Your directors take pleasure in presenting the 5th Board's Report of the company on the business andoperations together with the Audited Accounts for the financial year ended March 31, 2026.
1. FINANCIAL RESULTS & PERFORMANCE:
Financial performance of the Company for Financial Year 2025-26 is summarized below:
(Rs. in Lakhs)
Particulars
2025-26
2024-25*
Revenue from operations
15,462.075
12,503.263
Other Income
37.625
6.430
Total Revenues
15,499.700
12,509.693
Profit/ (Loss) before Exceptional & Extraordinary items & tax
644.320
540.004
Less: Exceptional items
--
5.631
Less: Extraordinary items
0.639
1.927
Profit/ (Loss) before tax
643.681
532.446
Less: Tax Expenses- Current Tax
225.919
166. 177
- Deferred Tax
- Income tax of earlier years
Net Profit/ (Loss) For the Year
417.762
366.270
* Figures regrouped wherever necessary.
The above figures are extracted from the Financial Statements prepared in accordance withaccounting principles generally accepted in India including the Accounting Standards specifiedunder section 129 and 133 of the Companies Act, 2013 ("the Act") read with the Companies(Accounts) Rules, 2014 and other relevant provisions of the Act. The detailed financial statementas stated above is available on the Company's website at https://www.bccl.info/financial-result.php.
Z. STATE OF COMPANY'S AFFAIR:
The Company was incorporated on December 10, 2021 therefore this is fifth year of the company.Company has recorded a total revenue of Rs. 15,499.700/- lakhs in current financial year 2025-26as compared to Rs. 12,509.693/- lakhs in previous financial year 2024-25. Company has incurredhigher net profit for the year 2025-26 which is Rs. 417.762/- lakhs as compared to Rs. 366.270 /-lakhs in previous year.
I. DIVIDEND:
Keeping in mind the overall performance and outlook for your Company, your Board ofDirectors doesn't declare dividends as the company is at growing stage and requires funds forexpansion. Your directors do not recommend any dividend for the year ended March 31, 2026.
4. UNCLAIMED DIVIDEND:
There is no balance lying in unpaid dividend account.
5. SHARE CAPITAL:
The Authorized Share Capital of the Company is Rs. 20,00,00,000/- and Paid-up Share Capital ofthe Company is Rs. 14,13,93,470/- as on March 31, 2026.
During the year under review, the Company has not made any issue by way of Bonus issue,Right issue, private placement, further issue or any other method other than as described below.
During the year under review, the Company has made allotment of 19,05,597 equity shares onconversion of warrants issued at the price of Rs. 134 each (including a premium of Rs. 124/- pershare), to "Promoter Group" on preferential basis, upon receipt of balance amount at the rate ofRs. 100.5/- (Rupees One hundred and Fifty Paisa Only) per warrant (being 75% of the issue priceper warrant).
6. MATERIAL CHANGES:
There have been no material changes and commitments, which affect the financial position of thecompany which have occurred between the end of the financial year to which the financialstatements relate and the date of this Report.
7. TRANSFER TO RESERVES:
Company has not transferred any amount from profit to general reserve.
8. CHANGE IN NATURE OF BUSINESS, IF ANY:
During the Financial year, there has been no change in the business of the company or in thenature of business carried by the company during the financial year under review.
9. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORSOR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS ANDCOMPANY'S OPERATIONS IN FUTURE:
There was no significant material order passed by the regulators or courts or tribunals impactingthe going concern status and company's operation in nature.
10. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 134 (5) of the Companies Act, 2013 with respect toDirectors' Responsibility Statement, it is hereby confirmed that:
a. In the preparation of the annual accounts for the year ended March 31, 2026, the applicableAccounting Standards have been followed and there are no material departures from thesame;
b. The Directors have selected such Accounting Policies and applied them consistently andmade judgments and estimates that were reasonable and prudent so as to give a true andfair view of the State of affairs of the Company as at March 31, 2026 and of the Profit of theCompany for that period;
c. the Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013, forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;
d. The Directors had prepared the annual accounts of the Company on a 'going concern' basis;and
e. The Directors had laid down internal financial controls to be followed by the company andthat such internal financial controls are adequate and were operating effectively;
f. The directors have devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.
11. DECLARATION BY INDEPENDENT DIRECTOR:
Pursuant to Section 149 (7) of the Companies Act, 2013 ("the Act") read with the Companies(Appointment and Qualifications of Directors) Rules, 2014, the Company has receiveddeclarations from all the Independent Directors of the Company confirming that they meet the'criteria of Independence' as prescribed under Section 149 (6) of the Act and Regulation 16 of theListing Regulations 2015 have submitted their respective declarations as required. TheIndependent Directors of your Company have confirmed that they are not aware of anycircumstance or situation, which could impair or impact their ability to discharge duties with anobjective independent judgement and without any external influence.
All the independent directors have enrolled with the Indian Institute of Corporate Affairs atManesar for exam "Online Self-Assessment Test".
