Notes to Accounts of Sri Lakshmi Saraswathi Textiles (Arni) Ltd.

Mar 31, 2025

5.10 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Company will be required to settle the obligation, and a
reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present value of those cash flows (when the effect
of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement
will be received and the amount of the receivable can be measured reliably.

5.11 Statement of Cash Flows

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 based on classification made in a manner considered most appropriate to Company''s business.

Key Accounting estimates and judgments

5.12 Use of Estimates

The preparation of financial statements in conformity with Ind AS requires management to make
judgments, estimates and assumptions that affect the application of the accounting policies and
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and expenses during the
year. Actual results could differ from those estimates.

5.13 Changes in estimates

The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of change
in an accounting estimate is recognized prospectively by including it in profit or loss in (a) the period
of the change if the change affects only that period; or (b) the period of the change and future periods,
if the change affects both.

However, the change in an accounting estimate that gives rise to changes in assets and liabilities,
or relates to an item of equity, is recognized by adjusting the carrying amount of the related asset,
liability or equity item in the period of the change.

5.14 Key sources of estimation uncertainty

Key assumption concerning the future, and other key sources of estimation uncertainty at the end of
the reporting period that may have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year is as given below.

a. Actuarial valuation

The determination of Company''s liability towards defined benefit obligation to employees is made
through independent actuarial valuation including determination of amounts to be recognized in the
Statement of Profit and Loss and in Other Comprehensive Income. Such valuation depends upon
assumptions determined after taking into account inflation, seniority, promotion and other relevant
factors such as supply and demand factors in the employment market. Information about such
valuation is provided in the Notes to the financial statements.

b. Claims, Provisions and Contingent Liabilities

The Company does not have any ongoing litigations with tax and regulatory authorities and third
parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome
of the dispute can be made based on management''s assessment of specific circumstances of
each dispute and relevant external advice, management provides for its best estimate of the liability.

GENERAL RESERVE

The general reserve is the profit transferred from retained earnings from time to time. There is no policy of
regular transfer.

SECURITIES PREMIUM RESERVE

Represents excess of share subscription money received over par value of shares issued.

FVTOCI RESERVE

Fair value through other comprehensive income reserve represents the balance in equity for items to be
accounted in other comprehensive income (OCI). The company has opted to recognise the changes in the fair
value of certain investments in equity instruments. The company transfers amount from this reserve to retained
earnings in case of loss / gain on actaul sale.

RETAINED EARNINGS

Represents the portion of net income / (loss) of the company that has been retained / carried over by the
company.

NOTE:

a) The Vehicle Loan from IOB is secured by exclusive first charge by hypothecation of vehicles purchased out
of the loans and personal gurantee of promoter directors

b) Term Loan from NBFC is secured by exclusive first charge on the Windmill assets located at Udayathoor
village, Radhapuram taluk, Tirunelveli district, Tamil Nadu comprising land measuring 2 acres, Building
and Windmill Machinery; by way of Equitable Mortgate of land and building and Hypothecation of machinery

c) Term Loan from IOB is secured by exclusive first charge on the Solar Power System assets located at
Ragunathapuram village, Arni taluk, Tiruvannamalai district, Tamil Nadu comprising Solar Power Machinery;
by way of Equitable Mortgate of Hypothecation of machinery

Note on Security Created

The open loan, Bills discounting **, and letter of Credit limits for Working Capital** from Indian Overseas
Bank, Esplanade Branch, Chennai - 600 108 and Open loan, Bills discounting** and letter of Credit Limits
for working capital** from State Bank of India, Leather and International Branch, Chennai - 600 002 are
secured as under:

1. Primary Security:

Hypothecation on entire Current assets, both present and future, which include raw materials, stock in process,
finished goods, consumables etc., book debts on first pari passu basis and bills discounting limits are
additionally secured by documents of title to goods.

2. Collateral Security

a) Equitable Mortgage on first pari passu basis of company''s factory land and buildings in Arni Taluk,
Tamilnadu, and Registered Office land and building in Chennai.

b) Hypothecation on first pari passu basis of all movable fixed assets, exculding assets which are charged on
exclusive basis.

and

3) Personal Guarantee

Personal Guarantee of Promoter Directors Sri Balakrishna S, Managing Director
and Sri R.Padmanaban, Joint Managing Director.

