o) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance
Sheet date.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources. When there is a possible or a present obligation
where the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognised or accounted for.

p) Financial Instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

(A) Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset. Purchases or sales of financial assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company
commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified on the basis of their contractual cash flow characteristics and the entity''s business model of managing them.

Financial assets are classified into the following categories:

• Financial instruments other than equity instruments at amortised cost

• Financial instruments other than equity instruments at fair value through other comprehensive income (FVTOCI)

• Financial instruments other than equity instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

(i) Financial instruments other than equity instruments at amortised cost

The Company classifies a financial instruments other than equity instruments as at amortised cost, if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows; and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

Such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

(ii) Financial instruments other than equity instruments at FVTOCI

The Company classifies a financial instrument other than equity at FVTOCI, if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset’s contractual cash flows represent SPPI.

Financial instruments other than equity instruments included within the FVTOCI category are measured as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive
income (OCI). However, the Company recognizes interest income, impairment losses and reversals and foreign exchange gain or loss in the profit and loss statement. On derecognition of the asset, cumulative
gain or loss previously recognised in OCI is reclassified from the equity to profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

(iii) Financial instruments other than equity instruments at FVTPL

The Company classifies all financial instruments other than equity instruments, which do not meet the criteria for categorization as at amortized cost or as FVTOCI, as at FVTPL.

Financial instruments other than equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

(iv) Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. Where the Company makes an irrevocable election of equity
instruments at FVTOCI, it recognises all subsequent changes in the fair value in other comprehensive income, without any recycling of the amounts from OCI to profit and loss, even on sale of such investments.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

Financial assets are measured at FVTPL except for those financial assets whose contractual terms give rise to cash flows on specified dates that represents solely payments of principal and interest thereon, are
measured as detailed below depending on the business model.

Classification

Amortised cost

Name of the financial asset

Trade receivables, loans, other deposits, interest receivable and other advances recoverable in cash
Derecognition

A financial asset is primarily derecognised when:

- The right to receive cash flows from The asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either

(a) the Company has transferred substantially all the risks and rewards of the asset, or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are other than equity instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

b) Financial assets that are other than equity instruments and are measured at FVTOCI

c) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:

• Trade receivables or contract revenue receivables; and

• All lease receivables resulting from transactions within the scope of Ind AS 116

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime Expected Credit Loss (ECL) at each
reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12 months ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 months ECL is a portion of the lifetime ECL which results from
default events that are possible within 12 months after the reporting date.

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either

(a) the Company has transferred substantially all the risks and rewards of the asset, or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

ECL allowance (or reversal) recognized during the period is recognized as income/expense in the statement of profit and loss, net of lien available on securities held against the receivables. This amount is
reflected under the head ‘other expenses’ in the profit and loss. The balance sheet presentation for various financial instruments is described below:

• Financial assets measured as at amortised cost, contractual revenue receivables and lease receivables: ECL is presented as an allowance, which reduces the net carrying amount. Until the asset meets write-off
criteria, the Company does not reduce impairment allowance from the gross carrying amount.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is
designed to enable significant increases in credit risk to be identified on a timely basis.

For impairment purposes, significant financial assets are tested on individual basis at each reporting date. Other financial assets are assessed collectively in Companys that share similar credit risk characteristics.
Accordingly, the impairment testing is done retrospectively on the following basis:

Trade Receivables

Expected Credit Loss model (ECL) is applied. The ECL over lifetime of the assets are estimated by using a provision matrix which is based on historical loss rates reflecting current conditions and forecasts of
future economic conditions which are Companyed on the basis of similar credit characteristics such as nature of industry, customer segment, past due status and other factors that are relevant to estimate the

Other financial assets

When the credit risk has not increased significantly, 12 month ECL is used to provide for impairment loss. When there is significant change in credit risk since initial recognition, the impairment is measured
based on probability of default over the life time. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then
the entity reverts to recognising impairment loss allowance based on 12 month ECL.

(B) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL and as at amortised cost.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the
statement of profit and loss.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts.

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as
held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging
instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are recognized in OCI. These gains/losses are not subsequently transferred to profit and loss. However, the
company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The company has not designated any financial
liability as at fair value through profit and loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation process.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be
infrequent. The Company senior management determines change in the business model as a result of external or internal changes which are significant to the Company operations. Such changes are evident to
external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies
the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any
previously recognised gains, losses (including impairment gains or losses) or interest.

