20th Annual Report 2022-23

Empowering Employees - Glimpse of Joyous learning

HIGHLIGHTS 2022-23

6,24,820 4,26,689
1,33,671 3,70,669
1,08,416 23.81
81,410 28.89
98,779

High Speed MARZOLI Simplex Machine

Investing high standards of Management quality and hard work,
KPR consistently repeats its sustained growth level accumulating
Directors’ Report 1
long term value for all its stakeholders. KPR is always known for its
robust manufacturing infrastructures with upgraded technology. Corporate Governance Report 18
Its HR strategy always moved towards building an aspirational
work place. Its continued focus and investment in its employee Auditors’ Certicate on Corporate 35
force have helped to build and sustain a dedicated and agile work Governance
force that stood with KPR even in difficult times. Social
responsibility has always been and remains a determined Management Discussion and Analysis Report 37
principle of KPR‘s Corporate policy.
Business Responsibility & Sustainability
K.P.R. Mill Limited is considered as one of the Top 5 Listed Textile
Report 41
Companies in India with diversified business focus spanning
across Yarn, Fabrics, Garments, Green Power, Sugar and
Ethanol, extending employment to over 30,000 people (90% are Auditors’ Report 72
women). The Company has earned a great deal of experience of
over three decades to produce an indelible mark in the textile Balance Sheet 83
landscape. Manufacturing an impressive product range of textile
varieties such as Readymade Knitted Apparel; Fabrics; Compact, Statement of Prot and Loss 84
Melange, Carded, Polyester and Combed Yarn, the Company
reaches out to global customers with diligence, superior quality Cash Flow Statement 85
and delivery excellence.
Statement of Changes in Equity 87
The distinguished ‘KPR Group’ has 15 Manufacturing units of
advanced technology equipped with a capacity to produce Accounting Policies & Notes 88
1,00,000 MT of Cotton yarn & 4,000 MT Viscose vortex yarn per
annum; 40,000 MT fabrics per annum; 157 million readymade Auditors’ Report on Consolidated Financial
knitted apparel per annum, one of the largest Garment Producers
137
in India; Industry acclaimed ETP embedded Fabric Processing Statements
capacity of 30,000 MT per annum equipped with Advanced Cold
Processing Technology and Sophisticated Printing Division with a Consolidated Balance Sheet 144
capacity to print 15,000 MT per annum; 1,00,000 High Fashion
Garments placement printing per day; 63 MW Windmill capacity; Consolidated Statement of Prot and Loss 145
12 MW Solar Power; 93 MW Co-gen power (overall 168 MW
Renewable Energy catering to most of its power needs through Consolidated Cash Flow Statement 146
Green Energy); Sugar Plants with an aggregate capacity of
20,000 TCD and Ethanol Plants with 360 KLPD capacity. The Consolidated Statement of Changes in Equity 148
unique 100% organic cotton based FASO products with multiple
special features has set its foot strongly in the industry. Its Accounting Policies & notes on Consolidated 149
vigorous Pan India spread plans have been initiated. Financials

Fully Air-conditioned Garment Unit at Chengapally

 MAJOR CAPEX-EXPANSION
To accelerate our performance further, we implemented
certain modernization and expansion plans. a brief on the
same is reported below:
v The ‘Roof top’ Solar Power Plant at ` 50 Crores completed
and commissioned.
v The Modernisation plan at an outlay of ` 100 Crores in
Textile segment is expected to be completed during the
current Financial Year.
v Setting up of exclusive Vortex Spinning mill at an outlay of
`100 Crores will be completed during current Financial
Year.
v Processing & Printing expansion at ` 50 Crores will be over
in First Half of the Current Financial year.
v Ethanol Capacity expansion at ` 150 Crores will be
CHAIRMAN’S LETTER commenced before the coming Sugar Season 2023-24.
The solar power should help in saving power cost, the
Dear Fellow Shareholders, increase in the processing capacity to be utilised internally to
meet our additional demand; the Brown field Garment
I am pleased to share with you all that during FY 2023, the capacity expansion may add up 10-20 Million pieces per
Consolidated revenue grew by 28% YoY. Due to high-cost annum; the Ethanol capacity expansion may increase KPR’s
inventory and raw material price inflation the gross margin in total capacity to 480 KLPD.
Spinning activities contracted. Finance cost increased due to
additional working Capital availment, given the inventory In the vortex business, margins are expected to be relatively
buffer and Term Loans for new Sugar and Apparel projects. stable, given the high demand for viscose yarn. On our unique
However, the unstinted support from the Garment segment Retail Brand FASO, the Pan-India plan is on track and is
and our inherent strengths enabled KPR to repeat its looking to expand its footprint in the current year.
performance level, despite the challenges. Now the Cotton The Margin from the Sugar & Ethanol segment is sustainable
prices started stabilizing and the Textile industry is optimistic due to higher returns from the ethanol and co-gen segments.
with Government policies and FTAs.

Latest Technology Auto Coner

HUMAN WELFARE FUTURE AHEAD
People are essential for the success of an organization. Well- With the opening of economies around the world after the
being of employee leads to increased productivity, better COVID crisis, consumers had the opportunity to spend the
collaboration with team members and higher overall job money that they could not during the Covid period.
satisfaction. When employees feel good both physically and Consequently, demand soared and brands and retailers
mentally, they are more likely to be engaged, motivated and increased orders to meet this pent-up demand. However, with
focused at work. Easily accessible education in the form of inflation rising, especially after the Russia – Ukraine war, the
professional development, will play a vital role in helping to demand for consumer goods slowed, while inventories
grow the economy by bridging the skills gap and creating a remained very high. The Geopolitical tensions, high Inflation,
more robust workforce. At KPR, the extension of Higher rising commodity prices and interest rates are impacting many
Education facilities and Career Placement services to economies. Well equipped with the hi-tech integrated
employees besides Industry acclaimed welfare facilities facilities, enthused work force, progressive business model
develop their skills, grow their knowledge and advance their and empowered by strong performance track record, loyal
careers thereby securing their personal growth while customer base and drive for enhancing value for all
supporting greater organizational goals. We are glad to share stakeholders, KPR will keep its growth path in line with the
with you that 100% results were achieved in Class 12 expectation.
Government Examinations in 2023. As in every year, some of
ACKNOWLEDGEMENT
them are Top Scorers and recognizing their achievement KPR
has awarded them Full Scholarship (including Bus & Hostel I always consider that the organizational success is often the
Fee) for their Collegiate Education. result of a team's hard work. I am very happy to have a
Management team that is enthusiastic about doing its work
CREDENTIALS
proficiently. Thank you all for your hard work, dedication and
Based on its performance KPR is considered as one of the Top perseverance. I am thankful to the Board of Directors for their
5 largest and most significant Apparel manufacturers in India. guidance towards the growth of the Company. I would like to
In 2022 Civil Services Examination also, eleven Candidates thank our Bankers, Shareholders and all Stakeholders for their
from the KPR IAS Academy have successfully passed. Among continued support and confidence.
them Two Candidates who are already IFoS and IPS have also
With Best Wishes
passed the IAS Exam.
K.P.Ramasamy
Chairman

Renewable Energy - Rooftop Solar Power at Arasur Factory

BOARD OF DIRECTORS

Sri K.P. Ramasamy Sri KPD Sigamani Sri P. Nataraj

Chairman Managing Director Managing Director

Sri C.R. Anandakrishnan Sri E.K. Sakthivel Sri G.P. Muniappan

Executive Director Executive Director Independent Director

Sri A.M. Palanisamy Dr.K. Sabapathy Sri C. Thirumurthy

Independent Director Independent Director Independent Director

Dr. S. Renganayakei Sri P. Selvakumar Smt V. Bhuvaneshwari

Women Independent Whole-Time Director Women Independent
Director Director
REGISTERED OFFICE BANKERS
No.9, Gokul Buildings, Bank of Baroda
1st Floor, A.K.S. Nagar, IDBI Bank Limited
Thadagam Road, Union Bank of India
Coimbatore - 641 001 Bank of India
Ph: 0422-2478090 ICICI Bank Limited
FAX: 0422-2478050 Citi Bank N.A.
HDFC Bank Limited
CORPORATE OFFICE The Federal Bank Ltd
Standard Chartered Bank
1st Floor, Srivari Shrimat,
Punjab National Bank
1045, Avinashi Road,
The Hongkong and Shanghai Banking
Coimbatore – 641 018
Corporation Limited
Ph: 0422-2207777
FAX: 0422-2207778
Email: [email protected] REGISTRAR AND
Web: www.kprmilllimited.com SHARE TRANSFER AGENTS
NSDL Database Management Limited
CHIEF FINANCIAL OFFICER 4th Floor, Trade World A Wing, Kamala Mills
PL Murugappan Compound, Senapati Bapat Marg, Lower Parel,
Mumbai – 400 013
Phone: 022-49142700
COMPANY SECRETARY & Fax: 022-49142503
COMPLIANCE OFFICER Email: [email protected]
P. Kandaswamy Website: www.ndml-nsdl.co.in

STATUTORY AUDITORS
B S R & Co. LLP, COMPANY CIN
Chartered Accountants, L17111TZ2003PLC010518
KRM Tower, 1st and 2nd Floor,
No.1, Harrington Road, Chetpet,
Chennai - 600 031
 FASO MEN & WOMEN

CA2001 SA3001

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SA3005 SA3006 FS4001 FS4002 FA4020 FA4025

FA4O19 SA3500 FA5002 FA1008 FS306

FW2O1 FW2O2 FW203 FW204 FW205

FW206 FW2O7 FW208 FW230

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FW100; FW3001 FW9001 FW9002 FW9003

Manufactured & Marketed by KPR MILL LIMITED.

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OnUra poHM rn«v.taaoJn O^SIOOO Zfasoclcthings For Trade Enquiries Contact - 97677 02222
DIRECTORS’ REPORT
Dear Members,
The Board of Directors takes pleasure in presenting the report on the operations and business of the Company along with Audited Financial
Statements for the Financial Year ended 31st March, 2023.

FINANCIAL RESULTS (` in Lakhs)

Particulars Standalone Consolidated
2022-23 2021-22 2022-23 2021-22
Sales and Other Income:-
Domestic Sales 2,85,579 2,42,442 3,69,601 2,95,811
Export Sales 1,71,502 1,52,427 2,26,417 1,71,667
Other Income 29,886 20,961 28,802 23,492
4,86,967 4,15,830 6,24,820 4,90,970

Profit before Interest & Depreciation 92,909 1,06,853 1,33,671 1,30,593

Less : Interest 2,670 1,339 7,886 2,329
Depreciation 7,764 7,565 17,369 14,112
Profit Before Tax 82,475 97,949 1,08,416 1,14,152

Less : Taxation:-
Provision for Current Tax 18,324 24,870 25,273 29,706
Tax relating to earlier years (802) (75) (982) (53)
17,522 24,795 24,291 29,653
Deferred Tax expense / Credit 1,449 74 2,715 315
Profit After Tax 63,504 73,080 81,410 84,184
Other Comprehensive Income (Net of tax) - - - -
Total Comprehensive Income 63,504 73,080 81,410 84,184

REVIEW OF OPERATIONS
EXPANSION
The year began with a positive note of robust growth and
profitability. But the steep increase in cotton prices at all time high During the year, we have installed 10 MW rooftop Solar Power
level coupled with lower yarn price realisation has trimmed the plant whose benefit can be derived from the current year, upon
cotton-yarn spreads. However, the supportive trends in garment receipt of the approval from TANGEDCO.
segment enabled better performance, overcoming these
challenges. The wind power generation during the year was good. The Company also have plans to establish separate Spinning Mill
Despite the adverse factors like Global recession, Ukraine war, for Viscose Yarn production, besides expanding Ethanol
huge volatility in cotton prices, high inflation etc., the inherent production capacity through our Wholly Owned Subsidiary
strengths enabled KPR repeating a better performance during the Companies. Considering the developments in the textile market
year also. further plans may be decided by the Board at appropriate time.

WAY FORWARD BRANDED RETAIL BUSINESS

The cotton prices have started stabilising and the garment order FASO
position continues to be encouraging. The Indian textile industry is
Consumers’ increasing focus on sustainability and ethical
optimistic of retaining the growth level with the supportive
production has added significance to our FASO products, which
Government policies, FTAs with significant markets that are likely
are organic centric. Enthused by the response to various styles in
to create more market opportunities for entire textile value chain.
Men’s wear, we have introduced Women’s wear also in October
To improve its performance further, KPR has contemplated
2022, which is also well received in the Market. Consequent on
certain modernisation and expansion plans.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 1

DIRECTORS’ REPORT
better handling of the pandemic by Indian Authorities over the Government advanced the target of 20 percent ethanol blending
years, its impact started receding that enabled resurgence of our to the year 2025 (earlier 2030). To increase revenue we are
efforts towards ‘Pan-India’ spread. In addition to the Southern planning to expand Ethanol production capacity.
States, we have already launched FASO products in some of the
States of commercial importance and planning to add more such K.P.R. SUGAR MILL LIMITED
States in the current year.
The sugarcane crushing for sugar season 2022-23 commenced in
DIVIDEND October 2022, produced 1,22,730 MT of Sugar. The Co-gen plant
produced 1437.38 lakhs units of Power. Out of the same,
Considering better performance and strong liquidity during the 796.21 lakhs units were sold and 641.17 lakh units were captively
year, the Board of Directors have declared an Interim Dividend consumed. During the year 38,936.42 KL of Ethanol was
@ 200% on equity shares (` 2 per Equity Share) at their meeting produced, using Sugar Syrup and Molasses and the entire
held on 06.02.2023. The Board in its meeting held on 03.05.2023 production was sold to Oil Marketing Companies. The expansion
also has recommended a Final Dividend of 200% (` 2 per Equity plan to increase Ethanol production capacity from 90 KLPD to
Share) on Equity Shares, thus aggregating to 400 % (` 4 per 240 KLPD with Zero Liquid Discharge System is in progress.
Share on Equity Share of Face Value of ` 1 each), for the Financial
Year 2022-23, subject to the approval of the Members of the During the year, an Interim Dividend of ` 130/- on the Equity
Company at the 20th (Twentieth) Annual General Meeting. shares of Face Value of ` 10/- each was declared by its Board in its
meeting held on 06.02.2023.
FINANCE
KPR SUGAR AND APPARELS LIMITED
Consequent to the expansion of Garment & Sugar business and
the availment of additional Working Capital, the finance charges Ramping up of production in the new 42 million Garments capacity
has gone up over previous year. However, led by the successful at Chengapally, Tirupur district, Tamil Nadu has been completed
financial planning comfortable financial position continued during and is successfully executing the orders from International
the year also. Some of the term loans availed for the new garment Buyers.
project were repaid and fresh term loan from Banks was availed
The sugarcane crushing for sugar season 2022-23 commenced in
towards the expansion of Ethanol project in our wholly owned
November 2022, produced 98,565 MT of Sugar. The Co-gen plant
Subsidiary Company.
produced 1,468.85 lakhs units of power. Out of the same, 900.34
SUBSIDIARY COMPANIES lakhs units were sold and 568.51 lakh units were captively
consumed. During the year 29,866 KL of Ethanol was produced,
The statements pursuant to Section 129(3) of the Companies Act, using Sugar Syrup and Molasses and the entire production was
2013 (Hereinafter referred to as the 'Act') in ‘Form AOC - 1‘ sold to Oil Marketing Companies.
containing the details of following Wholly Owned Subsidiary
Companies forms part of this Annual Report. However as required JAHNVI MOTOR PRIVATE LIMITED
by the 'Act', we give below a brief report on their performance.
During the year, the Company could sell 156 Audi Cars and
I. K.P.R. Sugar Mill Limited earned a total revenue of ` 113.91 Crores. Steady economic
II. KPR Sugar and Apparels Limited growth amid signs of moderating inflation, coupled with strong
III. Jahnvi Motor Private Limited earnings, is fueling the demand at the higher end of the market
IV. Quantum Knits Pvt. Limited and supporting sales of luxury vehicles. Local demand continues
V. Galaxy Knits Limited to be strong.
VI. KPR Exports Plc
VII. KPR Mill Pte. Ltd. QUANTUM KNITS PVT. LIMITED

SUGAR During the year, an Interim Dividend of ` 1500/- on the Equity

shares of Face Value of ` 10/- each out of accumulated reserves
The year under review was a successful year for the Indian Sugar was declared by its Board in its meeting held on 06.02.2023.
industry and is on track for steady growth in the current year too.
Though the acreage remains the same, the yield was better due to GALAXY KNITS LIMITED
crop variety, better farming practices, etc. With the Government’s
continuous support towards the sugar sector and increasing focus The Company has not yet commenced its operation.
on diversion towards ethanol production to promote Ethanol
Blending Program in India, the sugar sector is likely to gain K P R EXPORTS PLC (ETHIOPIA)
traction going forward.
As informed in the earlier report, we have already approached the
ETHANOL Ethiopian Authorities seeking their assistance to formally close
the Apparel manufacturing unit at Ethiopia due to civil disturbance
Encouraged by the success of achieving the target of 10 percent and to bring back capital materials therein. The same is being
Ethanol blending in petrol, much ahead of the target date, the followed up.

2 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

DIRECTORS’ REPORT
KPR MILL PTE. LTD ( SINGAPORE ) commission etc., to its Chairman, Managing Directors and fixed
monthly remuneration to its Executive Directors and Whole Time
The Company was established primarily for the purpose of Director in line with the approvals accorded by the General
marketing the products manufactured at Ethiopia. However, Meetings and in pursuance of the recommendation of the
considering the changed business environment therein and the Nomination and Remuneration Committee as per the guiding
growing International trade at our Company, the Management is principles laid down in the Nomination and Remuneration Policy.
planning to utilise the services of this Company for its future The information as required by Companies (Appointment and
business plans. Remuneration of Managerial Personnel) Rules, 2014 is
appended.
DEPOSITS
ANNUAL PERFORMANCE EVALUATION
The Company has not accepted any deposits from public during
the year under review. In line with the criteria evolved by the Nomination and
Remuneration Committee, the performance of all Directors,
DIRECTORS Committees, Chairman etc., have been evaluated pursuant to the
provisions of the Act and the Listing Regulations.
Mr. K.N.V. Ramani, Independent Director passed away on
30.03.2023. Taking note of his long association and sane advice, COMMITTEES
the Board placed on record the invaluable services rendered by
him as Lead Independent Director and Corporate Lawyer. As required by the provisions of the Act and Listing Regulations,
the Company has already formed the following Committees, the
The Board of Directors, at its meeting held on May 03, 2023, details of which are disclosed in the Report on Corporate
based on the recommendation of the Nomination & Remuneration Governance forming part of this Report.
Committee appointed Mrs V. Bhuvaneshwari (DIN: 01628512) as
an Additional Director (Non-Executive & Independent) to hold I. Audit Committee
office till the conclusion of the ensuing Annual General Meeting II. Stakeholders Relationship Committee
and subject to the approval of the members in the said Annual
III. Nomination and Remuneration Committee
General Meeting appointed as ‘Woman Independent Director’ of
IV. Corporate Social Responsibility (CSR) Committee
the Company to hold office for a term upto 5 consecutive years. To
V. Risk Management Committee
regularize her appointment in the 20th Annual General Meeting
(AGM) of the Company, suitable resolution is included in the POLICIES
notice of AGM proposing her appointment.
In pursuance of the Act and the Listing Regulation, the following
Pursuant to the provisions of Rule 6 of the Companies policies have been framed and disclosed on the Company's
(Appointment and Qualifications of Directors) Rules, 2014, website www.kprmilllimited.com
Mrs.V.Bhuvaneshwari (DIN: 01628512) had passed the online I. Nomination & Remuneration Policy
proficiency self-assessment test conducted by the ‘Indian Institute
II. Related Party Transaction Policy
of Corporate Affairs’.
III. CSR Policy
The Company has adequate Independent Directors in IV. Whistle Blower Policy consisting of Vigil Mechanism
compliance with the Act and SEBI (Listing Obligations and V. Policy on Determining Material Subsidiaries
Disclosures Requirements) Regulation, 2015 (Hereinafter VI. Code for Fair Disclosure
referred to as Listing Regulations). Familiarization Program on the VII. Risk Management Policy
Company and its operation was conducted for the Independent VIII.Dividend Distribution Policy
Directors. Requisite declaration from the Independent Directors of The Web-link - https://kprmilllimited.com/file/wp-
the Company under Section 149 (7) of the Act confirming that they content/uploads/2018/11/DD-Policy.pdf
meet with the criteria of their Independence laid in Section 149 (6) IX. Policy for Disclosure of Material Events / Information
have been obtained. X. Policy on Succession Planning for Board and Senior
Management
Mr.C.R.Anandakrishnan, Executive Director, retires by rotation at
the ensuing Annual General Meeting and is eligible for RISK MANAGEMENT
re-appointment.
Pursuant to section 134(3) (n) of the Act & Regulation 17(9) of the
KEY MANAGERIAL PERSONNEL AND MANAGERIAL Listing Regulation, the Company has a Risk Management Policy
REMUNERATION CRITERIA and has constituted a Risk Management Committee. The Risk
Management Committee held its meetings on 29.06.2022 and
In pursuance of the Act the Company has Key Managerial 19.12.2022 in which all members were present.
Personnel. None of the Managing Directors or Whole Time
Directors receives any remuneration or commission from the VIGIL MECHANISM & WHISTLE BLOWER POLICY
Subsidiary Companies and the remuneration paid to them is
within the purview of the provisions of Section 197 of the Act. The The Company has an established Vigil Mechanism for Directors
Company pays remuneration by way of salary, perquisites, and Employees to report concerns about unethical behaviors,
actual or suspected fraud or violation of the code of conduct or

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 3

DIRECTORS’ REPORT
ethics policy. It also provides for adequate safeguards against to Accounts of the Consolidated Financial Statements of your
victimization of Directors/Employees who avail of the mechanism. Company. The Company's Policy on dealing with related party
The Company affirms that no personnel have been denied access transactions is available on the Company's website.
to the Audit Committee. The Company has a Policy of Vigil
Mechanism and has established a mechanism that any personnel EMPLOYEE WELFARE
may raise reportable matters. All suspected violations and
reportable matters can be reported to the Chairman of the Audit India has a large working population, a prominent asset in the
Committee at e-mail id [email protected] The key labour-intensive textiles sector particularly in Garment industry.
directions/ actions can be informed to the Chairman/ Managing They are crucial stakeholders playing an integral role in the
Director of the Company. The Whistle Blower Policy has been success of an organisation. KPR continuously takes concrete
reviewed by the Board of Directors and displayed in the steps to promote the wellbeing of work force at work and good
Company’s website. work-life balance. One of the significant ef forts towards the same
is provision of Higher Education facility. Employees who receive
CSR EXPENDITURE higher education tend to have improved sense of self-worth with
more opportunities to grow besides contributing to the success of
During the year, in pursuance of the recommendations of the CSR the Organisation. Our unique Career development process for the
committee the Company has contributed ` 6307.89 Lakhs employees based on their educational qualification also
towards implementing the CSR activities including an advance continues.
contribution of ` 5017.30 lakhs which is equal to 3 Years’
estimated CSR contribution to be set-of f against subsequent PARTICULARS OF EMPLOYEES
years’ CSR obligation. Annual Report on CSR, as required by the
The information required pursuant to Section 197 read with Rule 5
Act, is appended.
of the Companies (Appointment and Remuneration of Managerial
BOARD MEETINGS Personnel) Rules, 2014 in respect of Employees of the Company,
will be provided upon request. In terms of Section 136 of the Act,
The Board of Directors met Four times during the financial year on the reports and accounts are being sent to the members and
27.04.2022, 28.07.2022, 07.11.2022 and 06.02.2023 through others entitled thereto, excluding the information on employees'
physical mode. The Composition of Board, procedure, venue, particulars which is available for inspection by the members at the
dates, time and other details are included in the Corporate Registered Office of the Company during business hours on
Governance Report that forms part of this Report. working days of the Company upto the date of ensuing Annual
General Meeting. If any member is interested in inspecting the
CONSOLIDATED FINANCIAL STATEMENTS same, such member may write to the Company Secretary in
advance.
Your Directors have pleasure in annexing the Consolidated
Financial Statements pursuant to the provisions of the 'Act' and PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT
the Listing Regulations entered into with the Stock Exchanges. WORKPLACE
They are prepared in accordance with the Ind-AS prescribed by
the Institute of Chartered Accountants of India, in this regard. The Sexual Harassment of Women at Workplace (Prevention,
Consolidated Financials also marked a significant increase in its Prohibition and Redressal) Act, 2013 provides for protection
Revenue as well as Profitability. against sexual harassment of women at workplace and for the
prevention and redressal of complaints of sexual harassment and
PARTICULARS OF LOANS, GUARANTEES OR also for the matters incidental thereto. The Company has
INVESTMENTS accordingly adopted the policy against Sexual Harassment of
Women at Workplace, for the purpose of preventing, prohibiting
The Company has duly complied with the provisions of Section and redressing sexual harassment of female employees at all the
186 of the Act and as required therein the details of the Borrowals, workplace within the Company which are based on fundamental
Security, Investment etc., are annexed by way of notes to principles of justice and fair play.
accounts.
According to the notifications of corporate af fairs ministry dated
RELATED PARTY TRANSACTIONS 31st July 2018, Internal Complaints Committee under the sexual
harassment of women at Workplace (Prevention, Prohibition and
All Related Party Transactions that were entered into during the
Redressal) Act, 2013, has been formed and complied with.
financial year were only between Holding Company and Wholly
Further, Anti Sexual Harassment Committee has been constituted
owned Subsidiary Companies in the ordinary course of business,
at each unit which shall be responsible for redressal of complaints
whose accounts are consolidated with Holding Company and
related to sexual harassment. The details of all such Complaints
placed before the shareholders at the General Meeting for
and its proper redressal through prompt corrective steps are
approval. However, as per regulatory requirements an omnibus
informed to the Top Management so as to ensure that suitable
approval of the audit committee for such transactions has been
processes and mechanisms are put in place to ensure that issues
obtained.
of sexual harassment, if any, are effectively addressed. During the
The Transactions as required under Indian Accounting Standards year, no complaints of sexual harassment were received by the
‘Ind AS-24' are reported in Note 40 of the Notes to Accounts of the Company from any of its Units.
Standalone Financial Statements as well as Note 40 of the Notes

4 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

DIRECTORS’ REPORT
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION Report of Management Discussion & Analysis, which forms part of
AND FOREIGN EXCHANGE EARNINGS AND OUTGO this report.

The particulars relating to energy conservation, technology RATIO OF REMUNERATION TO EACH DIRECTOR
absorption, foreign exchange earnings and outgo, as required to
be disclosed under the Act read with the Companies (Accounts) Details / Disclosures of Ratio of Remuneration of Director to the
Rules, 2014 are provided in the Annexure to the Report. median employee's remuneration as required by the Act and
Companies Rules are appended.
DIRECTORS RESPONSIBILITY STATEMENT
SIGNIFICANT & MATERIAL ORDER PASSED BY THE
Pursuant to the requirement under section 134(5) of the Act, the REGULATORS
Board of Directors of the Company hereby state and confirm that;
No significant and material order was passed by any Regulators
I. In the preparation of the Annual Accounts, the applicable that have any impact on the going concern status and the
accounting standards have been followed along with proper operations of the Company.
explanation relating to material departures.
DETAILS REGARDING ISSUE OF SHARES
II. The Directors have selected accounting policies and
applied them consistently and made judgments and estimates During the year under review the Company has not issued any
that are reasonable and prudent so as to give a true and fair view shares.
of the state of affairs of the Company at the end of the financial
year and of the profit of the Company for the year under review. BUYBACK

III. The Directors have taken proper and sufficient care for The Buyback of 22,36,000 Equity Shares mooted during the
the maintenance of adequate record in accordance with the FY 2021-22 was completed on 26th April 2022. The present
provisions of the Companies Act, 2013, for safeguarding the Paid up Capital post Buyback is ₹ 34.18 Crores.
assets of the Company and for preventing and detecting fraud and
AUDITORS
other irregularities.
In the 19th Annual General Meeting of the Company held on
IV. The Directors have arranged preparation of the
23.08.2022 M/s. B S R & Co LLP, Chartered Accountants (ICAI
accounts for the financial year ended 31.03.2023 on a going
Firm Regn. No.101248W/W-100022) were re-appointed as
concern basis.
Statutory Auditors of the Company for second term of five
V. The Directors have laid down internal financial controls consecutive years from the Financial Year 2022-23.
to be followed by the Company and that such internal financial
AUDITORS REPORT
controls are adequate and were operating effectively.
The Auditor’s Report to the Shareholders does not contain any
VI. The Directors have devised proper systems to ensure
qualification. There were no frauds reported by the Statutory
compliance with the provisions of all applicable laws and that such
Auditors under provisions of Section 143 (12) of the Companies
systems were adequate and operating effectively.
Act, 2013 and rules made thereunder.
CORPORATE GOVERNANCE REPORT AND MANAGEMENT
COST RECORDS
DISCUSSION AND ANALYSIS REPORT
Pursuant to Section 148 of the Act, the company falls under the
Corporate Governance Report and Management Discussion and
limits specified under this section and hence the company has
Analysis Report are attached to this Report. Certificate from the
maintained proper books of accounts with all the particulars
Statutory Auditors of the Company confirming the compliance with
relating to the utilization of material, labour and to other items of
the conditions of Corporate Governance as stipulated under
cost.
Schedule V of the Listing Regulation is also attached to this report.
COST AUDIT
BUSINESS RESPONSIBILITY AND SUSTAINABILITY
REPORT In pursuance of Companies (Cost Records and Audit) Rules,
2014, the Company has appointed a Cost Auditor for the
In pursuance of Regulation 34(2)(f) of the Listing Regulations, the
Company to audit the cost records for the Financial Year 2022-23.
Business Responsibility and Sustainability Report, containing the
initiatives taken by the company from environmental, social and SECRETARIAL AUDIT REPORT & CERTIFICATES AND
governance perspective, forms part of this Report. SECRETARIAL STANDARDS COMPLIANCE
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company has complied with the applicable Secretarial
Standards issued by ICSI. As required by the Act a Secretarial
The Company has an Internal Control System, commensurate
Audit Report issued by a Company Secretary in practice (PCS) a
with the size, scale and complexity of its operations. The details of
Peer Reviewed Unit in Form MR 3 is annexed with this report and it
internal financial control and their adequacy are included in the

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 5

DIRECTORS’ REPORT
does not contain any qualification. Certificate from PCS that none regular business and there has been no change in its objectives.
of the Directors are debarred or disqualified forms part of this GENERAL
Annual Report. Annual Secretarial Compliance Report certifying
compliance of SEBI Regulations has been obtained and filed with Disclosures under sub rule 5 (xi) and (xii) of rule 8 of Companies
the Stock Exchanges. (Accounts) Rules, 2014 are not applicable to the Company.

ANNUAL RETURN ACKNOWLEDGEMENT

Pursuant to section 92 of the Act and Rule 12 of the Companies Your Directors acknowledge with gratitude and express their
(Management and Administration) Rules, 2014, the Annual appreciation for the assistances and co-operation received from
Return in the prescribed form is available on the Company's the Bankers, Government Authorities, Customers, Vendors, and
website: https://kprmilllimited.com/financial-result_annual- Members during the year under review. Your Directors also wish to
reports/ thank the employees at all levels for their co-operation and
dedication.
DETAILS OF DEMAT/UNCLAIMED SUSPENSE ACCOUNT

The status of unclaimed shares of the Company transferred to the FOR AND ON BEHALF OF THE BOARD
demat account, ‘K.P.R. Mill Limited - Unclaimed Shares Demat
Suspense Account’, in accordance with the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, is Coimbatore K.P. Ramasamy
as follows: 03.05.2023 Chairman
DIN: 00003736
No. of No. of
Particulars
Shareholders Shares

Aggregate number of
shareholders and the outstanding
2 2750
shares in the suspense account
lying at the beginning of the year

Number of shareholders who

approached listed entity for - -
transfer of shares from suspense
account during the year

Number of shareholders to whom

shares were transferred from - -
suspense account during the year

Aggregate number of
shareholders and the outstanding
2 2750
shares in the suspense account
lying at the end of the year

The Voting rights in respect of these shares will remain frozen till
the time such shares are transferred from the Unclaimed
Suspense Account to the concerned Shareholders.

MATERIAL CHANGES AND COMMITMENTS

No material changes and commitments affecting the financial

position of the Company occurred between the end of the financial
year as on 31.03.2023 and the date of this Report.

NO CHANGES IN THE BUSINESS

Your Directors would like to inform that Company is doing its

6 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 SUBSIDIARIES - FINANCIAL SUMMARY

ANNEXURE TO THE DIRECTORS’ REPORT

Form AOC – 1
(Pursuant to first provision to sub-section 12 read with Rule 5 of the Companies (Accounts) Rules, 2014)
Financial Summary of Subsidiary Companies
(` in Lakhs)

K.P.R. Quantum Galaxy Jahnvi Motor KPR Sugar KPR KPR Mill
Particulars Sugar Mill Knits Pvt. Knits Private and Apparels Exports PTE.
Limited Limited Limited Limited Limited PLC Ltd

Share Capital* 394 10 5 193 7,100 424 21

Reserves & Surplus 68,117 (236) (2) 1,567 71,150 (275) (231)
Total Assets 1,00,501 3,194 4 3,810 1,66,787 149 59
Total Liabilities 31,990 3,420 1 2,050 88,537 - 269
Investments (Excluding investment
in subsidiaries) - - - - - - -
Turnover 95,110 2,920 - 11,351 1,05,791 - -
Profit /(loss) Before Tax 22,697 (454) - 443 10,328 - (42)
Provision for Tax 6,531 - - 120 1,384 - -
Profit /(loss) After Tax 16,166 (454) - 323 8,944 - (42)
Proposed Dividend - - - - - - -
% Share Holding 100 100 100 100 100 100 100

* Includes share application money pending allotment of `1,170 lakhs relating to KPR Exports PLC and `7 lakhs relating to KPR Mill
Pte. Limited

Form AOC-2
(All the transactions are at arm's length basis only)

Particulars of Employees- (Companies [Appointment and Remuneration of Managerial Personnel] Rules, 2014)

a). Information as per Rule 5(1) of Chapter XIII, Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

1. Remuneration paid to Whole-Time Directors (WTD)

% Increase Ratio of
Name of the Director Title
Over Previous Year Remuneration to MRE

Mr. K. P. Ramasamy Chairman No increase 400.29

Mr. KPD Sigamani Managing Director No increase 400.29
Mr. P. Nataraj Managing Director No increase 400.29
Mr. C. R. Anandakrishnan Executive Director No increase 16.80
Mr. E.K. Sakthivel Executive Director No increase 12.60
Mr. P. Selvakumar Whole time Director 19.55% 11.27

2. Remuneration paid to Non-Executive Directors

The Non-Executive Directors of the Company are entitled for sitting fee only and its details are provided in the Corporate Governance
Report.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 7

 PARTICULARS OF EMPLOYEES

ANNEXURE TO THE DIRECTORS’ REPORT

3. Remuneration paid to other Key Managerial Personnel (KMP)

Name of the KMP Title % Increase Over Previous Year

Mr. PL. Murugappan Chief Financial Officer 17.77%

Mr. P. Kandaswamy Company Secretary 12.82%

4. Percentage increase in the Median Remuneration of employees in the financial year: 11.98%

5. Number of Permanent Employees on the roll of the Company at the end of the year: 21,819

6. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last
financial year and its comparison with the percentile increase in the Managerial Remuneration and justification thereof and
point out if there are any exceptional circumstances for increase in the Managerial Remuneration.

The average annual increase in the salaries of employees during the year was 11.98% which is more than the average increase, if any,
in Managerial Remuneration.

7. It is hereby affirmed that the remuneration paid during the year is as per the Remuneration policy of the Company.

For and on behalf of the Board

K.P.Ramasamy
Coimbatore Chairman
03.05.2023 DIN: 00003736

8 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 ANNUAL REPORT ON CSR

ANNEXURE TO THE DIRECTORS’ REPORT

Annual Report on Corporate Social Responsibility (CSR) activities for Financial Year 2022-23

1. A brief outline of the Company's CSR policy, including overview of projects or programs proposed to be undertaken and a
reference to the web-link to the CSR policy and projects or programs.

The most ef fective CSR plans ensure that while Organizations comply with the Legislation, their investments also respect the growth
and development of marginalized communities and the environment. CSR should also be sustainable involving activities that an
organization can uphold without impacting their business goals.

KPR's CSR Policy is to enhance the value of Mankind by empowerment rather than on creating dependence on others for livelihood. Try
to repay to the society in all possible manner so as to enable the marginalized section are made capable of deriving the fruits that were
once meant for the elevated section of the society. The Company earns and spends a part of it to pay back to the society through its
various activities which fall in line with the Schedule VII of the Companies Act, 2013. Since access to quality education is fundamental to
the growth of India, the Company primarily involves in 'Promotion of Education' under its CSR activities.

2. The Composition of the CSR Committee is as follows

Designation / Nature of Number of meetings of Number of meetings of CSR
S.No Name of Director CSR Committee held Committee attended
Directorship during the year during the year

1 Mr. K.P.Ramasamy Chairman 2 2

2 Mr. KPD Sigamani Managing Director 2 2
3 Mr. P. Nataraj Managing Director 2 2
4 Dr. S. Renganayakei Woman Independent Director 2 2

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on
the website of the company

https://kprmilllimited.com/file/wp-content/uploads/2021/05/CSR-POLICY.pdf and https://kprmilllimited.com/file/wp-

content/uploads/2021/05/CSR-PROJECTS-COMPOSITION-OF-CSR-COMMITTEE.pdf

4. Provide the executive summary along with web-link of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3)
of rule 8, if applicable – Not Applicable

5. (a). Average net profit of the company as per sub-section (5) of section 135 – ` 64,530 Lakhs
(b). Two percent of average net profit of the company as per sub-section (5) of section 135 – ` 1290.59 Lakhs
( c). Surplus arising out of the CSR projects or programmes or activities of the previous financial years – Nil
(d). Amount required to be set-off for the financial year, if any – Nil
(e). Total CSR obligation for the financial year [(b)+(c)-(d)] – ` 1290.59 Lakhs

6. (a). Amount spent on CSR Projects (both Ongoing Project and Other than Ongoing Project) - `1307.89 Lakhs + `5000 Lakhs
(CSR Advance)
(b). Amount spent in Administrative Overheads – Nil
( c). Amount spent on Impact Assessment, if applicable – Not applicable
(d). Total amount spent for the Financial Year [(a)+(b)+(c)] – ` 1307.89 Lakhs + ` 5000 Lakhs (CSR Advance)
(e). CSR amount spent or unspent for the financial year:

Amount Unspent (` In Lakhs)

Total Amount
Total Amount transferred to Amount transferred to any fund specified under
Spent for the
Unspent CSR Account as per Schedule VII as per second proviso to
Financial Year.
sub-section (6) of Section 135. sub-section (5) of Section 135.
(` In Lakhs)

Amount. Date of transfer Name of the Fund Amount Date of transfer

1307.89 + 5000 (CSR Advance) Nil

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 9

 ANNUAL REPORT ON CSR

ANNEXURE TO THE DIRECTORS’ REPORT

(f). Excess amount for set of f, if any – `5000 Lakhs (CSR Advance)

Sl.No. Particulars Amount (` In Lakhs)

Two percent of average net profit of the company as per sub-section (5) of Section 135 1290.59
(ii) Total amount spent
a. for the Financial Year 1307.89
b. CSR advance 5000.00
(iii) Excess amount spent for the financial year [(ii)-(i)] 5017.30
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous
financial years, if any -
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 5017.30

7. Details of Unspent Corporate Social Responsibility amount for the preceding three financial years: Nil

Sl.No. Preceding Amount Balance Amount Amount Amount Amount

Financial transferred in Unspent CSR spent transferred to a remaining to Deficiency,
in the be spent in if any
Year to Unspent CSR Account under fund as specified
Account under sub-section Financial under Schedule VII as succeeding
sub-section (6) Year (in `) financial
(6) of Section per Second proviso years.
of Section 135 (in `) to sub-section (5) (in `)
135 (in `) of Section 135, if any.
Amount Date of
(in `). transfer.

NIL
1 FY-1

2 FY-2

3 FY-3

TOTAL

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the financial
year: No

If Yes, enter the number of Capital assets created / acquired –

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the
financial year:

Sl.No. Short particulars of the property Pincode Date of Amount of Details of entity / Authority /
or asset(s) [including complete of the property Creation CSR amount beneficiary of the registered owner
spent
address and location of of asset(s)
the property]

CSR
Registration
Number, Name Registered
if applicable address

NIL
10 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23
 ANNUAL REPORT ON CSR

ANNEXURE TO THE DIRECTORS’ REPORT

(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Corporation/ Gram panchayat are
to be specified and also the area of the immovable property as well as boundaries)

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per sub-section (5) of
Section 135 – Not applicable

P. Nataraj K.P. Ramasamy

Chief Executive Officer & Chairman
Coimbatore Managing Director CSR Committee
03.05.2023 DIN: 00229137 DIN: 00003736

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 11

 CONSERVATION OF ENERGY

ANNEXURE TO THE DIRECTORS’ REPORT

INFORMATION PURSUANT TO COMPANIES (ACCOUNTS) RULES, 2014

A) CONSERVATION OF ENERGY

a) ENERGY CONSERVATION MEASURES TAKEN

1) To optimize the power consumption in all our textile and garment units, the existing motors and pumps were replaced by high
efficiency Motors of IE3 to IE5 standards with Variable frequency drives along with automation applications.
2) To reduce the power consumption, Solar power generation of 7.8 MW capacity was installed in our Arasur Plant roof and 2.2 MW in
the Garment plant roof.

b) ADDITIONAL INVESTMENTS AND PROPOSALS, IF ANY, BEING IMPLEMENTED FOR CONSERVATION OF ENERGY
Further ef forts are being taken to reduce power consumption at all units by installing the Power Monitoring equipment.

c) IMPACT OF THE MEASURE (a) & (b) ABOVE FOR REDUCTION OF ENERGY CONSUMPTION AND CONSEQUENT IMPACT
ON COST OF PRODUCTION OF GOODS
The energy saving measures result in consumption of economized power and fuel that would reduce the cost of production. Total energy
consumption & Consumption per unit of production are as per Form 'A' below:

FORM A – PARTICULARS IN RESPECT OF ENERGY CONSUMPTION:

Particulars Units 2022-23 2021-22

1. Power & Fuel Consumption

A) Electricity
i) Connected Load KVA 43,865 42,915
ii) Purchase of Units Lakh Units 1,644 1,065
iii) Total Amount ` Lakhs 12,397 7,735
iv) Rate Per Unit (Average) ` 7.54 7.26
v) Demand Charges ` Lakhs 2,183 1,674
B) Electricity from Third Party
i) Purchase of Units Lakh Units 261 722
ii) Total Amount ` Lakhs 1,317 3,896
iii) Rate Per Unit (Average) ` 5.04 5.40
2. Own Generation
i) Through Diesel Generator
Units generated Lakh Units 2 2
Total Amount ` Lakhs 60 61
Cost/Unit ` 26.79 28.18
Units/Litre of Diesel Units 3.25 3.23
ii) Through Wind Mill
Units generated Lakh Units 992 1,050
iii) Through Steam Turbine Units
Coal/Furnace Oil / Others Units NIL NIL
3. Consumption per unit of Production
a) Production of Yarn Kgs 8,77,94,375 8,51,98,948
Electricity (units) per Kg of yarn Production Units 2.82 2.70
b) Processed Fabric Kgs 2,11,20,040 2,14,77,954
Electricity (units) per Kg of Fabric Processed Units 1.14 1.08
c) Garment Produced – In House Garments 10,30,85,906 11,27,50,741
Electricity consumed/ Garment Production Units 0.23 0.19

12 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 FOREIGN EXCHANGE EARNINGS AND OUTGO

ANNEXURE TO THE DIRECTORS’ REPORT

B. TECHNOLOGY ABSORPTION, RESEARCH AND DEVELOPMENT (R&D):

1. Specific areas in which R&D carried out by the Company:

Further Improvement in Quality of Products, Development of new Products and Designs, Cost control measures, Energy
Conservation etc.

2. Benefits derived as a result of above R&D:

Sustained quality of products at economized cost.

3. Future Plan of Action:

Continuous focus on innovations in Textile development processes & products.

4. Technology absorption, adaptation and innovation:

The advanced technology of cold processing adopted at our new state of the art processing unit reduces the water consumption by
30% and eliminates the usage of Salt completely. This eco - friendly facility will economize the cost of production besides enhancing the
quality.

All manufacturing facilities are equipped with high-tech quality control equipment and well trained Personnel. ETP at Processing
Division has Zero Discharge System.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO:

(` in Lakhs)

S.No Particulars 2022-23 2021-22

1 Foreign Exchange earned through exports amounted to 1,71,502 1,52,427

2 Foreign exchange used 53,694 11,916

For and on behalf of the Board

K.P. Ramasamy
Coimbatore Chairman
03.05.2023 DIN: 00003736

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 13

 SECRETARIAL AUDIT REPORT

ANNEXURE TO THE DIRECTORS’ REPORT

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2023
Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014

To,
The Members,
M/s. K.P.R. Mill Limited
Coimbatore.

I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices
by K.P.R. Mill Limited (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided me a reasonable basis
for evaluating the corporate conducts / statutory compliances and expressing my opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the
company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of
secretarial audit, I hereby report that in my opinion, subject to the Annual Report, the Company has, during the audit period covering the
financial year ended on 31st March 2023 complied with the statutory provisions listed hereunder and also that the Company has proper
Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter.
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial
year ended on 31st March 2023 according to the provisions of:

i. The Companies Act, 2013 (the Act)and the rules made thereunder;
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder
v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) viz.:-
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
d) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding
the Companies Act and dealing with the client;
e) The Securities and Exchange Board of India (Buy back of Securities) Regulations, 2018;
vi. And other applicable laws to a Textile Industry viz., Textile Control Orders, Textile Committee Produce Cess Act, Textile (Development
and Regulation) Order etc.,

As per the information and explanation provided by the management and officers of the Company and also on verification of reports and
certificates of professionals, I report that adequate systems are in place to monitor and ensure compliance of Laws relating to Direct and
Indirect Taxes, Labour and other Legislations.

I have also examined compliance with the Listing Agreement and applicable Regulations of the Securities Exchange Board of India (Listing
Obligations and Disclosures Requirements) Regulations, 2015 and Secretarial Standards issued by The Institute of Company Secretaries
of India.

During the year under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.,
mentioned above.

14 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 SECRETARIAL AUDIT REPORT

ANNEXURE TO THE DIRECTORS’ REPORT

I further report that

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and
Independent Directors and Women Director. There were no changes in the composition of the Board of Directors during the year under
review except, Sri.K.N.V.Ramani, an Independent Director who passed away on 30.03.2023.

During the year under review, the Company has re-appointed Sri.K.P.Ramasamy as an Executive Chairman of the Company for a further
period of 5 years from 01.04.2022 to 31.03.2027 by Special Resolution passed on 21.04.2022 by the Shareholders through Postal Ballot by
way of remote e-voting process.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent atleast seven days
in advance, a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for
meaningful participation at the meeting.

As per the minutes of the Meeting duly recorded and signed by the Chairman the decisions of the Board were unanimous and no dissenting
views have been recorded.

As informed the Company has responded appropriately to the notices received from various statutory / regulatory authorities wherever
found necessary.

I further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company
to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

I further report that during the audit period there were no instance of
a) Public / Rights / Preferential Issue of Shares / Debentures / Sweat Equity
b) Redemption
c) Foreign Technical Collabaration
d) Merger / Amalgamation / Reconstruction, etc

During the year under review, the Company has Bought Back of 22,36,000 Equity Shares of ` 1/- each on 26.04.2022.

This report is to be read with my letter of even date which is annexed as Annexure A and forms an integral part of this report.

K Radhakrishnan B.Com FCS

Place : Coimbatore Practising Company Secretary
Date : 03.05.2023 FCS No: 12236 CP No: 16911
UDIN : F012236E000245051 Peer review Certificate No.1181/2021

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 15

 SECRETARIAL AUDIT REPORT

ANNEXURE TO THE DIRECTORS’ REPORT

Annexure A’

To,
The Members
M/s. K.P.R. Mill Limited,
Coimbatore

My report of even date is to be read along with this letter.

1. Maintenance of secretarial records is the responsibility of the management of the Company. My responsibility is to express an opinion
on these secretarial records based on my audit.

2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the
contents of the Secretarial records. The verification done on test basis to ensure that correct facts are reflected in secretarial records.
I believe that the processes and practices, I followed, provide a reasonable basis for my opinion.

3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

4. I have obtained the Management representation about the Compliance of Laws, Rules and Regulations and happenings of events, etc.

5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. My examination was limited to the verification of procedures on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with
which the management has conducted the affairs of the Company.

K Radhakrishnan B.Com FCS

Place : Coimbatore Practising Company Secretary
Date : 03.05.2023 FCS No: 12236 CP No: 16911
UDIN : F012236E000245051 Peer review Certificate No.1181/2021

16 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

ANNEXURE TO THE DIRECTORS’ REPORT

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

Pursuant to Regulation 34(3) and Schedule V Para C clause (10) (i) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015

To
The Members of
M/s. K.P.R. Mill Limited
9 Gokul Buildings
First Floor, AKS Nagar
Thadagam Road
Coimbatore – 641 001

I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of M/s. K.P.R. Mill Limited having
CIN: L17111TZ2003PLC010518 and having registered office at 9, Gokul Buildings, First Floor, AKS Nagar, Thadagam Road,
Coimbatore – 641 001 (hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of issuing this
Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015.