12. LOANS GUARANTEES AND INVESTMENTS:
With reference to Section 134(3)(g) of the Companies Act, 2013, loans, guarantees andinvestments made under section 186 of the Companies Act, 2013 form part of the notes to thefinancial statements provided in this annual report.
13. SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES:
The Company does not have any Subsidiary, Joint Venture or Associate Company.
14. EXTRACT OF ANNUAL RETURN:
As per amended section 92(3) of Companies Act, 2013 attachment of extract of annual return toDirectors Report is discontinued. The Annual Return for FY 2025-26 is available on Company'swebsite at https://www.bccl.info/annual-reports.php
15. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
As per the Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements), Regulations2015, the Management Discussion and Analysis of the financial condition is annexed and formsan integral part of the Directors' Report, is given in Annexure I.
16. CORPORATE GOVERNANCE:
The company is SME Company and listed on SME exchange of BSE Limited therefore, pursuantto Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015,the compliance with corporate governance as specified in regulation 17 to 27 and clauses (b) to (i)of sub regulation 2 of regulation 46 and Para C, D and E of Schedule V shall apply to the extentthat it does not violate their respective statutes and guidelines or directives issued by the relevantauthorities. Hence, your company is exempted to comply with aforesaid provisions of the SEBI(LODR) Regulations, 2015 and corporate Governance does not form part of this Board's Report.
17. NUMBER OF BOARD AND COMMITTEE MEETING HELD DURING THE YEAR:
The Details of all meeting of Board of Directors and Committee meeting had taken place duringthe year and their detailed composition along with their attendance is mentioned below. Thecomposition of the Board and its committee is also available on the website of the company athttps://www.bccl.info/Committees.php.
I. BOARD MEETING:
The Board of Directors of the Company (Board) has optimum combination of Executive andNon-Executive Directors comprising Three Executive Directors and Three Non-ExecutiveDirectors. None of the Directors hold directorship in more than 20 companies nor is a memberof more than 10 committees or chairman of more than 5 committees across all the publiclimited companies in which they are Directors.
Composition of Board of Director as on March 31, 2026 is as follows:
Sr.
No
Name
Designation
Nature ofDirectorship
1
Bharat Brijlal Bhatia
Chairman/Managing Director
Executive
2
Rameshchand Chanduram Bhatia
Whole Time Director
3
Ravi Ashokkumar Bhatia
4
Anu Ashish Amodia
Independent Director
Non-Executive
5
Ravi Jitendra Modi
6
Dhruvi Shyam Kapadia
The Board meets at regular intervals to discuss and decide on the Company's performance andstrategies. During the financial year under review, the Board met 13 (Thirteen) times and thegap between two meetings did not exceed one hundred and twenty days (120).
Sr. No.
Date of Meeting
Board Strength
No. of Directors Present
1.
12/04/2025
2.
22/04/2025
3.
12/05/2025
4.
26/05/2025
5.
30/05/2025
6.
09/06/2025
7.
05/07/2025
8.
02/08/2025
9.
18/09/2025
10.
28/10/2025
11.
13/11/2025
12.
01/12/2025
13.
28/01/2026
II. COMMITTEES MEETING• AUDIT COMMITTEE
Our Company has constituted an Audit Committee on February 21, 2022 and re¬constituted on March 31, 2025 with its composition, quorum, powers, roles and scope inline with the applicable provisions of the Act and Listing Regulations.
The Audit Committee of the company consists of two Independent Directors and oneExecutive Director of the Company. All the Directors have good understanding Finance,Accounts and Law.
Composition of audit committee of the company is as follows:
Sr. No
Name of Member
Nature of Directorship
Chairman
Non-Executive Independent Director
Member
Executive Director
During the financial year 2025-26, Five (5) meetings of Audit Committee were held onfollowing dates:
? 12/04/2025
? 30/05/2025
? 02/08/2025
? 13/11/2025
? 26/02/2026
Attendance of members for the meeting of Audit Committee held during the year 2025-26is as below
Status inCommittee
No of meetingsAttended
No of meetingsentitled to Attend
The term of reference of Audit Committee is as below:
The scope of audit committee shall include, but shall not be restricted to, the following;
1. Oversight of the listed entity's financial reporting process and the disclosure of itsfinancial information to ensure that the financial statement is correct, sufficient andcredible;
2. Recommendation for appointment, remuneration and terms of appointment ofauditors of the listed entity
3. Approval of payment to statutory auditors for any other services rendered by thestatutory auditors
4. Reviewing, with the management, the annual financial statements and auditor'sreport thereon before submission to the board for approval, with particular referenceto:
a. matters required to be included in the director's responsibility statement to beincluded in the board's report in terms of clause (c) of sub-section (3) of Section 134of the Companies Act, 2013;
b. changes, if any, in accounting policies and practices and reasons for the same;
c. major accounting entries involving estimates based on the exercise of judgment bymanagement;
d. significant adjustments made in the financial statements arising out of auditfindings;
e. compliance with listing and other legal requirements relating to financialstatements;
f. disclosure of any related party transactions;
g. modified opinion(s) in the draft audit report;
5. Reviewing, with the management, the quarterly financial statements beforesubmission to the board for approval
