Notes to Accounts of Super Sales India Ltd.

Mar 31, 2025

The company has one class of equity shares having a par value of Rs.10 each. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Deficit before asset ceiling

The Company expects to make the contribution of Rs.25.44 lakhs (as at 31⁵¹ March, 2024 Rs.0.63 lakhs) to the defined benefit plan during the next financial year.

Assumptions regarding future mortality for pension and medical benefits are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into an average life expectancy in years for a pensioner retiring age.

(v) Brief description of the Plans & risks

These plans typically expose the Company to actuarial risks such as: Investment risk, interest risk, longevity risk and salary risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount which is determined with reference to market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, other debt instruments and equity shares of listed companies.

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’s debt instruments, if any.

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.

Salary risk:

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

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

(viii) The weighted average duration of the defined benefit obligation is 11.38 years (March 31,2024 - 7.24 years).

(ix) Other Employee Benefit Obligations:

The Company makes Provident Fund and Employees State Insurance scheme contributions which are defined contribution plans for qualifying employees Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company has recognized ? 164 33 lakhs (Y.E. 31.03 2024 Rs 157 55 lakhs) as contribution to Provident Fund and ? 49.75 lakhs (Y.E. 31.03.2024 Rs. 51.15 lakhs) as contribution to Employees State Insurance Scheme in the Statement of Profit and Loss These contributions have been made at the rates specified in the rules of the respective schemes and has been recognized in the Statement of Profit and Loss under the head Employee Benefit Expenses

18.1 The Company has borrowings from banks on the basis of security of current assets in excess of Rs. 5 crores. There are no material disagreements between the quarterly returns or statements of current assets filed by the Company with banks or financial institutions with the books of accounts duly reckoning the reasons for disagreements and reconciliations therefor. [Refer Note No 49]

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Hierarchy includes financial instruments measured using quoted prices This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the dosing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates If all significant inputs required to fair value an instrument are observable, the instrument is induded in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is induded in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Valuation technique used to determine fair value

The carrying amounts of trade receivables, trade payables, loans, deposits, advances, borrowings, cash and cash equivalents and other current finandal liabilities are considered to be the same as their fair values, due to their short-term nature.

33. Financial risk management

The Company’s activities expose it to market risk, liquidity risk and credit risk.

(A) Credit risk

Company faces credit risk from cash and cash equivalents, deposits with banks and financial institutions and unsecured trade receivables. The Company doesn''t face any credit risk with other financial assets

(i) Credit risk management

Credit risk on deposit is mitigated by depositing the funds in scheduled and reputed private sector banks.

For trade receivables, the primary source of credit risk is that these are unsecured Apart from this, the Company sells the products to customers only when the collection of trade receivables is certain and whether there has been a significant increase in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet date, based on the credit assessment the historical trend of low default is expected to continue. An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high ratings assigned by international and domestic credit rating agencies. Ratings are monitored periodically and the Company has considered the latest available credit ratings as at the date of approval of these financial statements.

(B) Liquidity risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal requirements

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity of 1 year.

(ii) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

(a) all non-derivative financial liabilities, and

(b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant

(C) Market risk

(i) Foreign currency risk

The company activities expose it to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and balance in EURO. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows

(ii) Equity Price Risk

Equity price risk is related to the change in market reference price of the investments in equity securities. The fair value of sum of the Company''s investments measure at fair value through other comprehensive income exposes to the Company to Equity price risks. These investments are subject to change in the market price of securities

The fair value of Company''s investment quoted equity securities as of 31⁶¹ March. 2025 and 31* March, 2024 was Rs 36,696.68 lakhs and Rs 34,820 57 lakhs respectively.

A 5% change in equity price of 31^s'' March, 2025 and 31^st March, 2024 would result in impact of Rs. 1,834 83 lakhs and Rs. 1,741.03 lakhs respectively.

(iii) Interest Rate Risk

a. Assets: The Company hold interest bearing assets in the form of fixed deposits with banks. The variation in interest risks is managed distributing deposits among wide base of banks.

34. Capital management (a) Risk management

The Company''s objectives when managing capital are to

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

36. Contingent liabilities

Other monies for which the Company is contingently liable

i) Income Tax Dues - 2.71

Future Cash flows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities. Management is hopeful of successful outcome in the proceedings.

Disputed tax dues are appealed before concerned appellate authorities. The Company is advised that the cases are likely to be disposed off in favour of the Company and hence no provision is considered necessary therefor.

37. Commitments Capital commitments

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

	As at	As at
	31.03.2025	31.03.2024
Property, plant and equipment (Net of advances)	175.05	771.35

38. Provision of Rs. 33.61 lakhs [Previous year Rs. 29.60 lakhs] for self-generation tax towards Wind Energy has been made. Cumulative disputed liability recognised as on 31.3.2025 is Rs. 336.49 lakhs (as on 31.3.2024 Rs. 302.88 Lakhs)

39 The financial statements were approved for issue by the Board of directors on 12^,h May, 2025.

41 The final dividend on shares is recorded as liability on the date of approval by the shareholders

Dividend declared by the company are based on the profits available for distribution.

The Board of Directors have recommended a dividend of Rs.2.50/- per equity share of the face value of Rs. 10 each, subject to the approval of the shareholders at the ensuing Annual General Meeting This will result in a total dividend outgo of Rs.76.79 Lakhs.