In my opinion and to the best of my information and according to the verifications (including Directors Identification Number (DIN) status at
the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its officers, I hereby certify that as
on the date of this certificate none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or
continuing as Directors of Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other
Statutory Authority.

Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of the
Company. My responsibility is to express an opinion on these based on my verification.

K Radhakrishnan B.Com FCS

Place : Coimbatore Practising Company Secretary
Date : 03.05.2023 FCS No: 12236 CP No: 16911
UDIN : F012236E000245084 Peer review Certificate No.1181/2021

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 17

CORPORATE GOVERNANCE
COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE

Corporate Governance is a continuous process of applying the best management practices, ensuring that the law is followed by us the way
intended and adhering to ethical standards for effective management, meeting stakeholder responsibilities and complying with corporate
social responsibilities.

BOARD OF DIRECTORS

The Board consists of eminent Professionals from different fraternity empowering the Corporate's strive for sustained better Corporate
Governance practices. It comprises twelve Directors viz., One Executive Chairman, Five Executive Directors and Six Independent
Directors (Including two woman Directors) having no business relationship with the Company & constituting 50% of Board's composition in
compliance with the Listing Regulation & Companies Act, 2013 ('Act').

Number of Board & Committee

Number of Memberships in Other Companies ****
Name of the Director Category
Directorships held ***
Chairman Member

Mr.K.P.Ramasamy Executive Director 11 - -

Mr.KPD Sigamani Executive Director 12 - -

Mr.P.Nataraj Executive Director 12 - -

Mr.C.R.Anandakrishnan Executive Director 3 - -

Mr.E.K.Sakthivel Executive Director 1 - -

Dr.K.Sabapathy Independent Director 4 - -

Mr.G.P.Muniappan Independent Director 5 1 1

Mr.K.N.V.Ramani* Independent Director 4 4 4

Mr.A.M.Palanisamy Independent Director 7 2 2

Mr.C.Thirumurthy Independent Director 1 - -

Dr.S.Renganayakei Woman Independent Director 4 - -

Mr.P.Selvakumar Executive Director 5 - -

Mrs.V.Bhuvaneshwari** Woman Independent Director 5 - 3

* Mr. K.N.V. Ramani, Independent Director passed away on 30.03.2023.

** Mrs.V.Bhuvaneshwari was appointed as Additional Director (Non-Executive & Independent) on 03.05.2023.

*** Excluding Directorship in Companies under Section 8 of the Act, alternate Directorship and Companies incorporated outside India.

**** Chairmanship / Membership of Board Committees include Audit Committee and Stakeholders Relationship Committee but exclude
Committees of Subsidiary Company, Private Limited Companies, Foreign Companies and Companies under Section 8 of the Act.

18 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

CORPORATE GOVERNANCE

Name of the Director Names of Listed Entity in which Category of Director

directorships held

1. Mr. A. M. Palanisamy Kovai Medical Center and Hospital Limited Independent Director

2. Mrs. V. Bhuvaneshwari Precot Limited Independent Director

Elgi Rubber Company Limited Independent Director

Kovai Medical Center and Hospital Limited Independent Director

Their Directorships are within the limit prescribed. The Independent Directors have the option and freedom to interact with the Company
Management periodically and they are provided with the information required to perform their functions effectively.

Based on the declarations received from the Independent Directors, the Board of Directors has confirmed that they meet the criteria of
independence as mentioned under Regulation 16(1) (b) of the SEBI Listing Regulations and that they are independent of the management.

The Terms and Conditions of appointment of Independent Directors are as per the applicable provisions of the Companies Act, 2013 and
SEBI (LODR) Regulations, 2015.

The roles and offices of Chairman and CEO are separated to promote balance of power.

CHART/ MATRIX SETTING OUT THE SKILLS/EXPERTISE/COMPETENCE OF THE BOARD OF DIRECTORS (as per Schedule V(C)
(2) (h) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2018)

The Board of Directors of the Company is composed of a wide range of Dignitaries, Technical experts, and Individuals with proven
experience in Textile Industry and /or various fields such as Corporate Law, Banking, Medical, Chartered Accountancy, Company Secretary,
and Information Technology. The Board constantly endeavors to achieve the highest standards of Corporate Governance.

The Nomination and Remuneration Committee of the Company normally consider the following key qualifications, skills, and attributes
which are taken into consideration while nominating candidates to serve on the Board of the Company for its effective functioning.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 19

CORPORATE GOVERNANCE

Leadership - The capacity to set and achieve challenging goals, take

fast and decisive action when needed, outperform the competition,
and inspire others to perform at their highest possible level.

Governance - The collection of mechanisms, processes and

relations by which Corporate is governed. Corporate governance is
the combination of rules, processes and laws by which businesses
are operated, regulated or controlled.

Technology - The combination of techniques, skills, methods, and

processes used in the production of goods or services or in the
accomplishment of objectives.
SKILLS/ EXPERTISE/
COMPETENCE OF
THE BOARD OF
DIRECTORS
Corporate finance - Managing sources and deployment of funds to
enable the best returns both for the long and short term so as to
increase the value of the Corporate to the stakeholders.

International business - Encompasses all commercial activities that

take place to promote the transfer of goods, services, resources,
people, ideas, and technologies across national boundaries.

Sales and marketing - Generating revenue from the operations of

the Corporate. The role of marketing is to create market awareness,
preference and demand for the products of the Corporate. Sales is
responsible for converting that demand into actual sales.

The proficiency of individual Members in the specific areas are indicated here below. However the absence of indication in any area should
not be construed that the individual does not possess the related skill or qualification.

20 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

CORPORATE GOVERNANCE
Key Board Qualification & experience

Industry Industry
Name of Director Leadership Governance Technology Financial Global Sales and
Business Marketing

Mr.K.P.Ramasamy
Chairman P P P P P P

Mr.KPD Sigamani
Managing Director P P P P P P

Mr. P. Nataraj
Managing Director P P P P P P

Mr. C.R. Anandakrishnan

Executive Director P P P P P P

Mr.E.K.Sakthivel
Executive Director P P P P P P

Mr.P.Selvakumar
P P - P P -
Whole time Director

Dr. K. Sabapathy
Independent Director P P - P P -

Mr.G.P.Muniappan
Independent Director P P - P - -

Mr. K.N.V. Ramani*

Independent Director P P - P - -

Mr. A.M. Palanisamy

Independent Director P P - P P P

Mr. C. Thirumurthy
Independent Director P P - P - -

Dr. S. Renganayakei
Woman Independent Director P P - P - -

Mrs.V.Bhuvaneshwari**
Woman Independent Director P P - P P -

*Ceased to be a Director with effect from 30.03.2023.

** Appointed as Additional Director (Non-Executive & Independent) with effect from 03.05.2023.

BOARD PROCEDURE

Four Board Meetings were held during the year under review. The dates and notices were fixed/issued well in advance in compliance with
the Secretarial Standards. Meetings were held on 27.04.2022, 28.07.2022, 07.11.2022 and 06.02.2023. The Board Meetings were held on
27.04.2022, 28.07.2022 and 07.11.2022 at 10.30 A.M at SF.No. 204, Kollupalayam Village, Arasur, Coimbatore - 641 407 and a Meeting was
held on 06.02.2023 at 10.30 A.M. at First Floor, Srivari Shrimat, 1045, Avinashi Road, Coimbatore – 641 018.

All the meetings were held through physical mode.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 21

CORPORATE GOVERNANCE
The Agenda and Notes on agenda containing all material information such as Purchase and stock of raw materials; Production, Sale,
Export, Realisation and stock details of yarn fabric and Garments; Data on Fabric processing; Capacity utilization in each segment; Wind
power generated, power consumed, availment of working capital facilities and term loan; FOREX risk exposures, annual budget, capital
expenditure, sale of assets, proposal for Investments & Projects and status of its implementation, financials of Subsidiary Companies; Cash
flow Statement; Comparison of performance with the budget; applicable Regulatory changes etc., are circulated to the Directors in advance
for facilitating meaningful and focussed discussions at the Meetings. The attendance record of each Director at the Board Meetings and at
the last Annual General Meeting is given below:

Number of Board Meeting Last AGM Attended

S.No Name of Director
Held Attended Yes / No

1 Mr. K. P. Ramasamy 4 4 Yes

2 Mr. KPD Sigamani 4 3 Yes

3 Mr. P. Nataraj 4 4 Yes

4 Mr. C. R. Anandakrishnan 4 4 No

5 Mr. E. K. Sakthivel 4 4 Yes

6 Dr. K. Sabapathy 4 4 Yes

7 Mr. G. P. Muniappan 4 4 Yes

8 Mr. K. N. V. Ramani* 4 1 Yes

9 Mr. A. M. Palanisamy 4 4 Yes

10 Mr. C. Thirumurthy 4 4 Yes

11 Dr. S. Renganayakei 4 4 Yes

12 Mr. P. Selvakumar 4 4 Yes

13 Mrs. V. Bhuvaneshwari** NA NA NA

* Ceased to be a Director with effect from 30.03.2023.

**Appointed as Additional Director (Non-Executive & Independent) with effect from 03.05.2023.

AUDIT COMMITTEE

The Audit Committee consists of 3 Directors of which 2 are Independent Directors. All the Members of the Audit Committee are financially
literate. A Member is a Chartered Accountant and another is a Retired Deputy Governor of RBI. The terms of reference to the Audit
Committee are as per the provisions of Section 177(4) of the Act & Regulation 18 of the Listing Regulation and in pursuance of Audit
Committee Charter.

1. Mr. G.P. Muniappan - Independent & Non – Executive Director (Chairman)

2. Dr. K. Sabapathy - Independent & Non – Executive Director
3. Mr. P Nataraj - Non Independent & Executive Director

During the year under review, the Audit Committee met Four times and the attendance of each Member through physical mode is furnished
as below:

22 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

CORPORATE GOVERNANCE
Attendance at the Meetings held on
Name of Member
27.04.2022 28.07.2022 07.11.2022 06.02.2023

Mr. G.P.Muniappan – Independent &

Non- Executive Director (Chairman) P P P P

Dr.K.Sabapathy - Independent &

Non - Executive Director P P P P

Mr.P.Nataraj – Non-Independent &

Executive Director P P P P

The Audit Committee Meetings dated 27.04.2022, 28.07.2022 and 07.11.2022 were held at 09.00 A.M / 9.30 A.M at SF.No.204,
Kollupalayam Village, Arasur, Coimbatore - 641 407 and the meeting dated 06.02.2023 was held at 09.00 A.M. at First Floor, Srivari Shrimat,
1045, Avinashi Road, Coimbatore - 641 018.

All the meetings were held through physical mode.

Statutory Auditors, the permanent invitees to the Committee Meetings attended all the aforesaid meetings.

Mr. P. Kandaswamy, Company Secretary functions as the Secretary of the Committee.

The Committee recommends the appointment & remuneration of Internal Auditors, Statutory Auditors and Cost Auditors. A qualified
Professional with good exposure conducts Internal Audit. The Chairman of the Audit Committee was present at the last Annual General
Meeting held on 23.08.2022.

NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee consists of 3 Independent Directors as its Members.

Mr. G.P. Muniappan - Independent & Non - Executive Director (Chairman)

Dr. K. Sabapathy - Independent & Non - Executive Director
Dr. S. Renganayakei - Women Independent & Non - Executive Director

The terms of reference specified by the Board of Directors to the Committee are as per the provisions of Section 178 of the Act & Regulation
19 of the Listing Regulation and Nomination & Remuneration Policy which are broadly indicated hereunder.

The functions of Committee is to formulate criteria to determine qualifications, positive attributes and independence of Directors, Key
Managerial Personnel (KMP), Senior Management etc., recommend to the Board a Policy relating to their appointment and remuneration,
so as to ensure that the Company’s policies in respect of the Directors, KMP are competitive to recruit and retain the best talent in the
Company; to recommend revision in their remuneration; to ensure appropriate disclosure of remuneration paid to the said persons etc.

The details of remuneration paid to directors are furnished below. The Whole Time Directors are appointed for the term of Five years by the
Shareholders of the Company. There is no ‘Stock Option Scheme’ in the Company.

During the year under review, the Nomination and Remuneration Committee met once and the attendance of each member is
furnished as below:

Attendance at the
Name of Member Meeting held on
22.04.2022

Mr. G.P. Muniappan – Independent & Non - Executive Director (Chairman) P

Dr.K.Sabapathy – Independent & Non - Executive Director P
Dr.S.Renganayakei – Women Independent & Non - Executive Director P

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 23

CORPORATE GOVERNANCE
The Nomination and Remuneration Committee Meeting was held on 22.04.2022 at 9.00 A.M at First Floor, Srivari Shrimat, 1045, Avinashi
Road, Coimbatore – 641 018. The meeting was held through physical mode.

Details of Remuneration and Sitting Fee paid to the Directors are given below:

Remuneration during Sitting fees for attending meeting of the board

Name of Director the year 2022 – 2023 and/or committee there of
(` in Lakhs) (` in Lakhs)

Mr. K.P. Ramasamy 572.00 Nil

Mr. KPD Sigamani 572.00 Nil

Mr. P. Nataraj 572.00 Nil

Mr. C.R. Anandakrishnan 24.00 Nil

Mr. E.K. Sakthivel 18.00 Nil

Dr. K. Sabapathy Nil 3.00

Mr. K.N.V. Ramani* Nil 0.30

Mr. G.P. Muniappan Nil 3.00

Mr. A.M. Palanisamy Nil 1.20

Mr. C. Thirumurthy Nil 1.20

Dr. S. Renganayakei Nil 1.20

Mr. P. Selvakumar 17.32 Nil

*Ceased to be a Director with effect from 30.03.2023.

The Non-Executive Independent Directors are entitled to sitting fees only as per the statutory provisions and the limits approved by the
Members.

The Nomination and Remuneration Committee Policy has been framed and displayed in the Company’s Website.

The performance evaluation criteria for Independent Directors have already been included in the Nomination Remuneration committee
policy. The Website link to the policy is provided here:

https://kprmilllimited.com/file/wp-content/uploads/2018/11/5.KPR-NR-Policy.pdf

STAKEHOLDERS RELATIONSHIP COMMITTEE

The company has a Stakeholder Relationship Committee to consider and resolve the grievances of Security holders of the Company. The
Committee consists of 3 Directors of whom 2 are independent.

Dr.K.Sabapathy - Independent & Non - Executive Director (Chairman)

Mr.G.P.Muniappan - Independent & Non-Executive Director

Mr.P.Nataraj - Non - Independent & Executive Director

24 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

CORPORATE GOVERNANCE
Two Meetings were held during the Financial Year and the attendance of each Member is furnished as below:

Attendance at the Meetings held on

Name of Member
27.04.2022 07.11.2022

Dr. K. Sabapathy – Independent &

Non - Executive Director (Chairman) P P

Mr. G.P. Muniappan – Independent &

Non - Executive Director P P

Mr. P. Nataraj – Non Independent &

Executive Director P P

The Stakeholder Relationship Committee Meetings were held on 27.04.2022 and 07.11.2022 at 10.00 A.M at SF.No.204, Kollupalayam
Village, Arasur, Coimbatore - 641 407.

All the meetings were held through physical mode.

Mr. P. Kandaswamy, Company Secretary is the Secretary to the Committee and the Compliance Officer of the Company.

Nature of complaint / queries received during the Financial Year 2022 – 23 No. of Complaints

For non-receipt of dividend, annual report, shares lodged for transfer,

0
issue of duplicate share certificates

Complaints from BSE/NSE/SEBI/Legal 3

Queries / Complaints redressed 3

Pending queries/ complaints as on 31.03.2023 0

Pursuant to SEBI's Directions, Company has created a centralized web based complaints redressal system 'SCORES' and there was no
complaint received during the year in that system.

As per Regulation 46 of the Listing Regulation, the Company has designated the following exclusive E-mail ID for the convenience of
Investors: [email protected]

In addition they can forward their grievance, if any, to the following E-mail ID also: [email protected]

As required by the Listing Regulation, Company's website www.kprmilllimited.com is updated with the Quarterly information conveyed to
the Stock Exchanges.

All information required to be disseminated in the Company's website as per Regulation 46 (2) of the Listing Regulations are disseminated.
The Company's website contains a separate dedicated section 'Investor' wherein shareholders' information are available. The Company's
Annual Report is also available in a user-friendly and downloadable form.

With a view to regulate trading in securities by the Directors and Designated Employees, the Company has adopted a Code of Conduct for
Prohibition of Insider Trading.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 25

CORPORATE GOVERNANCE
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The Corporate Social Responsibility Committee consists of Four Directors of which one is Independent Director.

1. Mr. K.P.Ramasamy – Non - Independent & Executive Director (Chairman)

2. Mr. KPD Sigamani – Non - Independent & Executive Director
3. Mr. P. Nataraj – Non - Independent & Executive Director
4. Dr. S.Renganayakei – Women Independent & Non - Executive Director

The main objective of the Corporate Social Responsibility Committee is to assist the Board of Directors and the Company in fulfilling its
Corporate Social Responsibility (“CSR”) activities. Besides and in line with the terms of reference made by the Board of Directors while
constituting the Committee, the Committee has the overall responsibility for identifying the areas of CSR activities; recommending the
amount of expenditure to be incurred on the identified CSR activities; devising and implementing the CSR policy; coordinating with the
Agency, if any, appointed to implement programs and executing initiatives as per CSR policy of the Company. The Committee is also
responsible for reporting the progress of various initiatives and in making appropriate disclosures on a periodical basis. The CSR Policy has
also been framed and its details are uploaded in the Company’s website www.kprmilllimited.com.

The Corporate Social Responsibility Committee met twice during the Financial Year and the attendance of each Member is furnished as
below:

Attendance at the meeting held on

Name of Member
22.04.2022 07.11.2022

Mr. K.P.Ramasamy – Non Independent & Executive Director (Chairman) P P

Mr. KPD Sigamani – Non Independent & Executive Director P P
Mr. P. Nataraj – Non Independent & Executive Director P P
Dr. S. Renganayakei – Woman Independent & Non-Executive Director P P

The First Corporate Social Responsibility Committee Meeting was held on 22.04.2022 at 10.00 A.M at First Floor, Srivari Shrimat, 1045,
Avinashi Road, Coimbatore – 641 018.
The Second Corporate Social Responsibility Committee Meeting was held on 07.11.2022 at 08.00 A.M at SF.No.204, Kollupalayam Village,
Arasur, Coimbatore - 641 407.
All the meetings were held through physical mode.

RISK MANAGEMENT:
Pursuant to section 134 (3) (n) of the Companies Act, 2013 & Regulation 21 of the Listing Regulation, the Company has framed a Risk
Management Policy. In the opinion of the Board there appears to be no element of risk which may threaten the existence of the company.
The Risk Management Policy is disseminated in the website of the Company. The Risk Management Committee consisting of following
members met twice during the Financial Year, reviewed the risks relating to the Industry and Company and the attendance of each Member
is furnished as below:

Attendance at the meeting held on

Name of Member
29.06.2022 19.12.2022
Mr. P. Nataraj – Non Independent & Executive Director (Chairman) P P
Dr. K. Sabapathy – Independent & Non -Executive Director P P
Mr. P.L. Murugappan - Chief Financial Of ficer P P

26 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

CORPORATE GOVERNANCE
The Risk Management Committee Meetings were held on 29.06.2022 and 19.12.2022 at 10.00 A.M at First Floor, Srivari Shrimat, 1045,
Avinashi Road, Coimbatore – 641 018.
All the meetings were held through physical mode.

FAMILIARISATION PROGRAM
Familiarization Program on the Company and its operations was conducted apprising the Independent Directors of the following:
1. Roles, Rights and Responsibilities of Independent Directors in the Company.
2. Manufacturing Facilities/Units of the Company
3. Products Manufactured
4. Production Capacity of each segment and expansion under progress that are approved by Board from time to time
5. Key Strengths
6. Evolution
7. Unique Employment Model
8. Power Self-sufficiency through captive green power – Windmills, Cogen and Solar
9. CSR Activities
10. Expansion plans in Garment, Sugar, Ethanol and Co-gen Power.
11. Update on retail business
12. Historical performance & Future Plans

Besides Reports on the following activities apprising the system and procedures followed by the Company in ensuring compliance/
observance of those activities were also provided:
1. Compliance with applicable Legislations and Regulations
2. Risk Management
3. Ensuring significant development in Human Resources / Industrial Relations
4. Annual Budgets and Funding Plans consistent with agreed corporate strategies
5. Internal Finance Control
6. Integrity of financial information
7. Evaluation of Non-Independent Directors, the Chairperson and the Board as a Whole
8. Related Party Transactions

The following is the Web link for the details imparted to the Independent Directors:
https://kprmilllimited.com/file/wp-content/uploads/2023/05/FAMILIARISATION-PROGRAMME-2023-1.pdf

CEO / CFO CERTIFICATION

The CEO and CFO have furnished a certificate relating to financial statements and internal controls and systems to the Board of Directors as
required and forms part of this Annual Report.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 27

CORPORATE GOVERNANCE
GENERAL BODY MEETING
Details of Location, Date of the General Meetings held during the last three years:

Annual General Meeting Date Venue Time of Meeting Special resolution passed

17th 24.09.2020 Video Conferencing (VC) / 02.30 P.M Re-appointment of

Other Audio Visual Means Dr.S.Renganayakei as an
(OAVM) Independent
Director for a second term.

18th 09.09.2021 Video Conferencing (VC) / 02.30 P.M Alteration of the existing
Other Audio Visual Means Articles of Association of the
(OAVM) Company by adoption of a new
set of Articles of Association.

19th 23.08.2022 Video Conferencing (VC) / 02.30 P.M Alteration of Clause 72 (ii)
Other Audio Visual Means of the Articles of Association
(OAVM) of the Company.

POSTAL VOTING AND E-VOTING:

In pursuance of the Listing agreement, E-Voting at the 19th AGM and remote e-voting were extended to all the Shareholders of the Company
to facilitate voting on the Subjects/Resolutions contained in the 19th AGM notice. To conduct the voting procedure in a fair and transparent
manner, a Scrutinizer was appointed for the above purposes. Accordingly the Scrutinizer conducted the voting process and submitted his
reports on the voting polled, to the Chairman of the Company.
As per the said Report, the results of the voting on the Subjects/ Resolutions, contained in the Agenda of the meeting were announced.
Besides, Reports were forwarded to the Stock Exchanges and they were also uploaded along with the scrutinizers report, in Company's
website. Entire Resolutions contained in the said agenda were passed.
During the year under review no Extra - Ordinary General Meeting was held.
During the year, Special Resolution for re-appointment of Mr. K.P.Ramasamy as the Executive Chairman of the Company with ef fect from
1st April, 2022 for a further term of five years was passed by the Shareholders of the Company through Postal Ballot on 21.04.2022 in
compliance with the procedure laid down under the applicable provisions of the Companies Act, 2013 read with rules made thereunder,
SEBI (LODR) Regulations,2015 and Articles of Association of the Company.
Voting Results:

Particulars % of Votes

Votes in favour of the Resolution 100.00

Votes against the Resolution 0.00

The Company had appointed Mr.A.Vetrivel (FCA. 25028) Chartered Accountant, to act as the Scrutiniser, for conducting the Postal Ballot
process for the resolution mentioned above, in a fair and transparent manner.

No Special Resolution is proposed to be conducted through Postal Ballot as on the date of this Annual Report.

28 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

CORPORATE GOVERNANCE
DISCLOSURE: SHAREHOLDERS INFORMATION
I. None of the transactions with related parties during the year
Annual General Meeting for the financial year 2022-23:
2022-23 were in conflict with the interest of the Company and
all the transactions were only with the Wholly Owned Day and Date : Friday, 28.07.2023
Subsidiary Companies. Time : 2.30 P.M. (IST) through
II. No penalty or levy has been imposed by the Stock Video Conferencing (VC) /
Exchanges or SEBI or any other statutory authority on any Other Audio Visual Means (OAVM)
matter related to capital markets during last year.
III. Mr. K.P. Ramasamy, Chairman, Mr. KPD Sigamani, DATE OF BOOK CLOSURE
Managing Director and Mr.P.Nataraj, Managing Director are
The Register of Members and Share Transfer Books of the
related to each other. Mr.C.R.Anandakrishnan, Executive
Company will remain closed from 22.07.2023 to 28.07.2023 (Both
Director is related to Mr.K.P.Ramasamy, Chairman and
Mr.E.K.Sakthivel, Executive Director is related to days inclusive) for the purpose of Final Dividend and Annual
Mr.KPD Sigamani, Managing Director. General Meeting of the Company.

IV. The Independent Directors of the Holding Company were

nominated in the Subsidiary Companies Viz: M/s. K.P.R. DATE OF PAYMENT OF DIVIDEND
Sugar Mill Limited (Material Subsidiary), M/s. Jahnvi Motor The payment of Interim Dividend declared by the Board of
Private Limited and M/s. Quantum Knits Private Limited. Directors at their meeting held on 06.02.2023 was made on
V. Directors Responsibility Statement and Management 22.02.2023.
Discussion and Analysis Report have been furnished
Dividends if declared at the Annual General Meeting will be paid to
elsewhere in the Annual Report.
the Shareholders within stipulated time as per the Act.
VI. The Company has a system to inform the Members of the
Board about the risk Assessment and its minimization SHARE DETAILS:
procedure.
The Equity Shares of the Company are listed at the following
VII. The corporate governance requirements as specified in SEBI
Stock Exchanges:
(Listing Obligation and Disclosure Requirement)
Regulations 17 to 27 and clauses (b) to (i) of Regulation 46 BSE Limited Scrip Code: 532889
has been duly complied with by the Company. st
1 Floor, Rotunda Buildings,
MEANS OF COMMUNICATION
Phiiroze Jeejeebhoy Towers,
The Annual Report containing the financial statements is posted /
Dalal Street, Mumbai – 400 001
e-mailed to the shareholders of the Company in compliance with
the provisions of the Act. Towards Green Initiative, the
Shareholders are requested to convey / update their e-mail National Stock Exchange of India Limited Symbol: KPRMILL
address as well as register the same with their respective
Exchange Plaza, Plot: C/1, G Block,
Depository Participant.
Bandra-Kurla Complex, Bandra (E),
Official-news releases and official media releases are sent to
Stock Exchanges. Mumbai – 400 051

i. Quarterly Results are usually published in “Business Line”

(English) and in “Makkal Kural” (Tamil) or “Malaimalar” The Annual Listing Fee payable to the Stock Exchanges for the
(Tamil) Financial Year 2022-23 have been paid in full.
ii. The Financial Results are also accessible on the Company’s
Website www.kprmilllimited.com
DEMATERIALISATION OF SHARES:
iii. Presentations made to institutional investors and financial
Members have the option to hold their shares in demat form either
analysts on the Company’s unaudited quarterly as well as
through the National Securities Depository Limited or the Central
audited annual financial results are uploaded on the
Depository Services (India) Limited. The ISIN Number of the
Company's website.
Company is INE930H01031.
The Annual Custodian Fee for the Financial Year 2022-23 to
NSDL and CDSL have been paid in full.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 29

CORPORATE GOVERNANCE
As on 31.03.2023, shares representing 99.99 percentage of the Please register your mobile number and email id with the DP, to
total paid up capital of the Company are held in dematerialized get instant information through SMS from the Depository,
form with NSDL and CDSL. whenever shares are debited from your DP account. Please
ensure from your DP that your order is intact. Please collect a copy
REGISTRAR AND TRANSFER AGENTS: of transaction/holding from your DP periodically. Also use the
NSDL Database Management Limited nomination facility available with the Depository and register the
4th Floor, Trade World A Wing, nominee.
Kamala Mills Compound, In respect of shares to be transferred in physical form, the facility
Senapati Bapat Marg, has been done away with as per the new amendment SEBI
Lower Parel, Mumbai – 400 013 (LODR amendment) Regulation, 2018. Unless and until the
Phone: 022-49142700 shares in physical forms are converted into Demat, the transfer of
Fax: 022-49142503 shares/securities cannot be done. It is to be made clear that, this
Email: [email protected] Regulation is only with respect to transfer of shares/securities in
Website: www.ndml-nsdl.co.in
physical mode and not with respect to transposition or
SHARE TRANSFER SYSTEM transmission of securities. Such transposition and transmission
After confirmation of the sale transaction from the Broker, can still be done in physical mode. So, for effecting the transfer of
Shareholder should approach the depository participant with a shares, the shareholders are requested to send application to the
request, in the form of delivery instruction slip, to transfer the depository for conversion of physically held shares in
shares to the account of the broker. The depository participant will dematerialized form.
execute the instruction and transfer the share to the account of the
Broker.
MARKET PRICE DATA
Similarly, in the case of a purchase, the Broker will arrange to
The details of the monthly highest and lowest closing quotations of
credit the shares in the Demat account of Share Holder within 24
the Equity Shares of the Company at the BSE Limited and
hours after the payout has been declared by the Exchange. There
National Stock Exchange of India Limited, during the financial
is no need for a separate communication with the Company or its
year 2022-23 are given below:
Share Transfer Agents.

BSE NSE
Total Total
MONTH High Low Traded High Low Traded
(`) (Ps) (`) (Ps) Quantity (`) (Ps) (`) (Ps) Quantity
(in Crs) (in Crs)

April 2022 704.00 620.25 0.05 710.00 620.00 0.64

May 2022 666.00 537.90 0.06 655.95 537.95 1.03

June 2022 633.90 479.60 0.03 633.90 479.50 0.74

July 2022 604.80 488.55 0.07 605.00 488.55 1.05

August 2022 638.55 558.00 0.08 638.00 558.10 0.72

September 2022 619.80 523.05 0.08 620.00 510.00 0.55

October 2022 577.35 525.60 0.08 576.00 527.70 0.62

November 2022 580.00 530.00 0.04 580.00 525.05 0.66

December 2022 561.10 479.55 0.07 562.00 479.45 0.78

January 2023 536.70 506.30 0.02 537.00 505.95 0.34

February 2023 619.15 517.10 0.04 619.00 517.30 0.59

March 2023 614.95 536.00 0.02 615.00 535.85 0.33

30 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

CORPORATE GOVERNANCE
KPR Share Price Vs BSE Sensex
65,000
850
63,000
750 61,000
59,000
650
KPR Share Price (in `)

BSE Sensex
57,000
550
55,000
450 53,000
51,000
350
49,000
250
47,000

150 45,000
Apr-22 May Jun Jul Aug Sep Oct Nov Dec Jan-23 Feb Mar
Month
KPR HIGH BSE SENSEX HIGH

DISTRIBUTION OF SHAREHOLDINGS AS ON 31ST MARCH 2023:

Shareholdings No. of Shareholders % of Shareholders No. of Shares % of Equity

1-500 1,15,250 95.58 58,44,139 1.71

501- 1000 2,383 1.98 18,17,677 0.53
1001- 2000 1,298 1.08 19,44,745 0.57
2001- 3000 489 0.40 12,29,947 0.36
3001- 4000 239 0.20 8,51,902 0.25
4001- 5000 194 0.16 9,06,894 0.27
5001- 10000 311 0.26 22,64,940 0.66
10001 & Above 415 0.34 32,69,53,756 95.65
Total 1,20,579 100.00 34,18,14,000 100.00

SHAREHOLDING PATTERN AS ON 31ST MARCH 2023: SHAREHOLDING OF DIRECTORS AS ON 31ST MARCH 2023:
Number of S.No Name of Director Shareholding
Category % of Holding
Shares Held
1 Mr. K.P. Ramasamy 7,30,30,816
Promoters &
25,56,06,116 74.78 2 Mr. KPD Sigamani 7,30,31,217
Promoters Group
Mutual Funds 4,62,33,443 13.53 3 Mr. P. Nataraj 7,30,31,217
4 Mr. C.R.Anandakrishnan 6,950
Foreign Institutional 1,04,86,956 3.07
Investors 5 Mr. E.K.Sakthivel -
NRIs 12,72,130 0.37 6 Dr. K. Sabapathy -
Bodies Corporate 11,42,834 0.33 7 Mr. K.N.V. Ramani -
8 Mr. G.P.Muniappan -
Public 2,70,72,521 7.92
9 Mr. A.M. Palanisamy -
Total 34,18,14,000 100.00
10 Mr. C.Thirumurthy 50
(Shares in the name of relative only)

11 Dr. S. Renganayakei -

12 Mr. P. Selvakumar -

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 31

CORPORATE GOVERNANCE
PLANT LOCATION:

LOCATION TELEPHONE FACILITIES

Indiampalayam Village, Tel: + 91 4285 251490 Spinning

Sathyamangalam – 638 454

S.F.No.273, Kittampalayam,
Tel: + 91 421 2321000 Spinning, Knitting, Compact & Mélange
Karumathampatti,
Coimbatore – 641 659.

S.F. No.525, Neelambur, Tel: + 91 422 2625115 Spinning & Knitting

Coimbatore – 641 062

S.F.No.181, Kollupalayam, Tel: + 91 422 2635500 Spinning, Knitting & Garmenting

Arasur, Coimbatore – 641 407.

252, Periyar Colony, Tel: + 91 421 2259200 Garmenting

Tirupur – 641 652

SIPCOT Industrial Area, Tel: + 91 4294 234800 Processing

Perundurai

270 J, Periyar Colony, Tel: + 91 421 2259500 Marketing (Yarn & Fabric)
Tirupur – 641 652

S.F. No 7, Avinashi Road, Thekkalur,

Ph: +91 89733 33255 Garmenting
Tirupur- 641 654

No 460, Avinashi Main

Road, Thekkalur, Tel: +91 422 263 5550 Garmenting
Tirupur – 641 654

SIPCOT Industrial Area,

Tel: + 91 4294 234800 Processing Unit II and Printing Division
Perundurai

Tirunelveli, Tenkasi, Theni

- Windmills
& Coimbatore District

ADDRESS FOR CORRESPONDENCE

Company Secretary,
K.P.R. Mill Limited,
1st Floor, Srivari Shrimat,
1045, Avinashi Road,
Coimbatore – 641 018
Ph: +91 422 220 7777
For your reference the Company’s CIN: L17111TZ2003PLC010518

32 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

CORPORATE GOVERNANCE
LIST OF ALL CREDIT RATINGS OBTAINED BY THE ENTITY MATERIAL SUBSIDIARY:
ALONG WITH ANY REVISIONS THERETO DURING THE The Company has also formulated a policy for determining the
RELEVANT FINANCIAL YEAR Material Subsidiary. In order to fall in line with the requirements of
SEBI (LODR) Regulations, 2015 the ‘Policy for determining
CARE Ratings Limited has revised and re-af firmed its Credit
material subsidiary’ was amended by the Board of Directors at
Rating as follows:
their meeting held on 03.05.2023 and the details of such policies
Facilities Ratings Rating Action are disseminated in the website of the Company. The Website link
to the policy as provided here:
Long-term CARE – AA+; Stable Revised from
https://kprmilllimited.com/file/wp-
Bank Facilities (Double A Plus; CARE AA; Stable
content/uploads/2023/05/Policy-for-Material-Subsidiaries-
Outlook; Stable) (Double A; Outlook:
KPRML.pdf
Stable)
In addition to K.P.R. Sugar Mill Limited, a Wholly Owned
Short- term CARE A1+ Reaf firmed
(A one Plus) Subsidiary Company with effect from 01.04.2023 KPR Sugar and
Bank Facilities
Apparels Limited, another Wholly Owned Subsidiary Company
CAPITAL INTEGRITY AUDIT also becomes Material Subsidiary.
The Certificate from a Practicing Company Secretary, confirming 1. K.P.R. Sugar Mill Limited was incorporated on 03.03.2006 at
that the total issued capital of the Company is in agreement with Coimbatore and its Statutory Auditor, Mr. A. Vetrivel was
the total number of shares in physical form and the total number of re-appointed on 19.08.2022 to audit the accounts from
dematerialized shares held with the National Securities FY 2022-23 to FY 2026-27.
Depository Limited and Central Depository Services (India) 2. KPR Sugar and Apparels Limited was incorporated on
Limited, is placed before the Board on a quarterly basis. A copy of 01.10.2020 at Coimbatore and its Statutory Auditor, Mr. A. Vetrivel
the said Certificate is submitted to the Stock Exchanges where the was appointed on 06.09.2021 to audit the accounts from
securities of the Company are listed. FY 2021-22 to FY 2025-26.
PREVENTION OF INSIDER TRADING Its Secretarial Audit Report as per 24A of SEBI (LODR)
Pursuant to SEBI (Prohibition of Insider Trading) Regulation, Regulations is provided in the following web link:
2015, the Company has prescribed a Code of Conduct for https://kprmilllimited.com/financial- result_annual-reports/
prevention of insider trading through Purchase / Sale of Share of Loans and advances
the Company by an insider on the basis of unpublished price
The Company has extended loan to its wholly owned Subsidiary
sensitive information. The same is followed and the designated
Company, KPR Mill Pte Ltd, Singapore and its balance as on
persons are disclosing the related information periodically. As per
SEBI (Prohibition of Insider Trading) Regulations, the Automation 31.03.2023 was ` 223 lakhs.
of System driven continuous Disclosures are also adopted. The Wholly owned Subsidiary Company K.P.R. Sugar Mill Limited
The Company has also formulated a Code for Fair Disclosure of has extended loan to another wholly owned Subsidiary Company
the Price Sensitive information in pursuance of SEBI (Prohibition KPR Sugar and Apparels Limited and its outstanding is
of Insider Trading) Regulations, 2015 and the same is ` 11,516 Lakhs.
disseminated in the website of the Company. RELATED PARTY TRANSACTIONS (RPT)
Mr.P.Kandaswamy, Company Secretary functions as the There has been no materially significant related party transaction
Compliance Officer. with the Company’s Promoters, Directors, KMP and the
SUBSIDIARY Management, their Subsidiaries or relatives which may have
potential conflict with the interests of the Company at large. The
The financials of the Subsidiary Companies viz., M/s.K.P.R. Sugar
necessary disclosures regarding the transactions in pursuance of
Mill Limited, M/s.Jahnvi Motor Private Limited, M/s Quantum Knits
Accounting Standards are given in the notes to accounts and
Private Limited, M/s.Galaxy Knits Limited, M/s. KPR Sugar and
Directors’ Report.
Apparels Limited, M/s. KPR Export PLC, Ethiopia and M/s. KPR
MILL PTE.LTD, Singapore have been duly reviewed by the Audit As per SEBI (LODR), periodical report on related party
Committee and the Board of the Holding Company. Salient transactions are filed with the Stock Exchanges and uploaded in
features of the Board minutes of the unlisted subsidiary the Company website.
companies have been placed before the Board of the Holding The Company has also formulated a policy on dealing with the
Company. The Holding Company's Board is also periodically Related Party Transactions and the details of such policies are
informed about all significant transactions and arrangements disseminated on the website of the Company.
entered into by the Subsidiary Companies. The Website link to the policy as provided here:
https://kprmilllimited.com/file/wp-
content/uploads/2022/11/RELATED-PARTY-TRANSACTION-
POLICY.pdf

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 33

CORPORATE GOVERNANCE
(` in Lakhs)
DETAILS OF NON – COMPLIANCE BY LISTED ENTITY: Particulars Amount
During the last three financial years there were no non - Services as statutory auditors
compliances by the listed entity nor any penalties or strictures (including quarterly audits) 32.00
imposed on the Listed Entity by the Stock Exchanges or Board or
Tax audit -
any Statutory Authority on the matters related to Capital Market.
Services for tax matters -
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM AND
Other matters -
WHISTLE BLOWER POLICY
Re-imbursement of out-of-pocket expenses 1.00
The Company has formed Vigil Mechanism and Whistle Blower
Policy that provides for adequate safeguards against victimization Total 33.00
of Directors / Employees who avail of the mechanism. The
CORPORATE GOVERNANCE VOLUNTARY GUIDELINES
Company affirms that no personnel have been denied access to
the Audit Committee. Further details of the same are provided in Committed to the principles of good Corporate Governance, the
the Directors report. Company has, wherever necessary, complied with the Voluntary
Guidelines issued by the Ministry of Corporate Affairs on
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS: Corporate Governance.
Certificate from PCS stating that none of the directors are
REPORT ON COMPLIANCE WITH THE DISCRETIONARY
debarred or disqualified forms a part of this Annual Report.
REQUIREMENTS
REGARDING SEXUAL HARASSMENT OF WOMEN AT The Report on Compliance of Discretionary Requirements as
WORKPLACE provided in the Listing Regulation is furnished below:
As per the requirements of sexual harassment of women at 1. The Board:
workplace (prevention, prohibition and redressal act) 2013 The Chairman of the Company is an Executive Chairman having
Internal Complaints Committee has been formed. There were no an office at the premises of the company.
complaints filed/disposed or pending during the financial year 2. Shareholder Rights:
2022-23. The Company has been consistently requesting the shareholders
TRANSFER TO IEPF ACCOUNT OF CENTRAL GOVERNMENT to furnish their e-mail ID with Depository/RTA/Company every year
through AGM Notice. But still some of the shareholders have not
The Company has transferred the following unpaid dividend furnished the same. After completion of the process the Company
amounts which remained unpaid for more than seven years that may consider forwarding the financial results to all the
were due for transfer during the financial year 2022-23 to the shareholders periodically.
Investor Education and Protection Fund of the Central
3. Modified opinion(s) in Audit Report:
Government:
The Auditor’s Report to the Shareholders does not contain any
Transfer of Unclaimed Dividends to IEPF Account qualification.
4. Separate posts of Chairperson and Chief Executive Officer:
S.No Dividend Date of Transfer Amount (`) The Company has an Executive Chairman and two Managing
Directors among whom one is a Chief Executive Officer.
Final Dividend
1 2014-15 26.09.2022 81,955.00 5. Reporting of Internal Auditor:
Interim Dividend The Internal Auditor is reporting directly to the Audit Committee.
2 03.03.2023 97,065.00
2015-16 The above Corporate Governance Report has been placed before
3 Second Interim 10.04.2023 58,168.00 the Board of Directors at their Meeting held on 03.05.2023 and the
Dividend 2015-16
same was approved thereat.
Transfer of Shares to IEPF Account CODE OF CONDUCT AND ETHICS – DECLARATION
It is hereby declared that the Board of Directors of the Company
No of Shareholders No of Shares Date of Transfer have adopted a Code of Conduct for the Board members and
Senior/Key Management Personnel of the Company and the same
2 70 31.10.2022 has also been posted in the website of the Company and that all the
Board Members and Senior/Key Management Personnel to whom
3 900 05.04.2023
this Code of Conduct is applicable have af firmed the compliance of
Code of Conduct during the year 2022 - 23.
FEES TO STATUTORY AUDITOR P.Nataraj
The particulars of payment of Statutory Auditors' fees, including Coimbatore Chief Executive Of ficer &
subsidiaries on a consolidated basis is given below: 03.05.2023 Managing Director
DIN: 00229137

34 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 INDEPENDENT AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

CERTIFICATE
INDEPENDENT AUDITORS’ CERTIFICATE ON COMPLIANCE WITH THE CORPORATE GOVERNANCE REQUIREMENTS UNDER
SEBI (Listing Obligations and Disclosure Requirements) REGULATIONS, 2015
To the Members of K.P.R. Mill Limited
1. This certificate is issued in accordance with the terms of our engagement letter dated April 7, 2023.
2. We have examined the compliance of conditions of Corporate Governance by K.P.R Mill Limited (“the Company”), for the year ended
March 31, 2023, as stipulated in regulations 17 to 27, clauses (b) to (i) of regulation 46(2) and paragraphs C, D and E of Schedule V of
the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time
to time (“Listing Regulations”) pursuant to the Listing Agreement of the Company with the National Stock Exchange of India Limited and
the BSE Limited (collectively referred to as “Stock Exchanges”).

Management’s Responsibility
3. The compliance of conditions of Corporate Governance as stipulated under the listing regulations is the responsibility of the Company’s
Management including the preparation and maintenance of all the relevant records and documents. This responsibility includes the
design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of Corporate
Governance stipulated in the Listing Regulations.

Auditors’ Responsibility
4. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the
conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
5. Pursuant to the requirements of the Listing Regulations, it is our responsibility to provide a reasonable assurance whether the
Company has complied with the conditions of Corporate Governance as stipulated in Listing Regulations for the year ended March 31,
2023.
6. We conducted our examination of the above corporate governance compliance by the Company in accordance with the Guidance Note
on Reports or Certificates for Special Purposes (Revised 2016) and Guidance Note on Certification of Corporate Governance both
issued by the Institute of the Chartered Accountants of India (the “ICAI”) and the Standards on Auditing specified under Section 143(10)
of the Companies Act, in so far as applicable for the purpose of this certificate. The Guidance Note requires that we comply with the
ethical requirements of the Code of Ethics issued by the ICAI.
7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that
Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Regulations.
9. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with
which the management has conducted the affairs of the Company.

Restriction on use
10. The certificate is addressed and provided to the Members of the Company solely for the purpose of enabling the Company to comply
with the requirement of the Listing Regulations and should not be used by any other person or for any other purpose. Accordingly, we do
not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is shown or
into whose hands it may come without our prior consent in writing.

For B S R & Co. LLP

Chartered Accountants
Firm’s Registration No. 101248W/W-100022

K Sudhakar
Partner
Place : Coimbatore Membership No. 214150
Date : May 3, 2023 ICAI UDIN: 23214150BGXPGC6162

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 35

 CEO / CFO CERTIFICATE

CERTIFICATE
CEO / CFO CERTIFICATE

The Board of Directors

K.P.R. Mill Limited,
Regd Office: No.9, Gokul Buildings, 1st Floor,
A.K.S. Nagar, Thadagam Road,
Coimbatore - 641 001

In relation to the Audited Financial Accounts of the Company as at 31.03.2023 we hereby certify that:

a) We have reviewed financial statements (standalone and consolidated) for the year ended and that to the best of our knowledge and
belief:
(i) These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be
misleading;
(ii) These statements together present a true and fair view of the Company’s affairs and are in compliance with existing Indian
Accounting Standards, applicable laws and regulations.

b) There are to the best of our knowledge and belief, no transactions entered into by the Company during the period which are fraudulent,
illegal or violative of the Company’s Code of Conduct.

c) We accept that it is our responsibility to establish and maintain internal controls for financial reporting and that we have evaluated the
ef fectiveness of the internal control systems of the Company pertaining to the financial reporting and we have disclosed to the Auditor
and the Audit Committee, deficiencies in the design or operation or such internal controls, if any of which we are aware and the steps we
have taken or proposes to take to rectify these deficiencies.

(i) There were no deficiencies in the design or operation of internal controls, that could adversely affect the Company’s ability to
record, process, summarize and report financial data and there have been no material weakness in internal controls over financial
reporting including any corrective actions with regard to deficiencies.

(ii) There were no significant changes in internal control during the period covered by this report.

(iii) All significant changes in accounting policies during the period, and that the same have been disclosed in the notes to the financial
statements;

(iv) There were no instances of fraud of which we have become aware and the involvement therein, if any, of the Management or an
employee having a significant role in the Company’s internal control system over financial reporting.

