2.16 Provision, Contingent Liabilities and Contingent
Assets

Provisions involving substantial degree of estimation in
measurement are recognized when there is a present
obligation as a result of past events and it is probable that
there will be an outflow of resources, embodying economic
benefits in respect of which a reliable estimate can be made.
Contingent Liability is a possible obligation that may arise
from past events and its existence will be confirmed only by
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or it
is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and the same are not recognized but disclosed in the
financial statements.

Insurance Claims are accounted on the basis of claims
admitted or expected to be admitted and to the extent that the
amount recoverable can be measured reliably and it is
reasonable to expect ultimate collection. Contingent Assets
are not recognized.

2.17 Taxes on Income

Income Tax expenses comprises of current tax and deferred
tax. It is recognized in the statement of Profit and Loss,
except to the extent that it relates to items recognized directly in
Equity or Other Comprehensive Income. In such cases, the
tax is also recognized directly in Equity or in Other
Comprehensive Income.

Current Tax

Current Tax is the amount of tax payable on the taxable
income for the year, determined in accordance with the
provisions of the Income Tax Act, 1961.

Deferred Tax

Deferred Tax is recognized on temporary differences
between the carrying amounts of assets and liabilities in the
balance sheet and their corresponding tax bases. Deferred tax
liabilities are generally recognized for all taxable temporary
differences.

Deferred Tax Assets are generally recognized for all deductible
temporary differences and unused tax losses being
carried forward, to the extent that it is probable that taxable

profits will be available in future against which those
deductible temporary differences and tax losses can be
utilized. The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the assets to be
recovered.

Deferred Tax Liabilities and Assets are measured at the
tax rates that are expected to apply in the period in which the
liability is settled or the assets realized, based on tax rates (and
tax laws) that have been enacted or substantively enacted by
the end of the reporting period.

Minimum Alternate Tax (MAT)

MAT Credit is recognized as an asset only when and to the
extent there is convincing evidence that the Company will pay
normal income tax during the specified period (i.e.) the period
for which MAT credit is allowed to be carried forward, in the
year in which the MAT credit becomes eligible to be recognized
as an asset in accordance with the recommendations
contained in the Guidance Note issued by the Institute of
Chartered Accountants of India, the said asset is created by
way of a credit to the statement of Profit and Loss and shown as
MAT credit entitlement. The Company reviews the same at
each Balance Sheet date and writes down the carrying amount
of MAT credit entitlement to the extent there is no longer
convincing evidence to the effect that the Company will pay
normal income tax during the specified period.

2.18. Non-current assets (or disposal groups) classified
as held for sale:

Non-current assets or disposal groups comprising of assets
and liabilities are classified as 'held for sale' when all the
following criteria are met: (i) decision has been made to sell, (ii)
the assets are available for immediate sale in its present
condition, (iii) the assets are being actively marketed and (iv)
sale has been agreed or is expected to be concluded within 12
months of the Balance Sheet date.

Subsequently, such non-current assets and disposal groups
classified as 'held for sale' are measured at the lower of its
carrying value and fair value less costs of disposal. Non¬
current assets held for sale are not depreciated or amortised.

2.19. Earning Per Share

Basic earnings per equity share is computed by dividing the
net profit attributable to the equity holders of the Company by
the weighted average number of equity shares outstanding
during the period. Diluted earnings per equity share is
computed by dividing the net profit attributable to the
equity holders of the Company by the weighted average
number of equity shares considered for deriving basic
earnings per equity share and also the 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 Weighted average number of equity shares outstanding
during the period is adjusted for events of bonus issue, buy
back of shares, bonus element in a rights issue to existing
shareholders, share split and reverse share split
(consolidation of shares).

2.20. Significant Estimates and Judgements

The preparation of the financial statements requires
management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and the accompanying
disclosures and the disclosure of contingent liabilities. Actual
results could vary from these estimates. The estimates and
underlying assumptions are reviewed on an on-going basis.
Revisions to accounting estimates are recognized in the
period in which the estimate is revised if the revision effects
only that period or in the period of the revision or future
periods, if the revision affects both current and future
years.

Accordingly, the management has applied the following
estimates / assumptions / judgements in preparation and
presentation of financial statements.

Property, Plant and Equipment, Intangible Assets:-

The residual values estimated useful life of PPEs & Intangible
Assets are assessed by technical team duly reviewed by the
management at each reporting date. Wherever the
management believes that the assigned useful life and
residual value are appropriate, such recommendations are
accepted and adopted for computation of depreciation /
amortization.