Details of the items included in numerator and denominator for computing the above ratios: a Capital Employed refers to sum of (Share Capital Reserves and Surplus - Intangible assets Lease liabilities Deferred tax liabilities Total debt-borrowing) b Earnings before interest and taxes = (Profits after current and deferred taxes Finance Cost Current taxes Deferred taxes)

c Earnings available for Debt servicing = (Net Profit after current and deferred taxes Depreciation Finance Costs (including Interest on Lease Liabilities) - Profit on sale of assets - Dividend Income - Interest Income)

46, There are no exceptional items during the year. For the previous year ended 31.03.2024, exceptional Item of Rs. 211.38 Lakhs represents net gain on compensation received on compulsory acquisition of land by the Government of Tamilnadu.

47, Code on Social Security, 2020 approved by Indian Parliament has not yet been notified. As such the Company is awaiting the notification of the subject rules. Once the same is notified the Company will assess the financial impact and give the appropriate impact in its financial statements in the period in which, the code becomes effective.

48, Additional Regulatory Disclosures as per Schedule III of Companies Act, 2013

i) There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act 1988 and rules made there under.

ii) There are no transactions not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act 1961.

iii) The company has not been declared as a wilful defaulter by any bank or financial institution or government or any government authority

iv) The company has not traded or invested in Crypto currency or virtual currency during the financial year ended March 31, 2025.

v) The Company has not (which are material either individually or in the aggregate) advanced or loaned or invested any funds (either from borrowed funds or share premium or any other sources or kind of funds) in any other person or entity, including foreign entity (“Intermediaries’ ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 on behalf of the Ultimate Beneficiaries.

vi) The Company has not (which are material either individually or in the aggregate) received any funds from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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

vii) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013

viii) The Company does not have any transactions with the struck-off companies for the year ended 31" March, 2025 and for the year ended 31^u March, 2024.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Lease liabilities are monitored within the Company ''s treasury function. All lease obligations are denominated in currency units.

51. The figures of the previous year have been regrouped/rearranged where ever necessary to confirm with current year figures.

All the figures have been rounded off to lakhs unless stated otherwise. Discrepancies, if any, in between the totals and the sum of the items forming part of such totals are due to rounding off in the financial statements. Wherever figures, are indicated as 0.00 lakhs, it represents value less than Rs. 0.01 lakhs due to rounding off to the nearest lakhs.

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Mar 31, 2024

Terms and rights attached to equity shares

The company has one class of equity shares having a par value of Rs.10 each. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Assumptions regarding future mortality for pension and medical benefits are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into an average life expectancy in years for a pensioner retiring age.

(v) Brief description of the Plans & risks

These plans typically expose the Company to actuarial risks such as: Investment risk, interest risk, longevity risk and salary risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount which is determined with reference to market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, other debt instruments and equity shares of listed companies.

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''s debt instruments, if any.

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.

Salary risk:

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

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

18.1 The Company has borrowings from banks on the basis of security of current assets in excess of Rs. 5 crores. There are no material disagreements between the quarterly returns or statements of current assets filed by the Company with banks or financial institutions with the books of accounts duly reckoning the reasons for disagreements and reconciliations therefor. [Refer Note No.50].

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Financial Instruments & Risk Management

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Valuation technique used to determine fair value

The carrying amounts of trade receivables, trade payables, loans, deposits, advances, borrowings, cash and cash equivalents and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

33. Financial risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk.

(A) Credit risk

Company faces credit risk from cash and cash equivalents, deposits with banks and financial institutions and unsecured trade receivables. The Company doesn''t face any credit risk with other financial assets

(i) Credit risk management

Credit risk on deposit is mitigated by depositing the funds in scheduled and reputed private sector banks.

For trade receivables, the primary source of credit risk is that these are unsecured. The Company faces the risk of delayed payments from TNEB - to whom it supplies power. Apart from this, the Company sells the products to customers only when the collection of trade receivables is certain and whether there has been a significant increase in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet date, based on the credit assessment the historical trend of low default is expected to continue. An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high ratings assigned by international and domestic credit rating agencies. Ratings are monitored periodically and the Company has considered the latest available credit ratings as at the date of approval of these financial statements.

(ii) Provision for expected credit losses for trade receivables

The Company provides for expected credit loss based on the following:

Year ended 31.03.2024:

Expected credit loss for trade receivables under simplified approach

The Company does not have any long outstanding receivable balances, except in the case of the agency and gears divisions, for which allowance for expected credit loss is created.

Amount (Rs. In Lakhs)

Loss allowance as at 31.03.2023 180.92

Changes in loss allowance (11.60)

Loss allowance as at 31.03.2024 169.32

(B) Liquidity risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal requirements.

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity of 1 year.

(ii) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

(a) all non-derivative financial liabilities, and

(b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

Foreign currency risk

The company activities expose it to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and balance in Swiss FRANC. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

34. Capital management (a) Risk management

The Company''s objectives when managing capital are to

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Company is debt free currently and it intends to maintain an optimal gearing ratio for optimising shareholder value

38. Provision of Rs. 29.60 lakhs [Previous year Rs.24.26 lakhs] for self generation tax towards Wind Energy has been made. Cumulative disputed liability recognised as on 31.3.2024 is Rs 302.88 lakhs (as on 31.3.2023 Rs.273.28 Lakhs)

39. The financial statements were approved for issue by the Board of directors on 29^th May, 2024.

40. The Company has ensured the health and safety of the employees as prescribed under the Factories Act, 1948. The Company has incurred the following expenditure during the year in this regard.

41. The final dividend on shares is recorded as liability on the date of approval by the shareholders

Dividend declared by the company are based on the profits available for distribution.

The Board of Directors have recommended a dividend of Rs.7/- per equity share of the face value of Rs. 10 each, subject to the approval of the shareholders at the ensuing Annual General Meeting. This will result in a total dividend outgo of Rs.215.00 Lakhs.

