Notes to Accounts of KKV Agro Powers Ltd.

Mar 31, 2025

xi) Provisions and Contingencies:

a) A provision is recognized when an enterprise has a present obligation as a result of
past event and it is probable that an outflow of resources would be required to settle
the obligation, in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined.

b) A disclosure for a contingent liability is also made when there is a possible
obligation or a present obligation that may, but probably will not, require an outflow
of resources. Where there is a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or disclosure is
made.

xii) Leases:

a) Where the company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of
ownership of the leased items are classified as operating leases. Operating lease

payments are recognized as an expense in the statement of profit and loss on a
straight-line basis over the lease term.
b) Where the company is the lessor

Leases in which the company does not transfer substantially all the risks and benefits
of ownership of the asset are classified as operating leases. Asset subject to operating
leases are included in fixed assets.

Lease income on an operating lease is recognized in the statement of profit and loss
on a straight-line basis over the lease term. Costs, including depreciation, are
recognized as an expense in the statement of profit and loss.

xiii) Cash And Cash Equivalents:

Cash flow is reported using indirect method, whereby net profit before tax is adjusted
for the effects of transaction of a non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flow comprises regular revenue
generating, investing and financing activities of the company. Cash and cash
equivalents in the balance sheet comprise of cash at bank and in hand and short term,
highly liquid investments that are readily convertible into known amounts of cash and
which are subject to an insignificant risk of changes in value.

b) Terms/rights attached to equity shares:

Voting:

The Company has only one class of equity shares having a par value of ? 10 per share. Each holder of Equity Shares is entitled
to one vote per share.

Dividend:

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors, if any, is
subject to the approval of the shareholders in the ensuing Annual General Meeting.

Liquidation:

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares
held by the shareholders.

c) Terms/rights attached to Preference Shares:

- The Preference Shares are redeemable at par at any time after the expiry of 3 years from the date of issue i.e., 31-03-2014.

- The Preference Shareholders have voting rights only in respect of matters directly affecting the rights of Preference
Shareholders.

- The Preference Shareholders have preference on the distribution of the dividend.

(i) Details of Benami Property:

No proceedings have been initiated or are pending against the company for holding any Benami
Property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder

(ii) Utilisation of borrowed funds and share Premium:

A. 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 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:

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.

(iii) Undisclosed Income:

There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961 that has not been recorded in the books of accounts.

(iv) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or
previous year.

(v) Valuation of Property, Plant & Equipment, intangible asset and investment property

The Company has not revalued its property, plant and equipment or intangible assets or both during
the current or previous year.

(vi) Loans to Related Parties and others:

The Company had not granted any loans or advances in the nature of loans to promoters, directors,
KNPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with
any other person that:

a) are repayable on demand or

b) without specifying any terms or period of repayment.

(vii) Struck off Companies:

The Company has not entered into any transactions with companies struck off under Section 248 of
the Companies Act, 2013 or Section 560 of Companies Act, 1956

(viii) Willful Defaulter:

The Company has not been declared as a wilful defaulter by any bank or financial institution. Income
tax assessment has been completed up to the AY 2024-25.

46 In the opinion of the management, the current assets and loans and advances as stated in the
Balance Sheet will realize to the extent stated therein.

47 Balances in parties'' accounts are subject to confirmation and reconciliation, if any. Appropriate
adjustments will be made as and when the balances are reconciled.

⁴⁸ Based on the amendment brought in Companies (Accounts) Amendment Rule,2021, the
company has used the software for maintenance of books of accounts, which has the feature of
recording the audit trail facility and the same has been operated throughout the financial year,
without any instances of tampering the same.

49 Previous yeads figures have been regrouped, reclassified and rearranged wherever necessary
to conform to the current year''s classification including those as required consequents to
amendments in Schedule Ill.

50 All Figures are in Lakhs unless otherwise stated.

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

For B. Thiagarajan & Co.

Chartered Accountants

ICAI Firm Registration No. 004371S

T. K. Chandiran ^C. ^Selvi

^{K. Balamanikandan} _{Managing Director} Wholetime Director

Pmtaer DIN00031091 DIN:00032962

Membership No. 213537
UDIN: 25213537BMKQSY6180

CS Kavya Das R

Pl_ace: Coimb_atore M. Shankarsubramanian

^Place: Coimbatore _{Company Secretary and}

Date: 30.05.2025 Chief Executive Officer and Compli_ance Officer

Chief Financial Officer _MRN: ACS 72970

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Mar 31, 2024

b) Terms/rights attached to equity shares:

Voting:

The Company has only one class of equity shares having a par value of ? 10 per share. Each holder of Equity Shares is entitled to one vote per share. Dividend:

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Liquidation:

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

c) Terms/rights attached to Preference Shares:

- The Preference Shares are redeemable at par at any time after the expiry of 3 years from the date of issue i.e., 31 -03-2014.

- The Preference Shareholders have voting rights only in respect of matters directly affecting the rights of Preference Shareholders.

