Notes to Accounts of Sri Ramakrishna Mills (Coimbatore) Ltd.

Mar 31, 2025

o) Provisions, contingent liabilities and contingent asset
Provisions

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

Provisions are discounted, if the effect of the time value of money is material, using pre-tax rates that reflects the risks specific to the liability. When discounting is used,
an increase in the provisions due to the passage of time is recognised as finance cost. These provisions are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.

Necessary provision for doubtful debts, claims, etc., are made, if realisation of money is doubtful in the judgement of the management.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain
future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.
Contingent liabilities are disclosed separately.

Show cause notices issued by various Government authorities are considered for evaluation of contingent liabilities only when converted into demand.

Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of the nature of the contingent assets at the end of the reporting period,
and, where practicable, an estimate of their financial effect.

Contingent assets are disclosed but not recognised in the financial statements.

p) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances with original maturity of less than 3 months, highly liquid
investments that are readily convertible into cash, which are subject to insignificant risk of changes in value.

q) Cash Flow Statement

Cash flows are presented using indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals
of past or future cash receipts or payments.

Bank borrowings are generally considered to be financing activities. However, where bank overdrafts which are repayable on demand form an integral part of an entity’s
cash management, bank overdrafts are included as a component of cash and cash equivalents for the purpose of Cash flow statement.

r) Earnings per share

The basic earnings per share are computed by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period.

Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential 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 for bonus shares, as appropriate.

s) Events after the reporting period

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial statements are adjusted for such
events before authorization for issue. Non adjusting events are events that are indicative of conditions that arose after the end of the reporting period. Non-adjusting
events after the reporting date are not accounted, but disclosed.

(c) Rights, preferences and restrictions in respect of equity shares issued by the Company

The Company has only one class of equity shares having a par value of Rs.10 per share. Each Share holder is eligible for one vote per share. In the event of liquidation the
equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion of their share holding.

(d) For the years ended 31st March 2025 and 31st March 2024

i) There are no equity shares of the Company held by a holding company, or ultimate holding company or by subsidiaries or associates of the holding company or the
ultimate holding company.

ii) There are no shares reserved for issue under options and contracts/ commitments for the sale of shares or divestment.

iii) There are no securities issued convertible into equity shares.

iv) There are no calls unpaid and further there are no forfeited shares to report.

(e) For the period of five years immediately preceeding 31st March 2025 and 31st March 2024

i) There are no equity shares allotted as fully paid up pursuant to contract without payment being received in cash.

ii) There are no equity shares allotted as fully paid up by way of bonus shares by capitalisation of securities premium.

iii) There are no equity shares bought back.

44 Lease

Company as a lessee

a. Operating leases

The Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months and leases for which the underlying asset is of low
value or short term in nature, on a lease-by-lease basis.

b. Finance Lease

Before introduction of Ind AS 116, leases under which company assumed substantially all the risks and rewards of ownership are classified as finance leases. Such assets
are classfied at fair value or present value of minimum lease payments at the inception of the lease, whichever is lower. After introduction of Ind AS 116, there is no
change in the accounting treatment of such leases previously considered as Finance leases. The Company didnot have any such Financial Leases to report.

Operating Lease Expenses

Rental expense recorded for short-term leases was Rs.12.30 Lakhs for the year ended March 31, 2025. (Previous year Rs. 6.86 lakhs)

Expenses relating to variable lease payments not included in lease liabilities for the year ended March 31, 2025 is Rs. Nil (Previous year Rs. Nil)

Gains or losses from sale and leaseback transactions for the year ended March 31, 2025 is Rs. Nil (Previous year Rs. Nil)

The Company did not have any other operating Lease Expenditure other than Rental Expense recorded as short-term leases. Therefore disclosures relating to the Right of
use Asset, Amount of Amortization of such Right of use Asset, Discount Rate used for calculation of Present value of Minimum Lease Payment, Interest expenditure on lease
liabilities (included in Finance cost) , income from remeasurement of lease(s), income from sub-lease right of use assets,Classification of current and non-current financial
liability, movement in lease liabilities on such Operating Leases where the Company is a lessee is not applicable.

R lti iro Minimi lm loaco ront Ko i->aiH'' T _1,U

47 a. Disclosure on Impairment of Assets (Ind AS 36)

For the Year ended 31 March 2025 and 31 March 2024:

(a) There were no impairment losses recognised in the statement of profit or loss.

(b) There were no reversals of impairment losses recognised in the statement of profit or loss.

(c) There were no impairment losses on revalued assets recognised in statement of other comprehensive income.

(d) There were no reversals of impairment losses on revalued assets recognised in statement of other comprehensive income.

b. Other Disclosures

For the year ended 31 March 2025 and 31 March 2024, there are no transactions and disclosures to be made in respect of the following:

Ind AS- 102- Share based payment, Ind AS- 103- Business Combinations, Ind AS- 117- Insurance Contracts, Ind AS- 105 Non-Current Assets held for Sale and
Discontinued Operations, Ind AS- 106- Exploration for and evaluation of Mineral Resources, Ind AS- 110- Consolidated Financial Statements, Ind AS-111- Joint
Arrangements, Ind AS-112- Disclosure of Interest in other entities, Ind AS- 114- Regulatory Deferral Accounts, Ind AS- 20- Accounting for Government Grants and
Disclosure of Government assistance, Ind AS-27- Separate Financial Statement, Ind AS- 28- Investment in Associates and Joint Ventures, Ind AS-29- Financial reporting
in Hyperinflationary Economies, Ind AS-40 - Investment Property and Ind AS-41- Agriculture.

Foreign currency sensitivity analysis

In management’s opinion, the sensitivity analysis is not applicable as the Company is not exposed to any Direct Foreign Exchange Risk and hence not reported.

Interest rate risk management

The Company is exposed to interest rate risk because it borrow funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an
appropriate mix between fixed and floating rate borrowings.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting
period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole
year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the
reasonably possible change in interest rates.

The 25 basis point interest rate changes will impact the profitability by INR 9.72 Lakhs for the year (Previous INR 8.35 Lakhs)

Credit risk management

Credit risk arises when a customer or counterparty does not meet its obligations under a customer contract or financial instrument, leading to a financial loss. The Company
is exposed to credit risk from its operating activities primarily trade receivables.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is the total of the carrying amount of balances with banks, short
term deposits with banks, trade/contract receivables, margin money and other financial assets excluding equity investments.

(a) Trade Receivables

In respect of Trade/Contract receivables, the Company has credit evaluation policy for each customer and, based on the evaluation, credit limit of each customer is
defined. Wherever possible and as per customary business practice,if the Company assesses the credit risk as high, the exposure is backed by either bank, guarantee
letter of credit or security deposits.