47. Exceptional Item of Rs. 211.38 Lakhs represents net gain on compensation received on compulsory acquisition of land by the Government of Tamilnadu. For the previous year exceptional item of Rs. 420.25 Lakhs represents net gain on compensation received on compulsory acquisition by National Highway Authority of India.

48. The three labour codes, the Occupational Health, Safety and Working Conditions Code 2020, the Industrial Relations Code 2020 and the Code on Social Security 2020 have been passed by the Parliament and have also received the assent of the President of India on 28^th September, 2020. However, the date on which these Codes will come into effect has not been notified. The Company will assess the impact of these Codes and will record any related impact in the period these Codes become effective.

49. Additional Regulatory Disclosures as per Schedule III of Companies Act, 2013

(i) There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act 1988 and rules made there under.

(ii) There are no transactions not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(iii) The company has not been delcared as a willful defaulter by any bank or financial institution or government or any government authority

(iv) The company has not traded or invested in Crypto currency or virtual currency during the financial year ended March 31,2024.

(v) The Company has not (which are material either individually or in the aggregate) advanced or loaned or invested any funds (either from borrowed funds or share premium or any other sources or kind of funds) in any other person or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 on behalf of the Ultimate Beneficiaries.

(vi) The Company has not (which are material either individually or in the aggregate) received any funds from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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

(vii) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013

(viii) The Company does not have any transactions with the struck-off companies for the year ended 31^st March, 2024 and for the year ended 31^st March, 2023.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Lease liabilities are monitored within the Company''s treasury function. All lease obligations are denominated in currency units.

52. The figures of the previous year have been regrouped/rearranged where ever necessary to confirm with current year figures.

All the figures have been rounded off to lakhs unless stated otherwise. Discrepancies, if any, in between the totals and the sum of the items forming part of such totals are due to rounding off in the financial statements. Wherever figures, are indicated as 0.00 lakhs, it represents value less than Rs. 0.01 lakhs due to rounding off to the nearest lakhs.

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Mar 31, 2018

Terms and rights attached to equity shares:

The Company has one class of equity shares having a par value of Rs.10 each. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

i) General reserve: Part of retained earnings was earlier utilised for declaration of dividends as per the erstwhile Companies Act, 1956. This is available for distribution to share holders.

ii) Retained earnings: Company''s cumulative earnings since its formation minus the dividends/ capitalisation and earnings transferred to general reserve.

iii) Securities Premium: Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

iv) FVOCI - Equity instruments: The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

Assumptions regarding future mortality for pension and medical benefits are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into an average life expectancy in years for a pensioner retiring at age.

(iv) Brief description of the Plans & risks

These plans typically expose the Company to actuarial risks such as : Investment risk, interest risk, longetivity risk and salary risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount which is determined with reference to market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, other debt instruments and equity shares of listed companies.

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''s debt instruments, if any.

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.

Salary risk:

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

(v) Sensitivity analysis (To be included for each defined benefit obligation)

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is: Impact on defined benefit obligation

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

** Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. The entire closing balance represents the principal amount payable to these enterprises. There are no interests due or outstanding on the same.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year.

The company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Valuation technique used to determine fair value

The carrying amounts of trade receivables, trade payables, loans, deposits, advances, borrowings, cash and cash equivalents and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

1. FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to credit risk, liquidity risk and market risk.

(A) Credit risk

Company faces credit risk from cash and cash equivalents, deposits with banks and financial institutions and unsecured trade receivables. The Company doesn''t face any credit risk with other financial assets.

(i) Credit risk management

Credit risk on deposit is mitigated by depositing the funds in public sector banks.

For trade receivables, the primary source of credit risk is that these are unsecured. The Company faces the risk of delayed payments from TNEB - to whom it supplies power. Apart from this, the Company sells the products to customers only when the collection of trade receivables is certain and whether there has been a significant increase in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet date, based on the credit assessment the historical trend of low default is expected to continue. An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment. Historical trends showed as at the transition date and 31^st March, 2016 Company had no significant credit risk.

(ii) Provision for expected credit losses for trade receivables

The Company provides for expected credit loss based on the following:

Expected credit loss for trade receivables under simplified approach

(B) Liquidity risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal requirements.

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity of 1 year.

(ii) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency risk

The Company activities exposes it to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

2. CAPITAL MANAGEMENT

(a) Risk management

The Company''s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, The company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

3. FIRST-TIME ADOPTION OF IND AS Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31^st March, 2018, the comparative information presented in these financial statements for the year ended 31^st March, 2017 and in the preparation of an opening Ind AS balance sheet at 1^st April, 2016 (The company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following notes.

A. Exemptions and exceptions availed

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

A.1 Ind AS optional exemptions A.1.1 Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities.

Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

A.1.2 Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1^st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI;

- Expected credit loss on delayed risk of trade receivable recovery

B: Notes to first-time adoption:

Note 1: Fair valuation of investments

Under Previous GAAP, investment in equity instruments were carried at nominal value, under the Ind-AS same investments are carried at FVOCI, Consequent to this change, the amount of investments increased by INR 1646.78 as at 31^st March, 2017 (1^st April, 2016 - INR 5,910.2).

Note 2: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year.

Note 3: Revenue

Reassessment of revenue recognition has been carried out in accordance with Ind AS 18.

Note 4: Expected Credit Loss

As per Ind AS 109, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. As a result, a provision of Rs. 28.10 Lakhs has been created for the year ended March 31, 2018 (March 31, 2017: Rs. 14.51 Lakhs, April 1, 2016: Rs. 25.12 Lakhs)

Note 5: Deferred Taxes

Deferred tax have been recognised on the adjustments made on transition to Ind AS and on adoption of the balance sheet approach.

