Notes to Accounts of Kanchi Karpooram Ltd.

Mar 31, 2025

2.17 Provisions, Contingent Liabilities and Contingent Assets

a) Provision

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.

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 pre-tax 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 recognized as interest
expenses.

b) 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 recognized because

• It is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or

• The amount of the obligation cannot be measured with sufficient reliability.

c) Contingent Asset

Contingent assets are not recognized but are disclosed only where an inflow of economic benefits is
probable.

2.18 Current and Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.
Cash or cash equivalent is treated as current, unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period. In respect of other assets, it is treated as current when it
is:

• Expected to be realized or intended to be sold or consumed in the normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

• It is expected to be settled in the normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non¬
current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing
and their realization in cash and cash equivalents. The Company has identified twelve months as its operating
cycle.

2.19 Financial instruments

(a) Recognition:

Financial assets and financial liabilities are recognized when a company entity becomes a party to the
contractual provisions of the instruments.

(b) Classification of financials instruments

The Company classifies its financial assets in the following categories:

• Those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss), and

• Those measured at amortized cost.

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

(c) Measurement

(i) Initial Recognition:

At Initial recognition, the Company measures a financial asset at its fair value plus transaction cost (in
the case of a financial asset not a fair value through profit or loss) that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit
or loss are expensed in statement of profit or loss.

(ii) Subsequent measurement:

• Debt Instruments

Subsequent measurement of debt instruments depends on the company''s business model for
managing the asset and the cash flow characteristics of the asset. There are two measurement
categories into which the Company classifies its debt instruments.

- Amortized Cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost. A gain or loss on debt investment
that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized
in profit or loss when the asset is de-recognized or impaired. Interest income from these financial
assets is included in finance income using the effective interest rate method.

- Fair Value through profit and loss statement

Assets that do not meet the criteria for amortized cost or Fair Value through Other Comprehensive
Income (FVOCI) are measured at Fair Value Through Profit or Loss (FVTPL). A gain or loss on a debt
investment that is subsequently measured at FVTPL and is not part of a hedging relationship is
recognized in profit or loss and presented in the statement of profit and loss within other gains/
(losses) in the period in which it arises. Interest income from these financial assets is included in other
income.

• Equity Instruments

The Company subsequently measures all investments in equity (except of the subsidiaries/associate) at
fair value. Where the company''s management has elected to present fair value gains and losses on equity
investments in other comprehensive income, there is no subsequent reclassification of fair value gains
and losses to profit or loss. Dividends from such investments are recognized in profit or loss as other
income when the Company''s right to receive payments is established.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not
reported separately.

Where the Company elects to measure fair value through profit and loss, changes in the fair value of such
financial assets are recognized in the statement of profit and loss.

(d) Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through the
expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on
initial recognition.

Expense is recognized on an effective interest basis for debt instruments other than those financial liabilities
classified as at FVTPL. Interest expense is recognized in profit or loss and is included in the ''finance cost'' line
item.

(e) Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial assets
measured at amortized cost, lease receivables, trade receivables, and other contractual rights to receive
cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring
as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls),
discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or
originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual
terms of the financial instrument through the expected life of that financial instrument.

For trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit
losses.

(f) De-recognition of financial assets and financial liabilities

The Company de-recognizes a financial asset when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Company recognizes its retained interest in
the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all
the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the
financial asset and also recognizes a collateralized borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount
and the sum of the consideration received and receivable and the cumulative gain or loss that had been
recognized in other comprehensive income and accumulated in equity is recognized in profit or loss if such
gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset.

The Company de-recognizes financial liabilities when, and only when, the Company''s obligations are
discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially
different terms is accounted for as an extinguishment of the original financial liability and the recognition
of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability
(whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment
of the original financial liability and the recognition of a new financial liability. The difference between the
carrying amount of the financial liability derecognized and the consideration paid and payable is recognized
in profit or loss.