6. Reviewing, with the management, the statement of uses / application of funds raisedthrough an issue (public issue, rights issue, preferential issue, etc.), the statement offunds utilized for purposes other than those stated in the offer document /prospectus / notice and the report submitted by the monitoring agency monitoringthe utilisation of proceeds of a public or rights issue, and making appropriaterecommendations to the board to take up steps in this matter;
7. Reviewing and monitoring the auditor's independence and performance, andeffectiveness of audit process;
8. Approval or any subsequent modification of transactions of the listed entity withrelated parties;
9. Scrutiny of inter-corporate loans and investments;
10. Valuation of undertakings or assets of the listed entity, wherever it is necessary;
11. Evaluation of internal financial controls and risk management systems;
12. Reviewing, with the management, performance of statutory and internal auditors,adequacy of the internal control systems;
13. Reviewing the adequacy of internal audit function, if any, including the structure ofthe internal audit department, staffing and seniority of the official heading thedepartment, reporting structure coverage and frequency of internal audit;
14. Discussion with internal auditors of any significant findings and follow up there on;
15. Reviewing the findings of any internal investigations by the internal auditors intomatters where there is suspected fraud or irregularity or a failure of internal controlsystems of a material nature and reporting the matter to the board;
16. Discussion with statutory auditors before the audit commences, about the nature andscope of audit as well as post-audit discussion to ascertain any area of concern;
17. To look into the reasons for substantial defaults in the payment to the depositors,debenture holders, shareholders (in case of non-payment of declared dividends) andcreditors;
18. To review the functioning of the whistle blower mechanism;
19. Approval of appointment of chief financial officer after assessing the qualifications,experience and background, etc. of the candidate;
20. Carrying out any other function as is mentioned in the terms of reference of the auditcommittee.
21. Reviewing the utilization of loans and/ or advances from/investment by the holdingcompany in the subsidiary exceeding rupees 100 crore or 10% of the asset size of thesubsidiary, whichever is lower including existing loans / advances / investmentsexisting as on the date of coming into force of this provision
22. Consider and comment on rationale, cost-benefits and impact of schemes involvingmerger, demerger, amalgamation etc., on the listed entity and its shareholders.
The Audit Committee shall mandatorily review the following information:
1. Management Discussion and Analysis of financial condition and results of operations;
2. Management letters / letters of internal control weaknesses issued by the statutoryauditors;
3. Internal audit reports relating to internal control weaknesses; and
4. The appointment, removal and terms of remuneration of the chief internal auditorshall be subject to review by the audit committee.
5. Statement of deviations:
a. Quarterly statement of deviation(s) including report of monitoring agency, ifapplicable, submitted to stock exchange(s) in terms of Regulation 32(1).
b. Annual statement of funds utilized for purposes other than those stated in theoffer document/prospectus/notice in terms of Regulation 32(7).
• NOMINATION AND REMUNERATION COMMITTEE
Our Company has constituted a Nomination and Remuneration Committee on February21, 2022 and re- constituted on March 31, 2025 with its composition, quorum, powers,roles and scope in line with the applicable provisions of the Act and Listing Regulations.The Nomination and Remuneration Committee of the company consists of threeIndependent Directors of the Company. Composition of Nomination and RemunerationCommittee of the company is as follows:
During the financial year 2025-26, Three (3) meetings of Nomination and RemunerationCommittee were held on following dates:
? 01/12/2025
Attendance of members for the meeting of Nomination & Remuneration Committee heldduring the year 2025-26 is as below:
No of meetingsentitled toAttend
The term of reference of Nomination & Remuneration Committee is as below:
1. Formulation of the criteria for determining qualifications, positive attributes andindependence of a director and recommend to the Board a policy, relating to theremuneration of the directors, key managerial personnel and other employees;
2. For every appointment of an independent director, the Nomination and RemunerationCommittee shall evaluate the balance of skills, knowledge and experience on the Boardand on the basis of such evaluation, prepare a description of the role and capabilitiesrequired of an independent director. The person recommended to the Board forappointment as an independent director shall have the capabilities identified in such
3. description. For the purpose of identifying suitable candidates, the Committee may:
b. use the services of an external agencies, if required;
c. consider candidates from a wide range of backgrounds, having due regard todiversity; and
d. consider the time commitments of the candidates.
4. Formulation of criteria for evaluation of Independent Directors and the Board ofDirectors;
5. Devising a policy on Board diversity, if any;
6. Identifying persons who are qualified to become directors and who may be appointedin senior management in accordance with the criteria laid down, and recommend tothe Board of Directors their appointment and removal and shall carry out evaluation ofevery director 's performance.
7. Whether to extend or continue the term of appointment of the independent director, onthe basis of the report of performance evaluation of independent directors.