** Details of Bills discounted but not realized and letters of credits issued not crystallized are disclosed under
NOTE NO. 36 (B).

1. The fair value of investment in quoted equity shares measured at quoted price on the reporting date.

2. In case of trade receivables, cash and cash equivalents, trade payables, short term borrowings and other
financial assets and liabilities it is assessed that the fair values approximate their carrying amounts largely
due to the short-term maturities of these instruments.

3. The fair values of the financial assets and financial liabilities included above have been determined in
accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most
significant inputs being the discount rate that reflects the credit risk of counterparties.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial
statements are a reasonable approximation of their fair values since the Company does not anticipate that
the carrying amounts would be significantly different from the values that would eventually be received or
settled.

Sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of
the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation
has been calculated using the projected unit credit method at the end of the reporting period, which is the
same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods of assumptions used in preparing the sensitivity analysis from prior
years.

The Board of Directors (BOD) has overall responsibility for the establishment and oversight of the Company''s
risk management framework and thus established a risk management policy to identify and analyze the
risk faced by the Company. Risk Management systems are reviewed by the BOD periodically to reflect
changes in market conditions and the Company''s activities. The Company, through its training and
management standards and procedures, develops a disciplined and constructive control environment in
which all employees understand their roles and obligations. The Audit Committee oversees how
management monitors compliance with the Company''s risk management policies and procedures and
reviews the risk management framework. The Audit committee is assisted in the oversight role by Internal
Audit. Internal Audit undertakes reviews of the risk management controls and procedures, the results of
which are reported to the Audit Committee.

Credit Risk is the risk of financial loss to the Company if the customer or counterparty to the financial instruments
fails to meet its contractual obligations and arises principally from the Company''s receivables, treasury
operations and other operations that are lease.

Receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The Company extends credit to its customers in the normal course of business by considering the factors
such as financial reliability of customers. The Company evaluates the concentration of the risk with respect to
trade receivables as low, as its customers are in several jurisdictions and operate in largely independent
markets. I n the case of Corporate / Export Customer, credit risks are mitigated by way of enforceable securities.
However, unsecured credits are extended based on creditworthiness of the customers on a case-to-case
basis.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor
declaring bankruptcy or failing to engage in a repayment plan with the company and where there is a probability
of default, the company creates a provision based on Expected Credit Loss.

Financial Instruments and Cash deposits

Investments of surplus funds are made only with the approved counterparties. The Company is presently
exposed to counter party risk relating to short-term and medium-term deposits placed with Banks for margin
money held for the purpose of LC. The Company places its cash equivalents based on the creditworthiness
of the financial institutions.

Liquidity Risk

Liquidity Risks are those risks that the Company will not be able to settle or meet its obligations on time or at
a reasonable price. In the management of liquidity risk, the Company monitors and maintains a level of cash
and cash equivalents deemed adequate by the management to finance the company''s operations and to
mitigate the effects of fluctuations in cash flows. Due to the dynamic nature of the underlying business, the
Company aims at maintaining flexibility in funding by keeping both committed and uncommitted credit lines
available. The Company has laid well defined policies and procedures facilitated by robust information
system for timely and qualitative decision making by the management including its day-to-day operations.

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

Decisions regarding borrowing in Foreign Currency and hedging thereof, and the quantum of coverage is
driven by the necessity to keep the cost comparable. Foreign Currency loans, imports and exports transactions
are hedged by way of forward contract after taking into consideration the anticipated foreign exchange inflows/
outflows, timing of cash flows, tenure of the forward contract and prevailing foreign exchange market conditions.

Interest rate risk arises from short-term borrowings with variable rates which exposed the Company to cash
flow interest rate risk. The Company is exposed to the evolution of interest rates and credit markets for its
future refinancing, which may result in a lower or higher cost of financing, which is mainly addressed through
the management of the fixed/floating ratio of financial liabilities. The Company constantly monitors credit
markets to strategize a well-balanced maturity profile to reduce both the risk of refinancing and large fluctuations
of its financing cost.

Note: (i) 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 person(s) or entity(s),
including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company
(Ultimate Beneficiaries).

