Notes to Accounts of KSE Ltd.

Mar 31, 2025

1.11 Provisions, Contingent Liability and Contingent Assets

Disputed liabilities and claims against the company including claims raised by fiscal authorities pending in
appeal for which no reliable estimate can be made and or involves uncertainty of the outcome of the
amount of the obligation or which have remote chance for crystallisation are not provided for in accounts
but disclosed by way of notes to the accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliable
estimation can be made of the amount of obligation, is recognized in accounts in terms of discounted
value, if the time value of money is material using a current pre-tax rate that reflects the risk specific to the
liability.

Contingent assets, if any, are not recognised in the accounts but are disclosed by way of notes to the
accounts.

1.12 Foreign currency

Functional currency and presentation currency

The functional currency of the company is the Indian rupee. The financial statements are presented in
Indian rupees (rounded off to lakhs).

Transactions and translations

Foreign currency denominated monetary assets and liabilities are translated into the relevant functional
currency at exchange rates in effect at the balance sheet date. The gains or losses resulting from such
translations are included in the Statement of Profit and Loss. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate
prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange
rate prevalent at the date of the transaction.

Transaction gains or losses realised upon settlement of foreign currency transactions are included in
determining net profit for the period in which the transaction is settled. Revenue, expense and cashflow
items denominated in foreign currencies are translated into the functional currency using the exchange
rate prevailing on the date of the transaction.

1.13 Earnings per equity share

Basic earnings per equity share is computed by dividing the profit for the year attributable to the equity
holders of the company by the weighted average number of equity shares outstanding during the period.
Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of
the company by the weighted average number of equity shares considered for deriving basic earnings per
equity share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the
proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value
of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the
beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined
independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all
periods presented for any share splits and bonus shares issues including for changes effected prior to the
approval of the financial statements by the Board of Directors.

1.14 Income tax and Deferred Tax

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in the
statement of profit and loss except to the extent that it relates to items recognised directly in equity, in
which case it is recognized in other comprehensive income. Income tax for current and prior periods is
recognised at the amount using the tax rates as per the tax laws that have been enacted. Deferred income
tax assets and liabilities are recognised for all temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered or settled. The effect of
changes in tax rates on deferred income tax assets and liabilities is recognised as income or expense in the

period that includes the enactment or the substantive enactment date. A deferred income tax asset is
recognized to the extent that it is probable test future taxable profit will be available against which the
deductible temporary differences and tax losses can be utilized.

The companyoffsets current tax assets and current tax liabilinies, where it has a legally enforceabls rigSt to
set off the recognized amounts and where it intends either to settle on a net besis, or to realize the asset
aed settle the liability simultaneef el y. Tine income tax provisiee for the interim period is made based on the
best estimate of the annual average tax rate expected to be applicable for the full financial year.

1.15 Employee benefits

A. Short-term employee benefits

tell employee benefits paynble wholly within twelve months of rendering the service are classified as “short
term employee benefits and they are recogsised in the period in which the employee renders the related
service. The Company recognizes the undiscounted amount of edort termemployee benefits expected to
be paid ia exchange for services rendered as a liability (accrued expense) after deducting any amount
already paid.

B. Post-employment benefits

(a) Defined contribution plans

Defined contributien nlans are Provident Fund Scheme and Employees'' State iusurance Scheme
administered by the Goyennment for all eligible employees. Tan Company''s contributions to defined
cont ribation plans are recognised in the Statement of Profit and Loss in the financial year to which
they relate.

(b) Defined benefit gratuity plan

A Group Graluity Truss under the name "KSE Empl oyee''s Group Gratuity Fund Trust" has been
formed_i which manages the funds transfnrred to the Tnust by the Company for meeting its gratuity
lia bility eotimated by ectuarial valuation and the paymen t of gratuity on re tirement ofthe employees
or the Company. The Trust hes taSen Policies under the Employee''s Group Grat way-eum-Life
Assurance Sc heme of ten Life Inserance Cor poration of India_i The net present value of the
obligatio s for gratuity benefits as determined o a indepe ndent actuarial valuation, son docted
annually using the projested unit credit method, as sdjusted for unrecognioed past sereices cost, if
any, and as reduced by the fair value of plan assets, is recognised in the accounts of the Company.

All exeenses represeuted by aurrent semce cost, past se rvice cost, if any, and eet int erest on the
defired benefit liabiliny/ (asset) are recognized in the Statement oi Pfofit ane Loss.
Remeas ureme nts of the net refined benefit li ability / (asset) comp risin g actuarial gain s an d losses
and tine return an the plan assens (excluding amoue^e included in net intersst on the net defined
benefit liability/asset), are recogmzed in Oteer Comprehensive Income. Sueh remeasurements are
not reclassified to the Statement of Profit and Loss in the subsequent periods.

Gratuity m respect of wholo-time directors, if any, is provided for on gross undiscounted basis and
charged to Statement of Profit and Loss.

C. Other long term employee benefits

The company has a scheme for compensated absences for eligible employees. The company makes
contributions to the Scheme of the Life Insurance Corporation of India. The net present value of the
obligation for compensated absences as determined on independent actuarial valuation, conducted
annually using the projected unit credit method and as reduced by the fair value of plan assets, is
recognised in the accounts. Actuarial gains and losses are recognised in full in the Statement of Profit and
Loss for the period in which they occur.

1.16 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects
of transactions of a 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 of the Company are segregated into operating, investing and financing activities.

1.17 Dividends

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.

1.18 Leases

Leases under which the company assumes substantially all the risks and rewards of ownership are
classified as finance leases. When acquired, such assets are capitalized at fair value or present value of the
minimum lease payments at the inception of the lease, whichever is lower. Lease payments under
operating leases are recognized as an expense on a straight-line basis in the Statement of Profit and Loss
over the lease term.

1.19 Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are
incurred.

1.20 Inventories

Inventories as at the close of the year are valued at lower of cost or net realisable value. However, materials
and other items held for use in production of inventories are not written down below cost if the finished
goods in which they will be incorporated are expected to be sold at or above cost. The comparison of cost
and net realizable value is made on an item-by item basis. Cost of inventory comprises all costs of
purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and all other

costs incurred in bringing the inventory to their present location and condition, determined on the
following methods:

(a) Raw materials - First In First Out (FIFO)

(b) Packing materials - First In First Out (FIFO)

(c) Stores & spares and consumables:

i. Furnace Oil, Diesel and Boiler Fuel - First In First Out (FIFO)

ii. Others - At weighted average cost

Cost of finished goods includes the cost of raw materials, packing materials, an appropriate share of fixed
and variable production overheads, ineligible tax credits as applicable and other costs incurred in bringing
the inventories to their present location and condition. Fixed production overheads are allocated on the
basis of normal capacity of production facilities.

1.21 Operating Segments

The Company''s reportable segments (business segments) have been identified as (a) Animal Feed
Division (b) Oil Cake Processing Division, which includes vegetable oil refining also and (c) Dairy Division
comprising milk and milk products including ice cream. There are no reportable geographical segments.
Segment revenue, segment results, segment assets and segment liabilities include the respective
amounts identifiable to each of the segments as also amounts allocated on a reasonable estimate. The
Operating segments have been identified on the basis of the nature of products/services.

Segment revenue includes sales and other income directly identifiable with the segment including inter¬
segment revenue. Expenses that are directly identifiable with the segments are considered for
determining the segment results. Expenses which relate to the Company as a whole and not allocable to
segments are included under unallocable expenditure. Income which relates to the Company as a whole
and not allocable to segments is included in unallocable income. Segment result includes margins on inter¬
segment sales which are reduced in arriving at the profit before tax of the Company. Segment assets and
liabilities include those directly identifiable with the respective segments. Unallocable assets and liabilities
represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.

1.22 Government Subsidy/ Grant

Government Grant is recognized only when there is a reasonable assurance that the entity will comply with
the conditions attaching to them and the grants will be received.

a) Subsidy related to assets is recognized as deferred income which is recognized in the statement
of profit & loss on systematic basis over the useful life of the assets.

Purchase of assets and receipts of related grants are separately disclosed in statement of cash
flow.

b) Grants related to income are treated as other income in statement of profit and loss subject to
due disclosure about the nature of grant.

1B. DISCLOSURE OF SIGNIFICANT JUDGEMENT UNDER IND AS 1

Classification of Long-Term Leasehold Land

The Company has entered into lease arrangements for land with lease terms extending up to 99 years with
upfront premium paid and nominal annual lease rent. Based on the evaluation of the terms of the lease

The Company has a well-managed risk management framework, anchored to policies and procedures and
internal financial controls aimed at ensuring early identification, evaluation and management of key financial
risks (such as liquidity risk, market risk, credit risk and foreign currency risk) that may arise as a consequence
of its business operations as well as its investing and financing activities.

Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are
managed within acceptable risk parameters in a disciplined and consistent manner and in compliance with
applicable regulation.

1) Liquidity Risk

Liquidity risk is the risk that the Company will encounter due to difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity
risk may result from an inability to sell a financial asset quickly at close to its fair value.

The company has sound financial strength represented by its aggregate current assets including current
investments as against aggregate current liabilities and its strong equity base. In such circumstances, liquidity
risk is insignificant.

2) Market Risk

As the Company''s overall debt is less compared to its equity, the exposure to interest rate risk from the
perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments
in debt instruments, are administered under a set of approved policies and procedures guided by the tenets of
liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters
after due evaluation. The Company''s investments are predominantly held in fixed deposits and debt mutual
funds. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest
rate volatility. The Company also invests in mutual fund under schemes of leading fund houses. Such
investments are susceptible to market price risk that arise mainly from changes in interest rate which may
impact the return and value of such investments. However, given the relatively short tenure of underlying
portfolio of most of the mutual fund schemes in which the Company has invested, such price risk is not
significant.

3) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in
mutual funds, derivative financial instruments, other balances with banks and other receivables.

The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit
rating. The Company''s exposure and credit ratings of its counterparties are continuously monitored and the
aggregate value of transactions is reasonably spread amongst the counterparties. Credit risk arising from
investment in mutual funds, derivative financial instruments and other balances with banks is limited because
the counterparties are banks and recognized financial institutions with high credit ratings.

For trade receivables, as a practical expedient, the company is accepting advance from customers against
sale of goods. Hence credit risk is negligible.

4) Foreign Currency Risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar) which are subject
to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, are
also subject to reinstatement risks.

The Company has established risk management policies to hedge the volatility arising from exchange rate
fluctuations in respect of firm commitments and highly probable forecast transactions, through foreign
exchange forward contracts. The proportion of forecast transactions that are to be hedged is decided based
on the size of the forecast transaction and market conditions. As the counterparty for such transactions are
highly rated banks, the risk of their non-performance is considered to be insignificant.

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves
attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to
safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize
shareholder value.

The Company''s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for
growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals. The
Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a
going concern.

As at 31^st March, 2025, the Company has only one class of equity shares. The company is not subject to any externally
imposed capital requirements.

0.347 Lakhs SGST) vide order dated 22.11.2023. Interest to the tune of Rs 0.75 Lakhs and penalty of Rs 0.69 Lakhs
was also demanded in the order. The company has filed appeal against the order on 14.02.2024 and remitted Rs
6,936 as pre deposit. Since there is no fault on the part of the company, company is confident of receiving
favourable order in this regard.

(ii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding f
25.40 lakhs (including interest f 12.64 lakhs) for the financial year 2000-01 against sales tax exemption claimed on
sale of refined vegetable oil. On appeal, The Deputy Commissioner (Appeals), Ernakulam had issued an order
directing the assessing authority to reconsider the matter. The final order from the Assistant Commissioner
(Assessment) is not yet received.

(iii) Southern Railway had raised two demands aggregating to f 57.11 lakhs on grounds of undercharge due to
incorrect classification of deoiled rice bran. The claim has been challenged by the Company before the Hon. High
Court of Kerala and the writ petition is still pending before the Court.

(iv) (a) Some of the employees of the company had challenged the enhancement of wage limit for coverage of ESI,

before the Hon. High Court of Kerala and the Court had granted stay. The cases were disposed off by the Court
in favour of ESI Corporation and Company had remitted contributions of employer and employees.

Subsequently, ESI Corporation demanded interest amounting to f 1.57 lakhs for delay in payment of
contributions relating to the period when the above stay was in operation and f 0.19 lakh towards employees''
contribution in respect of retired/resigned employees during the said period. Company had preferred appeal
before the ESI Court, Palakkad which was decided in favour of the Company. Aggrieved by the order, ESI
Corporation had filed appeal before the Hon. High Court of Kerala challenging the orders of ESI Court, Palakkad,
and the said appeal is still pending.

ESI Corporation had also demanded damages of f 1.14 lakhs for the delay in remittance of contribution
mentioned above and the Company had filed an appeal before the ESI Court, Palakkad which is still pending.

(b) ESI Corporation has issued order demanding f 1.63 lakhs as interest and f 0.60 lakh as damages for delay in
remittance of contribution on omitted wages for the period from 01.04.1996 to 31.03.2002. ESI Court, Thrissur
finally heard the case and set aside the demand and waived the damage demanded and remanded the matter
back to the Corporation for reconsideration. As per the direction of ESI Court, ESI Corporation issued order
dated 10.10.2022 with a revised demand of f 1.54 lakhs and the same was remitted. In the meantime, ESI
Corporation has filed an appeal before the High Court of Kerala against the order of the ESI Court, which is still
pending and hence no contingent liability is shown in this regard.

(v) (a) The BSE Limited, wherein the shares of the Company are listed, had issued a demand vide their letter dated

03.02.2020, for a fine of f 2.48 lakhs for non-compliance with Regulations 17 (1) and 19 (1) /19 (2) of SEBI (LODR)
Regulations, 2015 dealing with requirements as the composition of the Board including failure to appoint woman
director and for non-compliance with the constitution of the Nomination and Remuneration Committee. It has
been represented to the BSE Limited in writing that the Company is fully compliant with these regulations and
the Company has requested to recall the demand of fine. BSE Limited has not communicated on the said
representations till date.

In all the above cases company is legally advised that there is a good chance for full relief and hence no provision is

considered necessary at this stage.

34.4 The exceptional income of Rs 250.75 Lakhs for the year ended 31.03.2025 is net of insurance claim of Rs 251.80 Lakhs

received for flood-related damages of raw materials in Tamil Nadu during FY 2023-24 and additional expense of Rs 1.05

Lakh incurred by the company during the year on account of the materials damaged. The exceptional item of R.s 409.54
Lakhs for the year ended 31.03.2024 is net of the exceptional loss of Rs. 413.80 Lakhs, pertaining to the damage of raw
materials due to combustion and floods in Tamil Nadu during December 2023 (Rs.409.70 Lakhs based on provisional
assessment) and transit damage (Rs. 4.10 Lakhs) and the exceptional income of Rs. 4.26 Lakhs on account of receipt of
insurance claim received in part against the claim lodged during the financial year 2021- 22.

34.5 Balance with Government Authorities under Note 16 includes Goods and Service Tax (GST) which in the opinion of the
management is either refundable or eligible for set off against future GST liabilities.

34.6 Certain items of income and expenses have been netted off while reporting and expenses are stated net of recoveries; sale
of freezer and contribution received from dealers towards calendar and diaries are netted against Advertisement and Sales
promotion, Lay time incentive received in foreign currency is netted against respective purchase account. Cost of tea
supplied collected from employees is netted against Staff welfare expenses, bank charges recovered is netted against bank
charges paid.

34.7 Stores and spares consumed include cost of materials used for repairs and maintenance.

34.8 In the opinion of the Board, current assets and long-term loans & advances have the value at which they are stated in the
Balance Sheet, if realised in the ordinary course of business.

34.9 The company has a system of periodically obtaining and reconciling confirmations of balances with banks, suppliers and
customers.

34.10 Acid buff imported by the Company under CTH 23099020 at NIL rate was assessed by the Customs Department at 5%
IGST. Accordingly, the company has paid Rs 71.29 Lakhs under protest and filed writ petition before the Hon. High Court of
Kerala. The matter is disposed in favour of the company. Steps are being taken to secure refund of the amounts paid under
protest.

(a) Actuarial Risk - the risks that benefits costs more than expected. All assumptions used to project the
liability cash-flows are source of risk, if actual experience turns out to be worse than expected
experience - there could be a risk of being unable to meet the liabilities as and when they fall due. E.g. If
assumed salary growth rates turns out to be lesser than reality - this could cause a risk that the
provisions are inadequate in comparison to the actual benefits required to be paid.

(b) Investment Risk - There is a minimum investment return guaranteed to the Sponsor (called the
minimum floor rate) which is a non-zero positive percentage. Hence there is no market risk - risk due to
reductions in the market value of the underlying investments backing the insurance policy of the
Sponsor. Also there is a Guaranteed Surrender Value to the extent of 90% of contributions made net of
withdrawals and charges.

(c) Liquidity Risk - The investments are made in an insurance policy which is also very liquid - withdrawals
can happen at any time. There is no Market Value adjustment imposed for withdrawals done by the
Sponsor at an unfoward time except when the amount withdrawn exceeds 25% of the opening balance
at the beginning of the financial year. This can be easily mranaged by tnaking multiple withdrawals fo
ensure that the amiount withdrawn per transaction does not breach the limit above. Also nore that there
are no surrendet charges afrer three yeats. During the fitst three yeats also the surrender charges are
minimal.

rd) Legislative Risk -There could be changes to Regulation/legislation governing this Plan that could affect
the Company advetsely (e.g. introduction of a minimum benefit). The changes in regulation could
porentially increase the plan liabilities.

Notes:

1. The above disclosures are based on information certified by the independent actuary and relied upon by the
Company.

2. The plan assets of the Company are mranaged by the L-fe Insurance Corporation of India in rents of
insurance policies taken to tund the obligations of the Company with respect fo its Gratuity and
Compensared Absences Plan. Information on caregories of plan assets is not available with the Company.

34.26 Capital advance under Other Non-current Assets of previous year included ? 359.26 lakhs paid for purchase
of an existing ice cream manufacturing facility in KINFRA park in Malappuram District to cater the northern
districts of Kerala. During the current year, the legal title of the facility has been transferred to the company
and the facility is capitalized in the books at Rs 395.06 Lakhs.

34.27 Other information

(a) The Company has not traded or invested in crypto currency or virtual currency during the year.

(b) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or
government

or any government authority.

(c) The Company does not have any benami property held in its name. No proceedings have been initiated on
or are pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(d) The Company does not have any holding or subsidiary company.

(e) The Company does not have any transactions with companies struck off.

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

(g) 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
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 provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

(h) 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 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 provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.

(i) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of
account, in the tax assessments under the Income Tax Act, 1961 as income during the year.

34.28 Figures of the previous year have been regrouped and recast wherever necessary to suit the current year''s
layout.

The accompanying notes are integral part of the financial statements
For and on Behalf of Board of Directors of KSE Limited
(CIN No.L15331KL1963PLC002028)

Sd/- Sd/- As per our report of

Tom Jose (DIN : 01971467) M.P. Jackson (DIN : 01889504) even date attached

Chairman Managing Director

For SRIDHAR & CO.

Sd/_- Sd/_- Chartered Accountants, Thiruvananthapuram

Senthil Kumar Nallamuthu Paul Francis (DIN : 00382797) (Firm No. 003978S)

Chief Financial Officer Executive Director

Sd/-

Sd/_- Sd/_- CA. R. Srinivasan,, F.C.A.