8. Recommend to the board, all remuneration, in whatever form, payable to seniormanagement.
9. Any other power specifically assigned by the Board of Directors of the Company fromtime to time by way of resolution passed by it in a duly conducted Meeting, and
10. Carrying out any other function contained in the equity listing agreements as andwhen amended from time to time.
The performance evaluation of the independent director was evaluated by the board afterseeking inputs from all the independent directors on the basis of the criteria such asparticipation in decision making and rendering unbiased opinion; participation ininitiating new ideas and planning of the company etc.
The board reviewed the performance of the independent directors on the basis of thecriteria such as the contribution in raising concerns to the Board, safeguarding ofconfidential information, rendering independent unbiased opinion etc. The web link ishttps: //www.bccl.info/ assets /images/Familarization-programme-of-IDs R-WITH-no-of-programme-and-hrs-of-attendence-25-26.pdf
REMUNERATION OF DIRECTORS
During the year company has paid following remuneration or setting fees to the directorsas follows:
Category
Remuneration orsetting fees
Executive Managing Director
84,00,000 p.a.
Rameshchand Chanduram
Executive Whole Time
Bhatia
Director
Executive Whole TimeDirector
24,00,000 p.a.
Non-Executive IndependentDirector
60,000 p.a.
REMUNERATION POLICY
The Company has adopted and implemented the Nomination and Remuneration Policydevised in accordance with Section 178(3) and (4) of the Companies Act, 2013 which isavailable on the website of the Company
https://www.bccl.info/assets/images/remuneration-policy-of-directors-etc.pdf.
The remuneration payable to Directors, Key Managerial Personnel and SeniorManagement Person will involve a balance between fixed and incentive pay reflectingshort term and long-term performance objectives appropriate to the working of theCompany and support in the achievement of Corporate Goals.
Presently the company doesn't pay any sitting fees to its non-executive director. Thecriteria for making payment to the non-executive director is available on the website of thecompany https://www.bccl.info/assets/images/T&C of Appointment of ID R.pdf.https: / /www.bccl.info/ assets / images/policy-on-appointment-and-removal-of-directors.pdf.
• STAKEHOLDER'S RELATIONSHIP COMMITTEE
The term of reference of Stakeholder's Relationship Committee is as below:
1. Resolving the grievances of the security holders of the listed entity includingcomplaints related to transfer/transmission of shares, non-receipt of annual report,non-receipt of declared dividends, issue of new/duplicate certificates, generalmeetings etc.
2. Review of measures taken for effective exercise of voting rights by shareholders.
3. Review of adherence to the service standards adopted by the listed entity in respect ofvarious services being rendered by the Registrar & Share Transfer Agent.
4. Review of the various measures and initiatives taken by the listed entity for reducingthe quantum of unclaimed dividends and ensuring timely receipt of dividendwarrants/annual reports/statutory notices by the shareholders of the company.
To solve the investors grievances Company has formulated Stakeholder's RelationshipCommittee. Composition of the Committee is as follows:
During the financial year 2025-26, Four (4) meetings of Stakeholder's RelationshipCommittee were held on following dates
? 22/04/2025
? 28/10/2025
No ofmeetingsAttended
Name & Designation and address of the Compliance OfficerCS Renu Garg
Company Secretary & Compliance OfficerBhatia Colour Chem LimitedPlot No. A/2/12, Road No. 1, UdhanaUdyog Nagar Sangh Udhna Surat-394210
Pursuant to the Regulation 13(3) of the SEBI (Listing Obligations & DisclosureRequirements) Regulations, 2015; the details regarding investor's complaints are asfollows:
Status of Complaints pending, received, disposed and unresolved:
Number of Shareholders' Complaints Pending at the end of the year
Nil
Number of Shareholders' Complaints received during the year
Number of Shareholders' Complaints disposed during the year
Number of Shareholders' Complaints remain unresolved during the
year
• CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
The Corporate Social Responsibility Committee is constituted in line with the provisionsof Section 135 of the Companies Act, 2013.
The terms of reference of the Committee inter-alia includes the following:
i. To formulate and recommend to the Board, a CSR Policy which shall indicate theactivities to be
ii. undertaken by the Company as specified in Schedule VII to the Companies Act,2013;
iii. To recommend the amount of expenditure to be incurred on the activities asprescribed in Schedule VII
iv. to the said Act;
v. To monitor the CSR Policy of the Company from time to time.
The Corporate Social Responsibility Committee of the Company comprised three membersas on March 31, 2026. Composition of the Committee is as follows:
Rameshchand ChanduramBhatia
During the financial year 2025-26, One (1) meeting of Corporate Social ResponsibilityCommittee were held on 28/01/2026.
Attendance of members for the meeting of Corporate Social Responsibility Committee heldduring the year 2025-26 is as below:
No.
No ofmeetingsentitled toAttend
RameshchandChanduram Bhatia
18. FAMILIARIZATION TO INDEPENDENT DIRECTORS:
The Independent Directors of the Company are familiarized with the various aspects of theCompany provided with an overview of the requisite criteria of independence, roles, rights,duties and responsibilities of directors, terms of appointment of the Company and policies of theCompany and other important regulatory aspects as relevant for directors.