(ii)The Company has not received any fund from any party(s) (Funding Party) with the understanding
that the Company shall whether, directly or indirectly lend or invest other persons or entities identified
by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.”

/ BY ORDER OF THE BOARD /

BALAKRISHNA S RAMACHANDRAN REVATHI ^R.^pADMANABAN

Managing Director & Company Secretary ^Jomt Managm^g Doctor &

Chief Executive Officer ^{Chief Financial Officer}

DIN: 00084524 ^{DIN: 00084579}

for M/s. S B S B and Associates
CHARTERED ACCOUNTANTS
Firm No.012192S

Place: Chennai (D.SHARAT HIIUK)

Date ^: May 21, ²⁰²⁵ Member Ship .No^HN

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Mar 31, 2024

Terms / Rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs 10/- Per share. Each Holder of equity shares is entitled to one vote per share.The Company declares and pays dividend in Indian Rupees. 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 in the proportion to the number of equity shares held by the shareholders.

The company during the period of five years immediately preceeding 31st March 2023, has not issued any bonus shares, shares for consideration other than cash and has not bought back its shares. Further the company does not have any outstanding shares issued under options as on 31-03-2023

GENERAL RESERVE

The general reserve is the profit transferred from retained earnings from time to time. There is no policy of regular transfer.

SECURITIES PREMIUM RESERVE

Represents excess of share subscription money received over par value of shares issued.

FVTOCI RESERVE

Fair value through other comprehensive income reserve represents the balance in equity for items to be accounted in other comprehensive income (OCI). The company has opted to recognise the changes in the fair value of certain investments in equity instruments. The company transfers amount from this reserve to retained earnings in case of loss / gain on actaul sale.

RETAINED EARNINGS

Represents the portion of net income / (loss) of the company that has been retained / carried over by the company.

NOTE:

a) The Vehicle Loan from IOB is secured by exclusive first charge by hypothecation of vehicles purchased out of the loans and personal gurantee of promoter directors

b) Term Loan from NBFC is secured by exclusive first charge on the Windmill assets located at Udayathoor village, Radhapuram taluk, Tirunelveli district, Tamil Nadu comprising land measuring 2 acres, Building and Windmill Machinery; by way of Equitable Mortgate of land and building and Hypothecation of machinery

c) Term Loan from IOB is secured by exclusive first charge on the Solar Power System assets located at Ragunathapuram village, Arni taluk, Tiruvannamalai district, Tamil Nadu comprising Solar Power Machinery; by way of Equitable Mortgate of Hypothecation of machinery

Note on Security Created

The open loan, Bills discounting **, and letter of Credit limits for Working Capital** from Indian Overseas Bank, Esplanade Branch, Chennai - 600 108 and Open loan, Bills discounting** and letter of Credit Limits for working capital** from State Bank of India, Leather and International Branch, Chennai - 600 002 are secured as under:

1. Primary Security:

Hypothecation on entire Current assets, both present and future, which include raw materials, stock in process, finished goods, consumables etc., book debts on first pari passu basis and bills discounting limits are additionally secured by documents of title to goods.

2. Collateral Security

a) Equitable Mortgage on first pari passu basis of company''s factory land and buildings in Arni Taluk, Tamilnadu, and Registered Office land and building in Chennai.

b) Hypothecation on first pari passu basis of all movable fixed assets, exculding assets which are charged on exclusive basis.

and

3) Personal Guarantee

Personal Guarantee of Promoter Directors Sri Balakrishna S, Managing Director and Sri R.Padmanaban, Joint Managing Director.

** Details of Bills discounted but not realized and letters of credits issued not crystallized are disclosed under NOTE NO. 36 (B).

1. The fair value of investment in quoted equity shares measured at quoted price on the reporting date.

2. In case of trade receivables, cash and cash equivalents, trade payables, short term borrowings and other financial assets and liabilities it is assessed that the fair values approximate their carrying amounts largely due to the short-term maturities of these instruments.