Srividya Damodaran Dony A.G. (DIN : 09211623) (M. No. 200969)

Company Secretary Director ^Partner

UDIN: 25200969BMJOAM4447

Place: Irinjalakuda
Date: May 27, 2025

---

Mar 31, 2024

Note 8.1 See Note 1.20 for method of valuation of inventories.

Note 8.2 Raw materials include goods in transit amounting to ? 61.25 lakhs (previous year - ? 75.52 lakhs).

Note 8.3 During the current financial year, the inventory of solvent extracted coconut oil is valued at cost. During the previous financial year, it was valued at net realisable value being lesser than the production cost. The impact thereof on the inventory as on 31^st March, 2023 was ? 30.45 lakhs.

Note 8.4 The closing stock of semi-finished goods for previous financial year represent feed recalled from the market and

remaining in stock as on 31st March, 2023 valued at net realisable cost, subsequently re-utilised for production of feed based on technical advice and marketed.

Note 8.5 See Note 35.4 reporting abnormal loss occurred during the year ended 31st March, 2024.

Note 12.1 Balances with banks include restricted bank balances of f 198.05 lakhs (Previous year f 187.04 lakhs). The restrictions are primarily on account of bank balances held as margin money deposits against guarantees f 14.39 lakhs (Previous year f 6.34 lakhs) and earmarked bank balances for (1) unpaid dividends f 72.66 lakhs (Previous year f 86.38 lakhs) and (2) deposit repayment reserve account f 111.0 (Previous year f 94.32 lakhs).

Note 17.2 Terms/rights, Preferences and Restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of ? 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend 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, except in the case of interim dividend, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of directors has recommended a final dividend of ? 30 per equity share of ? 10 each, for the year 2023-24, out of retained earnings, subject to approval of shareholders at the ensuing annual general meeting.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 2013. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 17.4 There was no fresh issue or buying back of shares in the preceding five years.

Note 17.5 There was neither bonus issue nor any other issue of shares in the preceding five years.

Note 17.6 See Note 35.25 for Shareholding of Promoters.

Note 18.1 The Board of Directors of the company has proposed a final dividend of ? 30 per equity share, which is subject to approval by the shareholders at the ensuing Annual General Meeting. The total proposed final dividend for the year ended 31^st March, 2024 amounts to ? 960 lakhs. The Board has also proposed to transfer ? 640 lakhs to General Reserve.

Note 21.1 The cash credit facility of ? 9500.00 lakhs is secured by (1) First Charge by way of hypothecation of all

current assets of the Company and Plant and Machinery of Irinjalakuda and Konikkara Units; and (2) Equitable mortgage of immovable properties of Irinjalakuda and Konikkara Units by deposit of title deeds.

Note 21.2 Public Deposits include deposits accepted from Directors ? 10.00 lakh (Previous year ? 42.87 lakh) on

the same terms and conditions as applicable to other depositors.

35. ADDITIONAL INFORMATION 35.1 Fair Value Measurement

Fair value of the financial instruments is classified in various fair value hierarchies based on the following

three levels: Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities. Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

There were no transfers between Level 1 and Level 2 during the year.

The Company has a well-managed risk management framework, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as liquidity risk, market risk, credit risk and foreign currency risk) that may arise as a consequence of its business operations as well as its investing and financing activities.

Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable risk parameters in a disciplined and consistent manner and in compliance with applicable regulation.

1) Liquidity Risk

Liquidity risk is the risk that the Company will encounter due to difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The company has sound financial strength represented by its aggregate current assets including current investments as against aggregate current liabilities and its strong equity base. In such circumstances, liquidity risk is insignificant.

2) Market Risk

As the Company''s overall debt is less compared to its equity, the exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Company''s investments are predominantly held in fixed deposits and debt mutual funds. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility. The Company also invests in mutual fund under schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of most of the mutual fund schemes in which the Company has invested, such price risk is not significant.

3) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks and other receivables.

The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Company''s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited because the counterparties are banks and recognized financial institutions with high credit ratings.

For trade receivables, as a practical expedient, the company is accepting advance from customers against sale of goods. Hence credit risk is negligible.

4) Foreign Currency Risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar) which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, are also subject to reinstatement risks.

The Company has established risk management policies to hedge the volatility arising from exchange rate fluctuations in respect of firm commitments and highly probable forecast transactions, through foreign exchange forward contracts. The proportion of forecast transactions that are to be hedged is decided based on the size of the forecast transaction and market conditions. As the counterparty for such transactions are highly rated banks, the risk of their non-performance is considered to be insignificant.

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

The Company''s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern.

As at 31^st March, 2024, the Company has only one class of equity shares. The company is not subject to any externally imposed capital requirements.

35.3	Contingent liabilities and commitments (to the extent not provided for in the accounts)
		2023-24	2022-23
		f in lakhs	f in lakhs
		As on 31.03.2024	As on 31.03.2023
I Contingent Liabilities
a)	Claims against the Company not acknowledged as debts
	(i) Goods and Service Tax (GST)	2.13	—
	(ii) Kerala General Sales Tax	25.40	25.40
	(iii) Central Sales Tax	—	—
	(iv) Freight/demurrage demanded by Indian		57.11
	Railways	57.11	2.90
	(v) ESI	2.90	2.48
	(vi) Demand of Fine by BSE Limited	2.48	49.70
b)	Bank Guarantees in favour of KSEB	49.70
		139.72		137.59
II Commitments
	Estimated amount of contracts remaining to be executed on capital account not provided for	1024.60		966.30
TOTAL		1,164.32		1,103.89

Details in respect of claims against the Company not acknowledged as debts disclosed above are as follows:

(I) Assistant Commissioner of State Tax, SGST Department had raised demand of Rs 2.13 Lakhs for FY 2017-18 on the premises that Company has availed wrong Input Tax Credit amounting to Rs 0.69 Lahs (Rs.0.347 Lakhs CGST Rs.

0.347 Lakhs SGST) vide order dated 22.11.2023. Interest to the tune of Rs 0.75 Lakhs and penalty of Rs 0.69 Lakhs was also demanded in the order. The company has filed appeal against the order on 14.02.2024 and remitted Rs 6,936 as pre deposit. Since there is no fault on the part of the company, company is confident of receiving favourable order in this regard.

(ii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding ? 25.40 lakhs (including interest ? 12.64 lakhs) for the financial year 2000-01 against sales tax exemption claimed on sale of refined vegetable oil. On appeal, The Deputy Commissioner (Appeals), Ernakulam had issued an order directing the assessing authority to reconsider the matter. The final order from the Assistant Commissioner (Assessment) is not yet received.

(iii) Deputy Commissioner of sales tax, SGST, Special Circle, Thrissur issued an order under CST relating to Assessment year 2015-16 demanding ? 1.63 lakhs. The matter has been settled under amnesty scheme in year 2022-23.

(iv) Southern Railway had raised two demands aggregating to ? 57.11 lakhs on grounds of undercharge due to incorrect classification of deoiled rice bran. The claim has been challenged by the Company before the Hon. High Court of Kerala and the writ petition is still pending before the Court.

(v) (a) Some of the employees of the company had challenged the enhancement of wage limit for coverage of ESI,

before the Hon. High Court of Kerala and the Court had granted stay. The cases were disposed off by the Court in favour of ESI Corporation and Company had remitted contributions of employer and employees.

Subsequently, ESI Corporation demanded interest amounting to ? 1.57 lakhs for delay in payment of contributions relating to the period when the above stay was in operation and ? 0.19 lakh towards employees'' contribution in respect of retired/resigned employees during the said period. Company had preferred appeal before the ESI Court, Palakkad which was decided in favour of the Company. Aggrieved by the order, ESI Corporation had filed appeal before the Hon. High Court of Kerala challenging the orders of ESI Court, Palakkad, and the said appeal is still pending.

ESI Corporation had also demanded damages of ? 1.14 lakhs for the delay in remittance of contribution mentioned above and the Company had filed an appeal before the ESI Court, Palakkad which is still pending.

(b) ESI Corporation has issued order demanding ? 1.63 lakhs as interest and ? 0.60 lakh as damages for delay in remittance of contribution on omitted wages for the period from 01.04.1996 to 31.03.2002. ESI Court, Thrissur finally heard the case and set aside the demand and waived the damage demanded and remanded the matter back to the Corporation for reconsideration. As per the direction of ESI Court, ESI Corporation issued order dated 10.10.2022 with a revised demand of ? 1.54 lakhs and the same was remitted. In the meantime, ESI Corporation has filed an appeal before the High Court of Kerala against the order of the ESI Court, which is still pending and hence no contingent liability is shown in this regard.

(vi) (a) The BSE Limited, wherein the shares of the Company are listed, had issued a demand vide their letter dated

03.02.2020, for a fine of ? 2.48 lakhs for non-compliance with Regulations 17 (1) and 19 (1) /19 (2) of SEBI (LODR) Regulations, 2015 dealing with requirements as the composition of the Board including failure to appoint woman director and for non-compliance with the constitution of the Nomination and Remuneration Committee. It has been represented to the BSE Limited in writing that the Company is fully compliant with these regulations and the Company has requested to recall the demand of fine. BSE Limited has not communicated on the said representations till date.

In all the above cases company is legally advised that there is a good chance for full relief and hence no provision is

considered necessary at this stage.

35.4 The exceptional item of Rs 409.54 Lakhs for the year ended 31.03.2024 is net of the exceptional loss of Rs. 413.80 Lakhs, pertaining to the damage of raw materials due to floods in Tamil Nadu (Rs.409.70 Lakhs based on provisional assessment) and transit damage (Rs. 4.10 Lakhs) and the exceptional income of Rs. 4.26 Lakhs (corresponding figure for the year ended 31.03.2023 Rs. 118.47) on account of receipt of insurance claim received in part against the claim lodged during the financial year 2021-22. The company is in the process of lodging claims with the insurance company. The management is confident of recovering the loss from the insurance company in full.

