Get Updates

Get notified about market trends, financial advice, and investment tips!

A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of K G Denim Ltd.

Mar 31, 2025

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 (âthe 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 Companyâs 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 âStriken off" or in the process of strike off
NOTE:- 51: Scheme of arrangements

The company has not entered into any âScheme 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 âwillful 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 Indiaâs 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 Honâble 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___

Mar 31, 2024

Provisions and Contingencies Provisions

A provision is recorded 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 reasonably estimated. The estimated liability for product warranties is recorded when products are sold based on technical evaluation. Contingent liabilities Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability. Show cause notices are not considered as Contingent Liabilities unless converted into demand. Contingent Assets Contingent assets are neither recognized nor disclosed in the financial statements.

(g) Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

(1) those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

(2) those measured at amortised cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. T ransaction costs of financial assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

(iii) Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

(h) Impairment of non-financial assets

Impairment of non-financial assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (cash-generating units). Non- financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

(i) Derivative financial instruments

Derivative financial instruments such as forward contracts are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value with changes in fair value recognised in the Statement of Profit and Loss in the period when they arise.

(j) Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

(k) Borrowings

Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.

(l) Borrowing costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to Statement of Profit and Loss.

(m) 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 risks 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.

(n) 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 criteria have been met for each of the Company''s activities as described below.

Sale of goods

The Company earns revenue primarily 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 Income

Dividend income from investment is recognized when the company''s right to receive is established which generally occurs when the shareholders approve the dividend.

Insurance claims

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

(0) Employee benefits

(1) 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 / 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.

(ii) Employment retirement benefits

a) Contribution to Provident Fund has been made to the respective authorities.

b) Gratuity liability as per the Actuarial Valuation has been provided in the accounts as at the year end.

(P) Foreign currency translation

1. Functional and presentation currency

The financial statements are presented in Indian rupee (INR), which is Company''s functional and presentation currency.

2. Transactions and balances

Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the Statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Profit and Loss.

Q) Income tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax 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 arising 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 right 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 right 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 period. 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.

(R) 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 during 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.

(S) 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.

(T) 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 originally 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:- 35 : 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 variable 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) prices 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 value that are not based on observable market data.

Note: - 36: FINANCIAL RISK MANAGEMENT Credit risk

Credit risk 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 risk from its operation activities (primarily 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 period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk 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 significant changes 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 written 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 risk 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 risk 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 risk with respect to trade receivables as low, as its customers are located in serveral jurisdictions and industries and operate in largely independent markets.

During the year adequate provision for Doubtful Debts is provided which includes export and domestic receivables.

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 risk 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 risk 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 risk 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 undrawn borrowing facilities at the end of the reporting period:

(a) (iii) Market Risk- Price Risk

(a) Exposure

The Company''s exposure to equity securities traded in stock exchange held by the Company as long term and classified in the balance sheet at fair value through OCI. The risk is marginal on account of investment being minimal.

(b) Sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Company''s equity and Gain / Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company''s equity instruments moved in line with the index.

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders. The capital structure of the Company is based on management''s judgement 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 will take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

Note:- 39 : 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.

II Commitments

There are no contracts remaining to be executed in Capital Account Note :- 42 SEGMENT REPORTING:

In accordance with IND AS Segment information has been given in the consolidated f inancial statements of the company and therefore no separate disclosure o n segment information in these financial statements.

Explanations to items included in computing the above ratios

1. Current Ratio: Current Assets over current liabilities

2. Debit-Equity Ratio: Debt (includes Borrowing and current & non-current lease liabilities) over total shareholders'' equity (including reserves & surplus)

3. Debt Service Coverage Ratio: EBIT Depreciation Profit or Loss on sale of assets/investments over lease payments (Principal & Interest) Loans repayments (Principal & Interest)

4. Return on Equity Ratio: PAT over average Equity (including Reserve & Surplus)

5. Inventory Turnover Ratio: Revenue from operations over average Inventory

6. Trade Receivables Turnover Ratio: Revenue from operations over average Trade Receivables (after impairment)

7. Trade Payables Turnover Ratio: Purchases over average Turnover Payable

8. Net Capital Turnover Ratio: Revenue from Operations

9. Net Profit Ratio: Net profit tax over Revenue from operations

10. Return on Capital Employed: PBIT over Capital Employed (Capital Employed includes total shareholders'' equity, borrowings, short term and long-term lease liabilities and Deferred Tax Liability)

11. Return on Investment: Interest Income Dividend Income Realised gain on investment over average investments after impairment and other bank deposits.

The Non-GAAP Measures presented may not be comparable to similarly titled measures reported by other companies. Further, it should be noted that EBIDTA, EDITDA Margin, Gross Margin, Net Worth, Return on Net Worth, Net Asset Value (Per Equity Share), Debt Equity Ratio, Return on Capital Employed, Return on Equity is not measure of operating performance or liquidity defined by generally accepted accounting principles and may not be comparable to similarly titled measures presented by other companies.

NOTE: - 46 Loans and advances.

The company has not granted any loans or advances in the nature of loans, to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

NOTE: - 47: Relationship with strike off companies.

Company does not have any transactions with the companies âStrike offâ or in the process of strike off.

NOTE: 48: Scheme of arrangements

The company has not entered into any âScheme of Arrangementsâ during the year ended 31^st March 2024.

NOTE: 49: 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:- 50 : 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:- 51: The Company has not traded or invested in crypto currency or virtual currency.

NOTE:-52: 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:-53: The Company was not declared as "wilful defaulterâ by any bank or financial Institution or other lender.

Note : 54 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 55: 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:

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

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

Note 56: 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 indentified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or

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

NOTE:- 57: 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:- 58: Capital-work-in progress.

There is no Capital-work-in progress as on the date of balance sheet as at 31^st March 2024. There is no project which is temporarily suspended.

NOTE:- 59: Intangible Assets under development.

There are no any intangible assets under development as on the date of balance sheet as at 31^st March 2024.

NOTE:-60: The Company has not done any revaluation of Property, Plant & Equipment or Intangible assets.

NOTE 61: There are certain amounts remaining overdue to the trade creditors. Some of the trade creditors have issued legal notices demanding their dues thereby indicating liquidity stress. Subsequently, trade creditors for aggregate value of Rs. 1075.54 Lakh have filed liquidation petitions before the NCLT.

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 29^th May 2024.

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 not in agreement with books of accounts. Summary of reconciliation and reasons for material discrepancies as at 31^st March 2024 is given below.

The aforesaid difference, were due to the declaration made to the bank before financial reporting closure process. The predominant reason for trade receivables being lower in financial statement are the difference is due to the credit notes, discount and other year end provisions in financial statement. Similarly with respect to inventory being higher in financial statement is because of stock valuation as part of year end cut-off procedures.

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

For GOPALAIYER AND SUBRAMANIAN KG BAALAKRISHNAN B SRIRAMULU BSRIHARI

Chartered Accountants Executive Chairman Managing Director Managing Director

DIN:00002174 DIN:00002560 DIN:00002556

RMAHADEVAN P RAJESH S MANICKAM

^UD|N : ^24027497^BKAVBF1671 Partner Company Secretary Chief Financial Officer

^p|ace ^: Co^imbatore Date : 29.05.2024

Mar 31, 2023

m) 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 risks 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 eventsbut 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 bemade.

(n) 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 benefitswill flow to the Company and specific criteria have been met for each of the Company''s activities as described below.

Sale of goods

The Company earns revenue primarily from sale of manufactured goods (fabric, home textiles and garments). Ith as applied the principles laid downinIndAS115. Incase 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 Income

Dividend income from investment is recognized when the company''s right to receive is established which generally occurs when the shareholders approve the dividend.

Insurance claims

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

(0) Employee benefits

(1) 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 / payable during the \year to Provident Fund and ESIC arerecognized in the statement of profit and loss account.All leave encashment dues for the year are settled within the same year.

(ii) Employmentretirement benefits

a) Contribution to Provident Fund has been made to the respective authorities.

b) Gratuity liability as per the Actuarial Valuation has been provided in the accounts as atthe year end.

