Provisions and contingent liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used to determine the present value is a pretax rate that reflects
current market assessments of the time value of money and the nsks specific to the liability. The increase in the provision due
to the passage of time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be
confirmed by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the
Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable
estimate of the obligation cannot be made.

Revenue recognition

Revenue is measured at the value of the consideration received or receivable. Amounts disclosed as revenue are
exclusive of GST and net of returns, trade allowances, rebates, discounts, and value added taxes.

The Company recognises revenue when the amount of revenue can be reliably measured, it Is probable that future economic
benefits will flow to the Company and specific critena have been met for each of the Company's activities as described below

Sale of goods

The Company earns revenue prlmanly from sale of manufactured goods (fabric, home textiles and garments). It has applied
the principles laid down in Ind AS 115. In case of sale to domestic customers, sale Is made on ex-factory basis and revenue is
recognized when the goods are dispatched from the factory gate. In case of export sales, revenue is recognized on shipment
date, when performance obligation is met.

Revenue from services

Revenue from services is recognized in the accounting period in which the services are rendered
Export Incentive

Export incentives under various schemes notified by government are accounted for In the year of exports based on
eligibility and when there is no uncertainty in receiving the same.

Dividend and Interest Income

Dividend income from investments is recognised when the shareholder's right to receive payment has been established
(provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured

reliab!y).lnterest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the
pnncipal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Insurance claims

Insurance claims are accounted for to the extent the company is reasonably certain of their ultimate collection.

Employee benefits
(i) Short-term obligations

Short term employee benefits (other than termination benefits) which are payable within 12 months after the end of the period

In which the employees render service are accounted on accrual basis. Company's contributions paid I payable during the
year to Provident Fund and ESIC are recognized in the statement of profit and loss account. All leave encashment dues for

the year are settled within the same year.

(il) Defined contribution plans

For certain group of employees, employee benefit in the form of Provident fund. Employees State Insurance Contribution and
Labour Welfare fund are defined contribution plans. The Company has no obligation, other than the contribution payable to
the respective fund The Company recognises contribution payable to these funds/ schemes as an expense, when an
employee renders the related service. If the contnbution payable to the scheme for service received before the balance sheet
date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the
contnbution already paid. If the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognised as an asset to the extent that the pre-payment will lead to. for example, a
reduction in future payment or a cash refund.

(iii)Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contnbution plan. The Company provides for
gratuity, a defined benefit retirement plan (‘the Gratuity Plan ) covering eligible employees of the Company. The Gratuity Plan
provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an
amount based on the respective employee's salary and the tenure of employment with the Company.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at
each balance sheet date.

The Company recognises the net obligation of a defined benefit plan in Its balance sheet as an asset or liability.
Remeasurement, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net
defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained
earnings throughOther Comprehensive Income (OCI) in the penod In which they occur. Remeasurement is not reclassified to
profit or loss in subsequent periods.

Foreign currency translation and translations

Transactions in foreign currency are translated into the respective functional currencies using the exchange rates prevailing

at the dates of the respective transactions Foreign exchange gains and losses resulting from the settlement of such

transactions and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities

denominated in foreign currencies are recognized in the statement of profit and loss and reported within foreign
exchange gains/ (losses).

Non-monetary assets and liabilities measured In terms of histoncal cost in foreign currencies are not retranslated. Foreign
currency gains and losses are reported on a net basis.

Income tax

The income tax expense or credit for the period is the tax payable on the current penod's taxable income based on the
applicable income tax rate adjusted by changes in deferred lax assets and liabilities attributable to temporary differences
and to unused tax losses.

Deferred income tax is provided in full, using the liability method on temporary differences ansing between the tax bases of
assets and liabilities and their carrying amount in the financial statement. Deferred income tax is determined using tax
rates(and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply
when the related deferred income tax assets is realised or the deferred income tax liability is settled

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if. it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable nght to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the Company has a legally enforceable nght to offset and intends either to settle on a net basis, or to realize the asset and
settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively Minimum Alternate Tax credit is recognised as deferred tax asset
only when and to the extent there is convincing evidence that the Company will pay normal Income tax during the specified
penod. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to
the extent there is no longer a convincing evidence to the effect that the Company will pay normal Income tax during the
specified period.

Earnings Per Share

Basic earnings per share

Basic earnings per share are calculated by dividing:
the profit attributable to owners of the Company

-by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in
equity shares issued dunng the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take Into account :the
after-income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the weighted
average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive
potential equity shares.

