(xv) Provisions and contingencies

Provisions: A provision is recognised when the Company has a present obligation because
of past events and it is probable that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made.

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 in the present value of those cash
flows (when the effect of time value of money is material).

Contingent liabilities: Contingent liabilities are not recognised but are disclosed in notes to
accounts.

(xvi) Financial instruments

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

Financial assets and liabilities are initially recognised at fair value. Transaction costs that are
directly attributable to financial assets and liabilities [other than financial assets and liabilities
measured at fair value through profit and loss (FVTPL)] are added to or deducted from the
fair value of the financial assets or liabilities, as appropriate on initial recognition. Transaction
costs directly attributable to acquisition of financial assets or liabilities measured at FVTPL are
recognised immediately in the statement of profit and loss.

(a) Non-derivative Financial assets: All regular way purchases or sales of financial assets
are recognised and derecognised on a trade date basis. Regular way purchases or sales are
purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace. All recognised financial assets
are subsequently measured in their entirety at either amortised cost or fair value, depending
on the classification of the financial assets.

Financial assets at amortised cost

A financial asset is measured at amortised cost if both of the following conditions are met:
a) the financial asset is held within a business model whose objective is to hold financial

assets in order to collect contractual cash flows and

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

Effective interest method:

The effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant period. The effective
interest rate that exactly discounts estimated future cash receipts through the expected life
of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on
initial recognition.

Income is recognised on an effective interest basis for debt instruments other than those
financial assets. Interest income is recognised in profit or loss and is included in the “Other
income” line item.

(b) Derecognition of financial assets: A financial asset is derecognised only when the

- Company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.

When the entity has transferred an asset, the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the
financial asset is derecognised. Whether the entity has not transferred substantially all risks
and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the financial asset is derecognised if the
Company has not retained control of the financial asset. When the Company retains control
of the financial asset, the asset is continued to be recognised to the extent of continuing
involvement in the financial asset.

(c) Foreign exchange gains and losses: The fair value of financial assets denominated in a
foreign currency is determined in that foreign currency and translated at the spot rate at the
end of each reporting period. For foreign currency denominated financial assets measured
at amortised cost and FVTPL, the exchange differences are recognised in statement of profit
and loss.

(d) Financial liabilities: All financial liabilities are subsequently measured at amortised cost
using the effective interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify
for derecognition or when the continuing involvement approach applies, financial guarantee
contracts issued by the Company, and commitments issued by the Company to provide a
loan at below-market interest rate are measured in accordance with the specific accounting
policies set out below.

Financial liabilities at FVTPL

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on
remeasurment recognised in statement of profit and loss. The net gain or loss recognised in
statement of profit and loss incorporates any interest paid on the financial liability and is
included in the ‘Other income/Other expenses’ line item.

Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL
are measured at amortised cost at the end of subsequent accounting periods. The
carrying amounts of financial liabilities that are subsequently measured at amortised cost are

determined based on the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments through the expected
life of the financial liability, or (where appropriate) a shorter period, to the net carrying
amount on initial recognition.

Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are measured at
amortised cost at the end of each reporting period, the foreign exchange gains and losses
are determined based on the amortised cost of the instruments and are recognised in the
statement of profit and loss.

The fair value of financial liabilities denominated in a foreign currency is determined in
that foreign currency and translated at the spot rate at the end of the reporting period. For
financial liabilities that are measured as at FVTPL, the foreign exchange component forms
part of the fair value gains or losses and is recognised in the statement of profit and loss.

De-recognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s
obligations are discharged, cancelled or have expired.

