Notes to Accounts of Kakatiya Textiles Ltd.

Mar 31, 2024

N. Provisions, Contingent Liabilities and Contingent assets

Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that the Company will be required to
settle such obligation and a reliable estimate can be made of the amount of such obligation.

The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, taking into account the risks
and uncertainties surrounding the obligation. When a provision is measured using the
cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows (where the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to
be recovered from a third party, a receivable is recognised as an asset if it is virtually
certain that reimbursement will be recovered and the amount of the receivable can be
measured reliably.

A disclosure for a contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not require an outflow of resources embodying
economic benefits or the amount of such obligation cannot be measured reliably. When
there is a possible obligation or a present obligation in respect of which likelihood of outflow
of resources embodying economic benefits is remote, no provision or disclosure is made

O. Earnings per share

Basic earnings per share is computed by dividing profit or loss attributable to equity
shareholders by the weighted average number of equity shares outstanding during the

year. Diluted earnings per share is determined by adjusting the profit or loss attributable to
equity shareholders and the weighted average number of equity shares outstanding for
the effects of all dilutive potential equity shares.

P. Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents
include cash on hand, deposits held at call with financial institutions/banks, other short¬
term, highly liquid investments with original maturities of three months or less that are
readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in
current liabilities in the balance sheet..

Q. Borrowings

Borrowing cost incurred in connection with the funds borrowed for acquisition/erection of
assets that necessarily take substantial period of time to get ready for intended use, are
capitalized as part of such assets. Interest income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying assets is deducted from the
borrowing cost eligible for capitalization. Borrowing cost also includes exchange differences
to the extent regarded as an adjustment to the borrowing costs. All other borrowing costs
are charged to revenue.

R. Inventories

Inventories are stated at the lower of cost and net realizable value. Net realizable value
represents the estimated selling price for inventories less all estimated costs of completion
and cost necessary to make the sale.

i) Cost of raw materials, components, stores, spares are valued at cost, determined on
a first-in-first-out basis.

ii) Materials and supplies held for use in production of inventories are not written down if
the finished products in which they will be used are expected to be sold at or above
cost. Slow and non-moving material, obsolesces, defective inventories are duly provided
for.

iii) By-products and scrap are valued at net realizable value and it is reduced from cost of
the main product.

iv) Excess/ shortages, if any, arising on physical verification are absorbed in the respective
consumption accounts.

v) The net realisable value of work-in-progress is determined with reference to the selling
prices of related finished products.

S. Cash flow statement:

Cash flows are reported using the indirect method, whereby the profit for the period is
adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of
past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing
and financing activities of the company are segregated.

30. Capital Management

Equity share capital and other equity are considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to
optimise returns to shareholders. The capital structure of the Company is based on management''s
judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor,
creditors and market confidence.

The management and the Board of Directors monitor the return on capital as well as the level of dividend
to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust,
its capital structure

Refer note 40 for information on ratios.

ii) Defined Benefit Plans

c) Gratuity

The company has unfunded defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at 15 days salary
(last drawn salary) for each completed year of service as per the provision of the Payment
of Gratuity Act, 1972, as amended.

34. Impairment of Assets

According to an internal technical assessment carried out by the Company, there is no impairment in
the carrying cost of cash generating units of the Company in terms of Indian Accounting Standard 36
''Impairment of Assets

35. Exceptional items of Rs. 20.36 Lakhs for the year ended 31.03.2024 and Rs. 71.39.00 Lakhs for
the year ended 31.03.2023 are on account of profit on sale of old machinery

36. Revenue from operations includes other operating income of Rs.97.00 Lakhs on account of
withdrawal of interest provision made during quarter ended 30.09.2022 & 31.12.2022

Note:

1) Due to no manufacturing activity during the year except job work the working capital cycle of
the company reduced and hence thereby inventory, trade receivable and trade payable
ratios have been improved.

2) Due to job work income of low margin & higher fixed costs profitability of the company
decreased.