(p) Foreign currency translation

1. Functional and presentation currency

The financial statements are presented in Indian rupee (INR), which is Company''s functional and presentation currency.

2. Transactions and balances

(q) Income tax

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if, it is probable that future taxable amounts will beavailable toutilisethose temporary differences and losses.

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 Taxcredit is recognised as deferred tax asset onlywhen and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. 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.

(r) 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 during 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.

(s) 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 noncurrent 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.

(t) 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 companyâs 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 originally 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:- 35 : 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.

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) prices 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 value that are not based on observable market data.

Note: - 35 : FINANCIAL RISK MANAGEMENT Credit risk

Credit risk 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 creditrisk from its operation activities (primarily 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 period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurringon asset asat the reporting date with the risk 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 significant changes 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 creditrisk on other financial instruments of the same counterparty,

v. Financial assets are written 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

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 risk with respect to trade receivables as low,as its customers are located in serveral jurisdictions and industries and operate in largely independent markets.

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.

Liquidity Risk

Note :- 36 : CAPITAL RISK MANAGEMENT Risk Management

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders. The capital structure of the Companyis based on management''s judgementof the appropriate balance of key elements in order tomeet 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 will take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

Explanations to items included in computing the above ratios

1. Current Ratio: Current Assets over current liabilities

2. Debit-Equity Ratio: Debt(includes Borrowing and current & non-current lease liabilities) over total shareholdersâ equity (including reserves & surplus)

3. Debt Service Coverage Ratio: EBIT Depreciation Profit or Loss on sale of assets/investments over lease payments (Principal & Interest) Loans repayments (Principal & Interest)

4. Return on Equity Ratio: PAT over average Equity (including Reserve & Surplus)

5. Inventory Turnover Ratio: Revenue from operations over average Inventory

6. Trade Receivables Turnover Ratio: Revenue from operations over average Trade Receivables (after impairment)

7. Trade Payables Turnover Ratio: Purchases over average Turnover Payable

8. Net Capital Turnover Ratio: Revenue from Operations

9. Net Profit Ratio: Net profit tax over Revenue from operations

10. Return on Capital Employed: PBIT over Capital Employed (Capital Employed includes total shareholdersâ equity, borrowings, short term and long-term lease liabilities and Deferred Tax Liability)

11. Return on Investment: Interest Income Dividend Income Realised gain on investment over average investments after impairment and other bank deposits.

Fhe Non-GAAP Measures presented may not be comparable to similarly titled measures reported by other companies. ^rurther, it should be noted that EBIDTA, EDITDA Margin, Gross Margin, Net Worth, Return on Net Worth, Net Asset Value Per Equity Share), Debt Equity Ratio, Return on Capital Employed, Return on Equity is not measure of operating Derformance or liquidity defined by generally accepted accounting principles and may not be comparable to similarly titled measures presented by other companies.

ADDITIONAL REQULATORY INFORMATION MOTE:- 45: Loans and advances.

The company has not granted any loans or advances in the nature of loans, to promoters, directors, KMPs and the related Darties (as defined under Companies Act, 2013), either severally or jointly with any other person.

MOTE:- 46: Relationship with strike off companies.

Company does not have any transactions with the companies âStriken offâ or in the process of strike off.

MOTE: 47: Scheme of arrangements

The company has not entered into any âScheme of Arrangementsâ during the year ended 31^st March 2023.

MOTE: 48: 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 Denami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under.

NOTE:- 49 : 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:- 50: The Company has not traded or invested in crypto currency or virtual currency.

NOTE:-51: Registration of charges or satisfaction with Registrar of Companies. beyond the statutory period

NOTE:-52: The Company was not declared as âwilful defaulterâ by any bank or financial Institution or other lender. Registration of charges or satisfaction with Registrar of Companies. beyond the statutory period

Note : 53 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 54: 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:

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

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

Note 55: 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 indentified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or

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

NOTE:- 56: 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:- 57: Capital-work-in progress.

There is no Capital-work-in progress as on the date of balance sheet as at 31^st March 2023. There is no project which is temporarily suspended.

NOTE:- 58: Intangible Assets under development.

There are no any intangible assets under development as on the date of balance sheet as at 31^st March 2023.

NOTE:-59: The Company has not done any revaluation of Property, Plant & Equipment or Intangible assets.

Note 60: 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, theboard 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 25^th May 2023.

Note 61: Stock statement

The aforesaid difference, were due to the declaration made to the bank before financial reporting closure process. The predominant reason for trade receivables being higher in financial statement are the difference is due to the credit notes, discount and other year end provisions in financial statement. Similarly with respect to inventory being higher in financial statement is because of stock valuation as part of year end cut-off procedures.

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

For GOPALAIYER AND SUBRAMANIAN KG BAALAKRISHNAN B SRIRAMULU B SRIHARI

Chartered Accountants Executive Chairman Managing Director Managing Director

DIN :00002174 DIN : 00002560 DIN : 00002556

R MAHADEVAN P KRISHNAVENI S MANICKAM

Partner Company Secretary Chief Financial Officer

Place : Coimbatore Membership No.027497 Date : 25.05.2023

Mar 31, 2018

Note :

Building includes Prayer Hall and Gold plating theron of Rs. 109.14 Lakhs in Gross Carrying value, Rs. 7.32 Lakhs in Depreciation block and Rs.101.82 Lakhs in Net Block (Previous year Rs. 109.14 Lakhs in Gross Carrying value, Rs. 3.66 Lakhs in Depreciation and Rs.105.48 lakhs in Net Block )

Furniture & Fittings includes Prayer Hall of Rs. 4.53 Lakhs in Gross Carrying value, Rs. 3.79 Lakhs in Depreciation Block and Rs.0.74 Lakhs in Net Block (Previous year Rs. 4.53 Lakhs in Gross Carrying Value, Rs. 2.02 Lakhs in Depreciation and Rs.2.51 Lakhs in Net Block)

Office Equipment includes Prayer Hall of Rs. 0.47 Lakhs in Gross Carrying Value, Rs. 0.20 Lakhs in Depreciation Block and Rs.0.27 Lakhs in Net Block (Previous year Rs. 0.47 Lakhs in Gross Carrying Value, Rs. 0.10 Lakhs in Depreciation and Rs.0.37 lakhs in Net Block )

Terms and conditions of equity shares :

The company has only one class of equity shares having a par value of Rs.10 per share. Each share holder is eligible for one vote per share.

In the event of liquidation the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion of their shareholding. There are no shares allotted as fully paid without payments being received in cash, bonus shares or shares bought back._

Bank borrowings of Term Loan

Term Loans from Indian Bank (IB) and The South Indian Bank (SIB) are secured by first pari passu charge on (a) all immovable properties situated in (i) 102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and (ii) 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and (b) all plant and machineries including machineries and other movable fixed assets (excluding vehicles charged to financiers, Peelamedu Property, Mumbai Property and Banglore Property) acquired for the Expansion cum Diversification Scheme (ECDS) and New Capex Plan through Deed of Hypothecation and second pari passu charge on current assets of the Company.

Term Loan for 10 MW Power Plant from Indian Bank Rs.2868 lakhs and The South Indian bank Ltd Rs.1470 laksh are secured by pari passu first charge on Fixed Assets relating to power plant project and pari passu second charge on current assets of the Company.