An exchange between with a lender of debt instruments with substantially different terms is
accounted for as an extinguishment of the original financial liability and the recognition of
a new financial liability

(xvii) Segment reporting

Operating segments are reported in the manner consistent with the internal reporting to the
chief operating decision maker (CODM). The Company is primarily engaged in (i) trading in
solar, healthcare and autocare products (together referred to as ‘Trading’), (ii) in manufacturing
sector (referred to as ‘Manufacturing’) and (iii) development and sale of real estate units/
projects which the Company started during the year (referred to as ‘Real estate’);
Accordingly, the business segment has been classified into three, (i) Trading; (^Manufactur¬
ing; and (iii) Real estate. Further, the business operations of the Group is only in India. Hence,
geographical segment disclosure is not applicable to the Group. The Chief Operating Decision
Maker (“CODM”) of the Group examines the performance of the Group from the perspective of
Trading, Manufacturing and Real Estate segment.

(xviii) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term
balances (with an original maturity of three months or less from the date of acquisition) and
highly liquid investments that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in
banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on
demand, book overdraft and are considered part of the Company’s cash management system.

(xix) Earnings per share (EPS)

Basic earnings per share are computed using the weighted average number of equity shares
outstanding during the period.

Diluted EPS is computed by dividing the profit or loss attributable to ordinary equity holders
by the weighted average number of equity shares considered for deriving basic EPS and also
weighted average number of equity shares that could have been issued upon conversion of all
dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of
the beginning of the period, unless issued at a later date. Dilutive potential equity shares are
determined independently for each period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for bonus shares, as appropriate

(xx) Assets classified as held for sale

The Company classifies a non-current asset (or disposal group) as held for sale if its carrying
amount will be recovered principally through a sale transaction rather than through continuing
use when the asset (or disposal group) is available for immediate sale in its present condition
subject only to terms that are usual and customary for sales of such assets (or disposal groups)
and its sale is highly probable. The Company measures a non-current asset (or disposal group)
classified as held for sale at the lower of its carrying amount and fair value less costs to sell.

(xxi) Operating Cycle

Based on the nature of products / activities of the Company and the normal time between
acquisition of assets and their realisation in cash or cash equivalents, the Company has
determined its operating cycle as 12 months for the purpose of classification of its assets and
liabilities as current and non-current.

(xxii) Recent IND AS and other statutory/ legal announcements

There are no recent IND AS or other statutory/ legal announcement which have any impact on
the financial statements of the Company.

(iv) Nature and purpose of other reserve

Securities premium: Securities premium is used to record the premium received on issue of shares. It is
utilised in accordance with the provisions of the Companies Act, 2013.

Capital reserve: Represents investment subsidies received in the past against various projects from
government and other agencies.

Retained earnings / Surplus: Retained earnings are the profits / loss that the Company has earned / incurred
till date, less any transfers to other reserves, dividends or other distributions paid to its equity shareholders.
Items of other comprehensive income consists of remeasurement of net defined benefit liability/asset
pertaining to gratuity.

The Company is primarily engaged in (i) trading in solar, healthcare and autocare products (together
referred to as 'Trading'), (ii) in manufacturing sector (referred to as 'Manufacturing') and (iii) development
and sale of real estate units/ projects which the Company started during the year (referred to as 'Real
estate'); Accordingly, the business segment has been classified into three, (i) Trading; (ii) Manufacturing;
and (iii) Real estate. Further, the business operations of the Group is only in India. Hence, geographical
segment disclosure is not applicable to the Group. The Chief Operating Decision Maker ("CODM") of
the Group examines the performance of the Group from the perspective of Trading, Manufacturing and
Real Estate segment. The segment disclosures as per Ind AS 108 - Operating Segments ('IND AS 108')
are given below:

Defined benefit plans

The Company offers gratuity benefits, a defined employee benefit scheme to its employees. The said
benefit plan is exposed to actuarial risks such as longevity risk and salary risk. The Company has not
funded its gratuity obligations. Till previous year the Company had accounted for gratuity benefit on gross
undiscounted basis as the total number of employees had not crossed the limit specified under Payment
of Gratuity Act. The Company has carried out actuarial valuation for the first time as at the year end and
accordingly the comparative figures for the various disclosures pertaining to defined benefit plans under
IND AS 19 for the previous year are not available. The following table sets out the status of the defined
benefit schemes and the amount recognised in the standalone financial statements as per the actuarial
valuation done by an independent actuary.