2.20 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and financing activities of the Company are
segregated based on the available information.

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, 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/cash credits. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.

2.21 Key sources of estimation uncertainty

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.

Key assumption concerning the future, and other key sources of estimation uncertainty at the end of the
reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year is as given below.

a) Estimation of long term and post employment benefits

The Company engages the services of an actuary to compute the present value of its defined benefit
obligations in respect of compensated absences and gratuity payable to its employees. The estimation
involves use of assumptions and inputs such as life expectancy, attrition rate, salary increment rate etc.

b) Useful life of Property, Plant & Equipments and Intangible Assets

The Company reviews the estimated useful lives of Property, plant and equipment at the end of each
reporting period. During the current year, there has been no change in life considered for the assets.

c) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the
Company, including legal, contractor, land access and other claims. By their nature, contingencies will be
resolved only when one or more uncertain future events occur or fail to occur. The assessment of the
existence, and potential quantum, of contingencies inherently involves the exercise of significant judgment
and the use of estimates regarding the outcome of future events.

d) Deferred Tax Assets

The recognition of deferred tax assets requires assessment of whether it is probable that sufficient future
taxable profits will be available against which deferred tax assets can be utilized. The Company reviews at
each balance sheet the carrying amount of deferred tax asset if any.

e) Income tax provision

The company provides for income tax expenditure in respect of the year taking into consideration the
applicable income tax laws which include usage of conclusions drawn for precedents pronounced by various
fora. The actual income tax expense may undergo a change upon completion of tax audit or assessment by
tax authorities and the resultant expense/credit is accounted as and when it arises.

33 Financial risk management

The company is exposed to risks in the form of Market Risk, Liquidity Risk and Credit Risk. The risk management
activities of the company are monitored by the board of directors. The nature and extent of risks have been
disclosed in this note.

a. Market Risk:

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

i) Currency Risk

If a Company has receivable and payables denominated in currency other than INR it exposes the company
to currency risk. As on 31st March 2025, the Company is not exposed to any material currency risks. The
company does not avail any forward contracts or such other instruments to cover its exchange rate risk.

ii) Interest rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company has no significant exposure to interest rate risk as

there are no outstanding borrowings at the close of the year.

iii) Equity Price Risk

The Company is exposed to equity price risk because of its investment in equity shares of its subsidiary
company. Since, the subsidiary company is unlisted and the equity instruments are measured at cost, the
profits of the company is not materially affected due changes in the value of those equity instruments except
when sold.

b. Liquidity Risk:

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The company
has adequate liquid investments built out of internal accruals to meet its short term and long term liabilities.

c. Credit Risk:

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation. The management evaluates the credit risk of individual financial assets at
each reporting date. An expected credit loss is recognized if the credit risk has increased significantly since the
initial recognition of the financial instrument. In general, the company assumes that there has been a significant
increase in credit risk since initial recognition if the amounts are 30 days past due from the initial or extended
due date. However, in specific cases the credit risk is not assessed to be significant even if the asset is due
beyond a period of 30 days depending on the credit history of the customer with the company and business
relation with the customer.

34 Fair values

The fair value of the financial assets and financial liabilities is the amount at which the instrument could be
exchanged in a current transaction between willing parties , other than in a forced or liquidation sale. During
the year 2024-25, the company did not have any financial instrument that was measured at fair value on
recurring basis.

i) Fair value measurement hierarchy is as follows:

a) Level 1 : item of fair valuation is based on market price quotation at each reporting date.

b) Level 2 : item of fair valuation is based on significant observable input like PV of future cash flows, MTM

valuation, etc.

c) Level 3 : item of fair valuation is based upon significant unobservable inputs where valuation is done by

independent value.

ii) The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current
financial assets and are considered to be the same as their fair values, due to their short-term nature.

(iii) The fair values of financial assets and liabilities measured at amortized cost are approximate their carrying
amount.