As per simplified approach, wherever applicable, the Company makes provision of expected credit losses on trade/contract receivables using a provision matrix to mitigate
the risk of default in payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

(b) Investments, Derivative Instruments, Cash and Cash Equivalents and Bank deposits

Credit Risk on cash and cash equivalents, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial
institutions, who have been assigned high credit rating by international and domestic rating agencies. Investments of surplus funds are made only with approved financial
institutions/counterparty. The Company has standard operating procedures and investment policy for deployment of surplus liability, which allows investment in debt
securities and mutual fund schemes of debt and arbitrage categories and restricts the exposure in equity markets.

Offsetting related disclosures

Offsetting of cash and cash equivalents to borrowings as per the consortium agreement is available only to the bank in the event of a default. Company does not have the
right to offset in case of the counter party’s bankruptcy, therefore, these disclosures are not required.

Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure
that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed deposit and mutual funds, which carry minimal mark to market risks.
The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

Liquidity tables

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn
up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay.

49 DISCLOSUES PURSUANT TO IND AS-113
Fair Valuation techniques :

Ind AS 113 specifies following valuation techniques to measure fair values:

(i) Market Approach

The market approach uses prices and other relevant information generated by market transactions involving identical or comparable (i.e. similar) assets, liabilities or a
group of assets and liabilities, such as a business.

For example, valuation techniques consistent with the market approach often use market multiples derived from a set of comparables. Multiples might be in ranges with
a different multiple for each comparable. The selection of the appropriate multiple within the range requires judgement, considering qualitative and quantitative factors
specific to the measurement.

(ii) Income Approach

The income approach converts future amounts (e.g. cash flows or income and expenses) to a single current (i.e. discounted) amount. When the income approach is used,
the fair value measurement reflects current market expectations about those future amounts.

It is a present value of all future earnings from an entity whose fair values are being evaluated or in other words all future cash flows to be discounted at current date to
get fair value of the asset / liability.

Assumption to the future cash flows and an appropriate discount rate would be based on the other market participant’s views. Related risks and uncertainty would require
to be considered and would be taken into either in cash flow or discount rate.”

(iii) Cost Approach

This method describes how much cost is required to replace existing asset/ liability in order to make it in a working condition. All related costs will be its fair value. It
actually considers replacement cost of the asset/ liability for which we need to find fair value.

Key Inputs to Fair Valuation

- The inputs refer broadly to the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk.

- In order to establish comparability and consistency in fair value measurement, Ind AS 113 has made some hierarchy to define the level of inputs for fair value.

- The hierarchy is purely based on the level of inputs available for the specific Asset/ liability for which the fair value is to be measured.

Level 1 Inputs

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

- A quoted price in an active market provides the most reliable evidence of fair value and shall be used without adjustment to measure fair value whenever available.

Level 2 Inputs

- Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

- If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability

- Level 2 inputs include the following:

i. quoted prices for similar assets or liabilities in active markets.

ii. quoted prices for identical or similar assets or liabilities in markets that are not active.

iii. inputs other than quoted prices that are observable for the asset or liability.

Level 3 inputs

- Level 3 inputs are unobservable inputs for the asset or liability.

- Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing for situations in which there is little,
if any, market activity for the asset or liability at the measurement date.

- Unobservable inputs shall reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk.

Fair Valuation principle :

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the mea¬
surement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique. In order
to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained herebelow.

Terms and Conditions of transaction with related parties.

1. The Related Party transactions above are Arms length transaction between two related parties in the ordinary course of business that is concluded as if they are
unrelated so that there is no conflict of Interest.

2. The Company has not granted loans or advances that is repayable on demand or without specifying any terms or period of repayment to promoters, directors, KMPs
and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person, for the financial years ended 31st March 2025
and 31st March 2024

3. For the year ended 31st March 2025 and 3st March 2024, there have been no guarantees provided to or received by the company in respect of any related party
trade receivables or payable. Further, ther were no outstanding commitments in respect of any related parties.

4. For the year ended 31st March, 2025, and 31st March 2024 the Company has not recorded any impairment of receivables relating to amounts owed by related
parties. This assessment is undertaken each financial year through examining the financial position of the related party.

5. During the year ended 31st March 2025, and 31st March 2024 the Company has not written off any receivables due from related parties.

6. There were no termination benefits and share based payment to any Key Management Personnel (KMP) during the year ended 31st March 2025 and 31st March
2024.

7. Outstanding balances as at the year ended are unsecured and settlement takes place in cash / transfer of assets.

8. For the year 31st March 2025 and 31st March 2024, there are no amounts incurred for provision of Key Management Personnel services that are provided by a
separate entity.

9. The provisions relating to Post Employment Benefits (Gratuity) are determined based on actuarial valuation for the Company as a whole. Accordingly such benefits
provided to individual Key Management Personnel is not disclosed .

52 RETIREMENT BENEFIT PLANS
Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both
employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions, as specified under the law, are made
to the Provident Fund to EPF; EDLI, EPS.

The total expense recognised in profit or loss of Rs.11.29 Lakhs (for the year ended March 31, 2024: Rs.10.12 Lakhs) represents contribution paid to these plans by the
Company at rates specified in the rules of the plan.

Defined benefit plans

(a) Gratuity

Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed by multiplying last drawn salary (basic salary including dearness

Allowance if any) by completed years of continuous service with part thereof in excess of six months and again by 15/26. The Act provides for a vesting period of 5

years for withdrawal and retirement and a monetary ceiling on gratuity payable to an employee on separation, as may be prescribed under the Payment of Gratuity Act,

1972, from time to time. However, in cases where an enterprise has more favourable terms in this regard the same has been adopted.

53 Additional Regulatory Information

(a) Proceedings under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder
For the year ended March 31, 2025 and March 31, 2024, we report the following :

There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and rules made thereunder. Therefore disclosures pertaining to the same as per Division II of Schedule III to the Companies Act, 2013 are not applicable.

(b) Borrowings from banks

For the year ended March 31, 2025 and March 31, 2024, we report the following:

The Quarterly returns or statements of current assets filed by the company with banks or financial institutions , where the company has made borrowings on the basis of
security of current assets are in agreement with the books of account and there are no material discrepancies in reporting of the same w.r.to values in books of account.

(c) For the year ended March 31, 2025 and March 31, 2024, there are no registration or satisfaction of charges yet to be registered with ROC beyond the statutory period

(d) For the year ended March 31, 2025 and March 31, 2024, the Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.

(e) For the year ended March 31, 2025 and March 31, 2024, we report the following:

The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering
the information available with the Company.

(f) For the year ended March 31, 2025 and March 31, 2024, we report the following:

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules,
2017. Therefore disclosures to be made in respect of non-compliance thereof is not applicable.