Government Grants

Grants from the government are recognized at their fair value where there is reasonable assurance that the grant will be
received, and the Company will comply with all attached conditions.

Government grants relating to the purchase of property, plant and equipment are Included in non-current liabilities as
deferred income and are credited to Profit and Loss on a straight - line basis over the expected lives of related assets and
presented within other income.

Critical estimates and judgments

The preparation of financial statements requires the use of accounting estimates which by definition will seldom equal the
actual results.

Management also need to exercise judgment In applying the company s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgment or complexity, and items which are
more likely to be materially adjusted due to estimates and assumptions turning out to be different than those onginally
assessed. Detailed Information about each of these estimates and judgments Is included in relevant notes together with
information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgment are:

Estimation of current tax expenses and Payable.

Estimation of defined benefit obligation.

Note - 36 : FAIR VALUE MEASUREMENT.

Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities,
short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term
maturities of these instruments.

2. Financial instruments with fixed and vanable interest rates are evaluated by the Company based on parameters such as
interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account
for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their
carrying amounts.

The fair values for loans and security deposits were calculated based on cash flows discounted using a current lending rate.
They are classified as level 3 fair values in the fair value hierarchy due to the Inclusion of unobservable inputs including
counter party credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are
classified as level 3 fair values in the fair value hierarchy due to the used of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

Level 1: quoted (unadjusted) pnces in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly.

Level 3: techniques which use inputs that have significant effect on the recorded fair valuethat are not based on observable
market data.

Note - 37: FINANCIAL RISK MANAGEMENT
Credit risk

Credit nsk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract, leading to
a financial loss. The Company Is exposed to credit nsk from its operation activities (primanly trade receivables) and from its
financing activities, foreign exchange transactions and other financial instruments.

The Company considers the probability of default upon Initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis through each reporting penod. To assess whether there is a significant increase in
credit nsk the Company compares the risk of default occurring on asset as at the reporting date with the nsk of default as
at the date of initial recognition. It considers reasonable and supportive forwarding-looking Information such as

I. Actual or expected significant adverse changes in business,

ii. Actual or expected significantchanges in the operating results of the counterparty,

iii Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its
obligations,

iv. Significant increase in credit risk on other financial instruments of the same counterparty,

v. Financial assets are wntten off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a
repayment plan with the Company.

Trade Receivables

Customer credit risk is managed subject to the Company's established policy, procedures and control relating to customer
credit nsk management. Trade receivables are non-interest bearing and generally on 7 days to 180 days credit term. Credit
limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly
monitored. The Company has no concentration of credit nsk as the customer base is widely distributed both economically
and geographically.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large
number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation
is based on actual incurred historical data The maximum exposure to credit risk at the reporting date is the carrying value of
each class of financial assets. The Company does not hold collateral security. The Company evaluated the concentration of
nsk with respect to trade receivables as low. as its customers are located in serveral junsdictions and mdustnes and operate
in largely independent markets

Dunng the year adequate provision for Doubtful Debts is provided which includes export and domestic receivables.
Trade Receivables Ageing Schedule:

Financial risk management objectives and policies

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The
Company s financial risk management policy is set by the Managing Board.

Market risk is the nsk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a

financial instrument The value of a financial statement may change as a result of changes in the interest rates, foreign

currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.

Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign

currency receivables, payables and loans and borrowings

The Company manages market nsk through a treasury department, which evaluates and exercises independent control over
the entire process of market risk management. The treasury department recommends risk management objectives and
policies, which are approved by Senior Management and the Audit Committee. The activities of this department include
management of cash resources. Implementing hedging strategies for foreign currency exposures like foreign exchange
forward contracts, borrowing strategies and ensuring compliance with market risk limits and policies.

Liquidity Risk

Prudent liquidity nsk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market
positions. Due to the dynamic nature of the underlying businesses. Company treasury maintains flexibility In funding by
maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity
position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash
flows.

(i) Financing arrangements

The Company had no un drawn borrowing facilities at the end of the reporting penod:

Note-38 : CAPITAL RISK MANAGEMENT
Risk Management

The Company aim to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize
returns to our shareholders. The capital structure of the Company Is based on management s judgment of the appropriate
balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion
to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the
underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid
to shareholders, return capital to shareholders or issue new shares. The Company's policy is to maintain a stable and strong
capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future
development and growth of its business. The Company's will take appropriate steps in order to maintain, or if necessary,
adjust, its capital structure.