4. Provision of Rs. 27.40 lakhs [Previous year Rs. 128.04 lakhs] for self generation tax towards Wind Energy has been made.

5. The financial statements were approved for issue by the Board of directors on 29^th May, 2018.

6. The company has ensured the health and safety of the employees as prescribed under the Factories Act, 1948. The company has incurred the following expenditure during the year in this regard.

7. The Board of Directors have recommended a dividend of Rs. 2.50 each per equity share of the face value of Rs.10 each, subject to the approval of the shareholders at the ensuing Annual General Meeting.

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Mar 31, 2017

1. NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT MARCH 31, 2017

1. Provision for all liabilities including depreciation is neither inadequate nor more than what is necessary.

2. The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realized in the ordinary course of business.

3. a) The Company has not given any guarantee on behalf of the Directors or other Officers.

b) Amounts due from the Directors or other Officers of the Company either severally or jointly with any other person is Rs. Nil (Previous year Nil ).

16. Related party disclosure (As identified by the Management) as per AS 18 i. Related party Relationships:

a) Key Management personnel : Sri. N.R.Selvaraj, Managing Director

b) Other Related Parties : Adwaith Lakshmi Industries Ltd

Adwaith Textiles Ltd

Harshini Textiles Ltd

Lakshimi Caipo Industries Ltd

Lakshmi Cargo Company Ltd

Lakshmi Electrical Control Systems Ltd

Lakshmi Electrical Drives Ltd

Lakshmi Life Sciences Ltd

Lakshmi Machine Works Ltd

Lakshmi Precision Tools Ltd

Lakshmi Ring Travellers (Coimbatore) Ltd

Lakshmi Technology and Engineering Industries Ltd

LCC Cargo Holdings Ltd

Quattro Engineering India Ltd

Revantha Services Ltd

SKDC Consultants Ltd

Starline Travels Ltd

The Lakshmi Mills Co. Ltd

Titan Paints and Chemicals Ltd

Veejay Syntex Pvt. Ltd

Veejay Yarns and Fabrics Pvt. Ltd

2. The interest subsidy due on the TUFS loan amounting to Rs. Nil (Previous Year Rs.12.35 lakhs) has been reflected under the head Income receivable.

3. The Company has carried out an exercise to ascertain the impairment if any in the carrying value of fixed assets. This has not revealed any impairment during the year.

4. The Company has not entered into any derivative transactions during the year under report.

5. Figures have been rounded off to lakh of rupees & previous year''s figures have been regrouped wherever necessary.

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Mar 31, 2016

1. Provision for all liabilities including depreciation is neither inadequate nor more than what is necessary.

2. The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realized in the ordinary course of business.

3. a) The Company has not given any guarantee on behalf of the Directors or other Officers.

b) Amounts due from the Directors or other Officers of the Company either severally or jointly with any other person is Rs. Nil (Previous year Nil ).

4. Earnings in Foreign Exchange :

F O B Value of export - Cotton Yarn : Rs.1576.08 Lakhs (Previous year- Rs. 221.51 Lakhs )

5. Income tax assessment up to assessment year 2013-2014 (year ending 31.03.2013) has been completed.

6. The figure of Rs. 65.26 Lakhs shown under the exceptional item in the statement of Profit and loss represents the write off of the carrying amount of investments in Pugoda Textiles Lanka Ltd, the management of which was vested with the Government of Sri Lanka, net of the compensation of Rs. 15.38 Lakhs awarded by the Compensation Tribunal of Sri Lanka. The compensation receivable is recognized as income receivable under the head Other Current Assets in the Balance Sheet. However the company appealed for a higher compensation which is pending for disposal.

7. Commitments pending on Capital Goods purchase as on 31^st March, 2016 is Rs.811.99 Lakhs (Previous year Rs.349.65 Lakhs.)

We have applied for extension of time for fulfillment of the Export Obligation for 2 more years. In earlier years we have furnished the details of Export Obligation (EO) alone. This year we have furnished the figures of the annual average of exports to be maintained and EO added together.

8. Deferred Tax:

i. Deferred tax has been provided in accordance with Accounting Standard 22 - Accounting for Taxes on Income.

9. Leave encashment benefits have been provided as per the rules of the Company based on actuarial valuation. No separate fund has been created. Amount charged to Profit and Loss account during the year is Rs. 22.71 lakhs (Previous year Rs.16.08 lakhs)

10. The borrowing cost Rs. Nil (Previous Year Rs. Nil ) is added to the cost of fixed assets purchased during the year as per AS-16.

11. The interest subsidy due on the TUFS loan amounting to Rs. 12.35 lakhs (Previous Year Rs.33.67 lakhs) has been reflected under the head Income receivable.

12. The Company has carried out an exercise to ascertain the impairment if any in the carrying value of fixed assets. This has not revealed any impairment during the year.

13. The Company has not entered into any derivative transactions during the year under report.

14. Figures have been rounded off to lakh of rupees & previous year''s figures have been regrouped wherever necessary

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Mar 31, 2015

1. Provision for all liabilities including depreciation is neither inadequate nor more than what is necessary.

2. The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realised in the ordinary course of business.

3. a) The Company has not given any guarantee on behalf of the Directors or other Officers.

b) Amounts due from the Directors or other Officers of the Company either severally or jointly with any other person is Nil (Previous year Nil ).