Indian Bank is holding the original title deeds on its own behalf and on behalf of other Banks. Term Loans are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

The Company has availed Seven Term loans and One Corporate Loan from Indian Bank and loan outstanding is - Term Loan III Rs. Nil and Term Loan IV Rs.596.74 lakhs and Term Loan V Rs. Nil, Term Loan VI Rs.827.68 lakhs, Term Loan VII Rs. Nil and Term Loan VIII Rs. 21.65 and Corporate Loan Rs.2020 lakhs (Previous year Rs.74.47 lakhs, Rs.865.14 lakhs, Rs.243.46 lakhs, Rs.1015.96 lakhs,Rs. Nil, Rs.Nil & Rs. Nil respectively). Term Loan III is repayable in 60 monthly installments commencing from 01.09.2013.Last installment is due on 01.08.2018.Rate of Interest 12.20% p.a.as at year end. (Previous year 12.40% p.a). Term Loan IV is repayable 72 monthly installments commencing from 03.10.2015. Last installment is due on 03.10.2021.Rate of Interest 11.70% p.a as at year end. (Previous year 12.25% p.a). Term Loan V is repayable 60 monthly installments commencing from 01.07.2014. Last installment is due on 01.06.2019. Rate of interest 12.25% p.a as at year end. (Previous year 12.25%). Term Loan VI is repayable 96 monthly installments commencing from 25.12.2015. Last installment is due on 25.12.2023. Rate of interest 11.75% p.a. as year end (Previous year 12.25%). Term Loan VII is repayable 84 monthly installments commencing from 15.05.2017. Last installment is due on 15.05.2024. Rate of interest 11.65%.Term Loan VIII is repayable 84 monthly installments commencing from 02.02.2018. Last installment is due on 02.02.2025. Rate of interest 11.65%. Corporate Loan is repayable in 48 monthly installments commencing from 01.04.2018. Last installment is due on 01.04.2022 Rate of interest 10.50% p.a as at year end.

The Company has availed a Term Loan from The South Indian Bank Ltd and loan outstanding is- Rs.734.27 lakhs (Previous year Rs.945.13 lakhs). Term Loan is repayable in 84 monthly installments commencing from 25.12.2015. Last Installment is due on 25.12.2022. Rate of Interest 12.05% p.a. as at year end (Previous year 12.25% p.a).

The Company has availed a Term Loan from ICICI Bank Ltd and loan outstanding is Rs.264.00 lakhs (Previous year Rs. Nil). Term Loan is repayable in 120 monthly installments commencing from 05.05.2017. Last Installment is due on 05.05.2027. Rate of Interest 8.50% p.a. as at year end. ICICI Bank is having an exclusive charge on the Bangalore office property.

The Company has availed a Term Loan from Repco Bank Ltd and loan outstanding is Rs.470.00 lakhs (Previous year Rs. Nil). Term Loan is repayable in 120 monthly installments commencing from 01.04.2018. Last Installment is due on 01.04.2028. Rate of Interest 11.00% p.a. Repco Bank is having an exclusive charge on 24.25 acres of land situated at Jadayampalayam.

Term Loan from others :

The Company has availed a Term Loan from HDFC and loan outstanding is Rs.72.25 lakhs (Previous year Rs.118.90 lakhs). Term Loan is repayable in 84 monthly installments commencing from 20.11.2014. Last Installment is due on 20.11.2021. Rate of Interest 13.50% p.a. as at year end (Previous year 13.50% p.a) HDFC is having an exclusive charge on the Mumbai office property.

Working Capital facilities from Indian Bank Consortium (Indian Bank, Andhra Bank, Allahabad Bank, State Bank of India and The South Indian Bank Limited) are secured by a first pari passu charge on the whole of the current assets through Deed of Hypothecation and second pari passu charge on (a) all the immovable properties situated in (i) 102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai Villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and (ii) 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and (b) all plant and machineries (excluding vehicles charged to financiers, Peelamedu property, Mumbai property and Banglore property) through Deed of Hypothecation. The entire working capital facilities are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

These are the Companyâs first financial statements prepared in accordance with Ind AS.

The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April, 2017, with a transition date of 1st April, 2016. Ind AS 101-First-time Adoption of Indian Accounting Standards requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended 31st March, 2018 for the company, be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below. The resulting difference in the carrying values of the assets and liabilities as at the transition date between the Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity).

Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Optional Exemptions availed

(a) Deemed Cost

The Company has opted paragraph D7 AA and accordingly considered the carrying value of property, plant and equipments and Intangible assets as deemed cost as at the transition date.

(b) Investments in subsidiaries

The Company has opted para D14 and D15 and accordingly considered the Previous GAAP carrying amount of Investments as deemed cost as at the transition date.

The company has opted to apply the exemption under para 19B to designate investments in equity instruments at FVOCI on the basis of facts and circumstances at the date of transition to INDAS.

B. Applicable Mandatory Exceptions

(a) Estimates

An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVPL or FVOCI;

- Impairment of financial assets based on expected credit loss model.

(b) Classification and measurement of financial assets

As required under Ind AS 101 the company has assessed the classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

I. Reconciliation of Balance sheet as at April 1, 2016 (Transition Date)

II. A. Reconciliation of Balance sheet as at March 31, 2017

B. Reconciliation of Total Comprehensive Income for the year ended March 31, 2017

III. Reconciliation of Equity as at April 1, 2016 and as at March 31, 2017

IV. Adjustments to Statement of Cash Flows

The presentation requirements under Previous GAAP differs from Ind AS, and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.

The following explains the material adjustments made while transition from previous accounting standards to IND AS

Note - : FIRST TIME ADOPTION OF Ind AS

The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped previous GAAP information is derived from the financial statements of the company prepared in accordance with previous GAAP

A Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events and accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend along with income tax there on Rs.231.57 Lakh as at 1st April, 2016 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity has been increased by an equivalent amount.

B Fair valuation of investments:

Under the previous GAAP, investments in equity instruments were classified as long-term investments or current investments based on the intended holding period and realisability. Long term investments were carried at cost less provisions for other than temporary decline in the value of such investments. Current investment were carried at lower of cost and fair value. Under IND AS, these investments are required to be measured at fair value. The resulting fair value changes of these investment have been recognised in retained earnings Rs.0.83lakh as at 31^st March 2017 (Rs.-1.28 lakh as at 1^st April 2016)

C Government Grant

Apportionment of Government Grant recognised under Export Promotion Capital Goods (EPCG) scheme and corresponding charge of depreciation on account of grossing-up of Property, Plant & Equipment are now recognised in accounts.

D Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

E Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes remeasurements of investments. The concept of other comprehensive income did not exist under previous GAAP.

F Deferred Tax

Deferred Tax on aforesaid IND AS adjustments

G Current Tax

Tax component on Actuarial Gains and losses is transferred to Other Comprehensive Income under IND AS .As required under the IndAS, the same has been debited to Profit and Loss.

H The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2016 as compared with the previous GAAP.

Note : 1: 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.

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 use 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) prices 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 a significant effect on the recorded fair value that are not based on observable market data.

Credit risk

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

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterpartyâs ability to meet its obligations,

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

Financial assets are written off when there is no reasonable expectations 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 Companyâs established policy, procedures and control relating to customer credit risk management. Trade receivables are non-intererst 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 risk 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 evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in serveral jurisdictions and industries and operate in largely independent markets.

Liquidity Risk

Prudent liquidity risk 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 Companyâs 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 access to the following undrawn borrowing facilities at the end of the reporting period:

Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn within one year.

Financial risk management objectives and policies

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

Market risk is the risk 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 instrument 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 risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommend 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.

Market Risk- Interest rate risk

The Companyâs borrowings are of fixed rate nature only. Hence interest rate risk is not applicable and hence no sensitivity analysis.

Market Risk- Foreign currency risk.

The company manages foreign currency risk primarily through forward contracts Derivative instruments and unhedged foreign currency exposure

(a) Exposure

The Companyâs exposure to equity securities traded in stock exchange held by the Company as long term and classified in the balance sheet at fair value through OCI. The risk is marginal on account of investment being minimal.

(b) Sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Companyâs equity and Gain/ Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Companyâs equity instruments moved in line with the index.

Above referred sensitivity pertains to quoted equity investment. Profit for the year would increase / (decrease) as a result of gains/lossess on equity securities as at fair value through profit or loss.

Note :- 2 - CAPITAL RISK MANAGEMENT

(a) Risk Management

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders. The capital structure of the Company is based on managementâs judgement 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 Companyâs 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 will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Note :- 3 - 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:4 - GST

The Company is liable to pay tax under Goods and Service Tax Act with effect from 1st July 2017.