- The Preference Shareholders have preference on the distribution of the dividend.

f) During the year 2018-19, The company has issued Bonus Shares in the ratio of 1:4 by capitalisation of Securities Premium. The total number of shares issued is 90,700 having face value of ? 10 each.

g) During the year 2021 -22, The company has issued Bonus Shares in the ratio of 1:4 by capitalisation of Securities Premium. The total number of shares issued is 1,13,375 having face value of ? 10 each.

h) There are no shares which are held by the holding company/ultimate holding company

i) Promoter & Promoter group Shareholding :

Notes:

i. The Rate of Interest is 8.89% p.a.

ii. Primary Security:

Immovable Fixed Assets - Lien on land measuring 6.7 acres and hypothecation of 1 MW Photo-Voltaic Solar Plant situated at SF No. 73/A1, Uthamapalayam Village, Kangeyam Taluk, Tirupur

Plant and Machinery - Plant and Machinery funded out of Term Loans

Movable Fixed Assets - Exclusive charge on Movable Fixed Assets

iii. Collateral Security:

Non-Agricultural Land - Lien on 10 acres of property standing in the name of the promotors of the company situated at Thogaimalai, Near Karur District

(a) The terms and conditions of the working capital demand Loan of Rs. 10 crores from HDFC Bank are as follows:

i. The Rate of Interest is 8.25% p.a.

ii. Primary Security:

Current Assets: - Exclusive charge on the current assets of the company Plant and Machinery - Plant and machinery funded out of term loans Movable Fixed Assets - Exclusive charge on movable fixed assets

iii. Collateral Security:

Non-Agricultural Land - Negative lien on 6.26 acres of property standing in the name of the company situated at Kulithalai, Karur District.

(b) In respect of above, the charges are yet to be registered.

(c) The quarterly returns or statements comprising of (stock statements, book debt statements, statements on ageing analysis of the debtors/other receivables, and other stipulated financial information) filed by the Company with banks agree with the books of account of the Company ofthe respective quarters.

2.31	Commitments and Contingent Liabilities:
	Particulars	2023-24 (? in Lakhs)	2022-23 (? in Lakhs)
	Estimated amount of contracts remaining to be executed on capital account and not provided for	-	-
	Dividend on Cumulative Preference Shares	2.70	2.70

2.32 In view of prudence/on account of the absence of the certainty of MAT credit utilization, MAT credit aggregate upto 31st March, 2024 Rs.85.34 Lakhs,has not -been recognized.

2.33 Inventory includes Stock of Precious Metals (Bullion, gold ornaments, silver ornaments) and renewable energy certificates (REC) held for sale andwhich are valued at cost or net realizable value whichever is lower.

2.34 Corporate Social Responsibility is applicable to the company as per the section 135 of the Companies Act, 2013. The Company has spent Rs 4.99 lakhs on CSR Compliance, fulfilling its obligation under Section 135 of the Companies Act, 2013.

2.35 The Board of Directors, at their meeting held on 27th May 2024 recommended a Equity dividend of Rs.3/- per equity share and a Preference dividend of 3% on the Face value of Rs. 90 Lakhs for the year ended March 31, 2024, subject to approval of shareholders.

2.44 Additional Disclosure relating to Schedule III Amendment of Companies Act 2013

(i) Details of Benami Property:

No proceedings have been initiated or are pending against the company for holding any Benami Property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) Utilisation of borrowed funds and share Premium:

A 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 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:

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.

(iii) Undisclosed Income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961 that has not been recorded in the books of accounts.

(iv) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(v) Valuation of Property, Plant & Equipment, intangible asset and investment property

The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

(vi) Loans to Related Parties and others:

The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMP''s and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that:

a) are repayable on demand or

b) without specifying any terms or period of repayment.

(vii) Struck off Companies:

The Company has not entered into any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956

(viii) Willful Defaulter:

The Company has not been declared as a willful defaulter by any bank or financial institution

2.45 Income tax assessment has been completed up to the AY 2022-23.

2.46 In the opinion of the management, the current assets and loans and advances as stated in the Balance Sheet will realize to the extent stated therein.

2.47 Balances in parties'' accounts are subject to confirmation and reconciliation, if any. Appropriate adjustments will be made as and when the balances are reconciled.

2.48 Based on the amendment brought in Companies (Accounts) Amendment Rule,2021, the company has used the software for maintenance of books of accounts, which has the feature of recording the audit trail facility and the same has been operated throughout the financial year, without any instances of tampering the same.

².⁴⁹ Previous year''s figures have been regrouped, reclassified and rearranged wherever necessary to conform to the current years classification including those as required consequent to amendments in Schedule III.

2.50 All Figures are in Lakhs unless otherwise stated.

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Mar 31, 2023

xi) Provisions and Contingencies:

a)

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources would be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined.

^b) A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

xii) Leases :

a) Where the company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.

b) Where the company is the lessor

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Asset subject to operating leases are included in fixed assets. Lease income on an operating lease is recognised in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognised as an expense in the statement of profit and loss.

xiii) Cash And Cash Equivalents :

Cash flow is reported using indirect method, whereby net profit before tax is adjusted for the effects of transaction of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow comprises regular revenue generating, investing and financing activities of the company. Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand and short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

2.37 Disclosure as required under section 186(4) of the Companies Act, 2013

Loans given and Guarantees furnished by the company: Nil (Previous year: Nil).

