X. Provisions and contingent liabilities
Provisions are recognised when the Company has a present
obligation (legal or constructive), as a result of past events,
and it is probable that an outflow of resources, that can be
reliably estimated, will be required to settle such an obligation.
The amount recognised as a provision is the best estimate of
the consideration required to settle the present obligation at
the balance sheet date, taking into account the risks and
uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those
cash flows (when the effect of the time value of money is
material).
When some or all of the economic benefits required to settle a
provision are expected to be recovered from a third party, a
receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the
receivable can be measured reliably.
A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there
is a possible obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
XI. Non-current assets held for sale
Non-current assets are classified as held for sale if its carrying
amount will be recovered principally through a sale
transaction rather than through continuing use. Non-current
assets classified as held for sale are measured at the lower of
their carrying value and fair value less costs to sell.
XII. Financial Instruments
Financial assets and financial liabilities are recognised when
the Company becomes a party to the contractual provisions of
the instruments.
Financial assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities at
fair value through Statement of Profit and Loss (FVTPL)) are
added to or deducted from the fair value of the financial assets
or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit
and loss are recognised immediately in Statement of Profit
and Loss.
A. Financial Assets:
(i) Recognition and initial Measurement: The Company initially
recognises loans and advances, deposits, debt securities
issues and subordinated liabilities on the date on which they
originate. All other financial instruments (including regular way
purchases and sales of financial assets) are recognised on the
trade date, which is the date on which the Company becomes
a party to the contractual provisions of the instrument. A
financial asset or liability is initially measured at fair value plus,
for an item not at FVTPL, transaction costs that are directly
attributable to its acquisition or issue. However, trade
receivables that do not contain significant financing
components are measured at transaction cost.
(ii) Classification of financial assets: On initial recognition, a
financial asset is classified to be measured at amortised cost,
fair value through other comprehensive income (FVTOCI) or
FVTPL.
A financial asset is measured at amortised cost if it meets both of
the following conditions and is not designated at FVTPL:
• The asset is held within a business model whose
objective is to hold assets to collect contractual cash flows;
and
• The contractual terms of the financial asset give rise on
specified dates to cash fiows that are solely payments of
principal and interest on the principal amount outstanding.
A debt instrument is classified as FVTOCI only if it meets both of
the following conditions and is not recognised at FVTPL;
i) The asset is held within a business model whose
objective is achieved by both collecting contractual cash
flows and selling financial assets; and
ii) The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Debt instruments included within the FVTOCI category
are measured initially as well as at each reporting date at
fair value. Fair value movements are recognized in the
Other Comprehensive Income (OCI). However, the
Company recognizes interest income, impairment losses
& reversals and foreign exchange gain or loss in the
Statement of Profit and Loss. On derecognition of the
asset, cumulative gain or loss previously recognised in
OCI is reclassified from the equity to Statement of Profit
and Loss. Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using the EIR
method.
Equity investments (other than investments in
subsidiaries and joint ventures):
All equity investments within the scope of Ind AS 109, ’Financial
Instruments’ are measured at fair value. Equity instruments which
are held for trading and contingent consideration recognised by
an acquirer in a business combination to which Ind AS 103 applies
are classified as at FVTPL. For all other equity instruments, the
Company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The
Company makes such election on an instrument-by instrument
basis. The classification is made on initial recognition and is
irrevocable. If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There
is no recycling of the amounts from OCI to Statement of Profit and
Loss, even on sale of investment. However, the Company may
transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are
measured at fair value with all changes recognized in the
Statement of Profit and Loss.
All other financial assets are classified as measured at FVTPL. In
addition, on initial recognition, the Company may irrevocably
designate a financial asset that otherwise meets the requirements
to be measured at amortised cost or at FVTOCI or at FVTPL if
doing so eliminates or significantly reduces an accounting
mismatch that would otherwise arise.
