency and accountability. The Management ensures adherence to all internal financial control policies and procedures as well as compliance with regulatory

guidelines. All recommendations & suggestions which have been received from the internal auditors of the Company are taken on record and are suitably implemented by the Management. However, no significant audit observations and recommendations have been received from the internal auditors of the Company which shall have major financial impact to the Company.

24. AUDITORS OF THE COMPANY

a) Statutory Auditors:

Pursuant to the provisions section 139, 142 and other applicable provisions of the Companies Act, 2013 and the rules made thereunder and pursuant to the recommendations of the Audit Committee of the Board of Directors of the Company, M/s. Kumra Bhatia & Co. Chartered Accountants, New Delhi (having Firm Regn.No.002848N) have been appointed as the Statutory Auditors of the Company in its 30^th AGM of the Company held on 30^th September, 2022 for the first term of consecutive five years from the conclusion of 30^th AGM till the conclusion of 35^th AGM of the Company to be held for the financial year ended 31^st March, 2027, at a remuneration as may be mutually agreed between the Board and the Statutory Auditors.

Besides the audit services, the Company also obtain certifications from the Statutory Auditors under various statutory regulations and certifications required by clients, banks, statutory authorities, audit related services and other permissible non-audit services as required from time to time, for which they will be remunerated separately on mutually agreed terms, as approved by the Board in consultation with the Audit Committee.

b) Statutory Auditors Report:

The Statutory Auditors have not made any adverse comments or given any qualification, reservation or adverse remarks or disclaimer in their Audit Report on the Annual Financial Statements for Financial Year 2023-24. Audit Report & the notes to the financial statement referred to in the Auditors’ Report are self -explanatory and do not call for any further comments. Further, the Statutory Auditors have not reported any fraud in terms of Section 143(12) of the Companies Act, 2013

c) Secretarial Auditors:

Pursuant provisions of section 204 of the Companies Act 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Company has, at its meeting held on 11^th August, 2023 appointed M/s Rakesh Kumar & Associates, a firm of Company Secretaries in practice to undertake the Secretarial Audit of the Company and to issue / submit Secretarial Audit Report & Secretarial Compliance Report for the financial year 2023-24.

d) Secretarial Audit Report

The Secretarial Audit Report submitted by the Secretarial Auditor for the financial ended 31^st March, 2024 in Form MR-3 is annexed as an Annexure- A and is forming integral part of this report. Such Secretarial Auditors’ report is also selfexplanatory and does not contain any qualifications, reservations or adverse remarks or disclaimer.

25. CERTIFICATE FROM PRACTISING COMPANY SECRETARY WITH REGARDS TO NON DISQALIFICATION OF DIRECOTRS

A certificate from M/s Rakesh Kumar & Associate, Practicing Company Secretary to the effect that none of the directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as directors of the Company by the Ministry of Corporate Affairs, Securities and Exchange Board of India or any other statutory authority is attached herewith as Annexure -B and is forming integral part of Corporate Governance Report and this report.

26. FAMILIARIZATION PROGRAMME FOR THE INDEPENDENT DIRECTORS

With an aim to provide insights into the Company to enable the Independent Directors to understand its business in depth and contribute significantly, a familiarization program has been designed for the Independent Directors. Pursuant to Regulation 25(7) of SEBI Listing Regulation, the Company makes detailed presentations to the Board including Independent Directors, on the Company’s operation and business plans, the nature of industry in which Company operates, and model of respective businesses, major risks involved, if any and risk management strategy of the Company.

The Independent Directors are made aware with their duties, role, responsibilities and liabilities at the time of their appointment / reappointment through a formal letter of appointment which stipulates various terms and conditions of their engagement apart from clarifying their roles and responsibilities

During the year under review the Company also organised various programme to familiarise independent directors with regard to nature of industry in which company operates, business model of the company, their roles, rights and responsibilities etc. details of which are on the web link of website of the company i.e. "http://www.sainikfinance.com/2023/ SFIL Details%20of%20Familiarisation%20Programmes%20imparted%20to%20Independent%20Directors 2024.pdf" SFIL Details of Familiarisation Programmes imparted to Independent Directors 2024.pdf (sainikfinance.com)

27. CODE OF CONDUCT

The Board of directors has approved a Code of Conduct which is applicable to the members of the Board and all employees in the course of day to day business operations of the Company. The Code has been placed on the Company’s website www.sainikfinance.com. The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. All the Board Members and the Senior Management personnel have confirmed compliance with the Code.

28. VIGIL MECHANISM / WHISTLE BLOWER POLICY

Pursuant to the provisions of section 177(9) & (10) of the Companies Act, 2013 read with the rules made thereunder and pursuant to the provision of SEBI (Listing Obligations and Disclosure Requirements), 2015, the Company has established a Vigil Mechanism to be known as the ‘Whistle Blower Policy’ for its Directors and Employees, to report instances of unethical behaviour, actual or suspected, fraud or violation of the Company’s Code of Conduct. The aim of the policy is to provide adequate safeguards against victimization of Whistle Blower who avails of the mechanism and also provide direct access to the Chairman of the Audit Committee, in appropriate or exceptional cases.

Accordingly, Vigil Mechanism / Whistle Blower Policy have been formulated with a view to provide a mechanism for the directors and employees of the Company to approach the ethics officer or the Chairman of the Audit Committee of the Company. The purpose of this policy is to provide a framework to promote responsible and secure whistle blowing. It protects employees willing to raise a concern about serious irregularities within the Company. During the financial year 2023-24, no such complaint of unethical or improper activity has been received by the Company.

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

The particular as prescribed under Rule 8(3) of the Companies (Accounts) Rules, 2014 read with the provisions of Section 134(3) (m) of the Companies Act, 2013 are as follow:

A)	Conservation of energy-
	Sr. No.	Particular	Remark
	(i)	The steps taken or impact on conservation of energy;	Your Company carries out its business in an environmental friendly manner and is on the look-out for different ways & means to reduce the consumption of energy in its operations.
	(ii)	The steps taken by the company for utilizing alternate sources of energy;	The Company does not require any alternative sources of energy.
	(iii)	The capital investment on energy conservation equipment;	The Company’s operations do not require capital investment on energy conservation equipment.

B)	Technology absorption, adaption and innovation:
	Sr. No.	Particular	Remark
	(i)	The efforts made towards technology absorption;	The Company continues to use the latest technologies for improving the productivity and quality of its services.
	(ii)	The benefits derived like product improvement, cost reduction, product development or import substitution;	Not Applicable
	(iii)	In case of imported technology (imported during the last three years reckoned from the beginning of the financial year. The details of technology imported; The year of import; whether the technology been fully absorbed; If not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and	The Company’s operations do not require significant import of technology.
	(iv)	The expenditure incurred on Research and Development.	The Company’s operations do not require the expenditure on Research and Development

C) Foreign exchange earnings and Outgo

During the year under review, there was no Foreign Exchange Earnings and Foreign Exchange Outgo.