Place: Coimbatore PL. Murugappan P. Nataraj

Date: 03.05.2023 Chief Financial Officer Chief Executive Officer &
Managing Director

36 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

MANAGEMENT DISCUSSION AND ANALYSIS
MANAGEMENT DISCUSSION AND ANALYSIS REPORT supported by the concluded / yet to be concluded FTAs.
ECONOMY Cotton
Global Cotton has a prominent share in the textile manufacturing sector.
India has the distinction of having the largest area under cotton
The global economy is still marred by profound shocks and
cultivation which is about 38% of the world area under cotton
unprecedented uncertainty. Mixed signals are emanating from the
cultivation and is one of the largest producer of cotton in the world
geopolitical situation and financial market volatility. Just as the
accounting for about 22% of the world cotton production. However
COVID-19 pandemic was receding, the war in Ukraine
cotton yield is still lower against the world average yield. The
overwhelmed the world and fundamentally altered the global
increasing applications and usage of cotton in various industries
economic outlook. Surges in food and energy prices and
are driving the demand for cotton from many countries across the
shortages in key staples have severely affected the poorer
globe.
sections across the world. Though international food, energy and
other commodity prices have eased moderately in recent times, Speculative trading, unseasonal rains and global shortage were
inflation remains high and broad-based. the route cause for the historical increase in cotton price. The
notable point is that the farmers are already taking the price
India
reflecting on international and national commodities market as
In this hostile international environment, the Indian economy reference price.
remains resilient, drawing strength from its macroeconomic
INDIAN COTTON BALANCE SHEET FOR THE SEASON 2022-23
fundamentals. Our financial system remains robust and stable.
Banks and corporates are healthier than before the crisis. India is As on 31.03.2023 (In Lakh Bales)
widely seen as a bright spot in an otherwise gloomy world. Yet, our
inflation remains elevated, as in most parts of the world. Opening Stock 39.48

TEXTILE INDUSTRY Production 337.23

Global Imports 10.00

The Russia-Ukraine war impacted the pace of the global market TOTAL SUPPLY 386.71
recovery from the COVID-19 pandemic. The war has led to Consumption 311.00
economic sanctions on multiple countries, a surge in commodity
prices and supply chain disruptions, causing inflation across Exports 30.00
goods and services affecting many markets across the globe. TOTAL DEMAND 341.00
However, the global textile market grew from $573.22 billion in
2022 to $610.91 billion in 2023 at a compound annual growth rate Closing Stock 45.71
(CAGR) of 6.6%. Growth of E-commerce - Increasing demand for
online shopping is expected to drive the textile manufacturing (Source: Government of India’s Committee on Cotton
market. The Textile market is expected to grow to $755.38 billion in Production & Consumption)
2027 at a CAGR of 5.5% (Source-Business Research Company). YARN
India The majority of cotton yarn produced across the globe is used to
Empowered with the abundant availabilities of Cotton, India also manufacture apparels. Currently, consumers and brands are
has a large pool of manpower which is advantageous since textile promoting sustainable fashion like never before, and clothing
and apparel is a labour-intensive sector. The Indian Textile and made using cotton yarn is an excellent choice for sustainability.
apparel manufacturing is second largest in the world that spans High cotton yarn price was compounded by a rise in cotton prices.
the entire value chain from fibre to finished goods. All these factors Challenges such as the Russia – Ukraine war have further
promoted India as one of the leading manufactures and a sourcing contributed to the price rise. However, the prices of cotton are
hub. The enthusiasm in the textile industry on account of the latest returning to normalization as the supply chain is getting back on
FTAs is expected to move beyond enhanced market access and track. This in turn is expected to normalize the industry in the next
trade. few years. Nowadays, key fashion houses and retailers have
started to progressively incorporate cotton into the supply chains
There appears to be plenty of opportunities for the Indian T&C resulting in a significant increase in the product demand. This is
Industry arising globally as the majority of Companies and anticipated to benefit and create new opportunities for the cotton
Customers are looking for market diversification and explicitly, yarn market growth. Thus, rising demand from the global textile
India is the most favoured destination. The Country has the industry is likely to drive its market growth.
potential to grab the emerging demands and markets by making
investments in sustainability, circularity and traceability,

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 37

MANAGEMENT DISCUSSION AND ANALYSIS
GARMENTS facilities, they are also equipped with higher education facility
empowering their competence. Moreover KPR also extends
Growing awareness of the latest fashion trends among the young
placement services to them commensurate with their educational
generation helps to propel the textile garment market. Increased
qualifications, in other reputed enterprises which is hailed as one
spending on apparel and accessories from online platforms and
of the innovative services towards development of Women and
rising willingness to pay a premium for high-quality apparel, and
the Society. We are very happy to share that our work force
increasing awareness towards sustainable and eco-friendly
demonstrates their outstanding performance making best use of
clothing helps to boost the growth of the textile garment market.
the higher education facilities and the placement services.
In the total global textiles trade, 60% represents apparel. India is
the sixth largest exporter of textiles and apparel products in the PERFORMANCE
world with a massive raw material and manufacturing base. India
The historical high demand for Cotton resulted in spiralling its
has a large working population, which can be a great asset in the
prices both the domestic and international markets. However the
labour intensive textiles sector, particularly in the garments
consequential increase in yarn prices was not commensurate with
industry. Garment players in particular are expanding their scale
the increase in price of cotton thereby impacting the margin in yarn
and process capabilities to International Standards and gradually
segment. Though due to Ukraine war, garment orders from
gaining market share. The Indian textiles sector needs to act fast
Europe in general were slow, since we are in the basic segment its
and grab the huge opportunity opening up due to a change in
impact was less. The garment sales, margin and order position
global textiles trade patterns. While the opportunity is huge, the
continues to be good. With regard to Sugar and Ethanol the
government and the industry need to act in coordination, as the
encouraging trend continued.
world will not wait.
RETAIL BUSINESS - FASO
Internal control
In addition to the stylish Men’s wear, we have also introduced
Internal Control comprises of the plan of organization and all the
Women’s wear during the year, which was also responded well.
coordinate methods and measures adopted within a business to
Towards Pan – India plans, besides South India we have also
safeguard its assets; check the accuracy and reliability of its
covered 7 more States and in the Current year planning to stretch
accounting data and completeness of accounting records;
our wings to other states also. Moreover, established Two
promote operational efficiency; to encourage adherence to the
exclusive stores and tie up with large format stores have also been
prescribed managerial policies, to assist in achieving the orderly
entered. Our products are also very active in online trade.
and efficient conduct of business; prevention and detection of
fraud and errors and timely preparation of financial statements. EXPANSION

Our Internal Control System is fully equipped with necessary The expanded capacities in Garment & Sugar, Cogen and Ethanol
checks and balances ensuring that the transactions are segments have started adding revenue to the Company. Fabric
adequately authorized and reported correctly. The Internal Auditor Printing Capacity has been doubled (15000 MT per annum). We
conducts regular Audits of various departments and Units to have installed 10 MW rooftop Solar Power plant at Arasur
ensure that necessary controls are in place. The Audit Committee Factories and awaiting the approval from the TANGEDCO.
while reviewing the system and the Internal Audit Report, call for
We are also contemplating setting up of a separate Spinning Mill
comments of Auditors on internal control systems and discuss any
for viscose yarn and expansion of Ethanol production capacity
related issues with the Auditors and the Management of the
through our wholly owned Subsidiary Companies. Depending on
company before submission to the Board. The Independent
the market scenario and prospects the Board may consider
Directors also satisfy themselves on the integrity of financial
further expansion at appropriate time.
information and ensure that financial controls including Signature
controls. Budget Controls, Data control and systems of risk RISKS AND THREATS
management are in place. The systems and procedures are Risk relating to Raw material
documented by way of Manual.
Cotton plays an important role in the Indian economy as the
EMPLOYEE WELFARE country’s textile industry is predominantly cotton based. India is
The economic and social developments of Women in our Country one of the largest producers as well as exporters of cotton yarn.
relies on their access to employment opportunities and other Cotton accounts for more than 51 percent of the total raw material
services such as Education, Health Care, Finance etc, enabling cost in the Indian textile industry and continues to remain at an
their better participation in the economy and society. Education elevated level. The wild fluctuation in its prices - highest in a
provides each individual a basis for the development of their decade - has impacted the margins of the Industry as a whole.
performance laying the foundation for employability. Realising However, it is reported that the increase in the cotton crop area as
and recognising the above societal needs, KPR has ensured that well as its yields are also likely to mitigate its impact during the next
90% of its workforce represents female fraternity and that too financial year. Though the cotton prices have cooled down against
mostly from rural places. Besides industry acclaimed welfare its peak price, the prices are still higher than the pre-covid level
only.

38 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

MANAGEMENT DISCUSSION AND ANALYSIS
The prudent and pragmatic cotton procurement strategies and Disaster Risks:
availability of exclusive personnel in the cotton growing areas and
The Company has a well-designed safety management policy
market to monitor and report the events affecting its availability
that eliminates / reduces the risk of workplace incidents, injuries,
and supplies enables KPR to access the quality cotton at
and fatalities through adoption of various well defined safety
competitive prices. As KPR is an integrated Apparel Unit, the
measures and devices. Its proper implementation and updation
impact of higher cost of raw material on its performance is minimal
enable effective prevention besides equipping the employees to
as the additional cost can be shouldered by the resultant products.
handle any incident that may occur. The properties of the
Risk relating to Technology obsolescence Company are insured against natural risks like fire, earthquakes,
etc. with periodical review of adequacy, rates and risks covered.
As the Indian Textile Industry is maturing, the levels of competition
are also escalating. In order to survive and thrive in the present- Financial Risks:
day world, textile manufacturers are increasingly relying on a wide
Proper financial planning evolved by qualified and competent
range of machinery testing equipment for ensuring optimal quality
Personnel is put in place with detailed Annual Business Plans.
of output. The onus is on textile producers to maintain a balance
Annual and quarterly budgets are prepared and put up to the
between speed, quality and expertise – and technology is helping
management for detailed discussion and analysis. The Projects
them do precisely that. Considering these and the factors such as
and expenses are regularly monitored. Preparation of daily and
increased efficiency and productivity KPR always buy new
monthly cash flows ensures utilization of funds in an effective
advanced Technology Machinery and Equipments only.
manner. The Budgets are regularly placed at Audit Committee and
Moreover, regular updation of technology advancement in the
the Board.
machinery and production process continues, thereby
automation, wherever possible, is introduced which also entails i. Credit Risks:
production and supply of high quality goods and services.
Systems are put in place for assessment of credit worthiness of
Market Risks / Industry Risks: customers before admission into dealing. Continuous and
periodical monitoring of outstanding, appropriate recovery
The calamities such as Ukraine war and the pandemic pose a
management system including legal course of action and
grave risk to the world economy. The world economic growth has
vigorous follow up are adopted by the Company to mitigate this
slowed and accordingly International fashion retailers have
risk.
reported rise in inventory and pressure on their margins since
summer. This is also reflected in the slump in their off take from ii. Foreign Exchange Risks:
supplying countries. However, as we are in the basic segment, its
We have foreign currency exposure in Exports and Imports,
impact is expected to be less. It is hoped that with the unstinted
significantly in US Dollar & Euro. Foreign Currencies are exposed
support from all the Stakeholders KPR would be able to manage
to risk on account of adverse currency movements. Exchange
such risk.
rate fluctuations could cause some of our costs to grow higher
Logistics Risks: than the proportionate revenues. To manage our foreign
exchange risk arising from commercial transactions and
One of the foremost challenges that the logistics sector faces
recognized assets and liabilities, we use forward contracts and
today arise due to poor infrastructure. Physical infrastructure
selectively enter into hedging transactions to reduce the risks of
impacts transportation which facilitates logistics. The country
currency fluctuations. To manage the Forex related matters we
faces challenges in port and roadways infrastructure which
have a competent team consisting of qualified and experienced
directly impacts the transportation of goods. Fuel costs and policy
Personnel.
changes directly impact the logistics sector, since higher the costs
of fuel, higher are the transportation and freight costs which would Labour Shortage
directly impact the costs and disrupt the supply chain. However,
The scarcity of skilled workforce is a matter of concern for the
KPR with its strategic Logistic team is able to source and supply
Labour Intensive Indian Textile Industry. The Government is trying
products as per plans.
to curb the skilling gap in the textile segment with the help of
Political environment risks: schemes like PMKVY. However, KPR doesn’t face this issue
because of its best HR practices that are unique and distinctive
The Government has been paying due attention to the problems
from others. Low absenteeism & attrition rate, higher productivity,
faced by the industry. The industry associations have also brought
ability to source required work force are the fruits of its strategic
before the Government all major issues faced by the industry then
HR policies.
and there.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 39

MANAGEMENT DISCUSSION AND ANALYSIS
Stiff competition from low cost Countries enjoying duty promoting and supporting the textiles sector such as Free Trade
concessions Agreements (FTA), Production Linked Incentive (PLI) scheme,
development of textile parks, and its exports-promotion schemes.
Indian textile exporters can benefit from the FTA as tariff and non-
Its initiatives are focused on promoting technology upgradation,
tariff barriers may be eased under the deal. Currently,
creation of infrastructure, skill development and sectoral
Bangladesh, Sri Lanka, Pakistan and some other countries get
development in textile sector. These initiatives are likely to create
preferential treatment while exporting to the UK, Europe and US.
a positive environment and provide a conducive environment for
Indian exporters feel that they are not getting equal treatment in
textile manufacturing across the globe. KPR, equipped with the
the developed economies. It is expected that the concluded and
hi-tech integrated facilities, enthused work force, progressive
the ‘on-going FTAs’ will provide Indian exporters a level playing
business model and empowered by strong performance track
field to some extent.
record, loyal customer base and drive for enhancing value for all
CYBER RISK AND SECURITY stakeholders, remains optimistic about healthy growth and
prosperity in the coming years also.
In the present world, the cyber threats presented by modern tech
are a cause of concern and as such cyber security measures are
inevitable. Cyber security encompasses technologies, For and on behalf of the Board
processes, and methods to defend computer systems, data, and
networks from attacks. The Company employs different best K.P. Ramasamy
practices to secure computer systems and networks as Coimbatore Chairman
suggested by the Cyber Security Team consisting of Tech Savvy 03.05.2023 DIN: 00003736
Personnel and a Director who has wide knowledge in the IT field.
Periodical monitoring of the measures is also in place to
strengthen the security systems.
The following measures adopted by the Company to mitigate the
risk continued:
1. End-user training
2. Operating System and Application patches and updates
3. Endpoint Update and Monitoring
4. Strong password policy
5. Access control measures
6. Minimize administrative access
7. Network segmentation and segregation
8. Device security
9. Protect mobile devices
10. Strong IT policies
11. Staff training on cyber security awareness and policies
12. Data backups
13. Periodical system audit
FUTURE PROSPECTS
After the covid-19 disturbance, the world is aggressively
diversifying outside China and looking for a reliable, sustainable,
and scalable partner in textiles trade. Empowered by the
significant advantages in availability of raw material and labour,
India should capitalise the opportunity to increase its share in
global apparel and textiles trade with a quantum leap, rather than
the incremental gains that it achieved in the past. The Government
of India has an ambitious target of taking textile and apparel (T&A)
exports to US$ 100bn in FY28 and taking encouraging efforts for

40 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
SECTION A: GENERAL DISCLOSURES

I. DETAILS OF THE COMPANY

1 Corporate Identity Number (CIN) of the Listed Entity L17111TZ2003PLC010518

2 Name of the Listed Entity K.P.R. Mill Limited

3 Year of incorporation 2003

No. 9 Gokul Buildings, 1st Floor, A.K.S Nagar,

4 Registered office address
Thadagam Road, Coimbatore – 641 001, Tamil Nadu

1st Floor, Srivari Shrimat, 1045, Avinashi Road,

5 Corporate address
Coimbatore – 641 018, Tamil Nadu

6 E-mail [email protected]

7 Telephone 0422-2207777

8 Website www.kprmilllimited.com

9 Financial year for which reporting is being done 2022-23

10 Name of the Stock Exchange(s) where shares are listed BSE Limited & National Stock Exchange of India Limited

11 Paid-up Capital ` 34,18,14,000

12 Name and contact details (telephone, email address) Mr.P.Kandaswamy

of the person who may be contacted in case of any Company Secretary
queries on the BRSR report 1st Floor, Srivari Shrimat, 1045, Avinashi Road,
Coimbatore – 641 018. Tamil Nadu
Phone No. 0422-2207777
E-mail ID: [email protected]

13 Reporting boundary - Are the disclosures under this Disclosures made in this report are on a
report made on a standalone basis (i.e. only for the entity) standalone basis
or on a consolidated basis (i.e. for the entity and all the
entities which form a part of its consolidated financial
statements, taken together).

II. PRODUCTS/SERVICES

14. Details of business activities (accounting for 90% of the Turnover):

S.No Description of Main Activity Description of Business Activity % of Turnover of the entity

1. Manufacturing Yarn 40.80

2. Manufacturing Fabric 8.09

3. Manufacturing Garment 41.96

15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

S.No Product/Service NIC Code % of total Turnover contributed

1. Garment 18101 41.96

2. Yarn 17121 40.80

3. Fabric 17115 8.09

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 41

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

III. OPERATIONS

16. Number of locations where plants and/or operations/offices of the entity are situated:

Location Number of plants Number of offices Total

National 11 1 12

International Nil Nil Nil

17. Markets served by the entity:

a. Number of locations

Location Number

National (No. of States) 15

International (No. of Countries) 60

b. What is the contribution of exports as a percentage of the total turnover of the entity?
In the reporting year, the contribution of exports is 37.52%

c. A brief on types of customers

Our commitment to quality and customer service earned a strong customer base-over 1300 regular domestic clients for yarn
and fabrics and Leading Brands from more than 60 countries for Apparels.

IV. EMPLOYEES

18. Details as at the end of Financial Year 2022-2023:

a. Employees and workers (including differently abled):

Male Female
S.No Particulars Total (A)
No.(B) % (B/A) No.( C) % (C/A)

EMPLOYEES

1 Permanent (D) 3,462 2,876 83.07 586 16.93

2 Other than Permanent (E) - - - - -

3 Total employees (D + E) 3,462 2,876 83.07 586 16.93

WORKERS

4 Permanent (F) 18,357 545 2.97 17,812 97.03

5 Other than Permanent (G) - - - - -

6 Total workers (F + G) 18,357 545 2.97 17,812 97.03

42 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
b. Differently abled Employees and workers:

Male Female
S.No Particulars Total (A)
No.(B) % (B/A) No.( C) % (C/A)

DIFFERENTLY ABLED EMPLOYEES

1 Permanent (D) - - - - -

2 Other than Permanent (E) - - - - -

3 Total employees (D + E) - - - - -
DIFFERENTLY ABLED WORKERS

4 Permanent (F) - - - - -

5 Other than Permanent (G) - - - - -

6 Total workers (F + G) - - - - -

19. Participation/Inclusion/Representation of women:

No. and percentage of Females

Total (A)
No.(B) % (B/A)

Board of Directors 11 1 9.09

Key Management Personnel 2 - -

20. Turnover rate for permanent employees and workers:

FY 2022-23 FY 2021-22 FY 2020-21

Male Female Total Male Female Total Male Female Total

Permanent Employees 3 5 8 3 5 8 3 5 8
Permanent Workers 11 9 20 12 9 21 10 7 17

V. HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES (INCLUDING JOINT VENTURES)

21. (a) Names of holding / subsidiary / associate companies / joint ventures

S.No Name of the holding / subsidiary / Indicate whether % of shares Does the entity indicated at
associate companies / Holding/ held by column A, participate in
joint ventures (A) Subsidiary/ listed entity the Business Responsibility
Associate/ initiatives of the listed
Joint Venture entity? (Yes/No)

1 K.P.R. Sugar Mill Limited Subsidiary 100%

2. Quantum Knits Private Limited Subsidiary 100%

3. Jahnvi Motor private Limited Subsidiary 100%

4. Galaxy Knits Limited Subsidiary 100% NO

5. KPR Sugar and Apparels Limited Subsidiary 100%

6. KPR Exports Plc Subsidiary 100%

7. KPR Mill Pte Ltd Subsidiary 100%

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 43

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
VI. CSR DETAILS

22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) - Yes

(ii) Turnover (in lakhs) : ` 4,73,955

(iii) Networth (in lakhs) : ` 2,97,296

VII. TRANSPARENCY AND DISCLOSURES COMPLIANCES

23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

FY 2022-2023 FY 2021-2022
Stakeholder Grievance Redressal
group Mechanism in Place Number of Number of Remarks Number of Number of Remarks
from whom (Yes/No) (If Yes, complaints complaints complaints complaints
complaint is then provide web-link filed during pending filed during pending
received for grievance the year resolution the year resolution
redress policy) at close at close
of the year of the year

Community Yes. 0 0 0 0 0 0
1. The Company has
Investors (other than
framed Whistle Blower 0 0 0 0 0 0
shareholders)
Policy facilitating better
Customers Corporate Governance 0 0 0 0 0 0
practices which ultimately
Value Chain Partners benefit all the 0 0 0 0 0 0
stakeholders. Industry
Employees and acclaimed HR Policy 0 0 0 0 0 0
workers covering different areas
including grievance
redressal mechanism for
employees and workers
are in place. Also, the
Company has Standard
operating procedure in
place to resolve the
grievances of its
customers and ensure
customer satisfaction.
(Web portal:
https://kprmilllimited.com/
file/wp-
content/uploads/2018/11/1
-WBP-KPRML-1-GPM-
Altered.pdf
2. We have engaged an
NGO who monitors
advisory body for
resolving employees and
workers grievances
through ‘Ulula Grievances
Mechanisms system’.
Ulula has given a toll free
number to call and
register their grievances
directly at any time for
effective remediation.
Ulula app is also
available.

44 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
Shareholders Investor Grievances are promptly 3 0 All 0 0 0
redressed by our RTA, M/s. NSDL complaints
Database Management Limited by have
following ‘SEBI Investor Charter’ been
formulated by SEBI. In addition, the redressed
Company also effectively addresses the
grievances, if any, received directly
through its competent & experienced
Personnel in the secretarial department.
Further, SEBI has also provided for
‘SCORES platform’ to register
grievances directly by the investors,
which are also periodically monitored
and addressed by the Company. The
Stakeholders Relationship Committee
also monitors all such issues
periodically. The Investors can contact /
lodge their grievance in the following
e-mail id’s:
1. [email protected]
2. [email protected]

Other
(please specify) NA 0 0 0 0 0 0

24. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present
a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial
implications, as per the following format

S.No Material issue Indicate whether Rationale for identifying In case of risk, Financial implications
identified risk or the risk / opportunity approach to adapt of the risk or
opportunity (R/O) or mitigate opportunity (Indicate
positive or negative
implications)
1 Sustainable Opportunity Opportunity: We have a Positive:
Raw material and Risk dedicated cotton
procurement As quality is our Watchword, be it the team to monitor The products
products we produce or service we its availability produced out of high
provide, we always buy best quality and its price quality cotton &
Cotton Shankar – 6 from Gujarat to fluctuations. The sustainable cotton
ensure consistent quality. Wherever availability of always fetch
required, we also buy sustainable Cotton exclusive remunerative prices.
such as BCI, Organic, CMIA according to personnel at the
the requirements. Sourcing sustainable cotton growing Negative:
cotton reduces environmental and social areas and their
impacts besides delivering high quality prudent & Cotton prices have
products to our valued customers. pragmatic cotton direct impact on the
procurement profit margins of the
Risk: strategies enable Company. Cotton
Cotton being our key raw material, us to access being a single major
sourcing of high quality cotton at quality cotton. cost of production,
competitive price is always a major fluctuation in its
challenge. Speculative trading, prices tend to impact
unseasonal rains and global shortage the bottom line.
are the causes of its price fluctuations.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 45

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
S.No Material issue Indicate whether Rationale for identifying In case of risk, Financial implications
identified risk or the risk / opportunity approach to adapt of the risk or
opportunity (R/O) or mitigate opportunity (Indicate
positive or negative
implications)
2 Water Use Opportunity Opportunity: - Positive:
and
Management We always consider that Though the initial
water being a vital installation cost of
resource, its conservation recycling water
is essential for making the management is
earth green for the well- huge, in the long run
being, progress and benefits will definitely
prosperity of human overweight the cost.
beings. Towards
conserving environment
the following measures at
our Units are already in
force:
1. Fully automated
controlling systems
2. Flow meter
3. ETP & STP for
recycling
4. ETP water is used
only in processing
unit.
5. STP water is used in
our green
development areas to
recharge ground level
water.

3 Energy Opportunity Opportunity: - Positive

Management
Ever since we commenced The energy saving
our manufacturing activities measures result in
we concentrated on consumption of
generating renewable economized power
energy that minimizes and fuel that would
carbon pollution and has a reduce the cost of
much lower impact on our production.
environment, through green
resources such as Wind, 1. Controlling emission
Co-generation and now 2. Global warming
Solar which caters to most 3. Carbon emission
of our power requirements.
Besides we have also
established various power
saving devices at our
production facilities such as:

1. 5 star rated equipments

2. BLDC and IE3 motors
3. Separate Meters for
monitoring
4. Automated cutof f
system for boiler and
compressor.
5. Audit for purchase of
new equipments

46 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
S.No Material issue Indicate whether Rationale for identifying In case of risk, Financial implications
identified risk or the risk / opportunity approach to adapt of the risk or
opportunity (R/O) or mitigate opportunity (Indicate
positive or negative
implications)
4 Chemical Opportunity Opportunity: Our workers are Positive:
Management and Risk trained by industry
1. We are following RSL & experts to handle Effective purchase
MRSL guidelines in chemical safely as and prudent
procuring high quality well as economically. practices contributes
and low cost chemicals Also, we have put in to increased profit
in bulk quantities place safe chemical margins, improving
globally thereby disposal mechanism financial stability,
achieving economies of in order to ensure and become more
scale. environment competitive in the
2. Zero discharge of sustainability. market.
hazardous chemical.
3. Clean chain

Risk

We always adopt cautious

and efficient handling of
hazardous and toxic
chemicals in our
production.

SECTION B: MANAGEMENT AND PROCESS DISCLOSURE

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the
NGRBC Principles and Core Elements.

The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) released by the
Ministry of Corporate Af fairs has adopted nine areas of Business Responsibility. These briefly are as follows:

S.No Principles

P1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
P2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
P3 Businesses should promote the wellbeing of all employees
P4... Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
..... disadvantaged, vulnerable and marginalized
P5 Businesses should respect and promote human rights
P6 Businesses should respect, protect, and make efforts to restore the environment
P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
P8 Businesses should support inclusive growth and equitable development
P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 47

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and management processes
1. a. Whether your entity’s policy/policies
Y Y Y Y Y Y Y Y Y
cover each principle and its core
elements of the NGRBCs. (Yes/No)

b. Has the policy been approved by

Y Y Y Y Y Y Y Y Y
the Board? (Yes/No)

c. Web Link of the Policies, if available https://kprmilllimited.com/policy/

2. Whether the entity has translated the

Y Y Y Y Y Y Y Y Y
policy into procedures. (Yes / No)

3. Do the enlisted policies extend to

Y Y Y Y Y Y Y Y Y
your value chain partners? (Yes/No)

4. Name of the national and international SA OCS, FSLM, ICS, FSLM, FEM, ISO BSCI, SEDEX,
8000: BCI, ISO SQP ISO ISO 9001: GRS, WRAP,
codes/certifications/labels/ standards 2014 DISNEY 45001: 45001: 14001: RCS GOTS,
2015 Oeko-
(e.g. Forest Stewardship Council, (FAMA), 2018 2018 2015,
GMP ZDHC, Tex
Fairtrade, Rainforest Alliance, Trustea) BWE3 Standard
100
standards (e.g. SA 8000, OHSAS,
ISO, BIS) adopted by your entity and
mapped to each principle.
5. Specific commitments, goals and
targets set by the entity with
defined timelines, if any.
Though not set any such specific commitment goals,
6. Performance of the entity against we continue to adhere all the guiding principles.
the specific commitments, goals
and targets along-with reasons in case
the same are not met.

Governance, leadership and oversight

7. Statement by director responsible for The concept of Sustainable business refers to the utilisation of the available
the business responsibility report, resources in such a manner that the requirements of the future generations are
highlighting ESG related challenges, also fully taken into account. To put it in other words the finite natural resources
targets and achievements are utilised by the enterprise in a judicious manner and conserved for the future
necessities of the enterprise, society and environment. Sustainable business
8. Details of the highest authority
involves the pursuit of activities and initiative to ensure that their economic
responsible for implementation and
activities not only address the current environmental concerns apart from
oversight of the Business
making profits, but also focus on environment protection, preservation of
Responsibility
natural resources, work towards social justice and equality. With respect to the
policy (ies).
social factor, how it considers its employees and other stakeholders and
safeguard their interest. In the Governance module, the composition of Board,
conduct of the Company leadership, Internal controls, shareholders’ rights,
audit process etc. are all considered.
These sustainable practices are not new to KPR and have been practiced
ever since it started setting up its main business. Be it environment friendly
measures, promotion of employee welfare, empowering downtrodden,
following good governance etc.

48 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

9. Does the entity have a specified KPR ‘s Corporate plans and procedures have inbuilt mechanisms to achieve
Committee of the Board/ Director the above factors so as to ensure that the corporate moves towards attaining
responsible for decision making on sustainability. As KPR adopts transparency in its activities and follows good
sustainability related issues? (Yes / No). Corporate Governance practices it is easier to measure its overall fulfilment
If yes, provide details. of the business obligations towards the stakeholders in the same sanctity
as the financial statements of the business.

The Business Responsibility (BR) Committee shall comprise of the

Whole-time Director and the departmental head of the respective functions
of the Company. The Company Secretary shall also be the member of the
Committee who would advise on various legal mandates and would also act as
the Secretary of the Committee.

Name: Mr. P. SELVAKUMAR

Designation: Whole Time Director
DIN Number: 07228760

10. Details of Review of NGRBCs by the Company:

Subject for Review Indicate whether review was Frequency (Annually/

undertaken by Director / Committee Half yearly/ Quarterly/ Any other –
of the Board/Any other Committee please specify)

P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9

Performance against above

Business Responsibility Committee Annually
Policies and follow up action

Compliance with statutory requirements

of relevance to the principles, Business Responsibility Committee Annually
And rectification of any non- compliances

11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency? (Yes/No).
If yes, provide name of the agency. No

12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:

Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

The entity does not consider the Principles material to its business (Yes/No)

The entity is not at a stage where it is in a position to formulate and implement

the policies on specified principles (Yes/No)

The entity does not have the financial or/human and technical resources available Not Applicable
for the task (Yes/No)

It is planned to be done in the next financial year (Yes/No)

Any other reason (please specify)

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 49

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes
and decisions. The information sought is categorised as “Essential” and “Leadership”. While the essential indicators are expected to be
disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to
progress to a higher level in their quest to be socially, environmentally and ethically responsible.

PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent
and Accountable

Essential Indicators:

1.Percentage coverage by training and awareness programmes on any of the Principles during the financial year:

Segment Total number of training Topics / principles % age of persons in

and awareness covered under the training respective category covered
programmes held and its impact by the awareness
programmes

Board of Directors The Directors of the Company are briefed on the various sustainability initiatives of the Company
from time to time. The Directors are also updated on changes in the corporate and
industry scenario including those pertaining to statutes/legislation & economic environment
Key Management Personnel
and on matters affecting the Company, to enable them to take well informed and timely decisions.

1. Leadership Development
Employees other than 2. Workplace Stress
4 Management 100%
BoD and KMPs
3. Yoga and Meditation
4. Sports and Physical fitness

1. Safety Of ficer monitor

Programme
Workers 4 2. Fire Safety and Disaster 100%
Management Programme
3. Chemical Spillage handling
Programme
4. Mockdrill

2. Details of fines / penalties / punishment / award / compounding fees/ settlement amount paid in proceedings (by the entity or by
directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format: NIL

Monetary

NGRBC Principle Name of the Amount Brief of the Case Has an appeal
regulatory/ (in `) been preferred?
enforcement (Yes/No)
agencies/judicial
institutions

Penalty/ Fine - - - - -

Settlement - - - - -

Compounding fee - - - - -

Non Monetary

NGRBC Principle Name of the Amount Brief of the Case Has an appeal
regulatory/ (in `) been preferred?
enforcement (Yes/No)
agencies/judicial
institutions

Imprisonment - - - - -

Punishment - - - - -

50 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-monetary
action has been appealed: Not Applicable

Case Details Name of the regulatory/ enforcement agencies/ judicial institutions

- -

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the
policy.

Honesty, Integrity and Hard work always remains as factors of our success and growth. In addition to the ‘Code of Conduct’
adopted by the Company that are applicable to the Directors, Management and Employees, we have devised ‘Anti-bribery and
Corruption Policy’ for every units of the Company which are in conformity with the legal and statutory frame work on anti-bribery
and anti-corruption legislation. The Policy reflects the commitment of the Company and its management for maintaining highest
ethical standards while undertaking open and fair business practices and culture and enforcing effective systems to detect,
counter and prevent bribery and other corrupt business practices.

The policy is available on the Company's website at Microsoft Word - Policy for Anti Bribery and Anti Corruption - KPRML
https://kprmilllimited.com/file/wp-content/uploads/2023/06/ANTI-BRIBERY-AND-ANTI-CORRUPTION-POLICY.pdf

5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the
charges of bribery/corruption: NIL

FY 2022-2023 FY 2021-2022

Directors - -

KMPs - -

Employees - -

Workers - -

6. Details of complaints with regard to conflict of interest: NIL

FY 2022-2023 FY 2021-2022

Number Remarks Number Remarks

Number of complaints received in relation to issues of

- - - -
Conflict of Interest of the Directors

Number of complaints received in relation to issues of

- - - -
Conflict of Interest of the KMPs

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law
enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.

Not Applicable
Leadership Indicators

1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:

Total number of awareness Topics / principles covered %age of value chain partners covered
programmes held under the training (by value of business done with such partners)
under the awareness programmes

- - -

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BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board?

(Yes/No) - If Yes, provide details of the same.

Yes. The Directors and Senior Management are scrupulous by carefully avoiding conflicts of interest with the Company. In case
there is likely to be a conflict of interest, Senior Management personnel should make full disclosure of all facts and circumstances
thereof to the Managing Director and a prior written approval should be obtained. In case there is likely to be a conflict of interest
in the case of Managing Director, he should make full disclosure of all facts and circumstances to the Audit Committee and the
Independent Directors in the Committee should report on the same. The Chairman and any Director of the Board in like
circumstances should make full disclosures to the Board.

PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts
of product and processes to total R&D and capex investments made by the entity, respectively.

FY 2022-2023 FY 2021-2022 Details of improvements in environmental

and social impacts

R&D 100% 100% 1. Purchased briquettes to reduce CO2 emission

2. Installed sensor in dryer machine blower and
BLDC fan to reduce power consumption

Capex 2.99% 4.63% Reduced ETP waste

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
Yes
We have a dedicated cotton team to monitor its availability and its price fluctuations. The availability of exclusive personnel at the
cotton growing areas and their prudent & pragmatic cotton procurement strategies enable us to access quality cotton.
b. If yes, what percentage of inputs were sourced sustainably?
Our major raw material is cotton for which we use the best quality cotton Shankar 6. As per buyer’s requirement, sustainable
cotton (~25%) is procured from vendors who are certified to be compliant with social and environmental standards. With regard to
other inputs also we focus on procuring from such vendors.
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics
(including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
a) 100% of plastics waste including packing material are sold for recycling.
b) E-waste is sold only to authorised vendors of Pollution Control Board (Government Body).
c) All hazardous wastes are strictly sold by entering into an disposal agreement with the authorised vendors of Pollution
Control Board .
d) All the cutting wastes are segregated colour wise and sent to the recycling unit.
Other wastes are also carefully disposed without any adverse environmental impact
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection plan
is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address
the same.
Yes. The waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control
Board. They visit the factory and verify the same before according their approval.
Leadership Indicators
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing industry) or for its services
(for service industry)? If yes, provide details in the following format? - Not so far

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BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains
KPR’s Employee initiatives are Industry-acclaimed, wherein work force are recruited from rural populace and are provided with various
facilities such as Nutritious food, Hygienic and Comfortable Accommodation & Working conditions, Comprehensive Medical & Nursing
facilities, Library, Entertainment, Sports, Swimming pool, Yoga, Meditation etc. Its trendsetter Higher Education & vocational training
facilities with the tie-up of renowned Universities to the employees through excellent coaching of well - trained & experienced Teachers have
benefitted over 32,000 Employees so far and on an average 3000 Employees are availing the facility every year. Several Employees and
Aspirants continue to excel in the Government Examinations securing higher ranks and Gold Medals. In addition, KPR has also arranged
Placement for Employees based on their higher qualifications. Lauding its trendsetting HR Practices, Honorable Vice-President of India
Sri.Venkiah Naidu has honoured KPR with an award for ‘Pioneering work done ’in Indian Textile Industry.
Essential Indicators
1.a. Details of measures for the well-being of employees:

% of employees covered by

Category Total Health Accident Maternity Paternity Day Care

(A) Insurance Insurance Benefits Benefits Facilities

Number Number Number Number Number

%(B/A) %(C/A) %(D/A) %(E/A) %(F/A)
(B) (C) (D) (E) (F)

Permanent employees

Male 2,876 1,220 42.42 2,876 100 - - - - 2,635 91.62

Female 586 490 83.62 586 100 490 83.62 - - 502 85.66

Total 3,462 1,710 49.39 3,462 100 490 83.62 - - 3,137 90.61
Other than Permanent employees

Male - - - - - - - - - - -

Female - - - - - - - - - - -

Total - - - - - - - - - - -

b. Details of measures for the well-being of workers:

% of workers covered by

Category Total Health Accident Maternity Paternity Day Care

(A) Insurance Insurance Benefits Benefits Facilities

Number Number Number Number Number

%(B/A) %(C/A) %(D/A) %(E/A) %(F/A)
(B) (C) (D) (E) (F)

Permanent workers

Male 545 545 100 545 100 - - - - 545 100

Female 17,812 17,812 100 17,812 100 17,812 100 - - 17,812 100

Total 18,357 18,357 100 18,357 100 17,812 100 - - 18,357 100
Other than Permanent workers

Male - - - - - - - - - - -

Female - - - - - - - - - - -

Total - - - - - - - - - - -

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2. Details of retirement benefits:

FY 2022-2023 FY 2021-2022

No. of No. of Deducted and No. of No. of Deducted and

Benefits employees workers deposited employees workers deposited
covered as covered as with the covered as covered as with the
a % of total a % of total authority a % of total a % of total authority
employees workers (Y/N/N.A.) employees workers (Y/N/N.A.)

PF 99.33 99.93 Y 99.26 99.92 Y

Gratuity 100 100 NA 100 100 NA

ESI 49.39 100 Y 56.25 100 Y

Others – please specify - - - - - -

3. Accessibility of workplaces
Are the premises / of fices of the entity accessible to dif ferently abled employees and workers, as per the requirements of the Rights of
Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
Considering the nature of manufacturing process we have not employed any disabled people in our factory so the same is not
applicable.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the
policy.
The Company is committed for an equal opportunity to employees and values them irrespective of gender, marital status,
sexuality, race, ethnic or national origin, colour, political or religious belief, disability or age. We believe that diversity and
inclusivity at workplace is an instrument for economic growth, sustainable competitive advantage and societal progress.
The Company's recruitment and selection policy and procedure, ensure that there is no discrimination either direct or indirect.
5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Female employees covered under ESI and they can avail maternity leave and benefits as per ESI rules. However more than 95% of
such employees are unmarried.
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give
details of the mechanism in brief.

Yes/No (If Yes, then give details of the mechanism in brief)

Permanent Workers I. The Company has framed Whistle Blower Policy facilitating better Corporate Governance
Other than Permanent Workers practices which ultimately benefit all the stakeholders. Industry acclaimed HR Policy covering
different areas including grievance redressal mechanism for employees and workers are in
Permanent Employees place. Also, the Company has Standard operating procedure in place to resolve the grievances
Other than Permanent Employees of its customers and ensure customer satisfaction. (Web portal:
https://kprmilllimited.com/file/wp-content/uploads/2018/11/1-WBP-KPRML-1-GPM-
Altered.pdf
II. We have engaged an NGO who monitors advisory body for resolving employees and workers
grievances through ‘Ulula Grievances Mechanisms system’. Ulula has given a toll free number
to call and register their grievances directly at any time for effective remediation. Ulula app is
also available.
lII. The Company has placed suggestion boxes at prominent places of all units to enable the
employees and workers to report their genuine concerns.
IV. The Company has appointed Welfare Officer at all units to ensure the well-being of all
working groups.

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7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

FY 2022-2023 FY 2021-2022

Total No. of employees / % Total No. of employees / %

Category employees Workers in respective (B / A) employees/ Workers in respective (D / C)
/ workers in category, who are part workers in category, who are part
respective of association(s) respective of association(s)
category (A) or Union (B) category ( C) or Union (D)

Total Permanent Employees

- Male There is no such Association/Union as we have full-fledged Grievance Redressal Committee,

- Female Works Committee, Canteen Committee, Environment, Health and Safety Committee at all our

Total Permanent Workers units which meets every alternative months also and NGO monitored advisory body takes care

- Male of grievances, if any through ‘Ulula Grievance Mechanism System’.

- Female

8. Details of training given to employees and workers:

FY 2022-2023 FY 2021-2022

Category Total On Health and On Skill Total On Health and On Skill

(A) Safety Measures upgradation (D) Safety Measures upgradation

Number %(B/A) Number %(C/A) Number %(E/D) Number %(F/D)

(B) (C) (E) (F)

Employees

Male 2,876 - - 2,876 100 2,739 - - 2,739 100

Female 586 - - 586 100 498 - - 498 100

Total 3,462 - - 3,462 100 3,237 - - 3,237 100

Workers

Male 545 545 100 545 100 553 553 100 553 100

Female 17,812 17,812 100 17,812 100 16,729 16,729 100 16,729 100

Total 18,357 18,357 100 18,357 100 17,282 17,282 100 17,282 100

9. Details of performance and career development reviews of employees and workers:

FY 2022-2023 FY 2021-2022
Category Total (A) No. (B) % (B/A) Total (C) No. (D) % (D/C)
Employees
Male 2,876 2,876 100 2,739 2,739 100
Female 586 586 100 498 498 100
Total 3,462 3,462 100 3,237 3,237 100
Workers
Male 545 545 100 553 553 100
Female 17,812 17,812 100 16,729 16,729 100
Total 18,357 18,357 100 17,282 17,282 100

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BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
10. Health and safety management system:
a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, the coverage of
such system?
Yes. We have implemented unit wise occupational health and safety management system and also certified ISO 45001:2018 which
endeavours to facilitate safer workplace, improved employee morale and other health and safety programs our business
processes.
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?
KPR follow standardized hazard identification and risk assessment on a routine and non-routine basis.
1. Identify Hazards – Surveying the work place on a routine basis to access what is expected to cause harm
2. Evaluating Risk – evaluation when, where and how much the person is exposed to the potential hazard.
3. Deciding the control measures – Based on the evaluation we follow hierarchy of controls to be implemented
4. Documenting the findings – We document the detailed process in accessing the risk, evaluations made and conclusions drawn.
5. Review of Assessment – Reviewing the controls implemented on a regular timely basis to check if they are effective for daily
changing environment.
c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y/N)
Yes. Workers from lower to higher hierarchy can at anytime report genuine concerns to management.
d. Do the employees/workers of the entity have access to non-occupational medical and healthcare services? (Yes/No)
Yes. We have group insurance for both employees and workers.
11. Details of safety related incidents, in the following format:

Safety Incident/Number Category FY 2022-2023 FY 2021-2022

Lost Time Injury Frequency Rate (LTIFR) Employees - -

(per one million-person hours worked) Workers - -
Employees - -
Total recordable work-related injuries
Workers - -
Employees - -
No. of fatalities
Workers - -

High consequence work-related injury or ill-health Employees - -

(excluding fatalities)
Workers - -

There are ‘near miss’ incidents found in all factories. The safety officer notices the near miss and take immediate corrective action
in consultation with management to prevent them.
12. Describe the measures taken by the entity to ensure a safe and healthy work place.
We prioritize the safety of our employees above all. We have process in place to be aware of the hazards, implementing workplace
safety programs, safety training to employees, periodic health check-ups, 24 hrs first aid and ambulance facility, Nursing and
Comprehensive medical facilities, installing fire extinguishers wherever required, easy access to exits in case of emergencies.
13. Number of Complaints on the following made by employees and workers: NIL

FY 2022-2023 FY 2021-2022

Particulars Filed during Pending Remarks Filed during Pending Remarks

the year resolution the year resolution
at the end of year at the end of year
Working Conditions - - - - - -
Health & Safety - - - - - -

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14. Assessments for the year:

Particulars % of your plants and offices that were assessed (by

entity or statutory authorities or third parties)
Health and safety practices 100%
Working Conditions 100%

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns
arising from assessments of health & safety practices and working conditions.
No significant risks or incident had occurred.
Leadership Indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N):
Yes. We have unit wise mediclaim and accidental cover for our workers and employees. In the event of death of any
Worker/Employee, the same is given to their family members.
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value chain
partners.
We ensure that such dues are collected and remitted to the government by our value chain partners.
3. Provide the number of employees having suffered high consequence work- related injury / ill-health / fatalities (as reported in Q11 of
Essential Indicators above), who have been are rehabilitated and placed in suitable employment or whose family members have been
placed in suitable employment: NIL

No. of employees/workers that are rehabilitated

and placed in suitable employment or whose
Particulars Total no. of affected employees/workers
family members have been placed in
suitable employment

FY 2022-2023 FY 2021-2022 FY 2022-2023 FY 2021-2022

Employees - - - -

Workers - - - -

4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings
resulting from retirement or termination of employment? (Yes/No):
No, but we provide Career development programme to the employees who enrich their educational qualification utilizing our
higher education facilities. It enables them to uplift their carrier growth by securing placement in various reputed organization
spread over the nation.
5. Details on assessment of value chain partners:

% of value chain partners (by value of business done with such partners)
Particulars
that were assessed
Health and safety practices 100%
Working Conditions 100%

6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of health and
safety practices and working conditions of value chain partners.
Not Applicable

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PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1. Describe the processes for identifying key stakeholder groups of the entity.
The Company has mapped its internal as well as external stakeholders to deepen its insights into their needs and expectations
and to develop sustainable strategies for the short, medium and long term. Key stakeholders identified by the Company are
Shareholders/Investors, Government and Regulators, Employees, Customers and Suppliers.
2. List of stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Whether Channel of Communication Frequency of

Purpose and Scope of
identified (Email, SMS, Newspaper, Engagement
Stakeholder engagement including key
as Vulnerable Pamphlets, Advertisement, (Annual / Half Yearly
Group topics and concerns
& Marginalized Community Meetings, / Quarterly / Others –
raised during such engagement
Group (Yes/No) Notice Board, Website) other Please specify)

Discussions about top line and

Meetings, Website and Quarterly/ bottom line of the company
Investors No
Correspondence Annually performance, Dividend
declarations etc

Discussions about productivity,

Personal/group interactions,
Employees No Regularly Training, Growth and career
mails and trainings.
Development.

Discussing the business related

Suppliers No Meetings Whenever Required issues like problems in supply
chain.

Newspaper, Survey, Understanding of customer issues

Customers No Advertisement Whenever Required and their timely redressal and
and website follow up activities.

Community No We have made CSR donations for

CSR initiatives Whenever Required
Education purpose

Government/ No Industry representation Compliances of law and corporate

Whenever Required
Regulators meetings governance.

Leadership Indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if
consultation is delegated, how is feedback from such consultations provided to the Board.
The consultation with stakeholders on Economic, Environmental and Social topics has been delegated to the concerned
departments who are responsible for engaging with stakeholders on continuous basis.
2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes / No). If
so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities
of the entity.
The consultation with the stakeholders always helps the company in devising company's policy on economic, environmental,
and social topics.
3. Provide details of instances of engagement with, and actions taken to; address the concerns of vulnerable / marginalised stakeholder
groups. Nil

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PRINCIPLE 5: Businesses should respect and promote human rights
Essential Indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:

FY 2022-2023 FY 2021-2022

Total (A) No. of No. of

Category
employee/ % (B/A) employees
workers Total (C) / workers % (D/C)
covered (B) covered (D)
Employees
Permanent 3,462 3,462 100 3,237 3,237 100
Other than permanent - - - - - -
Total Employees 3,462 3,462 100 3,237 3,237 100
Workers
Permanent 18,357 18,357 100 17,282 17,282 100
Other permanent - - - - - -
Total Workers 18,357 18,357 100 17,282 17,282 100

2. Details of minimum wages paid to employees and workers:

All employees and contractors have been paid more than or equal to minimum wages in accordance with the laws of the land
where the Company operates.
3. Details of remuneration/salary/wages, in the following format

Male Female

Particulars Median remuneration/ Median remuneration/

Number salary/wages of Number salary/wages of
respective category respective category
(in `) (in `)

Board of Directors (BoD) 11 24,83,333.00 1 -

Key Managerial Personnel 2 2,31,642.00 - -

Employees other than BoD and KMP 2,879 20,500.00 596 14,000

Workers 621 16,250.00 18,266 11,466

Note: All median salaries mentioned above are on monthly basis.

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed
to by the business? (Yes/No)-
Yes
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
I. We have established a Grievance redressal Committee which periodically reviews the employees concerns.
II. We have installed suggestion box in prominent work places which is taken care by concerned department and timely
remedial measures are taken.
III. Toll free numbers are displayed everywhere in workplace, which enables the employees to redress their grievances.
IV. We have also set up a works committee which have framed policies favouring labour welfare.
V. We have set up notice board to display the upcoming events for Employees and Workers at all units.

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6. Number of Complaints on the following made by employees and workers: NIL
FY 2022-2023 FY 2021-2022
Pending
Particulars Filed Pending
Filed during resolution at
Remarks during resolution at Remarks
the year the end of
the year the end of year
year

Sexual
- - - - - -
Harassment
Discrimination at
- - - - - -
workplace

Child Labour - - - - - -

Forced
Labour/Involuntary - - - - - -
Labour

Wages - - - - - -

Other human rights

- - - - - -
related issues

7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

We have specifically set up an Internal Complaints Committee which looks after the instances of harassment and discrimination
at the work place. Till date zero Complaints were received from our workers.

8. Do human rights requirements form part of your business agreements and contracts? (Yes/No) Yes

9. Assessments for the year:

% of your plants and offices that were assessed
Particulars (by entity or statutory authorities or third parties)
Child labour 100
Forced/involuntary labour 100
Sexual harassment 100
Discrimination at workplace 100
Wages 100
Others – please specify NA

10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at
Question 9 above.
No such instances of complaints received.
Leadership Indicators
1. Details of a business process being modified / introduced as a result of addressing human rights grievances / complaints.
Not applicable as no such modifications has been introduced in the current reporting year.
2. Details of the scope and coverage of any Human rights due-diligence conducted.
The Company's Human rights policy recognizes the following priority issues:
i. Our premises is FSLM and SA8000:2014, BSCI, WRAP, ETI, ICS Complied, whereby we are duly audited and certified by the
concerned authorities. The results are transparent and uploaded in their website.
ii. We have our own code of conduct. We are zero tolerant to the child forced or compulsory labour in operations and supply chains.
iii. We have human rights policy. We provide equal opportunity to all employees and also provide opportunities for all employees to express
concerns and seek redressal.