3. The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

NOTE NO. 36 (B)

DISCLOSURES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2024.

i) Contingent Liabilities and Commitments not provided for
Details	(Rs.in lakhs)
	As at	As at
	31.03.2024	31.03.2023
a) Contingent Liabilities Contingent Liabilities not provided for in respect of 1. Export Bills Discounted under irrevocable Letters of Credit issued by Foreign Banks	21.47	49.76
2. Disputed Income Tax Liabilities	0.00	0.00
3. Disputed Contribution to Employees State Insurance Corporation	0.00	0.00
b) Commitments 1. Estimated amounts of contracts remaining to be executed on capital accounts not provided for	0.00	0.00
2. Other commitments: Liabilities on Letters of Credit issued for capital goods.	0.00	0.00
Liabilities on Letters of Credit issued for others	0.00	0.00

iii) Confirmation of balances from Debtors, Creditors, and advances to suppliers have not been received in certain cases.

iv) Items of revenue / expense amounting to more than 1% of total turnover have been disclosed separately.

v) Previous year''s figures have been re-grouped wherever necessary to conform to this year''s classification.

vi) As per IND AS 19, Employees Benefit, the disclosure of employees benefits as defined in the accounting standard are given below:

The company has not funded gratuity liability to Employees Gratuity Fund as per actuarial valuation for the last 13 years and the total amount to be funded is Rs.574.59 Lakhs. (As on 31.03.2023 Rs.531.11 Lakhs).

Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods of assumptions used in preparing the sensitivity analysis from prior years.

The Board of Directors (BOD) has overall responsibility for the establishment and oversight of the Company''s risk management framework and thus established a risk management policy to identify and analyze the risk faced by the Company. Risk Management systems are reviewed by the BOD periodically to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, develops a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures and reviews the risk management framework. The Audit committee is assisted in the oversight role by Internal Audit. Internal Audit undertakes reviews of the risk management controls and procedures, the results of which are reported to the Audit Committee.

The Board of Directors regularly reviews these risks and approves the risk management policies, which covers the management of these risks:

Credit Risk

Credit Risk is the risk of financial loss to the Company if the customer or counterparty to the financial instruments fails to meet its contractual obligations and arises principally from the Company''s receivables, treasury operations and other operations that are lease.

Receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company extends credit to its customers in the normal course of business by considering the factors such as financial reliability of customers. The Company evaluates the concentration of the risk with respect to trade receivables as low, as its customers are in several jurisdictions and operate in largely independent markets. In the case of Corporate / Export Customer, credit risks are mitigated by way of enforceable securities. However, unsecured credits are extended based on creditworthiness of the customers on a case-to-case basis.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the company and where there is a probability of default, the company creates a provision based on Expected Credit Loss.

Financial Instruments and Cash deposits

Investments of surplus funds are made only with the approved counterparties. The Company is presently exposed to counter party risk relating to short-term and medium-term deposits placed with Banks for margin money held for the purpose of LC. The Company places its cash equivalents based on the creditworthiness of the financial institutions.

Liquidity Risk

Liquidity Risks are those risks that the Company will not be able to settle or meet its obligations on time or at a reasonable price. In the management of liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the company''s operations and to mitigate the effects of fluctuations in cash flows. Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping both committed and uncommitted credit lines available. The Company has laid well defined policies and procedures facilitated by robust information system for timely and qualitative decision making by the management including its day-to-day operations.

Foreign Currency Risk

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

Decisions regarding borrowing in Foreign Currency and hedging thereof, and the quantum of coverage is driven by the necessity to keep the cost comparable. Foreign Currency loans, imports and exports transactions are hedged by way of forward contract after taking into consideration the anticipated foreign exchange inflows/ outflows, timing of cash flows, tenure of the forward contract and prevailing foreign exchange market conditions.

Cash flow and fair value interest rate risk

Interest rate risk arises from short-term borrowings with variable rates which exposed the Company to cash flow interest rate risk. The Company is exposed to the evolution of interest rates and credit markets for its future refinancing, which may result in a lower or higher cost of financing, which is mainly addressed through the management of the fixed/floating ratio of financial liabilities. The Company constantly monitors credit markets to strategize a well-balanced maturity profile to reduce both the risk of refinancing and large fluctuations of its financing cost.

Note: (i) 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 person(s) or entity(s), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(ii)The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.”