Note-40: EXPORT PROMOTION CAPITAL GOODS (EPCG)

Export Promotion Capital Goods (EPCG) scheme allows import of certain capital goods including spares at concessional
duty subject to an export obligation for the duty saved on capital goods imported under EPCG scheme The duty saved on
capital goods imported under EPCG scheme being Government Grant, is accounted as stated in the Accounting
policy on Government Grant.

Note-41 : DETAILS OF CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE

The Provisions of Section 135 of the Companies Act 2013 are not applicable to the Company dunng the Financial Year
2024-25.

NOTE:- 47: Title deeds of Properties

Titles deeds of all the immovable properties in the Financial Statements are held in the name of the company only.

NOTE:- 48: Capital-work-in progress.

There is no Capital-work-in progress as on the date of balance sheet as at 31st March 2025. There is no project which is
temporarily suspended.

NOTE:- 49: Intangible Assots under development.

There are no any intangible assets under development as on the date of balance sheet as at 31st March 2025.

NOTE:- 50: Relationship with strike off companies.

Company does not have any transactions with the companies “Striken off" or in the process of strike off
NOTE:- 51: Scheme of arrangements

The company has not entered into any “Scheme of Arrangements' during the year ended 31st March 2025
NOTE - 52: Details of Benami Property Held

The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act. 1988 (45 of
1988) and the rules made there under. No proceeding has been initiated or pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act. 1988 (45 of 1988) and the rules made there under.

NOTE - 53: Compliance with number of layer of companies.

The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act
read with the Companies (Restriction on number of Layers) Rules. 2017

NOTE - 54: The Company has not traded or invested in crypto currency or virtual currency.

NOTE:-55: Registration of charges or satisfaction with Registrar of Companies.

The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory
period.

NOTE:-56: The Company has not done any revaluation of Property. Plant & Equipment or Intangible assets.

NOTE:-57: The Company was not declared as ‘willful defaulter by any bank or financial Institution or other lender.

Note : 58 The company has no such transactions which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (Such as search or survey or any
other relevant provisions of Income Tax Act, 1961).

Note 59: The company has not advanced or loaned or invested funds to any other person(s) or entity (les), Includng foreign
entities (Intermedianes) with the understanding that the intermediary shall:

I. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or

li Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note 60: The company has not received any fund from any person(s) or entity (ies), including foreign entities (Funding party)
with the understanding (whether recorded in writing or otherwise) that the company shall:

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the funding party (Ultimate Beneficlanes) or

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note 61: Restructuring of Debit

The operations of the company came to halt since March 2024 due to TN Government Order putting a ban on drawal of
processing water from Bhavani River, subsequently the Company has entered into a loan restructuring arrangement with its
consortium lenders under the Reserve Bank of India’s framework for relief measures in areas affected by natural calamities.
While the resolution plan has been approved by the majonty of the consortium lenders, one bank holding 7% of the debt
exposure has dissented from the plan, and one Non-Banking Financial Company (NBFC) with an outstanding loan of Rs.
625 lakh has not participated in the restructuring scheme. With respect to the dissenting lenders' non-participation in the
restructuring scheme, the Company has filed a writ petition before the Hon’ble High Court of Madras and obtained an
injunction order, with the matter being sub-judice. Repayment under the restructured plan is scheduled to commence from
the quarter ending March 2026 restructuring was implemented on 5th March 2025.

Note 62: Approved Financial Statements:

The Board of Directors of the company has reviewed the realizable value of all the current assets and has confirmed that the
value of such assets in the ordinary course of business will not be less than the value at which these are recognized in the
financial statements. In addition, the board has also confirmed the carrying value of the non-current assets in the financial
statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial statements
in its meeting held on 30th May 2025.

Note 63: Stock Statement

The Company has borrowed from banks on the basis of security of current assets. Quarterly returns or statements of current
assets filed by the Company are in agreement with books of accounts. Summary of reconciliation as at 31st March 2025 is
given below.

As per our report at even date For and on dehalf of the Board of Directors

For GOPALAIYER AND SUBRAMANIAN KG BAALAKRISHNAN B SRIRAMULU B SRIHARI

Chartered Accountants Executive Chairman Managing Director Director

DIN 00002174 DIN:00002560 DIN:00002556

RMAHADEVAN M. BALAJI RAMAPRABHA .S

UDIN 25027497BMNBAP5744 Partner Company Secretary Chief Financial Officer

Place . Coimbatore Membership No.027497

Dato : 30,05.2025___