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3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities
Act, 2016?
Yes
4. Details on assessment of value chain partners
Nil
5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at
Question 4 above.
Not Applicable

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
Essential Indicators
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

Particulars FY 2022-2023 FY 2021-2022

Total electricity consumption (A) (TJ) 693.65 642.06

Total fuel consumption (B) (TJ) 2.41 2.32
Energy consumption through other sources (C) 373.54 381.32
Total energy consumption (A+B+C) (TJ) 1069.60 1025.70
Energy intensity per rupee of turnover 0 0
(Total energy consumption/ turnover in rupees)

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. Yes. Please refer details given in the next para.
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT)
Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets
have not been achieved, provide the remedial action taken, if any.
Yes. The Arasur and Karumathampatti units are under Performance, Achieve and Trade (PAT) Scheme of the Government of India.
The reports are submitted to Bureau of Energy Efficiency. We are conducting Factories Environmental Module (FEM) every year in
all factories and the results are also verified by certified third parties external agencies such as INTER TEK, BV, SITRA, etc. The
details are also available in HIGG INDEX Website.

3. Provide details of the following disclosures related to water, in the following format:

Parameter FY 2022-2023 FY 2021-2022

Water withdrawal by source (in kilolitres)
(i) Surface water 1,00,694.00 1,10,790.00
(ii) Groundwater 10,05,401.94 9,31,048.37
(iii) Third party water 4,05,599.18 4,26,027.97
(iv) Seawater / desalinated water - -
(v) Others - -
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 15,11,695.12 14,67,866.34
Total volume of water consumption (in kilolitres) 15,11,695.12 14,67,866.34
Water intensity per rupee of turnover (Water consumed / turnover) 0 0
Water intensity (optional) - -

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4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.
Yes. The Company’s manufacturing Units are compliant with Zero Liquid Discharge.
KPR has installed an Effluent Treatment Plant (ETP) with capabilities to treat 3 million liters/day of waste water generated from our dyeing
process, which enables the company to reuse 100% of the treated waste water for the process again. On-site Zero Liquid Discharge
treatment system treats and recovers almost all waste water such that the only water lost is through evaporation or as moisture in the sludge
from treatment plant operations.
Through these measures, KPR is committed to protecting the fragile eco system of the planet, which is our gift to our children and our future.
Our ETP stands tall as a model recycling facility in this part of the world.

5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format: Details in respect of Processing
Unit
Parameter Please specify unit FY 2022-2023

NOx Tonnes/Year 3.285

SOx Tonnes/Year 2.555

Particulate matter (PM) Tonnes/Year 4.745
Persistent organic pollutants (POP) Tonnes/Year -
Volatile organic compounds (VOC) Tonnes/Year BDL (DL-0.001)
Hazardous air pollutants (HAP) Tonnes/Year BDL (DL-0.001)
Others - Carbon Monoxide (CO) Tonnes/Year 2.555

Note : BDL-Below Detectable Limit DL- Detectable Limit

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency. Yes. The external agency is M/s. Greenlink Analytical and Research Laboratory (India) Private Ltd.

6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format: Details in respect of
Processing Unit

Parameter Please specify unit FY 2022-2023 FY 2021-2022

Total Scope 1 emissions (Break-up of the GHG Metric tonnes of Co2 88234.74 MT of Co2e 79531.41 MT of Co2e
into Co2, CH4, N2O, HFCs, PFCs, SF6, NF3, equivalent
if available)
Total Scope 2 emissions (Break-up of the GHG
into Co2,CH4, N2O, HFCs, PFCs, SF6, NF3, if Metric tonnes of Co2 11774.29 MT of Co2e 4995.54 MT of Co2e
available) equivalent

Total Scope 1 and Scope 2 emissions per Metric tonnes of Co2

rupee of turnover Equivalent per rupee 2.110 1.783
of turnover
Total Scope 1 and Scope 2 emission intensity
(optional) - - -

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency. No.

7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.
Yes, we have already completed several projects relating to GHG emission and in order to enhance our efforts towards the same
we have devised short term and long term plans, details of which are available in our web link

https://kprmilllimited.com/file/wp-content/uploads/2023/06/GHG-EMISSION-CONTROL-PLAN.pdf

https://kprmilllimited.com/file/wp-content/uploads/2023/06/GHG-EMISSION-CONTROL-PROCEDURE.pdf

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8. Provide details related to waste management by the entity, in the following format:

Parameter FY 2022-2023 FY 2021-2022

Total Waste generated (in kgs)

Plastic waste (A) 98,225 1,23,709
E-waste (B) - -
Bio-medical waste (C) - -
Construction and demolition waste (D) - -
Battery waste (E) - -
Radioactive waste (F) - -
Other Hazardous waste. Please specify, if any. (G)
Used oil, Oil filter sludge, chemical swiping, Oil cloth, 83,425 74,251
Chemical can
Other Non-hazardous waste generated (H). Please
specify, if any. (Break-up by composition 17,97,434.40 14,39,767.28
i.e. by materials relevant to the sector)
Total (A+B + C + D + E + F + G + H) 19,79,084.40 16,37,727.28

For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)

Category of waste Waste Recovered (in metric tonnes)

(i) Recycled
(ii) Re-used All the cutting wastes are segregated by colour wise
(iii) Other recovery operations and sent to the recycling unit.
Total

For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)

Category of Waste Waste Disposed (in metric tonnes)

(i) Incineration
(ii) Landfilling
Nil
(iii) Other disposal operations
Total

9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company
to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.
KPR has a standardised waste management system which includes Collection, segregation of hazardous and non-hazardous
wastes, Recycling, Treatment and disposal. We have also adopted GRS (Global Recycle Standard), which enabled us to recycle
and reuse wherever possible.
With respect to Hazardous and Toxic chemical usage, we have ZDHC Management in place (Zero Discharge of Hazardous
Chemicals), which enables us to reduce the amount of hazardous chemicals that are discharged into water.
10. If the entity has operations/of fices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere
reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required,
please specify details in the following format: Not Applicable

Whether the conditions of environmental approval /

S.No Location of clearance are being complied with? (Y/N) If no, the
Type of operations
operations/offices No reasons thereof and corrective action taken, if any.
- - - -
- - - -

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BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial
year:

Whether Results
conducted by communicated
Name and brief EIA Notification
Date independent in public Relevant Web link
details of project No external agency domain
(Yes / No) (Yes / No)

https://certcheck.ukas.com/certification/3a
ISO 14001:2015 51_SO804E 20 JAN 2016 YES YES 2d8681-7030-583b-8f5c-1ded54a34809

S.O.804(E)
HIGG INDEX dated 25 APR 2023 YES YES https://kprmilllimited.com/certifications/
14.03.2017

We are proud to report that KPR is ranked among the’ India’s Highest Top Scorer in HIGG INDEX VFEM’. The scores awarded by various
Third Party Certifying Agencies, as indicated below, stands as a Testimony to our remarkable achievement and our great concern for eco-
friendly environment. We remain strongly focussed on its continuous improvement, by constantly assessing and improving processes and
systems, to achieve long-term sustainability goals.

KPR MILL LIMITED HIGG INDEX VFEM SCORE

Year Processing Unit Arasur Garment Thekkalur Garment - 1 Thekkalur Garment - 2

2020 73.2 61.1 47.4 67.2

2021 84.6 71.6 64.7 69.1

2022 84.8 75 73.6 74.8

12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and Control
of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details
of all such non-compliances, in the following format: YES
Leadership Indicators
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources, in the following
format:

Parameter FY 2022-23 FY 2021-22

From renewable sources

Total electricity consumption (A) (TJ) 373.54 381.32

Total fuel consumption (B) (TJ) NIL NIL
Energy consumption through other sources (C) (TJ) NIL NIL
Total energy consumed from renewable sources (A+B+C) (TJ) 373.54 381.32
From non-renewable sources

Total electricity consumption (D)(TJ) 693.65 642.06

Total fuel consumption (E) (TJ) 2.41 2.32
Energy consumption through other sources (F) (TJ) NIL NIL
Total energy consumed from non-renewable sources (D+E+F) (TJ) 696.05 644.38

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
Yes. The Details are mentioned in point 2 of Essential Indicators in Principal 6.

64 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
2. Provide the following details related to water discharged:

Parameter FY 2022-23 FY 2021-22

Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water Not applicable Not applicable

- No treatment
- With treatment-please specify level of treatment
(ii) To Groundwater Not applicable Not applicable
- No treatment
- With treatment-please specify level of treatment
(iii) To Seawater Not applicable Not applicable
- No treatment
- With treatment-please specify level of treatment
(iv) Sent to third- parties Not applicable Not applicable
- No treatment
- With treatment-please specify level of treatment
(v) Others Not applicable Not applicable
- No treatment
- With treatment-please specify level of treatment
Total water discharged (in kiloliters) Not applicable Not applicable

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
No

3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): Not applicable
For each facility / plant located in areas of water stress, provide the following information:
(i) Name of the area - Not applicable
(ii) Nature of operations - Not applicable
(iii) Water withdrawal, consumption and discharge in the following format:

Parameter FY 2022-23 FY 2021-22

Water withdrawal by source (in kilolitres) Not applicable Not applicable
(i) Surface water Not applicable Not applicable
(ii) Groundwater Not applicable Not applicable
(iii) Third party water Not applicable Not applicable
(iv) Seawater / desalinated water Not applicable Not applicable
(v) Others Not applicable Not applicable
Total volume of water withdrawal (in kilolitres) Not applicable Not applicable
Total volume of water consumption (in kilolitres) Not applicable Not applicable
Water intensity per rupee of turnover (Water consumed / turnover) Not applicable Not applicable
Water intensity (optional) – the relevant metric may be selected by the entity Not applicable Not applicable

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 65

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

Water discharge by destination and level of treatment (in kilolitres) FY 2022-23 FY 2021-22
(i) To Surface water Not applicable Not applicable

- No treatment
- With treatment-please specify level of treatment
(ii) To Groundwater Not applicable Not applicable
- No treatment
- With treatment-please specify level of treatment
(iii) To Seawater Not applicable Not applicable
- No treatment
- With treatment-please specify level of treatment
(iv) Sent to third- parties Not applicable Not applicable
- No treatment
- With treatment-please specify level of treatment
(v) Others Not applicable Not applicable
- No treatment
- With treatment-please specify level of treatment
Total water discharged (in kiloliters) Not applicable Not applicable

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
No
4. Please provide details of total Scope 3 emissions & its intensity, in the following format:

Parameter Unit FY 2022-23 FY 2021-22

Total Scope 3 emissions

Metric tonnes
(Break-up of the GHG into CO2, CH4, N2O, Not applicable Not applicable
of CO2 equivalent
HFCs, PFCs, SF6, NF3, if available)
Total Scope 3 emissions per rupee of
Not applicable Not applicable
turnover
Total Scope 3 emission intensity
(optional) – the relevant metric may be selected Not applicable Not applicable
by the entity

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency.
No

5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details of significant
direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities.
Not applicable

6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or
reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same as well as outcome of such
initiatives :
Please refer our measures indicated under para 7 of Essential Indicators in Principle 6.

66 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Yes
The Company has devised Business Continuity and Disaster Management plan for each units of the Company to be implemented
in the event of a sudden natural calamity or emergency situations such as flood, fire or sabotage in the respective locations. The
objective of the disaster plan is to educate and follow, how to control disaster, combat fire, rescue people, save life of those not
only inside the factory but also neighbouring area, etc.
It also lays down the procedure for preparing and responding to a potential environmental, occupational, health and safety
emergency or incident, accident including spills and releases.

8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation
measures have been taken by the entity in this regard.
NIL

9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.
NIL

PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent
Essential Indicators
1. a. Number of affiliations with trade and industry chambers/ associations - 11 chambers/ associations
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the entity is
a member of/ affiliated to.

S. No Reach of trade and industry chambers/

Name of the trade and industry chambers/ associations
associations (State/National/Global)
1 The Southern India Mills Association National

2 Tamilnadu Spinning Mill Association State

3 Tirupur Exporters Association State

4 Indian Wind Power Association National

5 Indian Cotton Federation National

6 The Indian Chamber Of Commerce And Industry, Coimbatore National

7 Tamilnadu Electricity Consumers Association State

8 Cotton Made in Africa Global

9 The Cotton Textiles Export Promotion Council National

10 Better Cotton Initiative Global

11 Confederation of Indian Textile Industry National

2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on
adverse orders from regulatory authorities.

Name of authority Brief of the case Corrective action taken

- - -

3. Details of public policy positions advocated by the entity: NIL

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 67

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
PRINCIPLE 8: Businesses should promote inclusive growth and equitable development

Essential Indicators

1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial
year.

Whether
Results
SIA conducted
Name and brief Date of communicated
Notification by Independent Relevant web link
details of project Notification in public domain
no. external agency
(Yes / No)
(Yes / No)

SA 8000:2014 SIA G.S.R. 574(E) Yes No -

8th August, 2014
https://my.wrapcompliance.org/Pages
WRAP Yes Yes /Facility-
Dashboard.aspx?SF_ID=10369&Sou
rceURL=https%3A%2F2Fmy.wrapco
mpliance.org%2FPages%2FMy-
Dashboard.aspx

BSCI Yes No -

ICS Yes No -

FSLM/SLCP Yes Yes https://slcpgateway.sustainabilitymap.

org/showassessment/PRJ217285?tok
en=eyJhbGciOiJIUzI1NiIsInR5cCI6Ikp
XVCJ9.eyJwcm9qZWN0X2lkIjoiUFJK
MjE3Mjg1IiwiY29tcGFueSI6IkFINTA0
NjI2IiwiaWF0IjoxNjg3MzU1NDIwLCJl
eHAiOjE2ODgyMTk0MjB9.5JqjalIEFI
myfdPndebJrmxkpx4rYscGDkxYUnVfj
iI

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the
following format: Not Applicable

No. of project Amount paid

Name of project for which % of PAFs
S.No State District Affected families to PAFs in the
R&R is ongoing covered by R&R
(PAFs) FY (in INR)

- - - - - - -

3. Describe the mechanisms to receive and redress grievances of the community.

The Company proactively meets the community representatives. It has a designated team at each manufacturing location. Each
need is noted, analysed and a feasible solution is implemented.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

Particulars FY 2022-2023 FY 2021-2022

Directly sourced from MSMEs/ small
1.55% 2.18%
producers

Sourced directly from within the district and

32.85% 33.64%
neighbouring districts

68 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
Leadership Indicators

1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question
1 of Essential Indicators above):

Details of negative social impact identified Corrective action taken

Nil NA

2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by
government bodies:
Not Applicable as no CSR projects were undertaken in designated aspirational districts as identified by government bodies

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized
/vulnerable groups?
The company does not have any preferential procurement policy at present.
(b) From which marginalized /vulnerable groups do you procure?
Not Applicable
(c) What percentage of total procurement (by value) does it constitute?
Not Applicable

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current financial year),
based on traditional knowledge:
Not Applicable, no benefits derived and shared from the intellectual properties owned or acquired

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of
traditional knowledge is involved.
Not Applicable

6. Details of beneficiaries of CSR Projects

For details refer to Annexure to Director’s Report 2022-23 (Annual Report on Corporate Social Responsibilities (CSR) Activities
for Financial Year 2022-23)

PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner

Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Our Organisation is a consumer centric and we believe our customers are our King. There is growing relevance of excellence in
customer service to propel growth considering the intense competition. We have a proper and effective redressal mechanism for
customers. The broad principles of our customer complaint resolution mechanism are as under.
• Customers must be served with courtesy, respect and understanding at all times.
• Customers must be treated with fairness - both actual and perceived.
• There is a structured and well publicized mechanism for customers to ventilate grievances.
• Complaints are addressed within a reasonable time frame and to the satisfaction of the customers.
• Strategies are in place improve customer service on a continuous basis to minimize the scope for grievances.
• Employees are sensitized to the importance of customer acquisition and retention.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 69

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:

Particulars as a percentage to total turnover

Environmental and social parameters relevant to the product 100%

(For all garments sold)
Safe and responsible usage

Recycling and/or safe disposal

3. Number of consumer complaints in respect of the following:

FY 2022-2023 FY 2021-2022

Particulars Received Pending Received Pending

during resolution at Remarks during resolution at Remarks
the year end of year the year end of year

Data privacy - - - - - -

Advertising - - - - - -

Cyber-security - - - - - -

Delivery of essential services - - - - - -

Restrictive Trade Practices - - - - - -

Unfair Trade Practices - - - - - -

Other - - - - - -

4.Details of instances of product recalls on account of safety issues:

Particulars Number Reasons for recall

Voluntary recalls
There were no instances of Product recall during the year
Forced recalls

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of
the policy.
Yes. The Risk management Policy is available on the Company’s website at www.kprmilllimited.com

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber
security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on
safety of products / services.
During the year, there were no instances of issues in the above mentioned areas.

70 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
Leadership Indicators

1. Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available)
The information on company's products can be accessed through company's website i.e., www.kprmilllimited.com

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
Our product tag contains the information on the safe and responsible usage of the products such as Wash care instructions,
product features, Customer care details etc. We mention these instructions on all of our apparel products.

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

Not applicable

4. Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/Not Applicable) If
yes, provide details in brief.
The company display only mandated product information on carton boxes.

5. Did your entity carry out any survey with regard to consumer satisfaction relating to the major products / services of the entity, significant
locations of operation of the entity or the entity as a whole? (Yes/No)
No

6. Provide the following information relating to data breaches:

(a) Number of instances of data breaches along-with impact
During the financial year 2022-23, no data breaches regarding customer privacy from outside parties etc. has happened.
(b) Percentage of data breaches involving personally identifiable information of customers: 0%

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 71

INDEPENDENT AUDITORS’ REPORT
To the Members of K.P.R. Mill Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of K.P.R. Mill Limited (the “Company”) which comprise the standalone balance sheet
as at 31 March 2023, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of
changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements,
including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements
give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2023, and its profit and other
comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities
under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India
together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and
the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone
financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial
statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

72 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

INDEPENDENT AUDITORS’ REPORT
Revenue recognition
See notes 3 and 27 to the standalone financial statements

The key audit matter How the matter was addressed in our audit

The Company’s revenue is derived primarily from sale of goods. In view of the significance of the matter we applied the following
Revenue from sale of goods is recognised when control of the audit procedures in this area, among others to obtain sufficient
products being sold is transferred to the customer and there are appropriate audit evidence:
no longer any unfulfilled performance obligations. The
• Assessing the appropriateness of the accounting policy for
performance obligations in the contracts are fulfilled at the time of
revenue recognition with relevant accounting standards;
dispatch, delivery or upon formal customer acceptance
depending on customer terms. • Evaluating the design and implementation of the Company’s
key internal financial controls in relation to timing of revenue
recognition and tested the operating effectiveness of such
Inappropriate assessment could lead to risk of revenue being controls for selected samples;
recognized before transfer of control.
• Performing detailed testing by selecting samples of revenue
transactions recorded during the year and around the year
end date using statistical sampling. We assessed fulfilment of
In view of the above and since revenue is a key performance
performance obligations during the year by verifying the
indicator of the Company, we have identified timing of revenue
underlying documents. These documents included contract
recognition from sale of goods as a key audit matter.
specifying terms of sale, invoices, goods dispatch notes,
customer acceptances and shipping documents;

• Testing, on a sample basis using specified risk based criteria,

journal entries affecting revenue recognised during the year
to identify unusual items.

Valuation of Inventories
See notes 3 and 9 to the standalone financial statements

The key audit matter How the matter was addressed in our audit

The Company is an integrated textile manufacturer and the In view of the significance of the matter we applied the following
inventory primarily comprises of yarn, fabric and garments. audit procedures in this area, among others to obtain sufficient
Inventories are valued at lower of cost and net realisable value. appropriate audit evidence:
The Company maintains its inventory levels based on forecast
• Assessing the appropriateness of the accounting policy for
demand and expected future selling prices. There is a risk of
inventories with relevant accounting standards;
inventories being measured at values which are not
representative of the lower of costs and net realisable value • Evaluating the design and implementation of the Company’s
(‘NRV’). key internal financial controls over valuation of inventories
and testing the operating effectiveness of such controls for
selected samples;
The Company exercises high degree of judgment in assessing
• Observing the physical verification of inventory on a sample
the NRV of the inventories on account of estimation of future
basis. In this regard, we have considered the physical
market and economic conditions. The carrying value of
condition of inventory by way of obsolescence or wear and
inventories is material in the context of total assets of the
tear or efflux of time, wherever relevant and applicable, in
Company. We identified the valuation of inventories as a key
determining the valuation of such inventory.
audit matter.
• For NRV testing, selecting inventory items, on a sample basis
at reporting date and compared their carrying value to their
subsequent selling prices as indicated in sales invoices
subsequent to the reporting date.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 73

INDEPENDENT AUDITORS’ REPORT
Information Other than the Financial Statements and and completeness of the accounting records, relevant to the
Auditor’s Report Thereon preparation and presentation of the standalone financial

The Company’s Management and Board of Directors are statements that give a true and fair view and are free from material

responsible for the other information. The other information misstatement, whether due to fraud or error.

comprises the reports such as Board’s report, Management In preparing the standalone financial statements, the
Discussion and Analysis and Corporate Governance Report, but Management and Board of Directors are responsible for
does not include the financial statements and auditor’s report assessing the Company’s ability to continue as a going concern,
thereon, which we obtained prior to the date of this auditor’s disclosing, as applicable, matters related to going concern and
report, and the remaining sections of Annual report, which are using the going concern basis of accounting unless the Board of
expected to be made available to us after that date. Directors either intends to liquidate the Company or to cease

Our opinion on the standalone financial statements does not operations, or has no realistic alternative but to do so.

cover the other information and we do not and will not express any The Board of Directors is also responsible for overseeing the
form of assurance conclusion thereon. Company’s financial reporting process.

In connection with our audit of the standalone financial

statements, our responsibility is to read the other information Auditor’s Responsibilities for the Audit of the Standalone
identified above and, in doing so, consider whether the other Financial Statements
information is materially inconsistent with the standalone financial
Our objectives are to obtain reasonable assurance about whether
statements or our knowledge obtained in the audit, or otherwise
the standalone financial statements as a whole are free from
appears to be materially misstated.
material misstatement, whether due to fraud or error, and to issue
If, based on the work we have performed on the other information an auditor’s report that includes our opinion. Reasonable
that we obtained prior to the date of this auditor’s report, we assurance is a high level of assurance, but is not a guarantee that
conclude that there is a material misstatement of this other an audit conducted in accordance with SAs will always detect a
information, we are required to report that fact. We have nothing to material misstatement when it exists. Misstatements can arise
report in this regard. from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the

Management's and Board of Directors' Responsibilities for economic decisions of users taken on the basis of these

the Standalone Financial Statements standalone financial statements.

The Company’s Management and Board of Directors are As part of an audit in accordance with SAs, we exercise

responsible for the matters stated in Section 134(5) of the Act with professional judgment and maintain professional skepticism

respect to the preparation of these standalone financial throughout the audit. We also:

statements that give a true and fair view of the state of affairs, • Identify and assess the risks of material misstatement of the
profit/ loss and other comprehensive income, changes in equity standalone financial statements, whether due to fraud or
and cash flows of the Company in accordance with the accounting error, design and perform audit procedures responsive to
principles generally accepted in India, including the Indian those risks, and obtain audit evidence that is sufficient and
Accounting Standards (Ind AS) specified under Section 133 of the appropriate to provide a basis for our opinion. The risk of not
Act. This responsibility also includes maintenance of adequate detecting a material misstatement resulting from fraud is
accounting records in accordance with the provisions of the Act for higher than for one resulting from error, as fraud may involve
safeguarding of the assets of the Company and for preventing and collusion, forgery, intentional omissions, misrepresentations,
detecting frauds and other irregularities; selection and application or the override of internal control.
of appropriate accounting policies; making judgments and • Obtain an understanding of internal control relevant to the
estimates that are reasonable and prudent; and design, audit in order to design audit procedures that are appropriate
implementation and maintenance of adequate internal financial in the circumstances. Under Section 143(3)(i) of the Act, we
controls, that were operating effectively for ensuring the accuracy are also responsible for expressing our opinion on whether

74 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

INDEPENDENT AUDITORS’ REPORT
the company has adequate internal financial controls with about the matter or when, in extremely rare circumstances,
reference to financial statements in place and the operating we determine that a matter should not be communicated in
effectiveness of such controls. our report because the adverse consequences of doing so

• Evaluate the appropriateness of accounting policies used would reasonably be expected to outweigh the public interest

and the reasonableness of accounting estimates and related benefits of such communication.

disclosures made by the Management and Board of

Directors. Report on Other Legal and Regulatory Requirements
• Conclude on the appropriateness of the Management and 1. As required by the Companies (Auditor’s Report) Order,
Board of Directors use of the going concern basis of 2020 (“the Order”) issued by the Central Government of India
accounting in preparation of standalone financial statements in terms of Section 143(11) of the Act, we give in the
and, based on the audit evidence obtained, whether a “Annexure A” a statement on the matters specified in
material uncertainty exists related to events or conditions that paragraphs 3 and 4 of the Order, to the extent applicable.
may cast significant doubt on the Company’s ability to
2 A. As required by Section 143(3) of the Act, we report that:
continue as a going concern. If we conclude that a material
a. We have sought and obtained all the information and
uncertainty exists, we are required to draw attention in our
explanations which to the best of our knowledge and belief
auditor’s report to the related disclosures in the standalone
were necessary for the purposes of our audit.
financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit b. In our opinion, proper books of account as required by law

evidence obtained up to the date of our auditor’s report. have been kept by the Company so far as it appears from our

However, future events or conditions may cause the examination of those books.

Company to cease to continue as a going concern. c. The standalone balance sheet, the standalone statement of

• Evaluate the overall presentation, structure and content of profit and loss (including other comprehensive income), the

the standalone financial statements, including the standalone statement of changes in equity and the

disclosures, and whether the standalone financial standalone statement of cash flows dealt with by this Report

statements represent the underlying transactions and events are in agreement with the books of accounts.

in a manner that achieves fair presentation. d. In our opinion, the aforesaid standalone financial statements

We communicate with those charged with governance comply with the Ind AS specified under Section 133 of the Act.

regarding, among other matters, the planned scope and e. On the basis of the written representations received from the
timing of the audit and significant audit findings, including any directors as on 01 April 2023 taken on record by the Board of
significant deficiencies in internal control that we identify Directors, none of the directors is disqualified as on 31 March
during our audit. 2023 from being appointed as a director in terms of Section

We also provide those charged with governance with a 164(2) of the Act.

statement that we have complied with relevant ethical f. With respect to the adequacy of the internal financial controls
requirements regarding independence, and to communicate with reference to financial statements of the Company and
with them all relationships and other matters that may the operating effectiveness of such controls, refer to our
reasonably be thought to bear on our independence, and separate Report in “Annexure B”.
where applicable, related safeguards. B. With respect to the other matters to be included in the
From the matters communicated with those charged with Auditor’s Report in accordance with Rule 11 of the
governance, we determine those matters that were of most Companies (Audit and Auditors) Rules, 2014, in our opinion
significance in the audit of the standalone financial and to the best of our information and according to the
statements of the current period and are therefore the key explanations given to us:
audit matters. We describe these matters in our auditor’s a. The Company has disclosed the impact of pending litigations
report unless law or regulation precludes public disclosure as at 31 March 2023 on its financial position in its standalone

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 75

INDEPENDENT AUDITORS’ REPORT
financial statements - Refer note 36 to the standalone accordance with Section 123 of the Act to the extent it applies
financial statements. to payment of dividend.

b. The Company did not have any long-term contracts including As stated in note 49 to the standalone financial statements,
derivative contracts for which there were any material the Board of Directors of the Company have proposed final
foreseeable losses. dividend for the year which is subject to the approval of the

c. There has been no delay in transferring amounts, required to members at the ensuing Annual General Meeting. The

be transferred, to the Investor Education and Protection Fund dividend declared is in accordance with Section 123 of the

by the Company. Act to the extent it applies to declaration of dividend.

d (i) The management has represented that, to the best of its f. As proviso to rule 3(1) of the Companies (Accounts) Rules,

knowledge and belief, as disclosed in the note 50 to the 2014 is applicable for the Company only with effect from 1

standalone financial statements, no funds have been April 2023, reporting under Rule 11(g) of the Companies

advanced or loaned or invested (either from borrowed funds (Audit and Auditors) Rules, 2014 is not applicable.

or share premium or any other sources or kind of funds) by C. With respect to the matter to be included in the Auditor’s
the Company to or in any other person(s) or entity(ies), Report under Section 197(16) of the Act:
including foreign entities (“Intermediaries”), with the In our opinion and according to the information and
understanding, whether recorded in writing or otherwise, that explanations given to us, the remuneration paid by the
the Intermediary shall directly or indirectly lend or invest in Company to its directors during the current year is in
other persons or entities identified in any manner whatsoever accordance with the provisions of Section 197 of the Act. The
by or on behalf of the Company (“Ultimate Beneficiaries”) or remuneration paid to any director is not in excess of the limit
provide any guarantee, security or the like on behalf of the laid down under Section 197 of the Act. The Ministry of
Ultimate Beneficiaries. Corporate Affairs has not prescribed other details under
(ii) The management has represented that, to the best of its Section 197(16) of the Act which are required to be
knowledge and belief, as disclosed in the note 50 to the commented upon by us
standalone financial statements, no funds have been
received by the Company from any person(s) or entity(ies), For B S R & Co. LLP
including foreign entities (“Funding Parties”), with the Chartered Accountants
Firm's Registration No. 101248W/W-100022
understanding, whether recorded in writing or otherwise, that
the Company shall directly or indirectly, lend or invest in other
K Sudhakar
persons or entities identified in any manner whatsoever by or
Partner
on behalf of the Funding Parties (“Ultimate Beneficiaries”) or Place : Coimbatore Membership No. 214150
provide any guarantee, security or the like on behalf of the Date : 03 May 2023 ICAI UDIN: 23214150BGXPFY6349
Ultimate Beneficiaries.

(iii) Based on the audit procedures performed that have

been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has
caused us to believe that the representations under sub-
clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii)
above, contain any material misstatement.

e. The interim dividend declared and paid by the Company

during the year and until the date of this audit report is in
compliance accordance with Section 123 of the Act.

The final dividend paid by the Company during the year, in

respect of the same declared for the previous year, is in

76 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

INDEPENDENT AUDITORS’ REPORT

Annexure A to the Independent Auditor’s Report on the Standalone Financial Statements of K.P.R. Mill Limited for the year ended
31 March 2023
(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property,
Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the
Company has a regular programme of physical verification of its Property, Plant and Equipment by which all property, plant and
equipment are verified in a phased manner over a period of three years. In accordance with this programme, certain property,
plant and equipment were verified during the year. In our opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the
title deeds of immovable properties (other than immovable properties where the Company is the lessee and the leases
agreements are duly executed in favour of the lessee) disclosed in the standalone financial statements are held in the name of the
Company, except for the following which are not held in the name of the Company:

Description Gross Held in the Whether Period held- Reason for not
of property carrying name of promoter, indicate range, being held in the name
value director or where of the Company.
(` in lakhs) their relative appropriate Also indicate if in dispute
or employee

Freehold land located 66.76 K.P.R. NO April 1, 2005 The title deeds are in the name of
at Kittampalayam and Spinning Mill K.P.R. Spinning Mill Private Limited,
Private Limited
Tirunelveli admeasuring erstwhile Company that was merged
19 acres and 8 acres with the Company under section 391
respectively to 394 of the Companies Act, 1956 in
terms of the approval of Honourable
High Court(s) of judicature.

Freehold land located 64.47 K.P.R. Mill NO April 1, 2005 The title deeds are in the name of
at Arasur, Bogampatti, Private Limited K.P.R. Mill Private Limited, erstwhile
Thenkasi, Tirunelveli Company that was merged with the
admeasuring 40.65 Company under section 391 to 394
acres, 18.20 acres, of the Companies Act, 1956 in terms
57.63 acres and 6 of the approval of Honourable High
acres respectively Court(s) of judicature.

Freehold land located at 9.61 K.P.R. NO April 1, 2005 The title deeds are in the name of
Tirunelveli admeasuring Knits K.P.R. Knits, erstwhile Company
2 acres that was acquired through out-right
purchase.

Immovable properties whose title deeds have been charged as security for loans are held in the name of the Company based on the
confirmations directly received by us from lenders.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 77

 ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

INDEPENDENT AUDITORS’ REPORT

(d) According to the information and explanations given to us and on (b) According to the information and explanations given to us
the basis of our examination of the records of the Company, the and based on the audit procedures conducted by us, in our
Company has not revalued its Property, Plant and Equipment opinion the investments made, guarantees provided,
(including Right-of-use assets) or intangible assets or both during security given during the year and the terms and
the year. conditions of the grant of loans and advances in the nature
(e) According to the information and explanations given to us and on of loans and guarantees provided during the year are,
the basis of our examination of the records of the Company, there prima facie, not prejudicial to the interest of the Company.
are no proceedings initiated or pending against the Company for (c) According to the information and explanations given to us
holding any benami property under the Prohibition of Benami
and on the basis of our examination of the records of the
Property Transactions Act, 1988 and rules made thereunder.
Company, in the case of loans given, in our opinion the
(ii) (a)The inventory, except goods-in-transit, has been physically repayment of principal and payment of interest has been
verified by the management during the year. In our opinion, the stipulated and the repayments or receipts have been
frequency of such verification is reasonable and procedures and
regular, where applicable. Also refer note 48 to the
coverage as followed by management were appropriate. No
standalone financial statements. Further, the Company
discrepancies were noticed on verification between the physical
has not given any advance in the nature of loan to any
stocks and the book records that were more than 10% in the
party during the year.
aggregate of each class of inventory.
(d) According to the information and explanations given to us
(b) According to the information and explanations given to us and on
and on the basis of our examination of the records of the
the basis of our examination of the records of the Company, the
Company has been sanctioned working capital limits in excess of Company, there is no overdue amount for more than ninety
five crore rupees, in aggregate, from banks or financial days in respect of loans given. Also refer note 48 to the
institutions on the basis of security of current assets. In our standalone financial statements. Further, the Company
opinion, the quarterly returns or statements filed by the Company has not given any advances in the nature of loans to any
with such banks or financial institutions are in agreement with the party during the year.
books of account of the Company. (e) According to the information and explanations given to us
(iii) According to the information and explanations given to us and on and on the basis of our examination of the records of the
the basis of our examination of the records of the Company, the Company, there is no loan or advance in the nature of loan
Company has not made any investments, provided guarantee or granted falling due during the year, which has been
security, granted loans or advances in the nature of loans, renewed or extended or fresh loans granted to settle the
secured or unsecured to firms, limited liability partnership or any overdues of existing loans given to same parties.
other parties during the year. The Company has not provided
(f) According to the information and explanations given to us
security or granted loans or advances in the nature of loans,
and on the basis of our examination of the records of the
secured or unsecured to any company during the year. The
Company, the Company has not granted any loans or
Company has made investments and stood guarantee to
advances in the nature of loans either repayable on
companies during the year in respect of which the requisite
demand or without specifying any terms or period of
information, as applicable, is provided below.
repayment.
(a) Based on the audit procedures carried on by us and as per the
information and explanations given to us the Company has
provided loans or provided advances in the nature of loans, or
stood guarantee, or provided security to entities as below: (` in Lakhs)

Security Advances in
Particulars Guarantees Loans
nature of loans
Aggregate amount granted during the year
Subsidiaries* - - - -
Joint ventures* - - - -
Associates* - - - -
Others - - - -
Balance outstanding as at balance sheet date
Subsidiaries* 1,77,045 - 223 -
Joint ventures* - - - -
Associates* - - - -
Others* 329 - - -
*As per the Companies Act, 2013
Also refer note 48 to the standalone financial statements.

78 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

INDEPENDENT AUDITORS’ REPORT

(iv) According to the information and explanations given to us and on (viii) According to the information and explanations given to us and
the basis of our examination of records of the Company, in on the basis of our examination of the records of the
respect of investments made and loans, guarantees and security Company, the Company has not surrendered or disclosed
given by the Company, in our opinion the provisions of Section any transactions, previously unrecorded as income in the
185 and 186 of the Companies Act, 2013 (“the Act”) have been books of account, in the tax assessments under the Income
complied with. Tax Act, 1961 as income during the year.
(v) The Company has not accepted any deposits or amounts which (ix) (a) According to the information and explanations given to us
are deemed to be deposits from the public. Accordingly, clause and on the basis of our examination of the records of the
3(v) of the Order is not applicable. Company, the Company has not defaulted in repayment of
(vi) We have broadly reviewed the books of accounts maintained by loans and borrowing or in the payment of interest thereon to
the Company pursuant to the rules prescribed by the Central any lender.
Government for maintenance of cost records under Section (b) According to the information and explanations given to us and
148(1) of the Act in respect of its manufactured goods and on the basis of our examination of the records of the
services provided by it and are of the opinion that prima facie, the Company, the Company has not been declared a wilful
prescribed accounts and records have been made and defaulter by any bank or financial institution or government or
maintained. However, we have not carried out a detailed government authority.
examination of the records with a view to determine whether (c) According to the information and explanations given to us by
these are accurate or complete. the management, the Company has not obtained any term
(vii) (a) The Company does not have liability in respect of Service tax, loans during the year. Accordingly, clause 3(ix)(c) of the Order
Duty of excise, Sales tax and Value added tax during the year is not applicable.
since effective 1 July 2017, these statutory dues has been (d) According to the information and explanations given to us and
subsumed into GST. on an overall examination of the balance sheet of the
According to the information and explanations given to us and on Company, we report that no funds raised on short-term basis
the basis of our examination of the records of the Company, in have been used for long-term purposes by the Company.
our opinion amounts deducted / accrued in the books of account (e) According to the information and explanations given to us and
in respect of undisputed statutory dues including Goods and on an overall examination of the standalone financial
Service Tax ('GST'), Provident Fund, Employees State statements of the Company, we report that the Company has
Insurance, Income-Tax, Duty of Customs or Cess or other not taken any funds from any entity or person on account of or
statutory dues have been regularly deposited by the Company to meet the obligations of its subsidiaries as defined under the
with the appropriate authorities. Act. The Company does not hold any investment in any
According to the information and explanations given to us and on associates or joint ventures (as defined under the Act) during
the basis of our examination of the records of the Company, no the year ended 31 March 2023.
undisputed amounts payable in respect of Goods and Service (f) According to the information and explanations given to us and
Tax, Provident Fund, Employees State Insurance, Income-Tax, procedures performed by us, we report that the Company has
Duty of Customs or Cess or other statutory dues were in arrears not raised loans during the year on the pledge of securities
as at 31 March 2023 for a period of more than six months from the held in its subsidiaries as defined under the Act. The
date they became payable. Company does not hold any investment in any associates or
(b) According to the information and explanations given to us and on joint ventures (as defined under the Act) during the year
the basis of our examination of the records of the Company, there ended 31 March 2023.
are no statutory dues relating to GST, Provident Fund, (x) (a) The Company has not raised any moneys by way of initial
Employees State Insurance, Income-Tax, Duty of Customs or public offer or further public offer (including debt instruments).
Cess or other statutory dues, which have not been deposited with Accordingly, clause 3(x)(a) of the Order is not applicable.
the appropriate authorities on account of any dispute, except as
follows:

Name of the Nature of the Amount* Financial year to which Forum where
statute dues (` in lakhs) the amount relates dispute is pending

Income-tax Act, 1961 Commissioner of Income Tax (Appeals),

Income tax 2.68 2016-2017
Faceless Appeal Centre, New Delhi.

Income-tax Act, 1961 Commissioner of Income Tax (Appeals),

Income tax 7.23 2020-2021
Faceless Appeal Centre, New Delhi.

Commissioner of GST & Central

Goods and Service Tax Act GST 259.33 2017-2019
Excise (Appeals), Coimbatore

Commissioner of GST & Central

Goods and Service Tax Act GST 173.67 2014-2017
Excise (Appeals), Coimbatore

*net of amount paid under protest

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 79

 ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

INDEPENDENT AUDITORS’ REPORT

(b) According to the information and explanations given to us and (xvii) The Company has not incurred cash losses in the current
on the basis of our examination of the records of the and in the immediately preceding financial year.
Company, the Company has not made any preferential (xviii) There has been no resignation of the statutory auditors
allotment or private placement of shares or fully or partly during the year. Accordingly, clause 3(xviii) of the Order is not
convertible debentures during the year. Accordingly, clause applicable.
3(x)(b) of the Order is not applicable.
(xix) According to the information and explanations given to us and
(xi) (a) Based on examination of the books and records of the on the basis of the financial ratios, ageing and expected dates
Company and according to the information and explanations of realisation of financial assets and payment of financial
given to us, no fraud by the Company or on the Company has liabilities, other information comprising Board’s report,
been noticed or reported during the course of the audit. Management Discussion and Analysis and Corporate
(b) According to the information and explanations given to us, no Governance Report, accompanying the standalone financial
report under sub-section (12) of Section 143 of the Act has statements, our knowledge of the Board of Directors and
been filed by the auditors in Form ADT-4 as prescribed under management plans and based on our examination of the
Rule 13 of the Companies (Audit and Auditors) Rules, 2014 evidence supporting the assumptions, nothing has come to
with the Central Government. our attention, which causes us to believe that any material
(c) As represented to us by the management, there are no uncertainty exists as on the date of the audit report that the
whistle blower complaints received by the Company during Company is not capable of meeting its liabilities existing at the
the year. date of balance sheet as and when they fall due within a
period of one year from the balance sheet date. We, however,
(xii) According to the information and explanations given to us, the
state that this is not an assurance as to the future viability of
Company is not a Nidhi Company. Accordingly, clause 3(xii)
the Company. We further state that our reporting is based on
of the Order is not applicable.
the facts up to the date of the audit report and we neither give
(xiii) In our opinion and according to the information and
any guarantee nor any assurance that all liabilities falling due
explanations given to us, the transactions with related parties
within a period of one year from the balance sheet date, will
are in compliance with Section 177 and 188 of the Act, where
get discharged by the Company as and when they fall due.
applicable, and the details of the related party transactions
Also refer to the “Information Other than the Financial
have been disclosed in the standalone financial statements
Statements and Auditor’s Report Thereon” paragraph of our
as required by the applicable accounting standards.
main audit report which explains that the remaining sections
(xiv) (a) Based on information and explanations provided to us
of the Annual report is expected to be made available to us
and our audit procedures, in our opinion, the Company has an
after the date of this auditor’s report.
internal audit system commensurate with the size and nature
of its business.
(xx) In our opinion and according to the information and
(b) We have considered the internal audit reports of the
explanations given to us, there is no unspent amount under
Company issued till date for the period under audit.
sub-section (5) of Section 135 of the Act pursuant to any
(xv) In our opinion and according to the information and
project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the
explanations given to us, the Company has not entered into
Order are not applicable.
any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section
For B S R & Co. LLP
192 of the Act are not applicable to the Company. Chartered Accountants
(xvi) (a) The Company is not required to be registered under Firm’s Registration No.:101248W/W-100022
Section 45-IA of the Reserve Bank of India Act, 1934.
K Sudhakar
Accordingly, clause 3(xvi)(a) of the Order is not applicable. Partner
(b) The Company is not required to be registered under Section Place : Coimbatore Membership No.: 214150
45-IA of the Reserve Bank of India Act, 1934. Accordingly, Date : 03 May 2023 ICAI UDIN:23214150BGXPFY6349
clause 3(xvi)(b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as
defined in the regulations made by the Reserve Bank of India.
Accordingly, clause 3(xvi) (c) of the Order is not applicable.
(d) The Company is not part of any group (as per the provisions
of the Core Investment Companies (Reserve Bank)
Directions, 2016 as amended). Accordingly, the requirements
of clause 3(xvi)(d) are not applicable.

80 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

INDEPENDENT AUDITORS’ REPORT

Annexure B to the Independent Auditor’s Report on the internal financial controls with reference to financial statements
standalone financial statements of K.P.R. Mill Limited for the based on our audit. We conducted our audit in accordance with
year ended 31 March 2023 the Guidance Note and the Standards on Auditing, prescribed

Report on the internal financial controls with reference to the under Section 143(10) of the Act, to the extent applicable to an

aforesaid standalone financial statements under Clause (i) of audit of internal financial controls with reference to financial

Sub-section 3 of Section 143 of the Act statements. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the
(Referred to in paragraph 2(A)(f) under ‘Report on Other
audit to obtain reasonable assurance about whether adequate
Legal and Regulatory Requirements’ section of our report of
internal financial controls with reference to financial statements
even date)
were established and maintained and if such controls operated
Opinion
effectively in all material respects.
We have audited the internal financial controls with reference to
Our audit involves performing procedures to obtain audit evidence
financial statements of K.P.R. Mill Limited (“the Company”) as of
about the adequacy of the internal financial controls with
31 March 2023 in conjunction with our audit of the standalone
reference to financial statements and their operating
financial statements of the Company for the year ended on that
effectiveness. Our audit of internal financial controls with
date.
reference to financial statements included obtaining an
In our opinion, the Company has, in all material respects, understanding of internal financial controls with reference to
adequate internal financial controls with reference to financial financial statements, assessing the risk that a material weakness
statements and such internal financial controls were operating exists, and testing and evaluating the design and operating
effectively as at 31 March 2023, based on the internal financial effectiveness of internal control based on the assessed risk. The
controls with reference to financial statements criteria established procedures selected depend on the auditor’s judgement,
by the Company considering the essential components of internal including the assessment of the risks of material misstatement of
control stated in the Guidance Note on Audit of Internal Financial the standalone financial statements, whether due to fraud or error.
Controls Over Financial Reporting issued by the Institute of
We believe that the audit evidence we have obtained is sufficient
Chartered Accountants of India (the “Guidance Note”).
and appropriate to provide a basis for our audit opinion on the
Management’s and Board of Directors’ Responsibilities for Company’s internal financial controls with reference to financial
Internal Financial Controls statements.
The Company’s Management and the Board of Directors are Meaning of Internal Financial Controls with Reference to
responsible for establishing and maintaining internal financial Financial Statements
controls based on the internal financial controls with reference to
A company's internal financial controls with reference to financial
financial statements criteria established by the Company
statements is a process designed to provide reasonable
considering the essential components of internal control stated in
assurance regarding the reliability of financial reporting and the
the Guidance Note. These responsibilities include the design,
preparation of standalone financial statements for external
implementation and maintenance of adequate internal financial
purposes in accordance with generally accepted accounting
controls that were operating effectively for ensuring the orderly
principles. A company's internal financial controls with reference
and efficient conduct of its business, including adherence to
to financial statements include those policies and procedures that
company’s policies, the safeguarding of its assets, the prevention
(1) pertain to the maintenance of records that, in reasonable
and detection of frauds and errors, the accuracy and
detail, accurately and fairly reflect the transactions and
completeness of the accounting records, and the timely
dispositions of the assets of the company; (2) provide reasonable
preparation of reliable financial information, as required under the
assurance that transactions are recorded as necessary to permit
Act.
preparation of standalone financial statements in accordance with
Auditors’ Responsibility generally accepted accounting principles, and that receipts and
Our responsibility is to express an opinion on the Company’s expenditures of the company are being made only in accordance

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 81

 ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

INDEPENDENT AUDITORS’ REPORT

with authorisations of management and directors of the company; periods are subject to the risk that the internal financial controls
and (3) provide reasonable assurance regarding prevention or with reference to financial statements may become inadequate
timely detection of unauthorised acquisition, use, or disposition of because of changes in conditions, or that the degree of
the company's assets that could have a material effect on the compliance with the policies or procedures may deteriorate.
standalone financial statements.