30. MATERIAL CHANGES AND COMMITMENTS, IF ANY

Apart from the information provided / disclosures made elsewhere in the Directors’ Report including annexures thereof, there are no material changes and commitments affecting the financial position of the Company, which occurred between the end of the financial year of the Company i.e. 31^st March, 2024 to which this financial statement relates and till date of this Report.

31. CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All contracts / arrangements / transactions entered by the Company during the financial year with related parties were in its ordinary course of business and on an arm’s length basis. The main business of the Company is financing & investment in securities etc. and granting loans to related or unrelated parties. All related party transactions that were entered into during the financial year as per compliance of provision of Companies Act, 2013 & SEBI regulations as certified by CEO & CFO of the Company forming part of Corporate Governance Report. All related party transactions are placed before the Audit committee for their consideration and approval. None of the transactions with related parties falls under the scope of section 188(1) of the Act. However, the related party transactions so entered are disclosed in note No.36 to Financial Statement of the Company as attached herewith. Further details of all related party transactions including material related party transaction are also given in AOC-2 attached herewith as Annexure- C is forming integral part of this Report. The Material related transactions have been duly approved by the Shareholders of the Company. The Policy on Materiality of Related Party Transactions and on dealing with Related Party Transactions duly approved by the Board of Directors of the Company has been placed on the Company’s website www.sainikfinance.com

32. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

In terms of the provisions of Regulation 34(2)(e) of the SEBI Listing Regulations, the Management’s Discussion and Analysis Report covering the performance and outlook of the Company is annexed herewith as Annexure-D and forming part of this Annual Report.

33. CORPORATE GOVERNANCE REPORT

The Company is committed to good Corporate Governance as the requirement of the Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As required under Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a detailed report on Corporate Governance together with certificate issued by M/s Rakesh Kumar & Associates, Practicing Company Secretary on compliance of conditions of Corporate Governance is annexed herewith as Annexure-E and is forming integral part of this Report.

34. CORPORATE SOCIAL RESPONSIBILITY (CSR)

During the year under review, the Company was not required to spend any amount on CSR activities because Company did not meet any of the criteria as provided under provision of section 135 of Companies Act, 2013 as amended and rules made thereunder and any amendment thereof for spending the money of CSR Activities. The Policy on CSR has been placed on the Company’s website www.sainikfinance.com

During the previous year ended 31^st March, 2023, the Company earned net profit calculated in accordance with the provisions of section 198 of the Companies Act, 2013 is Rs.233.83 lakhs. However, the Company’s average net loss for preceding three financial years is Rs.407.69 Lakhs. Hence, the Company did not require to spend any amount on CSR activities during the financial year 2023-24

The annual report on CSR activities prepared in prescribed format / annexure as per the Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 is attached herewith as Annexure-F and it shall be an integral part of Board Report.

35. DISCLOSURE RELATING TO MAINTENANCE OF COST RECORD

As the Company is Non-Banking Finance Company, the Central Government does not require to maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013. Hence, the provisions of Cost Audit are not applicable to the Company.

36. OBLIGATION OF COMPANY UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

In compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 notified on December 9, 2013, the Company has a policy for Prevention of Sexual Harassment of Women at Workplace and has complied with the provisions of this Act. During the financial year ended 31^st March 2024, no complaint of sexual harassment has been received by the Company during the year under review.

37. DISCLOSURE ABOUT THE SHARES ISSUED ON PREFERENTIAL BASIS, IF ANY.

During the year under review, your Company has not made any allotment of shares on preferential basis.

38. DISCLOSURE ABOUT SWEAT EQUITY SHARES AND ESOP SCHEME.

Your company has not issued sweat equity shares or given stock option in the year under review.

39. SECRETARIAL STANDARDS OF ICSI

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).

40. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTSOR TRIBUNAL

There are no significant and material orders passed by the regulators / courts/tribunal that would impact the going concern status of the Company and its future operations.

41. ANNUAL RETURN

In compliance with the provision of Section 92(3) and Section 134(3)(a) of the Companies Act, 2013, the copy of annual Return in Form MGT-7 as on 31^st March, 2024 is being placed on the website of the Company at www.sainikfinance.com

42. OTHER STATUTORY DISCLOSURES

a) The securities of the Company were not suspended from trading during the year under review on account of corporate actions or otherwise.

b) The Company has not defaulted in repayment of loans from banks and financial institutions. There were no delays or defaults in payment of interest / principle of any of its debt securities.

c) During year under review, there was no instance of one-time settlement with Banks or Financial Institutions. Therefore, as per rule 5(xii) of Companies (Accounts) Rules, 2014, reasons of difference in the valuation at the time of one-time settlement and valuation done while taking loan from the Banks or Financial Institutions are not reported.

d) The Securities of the Company are listed on BSE Limited, Mumbai. The listing fee for the financial year- 2024-25 has been paid.

e) During the year under review, the Company has neither made any application nor any proceeding were pending under the Insolvency and Bankruptcy Code, 2016 (“IBC Code”).At the end of the financial year, Company did not have any proceedings underIBC Code.

43. ACKNOWLEDGEMENT

The Board of Directors places its gratitude and appreciation for the support and cooperation from its members, the RBI and other regulators, banks, financial institutions and employees during the year under review. The directors also acknowledge with appreciation the support and co-operation rendered by various Government authorities and departments. Your Directors would also wish to place on record their deep sense of appreciation for the continued support of all the investors of the Company.

---

Mar 31, 2015

Dear Members,

The directors have pleasure in presenting their 23rd Annual Report and the Audited Statement of Accounts for the year ended on 31st March, 2015.

FINANCIAL RESULTS (Amount in Rs.)

Particulars 2014-15 2013-14

Net sales and other Income 95,025,102 62,216,377

Profit before financial costs, depreciation, and Tax 83,999,545 28,194,505

Finance Costs 51,753,008 22,040,962

Profit before depreciation and tax 32,246,537 6,153,543

Depreciation for the financial year 159,277 677,577

Profit /(Loss) before tax 32,087,260 5,475,966

Direct Taxes 12,453,043 3,789,591

Profit / (Loss) after Tax 19,634,217 1,686,375

Transfer to Reserve Fund 6,417,452 1,095,193

Taxes for earlier years 333,607 429,608

(The Company has transferred Rs. 6,417,452/- (Rupees Sixty Four Lacs Seventeen Thousands Four Hundred Fifty Two only) to Special Reserve Funds in order to comply with provisions of Reserve Bank of India Act, 1934.