Financial assets at FVTPL are measured at fair value at the end of
each reporting period, with any gains and losses arising on
remeasurement recognized in statement of profit or loss. The net
gain or loss recognized in statement of profit or loss incorporates
any dividend or interest earned on the financial asset and is
included in the ’other income’ line item. Dividend on financial
assets at FVTPL is recognized when:
a. The Company’s right to receive the dividends is
established,
b. It is probable that the economic benefits associated
with the dividends will flow to the entity,
The dividend does not represent a recovery of part of cost of the
investment and the amount of dividend can be measured reliably.
iii) Impairment: The Company assesses at each reporting date
whether a financial asset (or a group of financial assets) is
impaired based on evidence or information that is available
without undue cost or effort. Expected credit losses are
assessed and loss allowances recognised if the credit
quality of the financial asset has deteriorated significantly
since initial recognition.
Ind AS 109 requires expected credit losses to be measured
through a loss allowance. The Company recognizes lifetime
expected losses for all contract assets and / or all trade
receivables that do not constitute a financing transaction. For all
other financial assets, expected credit losses are measured at an
amount equal to the 12-month expected credit losses or at an
amount equal to the life time expected credit losses, if the credit
risk on the financial asset has increased significantly since initial
recognition.
B. Financial liabilities and equity instruments
Financial liabilities are classified as at FVTPL when the
financial liability is either held for trading or it is designated as
at FVTPL.
(i) Recognition and initial Measurement:
A financial liability is classified as held for trading if:
i) It has been incurred principally for the purpose of
repurchasing it in the near term; or
ii) on initial recognition it is part of a portfolio of identified
financial instruments that the Company manages
together and has a recent actual pattern of short-term
profit-taking; or
iii) it is a derivative that is not designated and effective as a
hedging instrument.
A financial liability other than a financial liability held for trading
may be designated as at FVTPL upon initial recognition if:
i) such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would
otherwise arise;
ii) the financial liability forms part of a group of financial
assets or financial liabilities or both, which is managed
and its performance is evaluated on a fair value basis, in
accordance with the Company’s documented risk
management or investment strategy, and information
about the grouping is provided internally on that basis; or
iii) it forms part of a contract containing one or more
embedded derivatives, and Ind AS 109 permits the entire
combined contract to be designated as at FVTPL in
accordance with Ind AS 109.
Financial liabilities at FVTPL are stated at fair value, with any
gains or losses arising on remeasurement recognised in
Statement of Profit and Loss. The net gain or loss recognised in
Statement of Profit and Loss incorporates any interest paid on the
financial liability and is included in the ’other gains and losses’ line
item in the Statement of Profit and Loss. The Company
derecognises financial liabilities when, and only when, the
Company’s obligations are discharged, cancelled or they expire.
The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable is
recognised in Statement of Profit and Loss.
(ii) Subsequent measurement
The measurement of financial liabilities depends on their
classification, as described below:
a. Loans and borrowings
After initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortized cost using the
Effective Interest Rate (EIR) method. Gains and losses are
recognized in profit or loss when the liabilities are de¬
recognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortization is included as
finance costs in the statement of profit and loss.
b. Trade and other payables
These amounts represent liabilities for goods or services
provided to the Company which are unpaid at the end of the
reporting period. Trade and other payables are presented as
current liabilities when the payment is due within a period of 12
months from the end of the reporting period.
For all trade and other payables classified as current, the
carrying amounts approximate fair value due to the short
maturity of these instruments. Other payables falling due after
12 months from the end of the reporting period are presented
as non-current liabilities and are measured at amortized cost
unless designated as fair value through profit and loss at the
inception.
c. Other financial liabilities at fair value through profit or
loss:
Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through
profit or loss. Gains or losses on liabilities held for trading are
recognized in the statement of profit and loss.
Other financial liabilities: Other financial liabilities (including
borrowings and trade and other payables) are subsequently
measured at amortised cost using the effective interest
method.
(iii) Derecognition of financial liabilities: The Company
derecognises financial liabilities when, and only when, the
Company’s obligations are discharged, cancelled or have
expired. An exchange between with a lender of debt
instruments with substantially different terms is accounted for
as an extinguishment of the original financial liability and the
recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability
(whether or not attributable to the financial difficulty of the
debtor) is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability.