Current Taxes:-

Calculations of Income Taxes for the current period are
done based on applicable tax laws and managements
judgement by evaluating positions taken in tax returns and
interpretation of relevant provisions of law.

Deferred Tax Rate (Including MAT Credit Entitlement)

Significant Management judgement is exercised by
reviewing the deferred tax assets at each reporting date to
determine the amount of deferred tax assets that can be
retained /recognized, based upon the likely with future tax
planning strategies.

Contingent Liabilities:-

Management's judgement is exercised for estimating the
possible outflow of resources, if any, in respect of
Contingencies / Claims / Litigation against the Company as
it is not possible to predict the outcome of pending matters
with accuracy.

Impairment of Trade Receivables:-

The impairment for financial assets are done based
on assumption about risk of default and expected loss rates.
The assumptions, selection of inputs for calculation of
impairment are based on management judgement considering
the past history, market condition and forward booking
estimates at the end of each reporting date.

Impairment of Non-Financial Asset (PPE / Intangible
Assets)

The impairment of Non-Financial Assets is determined based
on estimate of recoverable amount of such assets. The
assumptions used in computing the recoverable amount
are based on management judgement considering the timing

of future cash flow, discount rates and risks specific to the
asset.

Defined Benefit Plan and Other Long Term Benefits:-

The cost of the defined benefit plan and other long term
benefits and the present value of such obligation are
determined by the independent actuarial values. Management
believes that the assumptions used by the actuary in
determination of discount rate, future salary increases,
mortality rates and attrition rates are reasonable. Due to the
complexities involved in the valuation and its long term nature,
this obligation is highly sensitive to changes in these
assumptions.

29. Financial Risk Management

The Company's principle financial liabilities comprise of
borrowings, trade and other payables. The main purpose of
these financial liabilities is to manage finances for the
Company's operations. The Company's principle financlial
assets include loans and advances, trade receivables and
cash and bank balances that arise directly from its operations.

The Company also enters into derivative transaction to hedge
foreign currency and not for speculative purposes. The
Company is exposed to Market Risk, Credit Risk and Liquidity
Risk and the Company's Senior Management oversees the
management of these risks.

29.1. Market Risk

Market Risk is the risk that the fair value of future cash flows
of a financial asset will fluctuate because of changes in market
prices. The Company's activities expose it to a variety of
financial risks, including the effect of changes in foreign
currency exchange rates and interest rates.

29.1. (a). Currency Risk

Foreign Currency risk is the risk that fair value of future cash
flow of an exposure will fluctuate because of changes in
foreign exchange rates.

The Company's exposure in USD and other foreign currency
denominated transactions in connection with export of finished
goods, besides import of raw materials, capital goods and
spares, etc., purchased in foreign currency, gives rise to
exchange rate fluctuation risk. The Company has following
policies to mitigate this risk:

The Company has entered into foreign currency forward
contracts both for export and import, after taking into
consideration of the anticipated foreign exchange inflows /
outflows, timing of cash flows, tenure of the forward contract
and prevailing foreign exchange market conditions.

Risk sensitivity on Foreign Currency Fluctuations:-

The Company evaluates the impact of foreign exchange rate
fluctuations by assessing its exposure to exchange rate risks.
It hedges a part of these risks by using derivative financial
instruments in accordance with its risk management policies.

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 by 3%.

The following analysis is based on the gross exposure as of the
relevant balance sheet date, which could affect the income
statement.

The following table sets forth the information relating to foreign
currency exposure as at 31.03.2025 and 31.03.2024

29.1.(b) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash
flows of an exposure will fluctuate because of changes in
market interest rates. The Company's exposure to the risk of
changes in market in interest rates related primarily to the
Company's both long term and short term debt obligation with
floating interest rates. Any changes in the interest rates
environment may impact future cost of borrowings.

29.2. Credit Risk

Credit Risk is that risk that counter party will not meet its
obligation under a financial instrument or customer contract,
leading to financial loss. The Company is exposed to credit
risk from its operating activities, primarily trade receivables
and from its financial activities, including deposits with banks
and other financial instruments.

a) Trade Receivables

The Company extends credit to customers in the normal
course of business. Outstanding customer receivables are
regularly monitored. The Company has also taken advances
from its customers, which mitigate the credit risks to an
extent. An impairment analysis is performed at each reporting
date on an individual basis for major customers.

economic conditions and the requirements is met through
capital, internal accruals, long term borrowings and short term
borrowings.

In order to achieve this overall objective, the Company's
capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest
bearing loans and borrowings that define capital structure
requirements.

