q) 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 liability

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.

r) 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.

s) 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.

t) 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

u) Other Accounting Standards Disclosures

There are no transactions and disclosures to be made both for the year under report and the previous year
presented, in respect of the following accounting standards:

Ind AS-102 - Share Payment, Ind AS-103 - Business Combinations, Ind AS-117/104-Insurance Contracts,
Ind AS-106-Exploration for and evaluation of Mineral Resources, Ind AS-110-Consolidated Financial
Statements, Ind AS-111-Joint Arrangements, Ind AS-112-Discloure of Interest in other Entities, Ind AS-114-
Regulatory Deferral Accounts, Ind AS-20-Accounting for Govt Grants and Disclosure of Govt Assistance,
Ind AS-27-Separate Financial Statement, Ind AS-28-Investment in Associates and Joint Ventures, Ind
AS29-Financial Reporting in Hyperinflationary Economies and Ind AS-41-Agriculture.

report and the comparable year 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 year/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.

(b) The Company has no other adjustments/impairment loss/ reversal in the value of property, plant and equipment
during the year and comparative year, other than that disclosed above.

(c) The Company has not revalued its intangible assets. Further the Company did not have any intangible assets
under development for any of the years reported herein. Therefore the disclosures mandated in respect of
intangible assets under development, as per Division II of Schedule III to the Companies Act, 2013, are not
applicable.

(d) There were no acquisition of assets through business combinations (including investment properties disclosed
in note no.5 ) during the year under report and for the figures for the comparable year. Further there were
no other adjustments in respect of Property, Plant and Equipment (including the related amortization and
impairment Loss or reversals) during the year under report and for the figures for the comparable year.

(e) The Company is maintaining proper records showing full particulars, including quantitative details of property,
plant and equipment (including intangible assets and investment property (disclosed in note no.5)).

The Company has a regular programme of physical verification of its property, plant and equipment by which all
property, plant and equipment (including investment property (disclosed in note no.5))are verified in a phased
manner over a period of three years. In accordance with this programme, during each of the year reported
herein, the management has verified property, plant and equipment (including investment property (disclosed
in note no.5)) and no material discrepancies were noticed on such verification.”

(f) For each of the reporting year, there was no temporarily idle property, plant and equipment . Further the details
of property, plant and equipment retired from active use/held for sale and classified as asset held for sale in
accordance with Ind AS 105 is disclosed in Note : 14 unless such property, plant and equipment is not ready
for sale as such and the carrying amount cannot be determined for the time being due to obligations/conditions,
the Company has to fulfill in future.

Note:

This information has been determined to the extent such parties have been identified on the basis of
information available with the Company.

39 Operating Segments

The Company’s main business segments namely “Textile” and “Rental services” meet the reportable segment
thresholds given in Ind AS 108 “Operating Segments” and hence disclosed respectively. This reporting
complies with the IndAS segment reporting principle.

The Company has discontinued its Textile operations and informed the exchanges on August 31, 2023.
Hence the Revenue and Profit/Loss arising from such Discontinued operations (Textile Activity) are disclosed
as “Discontinued Operations” in the financial results. The Revenue and Profit/Loss arising from such
Discontinued operations (Textile activity) relating to the entire period from April 01,2024 to March 31,2025
are disclosed as Discontinued Operations in the financial results along with the comparative informations.

The Company has given certain properties on operating lease arrangements. The leases are cancellable at the
option of either party to lease and may be renewed based on mutual agreement of the parties. The total lease
income recognised on such contracts for the year is Rs.662.73 Lakhs (Previous year Rs. 694.52 Lakhs).

The company has applied Ind AS 116 with the date of initial application of April 1, 2021. The company has
applied Ind AS 116 using the modified retrospective approach, under which the cumulative effect of initial
application is recognized in retained earnings at April 1,2021.

Company as a lessor

The Company is not required to make any adjustments on transition to Ind AS 116 for leases in which it acts as
a lessor.

Operating Lease Income

The Lease Agreement provides for an option to mutually renew the lease period for a further period as agreed
between the lessor and lessee

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

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

comprehensive income.