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

39 Other Regulatory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

(ii) The Company did not have any transactions with companies struck off under section 248 of Companies
Act, 2013 or section 560 of Companies Act, 1956.

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

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have 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

(vi) The Company have 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

(vii) The Company does not have any such transaction 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 the Income Tax Act, 1961.

40 Segment Information

Operating results are regularly reviewed by the entity''s chief operating decision maker (CODM) to make

decisions about to be resources allocated to the segment and assess its performance and for which discrete
financial information is available for the following segments which are tabulated below. No operating segments
have been aggregated in arriving at the reportable segments of the company. Specifically the company''s
reportable segments under Ind AS 108 are as follows

NOTES FORMING PART OF FINANCIAL STATEMENTS

i) Operating Segment

a) Camphor

b) Real Estate

ii) Geographical information

The Company predominantly operates in India (Country of domicile).

Revenue and expenses directly attributable to segments are reported under each reportable segment. Assets
and liabilities that are directly attributable or allocable to segments are disclosed under each reportable
segment.

42 Previous Years'' figures have been regrouped and rearranged, wherever necessary, to conform to current year
classification and rounded off to the nearest lakh rupee.

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

For P. Chandrasekar LLP SURESH SHAH DIPESH S JAIN

Chartered Accountants Managing Director Joint Managing Director

Firm Registration No.: 000580S/S200066 DIN: 01659809 DIN: 01659930

S. RAGHAVENDHAR SURENDRA KUMAR SHAH K. ABIRAMI

Partner Chief Financial Officer Company Secretary

Membership No.: 244016

Place: Chennai
Date: May 27, 2025

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Mar 31, 2024

2.17 Provisions, Contingent Liabilities and Contingent Assets

a) Provision

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.

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 pre-tax 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 recognized as interest expenses.

b) 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 recognized because

• It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

• The amount of the obligation cannot be measured with sufficient reliability.

c) Contingent Asset

Contingent assets are not recognized but are disclosed only where an inflow of economic benefits is probable.

2.18 Current and Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification. Cash or cash equivalent is treated as current, unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. In respect of other assets, it is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in the normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

• It is expected to be settled in the normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

2.19 Financial instruments

(a) Recognition:

Financial assets and financial liabilities are recognized when a company entity becomes a party to the contractual provisions of the instruments.

(b) Classification of financials instruments

The Company classifies its financial assets in the following categories:

• Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• Those measured at amortized cost.

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

(c) Measurement

(i) Initial Recognition:

At Initial recognition, the Company measures a financial asset at its fair value plus transaction cost (in the case of a financial asset not a fair value through profit or loss) that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in statement of profit or loss.

(ii) Subsequent measurement:

• Debt Instruments

Subsequent measurement of debt instruments depends on the company''s business model for managing the asset and the cash flow characteristics of the asset. There are two measurement categories into which the Company classifies its debt instruments.

- Amortized Cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is de-recognized or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

- Fair Value through profit and loss statement

Assets that do not meet the criteria for amortized cost or Fair Value through Other Comprehensive Income (FVOCI) are measured at Fair Value Through Profit or Loss (FVTPL). A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in profit or loss and presented in the statement of profit and loss within other gains/ (losses) in the period in which it arises. Interest income from these financial assets is included in other income.

• Equity Instruments

The Company subsequently measures all investments in equity (except of the subsidiaries/associate) at fair value. Where the company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are recognized in profit or loss as other income when the Company''s right to receive payments is established.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately.

Where the Company elects to measure fair value through profit and loss, changes in the fair value of such financial assets are recognized in the statement of profit and loss.

(d) Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Expense is recognized on an effective interest basis for debt instruments other than those financial liabilities classified as at FVTPL. Interest expense is recognized in profit or loss and is included in the ''finance cost'' line item.

(e) Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortized cost, lease receivables, trade receivables, and other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument through the expected life of that financial instrument.

For trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

(f) De-recognition of financial assets and financial liabilities

The Company de-recognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset.