The Company, through its Executive Director or Manager as well as other Senior ManagerialPersonnel, conducts presentations/programs to familiarize the Independent Directors with thestrategy, operations and functions of the company inclusive of important developments inbusiness. The web link is
https://www.bccl.info/assets/images/Familarization policy of IDs R.pdf.https: / /www.bccl.info/ assets / images/policy-on-appointment-and-removal-of-directors.pdf
The terms and conditions of independent directors is available on the website of the company athttps://www.bccl.info/assets/images/T&C of Appointment of ID R.pdf.
Meeting of Independent Director
During the financial year 2025-26 one meeting of Independent Director was held on 26/02/2026.
Attendance of Directors at Independent Directors meeting held during the financial year is asunder:
Name of Directors
Categories
No. of Meeting Attended
Mr. Ravi Jitendra Modi
Mrs. Dhruvi Shyam Kapadia
Mrs. Anu Ashish Amodia
19. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES:
There is no employee drawing remuneration in excess of limits prescribed under section 197(12)of the Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules, 2014. The Disclosures pertaining to remunerationas required under section 197(12) of the Companies Act, 2013 read with rules 5(1) of thecompanies (appointment and remuneration of managerial personnel) Amendment rules, 2016 areannexed in Annexure II.
20. RISK MANAGEMENT:
During the financial year under review, the Board of Directors have adopted a framework for riskmanagement including identification therein of elements of risk, if any, which in the opinion ofthe Board may threaten the existence of the company as per the provisions of Section 134(3)(n) ofCompanies Act, 2013. The brief statement of risk management is as under:
Regulatory and Compliance Risk
The textile chemical sector is governed by multiple national and international environmental,health, and safety regulations and pollution control norms. Any non-compliance can result inlegal penalties and reputational damage. We proactively monitor regulatory developments andmaintain strict internal compliance protocols.
Environmental and Sustainability Risk
The handling and disposal of chemical substances carry inherent environmental risks. Wemitigate these through:
• Investment in effluent treatment plants (ETPs)
• Use of environmentally friendly and low-impact formulations
• Continuous improvement in sustainable production practices
Raw Material Price Volatility and Supply Chain Risk
Our operations are dependent on the availability and cost of raw materials, which are subject toglobal price fluctuations. We manage this risk through:
• Diversification of suppliers
• Strategic sourcing and long-term contracts
• Regular inventory reviews and buffer stock planning
Technology and Innovation Risk
Failure to innovate may lead to obsolescence or loss of market competitiveness. We continuouslyinvest in R&D to develop eco-friendly and high-performance chemical solutions that align withthe evolving needs of the textile industry and sustainability goals.
Customer and Market Risk
Our business is closely tied to the performance of the textile industry, which is cyclical andinfluenced by global demand-supply dynamics. We mitigate market risk through:
• Diversification across domestic and export markets
• Focus on value-added specialty chemicals
• Strong technical support and customer engagement
Operational and Safety Risk
Manufacturing of textile chemicals involves hazardous processes and materials. To manageoperational risk, we have:
• Implemented stringent safety standards and regular audits
• Trained staff in handling hazardous materials
• Adopted automation and process controls to minimize human error
Cybersecurity and IT Risk
With increasing reliance on digital systems for operations and supply chain management, cyberthreats are a growing concern. We have adopted robust cybersecurity protocols, regular databackups, and access controls to safeguard sensitive business information.
21. AUDITORS:• STATUTORY AUDITORS:
The Members at the 01st Annual General Meeting of theCompany held on 20th September, 2022, had appointedM/s. DSI & CO., Chartered Accountants, (FRN: 127226W)as the Statutory Auditor of the Company to hold office for aterm of five years i.e., from the conclusion of the 01stAnnual General Meeting until the conclusion of theconclusion of the AGM for the financial year ending 2026¬27.
• SECRETARIAL AUDITOR:
The Members at the 04th Annual General Meeting of theCompany held on August 26, 2025, had appointed Mr. RanjitBinod Kejriwal, Company Secretary in practice, (FCS: 6116,COP: 5985) and a Peer Reviewed Company Secretary, as theSecretarial Auditor of the company, for performingSecretarial Audit of the company for a period of fiveconsecutive years commencing from April 01, 2025 till March31, 2030 in accordance with the amendment notified inRegulation 24A by way of SEBI (LODR) (Third Amendment)Regulations, 2024, with effect from April 01, 2025.
The Secretarial Audit Report is annexed herewith inAnnexure III.
• INTERNAL AUDITOR:
Pursuant to the provisions of Section 138 of the CompaniesAct, 2013 read with Rule 13 of Companies (Accounts) Rules2014, the Board of Directors of the Company has appointedM/s Dharan Shah & Associates, Chartered Accountants as
j
Internal Auditor of the Company in the board meeting held onFebruary 21, 2022.
• COST AUDITOR:
Pursuant to the Provisions of Section 148 of the CompaniesAct, 2013 read with the Companies (Cost Records and Audit)Amendment Rules, 2014, the Board of Directors haveappointed M/s V.M. Patel & Associates, Practising CostAccountants (Firm Registration No. 101519) as the CostAuditor of the Company for Financial Year 2026-27, sub'ectto remuneration being ratified by the Members at theensuing AGM of the Company.