Formula adopted for above Ratios:

Current Ratio = Current Assets / (Total Current Liabilities - Security Deposits payable on Demand - Current maturities of Long Term Debt)

Debt Service Coverage Ratio = (EBITDA - Current Tax) / (Principal Repayment Gross Interest on term loans)

Return on Equity Ratio = (Total Comprehensive Income / Average Total Equity)

Inventory Turnover Ratio (Average Inventory days) = 365 / (Net Revenue / Average Inventories)

Trade Receivables Turnover Ratio (Average Receivables days) = 365 / (Net Revenue / Average Trade receivables)

Trade Payables Turnover Ratio (Average Payable days) = 365 / (Net credit purchases / Average Trade payables)

Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade receivables turnover ratio - Trade payables turnover ratio)

Net Profit Ratio = (Net Profit for the year / Net Revenue)

Return on Capital employed = (Total Comprehensive Income Interest) / (Average of (Total Equity Total Debt))

Return on Investment (Assets) = (Total Comprehensive Income / Average Total Assets)

* Reason for Variance of more than 25% is provided below

(a) Variance on Debt-equity ratio is due to repayment of non current liability during the year.

(b) Variance in Trade Receivables Turnover Ratio is on the account of increase in Turnover in comparison with previous year.

(c) Variance in Trade Payables Turnover Ratio is on the account of increase in purchases in comparison with previous year.

(d) Variance in Net Profit Ratio is on the account reduction in profits in comparision with previous year.

(e) Variance in Return on capital employed ratio is on the account of reduction in profits in comparison with previous year.

(f) Variance in Return on investment ratio is on the account of reduction in profits for the year in comparison with previous year

(h) Scheme of arrangements

For the year ended 31st March 2025 and 31st March 2024, we report the following:

There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

(i) Advance or loan or investment to intermediaries and receipt of funds from intermediaries

For the year ended 31st March 2025 and 31st March 2024, we report the following:

The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in
writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(j) Details of Loans to promoters, directors, KMPs and the related parties
For the year ended 31st March 2025 and 31st March 2024, we report the following:

The company has not granted any loans and advance in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act,
2013), either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.

(k) Undisclosed Income

For the year ended 31st March 2025 and 31st March 2024, we report the following:

The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments
under the Income Tax Act, 1961 during any of the years.

(l) Details of Crypto Currency or Virtual Currency

For the year ended 31st March 2025 and 31st March 2024, we report the following:

The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.,

55 The Code on Social Security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The
Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which
are under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified.

56 Audit Trail

The Company has used an accounting software for maintaining its books of accounts for the year ended March 31, 2025 and March 31, 2024 which did not have a feature
of recording audit trail (edit log) facility and such feature of recording audit trail (edit log) facility was therefore not enabled throughout the year in such software. The
management is evaluating different options to comply with the requirements.The Company has put in place sufficient controls to ensure operating effectiveness of the internal
controls over financial reporting as at 31 March 2025 and as at 31 March 2024.

57 No Fraud by the Company or on the Company has been noticed or reported during the financial year 2024-25 and during the financial year 2023-24.No Whistle Blower
Complaints have been received by the Company during the financial year 2024-25 and during the financial year 2023-24.

58 For the year ended March 31, 2025 and March 31, 2024, there are no amounts required to be transferred to Central Government under the Investor Education and Protection
Fund.

59 For the year ended March 31, 2025 and March 31, 2024,there are no loans or advances in the nature of loans that have been granted to promoters, directors, Key
Management Personnel(s) and related parties (as defined under Companies Act, 2013.)

60 For the year ended March 31, 2025 and March 31, 2024,the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of
loans, investments, guarantees and security, wherever applicable.

61 For the year ended March 31, 2025 and March 31, 2024, proper books of account as required by law have been kept by the Company, in electronic mode on servers
physically located in India and further the process of taking daily backups is in place in the company.

62 The Company did not have any un-paid dividend as the end of each year reported herein.

63 For the year ended March 31, 2025 and March 31, 2024, there have been no events after the reporting date that requires disclosure in these Financial Statements.

64 Previous year figures have been regrouped, reclassified and rearranged, wherever necessary, to conform to current year presentation. There are no significant regroupings/
reclassifications for the year under report.

For and on behalf of the board of Sri Ramakrishna Mills (Coimbatore) Limited (CIN: L17111TZ1946PLC000175)

As per our report of even date attached
C S K PRABHU AND CO LLP

(formerly C S K Prabhu and Co.)

D. Lakshminarayanaswamy R. Guru Chandrasekar Chartered Accountants,

Managing Director Director FRN:002485S/S000197

(DIN : 00028118) (DIN : 08421861)

(Sd.) Mahesh Prabhu

M. Srividya G. Krishnakumar Designated Partner

Company Secretary Chief Financial Officer M.No : 214194

UDIN : 25214194BMOUPJ9151

Place : Coimbatore Place : Coimbatore

Date : 30.05.2025 Date : 30.05.2025

---

Mar 31, 2024

p) Provisions, contingent liabilities and contingent asset Provisions

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

Provisions are discounted, if the effect of the time value of money is material, using pre-tax rates that reflects the risks specific to the liability. When discounting is used, an increase in the provisions due to the passage of time is recognised as finance cost. These provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Necessary provision for doubtful debts, claims, etc., are made, if realisation of money is doubtful in the judgement of the management.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. Contingent liabilities are disclosed separately.

Show cause notices issued by various Government authorities are considered for evaluation of contingent liabilities only when converted into demand.

Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of the nature of the contingent assets at the end of the reporting period, and, where practicable, an estimate of their financial effect.

Contingent assets are disclosed but not recognised in the financial statements.

q) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances with original maturity of less than 3 months, highly liquid investments that are readily convertible into cash, which are subject to insignificant risk of changes in value.

r) Cash Flow Statement

Cash flows are presented using indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

Bank borrowings are generally considered to be financing activities. However, where bank overdrafts which are repayable on demand form an integral part of an entity’s cash management, bank overdrafts are included as a component of cash and cash equivalents for the purpose of Cash flow statement.

s) Earnings per share

The basic earnings per share are computed by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential 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 for bonus shares, as appropriate.

t) Events after the reporting period

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial statements are adjusted for such events before authorization for issue. Non adjusting events are events that are indicative of conditions that arose after the end of the reporting period. Non-adjusting events after the reporting date are not accounted, but disclosed.