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet, if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.

q) Recent Pronouncements

The Ministry of Corporate Affairs (MCA) vide notification dated 7 May 2025 issued the Companies (Indian Accounting Standards) Amendment Rules, 2025, amending Ind AS 21, The Effects of Changes in
Foreign Exchange Rates, and making consequential amendments to Ind AS 101. The amendments provide guidance for determining exchange rates when exchangeability between currencies is lacking and
introduce related disclosure requirements. The amendments are effective for annual reporting periods beginning on or after 1 April 2025. The Company has evaluated the amendments and determined that they
do not have a material impact on its financial statements / is in the process of assessing the impact.

During the year, MCA notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2025, introducing amendments to Ind AS 1, Ind AS 7, Ind AS 107 and Ind AS 12. The Company has
assessed the amendments and concluded that they do not have a material impact on the financial statements / is evaluating their impact.

The amendments are extensive, and the Company will evaluate the same to give effect to them as required by law.

(ii) Extension and termination options

Extension and termination options are included in the property lease agreements. These are used to maximise operational flexibility
in terms of managing the assets used in the company’s operations. The majority of extension and termination options held are
exercisable only with the mutual consent of both the Company and the respective lessor.

(iii) Critical judgements in determining the lease term:

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an
extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in
the lease term if the lease is reasonably certain to be extended (or not terminated).

1) Working Capital limits availed from the above banks are secured by hypothecation of on entire current assets, i.e. stock of raw materials, Work in Progress, finished goods and receivables (present &
future) of the company and receivables with a cover period not exceeding 120 days ranking parripassu with one another. Further secured by joint and equitable mortgage of all immovable properties and by
hypothecation of machineries ranking parripassu with one another.

2) The directors of the company namely Mr.T.Balakumar and Mrs. A.Sudha have personally guarnteed the above credit facilities and have given landed properties situate in various locations as collateral
securities towards the credit facilities availed from Banks.

3) *The eVFS (Electronic Vendor Finance Scheme) facility is sanctioned as a clean credit facility and is not secured by any specific charge on the Company''s assets.

4) The Company has not defaulted in repayment of loans and interest.

Valuation Technique Applied

As per Ind AS 109, investments designated at Fair Value through Other Comprehensive Income (FVOCI) are required to be measured at fair value. In the absence of quoted market prices or observable inputs, the Company has applied the cost approach
under Ind AS 113, considering the contributed capital as the best estimate of fair value.

No dividends or cash flows are projected from these partnership investments.

Terminal value is assumed to equal the investment amount.

Accordingly, the fair value of these investments at the transition date equals the cost of investment.

Fair Value Measurement Hierarchy

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

46 Financial Risk Management
Risk management framework

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s risk management policy is set by the Board. The Company’s activities expose
it to a variety of financial risks: credit risk, liquidity risk and market risk relating to foreign currency exchange rate. The Company’s primary focus is to foresee the unpredictability of financial markets and
seek to minimize potential adverse effects on its financial performance. A summary of the risks have been given below.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables
from customers and other financial assets carried at amortised cost. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts
receivables and Security deposits. The exposure is limited to its carrying value.

Trade and other receivables

The maximum exposure to credit risk at the reporting date is primarily from trade receivables. However, the management also considers the factors that may influence the credit risk of its customer base. The
credit exposure of trade receivables is primarily on account of receivables from customers. The company has a process in place to monitor outstanding .

(ii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, that it will always have sufficient
liquidity to meet its liabilities when due. The Company’s Management is responsible for liquidity and fund, The Company aims to maintain the level of its cash and cash equivalents at an amount in excess of
expected cash outflows on financial liabilities over the next six months. The Company also monitors the level of expected cash inflows on trade receivables together with expected cash outflows on trade
payables and other financial liabilities.

(iii) Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters while optimising the return.

(iv) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. The majority of the Company’s assets are located in
India and Indian rupee being the functional currency of the Company. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to operating activities.

(v) Capital Management

The Company’s objectives when managing capital are to

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and

• Maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in
proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the
company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth
of its business. The company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The management monitors the return on capital as well as the level of dividends to shareholders. The company’s goal is to continue to be able to provide return to shareholders.

48 First-time adoption of Ind-AS

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2024 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, by reclassifying items from
previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain mandatory exceptions under Ind AS 101 and
certain optional exemptions permitted under Ind AS 101 availed by the Company as detailed below:

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS Optional Exemptions

A.1.1 Deemed cost for Property, Plant and Equipment (PPE)

Ind AS 101 permits a first-time adopter to elect for fair value a class of property, plant and equipment or to continue with the carrying value for all of its PPE as recognised in the financial statements as at the date of transition
to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

The company has elected to continue with the carrying value for all of its PPE as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost
as at the date of transition.

