Details of securities in respect of Term Loan facilities from HDFC: Hypothecation of assets purchased under respective Term Loans and Equitable mortgage of (a) Factory Land & Building situated at Chinnamadampalayam measuring 2.82 acres bearing SF NO 539 & 533/1 Billichi Village, Coimbatore, (b) Industrial Land measuring 3.25 acres located at SF NO 754/2 , Keeranatham Village, Coimbatore (c) Guest House property at TS No 1/317/3, Ward No 4, Flat No 203, Vilvam Residency, Door No 48, West Club Road, Coimbatore (d) Commercial land measuring 4 acres in SF No 412, Pannikampatti Village, Periyanaickenpalayam, sub Regn Dist., Coimbatore (e) 4.33 acres of Non-agricultural Land standing in the name of the company located at SF No 53/1/C, Billichi, Coimbatore and (f) personal guarantee of Mr. D Rajesh Kumar, Joint Managing Director
Details of securities in respect of Term facility from Axis Bank Ltd - : Hypothecation of assets purchased under respective Term Loans and Equitable mortgage of Land & Building of Unit IV situated at Bilichi Village- (a) 3.95 Acres at SF No. 863, (b) 2.58 Acres at SF No. 882/3 (c)0.67 Acres at SF No. 865 - totalling 7.20 Acres of Land and Personal Guarantee of Mr R. Doraiswamy, Managing Director and Mr D Rajesh Kumar, Joint Managing Director
Terms of Repayments.a]HDFC - Term Loan-1: Repayable within-28 EMI of Rs.20.69 Lakh, b] Term Loan-2: Repayable within 39 EMI of Rs.40.64 Lakh and c) Term Loan -3 : Repayable within 47 EMI of RS. 33.72 Lakh, 1 EMI of Rs.31.08 Lakh and I EMI of Rs.35.76 Lakh
The Company gives warranties for its products undertaking to repair or replace the items that fail to perform satisfactorily during the warranty period. The provision for warranty claims represents the present value of the Management's best estimate of the future outflow of economic benefits that will be required under the Company's obligations for warranties under sale of goods legislations. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality
B. Defined Benefit plans
The Company operates a defined benefit gratuity plan for eligible employees in accordance with the Code on Social Security, 2020 and applicable rules. Gratuity is payable as a lump sum on separation after completing one year of vested service. The Company contributes to a group gratuity scheme administered by LIC.
The gratuity liability is determined through actuarial valuation by LIC using the Projected Unit Credit Method in accordance with Ind AS 19 - Employee Benefits, considering assumptions such as salary escalation, attrition, mortality and discount rate.
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk , salary risk and longevity risk.
Investment Risk: The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds
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 investments.
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 the plan participants will increase the plan's liability.
Longevity risk:The present value of 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.
iii. Valuation technique used to determine fair value
The fair value of the financial assets and liabilities are at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, loans, other financial assets, current borrowings, trade payables and other current financial liabilities are a reasonable approximation of their fair values.
The investment included in Level 3 hierarchy have been valued at cost approach to arrive at the fair values.The cost of unquoted investment approximate the fair value as there is a wide range of possible fair value measurement and the cost represents estimate of fair value within that range.
The estimated fair value amounts as at March 31,2026 have been measured as at that date. As such, the fair values of these financial instruments subsequent to reporting date may be different than the amounts reported at each year-end.
There were no transfers between Level 1, Level 2 and Level 3 during the year.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.
The company's credit risk generally arises from Cash and cash equivalents, trade receivables, and other financial assets.
Credit Risk Management
The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk B: Moderate credit risk C: High credit risk
Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions. Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the business, the Company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the company's liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Market Risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates etc. could affect the Company's income or the value of its holdings of financial instruments including cash flow. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while maximising the return.
Interest rate Risks
The Company uses a mix of cash and borrowings to manage the liquidity & fund requirements of its day-to-day operations. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The borrowings are fixed rate borrowings and are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, ‘Financial Instruments - Disclosures', since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
Interest Rate Sensitivity analysis:
The Sensitivity Analysis below have been determined based on the exposure to interest rate for Floating RateLiabilities,assuming the amount of the liability outstanding at the year end was outstanding for the whole year.
If interest rate had been 100 basis points higher/lower and all other variable were held constant, the company”s profit for the year ended 31.03.2026 would decrease/increase by Rs.531.44 Lacs. (for the year ended31st March 2025: decrease /increase by Rs.457.35Lacs.). This is mainly attributable to the Company"s exposure to interest rate on its variable rate borrowings.
Foreign Currency Risk
The Company's exposure to currency risk relates primarily to the Company's operating activities including anticipated sales & purchase and borrowings where the transactions are denominated in a currency other than the Company's functional currency The risk is measured through a forecast of highly probable foreign currency cash flows.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at 31.03.2026 are as follows:
Note No. 50 CAPITAL MANAGEMENT
The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company's overall strategy remains unchanged from previous year.
The funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. The Company's policy is to use current and non-current borrowings to meet anticipated funding requirements.
The Company monitors capital on the basis of the gearing ratio which is net debt divided by total capital (equity plus net debt).
Net debt are non-current and current debts as reduced by cash and cash equivalents, other bank balances and current investments. Equity comprises all components including other comprehensive income.
The following table summarizes the capital of the Company:
Note No. 54 LEASES AS A LESSEE:
The Company, which entered into Lease Agreements with various Parties during the previous financial years for hiring the premises at different locations for manufacturing activities, has modified those agreement with the term of 11 Months with an option to extend further period with mutual consent of the parties to the agreement and the agreement has no clauses of controlling the let out of assets
During the financial year, the Company has also taken out lease of Land and Buildings for Rent from two more parties and the Rental Agreements have been executed for a period of 11 months with an options for extending further periods with mutual consent of the parties . The Agreement dont have any clauses enabling the tenant to have control over the Property
During the year, the Company has vacated the Warehouse taken on Lease at Ambernath from Kaycee Industries Limited and has accordingly recognised Right-of-Use Asset, Lease Liability and corresponding de-recognition of Lease Asset upon vacating the warehouse.
Further, the Company had taken a new warehouse at Ambernath on a Leave and License Basis from four individuals in joint capacity and has accordingly recognised Right-of-Use Asset and corresponding Lease Liabilities in the Financial Statements.
The Title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.
As per the Company's accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.
The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (As per Companies Act, 2013) , which are repayable on demand or without specifying any terms or period of repayments.
No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
The Company has been sanctioned facilities from banks on the basis of security of current assets. The periodic returns filed by the Company with such banks are in agreement with the books of accounts of the Company.
The Company has adhered to debt repayment and interest service obligations on time. Wilful defaulter related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.
There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the year ended 31st March 2026.
All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been filed. No registration or satisfaction is pending at the year ended 31st March 2026.
The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.
The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a. 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
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiary
The Company have 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:
a. 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
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries The Company has not operated in any crypto currency or Virtual Currency transactions
During the year the Company has not disclosed or surrendered, any income other than the income recognised in the books of accounts in the tax assessments under Income Tax Act, 1961.
Previous year figures have also been reclassified, regrouped, recast to conform to current year classification.
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