35.5 Balance with Government Authorities under Note 16 includes Goods and Service Tax (GST) which in the opinion of the management is either refundable or eligible for set off against future GST liabilities.

35.6 Certain items of income and expenses have been netted off while reporting and expenses are stated net of recoveries; sale of freezer and contribution received from dealers towards calendar and diaries are netted against Advertisement and Sales promotion, Lay time incentive received in foreign currency is netted against respective purchase account. Cost of tea supplied collected from employees is netted against Staff welfare expenses, bank charges recovered is netted against bank charges paid.

35.7 Stores and spares consumed include cost of materials used for repairs and maintenance.

35.8 In the opinion of the Board, current assets and long-term loans & advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

35.9 The company has a system of periodically obtaining and reconciling confirmations of balances with banks, suppliers and customers.

35.10 Other expenses for previous year includes ? 2.12 lakhs provided for the demand of fine by BSE Ltd. for quarter ended 31-032023 for not exactly meeting the proportion of independent directors in the constitution of audit committee as per Regulation 18(1) of SEBI (LODR) Regulations, 2015.

35.11 Acid buff imported by the Company under CTH 23099020 at NIL rate was assessed by the Customs Department at 5% IGST. Accordingly, the company has paid Rs 13.34 Lakhs (Rs 6.70 Lakhs on 09.02.2024 and Rs 6.64 Lakhs on 16.02.2024) under protest and has filed writ petition and the matter is pending before the Hon. High Court of Kerala. The company is hopeful of getting favourable verdict in this regard.

(xiii) Note on key actuarial risks

(a) Actuarial Risk - the risks that benefits costs more than expected. All assumptions used to project the liability cash-flows are source of risk, if actual experience turns out to be worse than expected experience - there could be a risk of being unable to meet the liabilities as and when they fall due. E.g. If assumed salary growth rates turns out to be lesser than reality - this could cause a risk that the provisions are inadequate in comparison to the actual benefits required to be paid.

(b) Investment Risk - There is a minimum investment return guaranteed to the Sponsor (called the minimum floor rate) which is a non-zero positive percentage. Hence there is no market risk - risk due to reductions in the market value of the underlying investments backing the insurance policy of the Sponsor. Also there is a Guaranteed Surrender Value to the extent of 90% of contributions made net of withdrawals and charges.

(c) Liquidity Risk - The investments are made in an insurance policy which is also very liquid - withdrawals can happen at any time. There is no Market Value adjustment imposed for withdrawals done by the Sponsor at an untoward time except when the amount withdrawn exceeds 25% of the opening balance at the beginning of the financial year. This can be easily managed by making multiple withdrawals to ensure that the amount withdrawn per transaction does not breach the limit above. Also note that there are no surrender charges after three years. During the first three years also the surrender charges are minimal.

(d) Legislative Risk -There could be changes to Regulation/legislation governing this Plan that could affect the Company adversely (e.g. introduction of a minimum benefit). The changes in regulation could potentially increase the plan liabilities.

Notes:

1. The above disclosures are based on information certified by the independent actuary and relied upon by the Company.

2. The plan assets of the Company are managed by the Life Insurance Corporation of India in terms of insurance policies taken to fund the obligations of the Company with respect to its Gratuity and Compensated Absences Plan. Information on categories of plan assets is not available with the Company.

35.26 The fire and safety system under installation at a cost of ? 127.51 lakhs kept under capital work in progress, including the licence fee of ? 6.92 lakhs paid, as we were waiting for further inspection and NOC from Fire and Rescue Department, Kerala State, the same has been cleared by the department. The total cost of ? 127.51 has been capitalized during Aug''24.

35.27 Capital advance under Other Non-current Assets include ? 359.26 lakhs paid for purchase of an existing ice cream manufacturing facility in KINFRA park in Malappuram District to cater the northern districts of Kerala. The total consideration agreed for the purchase of the facility is ? 390 lakhs. As KINFRA is expected to announce a new Policy for transfer of existing industrial units, with considerable reduction in the fees for such transfers, the execution of the sale deed is kept pending.

The possession of the plant is already with the Company and the plant is presently used by the Company for manufacture of ice cream under sub-lease based on a tripartite agreement with the seller and KINFRA. As such the cost of building, plant and machinery agreed to be purchased is not capitalised and depreciation is not charged thereon and further lease charges has not been accounted for the land agreed to be purchased.

35.28 The Company purchased 24.20 acres of land at Chammanampathy in Palakkad District in the year 2021 for ? 723.76 lakhs, with a plan of setting up of a modern cattle feed plant and ice cream manufacturing facility. Accordingly, architects were engaged who had prepared master plan and building layout plan, incorporating all the expansion plans thereto and were

paid ? 36.58 lakhs for the same. Technical firms were also engaged for consultancy on setting up of an ice cream plant including assistance for securing government subsidy for the plant and they were made part payment of ? 19.24 lakhs as their professional fees. Subsequently the Board decided to reconsider their earlier decisions on the project and temporarily

suspended the whole project for the time being, since another external agency was engaged for a detailed study on the long term plans of the Company as a whole. Hence the amount of ? 55.82 lakhs already spent on this project has been charged to Profit and Loss Statement under Other Expenses during the previous year.

35.29 Other information

(a) The Company has not traded or invested in crypto currency or virtual currency during the year.

(b) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government

or any government authority.

(c) The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(d) The Company does not have any holding or subsidiary company.

(e) The Company does not have any transactions with companies struck off.

(f) The Company does not have any charges or satisfaction which is yet to be registered with ROC (Registrar of Companies)

beyond the statutory period.

(g) 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 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(h) 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 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(i) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year.

35.27 Figures of the previous year have been regrouped and recast wherever necessary to suit the current year''s layout.

---

Mar 31, 2018

Note 7.1. See Note 1.20 for method of valuation of inventories.

Note 7.2. Raw material include goods in transit amounting to Rs. 131.17 lakhs (previous year Nil).

Note 11.1 Balances with banks include restricted bank balances of Rs. 194.59 lakhs (Previous year Rs. 191.30 lakhs). The restrictions are primarily on account of bank balances held as margin money deposits against guarantees Rs. 4.86 lakhs (Previous year Rs. 4.60 lakhs) and earmarked bank balances for (1) unpaid dividends Rs. 94.73 lakhs (Previous year Rs. 105.70 lakhs) and (2) deposit repayment reserve account Rs. 95.00 lakhs (Previous year Rs. 81.00 lakhs).

Note 15.2 Terms/rights, Preferences and Restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend 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, except in the case of interim dividend, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of directors has recommended a final dividend of Rs. 60 per equity share of Rs. 10 each, subject to approval of shareholders at the ensuing annual general meeting.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 2013. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 15.4 There was no fresh issue or buying back of shares in the preceding five years.

Note 15.5 There was neither bonus issue nor any other issue of shares in the preceding five years.

Note 20.1 The cash credit facility is secured by (1) First Charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Konikkara Units; and (2) Equitable mortgage of immovable properties of Irinjalakuda and Konikkara Units by deposit of title deeds.

Note 20.2 See Note 17.2 for rate of interest and terms of repayment of public deposits.

Note 22.1 Public Deposits include deposits accepted from Directors Rs. 1.75 lakhs (Previous year Rs. 0.48 lakh) on the same terms and conditions as applicable to other depositors.

Note 22.2 Interest accrued but not due on public deposits includes Rs. 0.04 lakh (Previous year Rs. 0.16 lakh) due to Directors.

Note 22.3 See Note 17.2 for rate of interest and terms of repayment of public deposits.

1. ADDITIONAL INFORMATION

1.1 Fair Value Measurement

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

There were no transfers between Level 1 and Level 2 during the year.

Financial Risk Management - Objectives and Policies

The Company has a well-managed risk management framework, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as liquidity risk, market risk, credit risk and foreign currency risk) that may arise as a consequence of its business operations as well as its investing and financing activities.

Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within acceptable risk parameters in a disciplined and consistent manner and in compliance with applicable regulation.

1) Liquidity Risk

Liquidity risk is the risk that the Company will encounter due to difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The company has sound financial strength represented by its aggregate current assets including current investments as against aggregate current liabilities and its strong equity base. In such circumstances, liquidity risk is insignificant.

2) Market Risk

As the Company’s overall debt is less compared to its equity, the exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Company’s investments are predominantly held in fixed deposits and debt mutual funds. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility. The Company also invests in mutual fund under schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of most of the mutual fund schemes in which the Company has invested, such price risk is not significant.

3) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks and other receivables.

The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Company’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited because the counterparties are banks and recognized financial institutions with high credit ratings.

For trade receivables, as a practical expedient, the company is accepting advance from customers against sale of goods. Hence credit risk is negligible.

4) Foreign Currency Risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar) which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, are also subject to reinstatement risks.

The Company has established risk management policies to hedge the volatility arising from exchange rate fluctuations in respect of firm commitments and highly probable forecast transactions, through foreign exchange forward contracts. The proportion of forecast transactions that are to be hedged is decided based on the size of the forecast transaction and market conditions. As the counterparty for such transactions are highly rated banks, the risk of their non-performance is considered to be insignificant.

Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

The Company’s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern.

As at 31^st March, 2018, the Company has only one class of equity shares. The company is not subject to any externally imposed capital requirements.