A.1.2 Deemed cost for Intangible Assets

Ind AS 101 permits a first-time adopter to elect to fair value intangible assets or to continue with the carrying value for all of its intangible assets as recognised in the financial statements as at the date of transition to Ind AS,
measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

The company has elected to continue with the carrying value for all of its intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its
deemed cost as at the date of transition.

A.1.3 Leases

Ind AS 116 requires customers and suppliers to determine whether a contract is or contains a lease at the inception of the contract. On identification of a lease, the lessee is required to recognise a right of use asset and a
corresponding lease liability in the balance sheet alongside depreciation and interest cost in the statement of profit and loss.

However, the standard provides the lessee with the option to recognise a low value asset or a short term lease (12 months or lesser) as an expense in the statement of profit and loss on a straight line basis or any other
systematic approach. The Company applied the practical expedient provided in Ind AS 116.

A.1.4 Fair Value Measurement

Ind AS 101 allows an entity to fair value the financial instruments for the first time on the date of transition to Ind AS instead of the date of acquisition. The company has elected to apply this exemption for all its financial
instruments existing on April 1, 2024 (the date of transition).

A.2 INDAS mandatory exemptions

A. 2.1 Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in
accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2024 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for impairment of financial assets based on expected credit
loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

B Notes to First-time Adoption

B. 1 Fair valuation of financial assets and liabilities

Under Ind AS, financial assets and liabilities are to be valued at amortised cost or fair valued through profit and loss (FVTPL) or fair valued through other comprehensive income (FVTOCI) based on the Company’s business
objectives and the cash flow characteristics of the underlying financial assets and liabilities.

Accordingly, the Company has remeasured the financial assets and liabilities (including investments) as on the date of transition and the comparative periods. The consequential impact has been given in the opening retained
earnings and the comparative period.

B.2 Accounting long term flnancial instruments at amortised cost

Under Ind AS 109, the long term financial assets and liabilities are to be accounted at amortised cost. Accordingly, the Company used the applicable discounting rate for accounting the financial instruments at amortised cost.
The consequential impact has been adjusted in the Ind AS financial statements.

B.3 Deferred tax

Under Ind AS, the deferred tax asset and liabilities are required to be accounted based on balance sheet approach and also to be recognised on all adjustments considered in the opening Ind AS balance sheet. The Company has
remeasured its deferred tax assets and liabilities as aforesaid and accounted in the Ind AS financial statements in the respective periods.

B.4 Remeasurement of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive
income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. Adjustments have been made for such re-classifications. Ind AS also requires to remeasure
the estimates of provision for employee benefits in accordance with Ind AS 19 “Employee Benefits.” The Company remeasured its provision for employee benefits and the consequential impact has been recognised in the Ind
AS financial statements in the respective periods.

49 Details of Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

50 Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

51 Borrowings secured against current assets

As at the reporting date, the Company has outstanding borrowings from banks and financial institutions secured against current assets of the Company.

The Company is required to file quarterly returns of current assets with such banks and financial institutions as per the terms of the borrowing arrangements. However, the
Company has not filed the quarterly returns during the year with the respective banks and financial institutions.

52 Relatioshiop with struck off companies

The Company doesn’t have any transactions with companies struck off under section 248 of the Companies Act, 2013.

53 Registration of charges or satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

54 Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013 read with the Companies (Restriction on Number of Layers) Rules, 2017.

55 Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

56 Utilisation of Borrowed funds and share premium:

a) The Company have 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:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Holding and Indian Subsidiaries (ultimate
beneficiaries) or

(ii) Provide any Guarantee, Security, or the like to or on behalf of the Ultimate Beneficiaries.

b) 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:

(i) 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

(ii) Provide any Guarantee, Security, or the like on behalf of the ultimate beneficiaries.

57 Undisclosed income

The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year (and previous

58 Details of Crypto Currency or Virtual Currency

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

59 Valuation of Property, Plant and Equipment

The Company has not revalued its property, plant and equipment (including right-of-use assets) during the current or previous year.

60 Title deeds of immovable properties not held in name of the company

The title deeds of immovable properties are held in the name of the company except for the disclosure made in Note 3

61 Events After Reporting Period

There have been no material events since the end of the reporting period which would require disclosure or adjustment to the consolidated financial statements for the year ended

62 Segment Reporting

The Company operates in a single business segment and, accordingly, there are no separate reportable segments as per Ind AS 108 - Operating Segments.