Note:

i) The title deeds, comprising all the immovable properties of land and buildings, are held in the name of the Company as at the balance sheet date, for the year under report and the comparable period/s presented.Therefore the disclosures pertaining to Title Deeds of immovable properties not held in the name of the Company as per Division II of Schedule III to the Companies Act, 2013 are not applicable and hence not furnished. Further there are no immovable properties jointly held with others for the year under report and the comparable period/s presented. Hence details regarding the same including disclosure of the extent of the company’s share as per Division II of Schedule III to the Companies Act, 2013, are not applicable. Further there are no restrictions to title in respect of any property, plant and equipment.

ii) The Company has no other adjustments/impairment loss/ reversal in the value of property, plant and equipment (including intangible assets) during the year and comparative year presented,including the related amortisation and impairment loss or reversal.

iii) The Company has not revalued its Property, plant and equipment and intangible assets during the year and comparative year presented.

iv) There were no acquisition of Property, Plant and equipment and intangible assets through business combinations during the year under report and for the figures for the comparable year presented.

v) The Company is maintaining proper records showing full particulars, including quantitative details of property, plant and equipment.The Company has a regular programme of physical verification of its property, plant and equipment by which all property, plant and equipment are verified in a phased manner over a period of three years. In accordance with this programme, during each of the period reported herein, the management has verified property, plant and equipment and no material discrepancies were noticed on such verification.

vi) For each of the reporting period, there was no temporarily idle property, plant and equipment .

vii) There were no borrowing costs capitalised during the year 2023-24 and 2022-23.

Foreign currency sensitivity analysis

In management’s opinion, the sensitivity analysis is not applicable as the Company is not exposed to any Direct Foreign Exchange Risk and hence not reported.

Interest rate risk management

The Company is exposed to interest rate risk because it borrow funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

The 25 basis point interest rate changes will impact the profitability by INR 8.35 Lakhs for the year (Previous INR 8.31 Lakhs)

Credit risk management

Credit risk arises when a customer or counterparty does not meet its obligations under a customer contract or financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily trade receivables. The Company’s concentration of credit risk with any counterparty is disclodsed in note 43(c).

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is the total of the carrying amount of balances with banks, short term deposits with banks, trade/contract receivables, margin money and other financial assets excluding equity investments. The Company limits its exposure to credit risk by dealing with counter party that have good credit standing. The company does not expect any losses from non-performance by any counter parties.

(a) Trade Receivables

In respect of Trade/Contract receivables, the Company has credit evaluation policy for each customer and, based on the evaluation, credit limit of each customer is defined. Wherever possible and as per customary business practice,if the Company assesses the credit risk as high, the exposure is backed by either bank, guarantee/ letter of credit or security deposits.

As per simplified approach, wherever applicable, the Company makes provision of expected credit losses on trade/contract receivables using a provision matrix to mitigate the risk of default in payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

(b) Investments, Derivative Instruments, Cash and Cash Equivalents and Bank deposits

Credit Risk on cash and cash equivalents, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial institutions, who have been assigned high credit rating by international and domestic rating agencies. Investments of surplus funds are made only with approved Financial Institutions/ Counterparty. The Company has standard operating procedures and investment policy for deployment of surplus liquidity, which allows investment in debt securities and mutual fund schemes of debt and arbitrage categories and restricts the exposure in equity markets.

Offsetting related disclosures

Offsetting of cash and cash equivalents to borrowings as per the consortium agreement is available only to the bank in the event of a default. Company does not have the right to offset in case of the counter party’s bankruptcy, therefore, these disclosures are not required.

Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed deposit and mutual funds, which carry minimal mark to market risks. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

49 DISCLOSUES PURSUANT TO IND AS-113 Fair Valuation techniques :

Ind AS 113 specifies following valuation techniques to measure fair values:

(i) Market Approach

The market approach uses prices and other relevant information generated by market transactions involving identical or comparable (i.e. similar) assets, liabilities or a group of assets and liabilities, such as a business.

For example, valuation techniques consistent with the market approach often use market multiples derived from a set of comparables. Multiples might be in ranges with a different multiple for each comparable. The selection of the appropriate multiple within the range requires judgement, considering qualitative and quantitative factors specific to the measurement.

(ii) Income Approach

The income approach converts future amounts (e.g. cash flows or income and expenses) to a single current (i.e. discounted) amount. When the income approach is used, the fair value measurement reflects current market expectations about those future amounts.

It is a present value of all future earnings from an entity whose fair values are being evaluated or in other words all future cash flows to be discounted at current date to get fair value of the asset / liability.

Assumption to the future cash flows and an appropriate discount rate would be based on the other market participant’s views. Related risks and uncertainty would require to be considered and would be taken into either in cash flow or discount rate.”

(iii) Cost Approach

This method describes how much cost is required to replace existing asset/ liability in order to make it in a working condition. All related costs will be its fair value. It actually considers replacement cost of the asset/ liability for which we need to find fair value.

Key Inputs to Fair Valuation

- The inputs refer broadly to the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk.

- In order to establish comparability and consistency in fair value measurement, Ind AS 113 has made some hierarchy to define the level of inputs for fair value.

- The hierarchy is purely based on the level of inputs available for the specific Asset/ liability for which the fair value is to be measured.

Level 1 Inputs

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

- A quoted price in an active market provides the most reliable evidence of fair value and shall be used without adjustment to measure fair value whenever available.

Level 2 Inputs

- Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

- If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability

- Level 2 inputs include the following:

i. quoted prices for similar assets or liabilities in active markets.

ii. quoted prices for identical or similar assets or liabilities in markets that are not active.

iii. inputs other than quoted prices that are observable for the asset or liability.

Level 3 inputs

- Level 3 inputs are unobservable inputs for the asset or liability.

- Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

- Unobservable inputs shall reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk.

Fair Valuation principle :

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique. In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained herebelow.

Terms and Conditions of transaction with related parties.

1. The Related Party transactions above are Arms length transaction between two related parties in the ordinary course of business that is concluded as if they are unrelated so that there is no conflict of Interest.

2. The Company has not granted loans or advances that is repayable on demand or without specifying any terms or period of repayment to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person, for the financial years ended 31st March 2024 and 31st March 2023

3. For the year ended 31st March 2024 and 3st March 2023, there have been no guarantees provided to or received by the company in respect of any related party receivables or payable. Further, ther were no outstanding commitments in respect of any related parties.

4. For the year ended 31st March, 2024, and 31st March 2023 the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party.

5. During the year ended 31st March 2024, and 31st March 2023 the Company has not written off any receivables due from related parties

6. There were no termination benefits and share based payment to any Key Management Personnel (KMP) during the year ended 31st March 2024 and 31st March 2023.

7. Outstanding balances as at the year ended are unsecured and settlement takes place in cash / transfer of assets.

8. For the year 31st March 2024 and 31st March 2023, there are no amounts incurred for provision of Key Management Personnel services that are provided by a separate entity.

