12. Provisions and Contingencies

The Company creates a provision when there exists
a present obligation as a result of a past event that
probably requires an outflow of resources and a reliable
estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may,
but probably will not require an outflow of resources.
When there is possible obligation or a present obligation
in respect of which likelihood of outflow of resources is
remote, no provision or disclosure is made.

13. Earnings per Share

The Basic and Diluted Earnings per Share (“EPS”) is
computed by dividing the profit after tax for the year by
weighted average number of equity shares outstanding
during the year.

14. Borrowing Cost

Borrowing cost includes interest, amortization of ancillary
costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign
currency borrowings to the extent they are regarded as
an adjustment to the interest cost. Borrowing costs, if
any, directly attributable to the acquisition, construction
or production of an asset that necessarily takes a
substantial period of time to get ready for its intended
use or sale are capitalized. All other borrowing costs are
expensed in the period they occur.

15. Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques
in hand, bank balances, demand deposits with banks
and other short-term highly liquid investments where the
original maturity is three months or less.

16. Government Grants and Subsidies

The Company is not entitled to any subsidy from
government authorities in respect of manufacturing
units located in specified regions: Grants in the nature
of subsidy which are nonrefundable are credited to the
Statement of Profit and Loss, on accrual basis, where
there is reasonable assurance that the Company will
comply with all the necessary conditions attached
to them. Grants in the nature of subsidy which are
refundable are shown as Liabilities in the Balance Sheet.

17. Measurement of EBITDA

The Company has opted to present earnings before
interest (finance cost), tax, depreciation and amortization
(EBITDA)as a separate line item on the face of the
Statement of Profit and Loss for the year. The Company
measures EBITDA on the basis of profit/ (loss) from
continuing operations.

18. Segment Reporting

i) Business Segment

a. The business segment has been considered as the
primary segment.

b. The Company’s primary business segments are

reflected based on principal business activities, the

nature of service, the differing risks and returns, the
organization structure and the internal financial reporting
system.

c. The Company’s primary business comprises of

manufacturing of knitted garments and trading of fabrics
and since it is the only reportable segment as envisaged
in Accounting Standard 17. ‘Segment Reporting’.
Accordingly, no separate disclosure for Segment

Reporting to be made in the financial statements of the
Company.

ii) Geographical Segment

A geographical segment is a distinguishable component
of an enterprise that is engaged in providing products
or services within a particular economic environment
and that is subject to risks and returns that are different
from those of components operating in other economic
environments. The company provides products or
services only through single establishment. Accordingly,
no separate disclosure for Segment Reporting to be
made in the financial statements of the Company.

21. Disclosure under the Micro, Small and Medium
Enterprises Development Act, 2006 are provided as
under for the year 2023-24, to the extent the Company
has received intimation from the “Suppliers” regarding
their status under the Act.

(i) Principal amount and the interest due thereon
remaining unpaid to each supplier at the end of each
accounting year (but within due date as per the MSMED
Act) Principal amount due to micro and small enterprise
Rs. Nil (PY-Nil)and Interest due on above- Nil (PY- Nil)

(ii) Interest paid by the Company in terms of Section 16 of
the Micro, Small and Medium Enterprises Development
Act, 2006, along-with the amount of the payment made
to the supplier beyond the appointed day during the
period Nil (During 2022-23 Nil)

(iii) Interest due and payable for the period of delay in
making payment (which have been paid but beyond the
appointed day during the period) but without adding
interest specified under the Micro, Small and Medium
Enterprises Act, 2006 Nil (During 2022-23 Nil)

(iv) The amount of interest accrued and remaining unpaid
at the end of each accounting year Nil (During 2022-23

Nil)

(v) Interest remaining due and payable even in the
succeeding years, until such date when the interest dues
as above are actually paid to the small enterprises Nil
(During 2022-23 Nil)

Dues to Micro and Small Enterprises have been determined
to the extent such parties have been identified on the
basis of information collected by the Management. This
has been relied upon by the auditors.

22. Previous year’s figures have been regrouped /
reclassified wherever necessary to correspond with
current year’s classification,

For Balaji and Thulasiraman

Chartered Accountants
Firm Registration No.: 007262S

Place: Chennai CA.S.Balaji FCA DISA

Date-22.05.2024 Partner

Membership No. 202992
UDIN -24202992BKENHD5993