42 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

43 Financial Instruments
Capital management

The Company manages its capital to ensure that entities in the Company will be able to continue as going
concern, while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual operating plans and long-term
product and other strategic investment plans. The funding requirements are met through equity, long-term
borrowings and other short-term borrowings.

For the purposes of the Company’s capital management, capital includes issued capital, share premium and all
other equity reserves attributable to the equity holders.

b. Mandatorily measured at fair value through profit
or loss (FVTPL)

Derivative instruments ^- -

Financial risk management objectives

The treasury function provides services to the business, co-ordinates access to domestic and international
financial markets, monitors and manages the financial risks relating to the operations through internal risk
reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including
currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using natural hedging financial instruments and
forward contracts to hedge risk exposures. The use of financial derivatives is governed by the Company’s
policies approved by the board of directors, which provide written principles on foreign exchange risk, the use of
financial derivatives, and the investment of excess liquidity. The Company does not enter into or trade financial
instruments, including derivative financial instruments, for speculative purposes.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may
result from a change in the price of a financial instrument. The Company’s activities expose it primarily to the
financial risks of changes in foreign currency exchange rates and interest rates. The Company actively manages
its currency and interest rate exposures through its finance division and uses derivative instruments such as
forward contracts and currency swaps, wherever required, to mitigate the risks from such exposures. The use
of derivative instruments is subject to limits and regular monitoring by appropriate levels of management.

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange
rate fluctuations arise. The Company actively manages its currency rate exposures through a centralised treasury
division and uses natural hedging principles to mitigate the risks from such exposures. The use of derivative
instruments, if any, is subject to limits and regular monitoring by appropriate levels of management.

Forward foreign exchange contracts

It is the policy of the company wherever applicable to enter into forward foreign exchange contracts to cover (a)
repayments of specific foreign currency borrowings; (b) the risk associated with anticipated sales and purchase
transactions out to 6 months within 50% to 70% of the exposure generated.

Disclosure of hedged and unhedged foreign currency exposure

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities
at the end of the reporting period are as follows:

Foreign currency sensitivity analysis

Movement in the functional currencies of the various operations of the Company against major foreign currencies
may impact the Company’s revenues from its operations. Any weakening of the functional currency may impact
the Company’s cost of imports and cost of borrowings and consequently may increase the cost of financing
the Company’s capital expenditures. The foreign exchange rate sensitivity is calculated for each currency
by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign
exchange rates shift in the foreign exchange rates of each currency by 2%, which represents management’s
assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only
outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a
2% change in foreign currency rates.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk
because the exposure at the end of the reporting period does not reflect the exposure during the year. Further
the company is not exposed to foreign currency exposure during the FY:2024-25 and FY:2023-24.

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 and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to
align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are
applied. Further, in appropriate cases, the Company also effects changes in the borrowing arrangements to
convert floating interest rates to fixed interest rates.

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 change will impact profitability by INR. 5.49 lakhs for
the year (Previous year INR.8.27 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 and from its financing/ investing activities, including deposits with banks,
mutual fund investments, investments in debt securities and foreign exchange transactions. The Company has
no significant net concentration of credit risk with any counterparty.

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 receivables,
margin money and other financial assets excluding equity investments.

(a) Trade Receivables

Trade receivables are consisting of a large number of customers. The Company has credit evaluation
policy for each customer and, based on the evaluation, credit limit of each customer is defined. Wherever
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, the Company makes provision of expected credit losses on trade 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.

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.

45 Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to
Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules
2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall use only
such accounting software which has a feature of recording audit trail of each and every transaction, creating an
edit log of each change made in the books of accounts along with the date when such changes were made and
ensuring that the audit trail cannot be disabled.

The Company uses the accounting software “Tally” for maintaining books of accounts which has the facility of
recording audit trail (edit log). The Company has enabled audit trail (edit log) facility in such software. However,
the Company had not enabled the feature of recording audit trail (edit log) at the database level for the said
accounting software Tally to log any direct data changes on account of the recommendation that enabling the
same can impact database performance significantly.

46 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 and super annuation 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.

The total expense recognised in profit or loss of Rs. 1.27 Lakhs (for the year ended March 31,2024: Rs.2.32
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.