63 Disclosure of Loans to Promoters and Directors

The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act,2013), during
the financial year which are repayable on demand or without specifying any terms or period of repayment.

64 Pursuant to amendment in Schedule III to the Companies Act, 2013 by Ministry of Corporate Affairs vide its notification dated March 24, 2021 the comparative figures as
disclosed in these results have been regrouped/reclassified, wherever necessary, to make them comparable to current year figures.

2.11 Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past
event and it is probable that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions (excluding retirement benefits
and compensated absences) are not discounted to its present value and are determined based
on best estimate required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognised in the financial statements. A contingent asset is
neither recognised nor disclosed in the financial statements.

2.12 Cash and Cash equivalents

The Company considers all highly liquid financial instruments, which are readily
convertible into known amount of cash that are subject to an insignificant risk of change in
value and having original maturities of three months or less from the date of purchase, to be
cash equivalents.

2.13 Events after reporting period

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

2.14 Employee benefits

All employee benefits payable wholly within twelve months after the end of the annual
reporting period of rendering the service are classified as Short-Term Employee Benefits
and they are recognised in the period in which the employee renders the related service.

The Company recognizes the undiscounted amount of Short-Term Employee Benefits
expected to be paid in exchange for services rendered as a liability (accrued expense) after
deducting any amount already paid.

1. Gratuity is provided for the eligible employees as per the Payment of Gratuity Act 1972
with actuarial valuation. The company does not have any approved super annulation fund to
its employees.

2. The company contributes Provident Fund to the employees under the Employees
Provident Fund Scheme run by the Government.

3. As per the rules and regulations of the company the leave encashment is drawn within the
year itself and no amount need to be provided.

2.15 Earnings per share

Basic earnings per equity share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period

Diluted earnings per share is computed by dividing the net profit or loss for the period
attributable to the equity shareholders of the Company and 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. In computing dilutive earnings per share, only potential equity
shares that are dilutive and that decrease profit per share are included

1. Working Capital limits availed from the above banks are secured by hypothecation of on entire current assets, i.e.
stock of raw materials, SIP, finished goods and receivables (present & future) of the company and receivables with a
cover period not exceeding 120 days ranking parripassu with one another. Further secured by joint and equitable
mortgage of all immovable properties and by hypothecation of machineries ranking parripassu with one another.

2. The directors of the company namely Mr.T.Balakumarand Mrs.A.Sudha have personally guaranteed the above
credit facilities and have given landed properties situate in various locations as collateral securities towards the
credit facilities availed from Banks.

3. The Company has not defaulted in repayment of loans and interest.

39 Additional statutory information

a) There are no proceedings 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.

b) The Company has not revalued its property, plant and equipment (including the right of use assets) and
intangible assets.

_c) The Company does not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.

d) The Company has borrowings from banks or financial institutions that are secured against current assets and has
filed required information with the lender on regular basis.

e) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

f) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017 for the year under consideration.

g) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of
the Companies Act, 2013 during the year.

h) The company has not advanced or loaned or invested 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 (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.

The company has also 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 (i)
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 (ii) provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

i) The Company do not have any transaction which are not recorded in the books of accounts that has been
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the
years.

j) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence,
disclosures relating to it are not applicable.

k) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period

41 Fire Accident Claim

There was a major fire accident in the factory on August 19, 2018 in which substantial quantities of Waste
Paper were totally destroyed. The loss on account of this fire accident is assessed at Rs.17.08 crores. The
insurance company has repudiated the claim on highly unreasonable grounds. The Company has filed an
appeal against the repudiation of claim by the Insurance Company. In the event of appeal coming in favour of
the company, the claim money will be credited to Income in the year of receipt.

42 The Code on Social Security, 2020 ("Code") relating to employee benefits during employment and post
employment benefits received Presidential assent in September 2020. The Code has been published in the
Gazette of India. 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.

43 Pursuant to amendment in Schedule III to the Companies Act, 2013 by Ministry of Corporate Affairs vide its
notification dated March 24, 2021 the comparative figures as disclosed in these results have been
regrouped/reclassified, wherever necessary, to make them comparable to current year figures.