The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable
is recognised in the statement of profit and loss.
Significant accounting judgements, estimates and
assumptions:
The preparation of financial statements in conformity with the
recognition and measurement principles of Ind AS requires
management to make judgments, estimates and assumptions
that affect the reported balances of revenues, expenses, assets
and liabilities and the accompanying disclosures, and the
disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require
a material adjustment to the carrying amount of assets or liabilities
affected in future periods.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised if the revision affects
only that period, or in the period of the revision and future period, if
the revision affects current and future period.
The following are the areas of estimation uncertainty and critical
judgments that the management has made in the process of
applying the Company’s accounting policies:
i. Useful Lives of Property, Plant and Equipment:
Management reviews the useful lives of property, plant and
equipment at least once a year. Such lives are dependent
upon an assessment of both the technical lives of the assets
and also their likely economic lives based on various internal
and external factors including relative efficiency and operating
costs. Accordingly, depreciable lives are reviewed annually
using the best information available to the Management.
ii. Impairment: Determining whether the assets are impaired
requires an estimate in the value in use of the assets. The
value in use calculation requires the Management to estimate
the future cash flows expected to arise from the asset and a
suitable discount rate in order to calculate present value.
When the actual cash flows are less than expected, a material
impairment loss may arise.
iii. Provisions and Contingencies: Provisions and liabilities are
recognized in the period when it becomes probable that there
will be a future outflow of funds resulting from past operations
or events that can reasonably be estimated. The timing of
recognition requires application of judgement to existing facts
and circumstances which may be subject to change. The
amounts are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific
to the liability.
iv. Taxes: Deferred tax assets are recognized for unused tax
losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilized. Significant
management judgement is required to determine the amount
of deferred tax assets that can be recognised, based upon the
likely timing and the level of future taxable profits together with
future tax planning strategies.
v. Defined Benefit Obligation: The costs of providing Gratuity
and other post-employment benefits are charged to the
Statement of Profit and Loss in accordance with Ind AS 19
’Employee benefits’ over the period during which benefit is
derived from the employees’ services. The costs are assessed
on the basis of assumptions selected by the management.
These assumptions include salary escalation rate, discount
rates, expected rate of return on assets and mortality rates.
The same is disclosed in Note 35, ’Employee benefits ’.
vi. Inventories: An inventory provision is recognised for cases
where the realisable value is estimated to be lower than the
inventory carrying value. The inventory provision is estimated
taking into account various factors, including prevailing sales
prices of inventory item and losses associated with obsolete /
slow-moving / redundant inventory items. The Company has,
based on these assessments, made adequate provision in the books
vii. Leases : Significant judgments are required in the assumption
and estimates in order to determine the ROU Asset and lease
liability. The assumption and estimates include application of
practical expedients, selection of accounting policy choices,
assessment of lease terms, applicable incremental borrowing
rate, among others.
b. Security details:
Note 1 : Second ranking pari-passu charge by way of hypothecation of the company's entire stock of raw materials,
semi finished & finished goods, consumable stores & spares ,book debts, bills receivable, outstanding
monies & other receivables of the company , both present & future, ranking pari-passu with other participating
banks and Second raking pari-passu charge on entire fixed assets of the company ranking pari-passu with
other participating banks.
Note 2 : Pari passu second charge on entire movable and immovable fixed assets and pari passu second charge on
Current Assets and exclusive charge on Promoter's Residential property.
Note 3 : Extension of charges on stocks and receivables and pari-passu second charge on the entire fixed assets of
the company.
Note 4 : Pari passu second charge on current and fixed Assets of the Company.
Note 5 : Pari passu second charge with the existing credit facilities in terms of cash flows (including repayments) and
securities.
Note 6 : Paripassu second charge on the entire Current Assets of the Company and Paripassu second charge on the
entire Fixed Assets of the Company.
Note 7 : Second Pari passu charge on the entire current Assets of the Company, both present and future and second
Pari passu charge on the collateral securities offered for the existing facilities of the Company.