2.38 Disclosure requirements under regulation 53(f) of SEBI (Listing Obligation Disclosure Requirement) regulation, 2015 - Nil (Previous Year - Nil).

2.39 (i) List of Related Parties with whom transactions have taken place during the year FY 2022 - 23 and FY 2021 - 22 and relationship. (As identified by the management and relied upon by Auditors).

(a) Holding Company:

NIL

(b) Key Management Personnel:

- Mr.T.K.Chandiran

- Ms.C.Selvi

- Mr. A C Vineeth

(c) Others: (Relatives & Enterprise over which Key Management Personnel are able to exercise significant influence).

- The KTM Jewellery Limited - Chennai Traders

- Space Textiles Private Limited - SCM Garments Private Limited

- SCM Global Brands Private Limited - Shivam Traders

- The Madras Silks India Private Limited - Swathi Traders

- Gajaanandha Jewellery Maart Private Limited - KKV Chakra Limited

- TCS Textile & Apparel India (P) Ltd - Mr.Vinayagam

- KKV Golden Jubilee Foundation - SCM Creations

-SCM Textile Spinners -Shree Nandhi Silks Pvt Ltd

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:

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.

(iii) Undisclosed Income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessements under the Income Tax Act, 1961 that has not been recorded in the books of accounts.

(iv) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(v) Valuation of Property, Plant & Equipment, intangible asset and investment property

The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

(vi) Loans to Related Parties and others:

The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMP''s and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that:

a) are repayable on demand or

b) without specifying any terms or period of repayment.

(vii) Struck off Companies:

The Company has not entered into any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956

(viii) Wilful Defaulter:

The Company has not been declared as a wilful defaulter by any bank or financial institution

2.45 Income tax assessment has been provisionally completed upto the AY 2022-23.

2.46 In the opinion of the management, the current assets and loans and advances as stated in the Balance Sheet will realize to the extent stated therein.

2.47 Balances in parties'' accounts are subject to confirmation and reconciliation, if any. Appropriate adjustments will be made as and when the balances are reconciled.

2.48 Previous year''s figures have been regrouped, reclassified and rearranged wherever necessary to conform to the current years classification including those as required consequent to amendments in Schedule III.

2.49 All Figures are in Lakhs unless otherwise stated.

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

For VKS Aiyer & Co.

Chartered Accountants

ICAI Firm Registration No. 000066S

Sd/- Sd/-

Sd/- T.K.Chandiran C.Selvi

Managing Director Director

C S Sathyanarayanan DIN:00031091 DIN:00032962

Partner

Membership No. 028328

Sd/-

C.Arun Kumar

Chief Financial Officer

Place : Coimbatore Date : 27th May 2023

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Mar 31, 2016

1 The company has converted from a Private limited company to a Public limited company along with change of name of the company from Nachas Wind Energy Private Limited to KKV Agro Powers Limited vide fresh Certificate of Incorporation given by the Ministry of Corporate Affairs on 18-05-2015.

2. (i) List of Related Parties with whom transactions have taken place during the year 2015-16 and 2014-15 and relationship.(As identified by the management and relied upon by Auditors)

(a) Holding Company:

NIL

(b) Key Management Personnel:

- Mr.T.K.Chandiran

- Ms.C.Selvi

- Mr.A.C.Vineeth Kumar

(c) Others: (Enterprise over which Key Management Personnel are able to exercise significant influence)

- The KTM Jewellery Limited

- Space Textiles Private Limited

- KKV Gold N Retail Limited

- SCM Global Brands Private Limited

3. Disclosure under Accounting Standard 15:

Description of the Company''s defined benefit plan:

The company operates a defined benefit plan for payment of post employment benefits in the form of gratuity. Benefits under the plan are based on pay and years of service and vested on completion of five years of service, as provided in the Payment of Gratuity Act, 1972. The terms of benefits are common for all the employees of the company.

4. Segment Information:

- The company operates under only one segment viz. business of generation and sale of electricity.

5. The Company has recognized deferred tax asset in line with the requirements of AS-22. Deferred tax asset has been recognized on unabsorbed depreciation and carry forward of business losses under tax laws to the extent that there is virtual certainty supported by power purchase agreement entered into by the Company for sale of wind and solar power.

6. Inventory represents Renewable Energy Certificates (REC) held for sale which is valued at Cost or Net realizable value whichever is lower.

7. Post the Balance sheet date, the company had made a public issue of 1, 12,000 Equity shares of face value of '' 10 each at a premium of '' 310 per equity share. The initial public offer was fully subscribed and has been listed on the SME platform of the National Stock Exchange of India Ltd (NSE Emerge) on 15-07-2016.

8. In the opinion of the management, the current assets and loans and advances as stated in the Balance Sheet will realize to the extent stated therein.

9. Balances in parties'' accounts are subject to confirmation and reconciliation, if any. Appropriate adjustments will be made as and when the balances are reconciled.

10. Previous years figures have been regrouped, reclassified and rearranged wherever necessary to conform to the current years classification.

11. All Figures have been rounded off to the nearest rupee.