Pursuant to removal of indexation benefit and change in tax rate on long term capital gain on enactment of the Finance Act 2024, the Company has reassessed deferred tax liabilities which has resulted in reversal of deferred tax liability of INR 8.62 crores which has been recorded for the year ended March 31, 2025.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

No advances are due from Directors or other officer's of the Company either severally or jointly with any other person. Nor any advances are due from firm or any private companies respectively in which any director is a partner, a director or a member.

* includes recoverable on account for sale of wind banking units.

Pursuant to the Scheme of Arrangement becoming effective as at April 01, 2023; the authorised share capital of the Company stands increased to INR 35,15,00,000 divided into 17,57,50,000 equity share of INR 2/- each.

Terms / rights attached to equity shares

The Company has one class of equity shares having a par value of INR 2/- per share. Each shareholder is entitled to one vote per equity share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting. In the event of liquidation on the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding. The Company declares and pay dividend in Indian Rupee.

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

No shares have been issued by the Company for consideration other than cash, during the year of five years immediately preceding the reporting date other than the equity shares issued during the year pursuant to Scheme of Arrangement (Refer Note 41)

16.1Term loans from Banks / institutions have been secured against:

a) Rupee term loans aggregating to INR 7.15 crores (March 31, 2024:INR 46.91 crores) is secured by exclusive charge on the specific property, plant and equipment created out of the proceeds of the loan for Company’s units situated in Tamil Nadu. The said loans carry interest rates ranging from 8.65% to 8.95% p.a. The remaining tenure of the loans is 1 to 3 years.

b) Foreign currency term loan aggregating to INR Nil (March 31, 2024: INR 5.67 crores) was secured by an exclusive first charge over movable fixed assets pertaining to Windmill Project situated at Tirunelveli District, Tamil Nadu, both present and future, created out of the proceeds of the loan. The said loan is fully repaid during the year. The said loans had interest rates ranging from 6.66% to 7.65% p.a.

c) Out of all the aforesaid secured Loans appearing in Note 16.1(a) to 16.1(b) totalling INR 7.15 crores (March 31, 2024: INR 52.58 crores), an amount of INR 4.42 crores (March 31, 2024: INR 23.40 crores) is due for payment in next 12 months and accordingly reported under Note 16(B) under the head “current borrowings” as “current maturities of non-current borrowings”.

16.2 Current borrowings: This facility is secured by way of first parri-passu charge on hypothecation on inventory and receivables, and second parri-passu charge on movable property, plant and equipment of the Company situated at Paravai & Manaparai, Tamil Nadu; and borrowed as under:

(a) Credit Facilities in Indian Rupees: The facilities availed by way of bank overdraft, working capital demand loan and Export Packing Credit are repayable on demand and carries interest rate ranging between 7.40% to 9.40% p.a.

(b) Credit facilities in foreign currency : The Company has availed Foreign Currency loan by way of Buyer's credit which is payable on demand and carries interest rate ranging between 3.14% to 3.25% p.a. (without Forward Premium).

(c) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

16.3 The Company has satisfied all the loan covenants.

16.4 As at March 31, 2025 the Company has available INR 243.95 crores (As at March 31, 2024: INR 280.93 crores) of undrawn committed borrowing facilities.

30 Earnings per share

Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

31 Significant accounting judgements, estimates and assumptions

The preparation of Company’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and the accompanying disclosures and disclosure of contingent liabilities. Uncertainty about the assumptions and estimates could result in outcomes that require a material adjustment to the carrying value of assets or liabilities affected in future periods.

Other disclosures relating to the Company’s exposure to risks and uncertainties includes:

• Financial risk management objectives and policies in Note 39

• Sensitivity analyses disclosures in Note 32 and Note 39

• Capital Management Note 40

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimates are revised and in any future periods affected.

Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:

(i) Judgements

In the process of applying the accounting policies, management has made the following judgements, which have significant effect on the amounts recognised in the financial statements:

Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the amount and timing of revenue from contracts with customers:

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved, in writing, by the parties to the contract, the parties to contract are committed to perform the irrespective obligations under the contract, and the contract is legally enforceable.

Judgement is required to determine the transaction price for the contract and to ascertain the transaction price to each distinct performance obligation. The transaction price could be either a fixed amount of customer consideration or variable consideration with elements such as a right of return the goods within a specified period, volume discounts, cash discount and price incentives.. Any consideration payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct product from the customer.. The Company allocates the elements of variable considerations to all the performance obligations of the contract unless there is observable evidence that they pertain to one or more distinct performance obligations.

Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with Ind AS 37, ‘Provisions, contingent liabilities and contingent assets’. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss.

(ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(iii) Provision for expected credit losses of trade receivables and contract assets

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

(iv) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to impairment assessment of Property plant and equipment and intangible assets.