Inherent Limitations of Internal Financial Controls with

Reference to Financial Statements
For B S R & Co. LLP
Because of the inherent limitations of internal financial controls Chartered Accountants
with reference to financial statements, including the possibility of Firm’s Registration No :101248W/W-100022
collusion or improper management override of controls, material
K Sudhakar
misstatements due to error or fraud may occur and not be
Partner
detected. Also, projections of any evaluation of the internal Membership No.: 214150
Place : Coimbatore
financial controls with reference to financial statements to future Date : 03 May 2023 ICAI UDIN : 23214150BGXPFY6349

82 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 STANDALONE BALANCE SHEET AS AT 31.03.2023

BALANCE SHEET
(` in Lakhs)

Particulars Note As at 31.03.2023 As at 31.03.2022

ASSETS
(1) Non-current assets
(a) Property, plant and equipment 4 94,924 84,433
(b) Capital work-in-progress 4 2,126 491
(c) Intangible assets 4 96 80
(d) Financial assets
(i) Investments 5 75,731 57,912
(ii) Loans 6 223 204
(iii) Other financial assets 7 3,413 2,350
(e) Other non - current assets 8 5,208 3,479
Total non - current assets 1,81,721 1,48,949
(2) Current assets
(a) Inventories 9 1,23,247 85,190
(b) Financial assets
(i) Investments 10 12,716 27,403
(ii) Trade receivables 11 49,209 39,263
(iii) Cash and cash equivalents 12 4,050 9,561
(iv) Bank balances other than cash and cash equivalents 13 226 479
(v) Other financial assets 14 252 4,442
(c) Other current assets 15 16,008 20,603
Total current assets 2,05,708 1,86,941
Total assets 3,87,429 3,35,890
EQUITY AND LIABILITIES
(1) Equity
(a) Equity share capital 16 3,418 3,441
(b) Other equity 17 2,93,878 2,59,777
Total equity 2,97,296 2,63,218
Liabilities
(2) Non - current liabilities
(a) Financial liabilities
(i) Borrowings 18 29 31
(ii) Other financial liabilities 19 311 -
(b) Deferred tax liabilities (net) 20 5,817 4,368
(c) Other non-current liabilities 21 1 3
Total non- current liabilities 6,158 4,402
(3) Current liabilities
(a) Financial liabilities
(i) Borrowings 22 49,770 41,754
(ii) Trade payables
(A)Total outstanding dues of micro and small enterprises; and 23 (A) 645 1,454
(B)Total outstanding dues of creditors other than micro
enterprises and small enterprises 23 (B) 19,285 10,037
(iii) Other financial liabilities 24 209 43
(b) Other current liabilities 25 14,012 13,310
(c) Current tax liabilities (net) 26 54 1,672
Total current liabilities 83,975 68,270
Total liabilities 90,133 72,672
Total equity & liabilities 3,87,429 3,35,890

Significant accounting policies 3

The notes from 1 to 51 are an integral part of these standalone financial statements As per our report of even date attached
For B S R & Co. LLP
For and on behalf of the Board of Directors of
Chartered Accountants
K.P.R. Mill Limited
Firm's Registration Number : 101248W/W-100022
CIN : L17111TZ2003PLC010518
K.P.Ramasamy KPD Sigamani P.Nataraj K Sudhakar
Chairman Managing Director Chief Executive Officer and Managing Director Partner
DIN: 00003736 DIN: 00003744 DIN : 00229137 Membership No. : 214150

Coimbatore PL Murugappan P.Kandaswamy Coimbatore

03.05.2023 Chief Financial Officer Company Secretary 03.05.2023

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 83

 STANDALONE STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31.03.2023

STATEMENT OF PROFIT & LOSS

(` in Lakhs)
Year Ended
Particulars Note
31.03.2023 31.03.2022

I. Revenue from operations 27 4,73,955 4,07,367

II. Other income 28 13,012 8,463
III. Total Income (I+II) 4,86,967 4,15,830
IV. Expenses
Cost of materials consumed 29 3,03,973 2,27,875
Purchase of stock-in-trade 13,750 -
Changes in inventories of finished goods, stock -in- trade and work- in-
progress 30 (19,471) (8,323)
Employee benefits expense 31 46,200 43,289
Finance costs 32 2,670 1,339
Depreciation and amortisation expense 4 7,764 7,565
Other expenses 33 49,606 46,136
V. Total expenses 4,04,492 3,17,881
VI. Profit before tax (III-V) 82,475 97,949
VII. Tax expenses
Current tax
- Pertaining to current year 18,324 24,870
- Pertaining to prior year (802) (75)
Deferred tax 1,449 74
Total tax expense 18,971 24,869
VIII. Profit for the year (VI-VII) 63,504 73,080
Other comprehensive income
Item that will be reclassified to profit or loss - -
Item that will not be reclassified to profit or loss - -
IX. Other comprehensive income for the year, net of tax - -
X. Total comprehensive income for the year (VIII+IX) 63,504 73,080
Earnings per equity share (EPS)
Basic and diluted EPS (in `) of face value `1/- each 41 18.57 21.24

3
Significant accounting policies
The notes from 1 to 51 are an integral part of these standalone financial statements As per our report of even date attached
For and on behalf of the Board of Directors of For B S R & Co. LLP
K.P.R. Mill Limited Chartered Accountants
CIN : L17111TZ2003PLC010518 Firm's Registration Number : 101248W/W-100022

K.P.Ramasamy KPD Sigamani P.Nataraj K Sudhakar

Chairman Managing Director Chief Executive Officer and Managing Director Partner
DIN: 00003736 DIN: 00003744 DIN : 00229137 Membership No. : 214150

PL Murugappan P.Kandaswamy
Chief Financial Officer Company Secretary

Coimbatore Coimbatore
03.05.2023 03.05.2023

84 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31.03.2023

CASH FLOW STATEMENT

(` in Lakhs)
Year Ended
Particulars Note
31.03.2023 31.03.2022
CASH FLOW FROM OPERATING ACTIVITIES
Profit for the year 63,504 73,080
Adjustments for:
Income tax expenses recognised in the statement of
profit and loss 18,971 24,869
Depreciation and amortisation expenses 7,764 7,565
Net gain on sale of property, plant and equipment (2,074) (296)
Finance costs 2,670 1,339
Interest income (212) (305)
Dividend income from non-current investments in subsidiaries (4,684) (26)
Gain on sale of current investments (Net) (3,627) (1,359)
Rental income from operating leases (236) (112)
Impairment loss on financial assets 182 121
Financial guarantee income (169) -
Impairment of non-current investments (including investment pending allotment) - 1,594
Impairment on Loans - 113
Operating profit before working capital changes 82,089 1,06,583
Changes in Working Capital:
Adjustments for (increase) / decrease in operating assets:
Inventories (38,057) (16,105)
Trade receivables (10,128) (13,303)
Other current assets 4,598 (4,963)
Other non current financial assets (1,063) (944)
Other non-current assets (3,454) -
Other financial assets (54) 4
Adjustments for increase / (decrease) in operating liabilities:
Trade payables 8,439 3,228
Other financial liabilities (11) 3
Other current liabilities 702 2,085
Other non-current liabilities (2) (1)
Cash generated from operations 43,059 76,587
Net income tax (paid) (19,517) (25,684)
Net cash flow from/ (used in) operating activities (A) 23,542 50,903

CASH FLOW FROM INVESTING ACTIVITIES

Capital expenditure on property, plant and equipment, including capital
advances (net of capital subsidy) (18,874) (14,082)
Proceeds/ (purchase) from sale of current investments (net) 15,950 (2,700)
Decrease/ (increase) in margin deposit accounts 253 308
Proceeds from sale of property, plant and equipment 2,764 530
Proceeds from maturity of term deposits (having original maturity of more than 3
months) 4,000 -
Loans to related party (net of repayment) - 233
Purchase of non-current investments:
- Subsidiaries (20,000) (38,924)
(Purchase) / proceeds from sale of non-current investments 5,202 -
Interest received from:
- Others 437 218
Dividend received from subsidiary 4,684 26
Rental income 236 112
Net cash flow used in investing activities (B) (5,348) (54,279)

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 85

 STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31.03.2023

CASH FLOW STATEMENT

(`in Lakhs)
Year Ended
Particulars Note
31.03.2023 31.03.2022

CASH FLOW FROM FINANCING ACTIVITIES

Payment towards buy-back of shares (18,001) -
Income tax on buy-back of shares (4,076) -
Proceeds from / (repayment of) non-current borrowings (Net) (2) (959)
Proceeds from/ (repayment of) current borrowings (net) 8,015 11,014
Finance costs paid (2,292) (1,105)
Dividends paid (7,349) (516)
Net cash flow (used in) / from financing activities (C) (23,705) 8,434
Net (decrease) / increase in cash and cash equivalents (A+B+C) (5,511) 5,058
Add: Opening cash and cash equivalents 9,561 4,503
Closing cash and cash equivalents (refer note 12) 4,050 9,561

Closing cash and cash equivalents comprises

(a) Balance with banks:
(i) In Current accounts 2,305 2,752
(ii) In EEFC accounts 1,682 6,784
(b) Cash on hand 63 25
4,050 9,561

Significant accounting policies 3

The notes from 1 to 51 are an integral part of these standalone financial statements

As per our report of even date attached

For and on behalf of the Board of Directors of For B S R & Co. LLP
K.P.R. Mill Limited Chartered Accountants
CIN : L17111TZ2003PLC010518 Firm's Registration Number : 101248W/W-100022

K.P.Ramasamy KPD Sigamani P.Nataraj K Sudhakar

Chairman Managing Director Chief Executive Officer and Managing Director Partner
DIN: 00003736 DIN: 00003744 DIN : 00229137 Membership No. : 214150

PL Murugappan P.Kandaswamy
Chief Financial Officer Company Secretary

Coimbatore Coimbatore
03.05.2023 03.05.2023

86 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 STANDALONE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31.03.2023

CHANGES IN EQUITY
a. Equity share capital Notes (` in Lakhs)
Balance as at 01.04.2021 3,441
Changes in equity share capital during 2021-22 -
Balance as at 31.03.2022 3,441
Less : Buy-back of equity shares 41 23
Balance as at 31.03.2023 3,418

b. Other Equity (` in Lakhs)

Reserves and Surplus

Other Total Other
Particulars Securities Capital General Retained comprehensive Equity
Premium Redemption Reserve Earnings income
Reserve

Balance as at 01.04.2021 15,233 1,827 24,716 1,45,437 - 1,87,213

Profit for the year - - - 73,080 - 73,080
Final dividend relating to 2020-21 paid
(` 0.75 per share on face value of ` 5/-) - - - (516) - (516)
Balance as at 31.03.2022 15,233 1,827 24,716 2,18,001 - 2,59,777
Profit for the year - - - 63,504 - 63,504
Premium on buy-back of equity shares (15,233) - - (2,745) - (17,978)
Income tax on buy-back of equity shares - - - (4,076) - (4,076)
Transfer to Capital redemption reserve - 23 - (23) - -
Final dividend relating to 2021-22 paid
(` 0.15 per share on face value of ` 1/-) - - - (513) - (513)
Interim dividend relating to 2022-23 paid
(` 2 per share on face value of ` 1/-) - - - (6,836) - (6,836)
Balance as at 31.03.2023 - 1,850 24,716 2,67,312 - 2,93,878

Significant accounting policies 3

The notes from 1 to 51 are an integral part of these standalone financial statements

For and on behalf of the Board of Directors of As per our report of even date attached
K.P.R. Mill Limited For B S R & Co. LLP
CIN : L17111TZ2003PLC010518 Chartered Accountants
Firm's Registration Number : 101248W/W-100022

K.P.Ramasamy KPD Sigamani P.Nataraj K Sudhakar

Chairman Managing Director Chief Executive Officer and Managing Director Partner
DIN: 00003736 DIN: 00003744 DIN : 00229137 Membership No. : 214150

PL Murugappan P.Kandaswamy
Chief Financial Officer Company Secretary

Coimbatore Coimbatore
03.05.2023 03.05.2023

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 87

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
1 CORPORATE INFORMATION accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these
K.P.R. Mill Limited ('the Company') is one of the largest vertically
estimates.
integrated apparel manufacturing companies in India with its
registered office situated at Coimbatore. The Company produces Estimates and underlying assumptions are reviewed on an
Yarn, Knitted Fabric, Readymade Garments and Wind power. It ongoing basis. Revisions to accounting estimates are recognised
has state-of-the-art production facilities in the State of Tamil Nadu, prospectively.
India. The Company's registered office is at No. 9, Gokul
Judgments
Buildings, A.K.S Nagar, Thadagam Road, Coimbatore - 641001,
Tamil Nadu, India. Information about judgments made in applying accounting
policies that have the most significant effects on the amounts
The Company's shares are listed in BSE Limited (BSE) and
recognised in the standalone financial statements is included in
National Stock Exchange of India Limited (NSE).
the following notes:
2 BASIS OF PREPARATION
Note 15 - classification, measurement and recognition of
A STATEMENT OF COMPLIANCE: Government grants
These standalone financial statements of the Company have Note 3(L) Leases - whether the arrangement contains a
been prepared in accordance with the Indian Accounting lease; and lease classification
Standards (Ind AS) as per the Companies (Indian Accounting
Note 3(H) and 39: Financial instruments: Classification and
Standards) Rules, 2015 notified under section 133 of the
measurement
Companies Act, 2013 ("the Act") and other relevant provisions of
the Act, as amended from time to time. Assumptions and estimation uncertainties:

These standalone financial statements for the year ended Information about assumptions and estimation uncertainties at
31.03.2023 are approved for issue by the Company's Board of the reporting date that have a significant risk of resulting in a
Directors on 03-05-2023. material adjustment to the carrying amounts of assets and
liabilities within the next financial year is included in the following
Details of the Company’s accounting policies, including changes
notes:
thereto, are included in note 3. The Company has consistently
applied the accounting policies to all the periods present in these (i) Impairment of non-financial assets:
standalone financial statements. In assessing impairment, management has estimated economic
B FUNCTIONAL AND PRESENTATION CURRENCY use of assets, the recoverable amount of each asset or cash-
generating units based on expected future cash flows and use an
These standalone financial statements are presented in Indian
interest rate to discount them. Estimation of uncertainty relates to
Rupees (INR), which is also the Company’s functional currency.
assumptions about future operating cash flows and determination
All amounts have been rounded-off to the nearest lakhs, unless
of a suitable discount rate. (also refer Note 3)
otherwise indicated.
(ii) Useful lives of depreciable assets:
C BASIS OF MEASUREMENT
Management reviews its estimate of useful lives of depreciable
These standalone financial statements have been prepared
assets at each reporting date, based on expected utility of assets.
under the historical cost basis and on an accrual basis, except for
Uncertainties in these estimates relate to technological
the following items which are measured on an alternative basis on
obsolescence that may change utility of assets (also refer note 3).
each reporting date:
(iii) Inventories:
i. Derivative financial instruments measured at fair value through
profit and loss; Management has carefully estimated the net realizable values of
inventories, taking into account the most reliable evidence
ii. Certain financial assets and liabilities measured at fair value
available at each reporting date. The future realization of these
(refer accounting policy on financial instruments) and
inventories may be affected by market-driven changes (also refer
iii. Net defined (asset) / liability measured at fair value of plan note 3).
assets less present value of obligations limited as explained in
(iv) Defined benefit obligation (DBO):
note 3 (K).
The actuarial valuation of the DBO is based on a number of critical
D USE OF JUDGEMENTS AND ESTIMATES
underlying management’s assumptions such as standard rates of
In preparing these standalone financial statements, management inflation, mortality, discount rate and anticipation of future salary
has made judgments and estimates that affect the application of increases. Variation in these assumptions may significantly

88 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
impact the DBO amount and the annual defined benefit expenses F CURRENT AND NON-CURRENT CLASSIFICATION
(also refer note 44).
The Company classifies an asset as current asset when:
(v) Recognition and measurement of provisions and
- it expects to realise the asset, or intends to sell or consume it, in
contingencies:
its normal operating cycle;
Key assumptions about the likelihood and magnitude of an
- it holds the asset primarily for the purpose of trading;
outflow of resources (also refer note 36).
- it expects to realise the asset within twelve months after the
(vi) Impairment of financial assets - Refer Note 3
reporting period; or
Measurement of expected credit loss allowance for trade
- the asset is cash or a cash equivalent unless the asset is
receivables, loans and other financial assets: key assumptions in
restricted from being exchanged or used to settle a liability for at
determining the weighted-average loss rate (also refer note 11)
least twelve months after the reporting period.
E MEASUREMENT OF FAIR VALUES
All other assets are classified as non-current.
A number of the Company’s accounting policies and disclosures
A liability is classified as current when:
require the measurement of fair values, for both financial and non-
financial assets and liabilities. The Company has an established - it expects to settle the liability in its normal operating cycle;
control framework with respect to the measurement of fair values. - it holds the liability primarily for the purpose of trading;
This includes a valuation team that has overall responsibility for
- the liability is due to be settled within twelve months after the
overseeing all significant fair value measurements, including
reporting period; or
Level 3 fair values, and reports directly to the chief financial officer.
Fair values are categorised into different levels in a fair value - it does not have an unconditional right to defer settlement of the
hierarchy based on the inputs used in the valuation techniques as liability for at least twelve months after the reporting period. Terms
follows: of a liability that could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not affect its
Level 1: quoted prices (unadjusted) in active markets for
classification.
identical assets or liabilities.
All other liabilities are classified as non-current.
Level 2: inputs other than quoted prices included in Level 1
that are observable for the asset or liability, either directly (i.e. The operating cycle is the time between the acquisition of assets
as prices) or indirectly (i.e. derived from prices). for processing and their realisation in cash or cash equivalents.
The Company’s normal operating cycle is twelve months.
Level 3: inputs for the asset or liability that are not based on
observable market data (unobservable inputs). 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
When measuring the fair value of an asset or a liability, the A) INVENTORIES
Company uses observable market data as far as possible. The
Inventories are valued at lower of cost and net realizable value.
inputs used to measure the fair value of assets or a liability fall into
The cost of raw materials, components, stock-in-trade,
different levels of the fair value hierarchy. Accordingly, the fair
consumable stores and spare parts are determined using first-in
value measurement is categorised in its entirety in the same level
first-out / specific identification method and includes freight, taxes
of the fair value hierarchy as the low level input that is significant to
and duties, net of duty credits wherever applicable, and any other
the entire measurement.
expenditure incurred in bringing them to their present location and
Management uses various valuation techniques to determine fair condition. In the case of finished goods and work-in-progress,
value of financial instruments (where active market quotes are not cost includes an appropriate share of manufacturing overheads
available). This involves developing estimates and assumptions based on normal operating capacity.
consistent with how market participants would price the
Net realisable value is the estimated selling price in the ordinary
instrument. Management based on its assumptions on
course of business, less the estimated cost of completion and
observable data as far as possible but where it not available, the
selling expenses. The net realisable value of work-in-progress is
management uses the best information available. Estimated fair
determined with reference to the selling prices of related finished
values may vary from the actual prices that would be achieved in
products. Raw materials, stores and spares, packing and others
an arm’s length transaction at the reporting date (also refer Note
held for use in the production of finished goods are not written
39). The Company recognises transfers between levels of the fair
down below except in cases where material prices have declined
value hierarchy at the end of the reporting period during which the
and it is estimated that the cost of the finished goods will exceed
change has occurred.
their net realizable value.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 89

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
The comparison of cost and net realisable value is made on an b. any directly attributable cost of bringing the item to its working
item by item basis. condition for its intended use, estimated costs of dismantling and
removing the item and restoring the site on which it is located.
B) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF
CASH FLOW STATEMENT) c. The cost of a self-constructed item of property, plant and
equipment comprises the cost of materials and direct labour, any
Cash comprises cash on hand and demand deposits with banks.
other costs directly attributable to bringing the item to working
Cash equivalents are short-term balances (with an original
condition for its intended use, and estimated costs of dismantling
maturity of three months or less from the date of acquisition),
and removing the item and restoring the site on which it is located.
highly liquid investments that are readily convertible into known
amounts of cash and which are subject to insignificant risk of Any gain/ loss on disposal of an item of property, plant and
changes in value. equipment is recognised in the statement of profit and loss.
C) CASH FLOW STATEMENT Subsequent expenditure
Cash flows are reported using the indirect method, whereby profit Subsequent expenditure is capitalised only if it is probable that
/ (loss) is adjusted for the effects of transactions of non-cash future economic benefits associated with the item will flow to the
nature and any deferrals or accruals of past or future cash receipts Company and the cost of the item can be measured reliably.
or payments. The cash flows from operating, investing and
Component accounting
financing activities of the Company are segregated based on the
available information. In cash flow statement, cash and cash If significant parts of an item of property, plant and equipment have
equivalents include cash in hand, balances with banks in current different useful lives, then they are accounted for as separate
accounts and other short-term highly liquid investments with items (major components) of property, plant and equipment.
original maturities of three months or less. Depreciation
D) PROPERTY, PLANT AND EQUIPMENT Depreciation is calculated on the cost of items of property, plant
Recognition and measurement and equipment less their estimated residual values using the
straight-line method over the estimated useful lives and is
The cost of an item of property, plant and equipment shall be
generally recognised in the Statement of profit and loss. Freehold
recognised as an asset if, and only if it is probable that future
land is not depreciated.
economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. Depreciation on property, plant and equipment is charged over the
estimated useful life of the asset or part of the asset (after
Freehold land is stated at historical cost less any accumulated
considering double/triple shifts) as evaluated on technical
impairment losses. Items of property, plant and equipment are
assessment on straight-line method, in accordance with Part A of
measured at cost, which includes capitalised borrowing costs,
Schedule II to the Companies Act, 2013.
less accumulated depreciation and accumulated impairment
losses, if any. Cost of an item of property, plant and equipment The estimated useful life of the property, plant and equipment
comprises: followed by the Company for the current and the comparative
period are as follows :
a. purchase price, including import duties and non-refundable
taxes on purchase (goods and service tax), after deducting trade
discounts and rebates.

Asset Management’s estimated useful life Useful life as per Schedule II

Factory Building ~ 30 Years ~ 30 Years

Non Factory Building ~ 60 Years ~ 60 Years
Plant & Equipments ~ 10-20 Years ~ 8-20 Years
Windmill ~ 12 Years ~ 22 Years
Electricals ~ 14 Years ~ 10 Years
Furnitures & fixtures ~ 10 Years ~ 10 Years
Computers & accessories ~ 3 Years ~ 3-6 Years
Vehicles ~ 8-10 Years ~ 8-10 Years

90 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
Depreciation method, useful lives and residual values are control over the promised goods to the customer. Control over a
reviewed at each financial year-end and adjusted if necessary, for promised good refers to the ability to direct the use of, and
each reporting period. Based on technical evaluation, the obtain substantially all of the remaining benefits from, those
management believes that its estimate of useful life as given goods. Control is usually transferred upon shipment, delivery
above best represent the period over which management expects to, upon receipt of goods by the customer, in accordance with
to use the asset. the individual delivery and acceptance terms agreed with the
customers.
On property, plant and equipment added/ disposed off during the
year, depreciation is charged on pro-rata basis for the period The amount of revenue to be recognized (transaction price) is
from/upto which the asset is ready for use/disposed off. based on the consideration expected to be received in
exchange for goods, excluding amounts collected on behalf of
Capital work-in-progress
third parties such as sales tax or other taxes directly linked to
Property, plant and equipment in the course of construction for sales. If a contract contains more than one performance
production, supply or administrative purposes are carried at cost, obligation, the transaction price is allocated to each
less any recognised impairment loss. Cost includes professional performance obligation based on their relative stand-alone
fees and, for qualifying assets, borrowing costs capitalised in selling prices. Revenue from product sales are recorded net of
accordance with the Company's accounting policy. They are allowances for estimated rebates, cash discounts and
classified to the appropriate categories of property, plant and estimates of product returns, all of which are established at the
equipment when completed and ready for intended use. time of sale. Our customers have the contractual right to return
Depreciation of these assets, on the same basis as other property goods only when authorised by the Company.
assets, commences when the assets are ready for their intended
1.2 Revenue from services:
use.
Revenue from sale of services is recognised when related
INTANGIBLE ASSETS
services are rendered as per the terms agreed with customers.
Intangible assets with finite useful lives that are acquired
1.3 Export incentives
separately are carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation is calculated on a Export incentives are accounted in the year of exports based on
straight-line basis over their estimated useful lives and it is eligibility and expected amount on realisation.
included in the statement of profit and loss. The estimated useful
F) OTHER INCOME
life and amortisation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate being Dividend income from investments is recognized when the right to
accounted for on a prospective basis. Intangible assets with receive the payment is established and when no significant
indefinite useful lives that are acquired separately are carried at uncertainty as to measurability or collectability exists.
cost less accumulated impairment losses. Rental income under operating leases is recognized in the
The estimated useful life of intangible assets consisting computer statement of profit and loss on a straight-line basis over the term of
software is 3 years. the lease except where another systematic basis is more
representative of the pattern in which benefit from the use of the
An intangible asset is derecognised on disposal, or when no future
underlying asset is diminished.
economic benefits are expected from use or disposal. Gains or
losses arising from derecognition of an intangible asset, Interest income is recognised using effective interest rate method.
measured as the difference between the net disposal proceeds Interest income on overdue receivables is recognized only when
and the carrying amount of the asset, are recognised in the there is a certainty of receipt. The 'effective interest rate' is the rate
statement of profit and loss when the asset is derecognised. that exactly discounts estimated future cash payments or receipts
through the expected life of financial instrument to: the gross
E) REVENUE FROM CONTRACTS WITH CUSTOMERS
carrying amount of the financial asset; or the amortised cost of the
The Company generates revenue primarily from sale of Yarn, financial liability.
Knitted Fabric and Readymade Garments. The Company also
G) FOREIGN CURRENCY TRANSACTIONS AND
earns revenue from rendering of services.
TRANSLATIONS
Revenue is measured based on the consideration specified in a
Transactions in foreign currencies are translated into the
contract with a customer. The Company recognises revenue
functional currency at the exchange rates at the dates of the
when it transfers control over a good or service to a customer.
transactions or an average rate if the average rate approximates
1.1 Sale of products: the actual rate at the date of the transaction. Foreign exchange
gains and losses from settlement of these transactions are
Revenue is recognised when a promise in a customer contract
recognised in the statement of profit and loss.
(performance obligation) has been satisfied by transferring

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 91

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
Monetary assets and liabilities denominated in foreign currencies determines the classification of its financial instruments at initial
are translated into the functional currency at the exchange rate at recognition.
the reporting date. Non-monetary assets and liabilities that are
a) Non-derivative financial assets
measured at fair value in a foreign currency are translated into the
functional currency at the exchange rate when the fair value was Financial assets at amortised cost
determined. Non-monetary assets and liabilities that are A financial asset is measured at amortised cost if it meets both of
measured at historical cost in a foreign currency are translated at the following conditions and is not designated as at FVTPL :
the exchange rate at the date of the transaction. Exchange
(a) it is held within a business model whose objective is to hold
differences arising on translation are recognised in the statement
assets to collect contractual cash flows; and
of profit and loss.
(b) its contractual terms give rise on specified dates to cash flows
H) FINANCIAL INSTRUMENTS
that are solely payments of principal and interest (SPPI) on the
(i) Recognition and initial measurement principal amount outstanding.
Trade receivables and debt securities are initially recognised Debt investment at FVTOCI
when they are originated.
A debt Investment will be measured at FVTOCI if it meets both of
All other financial assets and financial liabilities are initially the following conditions and is not designated as at FVTPL:
recognized when the Company becomes a party to the
(a) it is held within a business model whose objective is achieved
contractual provisions of the instrument. A financial asset (unless
by both collecting contractual cash flows and selling financial
it is a trade receivable without a significant financing component)
assets; and
or financial liability is initially measured at fair value plus or minus,
for an item not at FVTPL, transaction costs that are directly (b) its contractual terms give rise on specified dates to cash flows
attributable to its acquisition or issue. A trade receivable without a that are SPPI on the principal amount outstanding.
significant financing component is initially measured at the
Equity instruments at FVTOCI
transaction price.
On initial recognition of an equity investment that is not held for
The 'trade payable' is in respect of the amount due on account of
trading, the Company may irrevocably elect to present
goods purchased in the normal course of business. They are
subsequent changes in the investment’s fair value in Other
recognised at their transaction and services availed value if the
comprehensive income ('OCI'). This election is made on an
transaction do not contain significant financing component.
investment-by-investment basis.
(ii) Classification and subsequent measurement
If the Company decides to classify an equity instrument as
Financial assets FVTOCI, then all fair value changes on the instrument, excluding
dividend are recognised in OCI which is not subsequently
On initial recognition, a financial asset is classified as measured at
recycled to statement of profit and loss.
- amortised cost;
Financial assets at FVTPL
- Fair value through other comprehensive income (FVTOCI)–
All financial assets not classified as measured at amortised cost or
debt investment
FVTOCI as described above are measured at FVTPL.
- Fair value through other comprehensive income (FVTOCI) –
On initial recognition, the Company may irrevocably designate a
equity investment; or
financial asset that otherwise meets the requirements to be
- Fair value through profit and loss (FVTPL) measured at amortised cost or at FVTOCI as at FVTPL if doing so
For the purpose of subsequent measurement, financial eliminates or significantly reduces an accounting mismatch that
instruments of the Company are classified in the following would otherwise arise.
categories: non-derivative financial assets comprising amortised Financial assets: Business model assessment
cost, debt instruments at fair value through other comprehensive
The Company makes an assessment of the objective of the
income (FVTOCI), equity instruments at FVTOCI or fair value
business model in which a financial asset is held at a portfolio level
through profit and loss account (FVTPL), non derivative financial
because this best reflects the way the business is managed and
liabilities at amortised cost or FVTPL and derivative financial
information is provided to management. The information
instruments (under the category of financial assets or financial
considered includes:
liabilities) at FVTPL.
The classification of financial instruments depends on the
objective of the business model for which it is held. Management

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ACCOUNTING POLICIES
- the stated policies and objectives for the portfolio and the A prepayment feature is consistent with the solely payments of
operation of those policies in practice. These include whether principal and interest criterion if the prepayment amount
management’s strategy focuses on earning contractual interest substantially represents unpaid amounts of principal and interest
income, maintaining a particular interest rate profile, matching on the principal amount outstanding, which may include
the duration of the financial assets to the duration of any related reasonable additional compensation for early termination of the
liabilities or expected cash outflows or realising cash flows contract. Additionally, for a financial asset acquired at a significant
through the sale of the assets; discount or premium to its contractual par amount, a feature that
permits or requires prepayment at an amount that substantially
- how the performance of the portfolio is evaluated and reported
represents the contractual par amount plus accrued (but unpaid)
to the Company’s management;
contractual interest (which may also include reasonable
- the risks that affect the performance of the business model (and additional compensation for early termination) is treated as
the financial assets held within that business model) and how consistent with this criterion if the fair value of the prepayment
those risks are managed; feature is insignificant at initial recognition.
- how managers of the business are compensated – e.g. whether Financial assets : Subsequent measurement and gains and
compensation is based on the fair value of the assets managed losses
or the contractual cash flows collected; and
Financial assets are not reclassified subsequent to their initial
- the frequency, volume and timing of sales of financial assets in recognition unless the Company changes its business model for
prior periods, the reasons for such sales and expectations about managing financial assets, in which case all affected financial
future sales activity. assets are reclassified on the first day of the first reporting period
Transfers of financial assets to third parties in transactions that do following the change in the business model.
not qualify for derecognition are not considered sales for this Financial assets at FVTPL:
purpose, consistent with the Company’s continuing recognition of
These assets are subsequently measured at fair value. Net gains
the assets.
and losses, including any interest or dividend income, are
Financial assets that are held for trading are managed and whose recognised in standalone statement of profit and loss.
performance is evaluated on a fair value basis are measured at
Financial assets at amortised cost:
FVTPL.
These assets are subsequently measured at amortised cost using
Financial assets: Assessment whether contractual cash
the effective interest method. The amortised cost is reduced by
flows are solely payments of principal and interest
impairment losses. Interest income, foreign exchange gains and
For the purposes of this assessment, ‘principal’ is defined as the losses and impairment are recognised in standalone statement of
fair value of the financial asset on initial recognition. ‘Interest’ is profit and loss. Any gain or loss on derecognition is recognised in
defined as consideration for the time value of money and for the standalone statement of profit and loss.
credit risk associated with the principal amount outstanding during
Debt investments at FVOCI:
a particular period of time and for other basic lending risks and
costs (e.g. liquidity risk and administrative costs), as well as a These assets are subsequently measured at fair value. Interest
profit margin. income calculated using the effective interest method, foreign
exchange gains and losses and impairment are recognised in
In assessing whether the contractual cash flows are solely
profit and loss. Other net gains and losses are recognised in OCI.
payments of principal and interest, the Company considers the
On derecognition, gains and losses accumulated in OCI are
contractual terms of the instrument. This includes assessing
reclassified to standalone statement of profit and loss.
whether the financial asset contains a contractual term that could
change the timing or amount of contractual cash flows such that it Equity investments at FVOCI:
would not meet this condition. In making this assessment, the
These assets are subsequently measured at fair value.
Company considers:
Impairment losses (and reversal of impairment losses) on equity
- contingent events that would change the amount or timing of investments measured at FVOCI are not reported separately from
cash flows; other changes in fair value. Dividends are recognised as income
in profit and loss unless the dividend clearly represents a recovery
- terms that may adjust the contractual coupon rate, including
of part of the cost of the investment. Other net gains and losses
variable interest rate features;
are recognised in OCI and are not reclassified to standalone
- prepayment and extension features; and statement of profit and loss.
- terms that limit the Company’s claim to cash flows from specified
assets (e.g. non- recourse features).

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ACCOUNTING POLICIES
Financial liabilities - Classification, subsequent and forecasted cash flows denominated in foreign currencies. The
measurement and gains and losses counterparty for these contracts is generally a bank.
Financial liabilities are classified as measured at amortised cost or Derivatives are recognized and measured at fair value.
FVTPL. A financial liability is classified as at FVTPL if it is classified Attributable transaction costs are recognized in statement of profit
as held for trading, it is a derivative or it is designated as such on and loss. Subsequent to initial recognition, derivatives are
initial recognition. Financial liabilities at FVTPL are measured at measured at fair value, and changes therein are generally
fair value and net gains and losses, including any interest recognised in profit and loss. Derivatives are carried as financial
expense, are recognised in profit and loss. Other financial assets when the fair value is positive and as financial liabilities
liabilities are subsequently measured at amortised cost using the when the fair value is negative.
effective interest method. Interest expense and foreign exchange
I) GOVERNMENT GRANTS, SUBSIDIES AND EXPORT
gains and losses are recognised in profit and loss. Any gain or loss
INCENTIVES
on derecognition is also recognised in standalone statement of
profit and loss. Government grants and subsidies related to assets, including
non-monetary grants, are initially recognised as deferred income
(iii) Derecognition
at fair value if there is reasonable assurance that they will be
Financial assets received and the Company will comply with the conditions
associated with the grant; they are then recognised in statement
The Company derecognises a financial asset when the
of profit and loss as other operating revenue / other income on a
contractual rights to the cash flows from the financial asset expire,
systematic basis.
or it transfers the rights to receive the contractual cash flows in a
transaction in which either substantially all of the risks and Government grants received in relation to assets are presented as
rewards of ownership of the financial asset are transferred or the a reduction to the carrying amount of the related asset and the
Company neither transfers nor retains substantially all of the risks same is recognised in statement of profit and loss over the life of a
and rewards of ownership and does not retain control of the depreciable asset as a reduced depreciation expense.
financial asset. Repayment of a grant related to an asset is recognised by
increasing the carrying amount of the asset and the cumulative
If the Company enters into transactions whereby it transfers
additional depreciation that would have been recognised in the
assets recognised on its balance sheet, but retains either all or
statement of profit and loss in the absence of the grant is
substantially all of the risks and rewards of the transferred assets.
recognised immediately in the statement of profit and loss.
In these cases the transferred assets are not derecognised.
Government grants relating to income are deferred and
Financial liabilities
recognised in the statement of profit and loss over the period
The Company derecognises a financial liability when its necessary to match them with the costs that they intended to
contractual obligations are discharged or cancelled, or expire. compensate and presented in other operating revenue.
"The Company also derecognises a financial liability when its Grants that compensate the Company for expenses incurred are
terms are modified and the cash flows of the modified liability are recognised in profit and loss as other income on a systematic
substantially different. In this case, a new financial liability based basis in the periods in which the expenses are recognised, unless
on the modified terms is recognised at fair value. the conditions for receiving the grant are met after the related
On derecognition of a financial liability, the difference between the expenses have been recognised. In this case, the grant is
carrying extinguished and the consideration paid (including any recognised when it becomes receivable.
non-cash assets transferred or liabilities assumed) is recognised Export benefits are accounted for in the year of exports based on
in standalone statement of profit and loss." eligibility and when there is no uncertainty in receiving the same.
(iv) Offsetting J) INVESTMENTS
Financial assets and financial liabilities are offset and the net Investment in subsidiaries
amount presented in the balance sheet when, and only when, the
Investments in subsidiaries are carried at cost less accumulated
Company currently has a legally enforceable right to set off the
impairment losses, if any. Where an indication of impairment
amounts and it intends either to settle them on a net basis or to
exists, the carrying amount of investment is assessed and written
realise the asset and settle the liability simultaneously.
down immediately to its recoverable amount.
(v) Derivative financial instruments
K) EMPLOYEE BENEFITS
The Company holds derivative financial instruments such as
(a) Short term employee benefits:
foreign exchange forward contracts to mitigate the risk of changes
in foreign exchange rates on foreign currency assets or liabilities Short-term employee benefits are measured on an undiscounted

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ACCOUNTING POLICIES
basis and expensed as the related service is provided. A liability is expense and other expenses related to defined benefit plans are
recognised for the amount expected to be paid under short-term recognised in the statement of profit and loss.
cash bonus, if the Company has a present legal or constructive
When the benefits of a plan are changed or when a plan is
obligation to pay this amount as a result of past service provided
curtailed, the resulting change in benefit that relates to past
by the employee and the obligation can be estimated reliably.
service (‘past service cost’ or ‘past service gain’) or the gain or loss
(b) Defined contribution plan on curtailment is recognised immediately in standalone statement
of profit and loss. The Company recognises gains and losses on
Provident Fund and Employee State Insurance
the settlement of a defined benefit plan when the settlement
A defined contribution plan is a post-employment benefit plan occurs.
where the Company’s legal or constructive obligation is limited to
L) LEASES
the amount that it contributes to a separate legal entity. The
Company makes specified contributions towards Government At inception of a contract, the Company assesses whether a
administered provident fund and employee state insurance contract is, or contains, a lease. A contract is, or contains, a lease if
schemes. Obligations for contributions to defined contribution the contract conveys the right to control the use of an identified
plan are expensed as an employee benefits expense in the asset for a period of time in exchange for consideration. To assess
statement of profit and loss in period in which the related service is whether a contract conveys the right to control the use of an
provided by the employee. Prepaid contributions are recognised identified asset, the Company uses the definition of a lease in Ind
as an asset to the extent that a cash refund or a reduction in future AS 116.
payments is available.
i) As a lessee:
(c) Defined benefit plan
At commencement or on modification of a contract that contains a
A defined benefit plan is a post-employment benefit plan other lease component, the Company allocates the consideration in the
than a defined contribution plan. Post employment benefit contract to each lease component on the basis of its relative
comprises of Gratuity which is accounted for as follows: stand-alone prices. However, for the leases of property the
Company has elected not to separate non-lease components and
Gratuity Fund
account for the lease and non-lease components as a single lease
The Company’s net obligation in respect of defined benefit plans is component.
calculated separately for each plan by estimating the amount of
The Company recognises a right-of-use asset and a lease liability
future benefit that employees have earned in the current and prior
at the lease commencement date. The right-of-use asset is initially
periods, discounting that amount and deducting the fair value of
measured at cost, which comprises the initial amount of the lease
any plan assets.
liability adjusted for any lease payments made at or before the
The calculation of defined benefit obligations is performed commencement date, plus any initial direct costs incurred and an
annually by a qualified actuary using the projected unit credit estimate of costs to dismantle and remove the underlying asset or
method. When the calculation results in a potential asset for the to restore the underlying asset or the site on which it is located,
Company, the recognised asset is limited to the present value of less any lease incentives received.
economic benefits available in the form of any future refunds from
The right-of-use asset is subsequently depreciated using the
the plan or reductions in future contributions to the plan (‘the asset
straight-line method from the commencement date to the end of
ceiling’). To calculate the present value of economic benefits,
the lease term, unless the lease transfers ownership of the
consideration is given to any applicable minimum funding
underlying asset to the Company by the end of the lease term or
requirements.
the cost of the right-of-use asset reflects that the Company will
Remeasurements of the net defined benefit liability, which exercise a purchase option. In that case the right-of-use asset will
comprise actuarial gains and losses, the return on plan assets be depreciated over the useful life of the underlying asset, which is
(excluding interest) and the effect of the asset ceiling (if any, determined on the same basis as those of property, plant and
excluding interest), are recognised immediately in OCI. The equipment. In addition, the right-of-use asset is periodically
Company determines the net interest expense (income) on the reduced by impairment losses, if any, and adjusted for certain
net defined benefit liability (asset) for the period by applying the remeasurements of the lease liability.
discount rate determined by reference to market yields at the end
The lease liability is initially measured at the present value of the
of the reporting period on government bonds. This rate is applied
lease payments that are not paid at the commencement date,
on the net defined benefit liability (asset), both as determined at
discounted using interest rate implicit in the lease or, if that rate
the start of the annual reporting period, taking into account any
cannot be readily determined, the Company’s incremental
changes in the net defined benefit liability (asset) during the period
borrowing rate. Generally, the Company uses its incremental
as a result of contributions and benefit payments. Net interest
borrowing rate as the discount rate. The Company determines its

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ACCOUNTING POLICIES
incremental borrowing rate by obtaining interest rates from To classify each lease, the Company makes an overall
various external financing sources and makes certain assessment of whether the lease transfers substantially all of the
adjustments to reflects the terms of the lease and type of the asset risks and rewards incidental to ownership of the underlying asset.
leased. If this is the case, then the lease is a finance lease; if not, then it is
an operating lease. As a part of this assessment, the company
Lease payments included in the measurement of the lease liability
considers certain indicators such as whether the lease is for the
comprise the following:
major part of the economic life of the asset.
- fixed payments, including in-substance fixed payments
The Company recognises lease payments received under
- variable lease payments that depend on an index or rate, operating leases as income on a straight-line basis over the lease
initially measured using the index or rate as at the term as part of other income. In case of a finance lease, finance
commencement date; income is recognised over the lease term based on a pattern
- amounts expected to be payable under a residual value reflecting a constant periodic rate of return on the lessor’s net
guarantee; and investment in the lease.

- the exercise price under a purchase option that the If an arrangement contains lease and non-lease components,
Company is reasonably certain to exercise, lease payments then the Company applies Ind AS 115 Revenue from contracts
in an optional renewal period if the Company is reasonably with customers to allocate the consideration in the contract.
certain to exercise an extension option, and penalties for M) BORROWING COSTS
early termination of a lease unless the Company is
Borrowing cost are interest and other costs (including exchange
reasonably certain not to terminate early.
differences relating to foreign currency borrowings to the extent
The lease liability is measured at amortised cost using the that they are considered as adjustment to interest costs) incurred
effective interest method. It is remeasured when there is a change in connection with the borrowings of funds. Borrowing costs
in future lease payments arising from a change in an index or rate, directly attributable to the acquisition, construction or production
if there is a change in the Company’s estimate of the amount of qualifying assets, which are assets that necessarily take a
expected to be payable under a residual value guarantee, if the substantial period of time to get ready for their intended use or
Company changes its assessment of whether it will exercise a sale, are added to the cost of those assets, until such time as the
purchase, extension or termination option or if there is a revision assets are substantially ready for their intended use or sale.
in-substance fixed lease payment.
Interest income earned on the temporary investment of specific
When the lease liability is remeasured in this way, a corresponding borrowings pending their expenditure on qualifying assets is
adjustment is made to the carrying amount of the right-of-use deducted from the borrowing costs eligible for capitalisation.
asset or is recorded in profit and loss if the carrying amount of the
All other borrowing costs are recognised in the statement of profit
right-of-use asset has been reduced to zero. The Company
and loss in the year in which they are incurred.
presents right-of-use assets that do not meet the definition of
investment property in “property, plant and equipment” and lease N) SEGMENT REPORTING
liabilities separately in balance sheet within “Financial liabilities”.
The Company is engaged in manufacture and sale of Yarn,
Short term leases and low value assets: Knitted Fabric and Readymade Garments and thus the Company
has only one reportable segment (i.e.) Textile business.
The Company has elected not to recognise right-of-use assets
and lease liabilities for leases of low-value assets and short-term O) EARNINGS PER SHARE
leases, including IT equipment. The Company recognises the
Basic earnings per share are calculated by dividing the net profit
lease payments associated with these leases are recognized as
or loss for the period attributable to equity shareholders by the
an expense in standalone statement of profit and loss on a
weighted average number of equity shares outstanding during the
straight-line basis over the lease term.
year. The weighted average number of equity shares outstanding
ii) As a lessor during the period is adjusted for events including a bonus issue,
bonus element in a rights issue to existing shareholders, share
At inception or on modification of a contract that contains a lease
split and reverse share split (consolidation of shares). Diluted
component, the Company allocates the consideration in the
earnings per share is computed by dividing the profit (considered
contract to each lease component on the basis of their relative
in determination of basic earnings per share) after considering the
stand-alone prices.
effect of interest and other financing costs or income (net of
When the Company acts as a lessor, it determines at lease attributable taxes) associated with dilutive potential equity shares
inception whether each lease is a finance lease or an operating by the weighted average number of equity shares considered for
lease. deriving basic earnings per share adjusted for the weighted

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ACCOUNTING POLICIES
average number of equity shares that would have been issued against which to utilise the benefits of the temporary differences
upon conversion of all dilutive potential equity shares. and they are expected to reverse in the foreseeable future.
P) INCOME TAXES The carrying amount of deferred tax assets is reviewed at the end
of each reporting period and reduced to the extent that it is no
Income tax expense comprises current and deferred tax. It is
longer probable that sufficient taxable profits will be available to
recognised in standalone statement of profit and loss except to the
allow all or part of the asset to be recovered. Such reductions are
extent that it relates to a business combination or to an item
reversed when the probability of future taxable profit improves.
recognised directly in equity or in other comprehensive income.
Deferred tax liabilities and assets are measured at the tax rates
The Company has determined that interest and penalties related
that are expected to apply in the period in which the liability is
to income taxes, including uncertain tax treatments, do not meet
settled or the asset realised, based on tax rates (and tax laws) that
the definition of income taxes, and therefore accounted for them
have been enacted or substantively enacted by the end of the
under Ind AS 37 Provisions, Contingent Liabilities and Contingent
reporting period.
Assets
The measurement of deferred tax liabilities and assets reflects the
i) Current tax
tax consequences that would follow from the manner in which the
Current tax comprises the expected tax payable or receivable on Company expects, at the end of the reporting period, to recover or
the taxable income or loss for the year and any adjustment to the settle the carrying amount of its assets and liabilities.
tax payable or receivable in respect of previous years. The
Deferred tax assets and liabilities are offset if there is a legally
amount of current tax payable or receivable is the best estimate of
enforceable right to offset current tax liabilities and assets, and
the tax amount expected to be paid or received that reflects the
they relate to income taxes levied by same tax authority on same
uncertainty related to income taxes, if any. It is measured using tax
taxable entity, or on different tax entities, but they intend to settle
rates (and tax laws) enacted or substantively enacted by the
current tax liabilities and assets on a net basis or its tax assets and
reporting date.
liabilities will be realised simultaneously.
Current tax liabilities and current tax assets are offset only if there
iii) Recognition
is a legally enforceable right to set off the recognised amounts,
and it is intended to realise the asset and settle the liability on a net Current and deferred tax are recognised in the statement of profit
basis or simultaneously. and loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case,
ii) Deferred tax
the current and deferred tax are also recognised in other
Deferred tax is recognised on temporary differences between the comprehensive income or directly in equity respectively. Where
carrying amounts of assets and liabilities in the financial current tax or deferred tax arises from the initial accounting for a
statements and the corresponding tax bases used in the business combination, the tax effect is included in the accounting
computation of taxable profit. Deferred tax liabilities are generally for the business combination.
recognised for all taxable temporary differences. Deferred tax
Q) IMPAIRMENT
assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will Impairment of Financial instruments and contract assets
be available against which those deductible temporary
The Company recognises loss allowance for expected credit loss
differences can be utilised. Such deferred tax assets and
on financial assets measured at amortised cost.
liabilities are not recognised if the temporary difference arises
from the initial recognition (other than in a business combination) At each reporting date, the Company assesses whether financial
of assets and liabilities in a transaction that affects neither the assets carried at amortised cost are credit impaired. A financial
taxable profit nor the accounting profit. In addition, deferred tax asset is ‘credit impaired’ when one or more events that have a
liabilities are not recognised if the temporary difference arises detrimental impact on the estimated future cash flows of the
from the initial recognition of goodwill. financial asset have occurred.

