2.17 Provisions, Contingent Liabilities and Contingent Assets

a) Provision

A provision is recorded when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount
can be reasonably estimated.

Provisions are measured at the present value of management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest
expenses.

b) Contingent Liabilities

Wherever there is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the entity or a present obligation that arises from past events but is not recognized because

• It is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or

• The amount of the obligation cannot be measured with sufficient reliability.

c) Contingent Asset

Contingent assets are not recognized but are disclosed only where an inflow of economic benefits is
probable.

2.18 Current and Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.
Cash or cash equivalent is treated as current, unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period. In respect of other assets, it is treated as current when it
is:

• Expected to be realized or intended to be sold or consumed in the normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

• It is expected to be settled in the normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non¬
current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing
and their realization in cash and cash equivalents. The Company has identified twelve months as its operating
cycle.

2.19 Financial instruments

(a) Recognition:

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

(b) Classification of financials instruments

The Company classifies its financial assets in the following categories:

• Those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss), and

• Those measured at amortized cost.

The classification depends on the entity's business model for managing the financial assets and the
contractual terms of the cash flow.

(c) Measurement

(i) Initial Recognition:

At Initial recognition, the Company measures a financial asset at its fair value plus transaction cost (in
the case of a financial asset not a fair value through profit or loss) that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit
or loss are expensed in statement of profit or loss.

(ii) Subsequent measurement:

• Debt Instruments

Subsequent measurement of debt instruments depends on the company's business model for
managing the asset and the cash flow characteristics of the asset. There are two measurement
categories into which the Company classifies its debt instruments.

- Amortized Cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost. A gain or loss on debt investment
that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized
in profit or loss when the asset is de-recognized or impaired. Interest income from these financial
assets is included in finance income using the effective interest rate method.

- Fair Value through profit and loss statement

Assets that do not meet the criteria for amortized cost or Fair Value through Other Comprehensive
Income (FVOCI) are measured at Fair Value Through Profit or Loss (FVTPL). A gain or loss on a debt
investment that is subsequently measured at FVTPL and is not part of a hedging relationship is
recognized in profit or loss and presented in the statement of profit and loss within other gains/
(losses) in the period in which it arises. Interest income from these financial assets is included in other
income.

• Equity Instruments

The Company subsequently measures all investments in equity (except of the subsidiaries/associate) at
fair value. Where the company's management has elected to present fair value gains and losses on equity
investments in other comprehensive income, there is no subsequent reclassification of fair value gains
and losses to profit or loss. Dividends from such investments are recognized in profit or loss as other
income when the Company's right to receive payments is established.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not
reported separately.

Where the Company elects to measure fair value through profit and loss, changes in the fair value of such
financial assets are recognized in the statement of profit and loss.

(d) Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through the
expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on
initial recognition.

Expense is recognized on an effective interest basis for debt instruments other than those financial liabilities
classified as at FVTPL. Interest expense is recognized in profit or loss and is included in the 'finance cost' line
item.

(e) Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial assets
measured at amortized cost, lease receivables, trade receivables, and other contractual rights to receive
cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring
as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls),
discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or
originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual
terms of the financial instrument through the expected life of that financial instrument.

For trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit
losses.

(f) De-recognition of financial assets and financial liabilities

The Company de-recognizes a financial asset when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Company recognizes its retained interest in
the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all
the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the
financial asset and also recognizes a collateralized borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset's carrying amount
and the sum of the consideration received and receivable and the cumulative gain or loss that had been
recognized in other comprehensive income and accumulated in equity is recognized in profit or loss if such
gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset.

The Company de-recognizes financial liabilities when, and only when, the Company's obligations are
discharged, cancelled or have expired. An exchange 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. Similarly, a substantial modification of the terms of an existing financial liability
(whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment
of the original financial liability and the recognition of a new financial liability. The difference between the
carrying amount of the financial liability derecognized and the consideration paid and payable is recognized
in profit or loss.

2.20 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and 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
segregated based on the available information.

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on
hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and bank overdrafts/cash credits. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.

2.21 Key sources of estimation uncertainty

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.