4. Earnings in Foreign Exchange :

FOB Value of export - Cotton Yarn : Rs.221.51 Lakhs (Previous year- Rs. 62.93 Lakhs )

5. Income tax assessment upto assessment year 2012-2013 (year ending 31.03.2012) has been completed.

6. Details of dues to Micro, Small and Medium Enterprises as per MSMED Act, 2006

7. The Company is holding 11,25,000 equity shares of SL Rs.10/- each in Pugoda Textiles Lanka Limited (PTLL). The government of Srilanka has been vested with the administration and management of the affairs of the company through the competent authority appointed by them. The Company has filed an application for compensation to the competent authority, which is yet to be finalised.

8. Commitments pending on Capital Goods purchase as on 31st March, 2015 is Rs.349.65 Lakhs (Previous year Rs.1583.45 Lakhs.)

9. Contingent liability not provided for in the accounts is :

31.03.2015 31.03.2014

i) For Export/Domestic bills Discounted Rs. in Lakhs Nil 25.28

ii) Service Tax appeals Rs. in Lakhs 156.99 156.99

iii) Export obligation under EPCG licenses is to be fulfilled by or before the end of following financial years:

Note: We have applied for extension of time for fulfillment of the balance amount of Rs.2930.74 Lakhs not fulfilled in 2014-15 for one year with 10% additional obligation. Accordingly the Export Obligation to be fulfilled including the original EO for 2015-16 is given above.

10. Deferred Tax:

i. Deferred tax has been provided in accordance with Accounting Standard 22 - Accounting for Taxes on Income.

11. Related party disclosure (As identified by the Management) i. Related party Relationships:

a) Key Management personnel :

N.R.Selvaraj, Wholetime Director

S. Ravindran, Chief Financial Officer

S.K.Radhakrishnan, Company Secretary

b) Other Related Parties :

Adwaith Textile Ltd

Adwaith Lakshmi Industries Ltd

Harshini Textiles Ltd

Lakshimi Caipo Industries Ltd

Lakshmi Cargo Company Ltd

Lakshmi Electrical Controls Ltd

Lakshmi Electrical Drives Ltd

Lakshmi Life Sciences Ltd

Lakshmi Machine Works Ltd

Lakshmi Precision Tools Ltd

Lakshmi Ring Travellers (Coimbatore) Ltd

Lakshmi Technology and Engineering Ltd

Lakshmi Vignesh Corporate Services Ltd

LCC Cargo Holdings Ltd

Quattro Engineering India Ltd

Revantha Builders Ltd

SKDC Consultants Ltd

Starline Travels Ltd

Titan Paints and Chemicals Ltd

Veejay Syntex Pvt. Ltd

Veejay Yarns and Fabrics Pvt. Ltd

12. Leave encashment benefits have been provided as per the rules of the Company based on actuarial valuation. No separate fund has been created. Amount charged to Profit and Loss account during the year is Rs.16.08 lakhs (Previous year Rs.26.08lakhs)

13. The proposed dividend for the year 2014-15 is Rs. 76.79 lacs.(Excluding dividend distribution tax).The Dividend is being paid @ Rs.2.50 per share. The Company has no preference share capital.

14. The borrowing cost Rs. Nil (Previous Year Rs.0.94lakhs) is added to the cost of fixed assets purchased during the year as per AS-16.

15. The interest subsidy due on the TUFS loan amounting to Rs. 33.67 lakhs (Previous Year Rs. 71.52 lakhs) has been reflected under the head Income receivable.

16. In respect of an outstanding, consequent upon an order from Board for Industrial and Financial Reconstruction (BIFR), the Company was entitled to receive only a part amount in satisfaction of the outstanding. The amount short realized is written off and it is reflected under "Exceptional item".

17. The Company has carried out an exercise to ascertain the impairment if any in the carrying value of fixed assets. This has not revealed any impairment during the year.

18. The Company has not entered into any derivative transactions during the year under report.

19. Figures have been rounded off to lakh of rupees & previous year's figures have been regrouped wherever necessary.

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Mar 31, 2014

1. Figures have been rounded off to lakh of rupees & previous year''s figures have been regrouped wherever necessary.

2. Provision for all liabilities including depreciation is neither inadequate nor more than what is necessary.

3. The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realised in the ordinary course of business.

4. a) The Company has not given any guarantee on behalf of the Directors or other Officers.

5. Income tax assessment upto assessment year 2011-2012 (year ending 31.03.2011) has been completed.

6. The Company is holding 11,25,000 equity shares of SL Rs.10/- each in Pugoda Textiles Lanka Limited (PTLL). The government of Srilanka has been vested with the administration and management of the affairs of the company through the competent authority appointed by them. The Company has filed an application for compensation to the competent authority, which is yet to be finalised.

7. Commitments pending on Capital Goods purchase as on 31st March, 2014 is Rs.1583.45 Lakhs (Previous year Rs.1320.70 Lakhs.)

8. Contingent liability not provided for in the accounts is :

31.03.2014 31.03.2013

i) For Export/Domestic bills Discounted Rs. in Lakhs 25.28 41.47

ii) Service Tax appeals Rs. in Lakhs 156.99 156.99

iii) Export obligation under EPCG licenses is to be fulfilled by or before the end of following financialyears:

Note: We have applied for extension of time for fulfillment of the balance amount of Rs.4153.63 Lakhs not fulfilled in 2013-14 for one year with 10% additional obligation. Accordingly the Export Obligation to be fulfilled including the original EO for 2014-15 is given above.

9. Deferred Tax:

i. Deferred tax has been provided in accordance with Accounting Standard 22 - Accounting for Taxes on Income.

10. Leave encashment benefits have been provided as per the rules of the Company based on actuarial valuation. No separate fund has been created. Amount charged to Profit and Loss account during the year is Rs. 26.08 lakhs (Previous year Rs. 34.15 Lakhs)

11. Amount of contribution to Employees Provident Fund during the year is Rs. 94.59 Lakhs (Previous Year Rs.84.25 Lakhs)

12. The borrowing cost Rs. 0.94 Lakhs (Previous Year Rs.14.34 Lakhs) is added to the cost of fixed assets purchased during the year as per AS-16.