(v) Useful lives of Property, plant and equipment

' The estimated useful lives of property, plant and equipment are based on a number of factors including the effects of obsolescence, demand, competition, internal assessment of user experience and other economic factors (such as the stability of the industry, and known technological advances) and the level of maintenance expenditure required to obtain the expected future cash flows from the asset. The Company reviews the useful life of Property, plant and equipment at the end of each reporting date.

(vi) Post-retirement benefit plans

Employee benefit obligations (gratuity obligation) are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 32.

(vii) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer Note 39 for further disclosures.

32 Defined benefit and contribution plan

Defined contribution plan

The Company makes contributions towards provident fund to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits. Contribution paid for provident fund is recognised as expense for the year :

Gratuity (funded)

The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each year of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Employees who are in continuous service for a year of 5 years are eligible for gratuity. The amount of gratuity payable to an employee upon leaving the Company is the 50% of Fixed cost to Company per month computed proportionately for 15/26 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to Gratuity Trust registered under Income Tax Act, 1961.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at March 31, 2025. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The plan assets are managed by the Gratuity Trust formed by the Company. The management of 100% of the funds is entrusted according to norms of Gratuity Trust, whose pattern of investment is available with the Company.

Expected contribution in the next year is INR 1.69 crores (March 31, 2024: INR 0.67 crores)

The average duration of the defined benefit plan obligation at the end of the reporting year is 7 years (March 31, 2024:

7 years).

Risks associated with defined benefit plan

Gratuity is a defined benefit plan and Company is exposed to the Following Risks:

Interest rate Risk: A fall in the discount rate which is linked to the Government Securities Rate will increase

the present value of the liability requiring higher proportion. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the

future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount

rate which is determined by reference to market yields at the end of the reporting year on Government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in Government securities, and other debt instruments.

Asset Liability Matching The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines

Risk: of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM Risk.

Mortality Risk: Since the benefits under the plan is not payable for life time and payable till retirement

age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk all the assets are invested with the insurance Company

and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow regulatory guidelines which mitigate risk.

On the basis of current status of individual case for respective years and as per legal advice obtained by the Company, wherever applicable, the Company is confident of winning the above cases and is of the view that no provision is required in respect of above cases.

# Government of India had vide its Notification dated March 29, 2020, issued under the National Disaster Management Act 2005, directed that all employers shall make full payment of wages, of their workers at their workplaces, for the year of closure under the lockdown. Subsequently, on the petitions filed by some of the employers against the aforementioned notification, the Hon’ble Supreme Court of India, passed an interim order dated June 12, 2020 and directed employers to enter into negotiation and settlement with workers for wages payment during the lockdown year. The aforesaid notification stood withdrawn w.e.f May 18, 2020. In the meanwhile, the Company had made payments to its workers and decided to do the final settlement, if any as per the final order of the Hon’ble Supreme Court of India. During the current year, the Hon’ble Supreme Court has vide its order dated May 17, 2024 dismissed all the civil writ petitions filed by the employers challenging the Notification dated March 29, 2020, issued under the National Disaster Management Act 2005, by reserving or leaving the rights of both, the employers and the workmen to be decided by the forum having appropriate jurisdiction if, and when such issues are agitated before such forum. There are no such issue are agitated till date.

## Claims under this heading relate to legal cases pending in different courts under the jurisdiction of Hon'ble Supreme Court, Hon'ble Madras High Court and the courts subordinate to them. Claims relate to Cross-subsidy levied by TANGEDCO, which is challenged by HT power consumers in Tamil Nadu, currently directed to the Hon'ble Supreme Court. Apart from theses certain disputes on account of delayed payments are also pending which on merit are weak and the Company has fair chances of winning these cases.

The sales to related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2025, and March 31, 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

35 Segment information

The Company deals in only one business segment of manufacturing and sale of textile products and the Chief Operating Decision Maker (CODM) reviews the operations of the Company as a whole, hence there is no reportable segments as per Ind AS 108 “Operating Segments”. The management considers that the various goods provided by the Company constitutes single business segment, since the risk and rewards from these products are not different from one another. However the Company has disclosed the following geographical information as follows:

36 Hedging activities and derivatives

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative instruments are foreign currency risk.

The Company’s risk management strategy and how it is applied to manage risk are explained in Note 39. Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for years consistent with foreign currency exposure of the underlying transactions, generally upto 4 months. These contracts are not designated in hedge relationships and are measured at fair value through profit or loss.

The management assessed that cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, export incentives and other receivables from government authorities, others trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The other current financial liabilities represents Capital creditors and Employee benefit related payable and unpaid dividend, carrying value of which approximates the fair values as on the reporting date.

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds FVTPL investments.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a Banking and Operations Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk Committee provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include investments, loans and borrowings, deposits and derivative financial instruments.