Deferred tax liabilities are recognised for taxable temporary Evidence that a financial asset is credit - impaired includes the
differences associated with investments in subsidiaries, except following observable data:
where the Company is able to control the reversal of the - significant financial difficulty;
temporary difference and it is probable that the temporary
- a breach of contract such as a default or being past due;
difference will not reverse in the foreseeable future. Deferred tax
assets arising from deductible temporary differences associated - the restructuring of a loan or advance by the Company on
with such investments and interest are only recognised to the terms that the Company would not consider otherwise;
extent that it is probable that there will be sufficient taxable profits
- it is probable that the borrower will enter bankruptcy or other
financial reorganisation; or

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ACCOUNTING POLICIES
- the disappearance of an active market for a security such indication exists, then the asset’s recoverable amount is
because of financial difficulties. estimated. Goodwill is tested annually for impairment.
Loss allowances for trade receivables are measured at an amount For impairment testing, assets that do not generate independent
equal to lifetime expected credit losses. Lifetime expected credit cash inflows are grouped together into cash-generating units
losses are credit losses that result from all possible default events (CGUs). Each CGU represents the smallest group of assets that
over expected life of financial instrument. The maximum period generates cash inflows that are largely independent of the cash
considered when estimating expected credit losses is the inflows of other assets or CGUs.
maximum contractual period over which the Company is exposed
The recoverable amount of a CGU (or an individual asset) is the
to credit risk.
higher of its value in use and its fair value less costs to sell. Value in
When determining whether the credit risk of a financial asset has use is based on the estimated future cash flows, discounted to
increased significantly since initial recognition and when their present value using a pre-tax discount rate that reflects
estimating expected credit losses, the Company considers current market assessments of the time value of money and the
reasonable and supportable information that is relevant and risks specific to the CGU (or the asset).
available without undue cost or effort. This includes both
An impairment loss is recognised if the carrying amount of an
quantitative and qualitative information and analysis, based on
asset or CGU exceeds its estimated recoverable amount.
the Company’s historical experience and informed credit
Impairment losses are recognised in the statement of profit and
assessment and including forward looking information. The
loss. Impairment loss recognised in respect of a CGU is allocated
Company assumes that credit risk on a financial asset has
first to reduce the carrying amount of any goodwill allocated to the
increased significantly if it is past due.
CGU, and then to reduce the carrying amounts of the other assets
The Company considers a financial asset to be in default when: of the CGU (or group of CGUs) on a pro rata basis.
- the recipient is unlikely to pay its credit obligations to the An impairment loss in respect of assets for which impairment loss
Company in full, without recourse by the Company to actions has been recognised in prior periods, the Company reviews at
such as realising security (if any is held); or each reporting date whether there is any indication that loss has
decreased or no longer exists. An impairment loss is reversed if
- the financial asset is past due.
there has been a change in estimates used to determine
Measurement of expected credit losses recoverable amount. Such a reversal is made only to an extent
Expected credit losses are a probability - weighted estimate of that asset’s carrying amount does not exceed carrying amount
credit losses. Credit losses are measured as the present value of that would have been determined, net of depreciation/
all cash shortfalls (i.e. the difference between the cash flows due amortisation, if no impairment loss was recognised.
to the Company in accordance with the contract and the cash R) PROVISIONS, CONTINGENT LIABILITIES AND
flows that the Company expects to receive). CONTINGENT ASSETS
Presentation of allowance for expected credit losses in the Provisions:
balance sheet
Provisions are recognised when the Company has a present
Loss allowances for financial assets measured at amortised cost obligation (legal or constructive) as a result of a past event, it is
are deducted from the gross carrying amount of the assets. probable that an outflow of resources embodying economic
Write-off benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Provisions
The gross carrying amount of a financial asset is written off (either
are determined by discounting the expected future cash flows
partially or in full) to the extent that there is no realistic prospect of
(representing the best estimate of the expenditure required to
recovery. This is generally the case when the Company
settle the present obligation at the balance sheet date) at a pre-tax
determines that the debtor does not have assets or sources of
rate that reflects current market assessments of the time value of
income that could generate sufficient cash flows to repay the
money and the risks specific to the liability. The unwinding of the
amounts subject to the write off. However, financial assets that are
discount is recognised as finance cost. Expected future operating
written off could still be subject to enforcement activities in order to
losses are not provided for.
comply with the Company’s procedures for recovery of amounts
due. Where the Company expects some or all of the expenditure
required to settle a provision will be reimbursed by another party,
Impairment of Non-Financial Assets
the reimbursement is recognised when, and only when, it is
The Company’s non-financial assets, other than inventories and virtually certain that reimbursement will be received if the entity
deferred tax assets, are reviewed at each reporting date to
determine whether there is any indication of impairment. If any

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ACCOUNTING POLICIES
settles the obligation. The reimbursement is treated as a separate Ind AS 12 - Income Taxes
asset.
The amendments clarify how companies account for deferred tax
Contingent liabilities: on transactions such as leases and decommissioning obligations.
The amendments narrowed the scope of the recognition exemption
Contingent liability is a possible obligation arising from past
in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so
events and whose existence will be confirmed only by the
that it no longer applies to transactions that, on initial recognition,
occurrence or non-occurrence of one or more uncertain future
give rise to equal taxable and deductible temporary differences.
events not wholly within the control of the entity or a present
The Company does not expect this amendment to have any
obligation that arises from past events but is not recognised
significant impact in its standalone financial statements.
because it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation or the Ind AS 8 - Accounting Policies, Changes in Accounting
amount of the obligation cannot be measured with sufficient Estimates and Errors
reliability. The Company does not recognise a contingent liability
The amendments will help entities to distinguish between
but discloses its existence in the standalone financial statements.
accounting policies and accounting estimates. The definition of a
Contingent assets : change in accounting estimates has been replaced with a definition
of accounting estimates. Under the new definition, accounting
Contingent asset is not recognised in standalone financial
estimates are “monetary amounts in financial statements that are
statements since this may result in the recognition of income that
subject to measurement uncertainty”. Entities develop accounting
may never be realised. However, when the realisation of income is
estimates if accounting policies require items in financial
virtually certain, then the related asset is not a contingent asset
statements to be measured in a way that involves measurement
and is recognized.
uncertainty. The Company does not expect this amendment to have
Provisions, contingent liabilities and contingent assets are any significant impact in its standalone financial statements.
reviewed at each Balance Sheet date.
S) ONEROUS CONTRACTS
A contract is said to be onerous when the expected economic
benefits to be derived by the Company from the contract are lower
than the unavoidable cost of meeting its obligations under the
contract. The provision for onerous contract is measured at the
present value of the lower of the expected cost of terminating the
contract and the expected net cost of continuing with the contract,
which is determined based on the incremental costs of fulfilling the
obligation under the contract and an allocation of other costs
directly related to fulfilling the contract. Before such a provision is
made, the Company recognises any impairment loss on the
assets associated with the contract.
Recent pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or
amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. On
March 31, 2023, MCA amended the Companies (Indian
Accounting Standards) Rules, 2015 by issuing the Companies
(Indian Accounting Standards) Amendment Rules, 2023,
applicable from April 1, 2023, as below:
Ind AS 1 – Presentation of Financial Statements
The amendments require companies to disclose their material
accounting policies rather than their significant accounting
policies. Accounting policy information, together with other
information, is material when it can reasonably be expected to
influence decisions of primary users of general purpose financial
statements. The Company does not expect this amendment to
have any significant impact in its standalone financial statements.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 99

 4. Property, Plant & Equipment, Intangible Asset and Capital work-in-Progress (` in Lakhs)
Property, Plant & Equipment Intangible

100
Capital
Leased Freehold Factory Non- Plant and Windmill Electricals Furniture Computers Vehicles Total assets
Particulars work-in (Computer
NOTES
Asset - Land Building factory Equipment and and progress
Land Building Fixture accessories software )

Gross carrying amount

As at 01.04.2021 550 8,574 23,340 10,568 76,321 12,845 5,186 2,821 537 1,262 1,42,004 1,742 260
Additions - 4,886 - 1,263 5,743 - 21 412 113 123 12,561 491 10
Disposals / adjustments - - - - (489) - - (60) (2) (14) (565) (1,742) -
As at 31.03.2022 550 13,460 23,340 11,831 81,575 12,845 5,207 3,173 648 1,371 1,54,000 491 270
Additions - 102 1,177 457 16,105 - 64 524 96 396 18,921 2,126 41

K.P.R. MILL LIMITED

Disposals / adjustments - (23) - - (1,385) - (28) (83) (13) (169) (1,701) (491) -
As at 31.03.2023 550 13,539 24,517 12,288 96,295 12,845 5,243 3,614 731 1,598 1,71,220 2,126 311
Accumulated Depreciation and
amortisation
As at 01.04.2021 10 - 4,513 991 42,089 9,556 2,743 1,501 369 552 62,324 - 165
Depreciation and amortisation
expenses 6 - 873 208 4,569 1,104 343 196 86 155 7,540 - 25
Disposals / adjustments - - - - (241) - - (42) (2) (12) (297) - -
As at 31.03.2022 16 - 5,386 1,199 46,417 10,660 3,086 1,655 453 695 69,567 - 190
Depreciation and amortisation expense 6 - 897 297 5,335 400 313 228 87 176 7,739 - 25

ANNUAL REPORT 2022-23

Disposals / adjustments - - - - (910) - (16) (22) (11) (51) (1,010) - -
As at 31.03.2023 22 - 6,283 1,496 50,842 11,060 3,383 1,861 529 820 76,296 - 215
Net carrying amount
As at 31.03.2022 534 13,460 17,954 10,632 35,158 2,185 2,121 1,518 195 676 84,433 491 80
As at 31.03.2023 528 13,539 18,234 10,792 45,453 1,785 1,860 1,753 202 778 94,924 2,126 96

Notes:
1. Property, plant and equipment includes non-factory building given on lease with a gross carrying amount of ` Nil as at 31.03.2023 (Pr.Yr. ` 11,831 lakhs) and a net
carrying amount of ` Nil as at 31.03.2023 (Pr.Yr.` 10,632 lakhs).
2. Refer note 18 and 22 for assets given as securities for borrowings.
3. As per Ind - AS 20,"Accounting for Government Grants and Disclosure of Government Assistance", the Company has opted to present the grant related to assets as
deduction from the carrying value of such specfic assets. For year ended 31.03.2023, such amount deducted from property,plant and Equipment is ` Nil (Pr.Yr. ` 34
lakhs)
NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023
 4.1 Title deeds of Immovable Properties not held in name of the Parent Company: NOTES
(a) Particulars As at 31.03.2023 As at 31.03.2022

(i) Relevant line item in the balance sheet Property, Plant and Equipment Property, Plant and Equipment
(ii) Description of item of property Freehold Land Freehold Land
(iii) Gross carrying value (` in Lakhs) 67 67
(iv) Title deeds held in the name of K.P.R. Spinning Mill Private Limited K.P.R. Spinning Mill Private Limited
(v) Whether title deed holder is a promoter, director or relative of
promoter/director or employee of promoter /director No No
(vi) Property held since which date 01.04.2005 01.04.2005
(vii) Reason for not being held in the name of the Company The title deeds are in the name of K.P.R. Spinning The title deeds are in the name of K.P.R. Spinning
Mill Private Limited, erstwhile Company that was Mill Private Limited, erstwhile Company that was
merged with the Company under section 391 to 394 merged with the Company under section 391 to 394
of the Companies Act, 1956 in terms of the approval of the Companies Act, 1956 in terms of the approval
of Honourable High Court(s) of judicature. of Honourable High Court(s) of judicature.

(viii) Whether disputed No No

(b) Particulars As at 31.03.2023 As at 31.03.2022

(i) Relevant line item in the balance sheet Property, Plant and Equipment Property, Plant and Equipment
(ii) Description of item of property Freehold Land Freehold Land
(iii) Gross carrying value (` in Lakhs) 64 64
(iv) Title deeds held in the name of K.P.R. Mill Private Limited K.P.R. Mill Private Limited
(v) Whether title deed holder is a promoter, director or relative of
promoter/director or employee of promoter /director No No

K.P.R. MILL LIMITED

(vi) Property held since which date 01.04.2005 01.04.2005
(vii) Reason for not being held in the name of the Company The title deeds are in the name of K.P.R. Mill Private The title deeds are in the name of K.P.R. Mill Private
Limited, erstwhile Company that was merged with Limited, erstwhile Company that was merged with
the Company under section 391 to 394 of the the Company under section 391 to 394 of the
Companies Act, 1956 in terms of the approval of Companies Act, 1956 in terms of the approval of
Honourable High Court(s) of judicature. Honourable High Court(s) of judicature.

(viii) Whether disputed No No

ANNUAL REPORT 2022-23 101

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023
102
Particulars As at 31.03.2023 As at 31.03.2022
NOTES

(i) Relevant line item in the balance sheet Property, Plant and Equipment Property, Plant and Equipment
(ii) Description of item of property Freehold Land Freehold Land
(iii) Gross carrying value (` in Lakhs) 10 10
(iv) Title deeds held in the name of K.P.R. Knits K.P.R. Knits
(v) Whether title deed holder is a promoter, director or relative of
promoter/director or employee of promoter /director No No
(vi) Property held since which date 01.04.2005 01.04.2005

K.P.R. MILL LIMITED

(vii) Reason for not being held in the name of the Company The title deeds are in the name of K.P.R. Knits, The title deeds are in the name of K.P.R. Knits,
erstwhile Company that was acquired through out - erstwhile Company that was acquired through out -
right purchase. right purchase.

(viii) Whether disputed No No

4.2 Capital work-in-progress (CWIP) ageing schedule:

As at 31.03.2023 (` in Lakhs)

Amount in CWIP for a period of

ANNUAL REPORT 2022-23

Less than 1 year 1-2 years 2-3 years More Than 3 years Total
Projects in progress 2,126 - - - 2,126
Projects temporarily suspended - - - - -

Note: The Company does not have any CWIP which is overdue or has exceeded its cost compared to its original plan and hence CWIP completion schedule is not applicable.

As at 31.03.2022 (` in Lakhs)

Amount in CWIP for a period of

Less than 1 year 1-2 years 2-3 years More Than 3 years Total
Projects in progress 491 - - - 491
Projects temporarily suspended - - - - -

Note: The Company does not have any CWIP which is overdue or has exceeded its cost compared to its original plan and hence CWIP completion schedule is not applicable.
NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023
 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022

FINANCIAL ASSETS
5 INVESTMENTS
(See accounting policy in note 3((H) and note 3(J))
A) Investments measured at cost:
Unquoted (all fully paid-up)
a) In Equity instruments
i) Indian subsidiaries
10 10
1,00,000 (Pr.Yr. 1,00,000) equity shares of ` 10 each in Quantum Knits Private Limited.
5 5
50,000 (Pr.Yr. 50,000) equity shares of ` 10 each in Galaxy Knits Limited.
151 151
15,10,000 (Pr.Yr. 15,10,000) equity shares of ` 10 each in Jahnvi Motor Private Limited.
4,16,666 (Pr.Yr. 4,16,666) equity shares of ` 10 each at a premium of ` 20 each in Jahnvi
125 125
Motor Private Limited.
10,50,000 (Pr.Yr. 10,50,000) equity shares of ` 10 each at a premium of `140 per share in
1,575 1,575
K.P.R. Sugar Mill Limited.
100 100
10,00,000 (Pr.Yr. 10,00,000) equity shares of ` 10 each in K.P.R.Sugar Mill Limited.
100 100
10,00,000 (Pr. Yr. 10,00,000) equity shares of `10 each in KPR Sugar and Apparels Limited.
Deemed equity in Jahnvi Motor Private Limited, K.P.R.Sugar Mill Limited and KPR Sugar
657 -
and Apparels Limited (refer note 5.3 below).
ii) Foreign subsidiaries
41,000 (Pr.Yr. 41,000) equity shares of Singapore Dollar 1 each in KPR Mill Pte Limited,
Singapore. 21 21
1,68,855 (Pr.Yr. 1,68,855) equity shares of Birr 100 each in KPR Exports PLC. Ethiopia. 424 424
Less : Provision for impairment of investment in KPR Exports PLC, Ethiopia (refer note 33,
39 and 48). (424) (424)
b) Investment in Preference shares of subsidiaries
18,91,500 (Pr.Yr.37,83,000) 7% Optionally Convertible Non - Cumulative Redeemable
Preference shares of ` 10 each at a premium of ` 140 per share in K.P.R.Sugar Mill Limited. 2,837 5,675
70,00,000 (Pr.Yr.50,00,000) 7% Optionally Convertible Non - Cumulative Redeemable
Preference shares of ` 100 each at a premium of ` 900 per share in KPR Sugar and 70,000 50,000
Apparels Limited.
B) Investment measured at fair value through profit and loss
Unquoted (all fully paid-up)
Investment in equity shares of other entity
1,50,000 (Pr.Yr. 1,50,000) equity shares of ` 100 each of Somanur Water Scheme Pvt Ltd. 150 150
Total (A + B) 75,731 57,912
Aggregate amount of unquoted investments 76,155 58,336
Aggregate amount of impairment in value of investments (424) (424)
Aggregate amount of quoted investments in market value thereof - -

5.1 During the year, K.P.R. Sugar Mill Limited has redeemed 18,91,500 7% Optionally Convertible Non - Cumulative Redeemable Preference Shares
(issued at ₹ 150 with a face value of ₹ 10 per share) at a redemption price of ₹ 275 per share. The resultant gain of ₹ 2,364.38 lakhs on such
redemption has been presented as other income. Refer note 28.
5.2 Information about the Company's fair value measurement is included in note 39.
5.3 The amount shown as deemed equity investments is in respect of financial guarantee given without any consideration. Also refer note 36.
5.4 Also, refer note 40 for transactions with related parties.
5.5 Also, refer note 46.
6 LOANS
(See accounting policy in note 3(H))
Loans to related parties considered good - unsecured
KPR Mill Pte. Ltd, Singapore 223 204
Loans to related parties - credit impaired
KPR Exports PLC, Ethiopia 118 118
Less: Loss allowance (refer note 33, 39 and 48) (118) (118)
223 204
Non-current Loans 223 204
Current Loans - -
The Company provided loan to its subsidiary (KPR Mill Pte. Ltd, Singapore) which carries interest of 4% p.a. Repayment of loan is as per the
terms of the agreement.
Information about the Company's exposure to credit risk and market risk are disclosed in note 39.
For terms and conditions relating to related party loans, refer note 40.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 103

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)

As at As at
S.No Particulars
31.03.2023 31.03.2022
7 OTHER FINANCIAL ASSETS
(See accounting policy in note 3(H))
Security deposits 3,406 2,343
Investment in wholly - owned subsidiaries pending allotment
KPR Exports PLC, Ethiopia 1,170 1,170
KPR Mill Pte. Limited, Singapore 7 7
Less: Loss allowance (refer note 33, 39 and 48) (1,170) (1,170)
3,413 2,350

Information about the Company's exposure to credit risk and market risk are disclosed in note 39
For terms and conditions relating to related party, refer note 40

8 OTHER NON - CURRENT ASSETS

Capital advances 1,754 3,479
Others (Corporate social responsibility (CSR) pre - spent)* 3,454 -
5,208 3,479
*Refer note 15 and 38.
9 INVENTORIES
(See accounting policy in note 3(A))
Raw materials 73,318 54,812
Work-in-progress * 5,196 4,698
Finished goods 39,749 20,776
Stores, spares, packing and others 4,984 4,904
1,23,247 85,190
* Includes Cotton ` 3,863 Lakhs (Pr. Yr. ` 3,605 Lakhs), Fabric ` 34 Lakhs (Pr. Yr. ` 30 Lakhs) and Garments ` 1,299 Lakhs (Pr. Yr. ` 1,063 Lakhs)
The mode of valuation of inventories has been stated in note 3(A).
Refer note 18 and 22 for assets given as security for borrowings.

10 FINANCIAL ASSETS
CURRENT INVESTMENTS
(See accounting policy in note 3(H))
Investments in mutual funds (quoted)
Investments measured at fair value through profit and loss
Nippon India Mutual Fund, LIC Mutual Fund & IDBI Mutual Fund (also refer note 45) 12,716 27,403
Aggregate amount of quoted investments and market value thereof 12,716 27,403
Aggregate amount of unquoted investments - -
Aggregate amount of impairment in value of investments - -

The Company's exposure to credit risk and market risk related to investments has been disclosed in note 39.
11 TRADE RECEIVABLES
(See accounting policy in note 3(H))
Trade receivables considered good - secured - -
Trade receivables considered good - unsecured 49,209 39,263
Trade receivables which have significant increase in credit risk - -
Trade receivables - credit impaired 293 114
Total Trade receivables 49,502 39,377
Less: Loss allowance (293) (114)
Net trade receivables 49,209 39,263
Movement of loss allowance in trade receivables
Opening balance 114 23
Allowances made / (reversed) during the year 179 121
Written off - (30)
Closing balance 293 114

104 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
Trade Receivables ageing schedule:
As at 31.03.2023 (` in Lakhs)
Outstanding for following periods from due date of payment
Particulars Less than 6 months - 1-2 years 2-3 years More Than Total
6 months 1 year 3 years

(i) Undisputed Trade receivables - considered good 45,668 3,531 10 - - 49,209

(ii) Undisputed Trade receivables - which have significant

- - - - - -
increase in credit risk

(iii) Undisputed Trade receivables - credit impaired - - - - 293 293

(iv) Disputed Trade receivables - considered good - - - - - -

(v) Disputed Trade receivables - which have significant - - - - - -

increase in credit risk

(vi) Disputed Trade receivables - credit impaired - - - - - -

Total Trade receivables 45,668 3,531 10 - 293 49,502

Less: Loss allowance (293)

Net trade receivables 45,668 3,531 10 - 293 49,209

As at 31.03.2022 (` in Lakhs)

Outstanding for following periods from due date of payment

Particulars Less than 6 months - 1-2 years 2-3 years More Than Total
6 months 1 year 3 years

(i) Undisputed Trade receivables – considered good 39,017 55 - 191 - 39,263

(ii) Undisputed Trade receivables - which have significant - - - - - -

increase in credit risk

(iii) Undisputed Trade receivables - credit impaired - - - 91 23 114

(iv) Disputed Trade receivables - considered good - - - - - -

(v) Disputed Trade receivables - which have significant - - - - - -

increase in credit risk

(vi) Disputed Trade receivables - credit impaired - - - - - -

Total Trade receivables 39,017 55 - 282 23 39,377

Less: Loss allowance (114)

Net trade receivables 39,017 55 - 282 23 39,263

(i) For receivables secured against borrowings, refer note 18 and 22.
(ii) The Company's exposure to credit and currency risks and loss allowances related to trade receivables are disclosed in note 39.
(iii) For terms and conditions relating to related party receivables, refer note 40
(iv) Also refer note 33 and 48.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 105

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)

As at As at
S.No Particulars
31.03.2023 31.03.2022
12 CASH AND CASH EQUIVALENTS
(See accounting policy in note 3(B))
Balance with banks
i) In current accounts 2,305 2,752
ii) In EEFC accounts 1,682 6,784
Cash on hand 63 25
4,050 9,561
13 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
(See accounting policy in note 3(B))
Balance with banks held as margin money deposit 225 476
Unclaimed dividend accounts 1 3
226 479
14 OTHER FINANCIAL ASSETS
(See accounting policy in note 3(H))
Interest accrued on bank deposits and other deposits 120 345
Technology upgradation fund subsidy receivable 97 97
Term deposit with Non-Banking Financial Companies - 4,000
Others 35 -
252 4,442
Information about the Company's exposure to credit risk and market risk are disclosed in note 39.
15 OTHER CURRENT ASSETS
Advances other than capital advances:
Advance to suppliers 7,229 9,216
Balances with government authorities 5,704 4,032
Export incentive receivable 1,028 6,779
Others (CSR pre - spent)* 1,546 -
Others (primarily prepaid expenses) 501 576
16,008 20,603
*Refer note 8 and 38.

16 SHARE CAPITAL
a) Authorised
45,00,00,000 (Pr.Yr. 45,00,00,000) equity shares of ` 1 (` 1) each with voting rights. 4,500 4,500
10,00,000 (Pr.Yr.10,00,000) 7% Redeemable Cumulative Non-Convertible Preference 1,000 1,000
shares of ` 100 each.
5,500 5,500
b) Issued, subscribed and fully paid up
34,18,14,000 (Pr.Yr. 34,40,50,000) equity shares of ` 1 ( ` 1) each fully paid-up with voting 3,418 3,441
rights.
3,418 3,441
16.1 Term / rights to shares
Equity shares
45,00,00,000 (Pr.Yr. 45,00,00,000) equity shares of ` 1 (` 1) each with voting rights. The holder of each equity share is entitled to
one vote per share. The Company declares and pays dividends in Indian rupees.
The Board declared and paid an interim dividend of ₹ 2 (face value of ` 1/- each) for the year 2022-23 (Pr.Yr. ` Nil). (face value of
`1/- each).
The Board has recommended a final dividend of 200% (` 2/- per share of the face value of ` 1/- each) for the year 2022-23 (Pr.Yr.
` 0.15/- per share) subject to the approval of the shareholders in Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive residual assets of the Company,
after settling the dues of preferential shareholders and other creditors as per priority. The distribution will be in proportion to the
number of equity shares held by the shareholders.

106 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES

16.2 Reconciliation of the shares outstanding at the beginning and at the end of the year
Equity Shares with voting rights As at 31.03.2023 As at 31.03.2022
Particulars Number of Shares (` in Lakhs) Number of Shares* (` in Lakhs)

At the beginning of the year 34,40,50,000 3,441 34,40,50,000 3,441

Issued during the year - - - -
Less: Buy-back of equity shares (refer note 41) 22,36,000 23 - -
At the end of the year 34,18,14,000 3,418 34,40,50,000 3,441

* Also refer note 16.3 on sub-division of one equity share of ` 5/- each fully paid up into five equity shares of `1/- each fully
paid up.

16.3 Pursuant to the approval of the shareholders at the Annual General Meeting of the Company held on 09.09.2021, one equity
share of ` 5/- each fully paid up was sub-divided into five equity shares of ` 1/- each fully paid up, with effect from the record date,
i.e., 27.09.2021.
16.4 Details of Shareholders holding more than 5% of Shares in the Company
Equity Shares

As at 31.03.2023 As at 31.03.2022
Particulars
% of total % of total
Number of shares Number of shares*
shares shares

Sri K.P.Ramasamy 7,30,30,816 21.37 7,16,21,810 20.82

Sri KPD Sigamani 7,30,31,217 21.37 7,43,56,810 21.61
Sri P.Nataraj 7,30,31,217 21.37 7,43,56,810 21.61
L&T Mutual Fund Trustee Limited - - 1,69,99,064 4.94

As per the 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 ownership of shares as
at the balance sheet date.
* Also refer note 16.3 on sub-division of one equity share of `5/- each fully paid up into five equity shares of `1/- each fully paid
up.

16.5 For the period of five years immediately preceding the date at which the Balance Sheet is prepared:
(i) The Company has not issued any shares without payment being received in cash. Also refer note 16.3.
(ii) The Company has not issued any bonus shares.
(iii) The aggregate number of equity shares bought back by the Company is 3,50,14,920 of `1/- each, fully paid up
(Pr.Yr. 3,27,78,920 of ` 1/- each, fully paid up). Also refer note 16.3.
16.6 Shareholding of promoters
As at 31.03.2023 As at 31.03.2022
Promoter Name % change during % change during
Number of Shares % the year
Number of Shares* % the year

Equity shares:
Sri K.P.Ramasamy @ 7,30,30,816 21.37 0.55 7,16,21,810 20.82 (0.79)
>

Sri KPD Sigamani 7,30,31,217 21.37 (0.24) 7,43,56,810 21.61 0.00

>

Sri P.Nataraj 7,30,31,217 21.37 (0.24) 7,43,56,810 21.61 0.00

* Also refer note 16.3 on sub-division of one equity share of `5/- each fully paid up into five equity shares of ` 1/- each fully paid up.
@ During the previous year, Sri K.P.Ramasamy gifted 27,35,000 shares to his immediate relatives. The total promoter and
promoter group holding remains unchanged.
>

During the year Sri KPD.Sigamani and Sri P.Nataraj gifted 9,06,437 shares each to Sri K.P.Ramasamy. The total Promoter and
Promoter group holding remains unchanged.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 107

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022
17 OTHER EQUITY
Securities premium
Opening Balance 15,233 15,233
Changes during the year (15,233) -
Closing balance (A) - 15,233
Balance in securities premium represents amount received on issue of shares in excess of par value.The same may be utilised
in accordance with the provisions of the Companies Act, 2013.
Capital Redumption Reserve
Opening balance 1,827 1,827
Add: Capital redemption on buy-back 23 -
Closing balance (B) 1,850 1,827
Balance in capital redemption reserve represents an amount equal to the nominal value of share bought back. The same may be utilised
in accordance with the provisions of the Companies Act, 2013.
General reserve
Opening Balance 24,716 24,716
Closing balance (C) 24,716 24,716
The General reserve represents an amount transferred from retained earnings from time to time for appropriation purpose which can be
utilised for meeting future obligations. As the general reserve is created by a transfer from one component of equity to another and is not
an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit and loss.
Retained earnings
Opening balance 2,18,001 1,45,437
Add: Profit for the year 63,504 73,080
Less:
Interim dividend (` 2.00 per share) (Pr.Yr. ` Nil) 6,836 -
Final dividend ( ` 0.15 per share) (Pr.Yr. ` 0.15/- per share) 513 516
Premium on buy-back of equity shares 2,745 -
Tax on buy-back of equity shares 4,076 -
Transfer to Capital redemption reserve 23 -
Closing balance (D) 2,67,312 2,18,001
Retained earnings represents profits generated and retained by the Company post distribution of dividends to the equity shareholders
in the respective years. This reserve can be utilized for distribution of dividend by the Company considering the requirements of the
Companies Act, 2013.
Total (A+B+C+D) 2,93,878 2,59,777
NON - CURRENT LIABILITIES
FINANCIAL LIABILITIES
18 BORROWINGS
(See accounting policy in note 3(H))
Term loan - measured at amortised cost
From others (secured) 34 38
Less: amount included under current borrowings (refer note 22) (5) (7)
29 31
Information about the company's exposure to interest rate and liquidity risks is included in note 39.
18.1 (i) The Company has availed a term loan from Daimler Financial Services India Pvt Ltd in respect of which balance as at
31.03.2023 was ` 34 lakhs (Pr.Yr. ` 38 lakhs). The loan is repayable in 36 monthly instalments commencing from December 2021.
This term loan is secured by Vehicle purchased out of the loan.
18.2 Interest rate relating to term loans from banks/others is 8.75% per annum (Pr.Yr. 8.75% to 10.45%).
18.3 The Company has not defaulted in the repayment of principal and interest during the year.

108 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)

As at As at
S.No Particulars
31.03.2023 31.03.2022
19 OTHER FINANCIAL LIABILITIES
Premium on financial guarantee 311 -
311 -
Information about the Company's exposure to liquidity risks is included in note 39.
For terms and conditions relating to related party balances, refer note 40.
Also refer note 24.
20 DEFERRED TAX LIABILITIES (net)
(See accounting policy in note 3(P))
Deferred tax liabilities 5,817 4,368
Net deferred tax liabilities 5,817 4,368
For movement in deferred tax liabilities, refer note 35.
21 OTHER NON - CURRENT LIABILITIES
Security deposit from dealers - FASO 1 3
1 3
CURRENT LIABILITIES
FINANCIAL LIABILITIES
22 BORROWINGS
(See accounting policy in note 3(H))
Loans repayable on demand from banks - secured
Working capital loans 575 810
Packing credit loans 49,190 40,937
Current maturities of non-current borrowings (refer note 18) 5 7
49,770 41,754
Information about the company's exposure to currency, interest rate and liquidity risks is included in note 39.
22.1 i) Loans for working capital and packing credit are secured by pari-passu first charge on the current assets of the Company and
pari-passu second charge on entire block of assets of the Company.
ii) The Company has not defaulted in its repayments of the loans and interest during the year.
iii) Interest rate relating to working capital loans are in the range of 7.30% to 7.85% per annum (Pr.Yr. 7.00% to 7.85%). Interest
rates relating to INR packing credit loans are in the range of 4.40% to 7.43% per annum (Pr.Yr. 2.40% to 3.80%).

22.2 Reconciliation of cashflows from financing activities

Cash and cash equivalents 4,050 9,561
Non-current borrowings (29) (31)
Current borrowings (49,770) (41,754)
Net debt* (45,749) (32,224)

Other assets Liabilities from financing activities

Particulars Total
Cash and cash Non-current Current
equivalents borrowing borrowings
Net debt as at 01.04.2022 9,561 (31) (41,754) (32,224)
Net cash flows (5,511) 2 (8,016) (13,525)
Net debt as at 31.03.2023 4,050 (29) (49,770) (45,749)

Net debt as at 01.04.2021 4,503 (990) (30,740) (27,227)

Net cash flows 5,058 959 (11,014) (4,997)
Net debt as at 31.03.2022 9,561 (31) (41,754) (32,224)

* Net debt is calculated as sum of non-current borrowings and current borrowings less cash and cash equivalents.
22.3 Term loans were applied for the purpose they were obtained. Further, short-term loans availed have not been utilised for long-
term purposes by Company.
22.4 Quarterly returns or statements of current assets filed by the Company for the sanctioned borrowings with banks or financial
institutions are in agreement with the books of accounts.

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 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022

23 TRADE PAYABLES
(See accounting policy in note 3(H))
(A) Total outstanding dues of micro enterprises and small enterprises ('MSME'); and 645 1,454
(B) Total outstanding dues of creditors other than micro enterprises and small 19,285 10,037
enterprises
19,930 11,491
Trade payables ageing schedule:
As at 31.03.2023 (` in Lakhs)

Outstanding for following periods from the due date of payment

Particulars Less than More Than Total
1-2 years 2-3 years
1 year 3 years

Undisputed dues
MSME 645 - - - 645
Others 19,285 - - - 19,285
Disputed dues
MSME - - - - -
Others - - - - -
Total 19,930 - - - 19,930

As at 31.03.2022 (` in Lakhs)

Outstanding for following periods from the due date of payment

Particulars Less than More Than Total
1-2 years 2-3 years
1 year 3 years

Undisputed dues
MSME 1,454 - - - 1,454
Others 10,037 - - - 10,037
Disputed dues
MSME - - - - -
Others - - - - -
Total 11,491 - - - 11,491

(i) All the trade payables are current and non-interest bearing.
(ii) Refer note 37 for details of dues to micro enterprises and small enterprises.
(iii) The Company's exposure to currency and liquidity risks related to trade payables is disclosed in note 39.
(iv) For terms and conditions relating to related party payables, refer note 40.

24 OTHER FINANCIAL LIABILITIES

(See accounting policy in note 3(H))
Premium on financial guarantee (refer note 19) 177 -
Unclaimed dividend 1 3
Other 31 40
209 43

The Company's exposure to currency and liquidity risks related to other financial liabilities is disclosed in note 39.
For terms and conditions relating to related party balances, refer note 40.

110 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
(` in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022

25 OTHER CURRENT LIABILITIES

Advance payment from customers 7070 5,185
Statutory dues payable 1430 1,327
Employee benefits payable 5512 6,798
14,012 13,310
Notes :
(I) Revenue recognised during the year that was included in the contract liability balance at the beginning of the year
amounts to ` 5,185 lakhs (Pr.Yr ` 3,752 lakhs).
(ii) For terms and conditions relating to related party, refer note 40.

26 CURRENT TAX LIABILITIES (NET)

(See accounting policy in note 3(P))
Provision for tax (net of advance tax) 54 1,672
54 1,672

27 REVENUE FROM OPERATIONS

(See accounting policy in note 3(E))
Sale of products 4,49,409 3,89,495
Sale of services 7,672 5,374
Other operating revenues 16,874 12,498
Revenue from operations 4,73,955 4,07,367
Disaggregation of revenue from contracts with customers
In the following disclosure, revenue from contract with customers has been disaggregated based on the nature and type of
goods sold.
27.1 Sale of products
Garment 2,00,312 1,66,911
Yarn 1,94,744 1,81,859
Fabric 38,327 27,895
Cotton waste 17,679 11,408
Accessories and others 1,131 2,144
4,52,193 3,90,217
Less: Discount allowed 2,784 722
4,49,409 3,89,495
27.2 Sale of services
Processing and fabrication income 7,672 5,374
7,672 5,374
27.3 Other operating revenues
Export incentives 13,144 9,577
Others (primarily scrap sales) 3,730 2,921
16,874 12,498
Refer note 40 for sales made to related parties.

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 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
Year ended Year ended
S.No Particulars 31.03.2023 31.03.2022

28 OTHER INCOME
(See accounting policy in note 3(F))
Interest income on financial assets measured at amortised cost:
- Balance with banks held as margin money deposit 88 233
- Others 124 72
Dividend income from non-current investments in subsidiaries 4,684 26
Gain on sale of investments (net) 3,627 1,359
Investment promotion subsidy 1,101 3,478
Net gain on sale of property, plant and equipment 2,074 296
Net gain on account of foreign exchange fluctuations 19 -
Rental income (refer note 43) 459 2,947
Miscellaneous income 836 52
13,012 8,463
Refer note 40 for transactions with related parties.
29 COST OF MATERIALS CONSUMED
a) Inventory of materials at the beginning of the year
Cotton 44,591 40,441
Dyes and chemicals 557 478
Yarn, fabric and polyester 9,664 7,041
54,812 47,960
b) Add: Purchases
Cotton 2,31,458 1,65,804
Dyes and chemicals 10,346 8,806
Yarn, fabric, polyester and garments 60,212 42,187
Trims, packing and others 20,463 17,930
3,22,479 2,34,727
c) Less : Inventory of materials at the end of the year
Cotton 60,988 44,591
Dyes and chemicals 509 557
Yarn, fabric and polyester 11,821 9,664
73,318 54,812
Cost of materials consumed (a + b - c) 3,03,973 2,27,875
Refer note 40 for transactions with related parties.

30 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK- IN-

TRADE AND WORK-IN-PROGRESS
a) Inventories at the beginning of the year
Finished goods 20,776 13,701
Work-in-progress 4,698 3,450
25,474 17,151
b) Inventories at the end of the year
Finished goods 39,749 20,776
Work-in-progress 5,196 4,698
44,945 25,474
Net decrease / (increase) (19,471) (8,323)

112 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
Year ended Year ended
S.No Particulars
31.03.2023 31.03.2022

31 EMPLOYEE BENEFITS EXPENSE

(See accounting policy in note 3(K))
Salaries, wages and bonus 36,675 33,991
Contribution to provident and other funds 3,373 3,051
Staff welfare expenses 6,152 6,247
46,200 43,289
Refer note 40 for transactions with related parties.
32 FINANCE COSTS
(See accounting policy in note 3(M))
Interest expense on financial liabilities measured at amortised cost:
Borrowings from banks/others:
- Term loans 3 40
- Working capital loans and packing credit loans 1,665 721
Interest on shortfall in payment of income tax 377 239
Other borrowing costs 625 339
2,670 1,339
33 OTHER EXPENSES
Power and fuel 21,287 17,262
Consumption of stores, spares and packing materials 4,685 5,062
Repairs and maintenance
Building 1,843 950
Machinery 8,771 7,796
Others 847 684
Insurance 604 564
Legal and professional charges 251 261
Rent (refer note 40 and 43) 3,114 3,092
Rates and taxes 219 154
Payment to auditors (refer note 34) 21 16
Travelling and conveyance 1,069 871
Expenditure on Corporate Social Responsibility (CSR) (refer note 38) 1,308 1,027
Donations 28 23
Net loss on foreign currency transactions - 16
Impairment loss on financial assets (refer note 11, 39, 48) 182 121
Impairment loss on non-current investment (refer note 6, 39 and 48) - 1,707
Miscelleneous expenses 786 543
Freight and forwarding 2,431 2,279
Sales commission 1,434 3,288
Other selling expenses 726 420
49,606 46,136
Refer note 40 for transactions with related parties.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 113

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
(` in Lakhs)

S.No Particulars 2022-23 2021-22

34 Payment to auditors
Statutory audit fees 20 15
Reimbursement of expenses 1 1
Total 21 16

35 Income Tax

35.1 Income tax recognised in the statement of profit and loss

Current tax
Current income tax charge 18,324 24,870
Tax expense relating to prior years (802) (75)
Total (A) 17,522 24,795
Deferred tax
(Benefits) / charge attributable to origination and reversal of temporary differences 1,449 74
Total (B) 1,449 74
Total (A + B) 18,971 24,869
There are no items of income tax recognised in other comprehensive income.

35.2 Reconciliation of effective tax rate (` in Lakhs)

Effective tax rate Amount

Particulars
2022-23 2021-22 2022-23 2021-22

Profit before tax 82,475 97,949

Tax using the Company's domestic tax rate 25.17% 25.17% 20,757 24,652
Effect of deductions under Chapter VI-A of the Income-tax Act, 1961 (1.89%) (0.26%) (1,556) (252)
Effect of non-deductible expenses and others 0.69% 0.56% 572 544
23.97% 25.47% 19,773 24,944
Effect of tax expense relating to earlier years (0.97%) (0.08%) (802) (75)

Income tax recognised in the statement of profit and loss 23.00% 25.39% 18,971 24,869

35.3 Movement in deferred tax liabilities :

(` in Lakhs)

Balance Recognised Recognised Recognised Recognised

Balance as Balance as
Particulars as at in P&L during in OCI during in P&L during in OCI during
at 31.03.2022 at 31.03.2023
01.04.2021 2021-22 2021-22 2022-23 2022-23

Property, plant
4,294 74 - 4,368 1,449 - 5,817
and equipment

Total 4,294 74 - 4,368 1,449 - 5,817

114 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
36 Contingent Liabilities and Commitments (to the extent not provided for)
I. Contingent Liabilities (` in Lakhs)

Particulars 31.03.2023 31.03.2022

(a) Claims against the Company not acknowledged

- as debts
(i) Income tax matters 10 3
(ii) Goods and service tax matters 460 -
(b) Bank guarantees in favour of parties
(i) Tamil Nadu Generation and Distribution Corporation [TANGEDCO] 164 164
(ii) Tamil Nadu Pollution Control Board 5 5
(iii) Tata Power Trading Company Limited 100 100
(iv) New Tirupur Area Water Development Corporation Limited 58 58
(v) Central Government Samarath Scheme 2 2

(c) Letter of Credit Facility in favour of Suppliers

(i) Foreign letter of credit
2,205 6,919
(ii) Inland Letter of Credit
967 103
(d) Discounted sales invoices 4,182 9,316
(e) Provident Fund:
Pursuant to the Supreme Court judgement dated February 28, 2019 on the inclusion of special allowances for contribution to provident
fund, the Company has been legally advised that there are interpretative challenges on the application of the judgement
retrospectively. Based on the legal advice and in the absence of the reliable measurement of the provision for earlier periods, the
Company has not recorded a provision for the prior years.
Notes:
(i) Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various
forums / authorities.
(ii) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are
required and disclosed as contingent liabilities where applicable, in these standalone financial statements. The Company does not
expect the outcome of these proceedings to have a materially adverse effect on its financial position.

II. Commitments
(` in Lakhs)

Particulars 31.03.2023 31.03.2022

(a) Capital Commitments

(i) Estimated amount of contracts remaining to be executed on capital account and not
provided for. 3,127 4,323

(b) Other Commitments

(i) The Company has given Corporate guarantees to banks/ financial Institutions /
Others on behalf of M/s Jahnvi Motor Private Limited, M/s K.P.R.Sugar Mill Limited and 1,77,045 1,79,045
M/s KPR Sugar and Apparels Limited.

(ii) Export obligations against the import licenses taken for import of capital goods under the
Export Promotion on Capital Goods Scheme and Advance Authorisation scheme for import 22,613 13,233
of raw materials. The duty implication involved is ` 3,769 Lakhs (Pr.Yr. ` 2,206 Lakhs)

Note: Disclosure under Section 186 (4) of the Companies Act, 2013:

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 115

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
(` in Lakhs)

Name of the Party 31.03.2023 31.03.2022

M/s.K.P.R. Sugar Mill Limited 51,845 58,845

M/s.Jahnvi Motor Private Limited 2,700 2,700
M/s KPR Sugar and Apparels Limited 1,22,500 1,17,500

Total 1,77,045 1,79,045

The recipients utilise the guarantee for availing term loan and working capital facility from banks/ financial institutions/ others.
Also refer note 5 and 40.

37 Disclosure with respect to Micro, Small and Medium Enterprises Development act, 2006
Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprises Development Act, 2006” (“MSMED Act,
2006”) is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as
per the intimation received from them on request made by the Company. There are no overdue principal amounts / interest payable
amounts for delayed payments to such vendors at the Balance sheet date. There are no delays in payment made to such suppliers
during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of
payment made during the year or on balance brought forward from previous year.

(` in Lakhs)

Particulars 31.03.2023 31.03.2022

1.The Principal amount remaining unpaid to any supplier at the end of each accounting year 645 1,454
2.Interest due remaining unpaid to any supplier at the end of each accounting year - -
3.The amount of interest paid by the buyer in terms of section 16 of the MSMED Act, 2006,
along with the amount of the payment made to the supplier beyond the appointed day - -
during each accounting year
4.The amount of interest due and payable for the period of delay in making payment (which
has been paid but beyond the appointed day during the year) but without adding the interest - -
specified under the MSMED Act, 2006
5.The amount of interest accrued and remaining unpaid at the end of each accounting year - -

6.The amount of further interest remaining due and payable even in the succeeding years,
until such date when the interest dues above are actually paid to the small enterprises, for the - -
purpose of disallowance of a deductible expenditure under section 23 of the MSMED Act, 2006

38 Corporate Social Responsibility Expenditure

The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility (CSR) as per the
provision of section 135 of the Companies Act, 2013 amounts to `1,291 Lakhs (Pr.Yr. `913 Lakhs). Amount spent during the year on
CSR activities (included in Note 33 of the Statement of Profit and Loss) as under:
(` in Lakhs)
For the year Ended
Particulars
31.03.2023 31.03.2022

Promotion of education 1,297 911

Donation to Chief Minister's Relief Fund - Covid-19 - 109
Chess Olympiad sponsorship 5 -
Rural development 6 -
Women empowerment - 6
Total 1,308 1,027

116 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
Details of corporate social responsibility expenditure: (` in Lakhs)
For the year Ended
Particulars
31.03.2023 31.03.2022

(i) shortfall at the end of the year - -

(ii) total of previous years shortfall - -
(iii) reason for shortfall NA NA
(iv) details of related party transactions NA NA
(v) where a provision is made with respect to a liability incurred by entering into a contractual
obligation, the movements in the provision during the year shall be shown separately. NA NA

Disclosure under section 135(5) of the Companies Act, 2013 (` in Lakhs)

For the year Ended
Particulars
31.03.2023 31.03.2022

(i) Opening balance (excess) / shortfall - -

(ii) Amount required to be spent during the year 1,291 913
(iii) Amount spent during the year (also refer note 8, 15 and 33) (6,308) 1,027
(iv) Closing balance (excess)* / shortfall (5,017) -

* Out of the excess closing balance in the table above, balance of ` 5,000 lakhs represents CSR pre-spent during the year to be adjusted
against the Company's future CSR obligation in accordance with the provisions of Companies Act, 2013.

39 Financial Instruments
Accounting Classification and Fair Values:
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair
value hierarchy
31.03.2023 (` in Lakhs)
Carrying amount
Fair value
Particulars Mandatorily at Other financial Other financial Total carrying
assets - amortised hierarchy
FVTPL - Others liabilities amount
cost

Financial assets measured at fair value

Non-current Investments (excluding 150 - - 150 Level 2
investments in subsidiaries)
Current Investments 12,716 - - 12,716 Level 1

Financial assets not measured at fair value

Loans # - 223 - 223 -
Trade receivables # - 49,209 - 49,209 -
Cash and cash equivalents # - 4,050 - 4,050 -
Bank balances other than Cash and
cash equivalents # - 226 - 226 -
Other financial assets # - 3,658 - 3,658 -
(excluding investments in subsidiaries)

Financial liabilities not measured

at fair value
Borrowings # - - 49,799 49,799 -
Trade payables # - - 19,930 19,930 -
Other financial liabilities # - - 520 520 -

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 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
31.03.2022 (` in Lakhs)
Carrying amount
Fair value
Particulars Mandatorily at Other financial Other financial Total carrying
assets - amortised hierarchy
FVTPL - Others liabilities amount
cost

Financial assets measured at fair value

Non-current Investments (excluding 150 - - 150 Level 2
investments in subsidiaries)
27,403 - - 27,403 Level 1
Current Investments

Financial assets not measured at fair value

Loans # - 204 - 204 -
Trade receivables # - 39,263 - 39,263 -
Cash and cash equivalents # - 9,561 - 9,561 -
Bank balances other than Cash and
cash equivalents # - 479 - 479 -
Other financial assets # - 6,785 - 6,785 -
(excluding investments in subsidiaries)

Financial liabilities not

measured at fair value
Borrowings # - - 41,785 41,785 -
Trade payables # - - 11,491 11,491 -
Other financial liabilities # - - 43 43 -

# For financial assets and liabilities not measured at fair value, the Company has not disclosed the fair values of financial instruments, since
their carrying amounts are reasonable approximations of their fair values.
Note: There have been no transfers between Level 1, Level 2 and Level 3 during the current and previous year.
Refer note 2E to the standalone financial statements.

Capital Management
The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to
stakeholders through optimisation of borrowings and equity.
The capital structure of the Company consists of net debt (borrowings as detailed in note 18 and note 22 which is off set by cash and bank
balances as defined below) and Total Equity of the Company.
The Company is not subject to any externally imposed capital requirements.
The Company's Net Debt to Total Equity ratio as at 31.03.2023 was as follows
(` in Lakhs)

Particulars 31.03.2023 31.03.2022

(i) Debt * 49,799 41,785

(ii) Less: Cash and Bank Balances * 4,276 10,040
(iii) Net Debt (i - ii) 45,523 31,745

(iv) Total Equity 2,97,296 2,63,218

(v) Net Debt to Equity Ratio (iii / iv) 15.31% 12.06%

* Debt is defined as non-current borrowings, current borrowings and current maturities of non-current borrowings as described in note
18 and note 22. Cash and Bank balances include cash and cash equivalents and Bank balances other than Cash and cash equivalents
as described in note 12 and note 13.

118 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
Financial Risk Management
The Company has exposure to the following risks arising from financial instruments:
- Market risk (See A below)
- Credit risk (See B below)
- Liquidity risk (See C below)
Risk Management Framework
The Company’s corporate treasury function provides services to the business, co-ordinates access to domestic and International financial
markets, monitors and manages the financial risk relating to the operation of the Company through internal risk reports which analyse
exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk), credit risk and
liquidity risk.
The use of financial derivatives is governed by the Company’s policies approved by the board of directors, which provide written principles
on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivatives financial instruments, and the
investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The
Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
The Company's board of directors oversees how management monitors compliance with the Company's risk management policies and
procedures, and reviews the adequacy of the risk management policies and procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company. The Company's board of directors are assisted in its oversight role by internal audit.
Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to
the audit committee.
A. Market Risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company's
income or the value of holding of its financial instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return.
(i) Foreign currency risk
The Company’s sales and purchases activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The
Company enters into plain vanilla forward contracts to manage its exposure to foreign currency risk.
Details of hedged and unhedged foreign currency exposures
(a) Outstanding forward exchange contracts for hedging purposes as on 31.03.2023
Currency Cross Currency Amount ( `in Lakhs) Buy / Sell
9,153 Sell
USD INR (1,17,344) Sell
- Buy
USD INR (5,268) Buy
5,502 Sell
EURO INR (7,438) Sell
6,229 Sell
GBP INR (6,705) Sell

Note: Figures in brackets relates to the previous year.

(b) The year-end unhedged foreign currency exposures are given below
Foreign currency denominated financial assets and liabilities (including firm commitments, if any) which expose the Company to currency
risk are disclosed below. The amounts shown are those reported translated at the closing rate. Unhedged foreign currency risk exposure at
the end of the reporting period has been expressed in Indian Rupees.