2. OPERATIONS OF THE COMPANY

During the year under review, the company was engaged in carrying on the business as Non- Banking Financial Company without accepting public deposits for which the Certificate of Registration has been obtained from the Department of Non- Banking Supervision, Reserve Bank of India, New Delhi. Your directors also intend to diversify its operation into another area / business in order to make the Company more profitable.

3. PERFORMANCE REVIEW

During the year under review, the Company's total income has increased to Rs. 95,025,102/- from Rs. 62,216,377/- and profit (before tax) to Rs. 3,20,87,260/- from Rs.54,75,966/- in the previous year.

4. DIVIDEND

Your directors do not recommend any dividend for payment to the shareholders for the financial year ended on 31st March, 2015.

5. DIRECTORS

Mr. Kuldeep Singh Solanki, Director of the Company retires by rotation and being eligible, has offered himself for re-appointment. Your directors recommend his re-appointment as director of the Company.

During the year under review, Mr. Vivek Varma, an Independent Director has tendered his resignation from the Board due to his preoccupation w.e.f. 30th March, 2015 and Mrs. Renuka Hooda has been appointed as Woman Independent Director on the Board of the Company w.e.f. 30th March, 2015.

Mrs. Renuka Hooda (DIN 03611979), who was appointed as an additional director w.e.f. 30th March, 2015 on the Board of the Company in terms of Section 161 of the Companies Act, 2013 and who holds office up to the date of this Annual General Meeting and in respect of whom the Company has received a notice in writing from a member proposing her candidature for the office of Director, is proposed to be appointed as an Woman Independent Director of the Company for a period upto 29th March, 2020, not liable to retire by rotation.

The requisite resolution for the appointment of Mrs. Renuka Hooda as a Woman Independent Director is being proposed in the Notice of the ensuing Annual General Meeting for the approval of the Members.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed in Section 149(6) of the Companies Act, 2013 and clause 49 of the Listing Agreement.

As required under Clause 49 of the Listing Agreement with the Stock Exchange, the information on the particulars of the Directors proposed for appointment/ re-appointment has been given in the Notice of the Annual General Meeting.

Board Evaluation

Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Board has carried out an evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit Committee, Nomination and Remuneration Committee. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

Remuneration Policy

The Board has, on the recommendation of the Nomination and Remuneration Committee framed a policy for selection and appointment of directors, senior management and to fix their remuneration. The Nomination and Remuneration Policy is stated in the Corporate Governance Report.

Meetings

During the year under review, (8) Eight board meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between two board meetings was within the period prescribed under the Companies Act, 2013.

6. KEY MANAGERIAL PERSONNEL

Mr. Ashok Arora resigned as Company Secretary and Ms. Shagun Taneja (Membership No. 38841) was appointed as Company Secretary w.e.f. 31st March, 2015. Mr. Kapil Sharma was appointed as Chief Executive Officer and Mr. Jagdish Chandra was appointed as Chief Financial Officer of the Company w.e.f. 31st March, 2015.

7. DEMATERIALISATION OF SHARES:

74.38% of the Company's paid up equity share capital is in dematerialized form as on 31st March, 2015 and balance 25.62% is in physical form. The Company's Registrars & Transfer Agent is M/s Indus Portfolio Private Limited, having their communication office at G-65, Bali Nagar, New Delhi-110015.

8. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

As required under Clause 49 of the Listing Agreements with Stock Exchanges, the Management Discussion and Analysis Report is enclosed as a part of this report.

9. DIRECTORS RESPONSIBILITY STATEMENT:

The Board of Directors acknowledges the responsibility for ensuring compliance with the provisions of section 134(3)(c) read with section 134(5) of the Companies Act, 2013 and Clause 49(III)(D)(4)(a) of the listing agreement with Stock Exchanges in the preparation of the Financial Statement for the financial year ended on 31st March, 2015 and state:

i) That in the preparation of Annual Accounts for the financial year ended as at 31st March, 2015, the applicable Accounting Standards have been followed along with proper explanation relating to the material departures.

ii) That the Directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the financial year ended as at 31st March, 2015 and of the profit and loss of the Company for the financial year ended on 31st March, 2015.

iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the Assets of the Company and for preventing and detecting fraud or other irregularities.

iv) That the Directors have prepared the Annual Accounts on a Going Concern basis.

v) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

vi) There is a proper system to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

10. PUBLIC DEPOSITS

The Company has not invited or accepted any public deposits within the meaning of Section 73 of the Companies Act, 2013 and the rules made thereunder and section 45-I(bb) of the Reserve Bank of India Act, 1934 during the year under review. The Company does not hold any public deposit as on date and will not accept the same in future without the prior approval of Reserve Bank of India in writing.

11. PARTICULARS OF LOANS, GUARANTEES ORINVESTMENTS

The Company, being a non-banking finance company registered with the Reserve Bank of Indiaand engaged in the business of giving loans or finance & investment activities, is exempt from complying with the provisionsof section 186 of the Companies Act, 2013. Accordingly, the disclosures of the loans given asrequired under the aforesaid section have not been given in this Report.

12. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. Such Internal Control measures and systems are established to ensure the correctness of the transactions and safe guarding of the assets. The Management ensures adherence to all internal control policies and procedures as well as compliancewith regulatory guidelines. The Audit Committee of the Board of Directors reviews the adequacy of internal controls. Thishas improved the management of the affairs of the Company and strengthened transparency and accountability.No significant audit observations and recommendations have been received from the Internal Auditors of the Company.

13. AUDITORS REPORT

The Auditors' Report on Annual Financial Statement of the Company for the financial year ended on 31st March, 2015 is self- explanatory. Hence, no explanation is required to be given.

14. AUDITORS

a) Statutory Auditors:

Pursuant to Section 139, 142 and other applicable provisions of the Companies Act, 2013 and the Rules made thereunder, pursuant to the recommendations of the audit committee of the Board of Directors, and pursuant to the resolution passed by the members at the AGM held on 30th September, 2014, the appointment of M/s Kumra Bhatia & Co, Chartered Accountants, (bearing ICAI Registration No.002848N) as the auditors of the Company to hold office till the conclusion of the 25th AGM of the Company to be held for the financial year ending on 31st March 2017, is required to be ratified at the ensuing Annual General Meeting. Your Directors recommend ratification for their re-appointment.

b) Secretarial Auditors:

Pursuant provisions of section 204 of the Companies Act 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Company has, at its meeting held on 21st August, 2014 appointed M/s S.S. Bhati & Associates,a firm of Company Secretaries in practice to undertake the Secretarial Audit of the Company for the financial year 2014-15. The Secretarial Audit report is annexed herewith as "Annexure A".

15. EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as "Annexure B"

16. CORPORATE GOVERNANCE REPORT

The Company is committed to good Corporate Governance as the requirement of the Clause 49 of the Listing Agreement. As required under Clause 49 of the Listing Agreement, a detailed report on Corporate Governance together with Auditor's Certificate on compliance of conditions of Corporate Governance is annexed herewith as "Annexure - C" and is forming integral part of this Report.

17. RELATED PARTY TRANSACTIONS

The main business of the Company is financing & Investment in shares itc. and granting loans to related or unrelated parties. All related party transactions that were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. There are no related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company. All Related Party Transactions are placed before the Audit Committee for their approval. The material related party transactions for which the shareholders' approved is being sought, are mentioned in notice of Annual General Meeting. The details of all related parties transactions are annexed in AOC-2.

Your Board of Directors of the Company has, on the recommendation of the Audit Committee, adopted a policy to regulate transactions between the Company and its related parties, in compliance with the applicable provisions of the Companies Act 2013 and the rules made thereunder and the Listing Agreement. This Policy was considered and approved by the Board has been placed on the Company's website www.sainikfinance.com

18. CODE OF CONDUCT:

The Board of directors has approved a Code of Conduct which is applicable to the members of the Board and all employees in the course of day to day business operations of the company. The Code has been placed on the Company's website www.sainikfinance.com

The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. All the Board Members and the Senior Management personnel have confirmed compliance with the Code.

19. VIGIL MECHANISM / WHISTLE BLOWER POLICY

Pursuant to the provisions of section 177(9) & (10) of the Companies Act, 2013 read with the rules made thereunder and pursuant to the provision of clause 49 (II) (f) of Listing Agreement, the Company has established a vigil mechanism to be known as the 'Whistle Blower Policy' for its Directors and employees, to report instances of unethical behaviour, actual or suspected, fraud or violation of the Company's code of conduct. The aim of the policy is to provide adequate safeguards against victimization of whistle blower who avails of the mechanism and also provide direct access to the Chairman of the Audit Committee, in appropriate or exceptional cases.

Accordingly, Vigil Mechanism / Whistle Blower Policy have been formulated with a view to provide a mechanism for the Directors and employees of the Company to approach the Ethics Officer or the Chairman of the Audit Committee of the Company.

The purpose of this policy is to provide a framework to promote responsible and secure whistle blowing. It protects employees willing to raise a concern about serious irregularities within the Company.

20. PREVENTION OF INSIDER TRADING

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

All Board Directors and the designated employees have confirmed compliance with the Code.

21. BUSINESS RISK MANAGEMENT

Pursuant to section 134 (3) (n) of the Companies Act, 2013 & Clause 49(III) (VI) of the Listing Agreement, the Company has constituted a Business Risk Management Committee. The details of the committee and its terms of reference are set out in the Corporate Governance Report forming part of the Boards Report. At present the Company has not identified any element of risk which may threaten the existence of the Company.

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

During the year under review, the provisions of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 were not applicable to our Company. Hence, Statement detailing the particulars required under the said Section and rules are not being furnished. There was no foreign exchange earnings and outgo in the Company during the financial year.

23. CORPORATE SOCIAL RESPONSIBILITY (CSR)

During the year under review, provision of section 135 and Schedule VII of the Companies Act, 2013, pertaining to Corporate Social Responsibility are not applicable to our Company. Hence, details of expenditure of CSR Committee are not being furnished.

24. LISTING OF SECURITIES

Presently, the Securities of the Company are listed on Bombay Stock Exchange Limited, Mumbai. The listing fee for the financial year 2015-16 has been paid.

25. ACKNOWLEDGEMENTS

Your directors would like to place their grateful appreciation for the assistance and co-operation received from the Company's bankers during the year under review. The directors also acknowledge with appreciation the support and co-operation rendered by various Government Agencies and Departments. Your Directors would also wish to place on record their deep sense of appreciation for the continued support of all the investors of the Company.

By order of the Board of Directors For SAINIK FINANCE & INDUSTRIESLIMITED

Place : New Delhi Kuldeep Singh Solanki Rudra Sen Sindhu Dated: 28th August, 2015 Director Director DIN: 00009212 DIN: 00006999

---

Mar 31, 2014

Dear Members

The directors have pleasure in presenting their 22nd Annual Report and the Audited Statement of Accounts for the year ended on 31st March, 2014.

1. FINANCIAL RESULTS (Amount in Rs.)

Particulars 2013-14 2012-13

Net Sales and Other Income 62,216,377 70,518,441

Profit before financial costs, depreciation, and Tax 28,194,505 30,974,089

Finance Costs 22,040,962 31,338,130

Profit before depreciation and tax 6,153,543 (364,041)

Depreciation for the financial year 677,577 4,540,283

Profit/(Loss) before tax 5,475,966 (4,904,324)

Direct Taxes 3,789,591 2,111,846

Profit/(Loss) after Tax 1,686,375 (7,016,170)

Profit/(Loss) brought forward from last year 48,971,627 46,961,896

Provision for Bad & Doubtful Debts Written Back 12903480 8,143,110

Provision Written Back 534,982 882,791

Profit/(Loss) available for appropriation 64,096,464 48,971,627

Appropriation :

Transfer to Reserve Fund 1,095,193 -

Taxes for earlier years 429,608 -

Balance Carried Forward 62,571,663 48,971,627

(The Company has transferred Rs.10,95,193/-(Rupees Ten Lacs Ninety Five Thousands One Hundred Ninety Three only) to Special Reserve Fund as required under Section 45IC of the Reserve Bank of India Act, 1934).

2. OPERATIONS OF THE COMPANY

During the year under review, the company was engaged in carrying on the business as Non- Banking Financial Company without accepting public deposits for which the Certificate of Registration has been obtained from the Department of Non- Banking Supervision, Reserve Bank of India, New Delhi. Your directors also intend to diversify its operation into another area / business in order to make the Company more profitable.

3. DIVIDEND

Your directors do not recommend any dividend for payment to the shareholders for the financial year ended on 31st March, 2014.

4. DIRECTORS

Sh. Rudra Sen Sindhu, Director of the Company retires by rotation and being eligible, has offered himself for re-appointment. Your Directors recommend his re-appointment as Director of the Company.