22. COMMENTS ON AUDITOR'S REPORT:
Statutory auditors:
M/s DSI & Co., Chartered Accountants, have submitted Auditors' Report on the financialstatements (standalone) of the Company for the financial year ended March 31, 2026. The notesreferred to in the Auditor's Report are self-explanatory and as such they do not call for anyfurther explanation.
Secretarial auditors:
Mr. Ranjit Binod Kejriwal, Company Secretary in practice, have submitted Secretarial AuditReport for the financial year ended March 31, 2026. During the year under review, the companyhas generally complied with the applicable provisions of the act, rules, regulations and guidelinessubject to the following observations:
• It was observed that the Company had not disseminated"Notice of meeting of the board of directorswhere financial results were discussed" and "Statements of deviation(s)" on its website as required underapplicable provisions. On being intimated by BSE Limited, the Company has since completed the uploadingof such documents and has initiated measures to strengthen its compliance processes.
Management Response: The Company has taken necessary steps to strengthen its compliancemechanism and ensures that such instance will not recur.
• The SDD software installed by the company was corrupted due to some technical issue. So, thecompany has to install a new version of SDD software. Due to lack of proper back up, the company hasmade entries again in new SDD software to record the same, with current time stamp.
Management Response: The Company submits that this was happened due to some technicalissues has taken necessary steps to strengthen its compliance mechanism and ensures that suchinstance will not recur.
• The Company had submitted the outcome of the Board Meeting held on May 12, 2025; however, dueto a typographical error, certain details in the disclosure were incorrect. The company had mentioned prepreferential holding of one of the allottees where no pre preferential shares were held. The Companysubsequently revised and re-submitted the outcome on May 13, 2025 with corrected information..
Management Response: The Company submits that the error in the initial disclosure was purelytypographical and inadvertent in nature. Upon identification, the Company promptly revised theoutcome of the Board Meeting with correct details.
• The Company had allotted 15,07,199 equity shares on May 12, 2025, resulting in a changeexceeding 2% of the total paid-up share capital. As per the applicable provisions, the Company wasrequired to file the updated shareholding pattern within 10 days of such change. However, the same wasfiled on May 22, 2025, after the expiry of the prescribed timeline.
Management Response: The Company has taken necessary steps to strengthen its compliancemechanism and ensures that such delay will not recur.
• The Company did not update the e-voting details pertaining to its Annual General Meeting on theCDSL portal as required under the applicable e-voting framework.
• There was a clerical discrepancy in Form DIR-12 filed for appointment of the Company Secretary,wherein the time of the Board Meeting was stated as 12:00 P.M. instead of 02:00 P.M. as recorded in theminutes of the Board Meeting and the disclosures made to the Stock exchange.
Management Response: The Company submits that that the discrepancy referred to is purely atypographical/inadvertent clerical error and does not affect the substance, interpretation, orintent of the information disclosed. The error was unintentional and occurred during thepreparation of the document. The Company has taken necessary steps to strengthen itscompliance mechanism and ensures that such instance will not recur.
23. MAINTENANCE OF COST RECORDS:
The company is required to maintain Cost Records as specified by Central government undersub-section (1) of section 148 of the Companies Act, 2013, and accordingly such accounts andrecords are made and maintained.
24. CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES:
With reference to Section 134(3)(h) of the Companies Act, 2013, all contracts and arrangementswith related parties under section 188 of the Companies Act, 2013 entered by the company duringthe financial year, were in the ordinary course of business and were on an arm's length basis. Thepolicy on Related Party Transaction is uploaded on the website of the company.
The web link is https://www.bccl.info/assets/images/Related Party Transaction Policy R.pdfDetails of the related party transaction made during the year are attached Annexure IV in formAOC-2 for your kind perusal and information.
25. ENERGY CONSERVATION MEASURES, TECHNOLOGY ABSORPTION AND R & DEFFORTS AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
The particulars required to be included in terms of Section 134(3)(m) of the Companies Act, 2013with regard to conservation of energy, technology absorption, foreign exchange earnings andoutgo are given below:
A. CONSERVATION OF ENERGY
i. The steps taken or impact on conservation of energy: Nil
ii. The steps taken by the Company for utilizing alternate sources of energy: NA
iii. The capital investment on energy conservation equipment: NA
B. TECHNOLOGY ABSORPTION
i. The efforts made towards technology absorption: NA
ii. The benefits derived like product improvement, cost reduction, product development orimport substitution: NA
iii. In case of imported technology (imported during last three years reckoned from thebeginning of the financial year): NA
iv. The expenditure incurred on research & development during the year: NA
C. FOREIGN EXCHANGE EARNING AND OUTGO
The foreign exchange earnings and expenditure of your Company:
Foreign Expenditure: Import of raw materials of Rs. 3,78,71,856.