1.2 First Time Adoption of Ind AS

These financial statements, for the year ended 31^st March 2018, are the first financial statements prepared by the company in accordance with Ind AS. For the periods upto and including the year ended 31^st March 2017, the company prepared its financial statements in accordance with Indian GAAP including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

Accordingly, the company has prepared financial statements which comply with Ind AS applicable for periods ending on or after 31^st March 2018, together with the comparative period data as at and for the year ended 31^st March 2017, as described in the summary of significant accounting policies. For the purpose of these financial statements, the opening balance sheet was prepared as at 1^st April 2016, the date of transition to Ind AS. The principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1^st April 2016 and the financial statements as at and for the year ended 31^st March 2017 has been explained in Note No. 33.3.

Exemptions applied:

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS and the following exemptions have been applied while preparing the financial statements complying with Ind AS:

a. Deemed cost for Property, plant and equipment and intangible assets

The Company has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognised as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

b. Determining whether an arrangement contains a lease

Appendix C of Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease, at the inception of the contract or arrangement. However, Company has used Ind AS 101 exemption and assessed all arrangements based for embedded leases based on conditions in place as at the date of transition.

c. Derecognition of financial assets and financial liabilities

Company has elected to apply the derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

d. Classification and measurement of financial assets

Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS

e. Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date.

3. Details of Measurement and recognition difference between Ind AS and Previous GAAP for the year ended 31^st March 2017

1) Fair Valuation of Investments

Under the previous GAAP investments in mutual funds 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 provision for other than the temporary decline in the value of such investments. Current investments 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 investments have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31^st March, 2017. This increased the retained earnings by Rs. 6.75 lakhs (net of deferred tax) as at 31^st March 2017 (1^st April 2016 by Rs.Nil)

2) Proposed dividend

Under Previous GAAP upto year ended 31^st March, 2016, proposed dividend including dividend distribution tax (DDT), are recognized as liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognized as liability in the period in which it is declared by Company, usually when approved by shareholders in a general meeting or paid.

Therefore, the dividend liability (proposed dividend) including dividend distribution tax liability amounting to Rs. 770.29 lakhs has been derecognised in the retained earnings as on the date of transition.

Proposed dividend including dividend distribution tax liability amounting to Rs. 770.29 lakhs which was derecognised as on the transition date, has been recognised in retained earnings during the year ended 31^st March, 2017 as declared and paid.

3) Remeasurement benefit of defined benefit plans

Under previous GAAP actuarial gains and losses on employees defined benefit obligations were recognised as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such remeasurement benefits relating to defined benefit plans is recognised in Other Comprehensive Income as per the requirements of Ind AS 19- Employee benefits. Consequently, the related tax effect of the same has also been recognised in Other Comprehensive Income.

For the year ended 31^st March, 2017, remeasurement of gratuity liability resulted in a net benefit of Rs. 135.55 lakhs which has now been removed from employee benefits expense in the Statement of Profit and Loss and recognised separately in Other Comprehensive Income. This has resulted in decrease in employee benefits expense by Rs. 135.55 lakhs and loss in Other Comprehensive Income by Rs. 135.55 lakhs for the year ended 31^st March, 2017. Consequently, tax effect of the same amounting to Rs. 46.91 lakhs is also recognised separately in Other Comprehensive Income.

The above changes do not affect Equity as at date of transition to Ind AS and as at 31^st March, 2017. However, Profit before tax and profit for the year ended 31^st March, 2017 decreased by Rs. 135.55 lakhs.

4) Deferred tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under previous GAAP

5) Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expenses that are not recognized in profit or loss, but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans and effective portion of cash flow hedge. The concept of other comprehensive income did not exist under the previous GAAP

6) Statement of cash flows

The transition from Previous GAAP to Ind AS has not had a material impact on the statement of cash flows.

Under Ind AS, bank overdrafts repayable on demand and which form an integral part of the cash management process are included in cash and cash equivalents for the purpose of presentation of statement of cash flows. However, the management is of the view that the Cash Credit facility availed from banks by the company is distinct from an overdraft facility and hence, they are continued to be shown as part of financing activities, as hitherto done under the previous GAAP

7) Other matters

In the preparation of these Ind-AS Financial Statements, Company has made several presentation differences between previous GAAP and Ind-AS. These differences have no material impact on reported profit or total equity. Accordingly, some assets and liabilities have been reclassified into another line item under Ind-AS at the date of transition. Further, in these Financial Statement, some line items as described differently under Ind-AS compared to previous GAAP although the assets and liabilities included in these line items are unaffected.

Details in respect of claims against the Company not acknowledged as debts disclosed above are as follows:

(i) Assistant Commissioner, Central Excise and Service Tax has issued Order demanding Central Excise Duty of Rs. 34,52,320 (including penalty of Rs. 3 lakhs) and interest as applicable, by disallowing exemption claimed on fatty acid from levy of Central Excise Duty from December, 2014 to October, 2016. Aggrieved by the Order Company has filed an appeal before the Commissioner (Appeals), Central Excise and Service Tax.

(ii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding Rs. 25,40,012 (including interest Rs. 12,63,624) for the financial year 2000-01 against sales tax exemption claimed on sale of refined vegetable oil. On appeal, The Deputy Commissioner (Appeals), Ernakulam had issued an order directing the assessing authority to reconsider the matter. The final order from the Assistant Commissioner (Assessment) is not yet received.

(iii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding Rs. 2,12,062 (including interest Rs. 96,181) for the financial year 2010-11 for the difference in the monthly purchase turnover uploaded to the website of Kerala Commercial Taxes. Aggrieved by the Order, Company has filed appeal before the Deputy Commissioner (Appeals), Department of Commercial Taxes, Thrissur.

(iv) Southern Railway had raised two demands aggregating to Rs. 57,10,829 on grounds of undercharge due to incorrect classification of deoiled rice bran. The claim has been challenged by the Company before the Hon. High Court of Kerala and the writ petition is still pending before the Court.

(v) (a) Some of the employees of the company had challenged the enhancement of wage limit for coverage of ESI, before the Hon. High Court of Kerala and the Court had granted stay. The cases were disposed off by the Court in favour of ESI Corporation and Company had remitted contributions of employer and employees.

Subsequently, ESI Corporation demanded interest amounting to Rs. 1,56,862 for delay in payment of contributions relating to the period when the above stay was in operation and Rs. 19,214 towards employees’ contribution in respect of retired/resigned employees during the said period. Company had preferred appeal before the ESI Court, Palakkad which was decided in favour of the Company. Aggrieved by the order, ESI Corporation had filed appeal before the Hon. High Court of Kerala challenging the orders of ESI Court, Palakkad, and the said appeal is still pending.

ESI Corporation had also demanded damages of Rs. 1,14,199 for the delay in remittance of contribution mentioned above and the Company had filed an appeal before the ESI Court, Palakkad which is still pending.

(b) ESI Corporation has issued order demanding Rs. 1,62,952 as interest and Rs. 60,080 as damages for delay in remittance of contribution on omitted wages for the period from 01.04.1996 to 31.03.2002. The Company remitted Rs. 75,000 towards this demand on the direction of the Court, while granting stay. The balance demand not paid is Rs. 1,48,032, and the case is still pending before ESI Court, Palakkad.

(vi) Kerala State Electricity Board (KSEB) had issued an order demanding Rs. 1,11,780 as charges for additional connected load in Konikkara Dairy Unit of the company relating to the period from November, 2001 to July, 2002. This order has been challenged by the company before the Hon. High Court of Kerala which is still pending.

In all the above cases company is legally advised that there is a good chance for full relief and hence no provision is considered necessary at this stage.

(xi) Note on actuarial risks

These plans typically expose the Company to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk and Salary Risk.

(a) Investment Risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

(b) Interest Risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

(c) Longevity Risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

(d) Salary Risk

The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Notes:

1. The above disclosures are based on information certified by the independent actuary and relied upon by the Company.

2. The plan assets of the Company are managed by the Life Insurance Corporation of India in terms of insurance policies taken to fund the obligations of the Company with respect to its Gratuity and Compensated Absences Plan. Information on categories of plan assets is not available with the Company.

3.1 Stores and spares consumed includes cost of materials used for repairs and maintenance.

3.2 In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

3.3 The Company is purchasing freezers and selling the same at concessional rate to distributors of ice cream. The cost of purchases and the sales value of the freezers are debited/credited to the Advertisement and Sales Promotion shown under Note 31 - Other Expenses.

3.4 Balance with Government Authorities under Note 14 includes Goods and Service Tax (GST) which in the opinion of the management is either refundable or eligible for set off against future GST liabilities.

3.5 The company has a system of periodically obtaining and reconciling confirmations of balances with banks, suppliers and customers.

3.6 Figures of the previous year have been regrouped and recast wherever necessary to suit the current year’s layout.

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Mar 31, 2016

Note 1. There was no fresh issue or buying back of shares in the preceding five years.

Note 2. There was neither bonus issue nor any other issue of shares in the preceding five years.

3. ADDITIONAL INFORMATION

4. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year’s layout.

5. In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

6. Details in respect of claims against the Company not acknowledged as debts disclosed under Note No. 29.3 are as follows:

(i) Commissioner of Customs, Cochin has issued Orders demanding Rs.47,05,015 for short levy of customs duty on import of Machinery for cattle feed plant and spare parts due to difference in classification under Customs Tariff Head. Aggrieved by the order, Company had filed an appeal before the Hon. Customs, Excise and Service Tax Appellate Tribunal, Bangalore and the appeal is pending.

(ii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding Rs.25,40,012 (including interest Rs.12,63,624) for the financial year 2000-01 against sales tax exemption claimed on sale of refined vegetable oil. On appeal, The Deputy Commissioner (Appeals), Ernakulam had issued an order directing the assessing authority to reconsider the matter. The final order from the Assistant Commissioner (Assessment) is not yet received.

(iii) Southern Railway had raised two demands aggregating to Rs.57,10,829 on grounds of undercharge due to incorrect classification of deoiled rice bran. The claim has been challenged by the Company before the Hon. High Court of Kerala and the writ petition is still pending before the Court.