In order to comply with the provisions of clause 49 of listing agreement, the Company has 2 independent directors out of total 4 directors of the Company. However, pursuant to the provisions of section 149 of the Companies Act, 2013, the Company shall have at least 1/3 of total numbers of directors as independent directors. As the provisions of section 149(10) of the Companies Act, 2013 (effective from 1st April, 2014), such independent directors shall hold office for a term of upto five consecutive years on the Board of a company; and shall be eligible for re-appointment on passing a special resolution by the shareholders of the Company for another term of upto five consecutive years on the Board. Such independent directors shall not be eligible to appoint as such for more than two consecutive terms of five years but shall be eligible for appointment after the expiration of three years ceasing to become an independent director. The provision of retirement by rotation as defined in the sub-section (6) and (7) of section 152 of the Companies Act 2013 shall not apply to such independent directors.

Therefore, Sh. Samai Singh and Sh. Vivek Varma, Directors of the Company who were appointed as nonexecutive independent directors and liable to retire by rotation under the provisions of erstwhile Companies Act, 1956, shall be reappointed as independent directors under the provisions of the Companies Act, 2013. They being eligible have offered themselves to be appointed as independent directors of the Company under the provisions of the Companies Act 2013. They have given declaration to the Board that they meet the criteria of independence as provided under section 149(6) of the Companies Act, 2013. Consequently, your directors recommend their appointment as independent directors of the Company.

5. PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956

None of the employees of the Company has drawn salary in excess of the limits prescribed in the said section of Companies Act, 1956 read with Companies (Particular of Employees) Rules, 1975 and hence no such list is being provided.

6. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to requirement under Section 217(2AA) of the Companies (Amendment) Act, 2000 with respect to Directors Responsibility Statement, it is hereby confirmed:

i) That in the preparation of Annual Accounts for the financial year ended as at 31st March, 2014, the applicable Accounting Standards have been followed along with proper explanation relating to the material departures.

ii) That the Directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the financial year ended as at 31st March, 2014 and of the profit or loss of the Company for the financial year ended on 31st March, 2014.

iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies (Amendment) Act, 2000 for safeguarding the Assets of the Company and for preventing and detecting fraud or other irregularities.

iv) That the Directors have prepared the Annual Accounts on a Going Concern basis.

7. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO

During the year under review, the provisions of Section 217(1) (e) of the Companies Act, 1956 were not applicable to our Company. Hence, Statement detailing the particulars required under the said Section read with the Companies (Disclosures of particulars in the report of Board of Directors) Rules, 1988 are not being furnished. There was no foreign exchange earnings and outgo in the Company during the financial year.

8. PUBLIC DEPOSITS

The Company has not invited or accepted any public deposits within the meaning of Section 58A & 58AA of the Companies Act, 1956 and section 45-I(bb) of the Reserve Bank of India Act, 1934 during the year under review. The company does not hold any public deposit as on date and will not accept the same in future without the prior approval of Reserve Bank of India in writing.

9. COST AUDITORS

The Company was not required to appoint Cost Auditors for the financial year 2013-14 because the Company''s plants have been closed permanently with effect from 31st July, 2012. However, cost audit report of the Company for the financial year ended on 31st March, 2013 had been filed during the financial year under review.

10. AUDITORS REPORT

The Auditors'' Report on Annual Accounts of the Company for the financial year ended on 31st March, 2014 is self- explanatory. Hence, no explanation is required to be given.

11. AUDITORS OF THE COMPANY

M/s Kumra Bhatia & Co., Chartered Accountants, New Delhi (bearing ICAI Registration No.002848N) retiring Statutory Auditors of the Company are proposed to be re-appointed as Statutory Auditors of the Company from the conclusion of the ensuing Annual General Meeting (AGM) till the conclusion of the twentyfifth AGM of the Company to be held for the financial year ended on 31st March, 2017, subject to ratification of their appointment by the members at every AGM held after the ensuing AGM. As required under Section 139 of the Companies Act, 2013, the Company has obtained a written consent from M/s Kumra Bhatia & Co., Chartered Accountants, to such appointment and also a certificate to the effect that their appointment, if made, would be in accordance with Section 139(1) of the Companies Act, 2013 and the rules made there under, as may be applicable. Your directors recommend their re-appointment as statutory auditors of the Company.

12. CORPORATE GOVERNANCE REPORT

The Company is committed to good Corporate Governance as the requirement of the Clause 49 of the Listing Agreement. As required under Clause 49 of the Listing Agreement, a detailed report on Corporate Governance together with Auditor''s Certificate on compliance of conditions of Corporate Governance is annexed herewith as Annexure - 1 and is forming integral part of this Report.

13. CONSTITUTION OF COMMITTEES OF THE BOARD OF DIRECTORS

The Company, in order to comply with the provisions of the Companies Act, 2013 read with the rules framed thereunder and the provision of the listing agreement, has constituted / renamed various committees of the Board of Directors of the Company i.e. Nomination and Remuneration Committee, an Audit Committee and Stakeholders Relationship Committee.

14. LISTING OF SECURITIES

Presently, the Securities of the Company are listed on Bombay Stock Exchange Limited, Mumbai. The listing fee for the financial year 2014-15 has been paid.

15. ACKNOWLEDGEMENTS

Your directors would like to place their grateful appreciation for the assistance and co-operation received from the Company''s bankers during the year under review. The directors also acknowledge with appreciation the support and co-operation rendered by various Government Agencies and Departments. Your Directors would also wish to place on record their deep sense of appreciation for the continued support of all the investors of the Company.



By order of the Board of Directors For SAINIK FINANCE & INDUSTRIES LIMITED

Place : New Delhi Kulseep Singh Solanki Rudra Sen Sindhu Dated : 21-08-2014 Director Director DIN: 00009212 DIN: 00006999

---

Mar 31, 2013

The members,

The directors have pleasure in presenting their 21st Annual Report and the Audited Statement of Accounts for the year ended on 31st March, 2013.

1. FINANCIAL RESULTS

(Amount in Rs.)

Particulars 2012-13 2011-12

Net Sales and Other Income 70,518,441 103,161,602

Profit before financial costs, depreciation, and Tax 30,974,089 6,102,697

Finance Costs 31,338,130 14,290,823

Profit before depreciation and tax (364,041) (8,188,126)

Depreciation 4,540,283 5,778,530

Profit /(Loss) before tax (4,904,324) (13,966,656)

Tax 2,111,846 174,197

Profit / (Loss) after Tax (7,016,170) (14,140,853)

Profit/ (Loss) brought forward from last year 46,961,896 52,565,744

Provision for Bad & Doubtful Debts Written Back 8,143,110 8,113,558

Provision Written Back 882,791 588,636

Profit /(Loss) available for appropriation 48,971,627 47,127,085 Appropriation :

Transfer to Reserve Fund

Taxes for earlier years 165,188

Balance Carried Forward 48,971,627 46,961,896

(The Company did not transfer any amount to Special Reserve Fund as required under Section 45IC of the Reserve Bank of India Act, 1934 because it did not earn any profit during the year under review.)