Revenue / Expenses for the year 2017-18 are net of GST and hence not comparable with that of earlier years.

Note 5 :

The company has an investment of Rs 450 lakhs in the shares of Trigger Apparels Limited a wholly owned subsidiary of the company. The net worth of TAL has eroded due to business losses; However the management has not considered revaluation of its investment during the current year due to the fact that TAL has taken effective steps to improve its performance by reorienting product mix with value added products in line with latest fashion trends. Considering the higher recall for the Trigger Brand and the move over to direct Retail Marketing in the backdrop of Retail Revaluation happening in India, the business has bright prospects in the ensuing years. Management therefore considers that the business will have better value and that there is no need for provision for the losses as of now.

Note 6 : Segment Reporting:

In accordance with IND AS Segment information has been given in the consolidated financial statements of the company and therefore no separate disclosure on segment information in these financial statements.

Note 7 : Trade payable

Trade payable referred under current liability to Small Scale Industrial units is complied on the information made available to the company includes due of Rs.52.02 lakh of more than 30 days and exceeding Rs.1 lakh to the following parties : Sri Abirami Tubes - Rs.17.76 lakh, Nava Bharath Packaging - Rs.9.59 lakh, Acme Textiles-Rs.3.68 lakh, Asmaco Packaging IND-Rs.15.3 lakh and Harini Packs-Rs.5.69 lakh.

In the absence of necessary information with company, relating to the registration status of suppliers under the Micro. Small and Medium Enterprises Development Act 2006 the information required under the said Act. Could not be complied and disclosed.

Mar 31, 2016

Term Loans from Indian Bank (IB), Bank of India (BOI), State Bank of India (SBI) and Indian Overseas Bank (IOB) are secured by first pari passu charge on (a) all immovable properties situated in (i) 102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai Villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and (ii) 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and (b) all plant and machineries including machineries and other movable fixed assets (excluding vehicles charged to financiers, Peelamedu property & Mumbai property) acquired for the Expansion cum Diversification Scheme (ECDS) and New Capex Plan through Deed of Hypothecation and second pari passu charge on current assets of the Company.

Term Loan for 10 MW Power Plant from Indian Bank Rs.1480 lakhs, Bank of India Rs.1480 lakhs and The South Indian Bank Limited Rs.1470 lakhs are secured by pari passu first charge on Fixed Assets relating to power plant project and pari passu second charge on Current Assets of the Company.

Indian Bank is holding the original title deeds on its own behalf and on behalf of other Banks. Term Loans are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

The Company has availed Two Term Loans and One Corporate Loan from Indian Bank and Loan outstanding is - Term Loan III Rs.315.08 lakhs and Term Loan IV Rs.1110.99 lakhs and Corporate Loan Rs.333.32 lakhs (Previous Year Rs.555.08 lakhs, Rs.1356.99 lakhs & Rs.666.64 lakhs respectively). Term Loan III is repayable in 60 monthly installments commencing from 01.09.2013. Last installment is due on 01.08.2018. Rate of Interest 12.40% p.a. as at year end. (Previous Year 13.00% p.a). Term Loan IV is repayable 72 monthly installments commencing from 03.10.2015. Last installment is due on 03.10.2021. Rate of Interest 12.25% p.a as at year end. (Previous Year 12.25% p.a.). Corporate Loan is repayable in 12 equal quarterly installments commencing from 01.06.2015. Last installment is due on 01.03.2018 Rate of interest 12.30% p.a. as at year end.

The Company has availed Two Term Loans from Bank of India and Loan outstanding is - Term Loan III Rs.508.56 lakhs and Term Loan IV Rs.1202.45 (Previous Year Rs.738.56 lakhs and Rs.1387.49 lakhs respectively). Term Loan III is repayable in 60 monthly installments commencing from 01.07.2014. Last installment is due on 01.06.2019. Rate of Interest 12.25% p.a as at year end. (Previous Year 14.00% p.a). Term Loan IV is repayable 96 monthly installments commencing from 25.12.2015. Last installment is due on 25.12.2023. Rate of Interest 12.25% p.a as at year end (Previous Year 12.25% p.a.).

The Company has availed One Term Loan from State Bank of India and Loan outstanding is - Term Loan II for Rs.328.86 lakhs (Previous Year Rs.608.86). Term Loan II is repayable in 60 monthly installments commencing from 01.04.2013. Last Installment is due on 01.03.2018. Rate of Interest 13.30% p.a. as at year end. (Previous Year 13.60% p.a).

The Company has availed Two Term Loans from Indian Overseas Bank and Loan outstanding is- Term Loan I Rs.Nil and Term Loan II Rs.Nil (Previous Year Rs.82.44 lakhs & Rs.106.37 lakhs respectively) Term Loan I is repayable in 20 quarterly installments commencing from 19.06.2012. Last Installment is due on 19.03.2017. (Repayable within one year) Rate of Interest 14.00% p.a. as at year end. (Previous Year 14.00% p.a.) and Term Loan II is repayable in 60 monthly installments commencing from 28.04.2012. Last Installment is due on 28.03.2017(Repayable with one year). Rate of Interest 14.25% p.a. as at year end.(Previous Year 14.25% p.a.)

The Company has availed a Term Loan from The South Indian Bank Ltd. and Loan outstanding is- Rs. 1155.05 (Previous Year Rs.1365.05 lakhs). Term Loan is repayable in 84 quarterly installments commencing from 25.12.2015. Last Installment is due on 25.12.2022. Rate of Interest 12.25% p.a. as at year end (Previous Year 12.25% p.a.).

Term Loan from others :

HDFC Ltd. Loan Rs.230 lakhs for Mumabi Office Premises - Mortgage of the property - Office space in Mumbai.

The Company has availed a Term Loan from HDFC Ltd. and Loan outstanding is Rs.141.44 lakhs (Previous Year Rs.171.76 lakhs). Term Loan is repayable in 84 monthly installments commencing from 20.11.2014. Last Installment is due on 20.11.2021. Rate of Interest 13.50% p.a. as at year end (Previous Year 13.50% p.a.).

Security Clause

Working capital facilities from Indian Bank Consortium (Indian Bank, Bank of India, Allahabad Bank, State Bank of India and The South Indian Bank Limited) are secured by a first pari passu charge on the whole of the current assets through Deed of Hypothecation and second pari passu charge on (a) all the immovable properties situated in (i) 102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai Villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and (ii) 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and (b) all plant and machineries (excluding vehicles charged to financiers, Peelamedu property & Mumbai property) through Deed of Hypothecation. The entire working capital facilities are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

The Company has investment of Rs.450 lakhs in the shares of M/s Trigger Apparels Limited (TAL), a wholly owned subsidiary of the company. The net worth of TAL has eroded due to trading losses, However, considering the fact that the investment is strategic in nature and steps being taken by the company to improve the performance of TAL, no provision is considered necessary by the management for diminution in value of shares.

Subsidiary Trigger Apparels Limited

KG Denim (USA) Inc

Other Related Party Sri Kannapiran Mills Limited

Sri Balamurugan Textile Processing Limited KG Fabriks Limited Enterprise Telesys Limited Key Management Personnel Shri KG Baalakrishnan

Shri B Sriramulu Shri B Srihari Shri S Muthuswamy Shri A Velusamy Shri M Balaji

Relative of Key Management Personnel Smt T Anandhi (Daughter of Shri KG Baalakrishnan)

1. Segment Reporting: In accordance with Accounting Standard - 17, Segment information has been given in the Consolidated Financial Statements of the Company and therefore no separate disclosure on segment information in these financial statements.

2. a. Trade payables referred under Current Liability to Small Scale Industrial Units is complied on the information made availableto the Company. (includes dues of Rs.22.11 lakhs of more than 30 days and exceeding Rs.1 lakh to the following parties; Sri Abirami Tubes Rs.5.93 lakhs, Nava Bharath Packaging Rs.1.94 lakhs, Acme Textiles Rs.0.97 lakhs, Asmaco Industries Rs.7.81 lakhs, Harini Packs Rs.4.31 Lakhs and Sri Guhan Packs Rs.1.15 Lakhs.

b. In the absence of necessary information with the company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 the information required under the said Act could not be complied and disclosed.