3) Due to no interest on loans & repayment during the year the Debt service coverage ratio is
not arrived

4) Due to negative earnings with negative equity the return on equity ratio is misleading and
hence not applicable or Zero

5) Due to no investments made by the company the return on investment ratio is not applicable.
Additional regulatory information required by Schedule III

41. No proceeding has been initiated or pending against the Company for holding any Benami
property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules
made thereunder.

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

43. The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.

44. There were no transactions relating to previously unrecorded income that have been
surrendered and disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961.

45. Relationship With Struck Off Companies

The Company does not have any relationship or any transaction with struck off companies.

46. Utilisation of borrowed funds and share premium:

The Company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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:

a. directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

47. Since the company deals only in Manufacturing of Cotton yarn products and there are no
geographical segments to be reported.

48. The previous year figures have been re-grouped / re-classified wherever required to conform
to current year''s classification.

49. The financial statements are approved for issue by the Audit Committee and Board of
Directors at their meetings held on May 29, 2024.

^{As per our rep}°rt ^{of even date} For and on behalf of Board

^For Chevuturi Associates Kakatiya Textiles Limited

Chartered Accountants

Regn.No.000632S

Sd/- Sd/-

^Sd/- Vanka Raja Kumari Vanka Ravindranath

(CA Ranjita Vemuri) Director Director

Partner DIN .00480392 DIN 00480295

ICAI M.No.228471
UDIN:24228471BKFWPH7317

Sd/- Sd/-

Place: Tanuku V.HARI OBULA REDDY Peeyush Sethia

^Date : ^{29th May} 2024 Chief Financial Officer Company Secretary

---

Mar 31, 2015

1. Corporate Information

Kakatiya Textiles Limited is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The company is engaged in the manufacture and sale of cotton yarn.

2.1 The Company declares and pays dividends in Indian rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of the liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. Since the company has not declared dividends on the preference shares, the preference shareholders will have voting right equivalent to their holding. The distribution will be in proportion to the number of equity shares held by the shareholders.

3.1 Details of employee benefits as required by the Accounting Standard 15(Revised) are as under: a) Description of the company's defined plan: The company operates a defined plan for payment of post employment benefits in the form of gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service, as provided in the Payment of Gratuity Act, 1972.

The terms of benefit are common for all the employees of the company.

The liability of the company as of 31st March 2014 is Rs, 45.41 lakhs out of which it has been funded to the extent of Rs, 7.80 lakhs.

The expenses has been included under the head "Contribution to Gratuity Fund" under the "Employees Benefit Expenses" in the statement of profit and loss.

e) Investment Details: LIC Group Gratuity(Cash Accumulation) Policy - 100% invested in Debt instruments.

The estimated rates of escalation of salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

4.1 Related Party Disclosure(as certified by the Management)

(I) Names of Related parties and description of Relationship

a) Key Management Personnel

Sumanth Ramamurthi, Managing Director

b) Other related parties

Super Spinning Mills Ltd Super Sara Textiles Ltd

Super Farm Products Ltd Precot Meridian Ltd

Elgi Electric and Industries Ltd Sara Elgi Envirotech LLP

Elgi Building Products Ltd Sara Elgi Arteriors Ltd

Elgi Ultra Industries Ltd Sara Elgi Industries Ltd

4.2 The company operates in one primary segment. Viz Textiles.

4.3 Previous year's figures have been regrouped and reclassified, wherever necessary, to correspond with the current year's classification / disclosure.

---

Mar 31, 2013

1 Corporate Information

Kakatiya Textiles Limited is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The company is engaged in the manufacturing and selling of cotton yarn.

2 Basis of preparation of financial statements

The financial statements are prepared in accordance with Generally Accepted Accounting Principles(GAAP) under the historical cost convention on the accrual basis except for certain financial instruments, which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India(SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

3.1 The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of the liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. Since the company has not declared dividends on the preference shares, the preference shareholders will have voting right equivalent to their holding. The distribution will be in proportion to the number of equity shares held by the shareholders.

4.1 Details of employee benefits as required by the Accounting Standard 15 (Revised) are as under:

a) Description of the company''s defined plan: The company operates a defined plan for payment of post employment benefits in the form of gratuity.