2. OPERATIONS OF THE COMPANY

During the year under review, the Board of Directors, vide their circular resolution passed on 1st June, 2012, has decided to suspend the production of the cement & pole plants with immediate effect because of the erratic power supply, high per unit cost of captive generation of power, non-availability of quality Lime stone etc. Such cement & pole plants have been permanently closed down with effect from 31st July, 2012. All scraps of plant and machineries have been disposed off/ sale out during the current year. Further, in order to find out new business opportunities in other sectors for the Company, the application had been submitted with the Director, Town and Country Planning Department Haryana, Chandigarh in respect to getting the Change of Land Use (CLU) of its Land situated at 94-8 K.M. Milestone, Delhi- Jaipur, N.H.- 8, Village-Jaliawas, Bawal (Rewari) Haryana. The said application is still pending. During the current year the Company has got

itself deregistered under the Factories Act 1948 because the Plants have been closed permanently. The Company also made an application with Dakshin Haryana Bijli Vitran Nigam, Haryana in respect to reduction of electricity load.

Presently the Company is engaged in carrying on the business as Non- Banking Financial Company without accepting public deposits. Therefore, it will continue to carrying on finance activities, for which the Certificate of Registration has been obtained from the Department of Non- Banking Supervision, Reserve Bank of India, New Delhi. Your directors also intend to diversify its operation into another area / business in order to make the Company profitable.

3. DIVIDEND

Your directors do not recommend for payment of any dividend for the financial year ended on 31st March, 2013.

4. DIRECTORS

Sh. Rudra Sen Sindhu and Sh. Kuldeep Singh Solanki, Directors of the Company retire by rotation and being eligible, have offered themselves for re-appointment. Your Directors recommend their re-appointment as Directors of the Company.

Sh. Gurinder Mohan Singh Johar has resigned from the Board of Directors w.e.f. 26th March, 2013 and Sh. Punit Ghai, Sh. Virendra Kumar Sehgal and Lt. Gen. Gorakh Nath, AVSM/PVSM (Rted.), Directors of the Company have resigned from the Board of Directors of the Company w.e.f. 31st July 2013.

Further, Sh. Samai Singh and Sh. Vivek Varma were appointed as additional directors of the Company w.e.f. 31st July, 2013 and their office will expire on the date of ensuing Annual General Meeting of the Company scheduled to be held on Monday, 30th day of September, 2013. They being eligible, have offered themselves to be appointed as Directors of the Company. The notices under Section 257 of the Companies Act, 1956 have been received by the Company from them offering their candidatures for the post of directors whose office is liable to retire by rotation. As they do not have any interest in any manner in the Company, hence they will act as the independent directors of the Company. Your directors recommend their appointment.

5. PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956

None of the employees of the Company has drawn salary in excess of the limits prescribed in the said section of Companies Act, 1956 read with Companies (Particular of Employees) Rules, 1975 and hence no such list is being provided.

6. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to requirement under Section 217 (2AA) of the Companies (Amendment) Act, 2000 with respect to Directors Responsibility Statement, it is hereby confirmed:

1) That in the preparation of Annual Accounts for the financial year ended as at 31st March, 2013, the applicable Accounting Standards have been followed along with proper explanation relating to the material departures.

2) That the Directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the financial year ended as at 31st March, 2013 and of the profit or loss of the Company for the financial year ended on 31st March, 2013.

3) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the Assets of the Company and for preventing and detecting fraud or other irregularities.

4) That the Directors have prepared the Annual Accounts on a Going Concern basis.

7. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO

Details of energy conservation along with the information in accordance with Section 217(1) (e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1998 is annexed herewith as Annexure -I and is forming integral part of this report. There was no foreign exchange earning & outgo during the year.

8. PUBLIC DEPOSITS

The Company has not invited or accepted any public deposits within the meaning of Section 58A & 58AA of the Companies Act, 1956 and section 45-I (bb) of the Reserve Bank of India Act, 1934 during the year under review. The company does not hold any public deposit as on date and will not accept the same in future without the prior approval of Reserve Bank of India in writing.

9. COST AUDITORS

The Company has appointed Cost Auditors in terms of order issued by Central Government under section 233B of the Companies Act, 1956 to get the cost audit of the cost records of the Company for the financial year 2012-13. The Cost Audit Report shall be filed by the Cost Auditors in due course for the financial year 2012-13. Further the appointment of Cost Auditors for the financial year 2013-14 is not required because the cement plant has been closed permanently during the previous year.

10. AUDITORS REPORT

The Auditors'' Report on Annual Accounts of the Company for the year ended on 31st March, 2013 is self- explanatory. Hence, no explanation is required to be given.

11. AUDITORS OF THE COMPANY

M/s Kumra Bhatia & Co., Chartered Accountants, New Delhi, retiring Statutory Auditors of the company retire at the conclusion of this annual general meeting and being eligible, have offered themselves for re- appointment. The Company has received a certificate from them pursuant to Section 224(1B) of the Companies Act 1956, confirming their eligibility for re-appointment. Your directors recommend their re-appointment for the period commencing from the conclusion of this Annual General Meeting till the conclusion of the next Annual General Meeting of the Company.

12. INDUSTRIAL RELATIONS

Industrial relations continue to be cordial throughout the year and the directors express their sincere appreciation for the excellent team work with which the employees of the Company have worked during the year.

13. CORPORATE GOVERNANCE REPORT

The Company is committed to good Corporate Governance as the requirement of the Clause 49 of the Listing Agreement. As required under Clause 49 of the Listing Agreement, a detailed report on Corporate Governance together with Auditor''s Certificate on compliance of conditions of Corporate Governance is annexed herewith as Annexure - II and is forming integral part of this Report.

14. CONSTITUTION OF AUDIT COMMITTEE

The Company, in order to comply with the provision of section 292A of the Companies Act, 1956 and the provision of the listing agreement, has constituted an Audit Committee of the Board of Directors of the Company.

15. LISTING OF SECURITIES

Presently, the Securities of the Company are listed on Bombay Stock Exchange Limited, Mumbai. The listing fee for the financial year 2013-14 has been paid.