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Mar 31, 2015

1. Primary Security:

Hypothecation on entire Current assets, both present and future, which include raw materials, stock in process, finished goods, consumables etc., book debts on first pari passu basis and bills discounting limits are additionally secured by documents of title to goods.

2. Collateral Security

a) Equitable Mortgage on first pari passu basis of company's factory land and buildings in Arni Taluk, Tamilnadu, Wind Mill Land and Building in Radhapuram Taluk, Tamilnadu and Registered Office land and building in Chennai.

b) Hypothecation on first pari passu basis of all unsecured movable fixed assets.

and

3) Personal Guarantee

Personal Guarantee of Promoter Directors Sri Balakrishna S, Managing Director and Sri R. Padmanaban, Joint Managing Director.

NOTE NO. 4

OTHER DISCLOSURES AND ADDITIONAL INFORMATION AS PER REQUIREMENTS IN REVISED SCHEDULE III OF THE COMPANIES ACT. 2013.

A. OTHER DISCLOSURES:

i) Contingent Liabilities and Commitments not provided for

(Rs. in Lakhs) Details As at 31.03.2015 As at 31.03.2014

a) Contingent Liabilities

Contingent Liabilities not provided for in respect of

1. Export Bills Discounted under irrevocable Letters of Credit issued by Foreign Bank 0.00 111.18

2. Disputed Income Tax Liabilities 46.08 75.96

3. Disputed Contribution to Employees State Insurance Corporation 4.15 4.15

b) Commitments

1. Estimated amounts of contracts remaining to be executed on capital accounts not provided for 0.00 0.00

2. Other commitments:

Liabilities on Letters of Credit issued for capital goods. 0.00 0.00

Liabilities on Letters of Credit issued for others. 0.00 0.00

ii) Gratuity

The company has not funded for gratuity liability as per actuarial valuation for the last 5 years and the total amount to be funded is Rs.1,55,12,020.

iii) In the absence of information from suppliers with regard to their registration with the specified authority, despite the company calling for such information the company is unable to furnish the information as required under the Companies Act, 1956 and Micro Small and Medium Enterprises Development Act, 2006.

v) Confirmation of balances from Debtors and Creditors have not been received in certain cases.

vi) Items of revenue / expense amounting to more than 1% of total value has been disclosed separately.

vii) Previous year's figures have been re-grouped wherever necessary to conform to this year's classification.

x) Related party transactions:

As per the Accounting Standard 18 - Related party transactions, the company's related party and the details of transactions the company had with them are given below:

I. Related Parties

a) Key Management Personal and relatives

Name of the related Party Nature of relationship

i) Sri Balakrishna S Wholetime Director(During 2014-15)

ii) Sri R. Padmanaban Technical Director (During 2014-15)

iii) Sri R. Thirumalai Production Manager

iv) Sri R. Rajagopal Administrative Manager

v) Sri Srish Jayender Balakrishna Marketing Manager

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Mar 31, 2013

1. Contingent liability not provided for in respect of:

(Rs.in Lakhs)

S. No. Particulars As at 31.03.20131 As at 31.03.2012

1. Export Bills discounted under irrevocable letters of credits issued by Foreign Banks. (This amount is secured by first charge on the fixed assets of the company on pari passu basis and personal guarantee of promoter directors)

2. Disputed income tax liability 130.77 130.77

3. Disputed contribution to Employees State . 4.15 4.15 Insurance Corporation

4. Estimated amount of contracts remaining to be Nil Nil executed on capital accounts

2. In the absence of information from the suppliers with regard to their registration with the specified authority, despite the company calling for such information, the company is unable to furnish the information, as required under The Companies Act, 1956 and the Micro, Small and Medium Enterprises Development Act, 2006.

3. General reserve includes Rs. 233.02 Lakhs ( Previous Year Rs. 233.02 Lakhs ) transferred thereto Pursuant to Sec 205 (2 A) of the Companies Act, 1956.