The Company de-recognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

2.20 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

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, 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/cash credits. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

2.21 Key sources of estimation uncertainty

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key assumption concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as given below.

a) Estimation of long term and post employment benefits

The Company engages the services of an actuary to compute the present value of its defined benefit obligations in respect of compensated absences and gratuity payable to its employees. The estimation involves use of assumptions and inputs such as life expectancy, attrition rate, salary increment rate etc.

b) Useful life of Property, Plant &Equipments and Intangible Assets

The Company reviews the estimated useful lives of Property, plant and equipment at the end of each reporting period. During the current year, there has been no change in life considered for the assets.

c) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor, land access and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgment and the use of estimates regarding the outcome of future events.

d) Deferred Tax Assets

The recognition of deferred tax assets requires assessment of whether it is probable that sufficient future taxable profits will be available against which deferred tax assets can be utilized. The Company reviews at each balance sheet the carrying amount of deferred tax asset if any.

e) Income tax provision:

The company provides for income tax expenditure in respect of the year taking into consideration the applicable income tax laws which include usage of conclusions drawn from precedents pronounced by various fora. The actual income tax expense may undergo a change upon completion of tax audit or assessment by tax authorities and the resultant expense/credit is accounted as and when it arises.

b) Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. 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 ensuing Annual General Meeting

For the year ended March 31, 2024, the amount of dividend (if any) proposed by board of directors is subject to approval of shareholders at annual general meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders

No shares were alloted as fully paid bonus shares during the 5 years immediately preceding 31.03.2024. No shares were allotted for non-cash consideration during the 5 years immediately preceding 31.03.2024.

General Reserve:

General reserve is created out of profits transferred from retained earnings. General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. It is a free reserve eligible for distribution to shareholders subject to the provisions of The Companies Act, 2013.

Securities Premium:

Securities premium represents the amount collected from shareholders in excess of face value towards issue of share capital. Securities Premium can be utilized in accordance with The Companies Act 2013.

Capital Redemption Reserve:

Capital Redemption Reserve is created as required by section 69 of Companies Act 2013 on account of buy-back of shares. The Capital redemption reserve may be applied by the company, in paying up unissued shares of the company to be issued to Members of the company as fully paid bonus shares.

32 Financial risk management

The company is exposed to risks in the form of Market Risk, Liquidity Risk and Credit Risk. The risk management activities of the company are monitored by the board of directors. The nature and extent of risks have been disclosed in this note.

a. Market Risk:

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

i) Currency Risk:

If a Company has receivable and payables denominated in currency other than INR it exposes the company to currency risk. As on 31st March 2024, the Company is not exposed to any material currency risks. The company does not avail any forward contracts or such other instruments to cover its exchange rate risk.

ii) Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has no significant exposure to interest rate risk as there are no outstanding borrowings at the close of the year.

iii) Equity Price Risk:

The Company is exposed to equity price risk because of its investment in equity shares of its subsidiary company. Since, the subsidiary company is unlisted and the equity instruments are measured at cost, the profits of the company is not materially affected due changes in the value of those equity instruments except when sold.

b. Liquidity Risk:

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The company has adequate liquid investments built out of internal accruals to meet its short term and long term liabilities.

c. Credit Risk:

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The management evaluates the credit risk of individual financial assets at each reporting date. An expected credit loss is recognized if the credit risk has increased significantly since the initial recognition of the financial instrument. In general, the company assumes that there has been a significant increase in credit risk since initial recognition if the amounts are 30 days past due from the initial or extended due date. However, in specific cases the credit risk is not assessed to be significant even if the asset is due beyond a period of 30 days depending on the credit history of the customer with the company and business relation with the customer.