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 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
(` in Lakhs)
USD Euro GBP JPY CHF Total

As at 31.03.2023
Loans 223 - - - - 223
Trade receivables 54,645 - 608 - - 55,253
Cash and cash equivalents 1,404 129 148 - - 1,681
Trade payables (2,168) - - - - (2,168)
54,104 129 756 - - 54,989

(` in Lakhs)
USD Euro GBP JPY CHF Total

As at 31.03.2022
Loans 204 - - - - 204
Trade receivables 1,155 1,620 1,807 - - 4,582
Cash and cash equivalents - - - - - -
Trade payables (785) - (24) (279) (453) (1,541)
574 1,620 1,783 (279) (453) 3,245

Note:
Trade receivables and Trade payables includes firm commitments.

Sensitivity analysis:
Sensitivity analysis is carried out for un-hedged foreign exchange risk as at 31.03.2023. For every 1% strengthening / weakening of
Indian Rupees against all relevant uncovered foreign currency transactions, profit before tax and equity would be impacted as follows:

Strengthening Weakening
Increase/ (decrease) in profit and
equity Year ended Year ended Year ended Year ended
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
USD (541) (6) 541 6
Euro (1) (16) 1 16
GBP (8) (18) 8 18
JPY - 3 - (3)
CHF - 5 - (5)
(550) (32) 550 32

(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’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with
floating interest rates.

Interest rate exposure (` in Lakhs)

Particulars 31.03.2023 31.03.2022
Non-current borrowings 29 31
Current borrowings 49,770 41,754
Total 49,799 41,785

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 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
Sensitivity analysis:
Sensitivity analysis is carried out for floating rate borrowings as at March 31, 2023. For every 1% increase in average interest rates, profit
before tax would be impacted by loss of approximately ` 498 lakhs (Pr.Yr: ` 418 Lakhs). Similarly, for every 1% decrease in average interest
rates there would be an equal and opposite impact on the profit before tax. The calculations are based on a change in the average market
interest rate for each period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All other
variables are held constant.
The Company does not expect any change in interest rates on fixed rate borrowings and accordingly have not presented any sensitivities on
such borrowings.
(iii) Price risk
The Company is mainly exposed to the price risk due to its investment in mutual funds. The price risk arises due to uncertainties about the
future market values of these investments. As at 31.03.2023, the investments in mutual funds amounts to ` 12,716 lakhs (Pr.Yr: ` 27,403
Lakhs).
As regards Company's investments in unquoted equity instruments, the management contends that such investments do not expose the
Company to price risks. In general, these securities are not held for trading purposes.
Sensitivity analysis:
For every 1% increase in price, profit before tax would be impacted by gain of approximately ` 127 lakhs (Pr.Yr: ` 274 Lakhs). Similarly, for
every 1% decrease in price there would be an equal and opposite impact on the profit before tax.

B Credit risk management

Credit risk is the risk that the counterparty to a financial instrument will not meet its contractual obligations, leading to a financial loss. Credit
risk primarily arises from the Company's trade receivables, loans, investments, cash and cash equivalents, bank balances other than cash
and cash equivalents and other financial assets.
The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables: (` in Lakhs)

Particulars 31.03.2023 31.03.2022

Trade receivables 49,209 39,263

The Company mitigates credit risk by strict receivable management procedures and policies. The Company has a dedicated independent
team to review credit and monitor collection of receivables. In addition, the Company mitigates credit risk substantially through availment of
credit insurance for both domestic and export buyers.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected
credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic
indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of
minimal credit losses to continue. Further, the management believes that unimpaired amounts that are past due by more than 90 days are
still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss at the
reporting dates related to customers that have defaulted on their payments to the Company are not expected to be able to pay their
outstanding dues, mainly due to economic circumstances.The concentration of credit risk is limited due to the customer base being large
and unrelated. Further, the Company constantly evaluates the quality of trade receivables and provides impairment loss on financial assets
(trade receivables) based on expected credit loss model.
For movement of loss allowance in trade receivables, refer note 11.
Loans (` in Lakhs)

Particulars 31.03.2023 31.03.2022

Loans to related parties 223 204

The Company extended loans to its wholly-owned subsidiaries which are engaged in potential ventures. Also refer note 6, 33 and 48.

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NOTES
Investments:
Investments of surplus funds are made only with approval of Board of Directors. This primarily include investments in equity instruments of
an unlisted entity and mutual funds. The Company does not expect significant credit risks arising from these investments.
Cash and cash equivalents and Bank balances other than Cash and cash equivalents:
The Company held cash and cash equivalents and margin money deposits with credit worthy banks and financial institutions as at the
reporting dates which has been measured on the 12-month expected loss basis. The credit worthiness of the banks and financial institutions
are evaluated by the management on an ongoing basis and is considered to be good with low credit risk.
Other financial assets:
Other financial assets primarily consists of Investment in wholly-owned subsidiary pending allotment, Interest accrued on bank deposits and
other deposits and term deposit with Non-Banking Financial Companies. The Company does not expect any loss from non-performance by
these counter-parties.
C Liquidity risk management
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it
will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company’s reputation.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk
management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management
requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
All current financial liabilities are repayable within one year. The contractual maturities of non-current financial liabilities are disclosed in note
18 and note 19.
40 Related Party Disclosures
Disclosures under "Ind AS" 24 - Related Party Disclosure, as identified and disclosed by the Management and relied upon by the Auditors

40.1 Name of related parties and nature of relationships

Key Management Personnel Sri K.P.Ramasamy

Sri KPD Sigamani
Sri P.Nataraj
Sri C.R.Anandakrishnan
Sri E.K.Sakthivel

Relatives of Key Management Personnel Smt D.Geetha (Daughter of Sri.KPD Sigamani)

Sri T.N.Arun (Son of Sri P.Nataraj)

Enterprises owned by Key Management Personnel/Directors or M/s K.P.R. Developers Limited

their relatives M/s K P R Cements Private Limited
M/s K P R Holdings Private Limited
M/s K P R Agro Farms Private Limited
M/s KPR Info Solutions Private Limited

Subsidiary Companies M/s Quantum Knits Private Limited

M/s K.P.R. Sugar Mill Limited
M/s Jahnvi Motor Private Limited
M/s Galaxy Knits Limited
M/s KPR Exports PLC, Ethiopia
M/s KPR Mill Pte. Ltd, Singapore
M/s KPR Sugar and Apparels Limited

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NOTES
40.2 Transactions during the year and the balance outstanding at the balance sheet date (` in Lakhs)
Nature of Transaction Enterprises owned Key Management Relatives to Key Subsidiary Total as on
by key management Persons Management Company 31.03.2023
personnel / Directors Persons
or their relatives

Transactions during the year

- - - 14,244 14,244
Purchase of goods
- - - (11) (11)
Purchase of property, plant and - - - - -
equipment - - - - -
- - - 50,396 50,396
Sale of products
- - - (19,658) (19,658)
- - - 67 67
Sale of property, plant and equipment
- - - (3) (3)
- - - 32 32
Repairs and maintenance
- - - - -
- - - 4,355 4,355
Processing and fabrication Income
- - - - -
- - - 169 169
Miscellaneous income - - - - -
- - - 847 847
Processing and fabrication Expenses
- - - (37) (37)
Interest income on financial assets - - - - -
measured at amortised cost - - - (6) (6)
- 4 - 3,000 3,004
Lease rentals paid
- (1) - (3,000) (3,001)
- - - 24 24
Lease rentals received - - - (3) (3)
- - - 4,684 4,684
Dividend income - - - (26) (26)
- 1,758 13 - 1,771
Remuneration / salary
- (1,758) (13) - (1,771)
Proceeds from redemption of - - - 5,202 5,202
preference shares - - - - -
- - - 20,000 20,000
Non-current investments - - - (38,924) (38,924)

Balances outstanding as at the balance sheet date

- - - 75,581 75,581
Non-current investments
- - - (57,762) (57,762)
Investment in wholly-owned subsidiaries - - - 7 7
pending allotment - - - (7) (7)
- - - 223 223
Loans
- - - (204) (204)
- - - 1 1
Advance to suppliers
- - - (1,373) (1,373)
- - - 7,561 7,561
Trade receivables
- - - - -
- - - 24 24
Interest accrued
- - - (24) (24)
- 955 - - 955
Employee benefits payable
- (915) - - (915)
- - - 6,837 6,837
Advance from customers
- - - (4,653) (4,653)

(Previous year figures are shown in brackets)

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NOTES
40.3 Details of transactions with related parties
a. Purchase of Goods (` in Lakhs)

Name 2022-23 2021-22

M/s.K.P.R. Sugar Mill Limited 86 -

M/s KPR Sugar and Apparels Limited 14,158 -

M/s Quantum Knits Pvt Limited - 11

Total 14,244 11

b. Sale of products (` in Lakhs)

Name 2022-23 2021-22

M/s K.P.R.Sugar Mill Limited 26,816 20,005

M/s KPR Mill Pte. Ltd, Singapore - (350)

M/s Quantum Knits Pvt Limited 5,634 -

M/s KPR Sugar and Apparels Limited 17,946 3

Total 50,396 19,658

c. Sale of property, plant and equipment (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 64 3

M/s Jahnvi Motor Private Limited 3 -

Total 67 3

d. Repairs and maintenance (` in Lakhs)

Name 2022 - 23 2021-22

M/s Jahnvi Motor Private Limited 32 -

Total 32 -

e. Processing and fabrication income (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 4,355 -

Total 4,355 -

f. Miscellaneous income (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R.Sugar Mill Limited 53 -

M/s KPR Sugar and Apparels Limited 113 -

M/s Jahnvi Motor Private Limited 3 -

Total 169 -

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NOTES
g. Processing and fabrication expenses (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 847 37

Total 847 37

h. Interest income on financial assets measured at amortised cost (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Mill Pte. Ltd, Singapore - 6

Total - 6

i. Lease rentals paid (` in Lakhs)

Name 2022 - 23 2021-22

Sri K.P.Ramasamy 1.20 0.19

Sri KPD Sigamani 1.20 0.18

Sri P.Nataraj 1.20 0.18

M/s K.P.R.Sugar Mill Limited 3,000 3,000

Total 3,003.60 3,000.55

j. Lease rentals received (` in Lakhs)

Name 2022 - 23 2021-22

M/s.K.P.R.Sugar Mill Limited 1 1

M/s Quantum Knits Pvt Limited 1 1

M/s KPR Sugar and Apparels Limited 22 1

Total 24 3

k. Dividend income (` in Lakhs)

Name 2022 - 23 2021-22

M/s.K.P.R.Sugar Mill Limited 2,691 26

M/s Quantum Knits Pvt Limited 1,800 -

M/s Jahnvi Motor Private Limited 193 -

Total 4,684 26

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NOTES
l. Remuneration / Salary (` in Lakhs)

Name 2022 - 23 2021-22

Sri K.P.Ramasamy 572 572

Sri KPD Sigamani 572 572

Sri P.Nataraj 572 572

Sri C.R.Anandakrishnan 24 24

Sri E.K.Sakthivel 18 18

Smt D.Geetha 6 6

Sri T.N.Arun 7 7

Total 1,771 1,771

Note: Amount attributable to post employment benefits have not been disclosed as the same cannot be identified distinctly in the actuarial
valuation.
m. Proceeds from redemption of preference shares (` in Lakhs)

Name 2022 - 23 2021-22

M/s.K.P.R.Sugar Mill Limited 5,202 -

Total 5,202 -

n. Non-current investments (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 20,000 38,924

Total 20,000 38,924

40.4 Balances outstanding as at the balance sheet date:

a. Non-current investments (` in Lakhs)

Name 31.03.2023 31.03.2022

Equity Shares
M/s.K.P.R. Sugar Mill Limited 1,675 1,675
M/s.Jahnvi Motor Private Limited 276 276
M/s.Quantum Knits Private Limited 10 10
M/s.Galaxy Knits Limited 5 5
M/s.KPR Exports PLC, Ethiopia (also refer note 48) - -
M/s KPR Mill Pte. Ltd, Singapore 21 21
M/s KPR Sugar and Apparels Limited 100 100
Deemed equity in Jahnvi Motor Private Limited, K.P.R.Sugar Mill Limited 657 -
and KPR Sugar and Apparels Limited
Preference shares
M/s.K.P.R. Sugar Mill Limited 2,837 5,675

M/s.KPR Sugar and Apparels Limited 70,000 50,000

Total 75,581 57,762

126 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

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NOTES
b. Investment in wholly owned subsidiary pending allotment (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s KPR Mill Pte. Ltd, Singapore 7 7

Total 7 7
Also refer note 48.

c. Loans (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s KPR Mill Pte. Ltd, Singapore 223 204

Total 223 204

Refer note 36 for disclosure under Section 186 (4) of the Companies Act, 2013.
The recipients utilise the loan for principal business activities.
Also refer note 48.

d. Advance to suppliers (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s Jahnvi Motor Private limited 1 -

M/s KPR Sugar and Apparels Limited - 1,373

Total 1 1,373

e. Trade receivables (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s KPR Sugar and Apparels Limited 4,147 -

M/s Quantum Knits Private limited 3,414 -

Total 7,561 -

f. Interest accrued (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s KPR Mill Pte Limited 24 24

Total 24 24

g. Advance from customers (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s Quantum Knits Private Limited - 2,056

M/s K.P.R.Sugar Mill Limited 6,837 2,598
Total 6,837 4,653

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 127

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NOTES
h. Employee benefits payable (` in Lakhs)

Name 31.03.2023 31.03.2022

Sri K.P.Ramasamy 330 315

Sri KPD Sigamani 307 295

Sri P.Nataraj 315 303

Sri C.R.Anandakrishnan 2 2

Sri E.K.Sakthivel 1 -

Smt D.Geetha 0.40 -

Total 955.40 915

40.5 Terms and conditions of transactions with related parties

Transactions with related parties are at arm's length and all the outstanding balances are unsecured.

40.6 Transfer pricing

The Company has transactions with related parties. For the financial year ended 31.03.2022, the Company has obtained the
Accountant’s report from a Chartered Accountant as required by the relevant provisions of the Income-tax Act,1961 and has filed the
same with the tax authorities. For the year ended 31.03.2023, the Company maintains documents as prescribed by the Income-tax Act,
1961 to prove that these transactions are at arm's length and believes that the aforesaid legislation will not have any impact on the
financial statements, particularly on the amount of tax expense and that of provision for taxation.

41 Earnings per share (EPS)

Particulars 31.03.2023 31.03.2022

Profit for the year attributable to equity shareholders (` in Lakhs) 63,504 73,080

Weighted average number of equity shares (refer note (a)) 34,19,73,277 34,40,50,000

Face value per share (`) 1.00 1.00

Earnings per share (`) - Basic and Diluted 18.57 21.24

Notes:
a. The calculation of weighted average number of equity shares for the purpose of basic and diluted earnings per share is as follows:

Particulars 31.03.2023 31.03.2022

Opening balance 34,40,50,000 34,40,50,000

Effect of shares bought back during the year (20,76,723) -

Weighted average number of equity shares 34,19,73,277 34,40,50,000

After obtaining the approval from the Board of Directors on February 07, 2022, the buy-back of 22,36,000 equity Shares of ₹ 1/-each
(representing 0.65% of the total number of paid up equity shares of the Company) from the shareholders of the Company on proportionate
basis by way of tender offer route at a price of ₹ 805/- per share for an aggregate amount of ₹ 17,999.80 lakhs (9.53% of the paid up capital
and free reserves) was initiated in accordance with the provisions of the Companies Act, 2013 and the Securities and Exchange Board of
India (Buy-Back of Securities) Regulations, 2018 (‘SEBI Buy-back Regulations’). The extinguishment of equity shares was completed on
April 26, 2022.

b. The Company does not have any potential equity shares. Accordingly basic and diluted earnings per share would remain the same.

128 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

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NOTES
42 Operating segments
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Company's other components, and for which discrete
financial information is available. All operating segments’ operating results are reviewed regularly by the Company's Managing Director
(MD) to make decisions about resources to be allocated to the segments and assess their performance.
The Company is engaged in only one business i.e. manufacturing and sale of textiles. The entity’s chief operating decision maker considers
the Company as a whole to make decisions about resources to be allocated to the segment and assess its performance. Accordingly, the
Company does not have multiple segments and these standalone financial statements are reflective of the information required by the Ind
AS 108 for textiles.

42.1 Revenue from sale of products and services by geographic location of customers:
The geographic information analyses the Company's revenue by the Company's country of domicile and other countries. In presenting the
geographical information, segment revenue has been determined based on the geographic location of the customers.
(` in Lakhs)

Particulars 31.03.2023 31.03.2022

India 2,85,579 2,42,442

Overseas 1,71,502 1,52,427

Total 4,57,081 3,94,869

The Company's operations are entirely carried out in India and as such all its property, plant and equipment are located in India.
No single customer contributed 10% or more to the Company’s revenue for both the financial years 2022-23 and 2021-22.

43 Operating Lease Disclosure

43.1 As Lessee:

The Company has taken factory premises, office spaces, plant and equipment and vehicles on cancellable operating leases. The leases are
for varied periods which are classified as short-term leases under Ind AS 116. The Company has incurred ` 3,114 lakhs (Pr.Yr: ` 3,092
Lakhs) for the year ended 31.03.2023 towards expenses relating to short-term leases. The total cash outflow for leases is ` 3,114 lakhs
(Pr.Yr: ` 3,092 Lakhs) for the year ended 31.03.2023, including cash outflow of short-term leases. Also refer note 33.
(` in Lakhs)
Particulars 31.03.2023 31.03.2022

Minimum lease payments not later than one year 1,589 2,016

Later than one year but not later than five years 25 -

More than five years - -

43.2 As lessor:

The Company has given certain non-factory building on cancellable operating leases and has earned rental income of ` 459 lakhs
(Pr.Yr: ` 2,947 Lakhs) for the year ended 31.03.2023. Since the aforesaid leases are short-term in nature, there are no lease payments
receivable after one year as at 31.03.2023. The expected amount of minimum lease payments to be received within one year is ` 459 lakhs
(Pr.Yr: ` 2,947 Lakhs). Also refer note 28.

44 Disclosure of employee benefits

44.1 Defined contribution plans
(` in Lakhs)

Particulars 31.03.2023 31.03.2022

Provident fund 3,184 2,934

Employee state insurance 813 794

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 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
44.2 Defined benefit plan - gratuity

The Company provides for gratuity, a defined benefit retirement plan (‘the Gratuity Plan’) covering eligible employees. The Gratuity Plan
provides a lump-sum payment to vested employees at retirement, death or termination of employment, of an amount based on the
respective employee’s salary and the tenure of employment with the Company. The Company's obligation towards Gratuity is a defined
benefit plan and the details of actuarial valuation as at the year-end are given below:

Reconciliation of the net defined benefit (asset)/ liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined (asset) / liability and its
components.

A Reconciliation of present value of defined benefit obligation

Present value of obligation as at the beginning of the year 925 902
Current service cost 113 38
Interest cost 77 1
Benefits paid - (16)
Actuarial (gains) / losses on obligations
- changes in financial assumptions - -
Balance at the end of the year 1,115 925

B Reconciliation of fair value of plan assets:

Balance at the beginning of the year 925 900
Interest income 161 2
Contributions paid into the plan 27 24
Fair value of plan asset as at the end of the year 1,113 925

Plan assets comprises of :

% of Investment with insurer 100 100

C Net Asset/(Liability) recognized in the Balance Sheet

Present value of obligation as at end of the year 1115 925
Fair value of Plan Asset as at end of the year 1113 925
Funded Status [Surplus/(Deficit)] (2) -

D Expense recognized in the statement of profit and loss

Current Service Cost 113 38
Interest Cost 77 1
Expected return on Plan Assets (161) (2)
Actuarial (gains) / losses on obligations and plan assets - -
29 37
E Remeasurement recognised in other comprehensive income:
Actuarial / (gains) losses on defined benefit obligation - -
Actuarial / (gains) losses on plan assets - -

130 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES

F Actuarial Assumptions
Discount Rate (per annum) 7.52% 7.00%
Rate of increase in compensation levels (per annum) 7.50% 7.00%
Rate of return on plan assets (per annum) 7.52% 7.21%
Attrition rate (per annum) 4.00% 4.00%
Expected average remaining working lives of employees (years) 26.66 27.09
Demographic Assumptions - Based on Indian Assured Lives Mortality (2012-14)

The estimate of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotions and
other relevant factors including supply and demand in the employment market.

44.3 Disclosure of Employee Benefits (Continued)

Asset-liability matching strategies

The company has funded the liability with the insurance company. The entire investible assets are managed by the fund managers of the
insurance company and the asset values as informed by the insurance company has been taken for valuation purpose. The policy, thus,
mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities.
Thus, the Company is exposed to movement in interest rates (in particular, the significant fall in interest rates, which should result in a
increase in liability without a corresponding increase in the asset).

Expected contributions to the plan for the next annual reporting period

The expected benefits are based on the same assumptions as are used to measure Company’s defined benefit plan obligations as at
31.03.2023. The Company is expected to contribute ` 232 lakhs (Pr.Yr: ` 34 Lakhs) to defined benefit plan obligations funds for the year
ending 31.03.2023.

Weighted average duration of the defined benefit obligation 16.61 years 17.50 years

Disclosure related to indication of effect of the defined benefit plan on the entity's
undiscounted future cash flows Payout in the next

1 year 43 34
1-2 years 47 37
2-3 years 49 36
3-4 years 50 40
4-5 years 57 43
5 years and beyond 3,543 3,032

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would
have affected the defined benefit obligation by the amounts shown below: (` in Lakhs)
31.03.2023 31.03.2022
Particulars
Increase Decrease Increase Decrease

Discount rate (1% movement) (132) 159 (118) 144

Salary growth (1% movement) 154 (129) 139 (116)

Attrition rate (1% movement) (11) 12 (13) 15

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an
approximation of the sensitivity of the assumptions shown.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 131

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NOTES
45 Details of current investments in mutual funds (quoted) (` in Lakhs)
2022-23 2021-22
Particulars
Units Amount Units Amount

Nippon India Mutual Fund 1,09,223 6,015 1,90,692 9,931

LIC Mutual Fund 1,65,910 6,701 2,44,837 9,368

IDBI Mutual Fund - - 3,56,579 8,104

2,75,133 12,716 7,92,108 27,403

Also refer note 10.

46 Disclosure as per Schedule V of Regulation 34 of the listing regulations - Investments

(` in Lakhs)

Name of the Company 31.03.2023 31.03.2022

M/s.Quantum Knits Private Limited 10 10

M/s.K.P.R. Sugar Mill Limited 4,513 7,350

M/s.Jahnvi Motor Private Limited 276 276

M/s.Galaxy Knits Limited 5 5

M/s KPR Exports PLC, Ethiopia (Refer note 48) - -

M/s KPR Mill Pte Limited, Singapore 28 28

M/s KPR Sugar and Apparels Limited 70,100 50,100

74,932 57,769

Also refer note 5.

47 Disclosure as per Schedule V of Regulation 34 of the listing regulations - Loans

(` in Lakhs)
Maximum Maximum
Name of the Company As at outstanding during As at outstanding during
31.03.2023 the year 2022-23 31.03.2022 the year 2021-22

M/s KPR Exports PLC, Ethiopia (also refer note 48) - - - 118

M/s KPR Mill Pte Limited, Singapore 223 223 204 437

223 223 204 555

Also refer note 6.

48 Impairment assessment of KPR Exports PLC, Ethiopia

During the year ended 31.03.2022, the Company had performed an impairment assessment of investments made (including investments
pending allotment), loans given, and trade receivables due from M/s KPR Exports PLC, Ethiopia, triggered due to changes in business
environment as a result of ongoing civil unrest in Ethiopia and had recognized a provision for impairment towards carrying value of
investments (including investments pending allotment), loans and trade receivables of INR 1,798 lakhs as at 31.03.2022. Such provision
had been presented as part of 'Other expenses' in the statement of profit and loss for the year ended 31.03.2022. Also refer note 5,6,7 and 33
to the standalone financial statements.

49 Events after reporting period :

The Board of Directors have recommended a final dividend of 200% (` 2 per share of the face value of ` 1/- each) for the year 2022-23
subject to the approval of the shareholders in Annual General Meeting.

132 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

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NOTES
50 Other statutory information

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

b) The Company does not have any transactions with companies struck off.

c) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the
current or previous year.

d) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

e) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on
behalf of the Company or

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f) No funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise, that the Company shall

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

- provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

g) 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).

h) The Company has not have been declared as wilful defaulters by any bank or financial institution or government or any government
authority.

i) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

j) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

k) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory
period.

51 Ratios as per the Schedule III requirements :

a) Current ratio = Total current assets divided by Total current liabilities

Particulars 31.03.2023 31.03.2022

Total current assets - ` in Lakhs 2,05,708 1,86,941

Total current liabilities - ` in Lakhs 83,975 68,270

Ratio 2.45 2.74

% Change from previous year -10.54%

b) Debt Equity Ratio = Total debt divided by Total equity wherein Total Debt refers to sum of current and non-current borrowings

Particulars 31.03.2023 31.03.2022

Total debt - ` in Lakhs 49,799 41,785

Total equity - ` in Lakhs 2,97,296 2,63,218

Ratio 0.17 0.16

% Change from previous year 5.52%

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 133

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
c) Debt Service Coverage Ratio = Earnings available for debt service divided by the Total interest and principal repayments

Particulars 31.03.2023 31.03.2022

Profit after tax - ` in Lakhs 63,504 73,080

Add: Non - cash operating expenses and finance cost

- Depreciation and amortisation expenses - ` in Lakhs 7,764 7,565

- Finance costs - ` in Lakhs 2,670 1,339

Earnings available for debt service - ` in Lakhs 73,938 81,984

- Finance costs relating to term loans - ` in Lakhs 3 40

- Principal repayments relating to term loans - ` in Lakhs 2 1,151

Total interest and principal repayments relating to term loans - ` in Lakhs 5 1,191

Ratio 14,787.60 68.84

% Change from previous year 21382.28%

Reason for change more than 25%: The ratio has increased from 68.84 for the year ended 31.03.2022 to 14,787.60 for the year ended
31.03.2023 on account of significant decrease in total interest and principal repayments relating to term loans.
d) Return on Equity Ratio = Profit after tax divided by Average total equity

Particulars 31.03.2023 31.03.2022

Profit after tax - `in Lakhs 63,504 73,080

Average total equity (Refer note below) - ` in Lakhs 2,80,257 2,26,936

Ratio 22.66% 32.20%

% Change from previous year -29.64%

Note: Average total equity = (Total equity as at the beginning of respective year + Total equity as at the end of respective year) divided by 2
Reason for change more than 25%: The ratio has decreased from 32.20% for the year ended 31.03.2022 to 22.66 % for the year ended
31.03.2023 on account of decrease in profit after tax for the year.
e) Inventory turnover ratio = Sales divided by Average inventory

Particulars 31.03.2023 31.03.2022

Sales (refer note 1 below) - ` in Lakhs 4,73,955 4,07,367

Average inventory (refer note 2 below) - ` in Lakhs 1,04,219 77,138

Ratio 4.55 5.28

% Change from previous year -13.89%

Note 1: Sales represents revenue from operations.

Note 2: Average inventory = (Total inventories as at the beginning of respective year + Total inventories as at the end of respective year) divided by 2.
f) Trade receivables turnover ratio = Sales divided by Average trade receivables

Particulars 31.03.2023 31.03.2022

Sales - ` in Lakhs (Refer note 1 below) 4,60,811 3,97,790

Average trade receivables - ` in Lakhs (Refer note 2 below) 44,236 32,672

Ratio 10.42 12.18

% Change from previous year -14.44%

Note 1: Sales for the purpose of the table above represents revenue from operations excluding export incentives.
Note 2: Average trade receivables = (Total trade receivables as at the beginning of respective year + Total trade receivables as at the end of
respective year) divided by 2

134 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
g) Trade payables turnover ratio = Purchases divided by Average trade payables

Particulars 31.03.2023 31.03.2022

Purchases (refer note 1 below) - ` in Lakhs 3,36,229 2,34,727

Average trade payables (refer note 2 below)- ` in Lakhs 15,711 10,335

Ratio 21.40 22.71

% Change from previous year -5.77%

Note 1: Purchases represents Purchases forming part of cost of materials consumed.

Note 2: Average trade payables = (Total trade payables as at the beginning of respective year + Total trade payables as at the end of
respective year) divided by 2.

h) Net capital turnover ratio = Revenue from operations divided by Working capital wherein Working capital = Total current assets
less Total current liabilities

Particulars 31.03.2023 31.03.2022

Revenue from operations - `in Lakhs 4,73,955 4,07,367

Working capital - `in Lakhs 1,21,733 1,18,671

Ratio 3.89 3.43

% Change from previous year 13.42%

i) Net profit ratio = Net profit after tax divided by Revenue from operations

Particulars 31.03.2023 31.03.2022

Net profit after tax - `in Lakhs 63,504 73,080

Revenue from operations - `in Lakhs 4,73,955 4,07,367

Ratio 13.40% 17.94%

% Change from previous year -25.31%

Reason for change more than 25%: The ratio has decreased from 17.94% for the year ended 31.03.2022 to 13.40 % for the year ended
31.03.2023 on account of decrease in net profit after tax for the year.

j) Return on capital employed= Earnings before interest and taxes (EBIT) divided by Capital employed

Particulars 31.03.2023 31.03.2022

Earnings before interest and taxes (refer note 1 below) - `in Lakhs 85,145 99,288

Capital employed (refer note 2 below) - `in Lakhs 3,52,912 3,09,371

Ratio 24.13% 32.09%

% Change from previous year -24.82%

Note 1: EBIT= Profit before taxes + Finance costs

Note 2: Capital employed = Total equity + Total debt (current borrowings and non-current borrowings) + Deferred tax liabilities

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 135

 NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
k) Return on investment ('ROI')
i) ROI on mutual fund = Income generated from invested funds divided by average invested funds in mutual funds

Particulars 31.03.2023 31.03.2022

Income generated from invested funds - ` in Lakhs 1,263 1,359

Invested funds in mutual funds (refer note below) - ` in Lakhs 20,060 25,374

Ratio 6.30% 5.36%

% Change from previous year 17.56%

Note: Invested funds in mutual funds = (Investment in mutual fund as at the beginning of respective year + Investment in mutual fund as at
the end of respective year) divided by 2
ii) ROI on treasury funds = Income generated from invested funds divided by average invested funds in treasury funds

Particulars 31.03.2023 31.03.2022

Income generated from treasury funds - `in Lakhs 88 1,359

Invested funds in treasury funds (refer note below) - `in Lakhs 2,113 4,629
Ratio 4.16% 29.36%
% Change from previous year -85.81%

Note: Invested funds in treasury funds = (Investment in margin money deposit, term deposit with Non-Banking Financial Companies and in
deposits with original maturity of less than three months as at the beginning of respective year + Investment in margin money deposit, term
deposit with Non-Banking Financial Companies and in deposits with original maturity of less than three months as at the end of respective
year) divided by 2.
Reason for change more than 25%: Decrease in ROI on treasury funds from 29.36% for the year ended 31.03.2022 to 4.16% in for the year
ended 31.03.2023 is on account of decrease in income generated from treasury funds.
The notes from 1 to 51 are an integral part of these standalone financial statements.

For and on behalf of the Board of Directors of As per our report of even date attached
K.P.R. Mill Limited For B S R & Co. LLP
CIN : L17111TZ2003PLC010518 Chartered Accountants
Firm's Registration Number : 101248W/W-100022

K.P.Ramasamy P.Nataraj K Sudhakar

Chairman Chief Executive Officer and Managing Director Partner
DIN : 00003736 DIN : 00229137 Membership No. : 214150

KPD Sigamani P.Kandaswamy

Managing Director Company Secretary
DIN : 00003744

PL Murugappan
Chief Financial Officer

Coimbatore Coimbatore
03.05.2023 03.05.2023

136 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
Independent Auditor’s Report

To the Members of K.P.R. Mill Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of K.P.R. Mill Limited (hereinafter referred to as the “Holding Company”) and its
subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), which comprise the consolidated balance sheet as
at 31 March 2023, and the consolidated statement of profit and loss (including other comprehensive income), consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements,
including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated
financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of
the other auditors on separate financial statements of such subsidiaries as were audited by the other auditors, the aforesaid consolidated
financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at 31 March 2023,
of its consolidated profit and other comprehensive income, consolidated changes in equity and consolidated cash flows for the year then
ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities
under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our
report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant provisions of the
Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence
obtained by us along with the consideration of reports of the other auditors referred to in the “Other Matters” section below, is sufficient and
appropriate to provide a basis for our opinion on the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial
statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 137

AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
Revenue recognition
See note 3 and note 27 to the consolidated financial statements.

The key audit matter How the matter was addressed in our audit

The Group’s revenue is derived primarily from sale of goods. In view of the significance of the matter we applied the following
Revenue from sale of goods is recognised when control of the audit procedures in this area, among others to obtain sufficient
products being sold is transferred to the customer and there are appropriate audit evidence:
no longer any unfulfilled performance obligations. The
• Assessing the appropriateness of the accounting policy for
performance obligations in the contracts are fulfilled at the time of
revenue recognition with relevant accounting standards;
dispatch, delivery or upon formal customer acceptance
depending on customer terms. • Evaluating the design and implementation of key internal
financial controls in relation to timing of revenue recognition
Inappropriate assessment could lead to risk of revenue being
and tested the operating effectiveness of such controls for
recognized before transfer of control.
selected samples;
In view of the above and since revenue is a key performance
• Performing detailed testing by selecting samples of revenue
indicator of the Group, we have identified timing of revenue
transactions recorded during the year and around the year
recognition from sale of goods as a key audit matter.
end date using statistical sampling. We assessed fulfilment
of performance obligations during the year by verifying the
underlying documents. These documents included contract
specifying terms of sale, invoices, goods dispatch notes,
customer acceptances and shipping documents;

• Testing, on a sample basis using specified risk based

criteria, journal entries affecting revenue recognised during
the year to identify unusual items.

Valuation of Inventories
See note 3 and note 10 to the consolidated financial statements.

The key audit matter How the matter was addressed in our audit

The Group’s inventory primarily comprises of yarn, fabric, In view of the significance of the matter we applied the following
garments and sugar. Inventories are valued at lower of cost and audit procedures in this area, among others to obtain sufficient
net realisable value. The Group maintains its inventory levels appropriate audit evidence:
based on forecast demand and expected future selling prices.
• Assessing the appropriateness of the accounting policy for
There is a risk of inventories being measured at values which are
inventories with relevant accounting standards;
not representative of the lower of costs and net realisable value
(‘NRV’). • Evaluating the design and implementation of key internal
financial controls over valuation of inventories and testing
The Group exercises high degree of judgment in assessing the
the operating effectiveness of such controls for selected
NRV of the inventories on account of estimation of future market
samples;
and economic conditions. The carrying value of inventories is
material in the context of total assets of the Group. We identified • Observing the physical verification of inventory on a sample
the valuation of inventories as a key audit matter. basis. In this regard, we have considered the physical
condition of inventory by way of obsolescence or wear and
tear or efflux of time, wherever relevant and applicable, in
determining the valuation of such inventory.

• For NRV testing, selecting inventory items, on a sample

basis at reporting date and compared their carrying value to
their subsequent selling prices as indicated in sales
invoices subsequent to the reporting date.

138 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
Information Other than the Financial Statements and preparation of the consolidated financial statements by the
Auditor’s Report Thereon Management and Board of Directors of the Holding Company, as
aforesaid.
The Holding Company’s Management and Board of Directors are
responsible for the other information. The other information In preparing the consolidated financial statements, the respective
comprises the Board’s report, Management Discussion and Management and Board of Directors of the companies included in
Analysis and Corporate Governance Report, but does not include the Group are responsible for assessing the ability of each
the financial statements and auditor’s reports thereon, which we company to continue as a going concern, disclosing, as
obtained prior to the date of this auditor’s report, and the applicable, matters related to going concern and using the going
remaining sections of Annual report, which are expected to be concern basis of accounting unless the respective Board of
made available to us after that date. Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Our opinion on the consolidated financial statements does not
cover the other information and we do not and will not express any The respective Board of Directors of the companies included in
form of assurance conclusion thereon. the Group are responsible for overseeing the financial reporting
process of each company.
In connection with our audit of the consolidated financial
statements, our responsibility is to read the other information Auditor’s Responsibilities for the Audit of the Consolidated
identified above and, in doing so, consider whether the other Financial Statements
information is materially inconsistent with the consolidated
Our objectives are to obtain reasonable assurance about whether
financial statements or our knowledge obtained in the audit, or
the consolidated financial statements as a whole are free from
otherwise appears to be materially misstated.
material misstatement, whether due to fraud or error, and to issue
If, based on the work we have performed on the other information an auditor’s report that includes our opinion. Reasonable
that we obtained prior to the date of this auditor’s report, we assurance is a high level of assurance, but is not a guarantee that
conclude that there is a material misstatement of this other an audit conducted in accordance with SAs will always detect a
information, we are required to report that fact. We have nothing to material misstatement when it exists. Misstatements can arise
report in this regard. from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
Management's and Board of Directors' Responsibilities for consolidated financial statements.
the Consolidated Financial Statements
As part of an audit in accordance with SAs, we exercise
The Holding Company’s Management and Board of Directors are professional judgment and maintain professional skepticism
responsible for the preparation and presentation of these throughout the audit. We also:
consolidated financial statements in term of the requirements of
• Identify and assess the risks of material misstatement of the
the Act that give a true and fair view of the consolidated state of
consolidated financial statements, whether due to fraud or
affairs, consolidated profit/ loss and other comprehensive income,
error, design and perform audit procedures responsive to
consolidated statement of changes in equity and consolidated
those risks, and obtain audit evidence that is sufficient and
cash flows of the Group in accordance with the accounting
appropriate to provide a basis for our opinion. The risk of not
principles generally accepted in India, including the Indian
detecting a material misstatement resulting from fraud is
Accounting Standards (Ind AS) specified under Section 133 of the
higher than for one resulting from error, as fraud
Act. The respective Management and Board of Directors of the
may involve collusion, forgery, intentional omissions,
companies included in the Group are responsible for maintenance
misrepresentations, or the override of internal control.
of adequate accounting records in accordance with the provisions
• Obtain an understanding of internal control relevant to the
of the Act for safeguarding the assets of each company and for
audit in order to design audit procedures that are appropriate
preventing and detecting frauds and other irregularities; the
in the circumstances. Under Section 143(3)(i) of the Act, we
selection and application of appropriate accounting policies;
are also responsible for expressing our opinion on whether
making judgments and estimates that are reasonable and
the company has adequate internal financial controls with
prudent; and the design, implementation and maintenance of
reference to financial statements in place and the operating
adequate internal financial controls, that were operating
effectiveness of such controls.
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation • Evaluate the appropriateness of accounting policies used
of the consolidated financial statements that give a true and fair and the reasonableness of accounting estimates and related
view and are free from material misstatement, whether due to disclosures made by the Management and Board of
fraud or error, which have been used for the purpose of Directors.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 139

AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
• Conclude on the appropriateness of the Management and regulation precludes public disclosure about the matter or when,
Board of Directors use of the going concern basis of in extremely rare circumstances, we determine that a matter
accounting in preparation of consolidated financial should not be communicated in our report because the adverse
statements and, based on the audit evidence obtained, consequences of doing so would reasonably be expected to
whether a material uncertainty exists related to events or outweigh the public interest benefits of such communication.
conditions that may cast significant doubt on the Other Matters
appropriateness of this assumption. If we conclude that a
We did not audit the financial statements of seven subsidiaries,
material uncertainty exists, we are required to draw attention
whose financial statements reflect total assets (before
in our auditor’s report to the related disclosures in the
consolidation adjustments) of ` 2,74,504 lakhs as at 31 March
consolidated financial statements or, if such disclosures are
2023, total revenues (before consolidation adjustments) of
inadequate, to modify our opinion. Our conclusions are
` 2,15,172 lakhs and net cash flows (before consolidation
based on the audit evidence obtained up to the date of our
adjustments) amounting to ` 4,238 lakhs for the year ended on
auditor’s report. However, future events or conditions may
that date, as considered in the consolidated financial statements.
cause the Group to cease to continue as a going concern.
These financial statements have been audited by other auditors
• Evaluate the overall presentation, structure and content of whose reports have been furnished to us by the Management and
the consolidated financial statements, including the our opinion on the consolidated financial statements, in so far as it
disclosures, and whether the consolidated financial relates to the amounts and disclosures included in respect of
statements represent the underlying transactions and events these subsidiaries, and our report in terms of sub-section (3) of
in a manner that achieves fair presentation. Section 143 of the Act, in so far as it relates to the aforesaid
• Obtain sufficient appropriate audit evidence regarding the subsidiaries is based solely on the reports of the other auditors.
financial statements/financial information of such entities or Our opinion on the consolidated financial statements, and our
business activities within the Group to express an opinion on report on Other Legal and Regulatory Requirements below, is not
the consolidated financial statements. We are responsible modified in respect of the above matter with respect to our reliance
for the direction, supervision and performance of the audit of on the work done and the reports of the other auditors.
the financial statements/financial information of such entities
Report on Other Legal and Regulatory Requirements
included in the consolidated financial statements of which we
are the independent auditors. For the other entities included 1. As required by the Companies (Auditor’s Report) Order,
in the consolidated financial statements, which have been 2020 (“the Order”) issued by the Central Government of India in
audited by other auditors, such other auditors remain terms of Section 143(11) of the Act, we give in the “Annexure A” a
responsible for the direction, supervision and performance of statement on the matters specified in paragraphs 3 and 4 of the
the audits carried out by them. We remain solely responsible Order, to the extent applicable.
for our audit opinion. Our responsibilities in this regard are 2 A. As required by Section 143(3) of the Act, based on our audit
further described in the section titled “Other Matters” in this and on the consideration of reports of the other auditors on
audit report. separate financial statements of such subsidiaries, as were
We communicate with those charged with governance of the audited by other auditors, as noted in the “Other Matters”
Holding Company and such other entities included in the paragraph, we report, to the extent applicable, that:
consolidated financial statements of which we are the a. We have sought and obtained all the information and
independent auditors regarding, among other matters, the explanations which to the best of our knowledge and belief
planned scope and timing of the audit and significant audit were necessary for the purposes of our audit of the aforesaid
findings, including any significant deficiencies in internal control consolidated financial statements.
that we identify during our audit. b. In our opinion, proper books of account as required by law
We also provide those charged with governance with a statement relating to preparation of the aforesaid consolidated financial
that we have complied with relevant ethical requirements statements have been kept so far as it appears from our
regarding independence, and to communicate with them all examination of those books and the reports of the other
relationships and other matters that may reasonably be thought to auditors.
bear on our independence, and where applicable, related c. The consolidated balance sheet, the consolidated statement
safeguards. of profit and loss (including other comprehensive income),
From the matters communicated with those charged with the consolidated statement of changes in equity and the
governance, we determine those matters that were of most consolidated statement of cash flows dealt with by this
significance in the audit of the consolidated financial statements of Report are in agreement with the relevant books of account
the current period and are therefore the key audit matters. We maintained for the purpose of preparation of the consolidated
describe these matters in our auditor’s report unless law or financial statements.

140 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
d. In our opinion, the aforesaid consolidated financial disclosed in the note 51 to the consolidated financial
statements comply with the Ind AS specified under Section statements, no funds have been received by the Holding
133 of the Act. Company or any of such subsidiary companies from any
e. On the basis of the written representations received from the person(s) or entity(ies), including foreign entities (“Funding
directors of the Holding Company as on 01 April 2023 taken Parties”), with the understanding, whether recorded in
on record by the Board of Directors of the Holding Company writing or otherwise, that the Holding Company or any of
and the reports of the statutory auditors of its subsidiary such subsidiary companies shall directly or indirectly, lend or
companies incorporated in India, none of the directors of the invest in other persons or entities identified in any manner
Group companies incorporated in India are disqualified as on whatsoever by or on behalf of the Funding Parties (“Ultimate
31 March 2023 from being appointed as a director in terms of Beneficiaries”) or provide any guarantee, security or the like
Section 164(2) of the Act. on behalf of the Ultimate Beneficiaries.

f. With respect to the adequacy of the internal financial controls (iii) Based on the audit procedures performed that have been
with reference to financial statements of the Holding considered reasonable and appropriate in the
Company and its subsidiary companies incorporated in India circumstances, nothing has come to our notice that has
and the operating effectiveness of such controls, refer to our caused us to believe that the representations under sub-
separate Report in “Annexure B”. clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii)
above, contain any material misstatement.
B. With respect to the other matters to be included in the
Auditor’s Report in accordance with Rule 11 of the Companies d. The interim dividend declared and paid by the Holding
(Audit and Auditors) Rules, 2014, in our opinion and to the best of Company during the year and until the date of this audit
our information and according to the explanations given to us and report is in compliance accordance with Section 123 of the
based on the consideration of the reports of the other auditors on Act.
separate financial statements of the subsidiaries, as noted in the The final dividend paid by the Holding Company during the
“Other Matters” paragraph: year, which was declared in the previous year, is in
a. The consolidated financial statements disclose the impact of accordance with Section 123 of the Act to the extent it applies
pending litigations as at 31 March 2023 on the consolidated to payment of dividend.
financial position of the Group. Refer note 36 to the As stated in note 50 to the consolidated financial statements,
consolidated financial statements. the Board of Directors of the Holding Company has proposed
b. The Group did not have any material foreseeable losses on final dividend for the year which is subject to the approval of
long-term contracts including derivative contracts during the the members at the ensuing Annual General Meeting. The
year ended 31 March 2023. dividend declared is in accordance with Section 123 of the
Act to the extent it applies to declaration of dividend.
c. There are no amounts which are required to be transferred to
the Investor Education and Protection Fund by the Holding e. As proviso to rule 3(1) of the Companies (Accounts) Rules,
Company or its subsidiary companies incorporated in India 2014 is applicable for the Holding Company or any of such
during the year ended 31 March 2023. subsidiary companies only with effect from 1 April 2023,
reporting under Rule 11(g) of the Companies (Audit and
d (i) The respective management of the Holding Company and its Auditors) Rules, 2014 is not applicable.
subsidiary companies incorporated in India whose financial
statements have been audited under the Act has C. With respect to the matter to be included in the Auditor’s
represented to us and the other auditors of such subsidiary Report under Section 197(16) of the Act:
companies that, to the best of their knowledge and belief, as In our opinion and according to the information and explanations
disclosed in the note 51 to the consolidated financial given to us and based on the reports of the statutory auditors of
statements, no funds have been advanced or loaned or such subsidiary companies incorporated in India which were not
invested (either from borrowed funds or share premium or audited by us, the remuneration paid during the current year by
any other sources or kind of funds) by the Holding Company the Holding Company and its subsidiary companies to its directors
or any of such subsidiary companies to or in any other is in accordance with the provisions of Section 197 of the Act. The
person(s) or entity(ies), including foreign entities remuneration paid to any director by the Holding Company and its
(“Intermediaries”), with the understanding, whether recorded subsidiary companies is not in excess of the limit laid down under
in writing or otherwise, that the Intermediary shall directly or Section 197 of the Act. The Ministry of Corporate Affairs has not
indirectly lend or invest in other persons or entities identified prescribed other details under Section 197(16) of the Act which
in any manner whatsoever by or on behalf of the Holding are required to be commented upon by us.
Company or any of such subsidiary companies (“Ultimate
For B S R & Co. LLP
Beneficiaries”) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries. Chartered Accountants
Firm's Registration No. 101248W/W-100022
(ii) The respective management of the Holding Company and its
subsidiary companies incorporated in India whose financial
K Sudhakar
statements have been audited under the Act has
represented to us and the other auditors of such subsidiary Place: Coimbatore Partner
companies that, to the best of their knowledge and belief, as Date: 03 May 2023 Membership No. 214150
ICAI UDIN: 23214150BGXPFZ2697

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 141

ANNEXURE TO THE AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS

Annexure A to the Independent Auditor’s Report on Consolidated Financial Statements of K.P.R. Mill Limited for the year ended
March 31, 2023

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

(xxi) In our opinion and according to the information and explanations given to us, there are no qualifications or adverse remarks by the
respective auditors in the Companies (Auditor’s Report) Order, 2020 reports of the companies incorporated in India and included in the
consolidated financial statements.
For B S R & Co. LLP
Chartered Accountants
Firm's Registration No. 101248W/W-100022

K Sudhakar
Partner
Place: Coimbatore Membership No. 214150
Date: 03 May 2023 ICAI UDIN: 23214150BGXPFZ2697

Annexure B to the Independent Auditor’s Report on the consolidated financial statements of K.P.R. Mill Limited for the year ended
31 March 2023

Report on the internal financial controls with reference to the aforesaid consolidated financial statements under Clause (i) of
Sub-section 3 of Section 143 of the Act

(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Opinion

In conjunction with our audit of the consolidated financial statements of K.P.R. Mill Limited (hereinafter referred to as “the Holding
Company”) as of and for the year ended 31 March 2023, we have audited the internal financial controls with reference to financial statements
of the Holding Company and such companies incorporated in India under the Act which are its subsidiary companies, as of that date.

In our opinion and based on the consideration of reports of the other auditors on internal financial controls with reference to financial
statements of subsidiary companies, as were audited by the other auditors, the Holding Company and such companies incorporated in India
which are its subsidiary companies, have, in all material respects, adequate internal financial controls with reference to financial statements
and such internal financial controls were operating effectively as at 31 March 2023, based on the internal financial controls with reference to
financial statements criteria established by such companies considering the essential components of such internal controls stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the
“Guidance Note”).