(iv) (a) Some of the employees of the company had challenged the enhancement of wage limit for coverage of ESI, before the

Hon. High Court of Kerala and the Court had granted stay. The cases were disposed off by the Court in favour of ESI Corporation and Company had remitted contributions of employer and employees.

Subsequently, ESI Corporation demanded interest amounting to Rs.1,56,862 for delay in payment of contributions relating to the period when the above stay was in operation and Rs.19,214 towards employees’ contribution in respect of retired/resigned employees during the said period. Company had preferred appeal before the ESI Court, Palakkad which was decided in favour of the Company. Aggrieved by the order, ESI Corporation had filed appeal before the Hon. High Court of Kerala challenging the orders of ESI Court, Palakkad, and the said appeal is still pending.

ESI Corporation had also demanded damages of Rs.1,14,199 for the delay in remittance of contribution mentioned above and the Company had filed an appeal before the ESI Court, Palakkad which is still pending.

(b) ESI Corporation has issued order demanding Rs.1,62,952 as interest and Rs.60,080 as damages for delay in remittance of contribution on omitted wages for the period from 01.04.1996 to 31.03.2002. The Company remitted Rs.75,000 towards this demand on direction by the Court, while granting stay. The balance demand is Rs.1,48,032, and the case is still pending before ESI Court, Palakkad.

(v) Kerala State Electricity Board (KSEB) had issued an order demanding Rs.1,11,780 as charges for additional connected load in Konikkara Dairy Unit of the company relating to the period from November, 2001 to July, 2002. This order has been challenged by the company before the Hon. High Court of Kerala which is still pending.

In all the above cases company is legally advised that there is a good chance for full relief and hence no provision is considered necessary at this stage.

7. The landed property of the company located at Mysore with an area of around 4 acres 10 cents was sold during the financial year 2014-15 for a total sale consideration of Rs.1,350 lakhs. Profit on the sale of the property earned by the Company amounting to Rs.1,045.71 lakhs has been shown in the Statement of profit and loss as Exceptional item in that year.

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Mar 31, 2015

1. Reconciliation of the number of equity shares outstanding at the beginning and at the end of the year

Outstanding at the beginning of the year

Add : Issued during the year

Outstanding at the end of the year

2. Terms/rights, Preferences and Restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend 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, except in the case of interim dividend, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of directors declared two interim dividends of Rs. 10 per share and Rs. 20 per share on equity share of Rs. 10 each at their meetings held on 12th February, 2015 and 25th March, 2015 respectively. Further, the Board of Directors at its meeting held on 30th May, 2015 has recommended a final dividend of Rs. 20 per equity share of Rs. 10 each, subject to approval of shareholders at the ensuing annual general meeting. The total dividend appropriation for the year ended 31st March, 2015 amounts to Rs. 1922.23 lakhs, including dividend distribution tax of Rs. 322.23 lakhs.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 2013. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. There was no fresh issue or buying back of shares in the preceding five years.

4. There was neither bonus issue nor any other issue of shares in the preceding five years.

5. The Board of directors declared two interim dividends of Rs. 10 per share and Rs. 20 per share on equity share of Rs. 10 each. Further, the Board of Directors has recommended a final dividend of Rs. 20 per equity share of Rs.10 each.

6. See Note 9 for current maturities of long-term debt.

7. Public Deposits include deposits accepted from Directors Rs. 1.48 lakhs (Previous year Rs. 3.96 lakhs) on the same terms and conditions as applicable to other depositors.

8. The cash credit and short term loans are secured by (1) First Charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Konikkara Units; and (2) Equitable mortgage of immovable properties of Irinjalakuda and Konikkara Units by deposit of title deeds.

9. See Note 4.2 for rate of interest and terms of repayment of public deposits.

10. The amount due to Micro, Small and Medium Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro, Small and Medium Enterprises are as under:

As at As at 31.03.2015 31.03.2014 Rs. in lakhs Rs. in lakhs

(i) Principal amount due and remaining — — unpaid to any supplier as at the end of each accounting year

(ii) Interest due on the above and — — remaining unpaid to any supplier as at the end of each accounting year

(iii) Interest paid by the company along — — with the amounts of the payment made to the supplier beyond the appointed day during each accounting year

(iv) Interest due and payable for the — — period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Act

(v) Interest accrued and remaining — — unpaid at the end of each accounting year

(vi) Interest remaining due and payable — — even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprises

11. Public Deposits include deposits accepted from Directors Rs. 2.96 lakhs (Previous year Rs. 5.10 lakhs) on the same terms and conditions as applicable to other depositors.

12. Interest accrued but not due on public deposits includes Rs. 0.37 lakh (Previous year Rs. 0.30 lakh) due to Directors.

13. See Note 4.2 for rate of interest and terms of repayment of public deposits.

14. Unpaid dividend includes second interim dividend of Rs. 20 per equity share amounting to Rs. 640 lakhs declared by the Board of Directors on 25th March, 2015 and not distributed as on 31st March, 2015.

15. Balance with banks include restricted bank balances of Rs. 832.14 lakhs (Previous year Rs. 87.44 lakhs) and time deposit with banks with a maturity of more than 12 months Rs. 0.02 lakh (Previous year Rs. 0.02 lakh). The restrictions are primarily on account of bank balances held as margin money deposits against guarantees Rs. 7.96 lakhs (Previous year Rs. 7.51 lakhs) and earmarked bank balances for (1) unpaid dividends Rs. 714.18 lakhs (Previous year Rs. 39.93 lakhs) and (2) deposit repayment reserve account Rs. 110.00 lakhs (Previous year Rs. 40 lakhs).

16. Interest Expenses on Public Deposits include Rs. 0.78 lakh (Previous year Rs. 0.95 lakh) being interest paid on deposits accepted from Directors.

17. ADDITIONAL INFORMATION

18. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year’s layout.

19. In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

20. Contingent liabilities and commitments (to the extent not provided for in the accounts)

2014-15 Rs. in lakhs

I. Contingent Liabilities

a) Claims against the Company not acknowledged as debts (See Note 29.4):

(i) Customs Duty 47.05

(ii) Kerala General Sales Tax 25.40

(iii) Freight/demurrage demanded 57.11 by Indian Railways (iv) ESI 4.38

(v) Electricity 1.12

b) Bank guarantees in favour of KSEB 42.70

c) Other money for which the Company is contingently liable — 177.76

II. Commitments

(a) Estimated amount of contracts remaining to be executed on capital account not provided for 2.33

(b) Uncalled liability on shares and other investments partly paid —

(c) Letter of credit for import of raw materials 728.96 731.29

TOTAL 909.05

2013-14 Rs. in lakhs

I. Contingent Liabilities

a) Claims against the Company not acknowledged as debts (See Note 29.4):

(i) Customs Duty 47.05

(ii) Kerala General Sales Tax 25.40

(iii) Freight/demurrage demanded 57.11 by Indian Railways (iv) ESI 4.38

(v) Electricity 1.12

b) Bank guarantees in favour of KSEB 38.28

c) Other money for which the Company is contingently liable — 173.34

II. Commitments

(a) Estimated amount of contracts remaining to be executed on capital account not provided for 2.95

(b) Uncalled liability on shares and other investments partly paid —

(c) Letter of credit for import of raw materials 1,036.64 1,039.59

TOTAL 1,212.93

21. Details in respect of claims against the Company not acknowledged as debts disclosed under Note No. 29.3 are as follows:

(i) Commissioner of Customs, Cochin has issued Orders demanding Rs. 47,05,015 for short levy of customs duty on import of Machinery for cattle feed plant and spare parts due to difference in classification under Customs Tariff Head. Aggrieved by the order, Company had filed an appeal before the Hon. Customs, Excise and Service Tax Appellate Tribunal, Bangalore and the appeal is pending.

(ii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding Rs. 25,40,012 (including interest Rs. 12,63,624) for the financial year 2000-01 against sales tax exemption claimed on sale of refined vegetable oil. On appeal, The Deputy Commissioner (Appeals), Ernakulam had issued an order directing the assessing authority to reconsider the matter. The final order from the Assistant Commissioner (Assessment) is not yet received.

(iii) Southern Railway had raised two demands aggregating to Rs. 57,10,829 on grounds of undercharge due to incorrect classification of deoiled rice bran. The claim has been challenged by the Company before the Hon. High Court of Kerala and the writ petition is still pending before the Court.

(iv) (a) Some of the employees of the company had challenged the enhancement of wage limit for coverage of ESI, before the

Hon. High Court of Kerala and the Court had granted stay. The cases were disposed off by the Court in favour of ESI Corporation and Company had remitted contributions of employer and employees.

Subsequently, ESI Corporation demanded interest amounting to Rs. 1,56,862 for delay in payment of contributions relating to the period when the above stay was in operation and Rs. 19,214 towards employees’ contribution in respect of retired/resigned employees during the said period. Company had preferred appeal before the ESI Court, Palakkad which was decided in favour of the Company. Aggrieved by the order, ESI Corporation had filed appeal before the Hon. High Court of Kerala challenging the orders of ESI Court, Palakkad, and the said appeal is still pending.

ESI Corporation had also demanded damages of Rs. 1,14,199 for the delay in remittance of contribution mentioned above and the Company had filed an appeal before the ESI Court, Palakkad which is still pending.

(b) ESI Corporation has issued order demanding Rs. 1,62,952 as interest and Rs. 60,080 as damages for delay in remittance of contribution on omitted wages for the period from 01.04.1996 to 31.03.2002. The Company remitted Rs. 75,000 towards this demand on direction by the Court, while granting stay. The balance demand is Rs. 1,48,032, and the case is still pending before ESI Court, Palakkad.