In view of the fact that the Company for preparing the sensitivity analysis considers the present value of the
defined benefit obligation which has been calculated using the projected unit credit method at the end of
the reporting period, which is the same as that applied in calculating the defined benefit obligation liability
recognised in the balance sheet.

(b) Compensated absences

Expense recognised during the year on non accumulating compensated absences is Rs. Nil (previous year Rs. Nil )
47 Additional regulatory and other information as required by the Schedule III to the Companies Act 2013

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

(i) 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.

(ii) The Company has been maintaining their books of accounts at the Registered Office in electronic mode in
server physically located in India. Daily backups are being taken regularly by the Company.

(iii) There are no proceeding initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Hence the disclosure
mandated in respect thereof are not applicable

(iv) The Company is not required to file any quarterly returns to bank.

(v) The Company is not declared a wilful defaulter by any bank or Financial Institution or other lender.

(vi) Relationship with Struck off Companies

On the basis of examination made by the company, the company does not have any transactions with companies
struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

(vii) There are no charges or satisfaction yet to be registered with Registrar of Companies beyond Statutory Period.

(viii) 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.

(ix) There were no amounts, required to be transferred, to the Investor Education and protection Fund by the
Company.

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

Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets
Reasons for Variation if more than 25%

Current Ratio

The variation in the Current Ratio is on account of the Increase in Current liabilities in the current year compared to
the previous year.

Debt Service Coverage Ratio

The variation in the Debt Service Ratio is on account of the higher loss in the current year compared to the losses in
the previous year.

Interest Coverage Ratio

The variation in the Interest Coverage Ratio is on account of the higher loss in the current year compared to the losses
in the previous year.

Inventory Turnover Ratio

The variation in the Inventory Turnover Ratio is on account of the textile operations being discontinued in the current year.
Net Capital Turnover Ratio

The variation in the Net Capital Turnover Ratio is on account of increase in Trade receivables Turnover Ratio along
with decrease in the Inventory Turnover Ratio in the current year compared to the previous year.

Net Profit Ratio

The variation in the Net Profit Ratio is on account of the higher loss in the current year compared to the losses in the
previous year.

Return on Capital Employed

The variation in the Return on Capital Employed is on account of the higher loss in the current year compared to the
losses in the previous year.

(xi) Compliance with approved Scheme(s) of Arrangements

There are no schemes approved by competent Authority in terms of section 230 to 237 of the companies Act, 2013

(xii) Utilisation of Borrowed funds and share premium:

(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium orany 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;

(B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the company shall:

(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,

Notes:

1. All related party transactions were made on terms equivalent to those that prevail in an arm’s length
transaction.

2. Outstanding balances at the year-end are unsecured and settlement takes place in cash/ transfer of assets.

3. For the year ended 31 March 2025 and 31 March 2024, the company has not recorded any Expected
Credit Loss provision in respect of receivables relating to amounts owed by related parties.

4. For the year ended 31 March 2025 and 31 March 2024, the company has not written-off any receivable
amounts owed by related parties. Further as at 31 March 2025 and 31 March 2024, there were no
outstanding Expected Credit Loss Provision in respect of amount owed by related parties.

5. There have been no guarantees provided or received by the company in respect of any related party
receivables or payables. Further there were no outstanding commitments in respect of any related parties.

6. For the year ended 31 March 2025 and 31 March 2024, there are no amounts incurred for provision of key
management personnel services that are provided by a separate entity.

For and on behalf of the board As per our report of even date attached

For M/s C S K PRABHU AND CO LLP
Sumanth Ramamurthi ^Nikhil G°vind ^Ramamur^thi (f_ormerly C S K PRABHU AND CO)

Chairman and Managing Director ^Director Chartered Accountants

DIN: 00002773 ^{DIN: 10}°89⁵9³ Firm Regn No. 002485S/S000197

D. Sabeetha P. Padmavathy Mahesh Prabhu

Company Secretary Chief Financial Officer Designated Partner

Membership No. 214194

Coimbatore UDIN :25214194BMOUPG3206

May 23, 2025