No. Financial instruments

32

(a) Categories of financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides
additional information on balance sheet items that contain financial instruments. The details of significant
accounting policies, including the criteria for recognition, the basis of measurement and the basis on which
income and expenses are recognised in respect of each class of financial asset, and financial liability are
disclosed in Note 2.

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial
instruments by valuation techniques. The three levels are defined based on the observability of significant
inputs to the measurement, as follows

Level 1: 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 asset or liability that are not based on observable market data (unobservable
inputs).

Quantitative disclosures fair value measurement hierarchy

The derivative instruments in designated hedge accounting relationships is measured at fair value at level
1, with valuation technique being use of market available inputs such as gold prices and foreign exchange
rates.

33 Financial risk management objective

The Company's activities expose it to a variety of financial risks. The Company's primary focus is to
foresee the unpredictability of such risks and seek to minimize potential adverse effects on its financial
performance.

The Company has a robust risk management process and framework in place. This process is coordinated
by the Board, which meets regularly to review risks as well as the progress against the planned actions.
The Board seeks to identify, evaluate business risks and challenges across the Company through such

framework. These risks include market risks, credit risk and liquidity risk._

The risk management process aims to
improve financial risk awareness and risk transparency
identify, control and monitor key risks
identify risk accumulations

provide management with reliable information on the Company’s risk situation
improve financial returns

i) Market risk - Foreign exchange

The Company is exposed to foreign exchange risk arising from foreign currency transactions with foreign
vendors for import of healthcare equipment. Foreign exchange risk arises from recognised assets and
liabilities denominated in a currency that is not the Company’s functional currency. Exposures to foreign
currency balances are periodically reviewed to ensure that the results from fluctuating currency exchange
rates are appropriately managed.

Foreign currency sensitivity analysis

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and
adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number
below table an increase in profit where the ' strengthens 10% against the relevant currency. For a 10%
weakening of the ' against the relevant currency, there would be an equal and opposite impact on profit and
equity. As at the year end and previous year end, there are no foreign currency exposures for the Company.
i) Market risk - Interest rate

Liabilities

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. At the
balance sheet date, the Company is not exposed to changes in market interest rates through bank borrowings
at variable interest rates as there are no long-term borrowings with variable interest rates. Below is the
overall exposure of the Company to interest rate risk for long-term borrowings:

(iii) 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 company's receivables from customers,
loans and investment in mutual funds.

The Company is exposed to credit risk as a result of the risk of counterparties defaulting on their obligations.
The Company’s exposure to credit risk primarily relates to accounts receivable, other financial assets and
cash and cash equivalents. The Company monitors and limits its exposure to credit risk on a continuous
basis. To manage this the Company periodically reviews the financial reliability of its customers, taking into
account the financial condition, current economic trends and analysis of historical bad debts and ageing of
accounts receivables. The carrying amount of financial assets represents maximum credit risk exposure.

Trade receivables and contract assets

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of its customer
base, including the default risk of the industry. Credit risk has always been managed by the Company
through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
customers based on which the Company agrees on the credit terms with customers in the normal course
of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to
assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit
loss allowance for trade receivables and contract assets. The provision matrix takes into account available
external and internal credit risk factors and the Company's historical experience for customers. The
Company allocates each exposure to a credit risk grade based on the historic trend of receivables and
specific factors attributable to parties.

During the year ended 31 March 2025, only 1 customer contributed to more than 10% of total revenue
(31 March 2024: 1).

The Company's exposure to credit risk for trade receivables and contract assets based on type of
customers are as follows

(iv) Liquidity risk

The Company requires funds both for short-term operational needs as well as for long-term expansion programmes.
The Company remains committed to maintaining a healthy liquidity ratio, deleveraging and strengthening the balance
sheet. The Company manages liquidity risk by maintaining adequate support of facilities from its holding company,
and by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets
and liabilities.