(v) Kerala State Electricity Board (KSEB) had issued order demanding Rs. 1,11,780 for additional connected load in Konikkara Dairy Unit of the company relating to the period from November, 2001 to July, 2002. This demand has been challenged by the company before the Hon. High Court of Kerala which is still pending.

In all the above cases company is legally advised that there is a good chance for full relief and hence no provision is considered necessary at this stage.

22. The landed property of the company located at Mysore with an area of around 4 acres 10 cents was sold during the financial year 2014-15 for a total sale consideration of Rs. 1,350 lakhs. Profit on the sale of the property earned by the Company amounting to Rs. 1,045.71 lakhs has been shown in the Statement of profit and loss as Exceptional item.

1. The above disclosures are based on information certified by the independent actuary and relied upon.

2. The plan assets of the Company are managed by the Life Insurance Corporation of India in terms of insurance policies taken to fund the obligations of the Company with respect to its Gratuity and Compensated Absences Plan. Information on categories of plan assets is not available with the Company.

4. No amount has been provided/written off as doubtful debts or advances written back in respect of payables due from or to any of the above related parties.

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Mar 31, 2014

Note 1. Terms/rights, Preferences and Restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend 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, except in the case of interim dividend, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of Directors at its meeting held on 29th May, 2014 has recommended a final dividend of Rs. 20 (Rupees Twenty only) per equity share of Rs. 10 each, subject to approval of shareholders at the ensuing annual general meeting. The total dividend appropriation for the year ended 31st March, 2014 amounts to Rs. 748.77 lakhs, including dividend distribution tax of Rs. 108.77 lakhs.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaing assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 1956. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 2. There was no fresh issue or buying back of shares in the preceding five years.

Note 3. There was neither bonus issue nor any other issue of shares in the preceding five years.

Note 4. Final dividend of Rs. 20 per share proposed by Board is subject to approval of shareholders in the ensuing annual general meeting.

Note 5. See Note 9 for current maturities of long-term debt.

Note 6. Public Deposits include deposits accepted from Directors Rs. 3.96 lakhs (Previous year Rs. 7.31 lakhs) on the same terms and conditions as applicable to other depositors.

Note 7. See Note 4.2 for rate of interest and terms of repayment of public deposits.

Note 8. Term Loan from ICICI Bank Ltd. is secured by (1) Equitable mortgage of all immovable properties of Irinjalakuda, Swaminathapuram and Konikkara Units by deposit of title deeds; and (2) First charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Swaminathapuram Units.

Note 9. Public Deposits include deposits accepted from Directors Rs. 5.10 lakhs (Previous year Rs. Nil) on the same terms and conditions as applicable to other depositors.

Note 10. Interest accrued but not due on public deposits includes Rs. 0.30 lakh (Previous year Rs. 0.12 lakh) due to Directors.

Note 11. See Note 4.2 for rate of interest and terms of repayment of public deposits.

Note 12. Balance with banks include restricted bank balances of Rs. 47.44 lakhs (Previous year Rs. 49.88 lakhs) and time deposit with banks with a maturity of more than 12 months Rs. 0.02 lakh (Previous year Rs. 0.02 lakh). The restrictions are primarily on account of bank balances held as margin money deposits against guarantees Rs. 7.51 lakhs (Previous year Rs. 13.57 lakhs) and earmarked balances for unpaid dividends Rs. 39.93 lakhs (Previous year Rs. 36.31 lakhs).

Note 13.: Interest Expenses on Public Deposits include Rs. 0.95 lakh (Previous year Rs. 0.80 lakh) being interest paid on deposits accepted from Directors.

14. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year''s layout.

15. In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

16. Contingent liabilities and commitments (to the extent not provided for in the accounts)

2013-14 2012-13 Rs. in lakhs Rs. in lakhs

I. Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

(i) Customs Duty 47.05 47.05

(ii) Kerala General Sales Tax 25.40 25.40

(iii)Freight/demurrage demanded by Indian Railways 56.26 87.72

(iv) ESI & EPF 3.57 4.34

(v) Electricity 1.12 1.12

b) Bank guarantees in favour of KSEB 38.28 20.40

c) Other money for which the Company is contingently liable - 171.68 - 186.03

II. Commitments

(a)Estimated amount of contracts remaining to be executed on capital account not provided for 2.95 0.41

(b)Uncalled liability on shares and other investments partly paid - -

(c)Letter of credit for import of raw materials 1,036.64 1,039.59 - 0.41

TOTAL 1,211.27 186.44

Notes : a) Unallocated assets include non-current investments Rs. 7.50 lakhs ( Rs. 7.50 lakhs) and cash and bank balances Rs. 314.41 lakhs (Rs. 375.78 lakhs).

b) Unallocated liabilities include deferred tax Rs. 155.32 lakhs (Rs. 170.29 lakhs), long-term borrowings Rs. 649.25 lakhs ( Rs. 688.30 lakhs), short-term borrowings Rs. 728.90 lakhs (Rs. 1,945.59 lakhs), provision for taxation (net of advance) Rs. 29.03 lakhs (Rs. 47.26 lakhs) and provision for proposed dividend and dividend distribution tax Rs. 748.77 lakhs (Rs. 374.38 lakhs).

c) Figures in brackets denote the corresponding figures for the previous year.

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Mar 31, 2013

Note 1.1 Terms/rights, Preferences and Restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend 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, except in the case of interim dividend, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of Directors at its meeting held on 29th May, 2013 has recommended a final dividend of Rs. 10 (Rupees Ten only) per equity share of Rs. 10 each, subject to approval of shareholders at the ensuing annual general meeting. The total dividend appropriation for the year ended 31st March, 2013 amounts to Rs. 374.38 lakhs, including dividend distribution tax of Rs. 54.38 lakhs.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaing assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 1956. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 1.2 There was no fresh issue or buying back of shares in the preceding five years.

Note 1.3 There was neither bonus issue nor any other issue of shares in the preceding five years.

Note 2.1 See Note 9 for current maturities of long-term debt.

Note 2.2 Term Loan from ICICI Bank Ltd. is secured by (1) Equitable mortgage of all immovable properties of Irinjalakuda, Swaminathapuram and Konikkara Units by deposit of title deeds; and (2) First charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Swaminathapuram Units.

Note 2.3 Public Deposits include deposits accepted from Directors Rs. 7.31 lakhs (Previous year Rs. 5.10 lakhs) on the same terms and conditions as applicable to other depositors.

Note 3.1 Term Loan from ICICI Bank Ltd. is secured by (1) Equitable mortgage of all immovable properties of Irinjalakuda, Swaminathapuram and Konikkara Units by deposit of title deeds; and (2) First charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Swaminathapuram Units.

Note 3.2 Public Deposits include deposits accepted from Directors Rs. Nil (Previous year Rs. 1.00 lakh) on the same terms and conditions as applicable to other depositors.

Note 3.3 Interest accrued but not due on public deposits includes Rs. 0.12 lakh (Previous year Rs. 0.07 lakh) due to Directors.

Note 3.4 See Note 4.3 for rate of interest and terms of repayment of public deposits.

4.1 Related Party Disclosure

a) Key management personnel

Mr. M.C. Paul - Chairman and Managing Director

Mr. P.K. Varghese - Executive Director

b) Enterprises over which key management personnel and their relatives are able to exercise significant influence having transactions with the Company

M/s. Emceepee Traders; M.C. Paul & Sons; MCP Rose Super Market Pvt. Ltd.; Emceepee Agencies; Surya Agencies; and Pokkath Auto Fuels.

c) Relatives of Key Management Personnel having transactions with the Company

Mrs. Annie Paul; Mrs. Pushpam Bright; Dr. Francis Alappat; Mrs. Usha Francis; Dr. James Chettupuzhakkaran; Mr. Bellraj Eapen; Mrs. Binu Fiju; Mrs. Anu Viju; Mrs. Megha Ann Tomy; Mrs. Mariamma Francis; Mrs. Seema Suresh; Mrs. Sawmiya Varghese and Mrs. Alpho Varghese.

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Mar 31, 2012

Note 1.1: Gratuity Reserve represents amount set apart in earlier years towards gross (undiscounted) gratuity liability of all the eligible employees as reduced by the amount available with the Employees Group Gratuity Fund Trust of the Company constituted under the Group Gratuity cum Assurance Scheme of the Life Insurance Corporation of India, including interest accrued thereon. Excess Gratuity Reserve as at the year-end over such liability, if any, is retained therein.

Note 1.2: Final dividend of Rs. 11 per share (Previous year Rs. 10 per share) proposed by Board is subject to approval of shareholders in the ensuing annual general meeting.

Note 2.1 :Balance with banks include restricted bank balances of Rs 46.01 lakhs (Previous year Rs 43.45 lakhs) and time deposit with banks with a maturity of more than 12 months Rs 0.02 lakh (Previous year Rs 0.02 lakh). The restrictions are primarily on account of bank balances held as margin money deposits against guarantees Rs 12.81 lakhs (Previous year Rs 12.81 lakhs) and earmarked balances for unpaid dividends Rs 33.20 lakhs (Previous year Rs 30.64 lakhs).

Note 3.1: Interest Expenses on Public Deposits include Rs 0.65 lakh (Previous year Rs 0.51 lakh) being interest paid on deposits accepted from Directors.

4. ADDITIONAL INFORMATION

4.1 Till the year ended 31st March, 2011, the Financial Statements of the Company were prepared and presented as per old Schedule VI to the Companies Act, 1956. The Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company from the year under report. The Company has reclassified and regrouped previous year figures to conform to the classification as per the Revised Schedule VI.