9. The provisions relating to Post Employment Benefits (Gratuity) are determined based on actuarial valuation for the Company as a whole. Accordingly such benefits provided to individual Key Management Personnel is not disclosed .

52 RETIREMENT BENEFIT PLANS Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions, as specified under the law, are made to the Provident Fund to EPF; EDLI, EPS, etc.

The total expense recognised in profit or loss of Rs.10.12 Lakhs (for the year ended March 31, 2023: Rs.11.13 Lakhs) represents contribution paid to these plans by the Company at rates specified in the rules of the plan.

Defined benefit plans

(a) Gratuity

Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed by multiplying last drawn salary (basic salary including dearness

Allowance if any) by completed years of continuous service with part thereof in excess of six months and again by 15/26. The Act provides for a vesting period of 5

years for withdrawal and retirement and a monetary ceiling on gratuity payable to an employee on separation, as may be prescribed under the Payment of Gratuity Act,

1972, from time to time. However, in cases where an enterprise has more favourable terms in this regard the same has been adopted.

1. The weighted average duration of the defined benefit obligation as at 31st March 2024 is 2 years (31st March 2023 is 2 years).

2. The estimate of future salary increase takes into account inflation, promotions, productivity gains and other relevant factors.

3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated term of the obligation.

4. The above sensitivity analysis are based on change in an assumption which is holding all the other assumptions constant. In practice, this is unlikely to occur, and changes in some assumptions may be correlated. When calculating the sensitivity of defined benefit obligation to significant actuarial assumptions the same method of present value of defined benefit obligations calculated with Projected unit credit method at the end of the reporting period has been applied while calculating defined benefit liability recognised in the balance sheet.

5. The method and type of assumptions used in preparing the sensitivity analysis does not change as compared to the prior period.

53. Additional Regulatory Information

(a) Proceedings under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Therefore disclosures pertaining to the same as per Division II of Schedule II to the Companies Act, 2013 are not applicable.

(b) Borrowings from banks

The Quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts, where the company has made borrowings on the basis of security of current assets.

(c) There are no registration or satisfaction of charges yet to be registered with ROC beyond the statutory period.

(d) The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.

(e) Relationship with Struck off Companies

The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.

(f) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017. Therefore disclosures to be made in respect of non-compliance thereof is not applicable.

Formula adopted for above Ratios:

Current Ratio = Current Assets / (Total Current Liabilities - Security Deposits payable on Demand - Current maturities of Long Term Debt)

Debt-Equity Ratio = Total Debt / Total Equity

Debt Service Coverage Ratio = (EBITDA - Current Tax) / (Principal Repayment Gross Interest on term loans)

Return on Equity Ratio = Total Comprehensive Income / Average Total Equity

Inventory Turnover Ratio (Average Inventory days) = 365 / (Net Revenue / Average Inventories)

Trade receivables Turnover Ratio (Average Receivables days) = 365 / (Net Revenue / Average Trade receivables)

Trade Payables Turnover Ratio (Average Payable days) = 365 / (Net credit purchases / Average Trade payables)

Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade receivables turnover ratio - Trade payables turnover ratio)

Net Profit Ratio = Net Profit / Net Revenue

Return on Capital employed = (Total Comprehensive Income Interest) / (Average of (Equity Total Debt))

Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets * Reason for Variance of more than 25% is provided below

(a) Variance on debt-service coverage ratio on account of increase in profits for the year in comparison with previous year.

(b) Variance in Return on Equity is on account of increase in profits for the year in comparison with previous year.

(c) Variance in Inventory Turnover Ratio is on the account of increased turnover and decrease in average inventory during the year in comparison with previous year.

(d) Variance in Trade Receivables Turnover Ratio is on the account of increase in Turnover during the year in comparison with previous year.

(e) Variance in Net Capital Turnover Ratio is on account of increase in Turnover during the year in comparison with previous year.

(f) Variance in Net Profit Ratio is on the account of increase in Turnover coupled with increase in profits during the year in comparison with previous year.

(g) Variance in Return on capital employed ratio is on the account of increase in turnover in comparison with previous year.

(h) Variance in Return on investment ratio is on the account of increase in profits for the year in comparison with previous year.

(h) Scheme of arrangements

There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

(i) Advance or loan or investment to intermediaries and receipt of funds from intermediaries

The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(j) Details of Loans to promoters, directors, KMPs and the related parties

The company has not granted any loans and advance in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.

(k) Undisclosed Income

The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

(l) Details of Crypto Currency or Virtual Currency

The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.,

55 The Code on Social Security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified.

56 Audit Trail

The Company has used an accounting software for maintaining its books of accounts for the year ended March 31, 2024 where in the accounting software did not have the audit trial feature enabled throughout the year. The management is evaluating different options to comply with the requirements.The Company has put in place sufficient controls to ensure operating effectiveness of the internal controls over financial reporting as at March 31, 2024.

57 No Fraud by the Company or on the Company has been noticed or reported during the financial year 2023-24 and during the financial year 2022-23.No Whistle Blower Complaints have been received by the Company during the financial year 2023-24 and during the financial year 2022-23.

58 There are no amounts required to be transferred to Central Government under the Investor Education and Protection Fund.

59 There are no loans or advances in the nature of loans that have been granted to promoters, directors, Key Management Personnel(s) and related parties (as defined under Companies Act, 2013.)

60 The Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security, wherever applicable.

61 Proper books of account as required by law have been kept by the Company, in electronic mode on servers physically located in India and further the process of taking daily backups is in place in the company.

62 The Company did not have any un-paid dividend as the end of each period reported herein.

63 There have been no events after the reporting date that requires disclosure in these Financial Statements.

64 Previous year figures have been regrouped, reclassified and rearranged, wherever necessary, to conform to current year presentation. There are no significant regroupings/ reclassifications for the year under report.

For and on behalf of the board of Sri Ramakrishna Mills (Coimbatore) Limited (CIN: L17111TZ1946PLC000175)

As per our report of even date attached For CSK PRABHU & CO

D. Lakshminarayanaswamy R. Guru Chandrasekar Sasirekha Vengatesh Chartered Accountants,

Managing Director Director Chartered Accountant Firm Regd. No. 002485S

(DIN : 00028118) (DIN : 0008421861) Internal Auditor

M.No. 200464 (Sd.) Mahesh Prabhu

M. Srividya G. Krishnakumar Partner

Company Secretary Chief Financial Officer M.No : 214194

UDIN: 24214194BKBGAB6954

Place : Coimbatore Place : Coimbatore

Date : 29.05.2024 Date : 29.05.2024

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Mar 31, 2015

1. SHARE CAPITAL:

NOTE:

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

In the event of liquidation the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion of their share holding.

