m) Provisions, contingent liabilities and contingent asset
Provisions

Provisions are recognized when the Company has a present obligation from a past event, and
it's likely that resources will be needed to settle it, with a reliable estimate.

If time value of money is material, provisions are discounted using pre-tax rates reflecting risks.
The increase due to time passage is recognized as finance cost. Provisions are reviewed at
each balance sheet date and adjusted.

Provision for doubtful debts, claims, etc., is made if realization is doubtful per management
judgment.

Contingent liability

A contingent liability is a possible obligation arising from past events, confirmed by uncertain
future events. It's not recognized if unlikely to require resource outflow to settle the obligation or
if the measurement is unreliable. They are disclosed separately. Show Cause notices are
considered contingent liabilities only upon conversion to demands.

Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of
the nature of the contingent assets at the end of the reporting period, and, where practicable, an
estimate of their financial effect. Contingent assets are disclosed but not recognised in the
financial statements.

n) Cash and cash equivalents

Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short
term balances with original maturity of less than 3 months, highly liquid investments that are
readily convertible into cash, which are subject to insignificant risk of changes in value.

o) Cash Flow Statement

Cash flows are presented using indirect method, whereby profit / (loss) before 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.

Bank borrowings are generally considered to be financing activities. However, where bank
overdrafts which are repayable on demand form an integral part of an entity's cash management,
bank overdrafts are included as a component of cash and cash equivalents for the purpose of
Cash flow statement.

p) Earnings per share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average
number of equity shares outstanding during the year adjusted for bonus element in equity share.
Diluted earnings per share adjusts the figures used in determination of basic earnings per share
to consider the conversion of all dilutive potential equity shares. Dilutive potential equity shares
are deemed converted as at the beginning of the period unless issued at a later date.

c) Rights, preferences and restrictions in respect of equity shares issued by the Company

1 The company has only one class of equity shares having a par value of Rs.10 each. The equity
shares of the company having par value of Rs.10/- rank pari-passu in all respects including
voting rights and entitlement to dividend. The dividend proposed if any, by the Board of Directors,
is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the
year, the Company has not declared any dividend.

2 In the event of liquidation, shareholders will be entitled to receive the remaining assets of the
company after distribution of all preferential amounts. The distribution will be proportionate to the
number of equity shares held by the shareholder.

(a) **The Company had a pending litigation in the Court of City Civil Judge of Bengaluru, in the form
of rent payable by the Company to M/s Square Projects Associates for the Company's show
Room at M.G. Road, Bengaluru. The case is decided during the year in favour of the Company
and the claim for arrears of rent has been rejected by the Honourable Court. However the Company
has created provision for possible liability of rent and damages amounting to Rs.25.65 lakhs in
the books of accounts in the respective years itself. The Company is paying property tax for the
Show Room at M.G. Road, Bengaluru for the period under litigation and the amount so paid is
shown as receivable from M/s Square Projects Associates in the Balance Sheet. Though the
case has been decided in Company's favour and in expectation of further litigations, the liability
for rent and damages is retained in the books.

(b) The Company is a Resulting Company of the Demerger Scheme of erstwhile Binny Ltd. Subsequent
to the Demerger, the Company was not provided with the list of litigations that are pending and for
which the Company may become liable. Hence, the liability of the Company, if any, arising out of
the settlement of the pending litigations, will be provided for and settled as and when the liability
arises.

(c) The Company along with management of Binny Ltd and B&C Mill Ltd had a pending litigation in
the Additional Labour Court, Chennai regarding various demands raised by Chennai Perunagar
Jananayaka Thozhilalar Sangam (Union) in respect of 22 employees. The case is decided in
favour of union for 6 out of 10 demands raised. The liability of the Company is not ascertained
and the Company along with other respondents is prefering an appeal before higher forum and
hence no provision is made in the books

35 The Company being the resulting company of demerger scheme of erstwhile Binny Limited, An asset
amounting to Rs. 3.29 Crores (Advance made to Ravikumar properties ) was transferred to Binny
mills Limited during the scheme of demerger via Court order. The company has received an enquiry
relating to above advance from Prevention of money laundering Act. As the said asset is received Via
court order, hence the possibility of contravening the provisions of PMLA act does not arise. Further
the amount has been received during the current Financial Year ended 31/03/2024.

36 The company being the resulting company of demerger scheme of erstwhile Binny Limited, has met
the liabilities of the scheme of demerger to fast track the demerger on behalf of binny limited amount
to Rs. 9.73 Crores and the same is recoverable from parent Company (Binny limited ). The management
has created a provision amounting to Rs.4.63 Crores during the year in the books of accounts.

37 Operating Segments

The company is engaged in the business of Trading goods and providing services and therefore, has
only one reportable segment in accordance with Ind AS 108 'Operating Segments'. The operations of
the Company is only within India and accordingly, no disclosure based on geographical location is
applicable.

Financial risk management objectives

The treasury function provides services to the business, co-ordinates access to domestic and international
financial markets, monitors and manages the financial risks relating to the operations through internal
risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk
(including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows
that may result from a change in the price of a financial instrument. The Company's activities are
exposed to such risk

Foreign currency risk management

The Company's operations does not involve transactions denominated in foreign currencies;
consequently, exposures to exchange rate fluctuations does not arise. Accordingly, the Company
does not have any exposure to such risks.

There are no hedged or unhedged foreign currency exposures outstanding at as March 31, 2024 and
March 31, 2023

Disclosure of hedged and unhedged foreign currency exposure

The Company does not have any exposure relating to hedged and unhedged foreign currency
transactions/ balances.

Foreign currency sensitivity analysis

The Company's operations does not involve transactions denominated in foreign currencies;
consequently, exposures to exchange rate fluctuations does not arise. Accordingly, the Company
does not have any exposure to such risks.