Note 8 : Charge on the assets purchased out of the term loan. Paripassu first charge on the assets situtaed at Pollachi
Unit, Paripassu second charge on the entire current assets of the Company along with other capital working
lenders.
Note 9 : First charges on immovable properties situated at Kanjikode unit.
Note 10 : First charges on assets created out of the loan.
II - Hire purchase loans from financial institution of ? 286.63 Lakhs (March 31,2024 : ?83.86 Lakhs) carries interest
@ 7.63% to 9.55% p.a. The loans are repayable in 60 monthly instalments starting from the respective date of
finance. The loan is secured by specific assets financed (Vehicle).
38. DISCONTINUED OPERATIONS
The Board of Directors at their meeting held on 27th February 2025 have decided to close the operations of one of the Spinning
units located at Hindupur, Andhra Pradesh, considering the unsustainable losses over the past several years and with no
visibility of any significant improvement in the near future.
Consequently, the working results of the unit has been disclosed in Discontinued Operations with comparative / prior periods
being re-presented / restated in Standalone and Consolidated Financial Statements. The assets and liabilities for the year
ended 31st March 2025 have been reclassified as Non Current Assets / Liabilities pertaining to Disposal Group for which
comparatives have not been restated.
40. Employee Benefit Plans
(a) Defined contribution plans - Provident Fund
In accordance with The Employees Provident Funds
Act, 1952 employees are entitled to receive benefits
under the provident fund. Both the employee and
the employer make monthly contributions to the plan
at a predetermined rate (12% for fiscal year 2025
and 2024) of an employee’s basic salary. All
employees have an option to make additional
voluntary contributions. These contributions are
made to the fund administered and managed by the
Government of India (GOI). The Company has no
further obligations under the fund managed by the
GOI beyond its monthly contributions which are
charged to the statement of profit and loss in the
period they are incurred.
The expense recognised during the period towards
this defined contribution plan is ' 380.83 Lakhs
(March 31,2024 - ' 337.99 Lakhs).
(b) Defined contribution plans - Employee State
Insurance
In accordance with Employees' State Insurance Act,
1948, the eligible employees are entitled to receive
benefits under the ESI Scheme. The employer
contributes 3.25 percent and employee contributes
0.75 percent, total share 4 percent. This fund is
managed by the ESI Corporation (ESIC) according
to rules and regulations stipulated there in the ESI
Act 1948, which oversees the provision of medical
and cash benefits to the employees and their family.
The Company has no further obligations under the
fund managed by the GOI beyond its monthly
contributions which are charged to the statement of
profit and loss in the period they are incurred.
The expense recognised during the period towards
this defined contribution plan is ' 63.44 Lakhs
(March 31,2024 - ' 60.55 Lakhs).
(c) Defined Benefit Plans - Gratuity
The company has defined benefit gratuity plan for
its employees, which requires contributions to be
made to a separately administered fund. It is
governed by the Payment of Gratuity Act, 1972. The
plan provides for a lump-sum payment to vested
employees at retirement, death, while in
employment or on termination of employment of an
amount equivalent to 26 days salary payable for
each completed year of service. Under the Act,
employee who has completed five years of service
is entitled to specific benefit. The level of benefits
provided depends on the member’s length of
service and salary at retirement age. The fund has
the form of a trust and it is governed by the Board of
Trustees. The Board of Trustees is responsible for
the administration of the plan assets including
investment of the funds in accordance with the
norms prescribed by the Government of India.
Each year, the Board of Trustees and the Company
review the level of funding in the India gratuity plan.
Such a review includes the asset-liability matching
strategy and assessment of the investment risk.
The Company decides its contribution based on the
results of this annual review.
The most recent actuarial valuation of the plan
assets and the present value of the defined benefit
obligation were carried out at 31 March 2025 by
Mr.Srinivasan Nagasubramanian, Armstrong
International Employee Benefits Solution, Fellow of
the Institute of Actuaries of India . Company’s
liability towards gratuity (funded) is actuarially
determined at each reporting date using the
projected unit credit method.