3 The Company has assessed the recoverable value of its assets and which is higher than the carrying value, hence provision for impairment does not arise for the period.

4 The company has opted for full excise duty exemption on its products. Hence no liability for duty arises and no Cenvat benefit claimed on inputs for such goods.The opening and closing stock consequently does not bear any liability for excise duty for such goods.

5 Previous yearâs figures have been regrouped wherever necessary.

6 a) The Company has the following forward cover outstanding relating to export of its products

7 Figures have been rounded off to the nearest lakhs.

Mar 31, 2015

1. Terms and Conditions of Equity Shares :

The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share.

In the event of liquidation the Equity Shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion of their shareholding.

There are no shares allotted as fully paid without payments being received in cash, bonus shares or shares bought back.

2. Security Clause

Bank borrowings of Term Loan

Term loans from Indian Bank (IB), Bank of India (BOI) and Indian Overseas Bank (IOB) are secured by first pari passu charge on (a) all immovable properties situated in (i) 102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and (ii) 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and (b) all plant and machineries including machineries and other movable fixed assets (excluding vehicles charged to financiers, Peelamedu property & Mumbai property) acquired for the Expansion cum Diversification Scheme (ECDS) and New Capex Plan through Deed of Hypothecation.

3. Term loan II from State Bank of India is secured by a first pari passu charge on all plant and machineries acquired for the Modernisation cum Expansion Scheme (MCES) through Deed of Hypothecation.

4. Power Plant Term Loan from Indian Bank Rs.1480 lakhs, Bank of India Rs.1480 lakhs & The South Indian Bank Limited Rs.1470 lakhs are secured by pari passu first charges on Assets relating to power plant project and pari passu second charges on current assets of the companies.

5.Indian Bank is holding the original title deeds on its own behalf and on behalf of other Banks. Term loans are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

6.The company has availed Two Term loan & One Corporate Loan from Indian Bank and loan outstanding is - Term Loan III Rs.555.08 Lakhs and Term Loan IV Rs.1084.32 lakhs & Corporate Loan Rs.666.64 lakhs (Previous year Rs.770.07 lakhs,Rs.226.73 lakhs & Rs.Nil). Term Loan III is repayable in 60 monthly installments commencing from 01.09.2013. Last installment is due on 01.08.2018. Rate of Interest 13.00% p.a.as at year end. (Previous year 14.00% p.a). Term Loan IV is repayable 72 monthly installments commencing from 03.10.2015. Last installment is due on 03.10.2021.Rate of Interest 12.25% p.a as at year end. (Previous year 12.25% p.a.). Corporate Loan is repayable in 12 equal quarterly installments commencing from 01.06.2015. Last installment is due on 01.03.2018 Rate of interest 12.30% p.a. as at year end.

7. The company has availed Two term loans from Bank of India and loan outstanding is - Term Loan III Rs.738.56 Lakhs & Term Loan IV Rs. 1117.32 (Previous year Rs.908.56 lakhs & Rs.238.28 lakhs). Term Loan III is repayable in 60 monthly installments commencing from 01.07.2014. Last installment is due on 01.06.2019. Rate of Interest 14.00% p.a as at year end.(Previous year 14.50% p.a). Term Loan IV is repayable 96 monthly installments commencing from 25.12.2015. Last installment is due on 25.12.2023. Rate of Interest 12.25% p.a as at year end (Previous Year 12.25% p.a.).

8. The company has availed one term loan from State Bank of India and loan outstanding is - Term Loan II for Rs.609.33 lakhs (Previous year Rs.849.34). Term Loan II is repayable in 60 monthly installments commencing from 01.04.2013. Last Installment is due on 01.03.2018. Rate of Interest 13.60% p.a. as at year end.(Previous year 14.40% p.a).

9. The company has availed two term loan from Indian Overseas Bank and loan outdtanding is- Term loan I Rs.85.50 lakhs & Term Loan II Rs.113.54 lakhs (Previous year Rs.187.54 Lakhs & Rs.256.43 lakhs) Term Loan I is repayable in 20 quarterly installments commencing from 19.06.2012. Last Installment is due on 19.03.2017. Rate of Interest 14.00% p.a. as at year end.(Previous year 14.00% p.a..) and Term loan II is repayable in 60 monthly installments commencing from 28.04.2012. Last Installment is due on 28.03.2017. Rate of Interest 14.25% p.a. as at year end.(Previous year 14.25% p.a.)

10. The company has availed a term loan from The South Indian Bank Ltd and loan outstanding is- Rs. 1119.82 (Previous year Rs.238.30 lakhs). Term Loan is repayable in 84 quarterly installments commencing from 25.12.2015. Last Installment is due on 25.12.2022. Rate of Interest 12.25% p.a. as at year end (Previous year 12.25% p.a.).

11. Term Loan from others :

HDFC Ltd Loan Rs.230 lakhs for Mumabi Office Premises - mortgage of the property - Office space in mumbai.

12. The company has availed a term Loan from HDFC Ltd and loan outstanding is Rs.172.04 lakhs (Previous year Rs.198.55 lakhs). Term Loan is repayable in 84 monthly installments commencing from 20.11.2014. Last Installment is due on 20.11.2021. Rate of Interest 13.50% p.a. as at year end (Previous year 13.50% p.a.).

13. Working capital facilities from Indian Bank Consortium (Indian Bank, Bank of India, Allahabad Bank, State Bank of India and The South Indian Bank Limited) are secured by a first pari passu charge on the whole of the current assets through Deed of Hypothecation and second pari passu charge on (a) all the immovable properties situated in (i) 102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai Villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and (ii) 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and (b) all plant and machineries (excluding vehicles charged to financiers, Peelamedu property & Mumbai property) through Deed of Hypothecation. The entire working capital facilities are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

14. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

2014 - 2015 2013 - 2014

(Rs.in Lakhs)

(i) Contingent Liabilities

a) Claims against the company not acknowledged as debt: Disputed Excise / Customs duties 476.63 981.25 Disputed Income Tax 154.00 154.00

In respect of disputed excise / custom duties and Income tax demands, the company feels that there will be no financial impact, based on legal opinions obtained.

b) Guarantees

Guarantees given to Bank for loan to subsidiary 651.00 651.00 Guarantees given on behalf of Associates for fulfillment of their Export obligation under EPCG Scheme 193.00 300.00

c) Other Money for which the company is contingently liable Bills discounted with banks 4544.93 228.74

(ii) Commitments

Estimated amount of contracts remaining to be executed in capital 257.00 2089.74 account and not provided for

15. The Company has investment of Rs.200 lakhs in the shares of M/s Trigger Apparels Limited (TAL), a wholly owned subsidiary of the company. Further the company has receivables to the extent of Rs.1129 lakhs recoverable from TAL. The networth of TAL has eroded due to trading losses, However, considering the fact that the investment is strategic in nature and steps being taken by the company to improve the performance of TAL, no provision is considered necessary by the management for both diminution in value of shares and receivable.

16. Subsidiary Trigger Apparels Limited

KG Denim (USA) Inc

Other Related Party Sri Kannapiran Mills Limited Sri Balamurugan Textile Processing Limited KG Fabriks Limited Enterprise Telesys Limited

Key Management Personnel Shri KG Baalakrishnan Shri B Sriramulu Shri B Srihari Shri S Muthuswamy Shri A Velusamy Shri M Balaji

Relative of Key Management Smt T Anandhi Personnel (Daughter of Shri KG Baalakrishnan)

17. Segment Reporting: The Company operates as single reportable segment as Textiles. Hence, no separate segment reporting arises.