4. Confirmation of balances from debtors and creditors have not been received in some cases.

5. Other expenses do not include any items individually in value of 1 % of the total revenue.

6. Previous year''s figures have been regrouped wherever necessary to conform to this years classification.

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Mar 31, 2012

1. Contingent liability not provided for in respect of:

(Rs.in Lakhs)

S. No.Particulars As at 31.03.2012 As at 31.03.2011

1. Export Bills discounted under irrevocable letters of credits issued by Foreign Banks. (This amount is secured by first charge on the fixed assets of the company on pari passu basis and personal guarantee of promoter directors)

2.. Disputed income tax liability 130.77 130.77

3. Disputed contribution to Employees State 4.15 4.15 nsurance Corporation .

4. Estimated amount of contracts remaining to be Nil Nil executed on capital accounts.

2. In the absence of information from the suppliers with regard to their registration with the specified authority, despite the company calling for such information, the company is unable to furnish the information, as required under The Companies Act, 1956 and the Micro, Small and Medium Enterprises Development Act, 2006. .

3. General reserve includes Rs. 233.02 Lakhs ( Previous Year Rs. 233.02 Lakhs ) transferred thereto Pursuant to Sec 205 (2_A) of the Companies Act, 1956.

4. Confirmation of balances from debtors and creditors have not been received in some cases.

5. Other expenses do not include any. items individually in value of 1% of the total revenue.

6. Previous year`s figures have been regrouped wherever necessary to conform to this years classification.

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Mar 31, 2010

1. RELATED PARTY DISCLOSURES (IN ACCORDANCE WITH AS -18 ISSUED BY ICAI)

a) List of Related Parties

Associate Company

i) Sri Krishna Enterprises

b) Key Management Personal

Name of the related Party Nature of relationship

i) Sri R.Srihari Managing Director

ii) Sri S.Balakrishna Whole Time Director

iii) Sri R.Padmanaban Technical Director



c) Particulars of Transaction with Related Parties.

I) Transaction with Associate Company

Purchase of Petroleum product from Sri Krishna Enterprises Rs.2,06,961/- (Previous Year - Rs.10,80,456)

II) Details of Transaction relating to persons referred to in item ( b) above. Remuneration - Rs 34,55,630 ( Previous year - Rs. 34,17.022)

III) Details of Transaction relating to Interest paid for short term loans Rs.3,00,000/- (Previous year - Rs,4,57,727)

2. CONTINGENCIES (IN ACCORDANCE WITH AS -29 ISSUED BY tCAt)

Contingent liabilities are indicated by way of notes forming part of Accounts.

3. INCOME IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS -11 ISSUED BY ICAI)

Export sales in foreign currency are accounted at the exchange rates prevailing on the date of invoice/negotiation of documents where such sales are not covered by forward contracts.

4. EXPENDITURE IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS -11 ISSUED BY ICAI)

Expenditure in foreign currency is accounted at the actual amount spent and provision for expenses to be paid in foreign currency has been made at the rate of exchange prevailing on the Balance sheet date.

1. Contingent liability not provided for in respect of: (Rs.in Lakhs) S.No. Particulars As at 31.03.2010 As at 31.03.2009

1. Export Bills discounted under irrevocable letters of credits issued by Foreign Banks. (This amount is secured by first charge on the fixed assets of the company on pari passu basis and personal guarantee of promoter directors) 63.57 30.51

2. Disputed income tax liability 130.77 130.77

3. Disputed contribution to Employees State insurance Corporation 4.15 4.15

4. Probable customs duty payable on the machineries imported under Export Promotion Capital Goods scheme. 176.86 176.86

5. Estimated amount of contracts remaining to be executed on capital accounts. Nil 67.94



2. In the absence of information from the suppliers with regard to their registration with the specified authority, despite the company calling for such information, the company is unable to furnish the information, as required under the Companies Act, 1956 and the Micro, Small and Medium Enterprises Development Act, 2006.

3. General reserve includes Rs. 233.02 Lakhs ( Previous Year Rs. 233.02 Lakhs transferred thereto Pursuant to Sec 205 (2 A) of the Companies Act, 1956.

4. Other income includes interest earned during the year including tax deducted at source to the extent of Rs. 61,987/- (Previous year - Rs.2,88,981/-)

5. Confirmation of balances from debtors and creditors have not been received in some cases.

6. Other expenses do not include any items individually in value of 1% of the total revenue.

7. The deferred tax liability of Rs.74,04,690/- arises mainly due to difference in depreciation.

8. Previous years figures have been regrouped wherever necessary to conform to this years classification.