(i) Risk Exposure:
These plans typically expose the Company to
actuarial risks such as: investment risk, interest rate
risk, longevity risk and salary risk.
Investment risk The present value of the defined
benefit plan liability is calculated by
reference to the future salaries of the
plan participants. As such, an increase
in the salary of the plan participants will
increase the plan's liability.
Interest risk A decrease in the bond interest rate will
increase the plan liability; however, this
will be partially offset by an increase in
the return on the plan’s debt
investments.
Longevity risk The present value of the defined
benefit plan liability is calculated by
reference to the best estimate of the
mortality of plan participants both
during and after their employment.
An increase in the life expectancy of
the plan participants will increase
the plan’s liability.
Salary risk The present value of the defined
benefit plan liability is calculated by
reference to the future salaries of
plan participants. As such, an
increase in the salary of the plan
participants will increase the plan’s
liability.
The Company has not disclosed the fair values for short term / current financial instruments (such as short term trade receivables, short
term trade payables, Current Loans and Short term borrowings etc.,) because their carrying amounts are a reasonable approximation of
Fair value.
(c) Measurement of fair values:
The basis of measurement in respect of each class of financial assets and liabilities are disclosed in significant accounting policies.
43. CAPITAL MANAGEMENT:
The Company’s capital management strategy is to effectively determine, raise and deploy capital so as to create value for its
shareholders. The same is done through a mix of either equity and/or preference and/or convertible and/or combination of short term /
long term debt as may be appropriate.
The Company determines the amount of capital required on the basis of its product, capital expenditure, operations and strategic
investment plans. The same is funded through a combination of capital sources be it either equity and/or preference and/or convertible
and/or combination of short term/long term debt as may be appropriate.
The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and
elongate the maturity of its debt portfolio, and closely monitors its judicious allocation amongst competing capital expansion projects and
strategic acquisitions, to capture market opportunities at minimum risk.
The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans
and borrowings less cash and cash equivalents, Bank balances other than cash and cash equivalents and current investments.
44. FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES
The Company's financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company's financial assets
comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.
In course of its business, the Company is exposed to certain financial risks that could have significant influence on the Company's
business and operational / financial performance. These include market risk (including currency risk, interest rate risk and other price
risk), credit risk and liquidity risk.
The Board of Directors reviews and approves risk management framework and policies for managing these risks and monitors suitable
mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictablity to earnings.
In line with the overall risk management framework and policies, the treasury function provides services to the business, monitors and
manages through an analysis of the exposures by degree and magnitude of risks.
The Company uses derivative financial instruments to hedge risk exposures in accordance with the Company's policies as approved by
the board of directors.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market
risk includes borrowings, investments, trade payables, trade receivables, loans and derivative financial instruments.
a) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest
rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally
denominated in rupees and US dollars with a mix of fixed and floating rates of interest.
The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities, assuming the
amount of the liability outstanding at the year-end was outstanding for the whole year.
If interest rates had been 100 basis points higher / lower and all other variables were held constant, the Company's profit/ (loss) for the
year ended 31 March 2025 would decrease / increase by ' 326.53 Lakhs (for the year ended 31 March 2024 : decrease / increase by
' 369.69 Lakhs). This is mainly attributable to the Company's exposure to interest rates on its variable rate borrowings.
b) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange
rates. The Company enters into forward exchange contracts with average maturity of less than 6 month to hedge against its foreign
currency exposures relating to the recognised underlying liabilities and firm commitments. The Company's policy is to hedge its
exposures above predefined thresholds from recognised liabilities and firm commitments that fall due in 20-30 days. The Company does
not enter into any derivative instruments for trading or speculative purposes.
c) Commodity Price Risk
The Company's revenue is exposed to the market risk of price fluctuations related to its raw material i.e., Cotton. Market forces generally
determine prices for the cotton procured by the Company. These prices may be influenced by factors such as supply and demand,
production costs (including the costs of raw material inputs) and global and regional economic conditions and growth. Adverse changes
in any of these factors may increase the Cost of Production that the Company incurs for manufacture of Yarn.