18. Trade payables referred under Current Liability to Small Scale Industrial Units is complied on the information made available to the Company. (includes dues of Rs.54.26 lakhs of more than 30 days and exceeding Rs.1 lakh to the following parties; Sri Abirami Tubes Rs.18.83 lakhs, Nava Bharath Packaging Rs.6.52 lakhs, Acme Textiles Rs.7.11 lakhs, Asmaco Industries Rs.5.90 lakhs, Harini Packs Rs.9.94 Lakhs and Sri Guhan Packs Rs.5.96 Lakhs. b. In the absence of necessary information with the company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 the information required under the said Act could not be complied and disclosed.

19. The Company has assessed the recoverable value of its assets and which is higher than the carrying value, hence provision for impairment does not arise for the period.

20. The company has opted for full excise duty exemption on its products. Hence no liability for duty arises and no Cenvat benefit claimed on inputs for such goods.The opening and closing stock consequently does not bear any liability for excise duty for such goods.

21. Previous year's figures have been regrouped wherever necessary.

22. Figures have been rounded off to the nearest Lakhs.

Mar 31, 2014

NOTE 1

CONTINGENT LIABILITY

2013 - 2014 2012 - 2013 (Rs.in Lakhs)

a) Bills discounted with banks 4228.74 4047.88

b) Estimated amount of contracts remaining to be executed in capital account and not provided for 2089.74 958.48

c) Disputed Excise / Customs Duties 981.25 631.05

d) Disputed Income Tax 154.00 154.00

e) Guarantees given to Bank for 651.00 651.00 loan to subsidiary

f) Guarantees given on behalf of Associates for fulfillment of their Export obligation under EPCG Scheme 300.00 300.00

NOTE 2

The Company has investment of Rs.200 lakhs in the shares of M/s Trigger Apparels Limited (TAL), a wholly owned subsidiary of the company. Further the company has receivables to the extent of Rs.1459 lakhs recoverable from TAL. The networth of TAL has eroded due to trading losses, However, considering the fact that the investment is strategic in nature and steps being taken by the company to improve the performance of TAL, no provision is considered necessary by the management for both diminution in value of shares and receivable.

3 Segment Reporting: The Company operates as single reportable segment as Textiles. Hence, no separate segment reporting arises.

4 Pursuant to the Accounting Standard (AS-29) - Provisions, Contingent Liabilities and Contingent Assets, the disclosure relating to provisions made in the accounts for the year ended 31st March 2014 is as follows:

5 a. Trade payables referred under Current Liability to Small Scale Industrial Units is complied on the information made available to the Company. (includes dues of Rs.96.08 lakhs of more than 30 days and exceeding Rs.1 lakh to the following parties; Sri Abirami Tubes Rs.22.11 lakhs, Nava Bharath Packaging Rs.9.73 lakhs, Acme Textiles Rs.7.23 lakhs, Asmaco Inds Rs.28.00 lakhs, Shree Traders Rs.1.53 lakhs, Coimbatore Sewing Machine Rs.1.51 Lakhs, Harini Packs Rs.4.59 Lakhs, Sri Guhan Packs Rs.19.35 Lakhs and Thirumalai & Co.Rs.2.03 lakhs).

b. In the absence of necessary information with the company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 the information required under the said Act could not be complied and disclosed.

6 The Company has assessed the recoverable value of its assets and which is higher than the carrying value, hence provision for impairment does not arise for the period.

7 The company has opted for full excise duty exemption on its products. Hence no liability for duty arises and no Cenvat benefit claimed on inputs for such goods. The opening and closing stock consequently does not bear any liability for excise duty for such goods.

8 Previous year''s figures have been regrouped wherever necessary.

9 Figures have been rounded off to the nearest Lakhs.

Mar 31, 2013

NOTE 1

CONTINGENT LIABILITY

2012 Â 2013 2011 Â 2012 (Rs.in Lakhs)

a) Bills discounted with banks 4047.88 3315.97

b) Estimated amount of contracts remaining to be executed in capital account and not provided for 958.48 735.52

c ) Disputed Excise / Customs Duties 631.05 641.82

d) Disputed Income Tax 154.00 154.00

e) Guarantees given to Bank for loan to subsidiary 651.00 651.00

f) Guarantees given on behalf of Associates for fulfillment of their Export obligation under EPCG Scheme 300.00 300.00

NOTE 2

The Company has investment of Rs.200 lakhs in the shares of M/s Trigger Apparels Limited (TAL), a wholly owned subsidiary of the company. Further the company has receivables to the extent of Rs.1398 lakhs recoverable from TAL. The networth of TAL has eroded due to trading losses, However, considering the fact that the investment is strategic in nature and steps being taken by the company to improve the performance of TAL, no provision is considered necessary by the management for both diminution in value of shares and receivable.

3 Segment Reporting: The Company operates as single reportable segment as Textiles. Hence, no separate segment reporting arises.

4 a. Trade payables referred under Current Liability to Small Scale Industrial Units is complied on the information made available to the Company. (includes dues of Rs.40.39 lakhs of more than 30 days and exceeding Rs.1 lakh to the following parties; Sri Abirami Tubes Rs.13.90 lakhs, Nava Bharath Packaging Rs.5.76 lakhs, Acme Textiles Rs.4.59 lakhs, Asmaco Inds Rs.13.80 lakhs, Royal Packaging Rs.2.34 lakhs & Sapphire Packaging Rs.0.40 lakhs).

b. In the absence of necessary information with the company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 the information required under the said Act could not be complied and disclosed.

5 The Company has assessed the recoverable value of its assets and which is higher than the carrying value, hence provision for impairment does not arise for the period.

6 The company has opted for full excise duty exemption on its products except garments. Hence no liability for duty arises and no Cenvat benefit claimed on inputs for such goods.The opening and closing stock consequently does not bear any liability for excise duty for such goods. Excise Duty has been paid on local sale of garments bearing excise duty liability is there as on Balance Sheet date.

7 Previous yearÂs figures have been regrouped wherever necessary.

8 Figures have been rounded off to the nearest Lakhs.

Mar 31, 2012

Terms and Conditions of Equity Shares :

The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share.

In the event of liquidation the Equity Shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion of their shareholding.

There are no shares allotted as fully paid without payments being received in cash, bonus shares or shares bought back.

Dividend proposed to be distributed to Equity Shareholders is Rs.0.75 (Previous Year - Nil) per Equity Share.

* Arrears of Preference Dividend (10%) for the period from 01.04.2005 to 31.03.2007 to be distributed to ertswhile Preference Shareholders on value of Rs.10 Crores.

Bank borrowings of Term Loan and Working Capital Limits

Term loans from Indian Bank (IB), Bank of India (BOI) and Indian Overseas Bank (IOB) are secured by first pari passu charge on (a) all immovable properties situated in (i) 102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and (ii) 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and (b) all plant and machineries including machineries and other movable fixed assets (excluding vehicles charged to financiers) acquired for the Expansion cum Diversification Scheme (ECDS) and New Capex Plan through Deed of Hypothecation.

Term loan from State Bank of Hyderabad and Term loan I from State Bank of India are secured by a first pari passu charge on (a) immovable properties in 48.5872 acres of land at Jadayampalayam, Alangombu and Karamadai Village in Mettupalayam Taluk, Coimbatore District, Tamilnadu and (b) all plant and machineries and other movable assets (excluding vehicles charged to financiers) acquired for the Expansion cum Diversification Scheme (ECDS) through Deed of Hypothecation.

Term loan II from State Bank of India is secured by a first pari passu charge on all plant and machineries acquired for the Modernizations cum Expansion Scheme (MCES) through Deed of Hypothecation.

Indian Bank is holding the original title deeds on its own behalf and on behalf of other Banks. Term loans are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

Indian Bank has two Term loans outstanding - Term loan I for Rs.751.22 lakhs & Term loan II for Rs.224.27 lakhs (Previous year Rs.1032.89 lakhs & Rs.299.71 lakhs). Term loan I is repayable in 32 quarterly installments commencing from 05.04.2007. Last Installment is due on 05.01.2015. Rate of Interest 14.00 % p.a. as at year end. (Previous year 12.25 % p.a.). Term Loan II is repayable in 90 monthly installments commencing from 15.10.2007. Last Installment is due on 15.03.2015. Rate of Interest 14.75 % p.a. as at year end. (Previous year 13.25 % p.a.).