33 Fair values

The fair value of the financial assets and financial liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties , other than in a forced or liquidation sale. During the year 2023-24, the company did not have any financial instrument that was measured at fair value on recurring basis.

i) Fair value measurement hierarchy is as follows:

a) Level 1 item of fair valuation is based on market price quotation at each reporting date

b) Level 2 item of fair valuation is based on significant observable input like PV of future cash flows, MTM valuation, etc.

c) Level 3 item of fair valuation is based upon significant unobservable inputs where valuation is done by independent value.

ii) The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial assets and are considered to be the same as their fair values, due to their short-term nature.

(iii) The fair values of financial assets and liabilities measured at amortized cost are approximate their carrying amount.

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

Operating results are regularly reviewed by the entity''s chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available for the following segments which are tabulated below. No operating segments have been aggregated in arriving at the reportable segments of the company. Specifically the company''s reportable segments under Ind AS 108 are as follows

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company did not have any transactions with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

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

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have 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

(vi) The Company have 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

(vii) The Company does not have any such transaction 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 the Income Tax Act, 1961.

41 Previous Years'' figures have been regrouped and rearraged, wherever necessary, to conform to current year classification and rounded off to the nearest lakh rupee.

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

For P. Chandrasekar LLP SURESH SHAH DIPESH S JAIN

Chartered Accountants Managing Director Joint Managing Director

Firm Registration No.: 000580S/S200066 DIN: 01659809 DIN: 01659930

S. RAGHAVENDHAR SURENDRA KUMAR SHAH K. ABIRAMI

Partner Chief Financial Officer Company Secretary

Membership No.: 244016

Place: Chennai Date: May 29, 2024

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Mar 31, 2023

Nature and purpose of the reserve:

General Reserve:

General reserve is created out of profits transferred from retained earnings. General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. It is a free reserve eligible for distribution to shareholders subject to the provisions of The Companies Act, 2013.

Warrant Deposit:

Deposits received and retained against unconverted Warrants. This will be converted to Equity Share Capital and Securities Premium post conversion of Warrants.

Securities Premium:

Securities premium represents the amount collected from shareholders in excess of face value towards issue of share capital. Securities Premium can be utilized in accordance with The Companies Act 2013.

Capital Redemption Reserve:

Capital Redemption Reserve is created as required by section 69 of Companies Act 2013 on account of buy-back of shares. The Capital redemption reserve may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.

The accompanying notes are an integral part of the financial statements.

b) Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. 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 ensuing Annual General Meeting.

As at March 31,2023, the total number of shares issued, Subscribed and Paid up is 43,43,891 (March 31, 2022: 43,43,891).

During the year ended March 31, 2023, the amount of dividend (if any) proposed by board of directors is subject to approval of shareholders at annual general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

No shares were alloted as fully paid bonus shares during the 5 years immediately preceding 31.03.2023. No shares were allotted for non-cash consideration during the 5 years immediately preceding 31.03.2023.

Nature and purpose of the reserve:

General Reserve:

General reserve is created out of profits transferred from retained earnings. General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. It is a free reserve eligible for distribution to shareholders subject to the provisions of The Companies Act, 2013.

Securities Premium:

Securities premium represents the amount collected from shareholders in excess of face value towards issue of share capital. Securities Premium can be utilized in accordance with The Companies Act 2013.

Capital Redemption Reserve:

Capital Redemption Reserve is created as required by section 69 of Companies Act 2013 on account of buy-back of shares. The Capital redemption reserve may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.

30 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

31 Capital management

The Company''s objective of capital management is to maximise the return to its shareholders through optimal mix of debt and equity.

The Company determines the amount of capital required on the basis of annual and long-term operating plans. The funding requirements are currently met through equity. The Company monitors the capital structure on an ongoing basis.