There are no shares allotted as fully paid without payments being received in cash, bonus shares or shares bought back in the immediate preceding 5 previous years.

(b) Customs department filed an appeal before Madras High Court against the orders of Settlement Commission under Advance License Scheme in respect of reduction of Interest of Rs.8.26 lakhs allowed to us.

(c) There is a demand of Rs.3,19,712/- raised by Andhra Pradesh Electricity Department in respect of Fuel Surcharge adjustment (FSA). The same is disputed by the Company before Hon'ble High Court and pending orders no provision is made in the accounts.

2. The Balance of Debtors and Creditors, which in the absence of confirmations wherever necessary are taken as per the books and are subject to reconciliation and adjustments thereon having an impact of revenue nature, if any will be made in the year in which the same are finalized and settled.

3. In the opinion of Directors, assets other than fixed assets and non-current investments have the value or realization in the ordinary course of business at least equal to the amount at which they are stated.

4. Sales Tax collections not included in the Sales for the year ended 31.03.2015 is Rs.18,56,895/- (previous year Rs.24,84,441/-).

5. Building, Plant & Machinery had been revalued as on 30th September 2002 and land had been revalued as on 30th September 2003 ( by approved valuers, since their original costs no longer gave a true and fair view of their then values) and surplus (arisen on revaluation of Building, Plant & Machinery) amounting to Rs.15,56,26,170/- and Rs.6,88,20,020/- respectively were credited to Revaluation Reserve Account. Future salary increase considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Defined Contribution Schemes

Provident Fund 25,11,303 23,83,671 38,35,020

6. Segmental Reporting (AS-17):

The Company has only Single Reportable Business Segment, i.e. "Yarn Segment" in terms of requirements of AS-17.

7. Lease (AS-19)

The Lease Agreement provides for an option to the company to renew the lease period for a further period varying from 1 to 2 years at the end of the period provided atleast three months' prior notice is given:

Future Minimum lease rent to be received:

b) The Company has provided for Deferred Tax Asset on account of depreciation that arose on account of assets whose lives have become NIL as per Schedule-II of the Companies Act, 2013 to the extent of Rs.95,88,778/-. However, the Company has not considered Deferred Tax Asset in respect of others as there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Consequent to the enactment of the Companies Act, 2013 and its applicability for accounting periods commencing from 1st April 2014, the Company has reassessed the remaining useful life of fixed assets in accordance with the provisions prescribed under Schedule-II to the Companies Act 2013. In case of assets which have completed their useful life, the carrying value (net of residual life) as at 1st April 2014 was Rs.3,06,23,007/- out of which Rs.2,10,34,229/- was transferred to retained earnings after considering Rs.95,88,778/- under Deferred Tax. In case of other assets, the carrying value (net of residual value) is being depreciated over the revised remaining useful life. The depreciation and amortization expenses charge for the year would have been higher by Rs.1,56,654/- had the company continued with the previous useful life of assets.

8. Capital Reserve relates to revaluation of land made during 2013 in Partnership Firm in which Company is a Partner. The revaluation of land is done on the basis of valuation certified by Certified Valuer. Corresponding effect is accounted under receivable from Partnership Firm.

9. Previous year figures have been re grouped and reclassified wherever necessary to correspond with current year's classification/disclosure.

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Mar 31, 2014

AS-1 CONTINGENT LIABILITY

a) A provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reasonable estimate can be made. Provisions are not discounted to the present value and are determined based on Management estimate. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b) Contingent liabilities are disclosed by way of notes to financial statements. Provision is made if it becomes probable that an out flow of future economic benefits will be required for an item previously dealt with as a contingent liability.

c) Contingent liability under various fiscal laws includes those in respect of which the Company/Department is in appeal.

OTHERS

(i) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted Accounting Pri nciples requires Management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities as at the date of the financial statements and reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the estimates is recognized prospectively.

(ii) CENVAT

a) The Value of CENVAT benefit is being reduced from the value of purchase of materials. Consumption of materials is arrived at accordingly.

b) The value of CENVAT benefit eligible in respect of capital item is reduced from the cost and depreciation is claimed accordingly.

(iii) SUNDRY DEBTORS AND ADVANCES

Doubtful advances are disclosed by way of notes.

NOTE:

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

In the event of liquidation the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion of their share holding.

There are no shares alloted as fully paid without payments being received in cash, bonus shares or shares bought back in the immediatley preceding previsous years.

Details of Security :

i) Secured by equitable mortgage of 4.135 acres of vacant land situated at Coimbatore with all its present and future superstructure

ii) Hire Purchase Loans are secured by hypothecation of respective assets

Aggregage amount of loans guaranteed by Chairman & Managing Director towards term loans:

3. Customs department filed an appeal before Madras High Court against the orders of Settlement Commission under Advance License S cheme in respect of reduction of Interest of Rs.8.26 lakhs allowed to us.

4. There is a demand of Rs.3,19,712/- raised by Andhra Pradesh Electricity Department in respect of Fuel Surcharge adjustment (FSA). The same is disputed by the Company before Hon ble High Court and pending orders no provision is made in the accounts.

5. a) Income Tax assessments from Assessment year 2012-13 and onwards are pending.

b) Sales Tax Asses sments pending:

a) Under TNGST:1999-00 to 2000-01 & 2004-05 to 31.12.06

b) Under TNVAT:01.01.07 to 31.03.14

c) Under CST (TN):1999-00 to 2013-14

d) Under KGST:2005-06

e) Under CST (Kerala):2005-06

f) Under APVAT:2011-12 to 2013-14

g) Under CST (AP):2011-12 to 2013-14

2. Balance of Sundry Debtors and Sundry Creditors are subject to confirmation, reconciliation and consequent adjustments thereof.

3. In the opinion of Directors, assets other than fixed assets and non-current investments have the value or realization in the ordinary course of business at least equal to the amount at which they are stated.

4.Sales Tax collections not included in the Sales for the year ended 31.03.2014 is Rs.24,84,441/-(previous year Rs.65,61,597/-).

5. Disclosure required under the Micro, Small and Medium Enterprises D evelopment Act, 2006 (the Act) are given as follows:

6. Building, Plant & Machin ery had been revalued as on 30th September 2002 and land had been revalued as on 30th September 2003 ( by approved valuers, since their original costs no longer gave a true and fair view of their then values) and surplus (arisen on revaluation of Building, Plant & Machinery) amounting to Rs.15,56,26,170/- and Rs.6,88,20,020/- respectively were credited to Revaluation Reserve Account.