Benefits under the plan are based on pay and years of service and are vested on completion of five years of service, as provided in the Payment of Gratuity Act, 1972. The terms of benefit are common for all the employees of the company.

The estimated of rates of escalation of salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment Market.

4.2 The company operates in one primary segment. Viz Textiles.

4.3 Previous year''s figures have been regrouped and reclassified, wherever necessary, to correspond with the current year''s classification / disclosure.

---

Mar 31, 2012

Not Available

---

Mar 31, 2011

1. The term loan from Axis Bank limited with an outstanding balance of Rs.2.05 Crores is secured by a first charge on the present and future fixed assets of the company and second charge on the present and future current assets of the company. The loan is guaranteed by one of the directors of the company.

2. the opinion of the Board, the Current Assets, Loans & Advances and other Receivables have at least the value as stated in the Balance Sheet, if realized in the ordinary course of business.

3. The company has obtained information from suppliers who are covered under the "Micro, Small and Medium Enterprises Development Act, 2006". Based on the information and evidence available with the company, there are no dues to micro, small and medium enterprises, outstanding as on 31.03.2011.

4. Earnings in foreign exchange 31.03.2011 31.3.2010

- Export of goods (FOB Value) Nil Nil

5. Expenditure in Foreign Currencies

- Import of Components & Spares Nil Nil

6. Previous year figures have been regrouped / rearranged wherever necessary in line with the presentation of current year figures.

---

Mar 31, 2010

1. The company has provided depreciation on fixed assets for the period 1-4-2001 to 31-3-2006 amounting to Rs.256.72Lakhs during the year.

2. The term loan from AXIS Bank with an outstanding balance of Rs.4.10 Crores is secured by a first charge on the present and future fixed assets of the company and second charge on the present and future current assets of the company. The loan is guaranteed by one of the directors of the company.

3. Depreciation claimed for income tax purposes is less than depreciation for the current year as per books. The company has brought forward losses and unabsorbed depreciation under income tax.

4. Deferred tax revenue is recognized for the first time in the current financial year. The company has adopted the Balance Sheet method to workout the deferred tax assets. The assets and liabilities considered for deferred working are as follows^

5. In the opinion of the Board, the Current Assets, Loans & Advances and other Receivables have at least the value as stated in the Balance Sheet, if realized in the ordinary course of business.

6. The company has initiated the process of obtaining information from suppliers who are covered under the "Micro, Small and Medium Enterprises Development Act, 2006". Based on the information and evidence available with the company, there are no dues to Micro, Small and Medium Enterprises, outstanding as on 31.03.2010.

7. Related party disclosure as required by Accounting Standard 18 1. Names of related parties and description of relationship

a) Key Managerial Personnel : Shri.Sumanth Ramamurthi No remuneration is paid to Shri. Sumanth Ramamurthi

b) Other related parties Companies in which the Managing Director is interested as Managing Director / Director.

1.Super Spinning Mills Ltd 8. Elgi Building Products Ltd

2.Elgi Electric & Industries Ltd 9. Sara Elgi Industrial Research & Development Ltd

3.Elgi Ultra Industries Ltd lO.Super Sara Textiles Ltd

4.Precot Meridian Ltd 11.Super Sara Trading & Industrial Services Ltd 5.Sara Elgi Insurance Advisory Services Pvt Ltd 12.Sara Elgi Envirotech Ltd

6.Elgi Software & Technologies Ltd 13.Sara Elgi Arteriors Ltd

7. Super Farm Products Ltd

8. Employee benefits :

a. Gratuity benefits are managed through the Group Gratuity scheme of Life Insurance Corporation of India. The provision for gratuity liability is actuarially determined at the year-end and the liability arising on such valuation is charged to the Profit and Loss Account accordingly.

b. Provident Fund Contribution is as per the rates prescribed by the Employees Provident Funds Act, 1952 and the same is charged to revenue.

c. i) Description of the companys defined benefit plan : The Company operates a defined benefit plan for payment of post employment benefits in the form of Gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of benefits are common for all the employees of the company.

ii) Reconciliation in respect of the changes in the present value of the Obligation: Rs. in lakhs