26. CEO/ CFO CERTIFICATION
Pursuant to Regulation 15(2) of Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations, 2015, the provision of Para D of Schedule V of SEBI(LODR) relating to Declaration by CEO is not applicable to the company.
27. CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year under review, the provisions of Section 135 of the Companies Act, 2013 relatingto Corporate Social Responsibility (CSR) were applicable to the Company.
The Company has constituted a CSR Committee and adopted a CSR Policy in accordance withthe applicable provisions of the Act. The details of the CSR Policy, CSR Committee, and CSRactivities/expenditure are provided in the Annual Report on CSR annexed to this Board's Reportas Annexure V.
28. ANNUAL EVALUATION:
The board of directors has carried out an annual evaluation of its own performance, boardcommittees and individual directors pursuant to the provisions of the Act and the corporategovernance requirements as prescribed by SEBI (Listing Obligations and DisclosureRequirements), Regulations 2015 ("SEBI Listing Regulations").
The performance of the board was evaluated by the board after seeking inputs from all thedirectors on the basis of the criteria such as the board composition and structure, effectiveness ofboard processes, information and functioning, etc.
The performance of the committees was evaluated by the board after seeking inputs from thecommittee members on the basis of the criteria such as the composition of committees,effectiveness of committee meetings, etc.
The board and the nomination and remuneration committee reviewed the performance of theindividual directors on the basis of the criteria such as the contribution of the individual directorto the board and committee meetings like preparedness on the issues to be discussed, meaningfuland constructive contribution and inputs in meetings, etc. In addition, the chairman was alsoevaluated on the key aspects of his role.
In a separate meeting of independent directors, performance of non-independent directors,performance of the board as a whole and performance of the chairman was evaluated, taking intoaccount the views of executive directors and non-executive directors. The same was discussed inthe board meeting that followed the meeting of the independent directors, at which theperformance of the board, its committees and individual directors was also discussed.Performance evaluation of independent directors was done by the entire board, excluding theindependent director being evaluated.
29. DIRECTORS AND KEY MANAGERIAL PERSONNEL:
The List of board of Directors and KMP as on March 31, 2026
Name ofDirector/KMP
Category &Designation
Date ofAppointment
Date ofResignation
Date of Changein Designationduring the Year
Executive ManagingDirector, Chairman
10/12/2021
Executive Whole¬Time Director
Ravi AshokkumarBhatia
Dhruvi ShyamKapadia
Non ExecutiveIndependent Director
13/02/2025
Vishwa Ronak Patel
Company Secretary
22/04/2023
31/10/2025
Renu Garg
Sunny HarishkumarVyaswala
Chief FinancialOfficer
22/12/2021
Change in Designation:
• There is no change in designation of any directors/KMP during the current financial year.
In accordance with Section 152(6) of the Companies Act, 2013 read with the Articles ofAssociation of the Company, Mr. Rameshchand Chanduram Bhatia (DIN: 09431185), ExecutiveDirector, retire by rotation and is being eligible has offered himself for re-appointment at theensuing Annual General Meeting. Company's policy on directors' appointment andremuneration is available in the web link https://www.bccl.info/assets/images/policy-on-appointment-and-removal-of-directors.pdf and
https://www.bccl.info/assets/images/remuneration-policy-of-directors-etc.pdf Based on theconfirmations received from Directors, none of the Directors are disqualified from appointmentunder Section 164 of the Companies Act, 2013.
30. DEPOSIT:
The company has not accepted deposits from the public during the financial year under reviewwithin the meaning of Section 73 of the Act of the Companies Act 2013, read with Companies(Acceptance of Deposits) Rules, 2014.
Details of money received from Directors:
SN Name of Directors O/S Amount as on year end
1 Bharat Brijlal Bhatia Nil
2 Rameshchand Chanduram Bhatia Nil
3 Ravi Ashokkumar Bhatia Nil
31. INTERNAL FINANCIAL CONTROL SYSTEM:
The Company has a well-placed, proper and adequate internal financial control system whichensures that all the assets are safeguarded and protected and that the transactions are authorizedrecorded and reported correctly. The internal audit covers a wide variety of operational mattersand ensures compliance with specific standard with regards to availability and suitability ofpolicies and procedures. During the year, no reportable material weakness in the design oroperation were observed.
32. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THEFINANCIAL STATEMENTS:
The Companies Act, 2013 re-emphasizes the need for an effective internal financial control systemin the company. Rule 8(5) (viii) of Companies (Accounts) Rules, 2014 requires the informationregarding adequacy of internal financial controls with reference to the financial statements to bedisclosed in the board's report. The detailed report forms part of Independent Auditors Report.
33. WHISTLE BLOWER POLICY / VIGIL MECHANISM:
The Company has established a mechanism called Vigil Mechanism/Whistle Blower Policy forthe directors and employees to report to the appropriate authorities off unethical behaviour,actual or suspected, fraud or violation of the Company's code of conduct or ethics policy andprovides safeguards against victimization of employees who avail the mechanism. The policypermits all the employees to report their concerns directly to the Chairman of the AuditCommittee of the Company.