Bank of India has two Term loans outstanding : Term loan I for Rs.685.45 lakhs & Term loan II for Rs. 195.72 lakhs (Previous year Rs.957.10 lakhs Et Rs.281.81 lakhs). Term loan I is repayable in 32 quarterly installments commencing from 07.04.2007. Last Installment is due on 07.01.2015. Rate of Interest 14.75% p.a. as at year end. (Previous year 13.25% p.a.). Term loan II is repayable in 87 monthly installments commencing from 15.10.2007. Last Installment is due on 15.12.2014. Rate of Interest 14.75% p.a. as at year end. (Previous year 13.75% p.a.).

State Bank of India has two Term loans outstanding: Term loan I for Rs.539.79 lakhs & Term loan II for Rs.524.63 lakhs (Previous year Rs.793.24 lakhs & Nil). Term loan I is repayable in 31 quarterly installments commencing from 08.09.2007. Last Installment is due on 08.03.2015. Rate of Interest 14.5% p.a. as at year end.(Previous year 12.25% p.a.).Term loan II is repayable in 60 monthly installments commencing from 01.04.2013. Last Installment is due on 01.03.2018. Rate of Interest 14.5% p.a. as at year end. (Previous year Nil).

State Bank of Hyderabad has One Term loan for Rs.539.59 lakhs (Previous year Rs.785.38 lakhs). Term loan is repayable in 29 quarterly installments commencing from 21.09.2007. Last Installment is due on 21.03.2015. Rate of Interest 15.5% p.a. as at year end.(Previous year 12.5% p.a.).

Indian Overseas Bank has two Term loans: Term loan I for Rs.400 lakhs (Previous year is Nil) is repayable in 20 quarterly installments commencing from 19.06.2012. Last Installment is due on 19.03.2017. Rate of Interest 14.75% p.a. as at year end.(Previous year Nil.) and Term loan II for Rs.559.60 lakhs (Previous year is Nil) is repayable in 60 monthly installments commencing from 28.04.2012. Last Installment is due on 28.03.2017. Rate of Interest 14.75% p.a. as at year end.(Previous year Nil).

Working capital facilities from Indian Bank Consortium (Indian Bank, Bank of India, Allahabad Bank and State Bank of India) are secured by a first pari passu charge on the whole of the current assets through Deed of Hypothecation and second pari passu charge on (a) all the immovable properties situated in (i) 102.1897 acres of land at Jadayampalayam, Alankombu and Karamadai Villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and (ii) 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and (b) all plant and machineries (excluding vehicles charged to financiers) through Deed of Hypothecation. The entire working capital facilities are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

Note : Building includes Prayer Hall and Gold Plating thereon of Rs. 132.69 lakhs in Gross Block, Rs. 11.90 lakhs in Depreciation Block and Rs. 120.79 lakhs in Net Block (Previous Year Rs.71.97 lakhs in Gross Block, Rs.10.17 lakhs in Depreciation Block and Rs.61.80 lakhs in Net Block) Furniture ÃÂ£t Fittings includes Prayer Hall of Rs.13.89 lakhs in Gross Block, Rs.3.63 lakhs in Depreciation Block and Rs.10.26 lakhs in Net Block (Previous Year Rs.13.89 lakhs in Gross Block, Rs.2.75 lakhs in Depreciation Block and Rs. 11.14 lakhs in Net Block)

NOTE 1

The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

NOTE 2

CONTINGENT LIABILITY

2011 - 2012 2010 2011 (Rs.in Lakhs)

a) Bills discounted with banks 3315.97 2453.59

b) Arrears of dividend on 10% Cumulative Redeemable Preference - 200.00 Shares ( for the period 1st April 2005 to 31st March 2007)

c) Estimated amount of contracts remaining to be executed in capital account and not provided for 735.52 340.43

d) Disputed Excise Duties 641.82 631.05

e) Disputed Income Tax 154.00 154.00

f) Disputed Sales Tax - 10.18

g) Guarantees given to Bank for loan to subsidiary 651.00 601.46

h) Guarantees given on behalf of Associates for fulfillment of their Export obligation under EPCG Scheme 300.00 300.00

NOTE 3

The Company has investment of Rs.200 lakhs in the shares of M/s Trigger Apparels Limited (TAL), a wholly owned subsidiary of the company. Further the company has receivables to the extent of Rs.728.55 lakhs recoverable from TAL. The net worth of TAL has eroded due to trading losses, However, considering the fact that the investment is strategic in nature and steps being taken by the company to improve the performance of TAL, no provision is considered necessary by the management for both diminution in value of shares and receivable.

3 a. Trade payables referred under Current Liability to Small Scale Industrial Units is complied on the information made available to the Company, (includes dues of Rs.67 lakhs of more than 30 days and exceeding Rs.1 lakh to the following parties; Sri Abirami Tubes Rs.10 lakhs, Nava Bharath Packaging Rs.4 lakhs, Acme Textiles Rs.13 lakhs, Asmaco Inds Rs.20 lakhs, Royal Packaging Rs.18 lakhs & Sapphire Packaging Rs.2 lakhs).

b. In the absence of necessary information with the company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 the information required under the said Act could not be complied and disclosed.

4 The Company has assessed the recoverable value of its assets and which is higher than the carrying value, hence provision for impairment does not arise for the period.

5 The company has opted for full excise duty exemption on its products except garments. Hence no liability for duty arises and no Cenvat benefit claimed on inputs for such goods. The opening and closing stock consequently does not bear any liability for excise duty for such goods. Excise Duty has been paid on local sale of garments bearing excise duty. No liability is there as on Balance Sheet date.

6 Previous year's figures have been regrouped wherever necessary.

7 Figures have been rounded off to the nearest Lakhs.

Mar 31, 2011

1.1 CONTINGENT LIABILITY 2010 Ã 2011 2009 Ã 2010 (Rs 000's) (Rs 000's)

a) Bills discounted with banks 245359 209609

b) Arrears of dividend on 10% Cumulative Redeemable Preference 20000 20000 Shares ( for the period 1st April 2005 to 31st March 2007)

c) Estimated amount of contracts remaining to be executed on capital account and not provided for 34043 -

d) Disputed Excise Duties 63105 38113

e) Disputed Income Tax 15400 -

f) Disputed Sales Tax (Paid Rs.4.45 Lakhs) 1018 -

g) Guarantees given to Bank for loan to subsidiary 60146 60246

h) Guarantees given on behalf of Associates for fulfillment of their Export obligation under EPCG Scheme 30000 30000

1.2 (i) BANK BORROWINGS

a) Term loans from Indian Bank, Bank of India and Indian Overseas Bank are secured by a first pari passu charge on all plant and machineries, including machineries and other movable fixed assets (excluding vehicles charged to financiers) acquired for the Expansion cum Diversification Scheme (ECDS) and New Capex Plan through Deed of Hypothecation and a pari passu first charge on all immovable properties situated in (a) 102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and (b) 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank. Term loan from Indian Bank is further secured by a second pari passu charge on the current assets.

Term loan from State Bank of Hyderabad and State Bank of India are secured by a first pari passu charge on all plant and machineries and other movable assets (excluding vehicles charged to financiers) acquired for the Expansion cum Diversification Scheme (ECDS) through Deed of Hypothecation and a pari passu first charge on immovable properties in 48.5872 acres of land at Jadayampalayam, Alangombu and Karamadai Villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu.

Indian Bank is holding the original title deeds on its own behalf and on behalf of other Banks. Term loans are also guaranteed by Shri KG Baalakrishnan.

b) Working capital facilities from Indian Bank Consortium (Indian Bank, Bank of India, Allahabad Bank and State Bank of India) are secured by a first pari passu charge on the whole of current assets and second pari passu charge on all the immovable properties and plant and machineries (excluding vehicles charged to financiers). Additional Packing Credit facility from Allahabad Bank is secured by exclusive charge on raw materials purchased out of the facility. The entire working capital facilities are also guaranteed by Shri KG Baalakrishnan.