7. Particulars regarding investment in the capital of M/s.Dove Real Estates:

b) The company has not provided for deferred tax asset as on 01.04.2001.

c) The company has also not provided for deferred tax asset for the current year on account of prudence as there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

8. Capital Reserve relates to revaluation of land in Partnership Firm in which Company is a Partner. Th e revaluation of land is done on the basis of valuation certified by Certified Valuer. Corresponding effect is accounted under receivable from Partnership Firm.

9. Previous year figures have been re grouped and reclassified wherever necessary to correspond with current year''s classification/disclosure.

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Mar 31, 2013

AS-1 ACCOUNTING FOR TAXES ON INCOME

Deferred tax resulting from timing differences between book and tax profits is accounted under liability method as enacted or substantially enacted rate as on the date of balance sheet. Deferred tax asset, other than those arising on account of unabsorbed depreciation or carry forward of losses under tax laws are recognised and carried forward subject to consideration of prudence only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

Deferred tax asset, arising on account of unabsorbed depreciation or carry forward of loss under tax laws are recognised and carried forward subject to consideration of prudence only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

AS-2 INTANGIBLE ASSETS

Software is being amortized over a period of 4 years

AS-3 IMPAIRMENT OF ASSETS

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting year is reversed if there has been a change in the estimate of the recoverable amount.

AS-4 CONTINGENT LIABILITY

a) A provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reasonable estimate can be made. Provisions are not discounted to the present value and are determined based on Management estimate. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b) Contingent liabilities are disclosed by way of notes to financial statements. Provision is made if it becomes probable that an outflow of future economic benefits will be required for an item previously dealt with as a contingent liability.

c) Contingent liability under various fiscal laws includes those in respect of which the Company/Department is in appeal.

OTHERS

(i) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted Accounting Principles requires Management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities as at the date of the financial statements and reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the estimates is recognized prospectively.

(ii) CENVAT

a) The Value of CENVAT benefit is being reduced from the value of purchase of materials. Consumption of materials is arrived at accordingly.

b) The value of CENVAT benefit eligible in respect of capital item is reduced from the cost and depreciation is claimed accordingly.

1. Customs department filed an appeal before Madras High Court against the orders of Settlement Commission under Advance Licence Scheme in respect of reduction of Interest of Rs.8.26 lakhs allowed to us.

2. There is a demand of Rs. 3,19.712/- raised by Andhra Pradesh Electricity Department in respect of Fuel Surcharge adjustment (FSA). The same is disputed by the Company before Hon''ble High Court and pending order no provision is made in the accounts.

3. a) Income Tax assessments from Assessment year 2010-11 and onwards are pending. b) Sales Tax Assessments pending''.

a) Under TNGST : 1999-00 to 2000-01 & 2004-05 to 31.12.06

b) Under TNVAT : 01.01.07 to 31.03.12

c) Under CST(TN) : 1999-00 to 2011-12

d) Under KGST : 2005-06

e) Under CST (Kerala) : 2005-06

f) Under APVAT : 2009-10 & 2011-12

g) Under CST (AP) : 2009-10 & 2011-12

4. Balance of Sundry Debtors and Sundry Creditors are subject to confirmation, reconciliation and consequent adjustments thereof.

5. In the opinion of Directors, assets other than fixed assets and non-current investments have the value or realization in the ordinary course of business at least equal to the amount at which they are stated.

6. Sales Tax collections not included in the Sales for the year ended 31.03.2013 is Rs.65,61,597/- (previous year Rs.59,78,344/-)

7. Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act) are given as follows:

8. Building, Plant & Machinery had been revalued as on 30th September 2002 and land had been revalued as on 30th September 2003 ( by approved valuers, since their original costs no longer gave a true and fair view of their then values) and surplus (arisen on revaluation of Building, Plant & Machinery) amounting to Rs. 15,56,26,170/- and Rs.6,88,20,020/- respectively were credited to Revaluation Reserve Account.

9. Segmental Reporting (AS-17):

The Company has only Single Reportable Business Seqmant, i.e. "Yarn Segment" in terms of requirements of AS-17.

10. Exceptional item in Statement of Profit and Loss represents surplus arising on conversion of land, being capital asset, to stock in trade during the year. The value of converted land is taken at the value as certified by certified valuer.

11. Capital Reserve relates to revaluation of land in Partnership Firm in which Company is a Partner. The revaluation of land is done on the basis of valuation certified by Certified Valuer. Corresponding effect is accounted under receivable from Partnership Firm.

12. Previous year figures have been re grouped and reclassified wherever necessary to correspond with current year''s classification/disclosure.

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Mar 31, 2012

(i) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted Accounting Principles requires Management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities as at the date of the financial statements and reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the estimates is recognized prospectively.

(ii) CENVAT

a) The Value of CENVAT benefit is being reduced from the value of purchase of materials. Consumption of materials is arrived at accordingly.

b) The value of CENVAT benefit eligible in respect of capital item is reduced from the cost and depreciation is claimed accordingly.

(iii) SUNDRY DEBTORS AND ADVANCES

Doubtful advances are disclosed by way of notes.

1. ADDITIONAL INFORMATION TO FINANCIAL STATEMENTS

2. Customs department filed an appeal before Madras High Court against the orders of Settlement Commission under Advance Licence Scheme in respect of reduction of Interest of Rs. 8.26 lakhs allowed to us.

3. a) Income Tax assessments are completed upto and including Assessment year 2009-10.

b) Sales Tax Assessments pending:

a) Under TNGST : 1999-00 to 2000-01 & 2004-05 to 31.12.06

b) Under TNVAT : 01.01.07 to 31.03.11

c) Under CST(TN) : 1999-00 to 2010-11

d) Under KGST : 2005-06

e) Under CST (Kerala) : 2005-06

f) Under APVAT : 2009-10 & 2010-11

g) Under CST (AP) : 2009-10 & 2010-11

4. Balance of Sundry Debtors and Sundry Creditors are subject to confirmation, reconciliation and consequent adjustments thereof.

5. In the opinion of Directors, assets other than fixed assets and non-current investments have the value or realization in the ordinary course of business at least equal to the amount at which they are stated.

6. Sales Tax collections not included in the Sales for the year ended 31.03.2012 is Rs. 59,78,344/- (previous year Rs. l,11,62,019/-)

7. Building, Plant & Machinery had been revalued as on 30th September 2002 and land had been revalued as on 30th September 2003 (by approved valuers, since their original costs no longer gave a true and fair view of their then values) and surplus (arisen on revaluation of Building. Plant & Machinery) amounting to Rs. 15,56,26,170/- and Rs. 6,88,20,020/- respectively were credited to Revaluation Reserve Account.

8. Segmental Reporting (AS-17):

The Company has only Single Reportable Business Segment, i.e. "Yarn Segment" in terms of requirements of AS-17.