During the year ended 31^st March, 2024 and 31^st March, 2025,
there are no transfer between Level1 and Level 2 fair value
measurements and no transfer into and out of Level 3 fair value
measurements and there is no transaction / balance under
Level 3.

Fair Valuation Technique:

The Company maintains policies and procedures to value
financial assets or financial liabilities using the best and most
relevant data available. The fair values of the financial assets
and liabilities are included at the amount that would be
received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the
measurement date. The following methods and assumptions
were used to estimate certain fair values:-

1. Fair value of cash deposits, trade receivables, trade
payables and other current financial assets and
liabilities approximate their carrying amount largely
due to the short term maturities of these instruments.

2. The fair value of derivatives are based on marked to
market valuation statements received from banks with
whom the Company has entered into the relevant
contracts.

Fair value hierarchy:

The following table provides the fair value measurement
hierarchy of Company's assets and liabilities, grouped into
level 1 to level 3 as described below:-

1. Quoted prices / Published NAV (unadjusted) in active
markets for identical assets or liabilities (Level 1).

2. Inputs other than quoted prices included within Level 1
that are observable for the asset or liability (i.e. as
prices) or indirectly (i.e. derived from prices) Level 2. It
includes fair value of the financial instruments that are
not traded in an active market (for example, over the
counter derivatives) and are determined by using
valuation technique. These valuation techniques
maximize the use of observable market data where it is
available and rely as little as possible on the Company's
specific estimates. If all significant inputs required to
fair value an instrument are observable, then the
instrument is included in Level 2.

3. Inputs for the asset or liability that are not based on
observable market date (i.e. unobservable inputs)
Level 3. If one or more of the significant inputs is
not based on observable market data, the instrument is
included in Level 3.

29.6. The Ministry of Corporate Affairs issued the Companies
(Indian Accounting Standards), (Amendments) Rules
2018, notifying the new standard IND AS 115 on
Revenue from contracts with customers and it is
applicable from 01.04.2018.

- Replaces IND AS 18 Revenue and IND AS 11
Construction contracts

- Establishes a new control based revenue recognition
model

- Provides new and more detailed guidance on specific
topics such as multiple element arrangements,
variables consideration, rights of return, warranties,
principal versus agent consideration, consignment
arrangements, bill and hold arrangements and
licensing, to name a few.

Revenue is recognised at an amount that reflects the
consideration to which on entity expects to be entitled in
exchange for transferring goods at services to a customer.

Adoption of IND AS 115 is not expected to have any impact on
the Companies revenue and profit or loss. The Company
expects the revenue recognition to occur at a point in time
when the materials are delivered to at the customers in case of
FIBC Bags, PP Fabric, PP Yarn, Multifilament Yarn & Cotton
Yarn.

Defined Benefit Plan (Gratuity):

The Company provides gratuity to employees as per the
Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for
gratuity. The amount of gratuity payable on retirement /
termination is the employees last drawn basic salary per
month computed proportionately for 15 days salary multiplied
for the number of years of service.

The Employees Gratuity Fund Scheme, which is a defined
benefit plan, is managed by a trust maintained with Life
Insurance Corporation of India (LIC).

The present value of the obligation is determined based on
actuarial valuation using Projected Units Credit Method,
which recognises each period of service as giving rise to
additional units of employees benefit entitlement and
measures each unit separately to build up the final obligation.

The following table sets out the details of amount recognised in
the financial statements in respect of employee benefit
schemes:

The Proceeds of sale of Machineries were used to liquidate
the Term loans Outstanding.

The Machineries of Book value Rs. 57.22 lakhs were transferred
to FIBC division and the same will be realized in the Next
Financial Year.

The analysis of single Amount disclosed in the Statement of
Profit and loss Account for Discontinued operations is as follows:

33. Details of Discontinued Operations As per IND AS-105

The management, during the Financial Year 2023-24, had
permanently stopped the operations of Textile division due to
the continuous operational losses and market slow down.

The carrying Amount of Assets held for sale as on 31.03.2024
was Rs. 584.82 lakhs.

The company has completed the sale process of Machineries
before the mandated period of 30.09.2024. The details are as
follows.

WDV of the Machineries sold: Rs. 530.54 Lakhs.

Loss on sale of Machineries: Rs. 106.63 lakhs.

As required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006, the Company
has outstanding dues of Rs.254.06 Lakhs as at
31^st March, 2025 to Micro, Small and Medium Enterprises.
This has been determined to the extent such parties have
been identified on the basis of information available with the
Company and provide by such parties.