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) Estimation of long term and post employment benefits

The Company engages the services of an actuary to compute the present value of its defined benefit
obligations in respect of compensated absences and gratuity payable to its employees. The estimation
involves use of assumptions and inputs such as life expectancy, attrition rate, salary increment rate etc.

b) Useful life of Property, Plant & Equipments and Intangible Assets

The Company reviews the estimated useful lives of Property, plant and equipment at the end of each
reporting period. During the current year, there has been no change in life considered for the assets.

c) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the
Company, including legal, contractor, land access and other claims. By their nature, contingencies will be
resolved only when one or more uncertain future events occur or fail to occur. The assessment of the
existence, and potential quantum, of contingencies inherently involves the exercise of significant judgment
and the use of estimates regarding the outcome of future events.

d) Deferred Tax Assets

The recognition of deferred tax assets requires assessment of whether it is probable that sufficient future
taxable profits will be available against which deferred tax assets can be utilized. The Company reviews at
each balance sheet the carrying amount of deferred tax asset if any.

e) Income tax provision

The company provides for income tax expenditure in respect of the year taking into consideration the
applicable income tax laws which include usage of conclusions drawn for precedents pronounced by various
fora. The actual income tax expense may undergo a change upon completion of tax audit or assessment by
tax authorities and the resultant expense/credit is accounted as and when it arises.

33 Financial risk management

The company is exposed to risks in the form of Market Risk, Liquidity Risk and Credit Risk. The risk management
activities of the company are monitored by the board of directors. The nature and extent of risks have been
disclosed in this note.

a. Market Risk:

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

i) Currency Risk

If a Company has receivable and payables denominated in currency other than INR it exposes the company
to currency risk. As on 31st March 2025, the Company is not exposed to any material currency risks. The
company does not avail any forward contracts or such other instruments to cover its exchange rate risk.

ii) Interest rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company has no significant exposure to interest rate risk as

there are no outstanding borrowings at the close of the year.

iii) Equity Price Risk

The Company is exposed to equity price risk because of its investment in equity shares of its subsidiary
company. Since, the subsidiary company is unlisted and the equity instruments are measured at cost, the
profits of the company is not materially affected due changes in the value of those equity instruments except
when sold.

b. Liquidity Risk:

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The company
has adequate liquid investments built out of internal accruals to meet its short term and long term liabilities.

c. Credit Risk:

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation. The management evaluates the credit risk of individual financial assets at
each reporting date. An expected credit loss is recognized if the credit risk has increased significantly since the
initial recognition of the financial instrument. In general, the company assumes that there has been a significant
increase in credit risk since initial recognition if the amounts are 30 days past due from the initial or extended
due date. However, in specific cases the credit risk is not assessed to be significant even if the asset is due
beyond a period of 30 days depending on the credit history of the customer with the company and business
relation with the customer.

34 Fair values

The fair value of the financial assets and financial liabilities is the amount at which the instrument could be
exchanged in a current transaction between willing parties , other than in a forced or liquidation sale. During
the year 2024-25, the company did not have any financial instrument that was measured at fair value on
recurring basis.

i) Fair value measurement hierarchy is as follows:

a) Level 1 : item of fair valuation is based on market price quotation at each reporting date.

b) Level 2 : item of fair valuation is based on significant observable input like PV of future cash flows, MTM

valuation, etc.

c) Level 3 : item of fair valuation is based upon significant unobservable inputs where valuation is done by

independent value.

ii) The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current
financial assets and are considered to be the same as their fair values, due to their short-term nature.

(iii) The fair values of financial assets and liabilities measured at amortized cost are approximate their carrying
amount.

(iv) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair
values.

39 Other Regulatory Information

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

(ii) The Company did not have any transactions with companies struck off under section 248 of Companies
Act, 2013 or section 560 of Companies Act, 1956.

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

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) 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:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

40 Segment Information

Operating results are regularly reviewed by the entity's chief operating decision maker (CODM) to make

decisions about to be resources allocated to the segment and assess its performance and for which discrete
financial information is available for the following segments which are tabulated below. No operating segments
have been aggregated in arriving at the reportable segments of the company. Specifically the company's
reportable segments under Ind AS 108 are as follows

NOTES FORMING PART OF FINANCIAL STATEMENTS

i) Operating Segment

a) Camphor

b) Real Estate

ii) Geographical information

The Company predominantly operates in India (Country of domicile).

Revenue and expenses directly attributable to segments are reported under each reportable segment. Assets
and liabilities that are directly attributable or allocable to segments are disclosed under each reportable
segment.

42 Previous Years' figures have been regrouped and rearranged, wherever necessary, to conform to current year
classification and rounded off to the nearest lakh rupee.

For and on behalf of the Board of Directors of
As per our report of even date Kanchi Karpooram Limited

For P. Chandrasekar LLP SURESH SHAH DIPESH S JAIN

Chartered Accountants Managing Director Joint Managing Director

Firm Registration No.: 000580S/S200066 DIN: 01659809 DIN: 01659930

S. RAGHAVENDHAR SURENDRA KUMAR SHAH K. ABIRAMI

Partner Chief Financial Officer Company Secretary

Membership No.: 244016

Place: Chennai
Date: May 27, 2025