16. ACKNOWLEDGEMENTS

Your directors would like to place their grateful appreciation for the assistance and co-operation received from the Company''s bankers during the year under review. The directors also acknowledge with appreciation the support and co-operation rendered by various Government Agencies and Departments. Your Directors would also wish to place on record their deep sense of appreciation for the continued support of all the investors of the Company.

By order of the Board of Directors

For SAINIK FINANCE & INDUSTRIES LIMITED

Place : New Delhi Kuldeep Singh Solanki Rudra Sen Sindhu

Dated : 27th August, 2013 (Director) (Director)

---

Mar 31, 2012

The directors have pleasure in presenting their 20th Annual Report and the Audited Statement of Accounts for the year ended on 31st March, 2012.

1. FINANCIAL RESULTS (Amount in Rs.)

Particulars 2011-12 2010-11

Net Sales and Other Income 103,161,602 102,198,384

Profit before financial costs, depreciation, and Tax 6,102,697 (5,186,685)

Finance Costs 14,290,823 1,379,593

Profit before depreciation and tax (8,188,126) (6,566,278)

Depreciation 5,778,530 5,843,618

Profit/(Loss) before tax (13,966,656) (12,409,896)

Tax 174,197 (486,822)

Profit/(Loss) after Tax (14,140,853) (11,923,074)

Profit/(Loss) brought forward from last year 52,565,744 59,119,271 Provision for Bad & Doubtful Debts Written Back 8,113,558 5,369,548

Profit/(Loss) available for appropriation 46,538,449 52,565,744

Appropriation :

Transfer to Reserve Fund - -

Taxes for earlier years 165,188 -

Balance Carried Forward 46,373,260 52,565,744

(The Company did not transfer any sum to Special Reserve Fund as required under Section 45IC of the Reserve Bank of India Act, 1934 because it did not earn any profit during the year under review.)

2. DIVIDEND

Your directors do not recommend any dividend for the financial year under report.

3. OPERATIONS OF THE COMPANY

During the year under review, your company was engaged in cement & PSC Pole manufacturing activities and also engaged in carrying on the business as Non - Banking Financial Company. Due to the erratic power supply, high per unit cost of captive generation of power, non-availability of quality Lime stone, the Cement Plant could not meet the economies of scale. The production of cement & pole plant was reduced since last three years and became very difficult to run the same. In order to control heavy losses to be incurred to the Company, it was necessary to suspend the production of Cement & Pole division. Therefore, the Board of Directors, vide their resolution passed on 1st June, 2012, has taken decision to suspend the production of the Cement & Pole Plant with immediate effect which was culminated into closure of Cement & Pole Plant with effect from 31st July, 2012.

Your directors intend to diversify its operation into another area/business in order to increase the profit of the Company.

The Company will continue to carrying on finance activities, for which the Certificate of Registration has been obtained from the Department of Non- Banking Supervision, Reserve Bank of India, New Delhi.

4. DIRECTORS

Mr. Virender Kumar Sehgal and Mr. Gurinder Mohan Singh Johar, Directors of the Company retire by rotation and being eligible, have offered themselves for re-appointment. Your Directors recommend their re-appointment as Directors of the Company.

During the year under review, Mr. Ganesh Chandra Mrig resigned from the Board of the Directors of the Company w.e.f. 12th November, 2011, Mr. Vir Sen Sindhu and Col. Girdhari Singh AVSM (Retd.) resigned from the directorship of the Company w.e.f. 29th December, 2011. Col. Girdhari Singh AVSM (Retd.) was the member of the Shareholder's/Investor's Grievance Committee. Therefore, the Shareholder's/Investor's Grievance Committee was re-constituted by introducing Sh. G.M.S. Johar, Independent Director as the member of the committee in place of Col. Girdhari Singh AVSM (Retd).

Further, Dr. Punit Ghai who holds Doctorate Degree in Chemistry and is working with company as President (Operation-Cement Division) was appointed as the additional director of the Company w.e.f. 29th December, 2011 and thereafter, with the consent of the Board of Directors of the Company, he was appointed as the Managing Director of the Company for period commencing from 01-01-2012 and ending on 31-12-2014.

5. PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956

None of the employees of the Company has drawn salary in excess of the limits prescribed in the said section of Companies Act, 1956 read with Companies (Particular of Employees) Rules, 1975 and hence no such list is being provided.

6. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to requirement under Section 217(2AA) of the Companies (Amendment) Act, 2000 with respect to Directors Responsibility Statement, it is hereby confirmed:

1) That in the preparation of Annual Accounts for the financial year ended as at 31st March, 2012, the applicable Accounting Standards have been followed along with proper explanation relating to the material departures.

2) That the Directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the financial year ended as at 31st March, 2012 and of the profit or loss of the Company for the financial year ended on 31st March, 2012.

3) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the Assets of the Company and for preventing and detecting fraud or other irregularities.

4) That the Directors have prepared the Annual Accounts on a Going Concern basis.

7. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO

Details of energy conservation along with the information in accordance with Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1998 is annexed herewith as Annexure-I and is forming integral part of this report. There was no foreign exchange earning & outgo during the year.

8. PUBLIC DEPOSITS

The Company has not invited or accepted any public deposits within the meaning of Section 58A & 58AA of the Companies Act, 1956 and section 45-I(bb) of the Reserve Bank of India Act, 1934 during the year under review. The company does not hold any public deposit as on date and will not accept the same in future without the prior approval of Reserve Bank of India in writing.

9. COST AUDITORS

The Company has appointed Cost Auditors in terms of order issued by Central Government under section 233B of the Companies Act, 1956 to get Cost Audit of Cost Records of the Company for the financial year 2011-12. The Cost Audit Report shall be filed by the Cost Auditors in due course for the financial year 2011-12.

10. AUDITORS REPORT

The Auditors' Report on Annual Accounts of the Company for the year ended on 31st March, 2012 is self-explanatory. Hence, no explanation is required to be given.

11. AUDITORS OF THE COMPANY

M/s Kumra Bhatia & Co., Chartered Accountants, New Delhi, retiring Statutory Auditors of the company retire at the conclusion of this annual general meeting and being eligible, have offered themselves for re- appointment. The Company has received a certificate from them pursuant to Section 224(1B) of the Companies Act 1956, confirming their eligibility for re-appointment. You directors recommend their re-appointment for the period commencing from the conclusion of this Annual General Meeting till the conclusion of the next Annual General Meeting of the Company.

12. INDUSTRIAL RELATIONS

Industrial relations continue to be cordial throughout the year and the directors express their sincere appreciation for the excellent team work with which the employees of the Company have worked during the year.