4.2 In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

4.3 Contingent liabilities and commitments (to the extent not provided for in the accounts)

Current Year Previous Year Rs in lakhs Rs in lakhs

I. Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

(i) Customs Duty 47.05 47.05

(ii) Kerala General Sales Tax 25.40 25.40

(iii) Freight/demurrage demanded by Indian Railways 87.72 82.42

(iv) ESI 3.57 3.57

(v) Electricity 1.33 1.33

b) Bank guarantees in favour of KSEB 12.81 12.81

c) Other money for which the Company is contingently liable - 177.88 - 172.58

II. Commitments

(a) Estimated amount of contracts remaining to be executed on capital account not provided for 29.63 40.58

(b) Uncalled liability on shares and other investments partly paid - -

(c) Letter of credit for import of raw materials / capital goods - 29.63 640.28 680.86

TOTAL 207.51 853.44

Notes : a) Unallocated assets include capital work in progress and intangible assets under development Rs 70.88 lakhs ( Rs 96.37 lakhs), non-current investments Rs 7.50 lakhs ( Rs 7.50 lakhs) and cash and bank balances Rs 583.33 lakhs (Rs 348.07 lakhs).

b) Unallocated liabilities include deferred tax Rs 182.54 lakhs (Rs 205.02 lakhs), long-term borrowings Rs 717.37 lakhs ( Rs 935.82 lakhs), short-term borrowings Rs 1,763.56 lakhs (Rs 1,447.80 lakhs), provision for taxation (net of advance) Rs 74.67 lakhs (Rs 20.60 lakhs) and provision for proposed dividend and corporate dividend tax Rs 409.10 lakhs (Rs 371.91 lakhs).

c) Figures in brackets denote the corresponding figures for the previous year.

b) Enterprises over which key management personnel and their relatives are able to exercise significant influence having transactions with the Company

M/s. Emceepee Traders; M.C. Paul & Sons; MCP Rose Super Market Pvt. Ltd.; Emceepee Agencies; Surya Agencies; and Pokkath Auto Fuels.

c) Relatives of Key Management Personnel having transactions with the Company

Mrs. Annie Paul; Mrs. Pushpam Bright; Dr. Francis Alappat; Mrs. Usha Francis; Dr. James Chettupuzhakkaran; Mr. Bellraj Eapen; Mrs. Binu Ann; Mrs. Anu Maria; Mrs. Megha Ann Tomy; Dr. Fiju Chacko; Mrs. Mariamma Francis; Mrs. Seema Suresh and Sawmiya Varghese.

e) No amount has been provided / written off as doubtful debts or advances written back in respect of payables due from or to any of the above related parties.

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Mar 31, 2011

1. Gratuity Reserve under Reserves & Surplus represents amount set apart towards gross (undiscounted) gratuity liability of all the eligible employees as reduced by the amount available with the Employees Group Gratuity Fund Trust of the Company constituted under the Group Gratuity cum Assurance Scheme of the Life Insurance Corporation of India, including interest accrued thereon . Excess Gratuity Reserve as at the year-end over such liability, if any, is retained therein. The contribution made to the Trust is charged to Profit and Loss Account as mentioned in Note No. (A) (xi).

2. In the opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

3. Secured loans include loans repayable within one year - Rs. 10,84,97,210 (Previous Year Rs. 16,72,50,763).

4. Contingent Liabilities not provided for in the accounts

Current Year Previous Year Rs. Rs.

a) Claims against the Company not acknowledged as debts:

(i) Customs Duty 47,05,015 47,05,015

(ii) Kerala General Sales Tax 25,40,012 25,40,012

(iii) Freight/demurrage demanded by Indian Railways 82,42,304 75,95,504

(iv) ESI 3,57,085 2,90,275

(v) Electricity 1,33,288 9,59,822

b) Estimated amount of contracts remaining to be executed on capital account not provided for 40,58,395 85,97,965

c) (i) Letter of credit for import of raw materials / capital goods 6,40,28,100 1,53,68,000

(ii) Bank Guarantees 12,81,430 8,72,985

5. Rates and Taxes under Manufacturing, Administrative, Selling and Other Expenses (Schedule 12) include Rs. 50,09,289 in respect of sales tax demands (including interest Rs. 5,51,447) for the financial years 2001-02 and 2004-05 remitted under Amnesty Scheme of the Government of Kerala. The demand arose as a result of rejection of sales tax exemption claimed by the Company and the matter is on appeal.

6. Fixed Deposits grouped under Unsecured Loans include deposits due to Directors Rs. 4,77,000 (Previous year Rs. 4,69,000), the Interest accrued but not due on deposits grouped under Current Liabilities include interest accrued on the deposits accepted from Directors Rs. 4,331 (Previous year Rs. 3,992) and Interest and Finance Charges include Rs. 51,403 (Previous year Rs. 49,063) being interest paid on deposits accepted from Directors. The said deposits were accepted under the Companies (Acceptance of Deposits) Rules, 1975 on the same terms and conditions as applicable to other depositors.

7. Steps have been taken to identify the suppliers who qualify under the definition of micro and small enterprises, as defned under the Micro, Small and Medium Enterprises Development Act 2006. Since no intimation has been received from the suppliers regarding their status under the said Act as at 31st March 2011, disclosures relating to amounts unpaid as at the year end, if any, have not been furnished. In the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act, is not expected to be material.

8. Related Party Disclosure

a) Key management personnel

Mr. M.C. Paul - Chairman and Managing Director

Mr. P.K. Varghese - Executive Director

b) Enterprises over which key management personnel and their relatives are able to exercise significant influence having transactions with the Company

M/s. Emceepee Traders; M.C. Paul & Sons; MCP Rose Super Market Pvt. Ltd.; Emceepee Agencies; Surya Agencies; Supreme Traders and Pokkath Auto Fuels.

c) Relatives of Key Management Personnel having transactions with the Company

Mrs. Annie Paul; Mrs. Pushpam Bright; Dr. Francis Alappat; Mrs. Usha Francis; Dr. James Chettupuzhakkaran; Mr. Bellraj Eapen; Mrs. Binu Ann; Mrs. Anu Maria; Mrs. Megha Ann Tomy; Mrs. Anu V. Koithara and Mrs. Mariamma Francis.

e) No amount has been provided / written off as doubtful debts or advances written back in respect of payables due from or to any of the above related parties.

9. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year's layout. Figures in brackets denote the corresponding figures for the previous year.

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Mar 31, 2010

1. Gratuity Reserve under Reserves & Surplus represents amount set apart towards gross (undiscounted) gratuity liability of all the eligible employees as reduced by the amount available with the Employees Group Gratuity Fund Trust of the Company constituted under the Group Gratuity cum Assurance Scheme of the Life Insurance Corporation of India, including interest accrued thereon . Excess Gratuity Reserve as at the year end over such liability, if any, is retained therein. The contribution made to the Trust is charged to Proft and Loss Account as mentioned in Note No. (A) (vii) and (B) (b) above.

2. In the opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

3. Secured loans include loans repayable within one year - Rs. 16,72,50,763 (Previous Year Rs. 18,38,19,292).

4. Contingent Liabilities not provided for in the accounts Current Year Previous Year Rs. Rs. a) Claims against the Company not acknowledged as debts: (i) Electricity / ESI demands disputed by the Company 12,50,097 10,51,325 (ii) Demands by Indian Railways towards freight/demurrage disputed by the Company 75,95,504 56,26,704 b) Estimated amount of contracts remaining to be executed on capital account not provided for 85,97,965 1,05,00,653 c) (i) Letter of credit for import of raw materials/capital goods 1,53,68,000 5,84,80,274

(ii) Bank Guarantees 8,72,985 8,72,985

8. Disclosures required under Accounting Standard 15 “Employee Benefts” (Revised 2005)

I. Defned Contribution Plans

During the year the following amounts have been recognised in the proft and loss account on account of defned contribution plans:

11. Expenses incurred towards setting up of a 500 TPD new cattle feed plant at Irinjalakuda up to 14.07.2009, the date on which it was commissioned and towards setting up of an ice cream plant at Vedagiri upto 31.03.2010 included under pre-operative expenses under capital work-in-progress have been itemised as per Schedule VI Part II of the Companies Act, 1956 as under:

5. Fixed Deposits grouped under Unsecured Loans include deposits due to Directors Rs. 4,69,000 (Previous year Rs. 4,55,000), the Interest accrued but not due on deposits grouped under Current Liabilities include interest accrued on the deposits accepted from Directors Rs. 3,992 (Previous year Rs. 10,007) and Interest and Finance Charges include Rs. 49,063 (Previous year Rs.42,718) being interest paid on Deposits accepted from Directors. The said Deposits were accepted under the Companies (Acceptance of Deposits) Rules, 1975 on the same terms and conditions as applicable to other depositors.

6. Steps have been taken to identify the suppliers who qualify under the defnition of micro and small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act 2006. Since no intimation has been received from the suppliers regarding their status under the said Act as at 31st March 2010, disclosures relating to amounts unpaid as at the year end, if any, have not been furnished. In the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act, is not expected to be material.

7. Related Party Disclosure

a) Key management personnel

Mr. M.C. Paul - Chairman and Managing Director Mr. P.K. Varghese - Executive Director

b) Enterprises over which key management personnel and their relatives are able to exercise signifcant infuence having transactions with the Company

M/s. Emceepee Traders; M.C. Paul & Sons; MCP Agro Technologies Pvt. Ltd.; MCP Rose Super Market Pvt. Ltd.; M.P. Jackson & Bros.; Emceepee Agencies; Surya Agencies and Supreme Traders.

c) Relatives of Key Management Personnel having transactions with the Company

Mrs. Annie Paul; Mrs. Pushpam Bright; Dr. Francis Alappat; Mrs. Usha Francis; Dr. James Chettupuzhakkaran; Mr. Bellraj Eapen; Mrs. Binu Ann; Mrs. Anu Maria; Mrs. Megha Ann Tomy; Mrs. Anu V. Koithara and Mrs. Mariamma Francis.

8. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year’s layout.