34.8 Confirmation of balances of Trade Receivables and
Payables:-

The Company requested its debtors and creditors to
confirm their outstanding balances as at
31^st December, 2024 in respect of trade receivables and
trade payables. Most of them have given their
confirmation of balance, except few parties to be
submitted, awaiting for some with clarification.

34.9 Deferred Tax (AS- 22) :

Deferred Tax Liability ( Net) for Rs.214 lakhs as on
31.03.2025. (Previous year ( Net) -Deferred Tax
Assets - Rs.166.09) has been recognized in the current
year's profit in accordance with the Accounting of
Deferred Tax in pursuance of AS-22 issued by the
institute of Chartered Accountants of India.

34.10 Regrouping of Previous year figures

The previous year's figures have not been regrouped
during the current year.

36.2 Notes for Significant changes in Ratios from

previous year:

S.No. 3 The significant positive Variation in DSCR is due to
Improved Revenue and profitability.

S.No. 4 The significant positive Variation in Net Profit Ratio is
due to Improved Revenue and profitability.

S.No. 5 The significant positive Variation in the ROE is due
to Improved Revenue and profitability.

S.No.6 The significant positive Variation in the ROCE is due
Improved Revenue and profitability.

S.No.7 The significant reduction in return on investment
due to non-declaration of interim dividend by
Associate Company.

S.No.10.The significant Positive variation in the Trade
Payables Turnover Ratio is due to significant
reduction in the year end import usance purchases
compared to the last year.

35.3. Charges / Satisfaction of charges with ROC.

All the charges are registered with ROC within the
stipulated time.

35.4. The Company does not have any investments through
more than two layers of investments companies as per
section 192 (87) (cd) and section 186 of companies Act,
2013.

35.5. There is no Scheme of Arrangements that has been
approved in terms of sections 230 to 237 of the
Companies Act.

35.6. i. The company has not given any Loans or

Advances in the nature of loans to promoters,
directors, KMPs and their related parties (as
defined under Companies Act, 2013,) either
severally or jointly with any other person.

ii. The title deeds of all the immovable properties
are held in the name of the Company.

iii. The Company has not revalued its Property,
Plant and Equipment (including Right of use
assets) or intangible assets during the year
ended 31^st March, 2025.

iv. No Intangible Assets under development during
the year.

v. Quarterly statements of Current Assets filed with
banks and financial institutions for fund borrowed

from those banks and financial institutions on
the basis of security of current assets are in
agreement with the books of account.

vi. No proceedings have been initiated during the
year or are pending against the Company as at
31st March 2025 for holding any benami
property under the benami Transactions
(Prohibition) Act, 1988 (as amended in 2016)

and rules made there under.

vii. The Company has not been declared willful

defaulter by any bank or financial institution or
government or any government authority.

viii. The company has not advanced / loaned /
invested or received funds (either borrowed
funds or share premium or any other sources or
kind of funds) to any other person(s) or
entity(ies), including foreign entities
(Intermediaries) with the understanding
(whether recorded in writing or otherwise) that
the Intermediary shall 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 to or on behalf of
the Ultimate Beneficiaries.

35.7. There were no transaction relating to previously
unrecorded income that were surrendered or disclosed
as income in the tax assessments under the income tax
Act,1961 (43 of 1961).

35.8 Dividend

The Board of Directors wish to conserve resources
for future expansion and growth of the Company.
Hence, your Directors have decided not to declare
any dividend for the financial year ended
31^st March, 2025.

35.9. The obligation with respect to Corporate Social
Responsibility is not applicable to the Company for the
financial year 2024 - 2025 since, the company has not
fulfilled any one of criteria as provided in section 135 of
the Companies Act, 2013.

35.10. The Company has not traded or invested in Crypto
currency or Virtual Currency during the financial
year.

35.11. The Central Government has published, the Code on
Social Security, 2020 and Industrial Relations

Code, 2020 ("Codes"), relating to employee benefits
during employment and post-employment benefits
and received presidential assent in September, 2020.
However, the date on which the Code will come into

effect has not been notified. The Company will assess
the impact of the code when it comes into effect and will
record any related impact in the period, the code
becomes effective.

As per our report of even date
For KRISHNAN AND RAMAN

CHARTERED ACCOUNTANTS

R. RAMJI S.V RAVI

Firm's Registration No. 001515S

Managing Director & CEO Director

V. SRIKRISHNAN DIN: 00109393 DIN: 00121742

Partner

Membership No. 206115
UDIN : 25206115BMIKWC1360

S. SEENIVASA VARATHAN A. EMARAJAN

^Place : ^Rajapalayam Chief Financial Officer Company Secretary

Date : May 29, 2025