27.17. Provisions, Contingent liabilities and Contingent Assets:

Provisions are recognised when the Company has a present obligation (legal or constructive)
as a result of a past event, 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.

Contingent liability is a possible obligation arising from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the entity or a present obligation that arises from past
events but is not recognised because it is not probable that an outflow of resources
embodying economic benefits will be required to settle the obligation or the amount of the
obligation cannot be measured with sufficient reliability. The Company does not recognise
a contingent liability but discloses its existence in the standalone financial statements.

Contingent asset is not recognised in standalone financial statements since this may
result in therecognition of income that may never be realised. However, when the realisation
of income is virtually certain, then the related asset is not a contingent asset and is recognized.

27.23. Capital management:

The Company manages its capital to ensure that it 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 finances its operations by a combination of retained profit and bank
borrowings. The Company monitors the capital structure on the basis of total debt to equity and
maturity profile of the overall debt portfolio of the Company.

Only small portion of excess power was sold to outsiders during the year. No internal billing is
done for power adjusted for captive use. The expenses related to wind mills are not treated
separately and they are part of cost of yarn production.

The processing division is operating mainly for captive utilization of yarn division.

The above facts are reviewed regularly by the entity's chief operating decision maker and he has
decided that the company has only one reportable segment that is yarn manufacturing during the
year.

Disclosure in respect of Related Party Transactions during the year

1. Purchase of goods/assets includes Kanagathara Wind Farms c 0; (Previous year
C 37.85Lakhs). Amarjothi Power Generation and Distribution Company Limited
C 1.35 Lakhs; (Previous year C 34.36) N Rajan Green Energy C 19.24 Lakhs ;

(Previous Year NIL)

2. Sale of Goods/assets includes RPJ Textiles Limited 1328.45 Lakhs; (Previous year
2766.57 Lakhs); Texknit 1320.24 Lakhs (Previous year 503.86Lakhs);

Amarjothi Designs ‘ NIL (Previous year 1181.01 Lakhs)

3. Interest paid includes Sri.R.Premchander 134.24 Lakhs (Previous year 114.22

Lakhs).Sri.R.Jaichander 495.79 Lakhs (Previous year 415.76 Lakhs) Sri.R.Jaichander
HUF 88.77 (Previous Year - 41.99).

4. Remuneration to Key Managerial Personnel includes Sri.R.Premchander 89.01 Lakhs
(Previous year 78.19 Lakhs).Sri.R.Jaichander 89.01 Lakhs (Previous year 78.19
Lakhs).Sri.K.Elango 9.90 Lakhs (Previous year 8.20 Lakhs). Smt.M.Mohana Priya 6..97
Lakhs (Previous year 5.64Lakhs).

5. Outstanding receivable from Related parties includes) Texknit 409.90 Lakhs; (Previous
year 224.99 Lakhs) RPJ Textiles Limited ‘ NIL (Previous year ‘1835.16 Lakhs) Texin India
‘ NIL (Previous year ‘39.57 Lakhs) ; Amarjothi Designs ‘ NIL (Previous year 146.72 Lakhs).

6. Outstanding payables to Related parties includes Sri.R.Premchander c 256.13 Lakhs;
(Previousyear 910.63 Lakhs). Sri.R.Jaichander C 3475.36 Lakhs; (Previousyear 2702.77
Lakhs).Sri.R.Jaichander-HUF 600.98 Lakhs (previous Year - 462.28) ; RPJ Textiles Limited
C 2.08 Lakhs (Previous year ‘NIL)

27.32. Other statutory information:

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

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

c) The Company has not revalued its property, plant and equipment (including right-of-use
assets) or intangible assets or both during the current or previous year.

d) The Company has not traded or invested in Crypto currency or virtual currency during the
financial year.

e) No funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other persons or
entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded
in writing or otherwise, that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or

- provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

f) No funds have been received by the Company from any persons or entities, including foreign
entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise,
that the Company shall:

- directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding
Party or

- provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries.

g) The Company does not have any such transaction which is not recorded in the books of
accounts that has been surrendered or disclosed as income during the year in the tax
assessments under the Income-tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income-tax Act, 1961).

h) The Company has not have been declared as wilful defaulters by any bank or financial
institution or government or any government authority.

i) The Company has complied with the number of layers prescribed under the Companies
Act, 2013.

j) The Company has not entered into any scheme of arrangement which has an accounting
impact on current or previous financial year.

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

l) The Company has borrowings from banks on the basis of security of current assets and
the quarterly returns or statements of current assets filed by the Company with banks are
in agreement with the books of accounts.

The company shall explain the items included in numerator and denominator for computing the above ratios.
Further explanation shall be provided for any change in the ratio by more than 25% as compared to the
preceding year.

27.34. Previous year figures have been regrouped and reclassified wherever necessary to conform to
current year's classification.

As per my report of even date On behalf of the Board of Directors

For V.NARAYANASWAMI & CO., R. PREMCHANDER R.JAICHANDER

FRN NO.027417S Managing Director Whole Time Director

Proprietor DIN : 00390795 DIN : 00390836

V.NARAYANASWAMI, M.A., F.C.A.

Chartered Accountant (Sd/-) MOHANA PRIYA.M (Sd/-) K.ELANGO

Member ship No.023661 Company Secretary Chief Financial Officer

Pl_{ace :} Ti_rupur Membership No: 47463

Date : 30/05/2025