2.21 Provisions and Contingent Liabilities:
Provisions: Provisions are recognized when there is a present legal or constructive obligation 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 there is a reliable estimate 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 and are not discounted to its present
value.These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent Liabilities:
Contingent liabilities is a possible obligation in the normal course of business arising from past events, the existence
of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not
wholly within the control of the company or a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made,
is termed as a contingent liability.
The Company does not recognise a contingent liability but discloses its existence in the financial statements.
2.22 Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit / loss before extraordinary items and tax for
the period is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments. Cash flows from operating, investing and financing activities of the Company
are segregated.
2.23 Cash and Cash equivalents Policy:
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes 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.
2.24 Earnings per Share:
Basic earnings per 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. For the purpose of calculating
diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity
shares.
2.25 Exceptional Items:
When an item of income or expense within profit or loss from ordinary is of such size, nature or incidence that their
disclosure is relevant to explain the performance of the company for the year, the nature and amount of such items
is disclosed as exceptional items.
(i) General Reserve
The general reserve is used from time to time to transfer profit from retained earnings for appropriation purposes.
As the general reserve is created by a transfer from one component of equity to another and is not an item of their
comprehensive income.
(ii) Retained earnings
Retained earnings represents the Company's undistributed earnings/(losses) after taxes.
(iii) Revaluation surplus
Revaluation surplus represents the surplus over cost against market value on revaluation of freehold land of the
Company pursuant to recognition of freehold land on revaluation model as per the provisions para 29 to 31 of the
Ind AS 16 - Property, Plant and Equipment. This surplus is not considered for distribution of dividend to equity
shareholders.
38 Company's cotton yarn manufacturing operations from its Aluva, Kerala Plant was permanently stopped wef. 13.6.2022
on account of unsustainable wages, paucity of working capital and steep increase in cotton prices, which resulted
in lower capacity utilisation and making the operations unviable. In view of this, various financial risks (Credit Risk,
Liquidity Risk, Interest Rate Risk, Capital Risk) were not disclosed.
39 The Company has singed a MOU on 08.04.2024 for sale of 24.67 acres of land at Aluva for a sale consideration of Rs 80
Cr. Out of the total 28.13 acres, the buyer would purchase 24.67 acres of land in the first phase and the remaining 3.46
acres also will be purchased by the buyer for the balance sale consideration of Rs 12.00 Cr. Accordingly, the company
has requested the lenders to issue NOC and permit sale of the land and to repay their dues from the sale proceeds,
which is being processed by the Lenders. From the sale proceeds, after paying balance dues to bankers, payment to
trade creditors and other liabilities, the company expects to have surplus funds and intends to carry on outsourcing
of cotton yarn manufacturing / trading in cotton yarn or any other business as permitted in objects clause of the
Memorandum of Association of the company, for better prospects of the company.
40 Company's cotton yarn manufacturing operations from its Aluva, Kerala Plant was permanently stopped wef. 13.6.2022
on account of unsustainable wages, paucity of working capital and steep increase in cotton prices, which resulted
in lower capacity utilisation and making the operations unviable. In view of this, Deferrred Tax Asset for the current
financial year was not recognized and Deferreed Tax Libaility was re-assessed and reversed the excess provision of Rs
71.88 lac during the Financial year 2023-24.
42 Other Statutory Information
a) All title deeds of immovable property are held in the name of the Company and the Company does not have any
immovable property witihout Title in its name.
b) Since there is no addition / deletion in Capital Work in Progress (CWIP) and Intangible assets during the year and
hence disclosures regarding these items were not made.
c) Disclosure on PPE & Intangible Assets
(1) There is no restriction on the title of Property, Plant and Equipment and Property, which was mortgaged to
Lenders for the credit facilities sanctioned to Company.
(2) Company has not constructed any item in Property, Plant & equipment.
(3) Company has no contractual commitments for the acquisition of Property, Plant & Equipment.
(4) Company has no Impairment loss during the year for Property, Plant & Equipment.
(5) Company has not revalued any items of Property, Plant & Equipments during the Year
(6) Carrying amount of Property, Plant & Equipment are retired from active use and held for disposal.
(7) The existence and carrying amounts of intangible assets whose title is not restricted and the carrying amounts
of intangible assets are not pledged as security for liabilities.
d) Company does not hold any benami property and no proceedings were initiated or pending against the company
under the Benami Transactions (Prohibition) Act, 1988 and Rules thereon.
e) The Company is not a declared wilful defaulter by any bank or financial institution or other lenders.
f) The Company has not entered into any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.
g) The Company does not have any charges or satisfaction which is yet to be registerd with ROC beyond the statutory
period.
h) The Company has complied 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.
i) Utilisation of Borrowed funds and share Premium:
A. The Company has not advanced or loaned to 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 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.
B. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding 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.
j) There were no transactions relating to previously unrecorded income that have been surrendered and disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961
k) Company shall not be required to comply with Corporate Social Responsibility (CSR) as provisions of section 135
of the Companies Act, 2013 is not applicable.
l) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
43 Previous year's figures have been regrouped/reclassified wherever necessary to confirm the current year's presentation.
Signature to Note 1 to 43
As per our report of even date attached For and on behalf of the Board of Directors
For L.U. KRISHNAN & Co. B. K. PATODIA UMANG PATODIA
Chartered Accountants Chairman & Managing Director Director
(ICAI FRN 001527S ) DIN No. 00003516 DIN No. 00003588
Place : Mumbai Place : Kochi
Date : 21st May 2024 Date : 21st May 2024
P. K. MANOJ E. K. BALAKRISHNAN ACHUTHAN M
Partner Vice President (Corporate Affairs) & Chief Financial Officer
(M. No. 207550) Company Secretary
Place : Kochi Place : Kochi Place : Kochi
Date : 21st May 2024 Date : 21st May 2024 Date : 21st May 2024
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