32 Financial risk management

The company is exposed to risks in the form of Market Risk, Liquidity Risk and Credit Risk. The risk management activities of the company are monitored by the board of directors. The nature and extent of risks have been disclosed in this note.

a. Market Risk:

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

i) Currency Risk:

If a Company has receivable and payables denominated in currency other than INR it exposes the company to currency risk. As on 31st March 2023, the Company is not exposure to any material currency risks.

ii) Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has no significant exposure to interest rate risk as it had repaid all its borrowings during the year.

iii) Equity Price Risk:

The Company does not have any exposure to equity price risk as it is not holding any investment in securities in the nature of equity instruments.

b. Liquidity Risk:

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The company has obtained fund and non-fund based working capital limits from various bankers which is used to manage the liquidity position and meet obligations on time.

Credit Risk:

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The management evaluates the credit risk of individual financial assets at each reporting date. An expected credit loss is recognized if the credit risk has increased significantly since the initial recognition of the financial instrument. In general, the company assumes that there has been a significant increase in credit risk since initial recognition if the amounts are 30 days past due from the initial or extended due date. However, in specific cases the credit risk is not assessed to be significant even if the asset is due beyond a period of 30 days depending on the credit history of the customer with the company and business relation with the customer. A default on a financial asset is when the counter party fails to make contractual payments within 1 year from the date they fall due from the initial or extended due date. The definition of default is adopted given the industry in which the entity operates.

33 Fair values

The fair value of the financial assets and financial liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties , other than in a forced or liquidation sale. During the year 2021-22, the company did not have any financial instrument that was measured at fair value on recurring basis.

i) Fair value measurement hierarchy is as follows:

a) Level 1 item of fair valuation is based on market price quotation at each reporting date

b) Level 2 item of fair valuation is based on significant observable input like PV of future cash flows, MTM valuation, etc.

c) Level 3 item of fair valuation is based upon significant unobservable inputs where valuation is done by independent value.

ii) The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial assets and are considered to be the same as their fair values, due to their short-term nature.

iii) The fair values of financial assets and liabilities measured at amortized cost are approximate their carrying amount.

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

37 Segment Reporting

The Board of Directors of the Company has been identified as the Chief Operating Decision Maker ("CODM"). The Directors evaluate the Company performance and allocate resources based on the analysis of various performance indicators of the Company as a single unit. Therefore there is no reportable segment for the Company. The entire revenue from operations is derived from India. All non-current assets are situated within India.

* Above includes Rs. 106.61 Lakh of Corporate Social Responsibility expense related to ongoing projects as at March 31, 2023 (March 31, 2022: Rs. 105.68 Lakh). The same was transferred to a special account designated as "Unspent Corporate Social Responsibility Account for FY23" ("UCSRA - FY23") of the Company within 30 days from end of financial year.

39 Other Regulatory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company did not have any transactions with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

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

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have 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

(vi) The Company have 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

(vii) The Company does not have any such transaction 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 the Income Tax Act, 1961.

41 Previous Years'' figures have been regrouped and rearraged, wherever necessary, to conform to current year classification and rounded off to the nearest lakh rupee.

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Mar 31, 2015

(I) BACKGROUND

Kanchi Karpooram Limited ('the company') was incorporated on 31-01-1992. The Company is South India's first and largest producer of a variety of Terpene and Paper chemicals. The Company manufacture Camphor and allied products.

1. Contingent Liabilities not provided for as on 31-03-2015 - Rs. NIL (PY. Rs. NIL)

2. Related Party Disclosures:-

Key Managerial Personnel (KMP)

A Shri. Suresh V Shah Managing Director

B Shri. Arun VShah Director

C Shri. Dipesh S.Jain Whole Time Director Director

PushpaSJain Director Other Related Parties

M/s Suresh Industries Firms in which directors have significant influence

M/s Ambika Industries Firms in which directors have significant influence

Jitendra Shah HUF Relative of Director

KavitaAJain Relative of Director

Lata A Shah Relative of Director

ShanthaVJain Relative of Director

Mukhesh Goal Relative of Director

3. Segment Reporting

The Company is engaged in Single business of Camphor and allied products and in single geographical segment and hence "Segment Reporting" is not applicable.