13. The interest subsidy due on the TUFS loan amounting to Rs. 71.52 Lakhs (Previous Year Rs.30.46 Lakhs) has been reflected under the head Income receivable.

14. The Company has carried out an exercise to ascertain the impairment if any in the carrying value of fixed assets. This has not revealed any impairment during the year.

15. The Company has not entered into any derivative transactions during the year under report.

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Mar 31, 2013

1. Figures have been rounded off to lakh of rupees & previous year''s figures have been regrouped wherever necessary.

2. Provision for all liabilities including depreciation is neither inadequate nor more than what is necessary.

3. The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realised in the ordinary course of business.

4. a) The Company has not given any guarantee on behalf of the Directors or other Officers.

b) Amounts due from the Directors or other Officers of the Company either severally or jointly with any other person is Rs.Nil (Previous year Rs. Nil).

c) i) a) Amounts due at the end of the year from Private Companies in which the Directors are interested as Directors are Rs.0.19 lakhs ( Previous year - Rs. Nil )

b) Amounts due at the end of the year from Firms in which the Directors are Partners are Rs.lakhs Nil (Previous year Rs. Nil ).

ii) Maximum amount due from the above companies at any time during the currency of the year is Rs. 0.34 lakhs (Previous year Rs. 0.17 lakhs )

5. Earnings in Foreign Exchange :

F O B Value of export - Cotton Yarn : Rs.54.23 Lakhs (Previous year- Rs. 130.75 Lakhs )

6. Income tax assessment upto assessment year 2010-2011 (year ending 31.03.2010) has been completed.

7. The Company is holding 11,25,000 equity shares of SL Rs.10/- each in Pugoda Textiles Lanka Limited (PTLL). The government of Srilanka has been vested with the administration and management of the affairs of the company through the competent authority appointed by them. The Company has filed an application for compensation to the competent authority, which is yet to be finalised.

8. Commitments pending on Capital Goods purchase as on 31st March, 2013 is Rs.1320.70 Lakhs.

9. Contingent liability not provided for in the accounts is :

31.03.2013 31.03.2012

i) For Export/Domestic bills Discounted Rs. in Lakhs 41.47 Nil

ii) Service Tax appeals Rs. in Lakhs 156.99 156.99

iii) Income Tax Rs. in Lakhs 38.45 Nil

iv) Export obligation under EPCG licenses is to be fulfilled by or before the end of following financial years:

10. Deferred Tax:

i. Deferred tax has been provided in accordance with Accounting Standard 22 - Accounting for Taxes on Income.

ii. The break-up of deferred tax assets / liabilities for the current year is as under:

11. Related party disclosure ( As identified by the Management) i. Related party Relationships:

a) Subsidiary

b) Other Related Parties Lakshmi Machine Works Ltd

Lakshmi Cargo Company Ltd Quattro Engineering India Ltd

12. Leave encashment benefits have been provided as per the rules of the Company based on actuarial valuation. No separate fund has been created. Amount charged to Profit and Loss account during the year is Rs. 34.15 lakhs (Previous year Rs. 8.13 lakhs)

13. Amount of contribution to Employees Provident Fund during the year is Rs. 84.25 lakhs (Previous Year Rs.71.58 lakhs)

14. Foreign Exchange fluctuation of Rs. 12.71 lakhs (Previous year Rs.40.92 lakhs) relating to Foreign Currency Term Loan availed for purchase of wind energy generator has been added to the cost of wind mill.

15. The borrowing cost Rs. 14.34 lakhs (Previous Year Rs.22.30 lakhs) is added to the cost of fixed assets purchased during the year as per AS-16.

16. The interest subsidy due on the TUFS loan amounting to Rs 30.46 lakhs (Previous Year Rs.85.42 lakhs) has been reflected under the head Income receivable.

17. The Company has carried out an exercise to ascertain the impairment if any in the carrying value of fixed assets. This has not revealed any impairment during the year.

18. The Company has not entered into any derivative transactions during the year under report.

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Mar 31, 2012

1. Figures have been rounded off to lakh of rupees & previous year's figures have been regrouped wherever necessary.

2. Provision for all liabilities including depreciation is neither inadequate nor more than what is necessary.

3. The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realised in the ordinary course of business.

4. a) The Company has not given any guarantee on behalf of the Directors or other Officers.

b) Amounts due from the Directors or other Officers of the Company either severally or jointly with any other person is Nil (Previous year Nil).

c) i) a) Amounts due at the end of the year from Private Companies in which the Directors are interested as Directors are Nil ( Previous year - Rs.0.09 Lakhs )

b) Amounts due at the end of the year from Firms in which the Directors are Partners are Nil (Previous year Nil).

ii) Maximum amount due to the above companies at any time during the currency of the year is Rs.0.17 Lakhs (Previous year Rs. 0.63 Lakhs)

5. Earnings in Foreign Exchange :,

F O B Value of export - Cotton Yarn : Rs.130.75 Lakhs (Previous year- Waste Rs. 58.28 Lakhs )

6. Income tax assessment upto assessment year 2009-2010 (year ending 31.03.2009) has been completed.

7. The Company is holding 11,25,000 equity shares of SL Rs.10/- each in Pugoda Textiles Lanka Limited (PTLL). The government of Srilanka has been vested with the administration and management of the affairs of the company through the competent authority appointed by them. The Company has filed an application for compensation to the competent authority, which is yet to be finalised.