The Company is exposed to liquidity risk related to its ability to fund its obligations as they become due. The Company
monitors and manages its liquidity risk to ensure access to sufficient funds to meet operational and financial requirements.
The Company has access to credit facilities and monitors cash balances daily. In relation to the Company’s liquidity risk,
the Company’s policy is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions as they fall due while minimizing finance costs, without incurring
unacceptable losses or risking damage to the Company’s reputation.

The Company's financial liability is represented significantly by long term and short term borrowings from banks/ others
and trade payables. The maturity profile of the Company’s short term and long term borrowings and trade payables
based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below.

34 Capital management

The Company's capital management objectives are
to ensure the Company’s ability to continue as a going concern

to create value for shareholders by facilitating the meeting of long term and short term goals of the Company
The Company determines the amount of capital required on the basis of annual business plan coupled with long term
and short term strategic expansion plans. The funding needs are met through equity, cash generated from operations,
long term and short term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall
debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents and other
bank balances (including non-current earmarked balances).

Explanation for variance more than 25%

(i) The variance in current ratio is mainly due to availment of overdraft from bank during the year.

(ii) The debt equity ratio has changed during the year due to availment of new overdraft from bank.

(iii) The debt service coverage ratio has improved due to higher profits reported during the year on account
of liabilities no longer required

(iv) The return on net equity ratio has improved mainly due to higher profits reported during the year on
account of liabilities no longer required written back.

(v) Trade payable ratio has varied during the year due to absence of property purchase in the current year
due to which the total purchases are substantially lower when compared to previous year.

(vi) Net capital turnover ratio has improved mainly due to higher profits reported during the year on account
of liabilities no longer required written back.

(vii) Net profit ratio and return on capital employed ratio has improved during the year due to higher profits
reported during the year on account of liabilities no longer required written back.

(viii) The Company has investments only in the equity shares of subsidiaries and there are no dividends or
other returns from the subsidiaries for the current year and previous year as such the disclosure of this
ratio is not applicable to the Company.

36 Leases

(i) The Company has treated the leases with remaining lease term of less than 12 months as
if they were “short term leases”. Expense relating to such short term leases recognised in
Profit & Loss account amounts to ' 84.36 (31 March 2024: ' 196.56). All the companies
leases are short term leases.

(ii) The Company has used hindsight, in determining the lease term if the contract contains
options to extend or terminate the lease.

No. Other statutory information

37

(i) The Company does not have any Benami property and there are no proceeding initiated or pending against
the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and the rules made thereunder.

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

(iii) There Company does not have any transactions which are not recorded in the books of accounts that have
been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the
current year and previous year.

(iv) 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 persons or entities, including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

(v) No funds have been received by the Company from any persons or entities, including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company
shall, 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 provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

(vi) There are no Schemes of Arrangements which are either pending or have been approved by the Competent
Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the current year and previous
year.

(vii) The Company had no transactions or balances during current year and previous with following companies
whose names have been struck off by Registrar of Companies.

38 Assets classified as held for sale

As part of management's overall strategy to monotise assets held by the Company, during the previous year,
the Company had obtained approval from its shareholders to sale freehold land parcels held by the Company
in Ulndurpet and Mettur. Accordingly, the carrying value of these freehold land parcels aggregating to
' 1,970.34 have been reclassified from property, plant and equipment to 'Assets held-for-sale' in accordance
with Ind AS 105 - 'Non-current Assets Held for Sale and Discontinued Operations'. The fair value of these
land parcels is exceeding the carrying value and accordingly no provision for impairment has been created

39 Approval of financial statements: The standalone financial statements were approved for issue by the board
of directors on 29 May 2025.

For and on behalf of Board of Directors of
TCM Limited

Sd/- Sd/-

Joseph Varghese Ramesh Babu

Managing Director Director

DIN: 00585755 DIN: 02382063

Sd/- Sd/-

M P Mohanan Gokul V Shenoy

Chief Financial Officer Company Secretary

Kochi, 29 May 2025