4. Employee Benefits

The following table sets forth the status of unvailed leave and Gratuity plan of the Company and of the amounts recognised in the Balance Sheet and statement of Profit and Loss

5. Amounts due and outstanding to be credited to the Investor Education and Protection Fund as at 31.03.2015 is Rs NIL

6. The company has changed the method of providing depreciation from 1st April 2014 as required by the Companies Act, 2013. Accordingly depreciation is provided in accordance with Schedule II thereof for the current year as against the rates specified in Schedule XIV to the Companies Act, 1956 adopted in the previous year. As a result, depreciation for the current year is higher by Rs. 6.51 lakhs. Further, in respect of assets whose remaining useful life is nil, their carrying amounts as on 1st April 2014, aggregating to Rs.1,85,722/- is adjusted against retained earnings as on 01/04/2014.

7. Previous year figures have been regrouped, wherever necessary and rounded off to the nearest rupee.

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Mar 31, 2014

(I) BACKGROUND

Kanchi Karpooram Limited (''the company'') was incorporated on 31-01-1992. We are South India''s first and largest producer of a variety of Terpene and Paper chemicals. Our Products range from Turpentine-based chemicals like Camphor, Dipentine, Iso Bornyl Acetate, etc. to Gum rosin and its derivates such as Fortified Rosin, Ester Gum, Phenolic / Maleic Resins and many others. We are keen to develop and expand our customer base to provide industries with a stable, continuous supply of raw materials from a totally new source.

We are committed to product quality assurance so as to be the innovative and reliable supplier you need.

NOTE - 2

ADDITIONAL NOTES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.3.2014

1. Contingent liabilities not provided for: as on 31.03.2014 Rs.NIL (P.Y. Rs.NIL)

2. Related party disclosures:

Key Management Personnel (KMP):

Mr. Suresh V Shah - Managing Director

Mr. Arun V Shah - Director

Mr. Dipesh S. Jain - Whole Time Director

Other Related parties:

M/s.Suresh Industries - Significant influence in the company

M/s. Ambika Industries - Significant influence in the company

Mukesh Goal - Relative of Director

Pushpa S. Jain - Relative of Director

3. Segment Reporting:

The company is engaged in single business of camphor and allied products and in single geographical segment and hence ''Segment Reporting'' is not applicable.

4. Employee Benefits:

The following table sets forth the status of unavailed leave and Gratuity plan of the Company and of the amounts recognized in the Balance Sheet and Profit and Loss account:

5. Operating Lease:

a) A sum of Rs.7,90,138 (P.Y. Rs.5,17,289) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

b) Maximum lease payments in respect of vehicle purchased under hire purchase (Future Commitment) is as under:

6. Amounts due and outstanding to be credit to the Investor Education and Protection Fund as at 31.03.2014 is Rs.NIL

7. Confirmation of balances has been received from substantial parties.

8. Previous yearfigures have been regrouped, wherever necessary and rounded off to the nearest rupee.

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Mar 31, 2013

1. Contingent Liabilities not provided for : as on 31.03.2013 Rs.Nil (P.Y. Rs.Nil)

2. Related Party Disclosure:-

1. List of Related Parties with whom control exists:

a. Shri. Suresh V Shah Managing Director

b. Shri. Arun V Shah Director

c. Shri. Deepesh S. Shah Whole Time Director

2. Description of relationship - Presumption of significant influence

3. Segment Reporting The Company is engaged in Single business of Camphor and allied products and in single geographical segment and hence "Segment Reporting” is not applicable.

4. Confirmation Of Balances

Confirmation of Balances have not been received from Debtors, Creditors, and in respect of Loans & Advances, Deposits and other Liabilities.

5. Rounding off of Balances

Figures have been rounded off to the nearest rupee and the figures for the previous year have been regrouped and reclassified wherever necessary, to confirm to current period''s classification.

6. There is no amount to be transferred to Investor Education and protection Fund account as at 31-3-2013.