^{As per our report of} e^{ven date} For and on behalf of the Board of Directors of Subam

/or^CNGSN& ^{Associates LLP} Papers Limited

Chartered Accountants [CIN: U21012TN2004PLC054403]

Firm Registration No. 04915S/S200036

E K

Srivatsan T Balakumar A Sudha

Partner Managing Director Director

Membership No.

225064 DIN: 00440500 DIN: 01515113

Place:

Chennai

Date:26.05.2025

M Jahir Hussain Nagarajan P

Company

Chief Financial Officer Secretary

Place: Tirunelveli

Date:26.05.2025

2.11 Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which reliable
estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not
discounted to its present value and are determined based on best estimate required to settle the obligation
at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current
best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is
neither recognised nor disclosed in the financial statements.

2.12 Cash and Cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known
amount of cash that are subject to an insignificant risk of change in value and having original maturities
of three months or less from the date of purchase, to be cash equivalents.

2.13 Events after reporting period

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

2.14 Employee benefits

-_^ k''U

All employee benefits payable wholly within twelve months after the end of the annual reporting period
of rendering the service are classified as Short-Term Employee Benefits and they are recognised in the
period in which the employee renders the related service.

The Company recognizes the undiscounted amount of Short-Term Employee Benefits expected to be paid
in exchange for services rendered as a liability (accrued expense) after deducting any amount already
paid.

Retirement Benefits

1. Gratuity is provided for the eligible employees as per the Payment of Gratuity Act 1972 with actuarial
valuation. The company does not have any approved super annulation fund to its employees.

2. The company contributes Provident Fund to the employees under the Employees Provident Fund
Scheme run by the Government.

3. As per the rules and regulations of the company the leave encashment is drawn within the year itself
and no amount need to be provided.

2.15 Earnings per share

Basic earnings per equity share is calculated by dividing the net profit or loss for the period attributable
to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share is computed by dividing the net profit or loss for the period attributable to the
equity shareholders of the Company and 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. In computing dilutive earnings
per share, only potential equity shares that are dilutive and that decrease profit per share are included.

i. The company has received demand order under GST on 29th April 2024 and the demand created is
for Rs. 740.15 lakhs. The company has filed an appeal against the same challenging the amount of Rs.
724.52 lakhs. The company has made a pre-deposit of Rs. 29.77 lakhs on 21st June 2024.

ii. The Company has received GST Audit observation for the period 01.04.2020 to 3 1.03.2021 and
01.04.2021 to 31.03.2022 on 29th June 2024, which indicates the descripences of Rs. 1491.94 lakhs and
282.61 lakhs respectively. The company is in the process of responding to the GST observation.

38 Additional statutory information

a) There are no proceedings 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.

b) The Company has not revalued its property, plant and equipment (including the right of use assets) and intangible
assets.

c) The Company does not have any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.

d) The Company has borrowings from banks or financial institutions that are secured against current assets and has filed
required information with the lender on regular basis.

e) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

f) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017 for the year under consideration.

g) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013 during the year.

h) The company has not advanced or loaned or invested 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 (i) 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 (ii) provide any guarantee, security or the like to ot on behalf of the Ultimate Beneficiaries.

The company has also 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 (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

i) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered
or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

j) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence,
disclosures relating to it are not applicable.

k) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies

(ROC) beyond the statutory period. _

40 Fire Accident Claim

There was a major fire accident in the factory on August 19,2018 in which substantial quantities of Waste Paper were
totally destroyed. The loss on account of this fire accident is assessed at Rs. 17.08 crores. The insurance company has
repudiated the claim on highly unreasonable grounds. The Company has filed an appeal against the repudiation of
claim by the Insurance Company. In the event of appeal coming in favour of the company, the claim money will be
credited to Income in the year of receipt.

41 The Code on Social Security, 2020 ("Code") relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
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.

42 Pursuant to amendment in Schedule in to the Companies Act, 2013 by Ministry of Corporate Affairs vide its
notification dated March 24,2021 the comparative figures as disclosed in these results have been
regrouped/reclassified, wherever necessary, to make them comparable to current year figures.

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

for CNGSN & Associates LLP Limited

Chartered Accountants [CIN: U21012TN2004PLC054403]

Firm Registration No. 04915S/S200036

E-K''Srivatsan ^ Balakumar A Sudha

Partner m CHENNAI Managing Director Director

Membership No. 225064 \Jfo] DIN: 00440500 DIN: 01515113

Place: Chennai p, ^ ‘

Date: &l f cft{ru> QV g,

M Jahir Hussain Nagarajan P

Chief Financial Officer Company Secretary

Place: Tirunelveli
Date: o