The sensitivity analyses in the following sections relate to the position as at March 31, 2025 and March 31, 2024. The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt are all constant.

a) 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’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

In order to optimize the Company’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

The Company is not exposed the significant interest rate as at a respective reporting date.

b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities. The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12 month for hedges of forecasted sales and purchases in foreign currency. The hedging is done through foreign currency forward contracts.

its designated vendor(s). The price in the purchase contract is linked to the certain indices. The Company’s commercial department has developed and enacted a risk management strategy regarding commodity price risk and its mitigation.

d) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with Banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit worthiness and market intelligence. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are categorized and assessed for impairment collectively. The calculation is based on exchange losses historical data. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company’s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Banking & Operations Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

The Company's maximum exposure to credit risk for the components of the Balance sheet at March 31, 2025 and March 31, 2024 is the carrying amounts as given in Note 9. The Company’s maximum exposure relating to financial guarantees and financial derivative instruments is noted in note on commitments and contingencies and the liquidity table below.

Liquidity risk

Liquidity risk is the risk that the Company will encounter in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The approach of the Company to manage liquidity is to ensure, as far as possible, that it should have sufficient liquidity to meet its respective liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risk damage to their reputation. The Company also believes a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company’s policy is to keep the gearing ratio of less than 75%. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2025 and March 31, 2024.

41 Accounting for Scheme of Arrangement - Spinning Division:

During the previous year, the Company had given effect of the demerger of spinning business from GHCL Limited (“Demerged Company”) into GHCL Textiles Limited (“Resulting Company”/"Company") as per the order of National Company Law Tribunal (“NCLT”), Ahmedabad, dated February 08, 2023 for the approval of Scheme of Arrangement.

The Company has given effect to the aforesaid demerger during the year ended March 31, 2024 in accordance with the accounting treatment prescribed in the Scheme and relevant accounting standard.

Accordingly, the Spinning division (along with all assets and liabilities thereof as at the appointed date April 01, 2023 stated in the Scheme) have been transferred to the Company on a going concern basis at a book value of INR 1,359.28 crores. As a consideration for the Demerger, the Company has issued 9,55,85,786 equity shares of INR 2 each amounting INR 19.12 crores to the shareholders of Demerged Company as on the record date in a 1:1 swap ratio i.e. one equity share of INR 2 each has been issued by the Company for every one equity share of INR 10 each held in Demerged Company at a premium of INR 1,578.16 crores. The difference of INR 238.00 crores being the difference between the book value of net assets received and the equity share capital issued including securities premium has been debited to capital reserve.

42 Additional regulatory information

1 The Company does not have any Benami property under Benami Transactions (Prohibitions) Act, 1988 and the rules made thereunder, where any proceeding has been initiated or pending against the Company for holding any Benami property.

2 The Company does not have any transactions with Companies struck off.

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

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

5 The Company has 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

6 The Company has 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,

7 The Company does not any such transaction which are 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

8 The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(i) During the year ended March 31, 2025, the Board of Directors, at their meeting held on February 03, 2025, approved the discontinuation of production at the outdated Kaveri section of the Manapparai Unit. This decision was primarily driven by the high repair and maintenance costs associated with the ageing machinery. The proceeds from the sale of the section's assets will be strategically reinvested in modernizing other parts of the unit, with a focus on enhancing value-added product lines. Production activities at the Kaveri section were officially discontinued with effect from March 24, 2025. The Company has assessed the impact of this discontinuation and confirms that there is no significant effect on its financial results or overall operations.

44 Audit Trail

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in

the software, except that audit trail feature is not enabled for certain changes made using privileged/ administrative access rights in respect of other software used by the Company to maintain payroll records. Further, no instance of audit trail feature being tampered with was noted in respect of above said software except in regard to privileged access users as mentioned above.

45 Reclassification in the Balance sheet

During the year, the Company has reassessed presentation of outstanding employee salaries and wages, which were previously presented under ‘Trade Payables’ within ‘Current Financial Liabilities’. In line the recent opinion issued by the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) on the “Classification and Presentation of Accrued Wages and Salaries to Employees”, the Company has concluded that presenting such amounts under ‘Other Financial Liabilities’, within ‘Current Financial Liabilities’, results in improved presentation and better reflects the nature of these obligations. Accordingly, amounts aggregating to INR 5.36 crores as at March 31, 2025 (INR 3.35 crores as at March 31, 2024), previously classified under ‘Trade Payables’, have been reclassified under the head ‘Other Financial Liabilities’. Both line items form part of the main heading ‘Financial Liabilities’.

The above changes do not impact recognition and measurement of items in the financial statements, and, consequentially, there is no impact on total equity and/ or profit for the current or any of the earlier periods. Considering the nature of changes, the management believes that they do not have any material impact on the balance sheet at the beginning of the comparative period and, therefore, there is no need for separate presentation of third balance sheet.

46 The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancement of reciprocal tariffs and believes that there are no material impacts on the financial statements of the Company for the year ended March 31, 2025. However, the management will continue to monitor the situation from the perspective of potential impact on the operations of the Company.

47 Standards notified but not yet effective:

There are no new standards that are notified, but not yet effective, upto the date of issuance of the Company’s financial statements.