The following table details the Company's sensitivity to a 5% movement in the input price of Cotton. The sensitivity analysis includes only
5% change in commodity prices for quantity consumed during the year, with all other variables held constant. A positive number below
indicates an increase in profit where the commodity prices reduces by 5%. For a 5% increase in commodity prices, there would be a
comparable impact on profit, and the balances below would be negative.
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk
arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other
balances with banks, loans and other receivables. To manage the credit risk, the company periodically assesses the financial reliability of
customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of
account receivables. Individual risk limits are set accordingly.
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 throughout each reporting period. To assess whether there is a significant increase in credit risk the
company compares the risk of default occuring on the asset as at the reporting date with the risk of default as at the date of initial
recognition. The company considers reasonable and supportive forward-looking information.
The average credit period on sales of products is 21 to 60 days. Credit risk arising from trade receivables is managed in accordance with
the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is
assessed based on a detailed study of credit worthiness and accordingly individual credit limits are defined/modified. The concentration
of credit risk is limited due to the fact that the customer base is large.
3) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial
instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset
quickly at close to its fair value.
The Group's treasury department is responsible for maintenance of liquidity (including quasi liquidity), continuity of funding as well as
timely settlement of debts. In addition, policies related to mitigation of risks are overseen by senior management. Management monitors
the Group's net liquidity position on the basis of expected cash flows vis a vis debt service fulfillment obligation.
The table below analysis derivative and non-derivative financial liabilities of the Company into relevant maturity groupings based on the
remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.
57. The Code on Social Security 2020 has been notified in the Official Gazette on 29th Septemeber 2020. the effective date from
which the changes are applicable is yet to be notified and the rules are yet to be framed. Impact, if any, of the change will be
assessed and accounted in the period in which the said code becomes effective and the rules framed thereunder are
published.
58. Events after the reporting period
The Board of Directors, in its meeting held on 23rd May 2025 has recommended a dividend of 30% (' 3 per fully paid up Equity
Shares ' 10/- each)for the year ended 31st March 2025 subject to the approval of the shareholders at the ensuing Annual
General Meeting.
60. Additional disclosure relating to Schedule III Amendment of Companies Act , 2013
(i) Details of Benami property:
No proceedings have been initiated or are pending against the company for holding any Benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder
(ii) Utilisation of borrowed funds and share premium:
A) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (intermediaries) with the understanding that the intermediary shall:
(a) 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
(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
B) The company has not received any funds 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:
a) 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 Beneficiaries) or
b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(iii) Compliance with number of layers of companies:
The company has complies with the number of layers prescribed under the Companies Act, 2013.
(iv) Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income tax Act,1961, that has not been recorded in the books of account.
(v) Details of crypto currency or virtual currency:
The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(vi) Valuation of Property, Plant and Equipment, intangible asset and investment property:
The company has not revalued its property, plant and equipment (including Right of use Assets) or intangible
assets or both during the current of previous year.
(vii) Struck off Companies:
The company does not have any transaction with companies struck off.
(viii) Wilful Defaulter:
The company had not been declared a wilful defaulter by any bank or financial institution or other lender (as
defined under the Companies Act, 2013) or consortium thereof. In accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.
(ix) The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of
Companies (ROC) beyond the statutory period.
61 The amounts and disclosures included in the financial statements of the previous year have been reclassified
wherever necessary to conform to the current year classification.
62. All figures are in lakhs unless otherwise stated and rounded off to the nearest two decimals.
Vide our report of even date attached For and on behalf of the Board of Directors
For VKS Aiyer & Co
Chartered Accountants ™ Chandra" t “Ý* fRavmdra, KTar
ICAI Firm Reg.No.: 000066S Chairma(nD and Mana|ingarector Chief Financial Officer
Prashanth Chandran S Kavitha
C.S.Sathyanarayanan Vice Chairman and Managing Director Company Secretary
Partner (DIN : 01909559) (FCS No. 8710)
M.No. : 028328
Place : Coimbatore
Date :23-May-2025
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