8. Commitments pending on Capital Goods purchase as on 31st March, 2012 is Rs.1462.18 Lakhs.

9. Contingent liability not provided for in the accounts is :

31.03.2012 31.03.2011

i) For Export/Domestic bills Discounted Rs. in Lakhs Nil 62.40

ii) Service Tax appeals Rs. in Lakhs 156.99 156. 99

iii) Export obligation under EPCG licenses is to be fulfilled by or before the end of following financia years:

10. Deferred Tax:

i. Deferred tax has been provided in accordance with Accounting Standard 22 - Accounting for Taxes on Income .

11. Leave encashment benefits have been provided as per the rules of the Company based on actuarial valuation. No separate fund has been created. Amount charged to statement of Profit and Loss during the year is Rs. 8.13 Lakhs (Previous year Rs. 7.85 Lakhs)

12. Amount of contribution to Employees Provident Fund during the year is Rs.71.58 Lakhs (Previous Year Rs.58.46 Lakhs)

13. The Company has taken a spinning mill on lease and the lease charges Rs. 9.93 lakhs has been charged to statement of Profit and Loss.(Previous year Rs.19.85 lakhs). The lease agreement has been terminated on 30th Sep, 2011.

14. Foreign Exchange fluctuation of Rs.40.92 Lakhs relating to Foreign Currency Term Loan availed for purchase of wind energy generator has been added to the cost of wind mill. .

15. The borrowing cost Rs. 22.30 Lakhs (Previous Year Rs.9.23 Lakhs) is added to the cost of fixed assets purchased during the year as per AS-16.

16. The interest subsidy due on the TUFS loan amounting to Rs 85.42 Lakhs (Previous Year Rs.166.98 Lakhs) has been accounted under the head Income receivable.

17. The Company has carried out an exercise to ascertain the impairment if any in the carrying value of fixed assets. This has not revealed any impairment during the year.

18. The Company has not entered into any derivative transactions during the year under report.

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Mar 31, 2011

1. Figures have been rounded off to the nearest rupee & previous year's figures have been regrouped wherever necessary.

2. Provision for all liabilities including depreciation is neither inadequate nor more than what is necessary.

3. The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realised in the ordinary course of business.

4. a) The Company has not given any guarantee on behalf of the Directors or other Officers.

b) Amounts due from the Directors or other Officers of the Company either severally or jointly with any other person is Rs. Nil (Previous year Rs. Nil).

c) i) a) Amounts due at the end of the year from Private Companies in which the Directors are

interested as Directors are Rs. 9,239/- (Previous year- Rs.Nil)

b) Amounts due at the end of the year from Firms in which the Directors are Partners are Rs. Nil (Previous year Rs. Nil).

ii) Maximum amount due to the above companies at any time during the currency of the year is Rs. 63,255/- (Previous year Rs.Nil)

5. Income tax assessment upto assessment year 2008-2009 (year ending 31.03.2008) has been completed.

6. The Company is holding 1,125,000 equity shares of SL Rs. 10/- each in Pugoda Textiles Lanka Limited (PTLL). The government of Srilanka has been vested with the administration and management of the affairs of the Company through the competent authority appointed by them. The Company has filed an application for compensation to the competent authority, which is yet to be finalised.

7. Secured loans from banks have been secured by hypothecation of movable properties of the company including Plant & Machinery and also by Equitable Mortgage of immovable properties by deposit of title deeds on pari passu basis.

8. Contingent liability not provided for in the accounts is:

31.03.2011 31.03.2010

i) For Export/Domestic bills Discounted 6,240,000 Nil

9. Deferred Tax:

i. Deferred tax has been provided in accordance with Accounting Standard 22 -Accounting forTaxes on Income.

iii. Deferred tax assets on Long term capital loss have not been recognised due to the uncertainty of the future income under that head.

iii. The undernoted companies constitute the " Group" in terms of Regulation 3 ( 1) ( e ) (i ) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, as amended, with effect from 09.09.2002.

1. Lakshmi Machine Works Limited

2. Lakshmi Technology & Engineering Industries Limited

3. Lakshmi Cargo Company Limited

4. Eshaan Enterprises Limited

5. Walzer Hotels and Resorts Limited.

10. Leave encashment benefits have been provided as per the rules of the Company based on actuarial valuation. No separate fund has been created. Amount charged to Profit and Loss account during the year is Rs. 639,702/- (Previous year Rs.488,659/-)

11. Amount of contribution to Employees Provident Fund during the year is Rs.5,845,983/- (Previous Year Rs.3,531,161/-)

12. The company has taken a spinning mill on lease and the lease charges Rs 1,985,400/- has been charged to Profit and Loss account.(Previous year Rs. 1,985,400/-).

13. Foreign Exchange fluctuation of Rs. 75,294/- relating to Foreign Currency Term Loan availed for purchase of wind energy generator has been added to the cost of wind mill. .

14. The borrowing cost of Rs.922,877/-(Previous Year Rs. 1,426,299) is added to the cost of fixed assets purchased during the year as per AS-16.

15. The interest subsidy due on the TUFS loan amounting to Rs.16,697,599/- (Previous Year Rs. 13,159,604/-) has been accounted under the head Income receivable.

16. Prior year income include reversal of provision for Brokerage Rs.281,468/-,Exgratia Rs.50,935/- Leave salary Rs.89,008/-, Hank Yarn obligation Rs.11,639/- and the amount received for Unutilised banking wind units Rs.725,334/-.

17. Prior year expenses include for Bonus of Rs.66,643/-, Consultation fees of Rs. 137,875/- and excess provision of TNEB interest reversed Rs.17,462/-.

18. The Company has carried out an exercise to ascertain the impairment if any in the carrying value of fixed assets. This has not revealed any impairment during the year.