9. i. Related party disclosure (AS-18)

(As identified by the Management)

Associates Key Management Relatives Personnel of Key Management Personnel

Sri Jaganatha Ginning. & Oil Mills (JGOM) Sri R. Doraiswami

Sri Jaganatha Textiles Ltd (SJTL) Sri D. Lakshminarayanaswamy Smt. R. Suhasini

Suhasini Spinners Ltd. (SSL) Smt. L. Nagaswarna Smt. L. Swathy

Swathy Processors Ltd. (SPL)

Sri Ramakrishna Yarn Carriers Ltd. (SRYC)

Dove Real Estates

10. The revised Schedule VI has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped and reclassified where ever necessary to correspond with the current year's classification/disclosure.

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Mar 31, 2011

Year ended Year ended 31.03.2011 31.03.2010 Rs. Rs.

1. Contingent Liabilities not provided for in accounts:

a) Bills discounted with Banks pending realisation:-

[i] Export Bills Nil Nil

[ii] Domestic Bills Nil 43,89,905

b) Following Sales Tax assessments are contested before Madras High Court and stayed:-

Asst. Year Nature of Dispute Disputed Demand (Rs. in Lakhs)

31.03.2011 31.03.2010

1995-96 TNGST Demand 54.59 54.59

1998-99 TNGST Demand 61.66 61.66

(Rs.31/- lacs since paid as per Madras High Court Interim Order.)

1999-00 TNGST Pre-assessment Demand 89.37 89.37

2000-01 TNGST, Additional Sales Tax 121.97 121.97

1.4.2004 to 31.12.2006 TNGST Additional Sales Tax 7.43 7.43

c) Customs department filed an appeal before Madras High Court against the orders of Settlement Commission under Advance Licence Scheme in respect of reduction of Interest of Rs.8.26 lakhs allowed to us.

2. Balance of Sundry Debtors and Sundry Creditors are subject to confirmation, reconciliation and consequent adjustments thereof.

3. In the opinion of 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.

4. Sales Tax collections not included in the Sales for the year ended 31.03.2011 is Rs.l,11,62,019/- (Previous year Rs. 95,35,049/-)

5. Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act) are given as follows:

a) Principal amount due Nil Nil Interest due on the above Nil Nil

b) Interest paid during the period beyond the appointed day Nil Nil

c) Amount of interest due and payable for the period of delay in making payment without adding the interest specified under the Act Nil Nil

d) Amount of interest accrued and remaining unpaid at the end of the period Nil Nil

e) Amount of further 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 enterprise for the purpose of disallowance as a deductible expenditure under Section 23 of the Act Nil Nil

The above information and that given in Schedule 13 "Current Liabilities" regarding micro enterprises and small enterprises has been determined on the basis of information available with the Company. This has been relied upon by the Auditors.

6. Building, Plant & Machinery had been revalued as on 30th September 2002 and land had been revalued as on 30th September 2003 ( by approved valuers, since their original costs no longer gave a true and fair view of their then values) and surplus (arisen on revaluation of Building, Plant & Machinery) amounting to Rs. 15,56,26,170/- and Rs.6,88,20,020/- respectively were credited to Revaluation Reserve Account.

7. Segmental Reporting (AS-17):

The Company has only Single Reportable Business Segment, i.e. "Yarn Segment" in terms of requirements of AS-17.

8. Related party disclosure (AS-18) (As identified by the Management)

i. Related party Relationships :

Associates Key Management Personnel Relatives of Key Management Personnel

Sri Jaganatha Ginning.& Oil Mills (JGOM) Sri R Doraiswami Smt D Ranganayaki

Sri Jaganatha Textiles Ltd (SJTL) Sri D Lakshminarayanaswamy Smt R Suhasini

Suhasini Spinners Ltd (SSL) Smt L Nagaswarna Smt L Swathy

Swathy Processors Ltd (SPL)

Sri Ramakrishna Yarn Carriers Ltd (SRYC)

Dove Real Estates

9. a) The company has not provided for Deferred tax asset as on 01.04.2001

b) The company has also not provided for Deferred tax asset on account of prudence for the current year as there is no virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Asset can be realized.

10. The figures have been rounded off to the nearest rupee and previous years figures have been re-grouped and re-classified wherever necessary.

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Mar 31, 2010

OTHERS

i) USE OF ATES

The pre of financial statements in conformity with l ted Accounting Principles requires Management to make e mptions that affects the repo a ounts of assets and liabilities and the dis o ngent liabilities as at the date of the financial statements a unt of revenues and expense the reporting period. Actual results could o e estimates. Any revision to the estimates is recognized

(ii) CENVA

a) The CENVAT benefit is being reduced from e urchase of materials. Consumption of materials is a gly.

b) The CENVAT benefit eligible in respect of c e educed from the cost and depreciation is claimed accordi

2. Contingent Liabilities not provided for in accounts:

a) Bills discounted with Banks pending realisation:-

[i] Export Bills Nil Nil [ii] Domestic Bills 43,80,905 Nil

B)Following Sales Tax assessments are contested before H rt and stayed:- Asst. Year Nature of Dispute Disputed Demand

(Rs. in Lakhs)

31.03.2010 31.03.2009

1995-96 TNGST Demand 54.59 54.59

1998-99 TNGST Demand 61.66 61.66

( Rs.31/- lacs since paid as per Madras High Court Order.)

1999-00 TNGST Pre-ass- essment Demand 89.37 89.37 2000-01 TNGST, Additi- onal Sales Tax 121.97 121.97

1.4.2004 to 31.12.2006 TNGST Additional Sales Tax 7.43 7.43

c) Customs department filed an appeal before Madras High Court against the orders of Settlement Commission under Advance Licence Scheme in respect of reduction of Interest of Rs.8.26 lakhs allowed to us.

3. Balance of Sundry Debtors and Sundry Creditors are subject to confirmation, reconciliation and consequent adjustments thereof.

4. In the opinion of 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.

5. Building, Plant & Machinery had been revalued as on 30th September 2002 and land had been revalued as on 30th September 2003 ( by approved valuers, since their original costs no longer gave a true and fair view of their then values) and surplus (arisen on revaluation of Building, Plant & Machinery) amounting to Rs.15,56,26,170/- and Rs.6,88,20,020/- respectively were credited to Revaluation Reserve Account.

6. Segmental Reporting (AS-17):

The Company has only Single Reportable Business Segment, i.e. "Yarn Segment" in terms of requirements of AS-17.

7. a) The company has not provided for Deferred tax asset as on 01.04.2001

b) The company has also not provided for Deferred tax asset on account of prudence for the current year as there is no virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Asset can be realized.

8. The figures have been rounded off to the nearest rupee and previous years figures have been re-grouped and re-classified wherever necessary.