The Vigil Mechanism/Whistle Blower Policy as approved by the Board is uploaded on theCompany's website. The web link is https://www.bccl.info/assets/images/Vigil Mechanism-Whistle Blower Policy R.pdf.
34. STATUTORY INFORMATION:
The Company is in trading & manufacturing of chemicals, dyes and auxiliary products and islisted on BSE SME Platform. Apart from this business, the company is not engaged in any otherbusiness/activities.
35. SECRETARIAL STANDARDS ISSUED BY THE INSTITUTE OF COMPANY SECRETARIESOF INDIA (ICSI)
The Company has devised proper systems to ensure compliance with the provisions of allapplicable Secretarial Standards issued by the Institute of Company Secretaries of India and suchsystems are adequate and operating effectively.
The Company complies with all applicable mandatory Secretarial Standards issued by theInstitute of Company Secretaries of India (ICSI)
36. CODE OF CONDUCT:
37. CERTIFICATION FROM COMPANY SECRETARY IN PRACTICE
Pursuant to Regulation 34(3) and Schedule V Para C clause (10) (i) of the SEBI (ListingObligations and Disclosure Requirements) Regulations, 2015 relating to CERTIFICATE OF NON¬DISQUALIFICATION OF DIRECTORS which is issued by PCS is not applicable to the company
as company has listed its specified securities on the SME Exchange only.
38. FRAUD REPORTING
During the year under review, no fraud has been reported by Auditors under Section 143(12) ofthe Companies Act, 2013.
39. INSURANCE:
All the properties and the insurable interest of the company including building, plants andmachinery and stocks wherever necessary and to the extent required have been adequatelyinsured. The company keeps reviewing the insurance amount every year as per requirement.
40. RESEARCH & DEVELOPMENT:
The Company believes that technological obsolescence is a reality. Only progressive research anddevelopment will help us to measure up to future challenges and opportunities. We invest in andencourage continuous innovation. During the year under review, expenditure on research anddevelopment is significant in relation to the nature size of operations of your Company.
41. APPRECIATION:
Your directors place on records their deep appreciation to employees at all levels for their hardwork, dedication and commitment and express their sincere thanks and appreciation to all theemployees for their continued contribution, support and co-operation to the operations andperformance of the company.
42. SEXUAL HARASSMENT OF WOMEN:
Our company goal has always been to create an open and safe workplace for every employee tofeel empowered, irrespective of gender, sexual preferences, and other factors, and contribute tothe best of their abilities.
The Internal Committee (IC) has been constituted as per the Sexual Harassment of Women atWorkplace (Prevention, Prohibition and Redressal) Act, 2013, and the committee includesexternal members with relevant experience. Half of the total members of the IC are women. Therole of the IC is not restricted to mere redressal of complaints but also encompasses preventionand prohibition of sexual harassment.
The Company did not receive any complaints on sexual harassment during the year 2025-26 andhence no complaints remain pending as of March 31, 2026.
43. THE DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THEINSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE FINANCIALYEAR:
There are no proceedings initiated/ pending against your company under the Insolvency andBankruptcy Code, 2016 and there is no instance of one-time settlement with any Bank or FinancialInstitution.
44. THE DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE ATTHE TIME OF ONE TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKINGLOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS ALONG WITH THEREASONS THEREOF DURING THE FINANCIAL YEAR:
It is not applicable to the company during the financial year under review.
45. STATEMENT THAT COMPANY HAS COMPLIED WITH MATERNITY BENEFIT ACT:
The company has complied the provisions of the Act.
46. CYBER SECURITY INCIDENT:
During the year, there are no incidents of cyber security breach reported.
47. CAUTIONARY STATEMENT:
Statements in this report and its annexures describing company's projections, expectations andhopes are forward looking. Though, these are based on reasonable assumption, their actualresults may differ.
48. CODE OF CONDUCT FOR PREVENTION OF INSIDER TRADING:
The Company has adopted the Code of Conduct for regulating, monitoring and reporting ofTrading by Insiders in accordance with the requirement of SEBI (Prohibition of Insider Trading)Regulations, 2015 and the Companies Act, 2013. The Code of internal procedures and conduct forRegulating, monitoring and Reporting of Trading by Insiders is available onhttps://www.bccl.info/assets/images/Insider Trading Policy R.pdf.
https://www.bccl.info/assets/images/CodeofPractice Procedures FairDisclosureofUPSI.pdf
49. ACKNOWLEDGEMENT:
Your Directors would like to express their sincere appreciation of the co-operation and assistancereceived from Shareholders, Bankers, regulatory bodies and other business constituents duringthe year under review.
Your Directors also wish to place on record their deep sense of appreciation for the commitmentdisplayed by all executives, officers and staff, resulting in successful performance of theCompany during the year.
Place: Surat For and on behalf of the Board of Directors
Date: July 31, 2026 Bhatia Colour Chem Limited
Sd/- Sd/-
Rameshchand Chanduram Bhatia Bharat Brijlal Bhatia
Whole-Time Director Chairman/Managing Director
DIN:09431185 DIN:09095082