Interest rate risk management

The Company does not have any borrowings and accordingly is not exposed to interest rate risk
which arises, if it borrow's funds at both fixed and floating interest rates.

Interest rate sensitivity analysis

The Company does not have any borrowings and accordingly there is no disclosure made in respect
of interest rate sensitivity analysis.

Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Company. The Company is not subject to major credit risk as the majority of its
trade receivables are covered by means of interest free security deposit taken at the inception of the
agreement.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure is the total of the carrying amount of balances with banks, short term deposits with banks,
trade receivables, margin money and other financial assets excluding equity investments.

(a) Trade Receivables

Trade receivables are consisting of a large number of customers. The Company has credit evaluation
policy for each customer and, based on the evaluation, credit limit of each customer is
defined.Wherever the Company assesses the credit risk as high, the exposure is backed by either
bank guarantee/letter of credit or security deposits.The Company does not have higher concentration
of credit risks to a single customer. As per simplified approach, the Company makes provision of
expected credit losses on trade receivables using a provision matrix to mitigate the risk of default in
payments and makes appropriate provision at each reporting date wherever outstanding is for longer
period and involves higher risk.

(b) Cash and Cash Equivalents and Bank Deposits

Credit Risk on cash and cash equivalents, deposits with the banks/financial institutions is generally
low as the said deposits have been made with the banks/financial institutions, who have been assigned
high credit rating by international and domestic rating agencies.Investments of surplus funds are
made only with approved Financial Institutions/Counterparty. Investments primarily include investment
in units of quoted Mutual Funds,etc. These Mutual Funds and Counterparties have low credit risk.

Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective
of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for
use as per requirements. The Company invests its surplus funds in bank fixed deposit and mutual
funds, which carry minimal mark to market risks. The Company also constantly monitors funding
options available in the debt and capital markets with a view to maintaining financial flexibility.

41 Retirement benefit plans
Defined contribution plans
Employees Provident Fund

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in
respect of provident fund, a defined contribution plan, in which both employees and the Company
make monthly contributions at a specified percentage of the covered employees' salary. The
contributions, as specified under the law, are made to the Provident fund as well as Employee State
Insurance Fund.

The total expense recognised in profit or loss of Rs.1.77 lakhs (for the year ended March 31, 2023:
Rs. 1.96 lakhs) represents contribution payable to these plans by the Company at rates specified in
the rules of the plan.

Defined benefit plans

Gratuity

Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed
by multiplying last drawn salary (basic salary including dearness Allowance, if any) by completed
years of continuous service with part thereof in excess of six months and again by 15/26. The Act
provides for a vesting period of 5 years for withdrawal and retirement and a monetary ceiling on
gratuity payable to an employee on separation, as may be prescribed under the Payment of Gratuity
Act, 1972, from time to time. However, in cases where an enterprise has more favourable terms in
this regard the same has been adopted.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate
risk and salary risk.

* due to Redemption of Fixed deposit

*** due to finance cost charged during the year

# Earnings available for Debt Service = Net profit after tax non cash operating expenses
Interest other adjustments

Note 1: Cummulative Redeemable preference shares of the company is classified as Financial liability
as per IND AS and hence the same is considered as debt for computing the ratios.. Since the preference
shares is a financial liability, preference dividend payable is treated as finance cost and the ratios has
been computed accordingly.

Note 2: Preference dividend payable is grouped under current liabilities based on the definition in
Schedule III to the Act, which inter alia requires the company to mandatorily classify liability as current
liability if the company does not have an unconditional right to defer settlement of the liability .
Accordingly while calculating current ratio, the said preference dividend payable grouped under
current liabilties is excluded since the same is not expected to be settled within one year from the
balance sheet date.

Note 3: Reason for differences

a. Debt Service coverage ratio increased due to increase in Earnings available for Debt service.

b. Trade Receivable Turnover Ratio increased due to decrease in average trade receivables.

c. Trade Payables Turnover Ratio increased due to decrease in average trade payables.

d. Netcapital Turnover Ratio decreased due to increase in working capital.

e. Netprofit Ratio decresed due to increase in loss on account of provision for Impairment on
Financial Assets.

f. Return on capital employed decresed due to increase in loss on account of provision for
Impairment on Financial Assets.

44 The Company has advanced monies to Ravikumar Properties Private Ltd in the earlier years towards
purchase of property. Since the said transaction did not materialise the said advance is treated as
advance - others in the financial statements and agreement has been entered into by the company
with Ravikumar Properties Private Ltd to this effect. The company has recovered the amount during
the financial year.

45 Pursuant to the Demerger Order dated 22.04.2010 of the Honourable Madras High Court, the Company
had received its share of land from M/s Binny Limited to the extent of 27.76 acres. However the title
deed in the name of the Company is yet to be registered. The property tax and other taxes pertaining
to the land belonging to the Company are being assessed in the name of Binny Mills Limited and the
same has been duly paid by the Company

46 Acknowledgement of Balances

The Company has obtained confirmation of balances from all the banks. In respect of Advances,
Debtors and Creditors, the confirmation of balances were sought for by the Company and has been
obtained in few cases.

47 Other Statutory Information

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

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company do 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 have not 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

48 Previous year figures have been regrouped/reclassified wherever necessary to conform to current
year figures

As per our report of even date attached

For and on behalf of the board For Ramesh and Ramachandran

Chartered Accountants
(Firm Registration No.002981S)

Sd/- Sd/- Sd/- Sd/-

V.R.Venkataachalam R. Kannan K. Aarthi G. Suresh

Chairman Chief Financial Officer Company Secretary Partner

DIN: 00037524 Membership No. 70915 Membership No. 029366

UDIN: 24029366BKEJQD4505

Place : Chennai
Date : 30.05.2024