1.3.17 Provisions, Contingent Liabilities and Contingent Assets
Provisions

A provision is recorded when the Company has a present legal or constructive obligation as a result
of past events, it is probable that an outflow of resources will be required to settle the obligation and
the amount can be reasonably estimated.

Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the end of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that reflects current market assessments of the time value
of money and the risks specific to the liability. The increase in the provision due to the passage of time
is recognized as interest expenses.

Contingent Liabilities

Wherever there is a possible obligation that arises 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
recognized 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.

Contingent assets are neither recognized nor disclosed.

1.3.18 Cash flow statement

Cash flows are reported using the 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. The cash flows from operating, investing and financing activities of the Company are
segregated based on the available information.

Cash and Cash Equivalents

Cash and Cash equivalents comprise cash in hand, demand deposits with banks or corporations and
short term highly liquid investments (original maturity less than 3 months) that are readily convertible
into known amounts of cash and are subject to an insignificant risk of change in value.

1.3.19 Events after reporting period

Where events occurring after the Balance sheet date provide evidence of conditions that existed at
the end of the reporting period, the impact of such events is adjusted within the financial statements.
Otherwise, events after the Balance Sheet date of material size of nature are only disclosed.

1.3.20 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker.

Note B: Terms / rights attached to Equity Shares:

The Company has equity shares having a nominal value of Rs.5 each. All equity shares rank equally with regard
to dividend and share in the Company’s residual assets. Each holder of equity shares is entitled to one vote per
share. The equity shares are entitled to receive dividend as declared from time to time. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except
interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
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 shareholders.

Note 1:

The vehicle loan from Bank carries interest at the rate of 8.92% p.a and is repayable in 60 equal installments from
January 2025. Loan is secured against hypothecation of the vehicle.

Note 2:

The vehicle loan from Bank carries interest at the rate of 8.80% p.a and is repayable in 84 equal installments from
June 2024. Loan is secured against hypothecation of the vehicle.

Note 3:

The vehicle loan from Bank carries interest at the rate of 7.80% p.a and is repayable in 84 equal installments from
August 2022. Loan is secured against hypothecation of the vehicle.

Note 4:

The vehicle loan from Bank carries interest at the rate of 8.21% p.a and is repayable in 60 equal installments from
December 2022. Loan is secured against hypothecation of the vehicle.

There has been no default in repayment of any borrowings as on the balance sheet date. The company has not
been declared a willful default during the year.

FVTPL => Fair Value Through Profit & Loss
Assets and Liabilties not carried at Fair values.

The Management considers that the carrying amount approxiemate the fair value inrespect of financial assets and
financial liabilites carried at amortised cost, such fair values have been computed using level 3 inputs.

1. Level 1 items fair value measurement hireachy are as follows:

a) Level 1 item of fair valuation based on market price quotation at each reporting date.

b) Level 2 items of fair valuation is based on significant observable input like PV of future cash flows, MTM
valuation, etc.

c) Level 3 item of fair valuation is based upon significant unobservable inputs where valuation is done by
independent valuer.

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

3. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair
values. The fair value of the financial assets and financial liabilites is the amount at which the instrument could
be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Method and assumption

The following methods and assumption were used to estimate the fair value at the reporting date:

Loans to employees, security deposit paid and security deposit received are valued using discounted cash
flow using rates currently available for items on similar terms, credit risk and maturities.

Note 32: Financial instruments and Risk factors

Financial Risk factors

The Company’s financial liabilities comprise of short term and long term borrowings, trade payables, employees
dues, unpaid dividend and security deposit. The main purpose of financial liabilities is to support the companies
financial operations. The Company’s financial assets includes security deposit, investments, trade receivables,
staff advance, cash and cash equivalents, Bank balances, etc that derive directly from the operations.

To ensure alignment of risk management system with the corporate and operational objective and to improve upon
the existing procedure, the company oversees various risk factor for managng of these risks.

Interest rate risk

The Company is exposed to interest rate risk from the possibility that the inflow in the interest rate will affect future
cash flows of a finacial instruments.

Credit risk

Customer credit risk is managed according to the Company’s policy, procedure and control relating to customers’
credit risk management. Outstanding receivables are monitored regularly. MIS prepared by the management time
to time is according to varieties of customer and services. Sales to walk-in customers are made by way of Cash,
PayTM and debit/credit payments. Food sold to industrial customers is on credit basis.

Liquidity risk

The Company monitors its risk of shortage of funds usuing detailed cash flow projections which is monitored
closely on a daily basis.

The Company has been sanctioned cash credit limit of Rs.35 Crores by a scheduled bank for meeting working
capital requiment of the Company. The cash credit facility is secured by exclusive charge over inventory, trade
receivables and all the fixed assets of the Company.

The table below summarises the maturity profile of the Company’s financial liabilities and financial assets based on
contractual undiscounted payments as at 31st March 2025.

Note 41:

(i) No funds (which are material either individually or in the aggregate) 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 person(s) or entity(ies), 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 by or on behalf of the Company (“Ultimate
Beneficiary”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiary.

(ii) No funds (which are material either individually or in the aggregate) have been received by the Company from
any person(s) or entity(ies), 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 by or on behalf of the Funding Party (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 42:

Figures for the previous year have been regrouped or rearranged wherever necessary. Figures have been rounded

off to the nearest rupees.

Vide our report of even date.

For P.Chandrasekar LLP _u ^Foi'A^{poMo S}jn^d°°^ri

Chartered Accountants ^Hussain Ml™™' ^Road’C^hennai

Firm Regn .No.: 000580S/S200066 CIN:^L7^2300TN¹⁹⁹⁸P^LC⁰⁴¹³⁶⁰

S.Raghavendhar ^{Madura Ganesh} ^^mm^naR^y Mun^ish Kunw

p_art_ner Chairperson Director Group Chief Executive Officer

Mem be rship No.: 244016 ^{D|N:02456676 D|N:} 02739839 D|N: 02746563

Place: Chennai N.A.Madhavi M.SP. Meyyappan

Date: 15/05/2025 Company Secretary Chief Financial Officer