1.3 The Company has investment of Rs.200 Lakhs in the shares of M/s Trigger Apparels Limited (TAL), a wholly owned subsidiary of the company. Further the company has receivables to the extent of Rs.663 Lakhs recoverable from TAL. The networth of TAL has eroded due to trading losses, However,considering the fact that the investment is strategic in nature and steps being taken by the company to improve the performance of TAL, no provision is considered necessary by the management for both diminution in value of shares and receivable.

1.4 In accordance with the revised Accounting Standard AS - 15, details of actuarial provision are given below which is certified by the actuary and relied upon by the auditors though the company has provided the liability in accounts, to meets its liability from internal generation.

1.5 The manufacture and sale of fabrics and apparels in which the company is mainly engaged, considering the nature of business, is only a single reportable segment as Textiles. Hence the Board has decided to report the same as single segment from 2010-2011 onwards.

1.6 NOTE :

Subsidiary Trigger Apparels Limited KG Denim (USA) Inc

Associates Sri Kannapiran Mills Limited

Sri Balamurugan Textile Processing Limited

KG Fabriks Limited

Enterprise Telesys Limited

Key Management Personnel Shri KG Baalakrishnan

Shri B Sriramulu

Shri B Srihari

Shri S Muthuswamy

Shri A Velusamy

Relative of Key Management Personnel Smt T Anandhi (Daughter of Shri KG Baalakrishnan)

1.7 Prior Year Income / Expense (net) in Profit and Loss account consist of expenses of prior year Rs.19.56 Lakhs. (Previous Year Rs.2.60 Lakhs) and income of prior year amounting to Rs.0.02 Lakhs (Previous Year Rs.0.14 Lakhs).

1.8 a. Outstanding as referred to in Schedule 11 under Current Liability to Small Scale Industrial units is complied on the information made available to the Company. (Includes dues of Rs.43.30 Lakhs of more than 30 days and exceeding Rs.1.00 Lakhs to the following parties: Amaravathi Packs 5.64 Lakhs, Sri Abirami Tubes & Cones Rs. 6.25 lakhs,Nava Bharathi Packing Rs.2.84 lakhs, Acme Textiles Rs.16.32 Lakhs, Asmaco Industries Limited Rs.21.89Lakhs, Theiva Packs Rs.10.18 Lakhs, Super Poly Packs Rs.4.51 Lakhs & Expo Graphics Rs.1.73 Lakhs).

b. In the absence of necessary information with the Company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 the information required under the said Act could not be complied and disclosed.

1.9 The Company has assessed the recoverable value of its assets and which is higher than the carrying value, hence provision for impairment does not arise for the period.

1.10 The Company has opted for full excise duty exemption on its products. Hence no liability for duty arises and no Cenvat benefit claimed on inputs. The opening and closing stock consequently does not bear any liability for excise duty.

1.11 Previous year's figures have been regrouped wherever necessary.

1.12 Figures have been rounded off to the nearest thousands.

Mar 31, 2010

1.1 CONTINGENT LIABILITY

2009 Ã 2010 2008 Ã 2009 (Rs 000s) (Rs 000s)

a) Bills discounted with banks 20 96 09 18 56 85

b) Arrears of dividend on 10% Cumulative Redeemable Preference 2 00 00 2 00 00 Shares ( for the period 1st April 2005 to 31st March 2007)

c) Disputed Excise Duties 3 81 13 3 55 96

d) Disputed Income Tax - 1 35 31

e) Guarantees given to Bank for loan to subsidiary 6 02 46 5 60 29

f) Guarantees given on behalf of Associates for fulfillment of their Export obligation under EPCG Scheme 3 00 00 3 00 00

1.2 (i) BANK BORROWINGS

a) Term Loans from Indian Bank, Bank of India and Indian Overseas Bank are secured by a first pari passu charge on all plant and machineries, including machineries and other movable fixed assets (excluding vehicles charged to financiers) acquired for the Expansion cum Diversification Scheme (ECDS) and New Capex Plan through Deed of Hypothecation and a pari passu first charge on all immovable properties situated in 102.1897 acres of land at Jadayampalayam, Alangombu, Karamadai Villages in Mettupalayam Taluk, Coimbatore District, Tamilnadu and 2155.62 sq.mtrs of land at Amdha Village, Dharampur Taluk, Valsad District,Gujarat through equitable mortgage created with Indian Bank. Term Loan from Indian Bank is further secured by a second pari passu charge on the current assets.

Term loan from State Bank of Hyderabad and State Bank of Indore are secured by a first pari passu charge on all plant and machineries and other movable assets (excluding vehicles charged to financiers) acquired for the Expansion cum Diversification Scheme (ECDS) through Deed of Hypothecation and a pari passu first charge on immovable properties in 48.5872 acres of land at Jadayampalayam, Alangombu and Karamadai villages in Mettupalayam Taluk, Coimbatore District, Tamilnadu.

Indian Bank is holding the original title deeds on its own behalf and on behalf of other Banks. Term loans are also guaranteed by Shri KG Baalakrishnan.

b) Working capital facilities from Indian Bank Consortium (Indian Bank, Bank of India, Allahabad Bank and State Bank of India) are secured by a first pari passu charge on the whole of current assets and second pari passu charge on all the immovable properties and plant and machineries (excluding vehicles charged to financiers).These are also guaranteed by Shri KG Baalakrishnan.

1.3 The Company has investment of Rs.200 Lakhs in the shares of M/s Trigger Apparels Limited (TAL), a wholly owned subsidiary of the company. Further the company has receivables to the extent of Rs.1172.87 Lakhs recoverable from TAL. The networth of TAL has eroded due to trading losses, However,considering the fact that the investment is strategic in nature and steps being taken by the company to improve the performance of TAL, no provision is considered necessary by the management for both diminution in value of shares and receivable.

1.4 NOTE : Subsidiary

Trigger Apparels Limited KG Denim (USA) Inc

Associates

Sri Kannapiran Mills Limited

Sri Balamurugan Textile Processing Limited

KG Fabriks Limited

Enterprise Telesys Limited

Key Management Personnel

Shri KG Baalakrishnan Shri B Sriramulu Shri B Srihari Shri S Muthuswamy Shri A Velusamy

Relative of Key Management Personnel Smt T Anandhi (Daughter of Shri KG Baalakrishnan)

1.5 Prior Year Income / Expense (net) in Profit and Loss account consist of expenses of prior year Rs.2.60 Lakhs. (Previous Year Rs.21.58 Lakhs) and income of prior year amounting to Rs.0.14 Lakhs (Previous Year Rs.1.58 Lakhs).

1.6 a. Outstanding as referred to in Schedule 11 under Current Liability to Small Scale Industrial units is complied on the information made available to the Company. (Includes dues of Rs.49.34 Lakhs of more than 30 days and exceeding Rs.1.00 Lakhs to the following parties: Amaravathi Packs 8.66 Lakhs, Sri Abirami Tubes & Cones Rs.6.35 lakhs,Nava Bharathi Packing Rs. 0.42 lakhs, Acme Textiles Rs. 10.07 Lakhs, Asmaco Industries Limited Rs. 16.36 Lakhs, Theiva Packs Rs. 2.19 Lakhs, Super Poly Packs Rs. 2.05 Lakhs & Expo Graphics Rs. 2.61 Lakhs).

b. In the absence of necessary information with the company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 the information required under the said Act could not be complied and disclosed.

1.7 The Company has assessed the recoverable value of its assets and which is higher than the carrying value, hence provision for impairment does not arise for the period.

1.8 Since 11.07.04 the company has opted for full excise duty exemption. Hence no liability for duty arises and no Cenvat benefit claimed on inputs. The opening and closing stock consequently does not bear any liability for excise duty.

1.9 Previous years figures have been regrouped wherever necessary.

1.10 Figures have been rounded off to the nearest thousands.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article