19. The Company has not entered into any derivative transactions during the year under report.

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Mar 31, 2010

1. Figures have been rounded off to the nearest rupee & previous years figures have been regrouped wherever necessary.

2. Provision for all liabilities including depreciation is neither inadequate nor more than what is necessary.

3. The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realised in the ordinary course of business.

4. a) The Company has not given any guarantee on behalf of the Directors or other Officers.

b) Amounts due from the Directors or other Officers of the Company either severally or jointly with any other person is Rs. Nil (Previous year- Rs. Nil).

c) i) a) Amounts due at the end of the year from Private Companies in which our Directors are interested as Directors are Rs. Nil (Previous year- Rs.Nil)

b) Amounts due at the end of the year from Firms in which our Directors are Partners are Rs. Nil (Previous year-Rs. Nil).

ii) Maximum amount due to the above companies at any time during the currency of the year is Rs. Nil (Previousyear-Rs.Nil)

5. The Value and percentage of Raw Materials, Components and Spare parts consumed / issued

Particulars Indigenous Value % Imported Value %

6. Income tax assessment upto assessment year 2007-2008 (year ending 31.03.2007) has been completed.

7. Details of due to Micro, Small and Medium Enterprises as per MSMED Act, 2006 31.3.2010

1 The Principal amount and the interest due there on remaining rs unpaid to any supplier as at the end of year

a. Principal Amount unpaid 1,612,122

b. Interest Due Nil

2 Payment and Interest made to Micro, Small and Medium Enterprises beyond the appointed day during the year

a. Payment made beyond the Appointed date Nil

b. Interest paid beyond the Appointed date Nil

8 The amount of interest due and payable for the period of delay Nil in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under MSME Development Act, 2006

9 The amount of interest accrued and remaining unpaid at Nil the end of the year

10. The Company is holding 1,125,000 equity shares of SLRs. 10/- each in Pugoda Textiles Lanka Limited (PTLL). The government of Srilanka has been vested with the administration and management of the affairs of the company through the competent authority appointed by them. The Company has filed an application for compensation to the competent authority, which is yet to be finalised.

11. Secured loans from banks have been secured by hypothecation of movable properties of the company including Plant & Machinery and also by Equitable Mortgage of immovable properties by deposit of title deeds on pari passu basis.

12. Contingent liability not provided for in the accounts is:

31.03.2010 31.03.2009

i) For Export/ Domestic bills Discounted Nil 6,958,689

ii) Export obligation under EPCG licenses is to be fulfilled by or before the end of following financial years:

13. Deferred Tax:

i. Deferred tax has been provided in accordance with Accounting Standard 22 -Accounting for Taxes on Income.

ii. The break-up ofdeferred tax assets/liabilities forthecurrentyearisasunder: Rs.

Particulars Opening Balance Addition Reversed Closing Balance

Deferred tax Liability

Difference between book &

Income tax Depreciation 105,828,391 21,430,807 - 127,259,198

iii. Deferred tax assets on Long term capital loss have not been recognised due to the uncertainty of the future income under that head.

14. Related party disclosure (As identified by the Management) i. Related party Relationships:

a) Subsidiary :

b) Other Related Parties Lakshmi Machine Works Limited

ii) Transactions with Related Parties Rs.

Nature of Transactions Subsidiary Associates Other Related

& Joint Ventures Parties

Purchase of Fixed Assets 21,223,779

Purchases of Goods 37,119,652

Sale of Goods 2,234,688

Commission Receipts 23,156,273

Erection Charges Received 263,951

Others 14,024,168

Outstanding Balance

as on 31.3.2010

Payable 4,829,367

Receivable 72,416,541

iii. The undernoted companies constitute the " Group" in terms of Regulation 3 ( 1) ( e ) ( i ) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, as amended, with effect from 09.09.2002.

1. Lakshmi Machine Works Limited

2. Lakshmi Technology & Engineering Industries Limited

3. Lakshmi Cargo Company Limited

4. Eshaan Enterprises Limited

5. Walzer Hotels and Resorts Limited.

15. Leave encashment benefits have been provided as per the rules of the Company and on actuarial valuation. No separate fund has been created. Amount charged to Profit and Loss account during the year is Rs. 4,88,659/-(Previous year Rs.506,746/-)

16. Amount of contribution to Employees Provident Fund during the year is Rs.3,531,161 (Previous Year Rs.3,572,992/-)

17. The company has taken a spinning mill on lease and the lease charges of Rs.1,985,400/- has been charged to Profit and Loss account.(Previous year Rs. Nil).

18. Foreign Exchange fluctuation of Rs. 9,207,940/- relating to Foreign Currency Term Loan availed for purchase of wind energy generator has been reduced from the cost of wind mill. .

19. The borrowing cost of Rs.1,426,299/-(Previous Year Rs. 147,677/-) is added to the cost of fixed assets purchased during the year as per AS-16.

20. The interest subsidy due on the TUFS loan amounting to Rs. 13,159,604/- (Previous Year Rs. 15,694,268/-) has been accounted under the head Income receivable.

21. Excess provision of expenses reversed represent Rs. 49,621/- towards commission Rs. 246/-towards Hank Yarn obligation transfer and Rs. 8,480/-towards reimbursement of medical expenses.

22. Other income includes an amount of Rs. 5,012,655/- being the entitlement of concession in power tariff decided by the High Court during the year under report for our Jay Textiles Unit-Ill.

23. The Company has carried out an exercise to ascertain the impairment if any in the carrying value of fixed assets. This has not revealed any impairment during the year.

24. The Company has not entered into any derivative transactions during the year under report.