13. CORPORATE GOVERNANCE REPORT

The Company is committed to good Corporate Governance as the requirement of the Clause 49 of the Listing Agreement. As required under Clause 49 of the Listing Agreement, a detailed report on Corporate Governance together with Auditor's Certificate on compliance of conditions of Corporate Governance is annexed herewith as Annexure - II and is forming integral part of this Report.

14. LISTING OF SECURITIES

Presently, the Securities of the Company are listed on Bombay Stock Exchange Limited, Mumbai. The listing fee for the financial year 2012-13 has been paid.

15. ACKNOWLEDGEMENTS

Your directors would like to place their grateful appreciation for the assistance and co-operation received from the Company's bankers during the year under review. The directors also acknowledge with appreciation the support and co-operation rendered by various Government Agencies and Departments. Your Directors would also wish to place on record their deep sense of appreciation for the continued support of all the investors of the Company.

By order of the Board of Directors For SAINIK FINANCE & INDUSTRIES LIMITED

Kuldeep Singh Solanki Dr. Punit Ghai (Director) (Managing Director)

Place : New Delhi Dated : 27th August, 2012

---

Mar 31, 2010

The directors have pleasure in presenting their 18th Annual Report and the Audited Statement of Accounts for the year ended on 31st March, 2010.

1. FINANCIAL RESULTS (Rs. In lacs)

Particulars 2009-10 2008-09

Net profit before tax & depreciation 117.24 85.73

Less: Depreciation 58.46 58.08

Net Profit After Depreciation 58.78 27.65

Add: Balance in Profit & Loss Appropriation

A/c brought forward from last year 517.78 506.67

Provision for Bad & Doubtful Debts Written Back 65.00 28.81

Sub Total 641.56 563.13

Less: Provision for Income Tax-Current 40.62 35.39

Provision for Income Tax - Deferred (2.00) 0.22

Provision for Income Tax - Fringe Benefit - 3.49

Transfer to Reserve Fund 11.75 5.53

Income Tax for earlier year - 0.72

Net profit carried forward to next year 591.19 517.78

(The company has transferred a sum of Rs. 11,75,678/- to Special Reserve Fund in Compliance of Section 45IC of the Reserve Bank of India Act, 1934.)

2. DIVIDEND

Your directors do not recommend any dividend for the financial year under report.

3. OPERATIONS OF THE COMPANY

The Company has been carrying out the businesses of manufacturing Portland Cement. The company has sold 37570.800 MT of Portland Cement during the year under report. However due to stiff competition in the market, the sales realisation per bag remained lower during the year. Further, during the period under review, the Company has also sold 17139 PCC Poles.

The Company is carrying on finance activities, for which the Certificate of Registration has been obtained from the Department of Non Banking Supervision, Reserve Bank of India, New Delhi. The Company has not accepted any deposit from any member of the public during the year under review.

The net profits of the Company are Rs. 58.78 lacs during the year under review.

4. DIRECTORS

Ex. Capt. Rudra Sen Sindhu and Ex. Capt. Kuldeep Singh Solanki, Directors of the Company retire by rotation and being eligible, have offered themselves for re-appointment. Your Directors recommend their re- appointment. Further, it is also noted that Ex. Capt. Rudra Sen Sindhu, Director of the Company who was occupying the position of Managing Director of the Company, has relinquished this position w. e. f. 1st October, 2009.

5. PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956

None of the employees of the Company has drawn salary in excess of the limits prescribed in the said section of Companies Act, 1956 read with Companies (Particular of Employees) Rules, 1975 and hence no such list is being provided.

6. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to requirement under Section 217(2AA) of the Companies (Amendment) Act, 2000 with respect to Directors Responsibility Statement, it is hereby confirmed:

1) That in the preparation of Annual Accounts for the financial year 2009-10, the applicable Accounting Standards have been followed along with proper explanation relating to the material departures.

2) That the Directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the financial year ended as at 31st March, 2010 and of the profit or loss of the Company for the financial year ended on 31st March, 2010.

3) That the Directors have taken proper and sufficient care for the maintenance ©f adequate accounting records in accordance with the provisions of this Act for safeguarding the Assets of the Company and for preventing and detecting fraud or other irregularities.

4) That the Directors have prepared the Annual Accounts on a Going Concern basis.

7. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO

Details of energy conservation along with the information in accordance with Section 217( 1) (e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1998 is annexed herewith forming part of this report. There was no foreign exchange earning & outgo during the year.

8. PUBLIC DEPOSITS

The Company has not invited or accepted any public deposits within the meaning of Section 58A & 58AA of the Companies Act, 1956 and section 45-I(bb) of the Reserve Bank of India Act, 1934 during the year under review. The company does not hold any public deposit as on date and will not accept the same in future without the prior approval of Reserve Bank of India in writing.

9. SECURED NON-CONVERTIBLE DEBENTURES

During the year, the Company issued non-convertible debentures on private placement basis, to augment the resources of the Company. These debentures are secured by way of charge on all the assets (including current assets) of the Company.

10. AUDITORS REPORT

The Auditors Report on Annual Accounts of the Company for the year ended on 31st March, 2010 is self explanatory. Hence, no explanation is required to be given.

11. AUDITORS OF THE COMPANY

M/s Kumra Bhatia and Co., Chartered Accountants, New Delhi, retiring Statutory Auditors of the company retire at the conclusion of this annual general meeting and being eligible, have offered themselves for re- appointment. The Company has received a certificate from them pursuant to Section 224(1B) of the Companies Act 1956, confirming their eligibility for re-appointment. You directors recommend their re-appointment for the period commencing from the conclusion of this Annual General Meeting till the conclusion of the next Annual General Meeting of the Company.

12. INDUSTRIAL RELATIONS

Industrial relations continue to be cordial throughout the year and the directors express their sincere appreciation for the excellent team work with which the employees of the Company have worked during the year.

13. CORPORATE GOVERNANCE REPORT

A detailed report on Corporate Governance prepared in accordance with the Clause 49 of the Listing Agreement is annexed herewith and is forming part of this Annual Report.

14. LISTING OF SECURITIES

Presently, the Securities of the Company are listed on Bombay Stock Exchange, Mumbai.

15. ACKNOWLEDGEMENTS

Your directors would like to place their grateful appreciation for the assistance and co-operation received from the Companys bankers during the year under review. The directors also acknowledge with appreciation the support and co-operation rendered by various Government Agencies and Departments. Your Directors would also wish to place on record their deep sense of appreciation for the continued support of all the investors of the Company.

By order of the Board of Directors

For SAINIK FINANCE & INDUSTRIES LIMITED

Place : New Delhi (Col. Girdhari Singh AVSM (Retd.))

Dated : 4th September, 2010 Chairman