Management’s and Board of Directors’ Responsibilities for Internal Financial Controls

The respective Company's Management and the Board of Directors are responsible for establishing and maintaining internal financial
controls based on the internal financial controls with reference to financial statements criteria established by the respective company
considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the respective company's policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Act.

142 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

ANNEXURE TO THE AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financial controls with reference to financial statements based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under Section 143(10) of the Act, to
the extent applicable to an audit of internal financial controls with reference to financial statements. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated
effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to
financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included
obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the relevant subsidiary
companies in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our
audit opinion on the internal financial controls with reference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance
with generally accepted accounting principles. A company's internal financial controls with reference to financial statements include those
policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's
assets that could have a material effect on the consolidated financial statements.

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of
any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal
financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.

Other Matter

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with
reference to financial statements insofar as it relates to five subsidiary companies, which are companies incorporated in India, is based on
the corresponding reports of the auditors of such companies incorporated in India.

Our opinion is not modified in respect of this matter.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No. 101248W/W-100022

K Sudhakar
Place : Coimbatore
Partner
Date : 03 May 2023
Membership No. 214150
ICAI UDIN:23214150BGXPFZ2697

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 143

 CONSOLIDATED BALANCE SHEET AS AT 31.03.2023

CONSOLIDATED BALANCE SHEET

( ` in Lakhs)

Particulars Note As at 31.03.2023 As at 31.03.2022

ASSETS
(1) Non-current assets
(a) Property, plant and equipment 4 2,30,475 1,93,884
(b) Capital work-in-progress 4 8,665 11,532
( c) Goodwill 42 70 70
(d) Intangible assets 4 96 80
(e) Financial assets
(i) Investments 5 150 150
(ii) Other financial assets 6 3,560 2,470
(f) Deferred tax assets (net) 7 - 1,007
(g) Other tax assets (net) 8 584 173
(h) Other non - current assets 9 18,349 30,047
Total non - current assets 2,61,949 2,39,413
(2) Current assets
(a) Inventories 10 1,89,846 1,28,880
(b) Financial assets
(i) Investments 11 12,716 30,921
(ii) Trade receivables 12 62,544 48,024
(iii) Cash and cash equivalents 13 10,858 12,131
(iv) Bank balances other than Cash and cash equivalents 14 408 658
(v) Other financial assets 15 547 4,532
(c) Other current assets 16 20,895 22,243
Total current assets 2,97,814 2,47,389
Total assets 5,59,763 4,86,802
EQUITY AND LIABILITIES
(1) Equity
(a) Equity share capital 17 3,418 3,441
(b) Other equity 18 3,67,251 3,15,244
Total equity 3,70,669 3,18,685
Liabilities
(2) Non - current liabilities
(a) Financial liabilities
(i) Borrowings 19 44,845 62,607
(b) Deferred tax liabilities (net) 20 9,696 4,377
(c) Other non-current liabilities 21 2,037 3,188
Total non-current liabilities 56,578 70,172
(3) Current liabilities
(a) Financial liabilities
(i) Borrowings 22 89,964 55,923
(ii) Trade payables
(A)Total outstanding dues of micro enterprises and small enterprises; and 23 (A) 853 1,576
(B)Total outstanding dues of creditors other than micro enterprises and
small enterprises 23 (B) 32,752 25,716
(iii) Other financial liabilities 24 37 47
(b) Other current liabilities 25 8,833 10,543
(c) Current tax liabilities (net) 26 77 4,140
Total current liabilities 1,32,516 97,945
Total liabilities 1,89,094 1,68,117
Total equity and liabilities 5,59,763 4,86,802
Significant accounting policies 3
The notes from 1 to 52 are an integral part of these consolidated financial statements
For and on behalf of the Board of Directors of As per our report of even date attached
K.P.R. Mill Limited For B S R & Co. LLP
CIN : L17111TZ2003PLC010518 Chartered Accountants
Firm's Registration Number : 101248W/W-100022
K.P.Ramasamy KPD Sigamani P.Nataraj K Sudhakar
Chairman Managing Director Chief Executive Officer and Managing Director Partner
DIN: 00003736 DIN: 00003744 DIN : 00229137 Membership No. : 214150
PL Murugappan P.Kandaswamy
Chief Financial Officer Company Secretary
Coimbatore Coimbatore
03.05.2023 03.05.2023

144 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31.03.2023

CONSOLIDATED STATEMENT OF PROFIT & LOSS

( ` in Lakhs)
Year Ended
Particulars Note
31.03.2023 31.03.2022

I. Revenue from operations 27 6,18,588 4,82,248

II. Other income 28 6,232 8,722
III. Total Income (I+II) 6,24,820 4,90,970
IV. Expenses
Cost of materials consumed 29 3,89,656 2,94,065
Purchase of stock-in-trade 22,060 4,117
Changes in inventories of finished goods, stock -in- trade and work- in-
progress 30 (36,428) (29,608)
Employee benefits expense 31 54,864 44,545
Finance costs 32 7,886 2,329
Depreciation and amortisation expense 4 17,369 14,112
Other expenses 33 60,997 47,258
V. Total expenses 5,16,404 3,76,818
VI. Profit before tax (III-V) 1,08,416 1,14,152
VII.Tax expenses
Current tax
- Pertaining to current year 25,273 29,706
- Pertaining to prior year (982) (53)
Deferred tax 2,715 315
Total tax expense 27,006 29,968
VIII. Profit for the year (VI-VII) 81,410 84,184
Other comprehensive income
Item that will not be reclassified to profit or loss - -
Item that will be reclassified to profit or loss - -
IX. Other comprehensive income for the year, net of tax - -
X.Total comprehensive income for the year (VIII+IX) 81,410 84,184
Earnings per equity share (EPS)
Basic & diluted EPS (in `) of face value ` 1/- each 41 23.81 24.47

Significant accounting policies 3

The notes from 1 to 52 are an integral part of these consolidated financial statements As per our report of even date attached
For and on behalf of the Board of Directors of For B S R & Co. LLP
K.P.R. Mill Limited Chartered Accountants
CIN : L17111TZ2003PLC010518 Firm's Registration Number : 101248W/W-100022

K.P.Ramasamy KPD Sigamani P.Nataraj K Sudhakar

Chairman Managing Director Chief Executive Officer and Managing Director Partner
DIN: 00003736 DIN: 00003744 DIN : 00229137 Membership No. : 214150

PL Murugappan P.Kandaswamy
Chief Financial Officer Company Secretary

Coimbatore Coimbatore
03.05.2023 03.05.2023

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 145

 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31.03.2023

CONSOLIDATED CASH FLOW STATEMENT

( ` in Lakhs)

Year Ended
Particulars Note
31.03.2023 31.03.2022

CASH FLOW FROM OPERATING ACTIVITIES

Profit for the year 81,410 84,184
Adjustments for:
Income tax expenses recognised in the statement of profit and loss 27,006 29,968
Depreciation and amortisation 17,369 14,112
Net loss / (gain) on sale of property, plant and equipment (2,077) (301)
Finance costs 7,886 2,329
Interest income (217) (318)
Net (gain)/ loss on sale of current investments (1,399) (1,477)
Rental income from operating leases (236) (56)
Recovery of bad debts - (45)
Impairment loss on financial assets 182 229

Operating Profit before working capital changes 1,29,924 1,28,625

Changes in working capital:
Adjustments for (increase) / decrease in operating assets:
Inventories (60,966) (37,554)
Trade receivables (14,702) (16,110)
Other current assets 1,349 (5,744)
Other non-current financial assets (1,090) (870)
Other non-current assets (3,377) (10,218)
Other financial assets (263) 6

Adjustments for increase / (decrease) in operating liabilities:

Trade payables 6,313 17,334
Other current liabilities (1,710) 2,044
Other financial liabilities (10) (16)
Other non-current liabilities (2) (1)

Cash generated from operations 55,466 77,496

Net income tax (paid) (25,599) (28,073)
Net cash generated from operating activities (A) 29,867 49,423
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure on property, plant and equipments, including capital
advances (net of capital subsidy) (37,902) (89,237)
Proceeds from / (purchase of) current investments (net) 19,604 (6,100)
(Increase) /decrease in margin deposit accounts 250 273
Proceeds from sale of property, plant and equipment 2,840 571
Investment in term deposits (having original maturity of more than 3 months) 4,000 -
Interest received 465 231
Rental income received from operating leases 236 56

Net cash flow from/ (used in) investing activities (B) (10,507) (94,206)

146 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31.03.2023

CONSOLIDATED CASH FLOW STATEMENT

( ` in Lakhs)

Year Ended
Particulars Note
31.03.2023 31.03.2022

CASH FLOW FROM FINANCING ACTIVITIES

Payment towards buy-back of shares (18,001) -
Income tax on buy-back of shares (4,076) -
(Repayment of)/ proceeds from long-term borrowings (net) (17,808) 44,654
Proceeds from other current borrowings - -
Proceeds from/(Repayment of) working capital borrowings (net) 34,027 8,082
Finance costs paid (7,426) (2,101)
Dividends paid (7,349) (516)
Net cash flow from (used in) from financing activities (C) (20,633) 50,119
Net (decrease) / increase in cash and cash equivalents (A+B+C) (1,273) 5,336
Add: Opening cash and cash equivalents 12,131 6,795
Closing cash and cash equivalents (Refer note 13) 10,858 12,131
Closing cash and cash equivalents comprises
(a) Cash on hand 151 58
(b) Balance with Banks:
i) In Current accounts 3,120 5,289
ii) In EEFC accounts 7,587 6,784
10,858 12,131
Significant accounting policies 3
The notes from 1 to 52 are an integral part of these consolidated financial statements

For and on behalf of the Board of Directors of As per our report of even date attached
K.P.R. Mill Limited For B S R & Co. LLP
CIN : L17111TZ2003PLC010518 Chartered Accountants
ICAI Firm Registration Number : 101248W/W-100022

K.P.Ramasamy K Sudhakar
Chairman Partner
DIN : 00003736 Membership No. : 214150

KPD Sigamani P.Nataraj

Managing Director Chief Executive Of ficer and Managing Director
DIN : 00003744 DIN : 00229137

PL Murugappan P.Kandaswamy
Chief Financial Of ficer Company Secretary

Coimbatore Coimbatore
03.05.2023 03.05.2023

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 147

 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31.03.2023

CHANGES IN EQUITY
a. Equity share capital Notes ( ` in Lakhs)

Balance as at 01.04.2021 3,441

Changes in Equity Share Capital during 2021-22 -

Balance as at 31.03.2022 3,441

Less : Buy-back of equity shares 41 23
Balance as at 31.03.2023 3,418

b. Other Equity ( ` in Lakhs)

Reserves and Surplus

Other
Particulars Capital compreh- Total Other
Securities Capital General Retained Equity
Redemption ensive
Premium Reserve Reserve Earnings
Reserve income

Balance as at 01.04.2021 19,096 293 1,827 24,845 1,85,515 - 2,31,576

Profit for the year - - - - 84,184 - 84,184

Final dividend relating to 2020-21 paid
(` 0.75 per share on face value of ` 5/-) - - - - (516) - (516)
Balance as at 31.03.2022 19,096 293 1,827 24,845 2,69,183 - 3,15,244
Profit for the year - - - - 81,410 - 81,410
Premium on buy-back of equity shares (15,233) - - - (2,745) - (17,978)
Income tax on buy-back of equity shares - - - - (4,076) - (4,076)
Transfer to Capital redemption reserve - - 212 - (212) - -
Final dividend relating to 2021-22 paid
(` 0.15 per share on face value of ` 1/-) - - - - (513) - (513)
Interim dividend relating to 2022-23 paid
(` 2 per share on face value of ` 1/-) - - - - (6,836) - (6,836)
Balance as at 31.03.2023 3,863 293 2,039 24,845 3,36,211 - 3,67,251

Significant accounting policies 3

The notes from 1 to 52 are an integral part of these consolidated financial statements

For and on behalf of the Board of Directors of As per our report of even date attached
K.P.R. Mill Limited For B S R & Co. LLP
CIN : L17111TZ2003PLC010518 Chartered Accountants
Firm's Registration Number : 101248W/W-100022

K.P.Ramasamy P.Nataraj K Sudhakar

Chairman Chief Executive Officer and Managing Director Partner
DIN : 00003736 DIN : 00229137 Membership No. : 214150

KPD Sigamani P.Kandaswamy

Managing Director Company Secretary
DIN : 00003744

PL Murugappan
Chief Financial Officer

Coimbatore Coimbatore
03.05.2023 03.05.2023

148 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
1 CORPORATE INFORMATION These consolidated financial statements for the year ended
31.03.2023 are approved for issue by the Company's Board of
K.P.R. Mill Limited is one of the largest vertically integrated
directors on 03.05.2023.
apparel manufacturing companies in India with its registered
office situated at Coimbatore. The Company produces Yarn, Details of the Group’s accounting policies,including changes
Knitted Fabric, Readymade Garments and Wind power. It has thereto, are included in note 3. The Group has consistently applied
state-of-the-art production facilities in the State of Tamil Nadu, the accounting policies to all the periods present in these
India. The Company's registered office is at No. 9, Gokul consolidated financial statements.
Buildings, A.K.S Nagar, Thadagam Road, Coimbatore - 641001,
B BASIS OF CONSOLIDATION
Tamil Nadu, India. It has seven wholly owned subsidiary
companies as follows: (i) Subsidiaries

a) Quantum Knits Private Limited deals in Readymade Subsidiaries are entity controlled by the group. The Group
Garments. controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has
b) K.P.R.Sugar Mill Limited produces sugar along with Green
the ability to affect those returns through its power over the
energy viz ., Co-Gen Power. Its plant is Located at Vijayapur
entity. The financial statements of subsidiaries are included
District, Karnataka State. The Company also has Garment
in the consolidated financial statements from the date on
manufacturing facility at Arasur, Coimbatore and
which control commences until the date on which control
commenced its operations from November 2013.
ceases.
c) Jahnvi Motor Private Limited is the authorised dealers of
Consolidation procedure followed is as under:
AUDI cars in Coimbatore and Madurai Region.
Items of assets, liabilities, equity, income, expenses and
d) Galaxy Knits Limited has not commenced any major
cash flows of the parent with those of its subsidiaries are
business activity.
combined on a like-to-like basis. For this purpose, income
e) KPR Exports PLC has Garment manufacturing facility at and expenses of the subsidiaries are based on the amounts
Ethiopia, and commenced its operation from January 2019. of the assets and liabilities recognized in the consolidated
financial statements at the acquisition date.
f) KPR Mill Pte. Limited, is engaged in the business of trading
operations of garments from Singapore , and commenced its (ii) Loss of control
operation from January 2020.
When the Group loses control over a subsidiary, it
g) KPR Sugar and Apparels Limited, was incorporated on derecognises the assets and liabilities of the subsidiary, and
October 1, 2020 to produce Sugar and manufacture any related Non-controlling interests ('NCI') and other
Garments. components of equity. Any interest retained in the former
subsidiary is measured at fair value at the date the control is
The Consolidated Financial Statements relate to K.P.R. Mill
lost. Any resulting gain or loss is recognised in consolidated
Limited ('the Company') and its wholly owned subsidiary
statement of profit and loss.
companies Quantum Knits Private Limited, K.P.R.Sugar Mill
Limited, Galaxy Knits Limited, Jahnvi Motor Private Limited, (iii) Transactions eliminated on consolidation
KPR Exports PLC, Ethiopia, KPR Mill Pte. Limited,
Intra-group balances and transactions, and any unrealised
Singapore and KPR Sugar and Apparels Limited. The
income and expenses arising from intra-group transactions,
Company and its subsidiaries are hereinafter collectively
are eliminated. Unrealised losses are eliminated in the same
referred to as "the Group".
way as unrealised gains, but only to the extent that there is no
The Company's shares are listed in BSE Limited (BSE) and evidence of impairment.
National Stock Exchange of India Limited (NSE).
(iv) Goodwill on consolidation
2 BASIS OF PREPARATION
The excess of cost to the Group of its investment in
A STATEMENT OF COMPLIANCE subsidiaries, on the acquisition dates over and above the
Group’s share of equity in the subsidiaries, is recognised as
These consolidated financial statements of the Group have been
"Goodwill on Consolidation" in the consolidated financial
prepared in accordance with the Indian Accounting Standards
statements. The said goodwill is not amortized, however it is
(Ind AS) as per the Companies (Indian Accounting Standards)
tested for impairment at each balance sheet date, and
Rules, 2015 notified under section 133 of the Companies Act,
impairment loss if any, is provided for.
2013 ("the Act") and other relevant provisions of the Act, as
amended from time to time.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 149

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
C FUNCTIONAL AND PRESENTATION CURRENCY (i) Recognition of deferred tax assets
These consolidated financial statements are presented in Indian The extent to which deferred tax assets can be recognized is
Rupees (INR), which is also the Group’s functional currency. All based on an assessment of the probability that future taxable
financial information has been rounded-off to the nearest lakhs, income will be available against which the deductible temporary
unless otherwise indicated. differences and tax loss carry-forwards can be utilized. In addition,
careful judgment is exercised in assessing the impact of any legal
D BASIS OF MEASUREMENT
or economic limits or uncertainties in various tax issues. (also refer
These consolidated financial statements have been prepared note 7)
under the historical cost basis and on an accrual basis, except for
(ii) Impairment of non-financial assets
the following items which are measured on an alternative basis on
each reporting date: In assessing impairment, management has estimated economic
use of assets, the recoverable amount of each asset or cash-
I. Derivative financial instruments measured at fair value
generating units based on expected future cash flows and use an
through profit or loss;
interest rate to discount them. Estimation of uncertainty relates to
ii. Certain financial assets and liabilities measured at fair value assumptions about future operating cash flows and determination
(refer accounting policy on financial instruments) and of a suitable discount rate. (also refer note 3)
iii. Net defined (asset) / liability measured at fair value of plan (iii) Useful lives of depreciable assets
assets less present value of obligations as explained in note
Management reviews its estimate of useful lives of depreciable
3 (J).
assets at each reporting date, based on expected utility of assets.
E USE OF JUDGEMENTS AND ESTIMATES Uncertainties in these estimates relate to technological
In preparing these consolidated financial statements, obsolescence that may change utility of assets (also refer note 3).
management has made judgments and estimates that affect the (iv) Inventories:
application of accounting policies and the reported amounts of
Management has carefully estimated the net realizable values of
assets, liabilities, income and expenses. Actual results may differ
inventories, taking into account the most reliable evidence
from these estimates.
available at each reporting date. The future realization of these
Estimates and underlying assumptions are reviewed on an inventories may be affected by market-driven changes (also refer
ongoing basis. Revisions to accounting estimates are recognised note 3)
prospectively.
(v) Defined benefit obligation (DBO):
Judgements
The actuarial valuation of the DBO is based on a number of critical
Information about judgements made in applying accounting underlying management’s assumptions such as standard rates of
policies that have the most significant effects on the amounts inflation, mortality, discount rate and anticipation of future salary
recognised in the financial statements is included in the following increases. Variation in these assumptions may significantly
notes: impact the DBO amount and the annual defined benefit expenses
Note 16 - classification, measurement and recognition of (also refer note 46)
Government grants (vi) Recognition and measurement of provisions and
Note 7 - recognition and measurement of deferred tax assets contingencies:

Note 3(M) and 45 - Leases - whether the arrangement contains a Key assumptions about the likelihood and magnitude of an
lease; and lease classification outflow of resources (also refer note 36).

Note 3(H) and 39: Financial instruments: Classification and (vii) Impairment of financial assets - Refer note 3
measurement F MEASUREMENT OF FAIR VALUES
Assumptions and estimation uncertainties: A number of the Group’s accounting policies and disclosures
Information about assumptions and estimation uncertainties at require the measurement of fair values, for both financial and non-
the reporting date that have a significant risk of resulting in a financial assets and liabilities. Fair values are categorised into
material adjustment to the carrying amounts of assets and different levels in a fair value hierarchy based on the inputs used in
liabilities within the next financial year is included in the following the valuation techniques as follows:
notes: Level 1: quoted prices (unadjusted) in active markets for identical
assets or liabilities.

150 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
Level 2: inputs other than quoted prices included in Level 1 that The operating cycle is the time between the acquisition of assets
are observable for the asset or liability, either directly (i.e. as for processing and their realisation in cash or cash equivalents.
prices) or indirectly (i.e. derived from prices). The Group’s normal operating cycle is twelve months.
Level 3: inputs for the asset or liability that are not based on 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
observable market data (unobservable inputs).
A) INVENTORIES
When measuring the fair value of an asset or a liability, the Group
Inventories are valued at lower of cost and net realizable value.
uses observable market data as far as possible. The inputs used
The cost of raw materials, components, stock-in-trade,
to measure the fair value of assets or a liability fall into different
consumable stores and spare parts are determined using first-in
levels of the fair value hierarchy. Accordingly, the fair value
first-out / specific identification method and includes freight, taxes
measurement is categorised in its entirety in the same level of the
and duties, net of duty credits wherever applicable, and any other
fair value hierarchy as the low level input that is significant to the
expenditure incurred in bringing them to their present location and
entire measurement.
condition. In the case of finished goods and work-in-progress,
Management uses various valuation techniques to determine fair cost includes an appropriate share of manufacturing overheads
value of financial instruments (where active market quotes are not based on normal operating capacity.
available). This involves developing estimates and assumptions
Net realisable value is the estimated selling price in the ordinary
consistent with how market participants would price the
course of business, less the estimated cost of completion and
instrument. Management based on its assumptions on
selling expenses. The net realisable value of work-in-progress is
observable data as far as possible but where it not available, the
determined with reference to the selling prices of related finished
management uses the best information available. Estimated fair
products. Raw materials, stores and spares, packing and others
values may vary from the actual prices that would be achieved in
held for use in the production of finished goods are not written
an arm’s length transaction at the reporting date (also refer Note
down below except in cases where material prices have declined
39). The Group recognises transfers between levels of the fair
and it is estimated that the cost of the finished goods will exceed
value hierarchy at the end of the reporting period during which the
their net realizable value.
change has occurred.
The comparison of cost and net realisable value is made on an
G CURRENT AND NON-CURRENT CLASSIFICATION
item by item basis.
The Group classifies an asset as current asset when:
B) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF
- it expects to realise the asset, or intends to sell or consume it, CASH FLOW STATEMENT)
in its normal operating cycle;
Cash comprises cash on hand and demand deposits with banks.
- it holds the asset primarily for the purpose of trading; Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition),
- it expects to realise the asset within twelve months after the
highly liquid investments that are readily convertible into known
reporting period; or
amounts of cash and which are subject to insignificant risk of
- the asset is cash or a cash equivalent unless the asset is changes in value.
restricted from being exchanged or used to settle a liability for
C) CASH FLOW STATEMENT
at least twelve months after the reporting period.
Cash flows are reported using the indirect method, whereby profit
All other assets are classified as non-current.
/ (loss) is adjusted for the effects of transactions of non-cash
A liability is classified as current when: nature and any deferrals or accruals of past or future cash receipts
- it expects to settle the liability in its normal operating cycle; or payments. The cash flows from operating, investing and
financing activities of the Group are segregated based on the
- it holds the liability primarily for the purpose of trading;
available information. In cash flow statement, cash and cash
- the liability is due to be settled within twelve months after the equivalents include cash in hand, balances with banks in current
reporting period; or accounts and other short-term highly liquid investments with
original maturities of three months or less.
- it does not have an unconditional right to defer settlement of
the liability for at least twelve months after the reporting period. D) PROPERTY, PLANT AND EQUIPMENT
Terms of a liability that could, at the option of the counterparty,
Recognition and measurement:
result in its settlement by the issue of equity instruments do not
affect its classification. The cost of an item of property, plant and equipment shall be
recognised as an asset if, and only if it is probable that future
All other liabilities are classified as non-current.

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economic benefits associated with the item will flow to the Group Management’s Useful life
and the cost of the item can be measured reliably. Asset estimated as per
useful life Schedule II
Freehold land is stated at historical cost less any accumulated
impairment losses. Items of property, plant and equipment are Factory Building ~ 30 Years ~ 30 Years
measured at cost, which includes capitalised borrowing costs,
Non Factory Building ~ 60 Years ~ 60 Years
less accumulated depreciation and accumulated impairment
losses, if any. Cost of an item of property, plant and equipment Plant and equipments ~ 10-20 Years ~8-20 Years
comprises: Windmill ~ 12 Years ~ 22 Years
a. purchase price, including import duties and non-refundable Electricals ~ 14 Years ~ 10 Years
taxes on purchase (goods and service tax), after deducting Furnitures and fixtures ~ 10 Years ~ 10 Years
trade discounts and rebates.
Computers and accessories ~ 3 Years ~ 3-6 Years
b. any directly attributable cost of bringing the item to its working
Vehicles ~ 8-10 Years ~ 8-10 Years
condition for its intended use, estimated costs of dismantling
and removing the item and restoring the site on which it is
located. Depreciation method, useful lives and residual values are
reviewed at each financial year-end and adjusted if necessary, for
c. The cost of a self-constructed item of property, plant and each reporting period. Based on technical evaluation and
equipment comprises the cost of materials and direct labour, consequent advice, the management believes that its estimate of
any other costs directly attributable to bringing the item to useful life as given above best represent the period over which
working condition for its intended use, and estimated costs of management expects to use the asset.
dismantling and removing the item and restoring the site on
which it is located. On property, plant and equipment added/ disposed off during the
year, depreciation is charged on pro-rata basis for the period
Any gain/ loss on disposal of an item of property, plant and from/upto which the asset is ready for use/disposed off.
equipment is recognised in statement of profit and loss.
Capital work-in-progress
Subsequent expenditure
Property, plant and equipment in the course of construction for
Subsequent expenditure is capitalised only if it is probable that production, supply or administrative purposes are carried at cost,
future economic benefits associated with the item will flow to the less any recognised impairment loss. Cost includes professional
Group and the cost of the item can be measured reliably. fees and, for qualifying assets, borrowing costs capitalised in
Component accounting accordance with the Group's accounting policy. They are
classified to the appropriate categories of property, plant and
If significant parts of an item of property, plant and equipment have
equipment when completed and ready for intended use.
different useful lives, then they are accounted for as separate
Depreciation of these assets, on the same basis as other property
items (major components) of property, plant and equipment.
assets, commences when the assets are ready for their intended
Depreciation use.
Depreciation is calculated on the cost of items of property, plant INTANGIBLE ASSETS
and equipment less their estimated residual values over the
Intangible assets with finite useful lives that are acquired
estimated useful lives using the straight-line method over the
separately are carried at cost less accumulated amortisation and
estimated useful lives and is generally recognised in Statement of
accumulated impairment losses. Amortisation is calculated on a
profit and loss. Freehold land is not depreciated.
straight-line basis over their estimated useful lives and it is
Depreciation on property, plant and equipment is charged over the included in the statement of profit and loss. The estimated useful
estimated useful life of the asset or part of the asset (after life and amortisation method are reviewed at the end of each
considering double/triple shifts) as evaluated on technical reporting period, with the effect of any changes in estimate being
assessment on straight-line method, in accordance with Part A of accounted for on a prospective basis. Intangible assets with
Schedule II to the Companies Act, 2013. indefinite useful lives that are acquired separately are carried at
The estimated useful life of the property, plant and equipment cost less accumulated impairment losses.
followed by the Group for the current and the comparative period The estimated useful life of intangible assets consisting computer
are as follows : software is 3 years.
An intangible asset is derecognised on disposal, or when no future
economic benefits are expected from use or disposal. Gains or

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losses arising from derecognition of an intangible asset, representative of the pattern in which benefit from the use of the
measured as the difference between the net disposal proceeds underlying asset is diminished.
and the carrying amount of the asset, are recognised in statement
Interest income is recognised using effective interest rate method.
of profit and loss when the asset is derecognised.
Interest income on overdue receivables is recognized only when
E) REVENUE FROM CONTRACTS WITH CUSTOMERS there is a certainty of receipt.The 'effective interest rate' is the rate
that exactly discounts estimated future cash payments or receipts
The Group generates revenue primarily from sale of Yarn, Knitted
through the expected life of financial instrument to: the gross
Fabric, Readymade Garments, Sugar, Ethanol and Power. The
carrying amount of the financial asset; or the amortised cost of the
Group also earns revenue from rendering of services.
financial liability.
Revenue is measured based on the consideration specified in a
Export incentives are accounted in the year of exports based on
contract with a customer. The Group recognises revenue when it
eligibility and expected amount on realisation.
transfers control over a good or service to a customer.
G) FOREIGN CURRENCY
1.1 Sale of products:
i) Foreign Currency Transactions And Translations
Revenue is recognised when a promise in a customer contract
(performance obligation) has been satisfied by transferring Transactions in foreign currencies are translated into the
control over the promised goods to the customer. Control over functional currency at the exchange rates at the dates of the
a promised goods refers to the ability to direct the use of, and transactions or an average rate if the average rate approximates
obtain substantially all of the remaining benefits from, those the actual rate at the date of the transaction. Foreign exchange
goods. Control is usually transferred upon shipment, delivery gains and losses from settlement of these transactions are
to, upon receipt of goods by the customer, in accordance with recognised in the statement of profit and loss.
the individual delivery and acceptance terms agreed with the
Monetary assets and liabilities denominated in foreign currencies
customers. Invoices are usually payable within 180 days
are translated into the functional currency at the exchange rate at
depending upon the individual contract with the customers.
the reporting date. Non-monetary assets and liabilities that are
The amount of revenue to be recognized (transaction price) is measured at fair value in a foreign currency are translated into the
based on the consideration expected to be received in functional currency at the exchange rate when the fair value was
exchange for goods, excluding amounts collected on behalf of determined. Non-monetary assets and liabilities that are
third parties such as sales tax or other taxes directly linked to measured at historical cost in a foreign currency are translated at
sales. If a contract contains more than one performance the exchange rate at the date of the transaction. Exchange
obligation, the transaction price is allocated to each differences arising on translation are recognised in the statement
performance obligation based on their relative stand-alone of profit and loss.
selling prices. Revenue from product sales are recorded net of
ii) Foreign operation
allowances for estimated rebates, cash discounts and
estimates of product returns, all of which are established at the The assets and liabilities of foreign operations (subsidiaries) and
time of sale. Our customers have the contractual right to return fair value adjustments arising on acquisition, are translated into
goods only when authorised by the Group. INR, at the exchange rates at the reporting date. The income and
expenses of foreign operations are translated into INR at the
1.2 Revenue from services:
exchange rates at the dates of the transactions or an average rate
Revenue from sale of services is recognised when related if the average rate approximates the actual rate at the date of the
services are rendered as per the terms agreed with transaction.
customers.
Foreign currency differences are recognised in OCI and
1.3 Export incentives accumulated in the equity (as exchange differences on translating
the financial statements of a foreign operation), except to the
Export incentives are accounted in the year of exports based
extent that the exchange differences are allocated to NCI.
on eligibility and expected amount on realisation.
When a foreign operation is disposed of in its entirety or partially
F) OTHER INCOME
such that control, significant influence or joint control is lost, the
Dividend income from investments is recognized when the right to cumulative amount in translation reserve related to that foreign
receive the payment is established and when no significant operation reclassifed to statement of profit and loss as part of the
uncertainty as to measurability or collectability exists. gain or loss on disposal. If the Group disposes of part of its interest
Rental income under operating leases is recognized in the in a subsidiary but retains control, then the relevant proportion of
statement of profit and loss on a straight-line basis over the term of the cumulative amount is re-allocated to NCI. When the Group
the lease except where another systematic basis is more disposes of only a part of its interest in an associate or joint
venture while retaining significant influence or joint control, the

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ACCOUNTING POLICIES
relevant proportion of the cumulative amount is reclassified to (a) it is held within a business model whose objective is to hold
statement of profit and or loss. assets to collect contractual cash flows; and
H) FINANCIAL INSTRUMENTS (b) its contractual terms give rise on specified dates to cash
flows that are solely payments of principal and interest (SPPI)
(i) Recognition and initial measurement
on the principal amount outstanding.
Trade receivables and debt securities are initially recognised
Debt instruments at FVTOCI
when they are originated.
A debt investment will be measured at FVTOCI if it meets both of
All other financial assets and financial liabilities are intially
the following conditions and is not designated as at FVTPL:
recognized when the Group becomes a party to the contractual
provisions of the instrument. A financial asset (unless it is a trade (a) it is held within a business model whose objective is
receivable without a significant financing component) or financial achieved by both collecting contractual cash flows and selling
liability is initially measured at fair value plus or minus, for an item financial assets; and
not at FVTPL, transaction costs that are directly attributable to its
(b) its contractual terms of the give rise on specified dates to
acquisition or issue. A trade receivable without a significant
cash flows that are solely payments of principal and interest
financing component is initially measured at the transaction price.
(SPPI) on the principal amount outstanding.
The 'trade payable' is in respect of the amount due on account of
Equity instruments at FVTOCI
goods purchased in the normal course of business. They are
recognised at their transaction and services availed value if the On initial recognition of an equity investment that is not held for
transaction do not contain significant financing component. trading, the Group may irrevocably elect to present subsequent
changes in the investment’s fair value in Other comprehensive
(ii) Classification and subsequent measurement
income ('OCI'). This election is made on an investment-by-
Financial assets investment basis.
On initial recognition, a financial asset is classified as measured at If the Group decides to classify an equity instrument as FVTOCI,
then all fair value changes on the instrument, excluding dividend
- amortised cost;
are recognised in OCI which is not subsequently recycled to
- Fair value through other comprehensive income (FVTOCI) – statement of profit and loss.
debt investment;
Financial assets at FVTPL
- Fair value through other comprehensive income (FVTOCI) –
All financial assets not classified as measured at amortised cost or
equity investment; or
FVTOCI as described above are measured at FVTPL.
- Fair value through profit and loss (FVTPL)
On initial recognition, the Group may irrevocably designate a
For the purpose of subsequent measurement, financial financial asset that otherwise meets the requirements to be
instruments of the Group are classified in the following categories: measured at amortised cost or at FVTOCI as at FVTPL if doing so
non-derivative financial assets comprising amortised cost, debt eliminates or significantly reduces an accounting mismatch that
instruments at fair value through other comprehensive income would otherwise arise.
(FVTOCI), equity instruments at FVTOCI or fair value through
Financial assets: Business model assessment
profit and loss account (FVTPL), non derivative financial liabilities
at amortised cost or FVTPL and derivative financial instruments The Group makes an assessment of the objective of the business
(under the category of financial assets or financial liabilities) at model in which a financial asset is held at a portfolio level because
FVTPL. this best reflects the way the business is managed and
information is provided to management. The information
The classification of financial instruments depends on the
considered includes:
objective of the business model for which it is held. Management
determines the classification of its financial instruments at initial - the stated policies and objectives for the portfolio and the
recognition. operation of those policies in practice. These include whether
management’s strategy focuses on earning contractual
a) Non-derivative financial assets
interest income, maintaining a particular interest rate profile,
Financial assets at amortised cost matching the duration of the financial assets to the duration of
A financial asset is measured at amortised cost if it meets both of any related liabilities or expected cash outflows or realising
the following conditions and is not designated as at FVTPL : cash flows through the sale of the assets;
- how the performance of the portfolio is evaluated and
reported to the Group’s management;

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- the risks that affect the performance of the business model contractual interest (which may also include reasonable
(and the financial assets held within that business model) and additional compensation for early termination) is treated as
how those risks are managed; consistent with this criterion if the fair value of the prepayment
feature is insignificant at initial recognition.
- how managers of the business are compensated – e.g.
whether compensation is based on the fair value of the assets Financial assets – Subsequent measurement and gains and
managed or the contractual cash flows collected; and losses
- the frequency, volume and timing of sales of financial assets Financial assets are not reclassified subsequent to their initial
in prior periods, the reasons for such sales and expectations recognition unless the Group changes its business model for
about future sales activity. managing financial assets, in which case all affected financial
assets are reclassified on the first day of the first reporting period
Transfers of financial assets to third parties in transactions that do
following the change in the business model.
not qualify for derecognition are not considered sales for this
purpose, consistent with the Group’s continuing recognition of the Financial assets at FVTPL:
assets.
These assets are subsequently measured at fair value. Net gains
Financial assets that are held for trading or are managed and and losses, including any interest or dividend income, are
whose performance is evaluated on a fair value basis are recognised in consolidated statement of profit and loss.
measured at FVTPL.
Financial assets at amortised cost:
Financial assets: Assessment whether contractual cash flows are
These assets are subsequently measured at amortised cost using
solely payments of principal and interest
the effective interest method. The amortised cost is reduced by
For the purposes of this assessment, ‘principal’ is defined as the impairment losses. Interest income, foreign exchange gains and
fair value of the financial asset on initial recognition. ‘Interest’ is losses and impairment are recognised in cosolidated statement of
defined as consideration for the time value of money and for the profit and loss. Any gain or loss on derecognition is recognised in
credit risk associated with the principal amount outstanding during consolidated statement of profit and loss.
a particular period of time and for other basic lending risks and
Debt investments at FVOCI:
costs (e.g. liquidity risk and administrative costs), as well as a
profit margin. These assets are subsequently measured at fair value. Interest
income calculated using the effective interest method, foreign
In assessing whether the contractual cash flows are solely
exchange gains and losses and impairment are recognised in
payments of principal and interest, the Group considers the
profit or loss. Other net gains and losses are recognised in OCI.
contractual terms of the instrument. This includes assessing
On derecognition, gains and losses accumulated in OCI are
whether the financial asset contains a contractual term that could
reclassified to consolidated statement of profit and loss.
change the timing or amount of contractual cash flows such that it
would not meet this condition. In making this assessment, the Equity investments at FVOCI:
Group considers: These assets are subsequently measured at fair value.
- contingent events that would change the amount or timing of Impairment losses (and reversal of impairment losses) on equity
cash flows; investments measured at FVOCI are not reported separately from
other changes in fair value. Dividends are recognised as income
- terms that may adjust the contractual coupon rate, including
in profit or loss unless the dividend clearly represents a recovery
variable interest rate features;
of part of the cost of the investment. Other net gains and losses
- prepayment and extension features; and are recognised in OCI and are not reclassified to consolidated
statement of profit and loss.
- terms that limit the Group’s claim to cash flows from specified
assets (e.g. non- recourse features). Financial liabilities - Classification, subsequent
measurement and gains and losses
A prepayment feature is consistent with the solely payments of
principal and interest criterion if the prepayment amount Financial liabilities are classified as measured at amortised cost or
substantially represents unpaid amounts of principal and interest FVTPL. A financial liability is classified as at FVTPL if it is classified
on the principal amount outstanding, which may include as held for trading, it is a derivative or it is designated as such on
reasonable additional compensation for early termination of the initial recognition. Financial liabilities at FVTPL are measured at
contract. Additionally, for a financial asset acquired at a significant fair value and net gains and losses, including any interest
discount or premium to its contractual par amount, a feature that expense, are recognised in profit or loss. Other financial liabilities
permits or requires prepayment at an amount that substantially are subsequently measured at amortised cost using the effective
represents the contractual par amount plus accrued (but unpaid) interest method. Interest expense and foreign exchange gains

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and losses are recognised in profit or loss. Any gain or loss on I) GOVERNMENT GRANTS, SUBSIDIES AND EXPORT
derecognition is also recognised in consolidated statement of INCENTIVES
profit and loss.
Government grants and subsidies related to assets, including
(iii) Derecognition non-monetary grants, are initially recognised as deferred income
at fair value if there is reasonable assurance that they will be
Financial assets
received and the Group will comply with the conditions associated
The Group derecognises a financial asset when the contractual with the grant they are then recognised in statement of profit and
rights to the cash flows from the financial asset expire, or it loss as other operating revenue / other income on a systematic
transfers the rights to receive the contractual cash flows in a basis.
transaction in which either substantially all of the risks and
Government grants received in relation to assets are presented as
rewards of ownership of the financial asset are transferred or the
a reduction to the carrying amount of the related asset and the
Group neither transfers nor retains substantially all of the risks and
same is recognised in statement of profit and loss over the life of a
rewards of ownership and does not retain control of the financial
depreciable asset as a reduced depreciation expense.
asset.
Repayment of a grant related to an asset is recognised by
If the Group enters into transactions whereby it transfers assets increasing the carrying amount of the asset and the cumulative
recognised on its balance sheet, but retains either all or additional depreciation that would have been recognised in the
substantially all of the risks and rewards of the transferred assets. statement of profit and loss in the absence of the grant is
In these cases the transferred assets are not derecognised. recognised immediately in the statement of profit and loss.
Financial liabilities Government grants relating to income are deferred and
The Group derecognises a financial liability when its contractual recognised in the statement of profit and loss over the period
obligations are discharged or cancelled, or expire. necessary to match them with the costs that they intended to
compensate and presented in other operating revenue.
The Group also derecognises a financial liability when its terms
are modified and the cash flows of the modified liability are Grants that compensate the Group for expenses incurred are
substantially different. In this case, a new financial liability based recognised in profit or loss as other income on a systematic basis
on the modified terms is recognised at fair value. in the periods in which the expenses are recognised, unless the
conditions for receiving the grant are met after the related
On a derecognition of a financial liability, the difference between
expenses have been recognised. In this case, the grant is
the extinguished and the consideration paid (including any
recognised when it becomes receivable.
non-cash assets transferred or liabilities assumed) and the new
financial liability with modified terms is recognised in statement Export benefits are accounted for in the year of exports based on
profit and loss. eligibility and when there is no uncertainty in receiving the same.

(iv) Offsetting J) EMPLOYEE BENEFITS

Financial assets and financial liabilities are offset and the net (a) Short term employee benefits:
amount presented in the balance sheet when, and only when, the Short-term employee benefits are measured on an undiscounted
Group currently has a legally enforceable right to set off the basis and expensed as the related service is provided. A liability is
amounts and it intends either to settle them on a net basis or to recognised for the amount expected to be paid under short-term
realise the asset and settle the liability simultaneously. cash bonus, if the Group has a present legal or constructive
(v) Derivative financial instruments obligation to pay this amount as a result of past service provided
by the employee and the obligation can be estimated reliably.
The Group holds derivative financial instruments such as foreign
exchange forward contracts to mitigate the risk of changes in (b) Defined contribution plan
foreign exchange rates on foreign currency assets or liabilities Provident Fund & Employee State Insurance
and forecasted cash flows denominated in foreign currencies. The
A defined contribution plan is a post-employment benefit plan
counterparty for these contracts is generally a bank.
where the Group’s legal or constructive obligation is limited to the
Derivatives are recognized and measured at fair value. amount that it contributes to a separate legal entity.The Group
Attributable transaction costs are recognized in statement of profit makes specified contributions towards Government adminstered
and loss. Subsequent to initial recognition, derivatives are provident fund employee state insurance schemes. Obligations
measured at fair value, and changes therein are generally for contributions to defined contribution plan are expensed as an
recognised in profit and loss. Derivatives are carried as financial employee benefits expense in the statement of profit and loss in
assets when the fair value is positive and as financial liabilities period in which the related service is provided by the employee.
when the fair value is negative.

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Prepaid contributions are recognised as an asset to the extent that substantial period of time to get ready for their intended use or
a cash refund or a reduction in future payments is available. sale, are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use or sale.
(c) Defined benefit plan
Interest income earned on the temporary investment of specific
A defined benefit plan is a post-employment benefit plan other
borrowings pending their expenditure on qualifying assets is
than a defined contribution plan. Post employment benefit
deducted from the borrowing costs eligible for capitalisation.
comprise of Gratuity which are accounted for as follows:
All other borrowing costs are recognised in statement of profit and
Gratuity Fund
loss in the year in which they are incurred.
The Group’s net obligation in respect of defined benefit plans is
L) SEGMENT REPORTING
calculated separately for each plan by estimating the amount of
future benefit that employees have earned in the current and prior The Group has classified its operations primarily into three
periods, discounting that amount and deducting the fair value of reportable segments viz., Textile, Sugar and Others based on
any plan assets. 'Management Approach' as defined in Ind-AS 108. These
segments offer different products and services, and are managed
The calculation of defined benefit obligations is performed
separately because they require different technology and
annually by a qualified actuary using the projected unit credit
marketing strategies. For each of the reportable segments, the
method. When the calculation results in a potential asset for the
respective Company's Board of Directors reviews internal
Group, the recognised asset is limited to the present value of
management reports on atleast a quarterly basis.The reported
economic benefits available in the form of any future refunds from
operating segments:
the plan or reductions in future contributions to the plan (‘the asset
ceiling’). To calculate the present value of economic benefits, a. engage in business activities from which the Group earns
consideration is given to any applicable minimum funding revenues and incur expenses,
requirements.
b. have their operating results regularly reviewed by the
Remeasurements of the net defined benefit liability, which entity’s chief operating decision makers to make decisions
comprise actuarial gains and losses, the return on plan assets about resources to be allocated to the segment and assess its
(excluding interest) and the effect of the asset ceiling (if any, performance, and
excluding interest), are recognised immediately in OCI. The
c. have discrete financial information available.
Group determines the net interest expense (income) on the net
defined benefit liability (asset) for the period by applying the M) LEASE
discount rate determined by reference to market yields at the end At inception of a contract, the Group assesses whether a contract
of the reporting period on government bonds. This rate is applied is, or contains, a lease. A contract is, or contains, a lease if the
on the net defined benefit liability (asset), both as determined at contract conveys the right to control the use of an identified asset
the start of the annual reporting period, taking into account any for a period of time in exchange for consideration. To assess
changes in the net defined benefit liability (asset) during the period whether a contract conveys the right to control the use of an
as a result of contributions and benefit payments. Net interest identified asset, the Group uses the definition of a lease in Ind AS
expense and other expenses related to defined benefit plans are 116.
recognised in the statement of profit and loss.
i) As a lessee
When the benefits of a plan are changed or when a plan is
At commencement or on modification of a contract that contains a
curtailed, the resulting change in benefit that relates to past
lease component, the Group allocates the consideration in the
service (‘past service cost’ or ‘past service gain’) or the gain or loss
contract to each lease component on the basis of its relative
on curtailment is recognised immediately in consolidated
stand-alone prices. However, for the leases of property the Group
statement of profit and loss. The Group recognises gains and
has elected not to separate non-lease components and account
losses on the settlement of a defined benefit plan when the
for the lease and non-lease components as a single lease
settlement occurs.
component.
K) BORROWING COSTS
The Group recognises a right-of-use asset and a lease liability at
Borrowing cost are interest and other costs (including exchange the lease commencement date. The right-of-use asset is initially
differences relating to foreign currency borrowings to the extent measured at cost, which comprises the initial amount of the lease
that they are considered as adjustment to interest costs) incurred liability adjusted for any lease payments made at or before the
in connection with the borrowings of funds. Borrowing costs commencement date, plus any initial direct costs incurred and an
directly attributable to the acquisition, construction or production estimate of costs to dismantle and remove the underlying asset or
of qualifying assets, which are assets that necessarily take a to restore the underlying asset or the site on which it is located,
less any lease incentives received.

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The right-of-use asset is subsequently depreciated using the separately in balance sheet within “Financial liabilities”.
straight-line method from the commencement date to the end of
Short term leases and low value assets:
the lease term, unless the lease transfers ownership of the
underlying asset to the Group by the end of the lease term or the The Group has elected not to recognise right-of-use assets and
cost of the right-of-use asset reflects that the Group will exercise a lease liabilities for leases of low-value assets and short-term
purchase option. In that case the right-of-use asset will be leases, including IT equipment. The Group recognises lease
depreciated over the useful life of the underlying asset, which is payments associated with these leases are recognized as an
determined on the same basis as those of property, plant and expense in consolidated statement of profit and loss on a straight-
equipment. In addition, the right-of-use asset is periodically line basis over the lease term.
reduced by impairment losses, if any, and adjusted for certain ii) As a lessor
remeasurements of the lease liability.
At inception or on modification of a contract that contains a lease
The lease liability is initially measured at the present value of the component, the Group allocates the consideration in the contract
lease payments that are not paid at the commencement date, to each lease component on the basis of their relative stand-alone
discounted using interest rate implicit in the lease or, if that rate prices.
cannot be readily determined, the Group’s incremental borrowing
When the Group acts as a lessor, it determines at lease inception
rate. Generally, the Group uses its incremental borrowing rate as
whether each lease is a finance lease or an operating lease.
the discount rate.The Group determines its incremental borrowing
rate by obtaining interest rates from various external financing To classify each lease, the Group makes an overall assessment of
sources and makes certain adjustments to reflects the terms of whether the lease transfers substantially all of the risks and
the lease and type of the asset leased. rewards incidental to ownership of the underlying asset. If this is
the case, then the lease is a finance lease; if not, then it is an
Lease payments included in the measurement of the lease liability
operating lease. As a part of this assessment, the Group
comprise the following:
considers certain indicators such as whether the lease is for the
- fixed payments, including in-substance fixed payments; major part of the economic life of the asset.
-variable lease payments that depend on an index or rate, The Group recognises lease payments received under operating
initially measured using the index or rate as at the leases as income on a straight-line basis over the lease term as
commencement date; part of other income. In case of a finance lease, finance income is
- amounts expected to be payable under a residual value recognised over the lease term based on a pattern reflecting a
guarantee; and constant periodic rate of return on the lessor’s net investment in
the lease.
-the exercise price under a purchase option that the Group is
reasonably certain to exercise, lease payments in an optional If an arrangement contains lease and non-lease components,
renewal period if the Group is reasonably certain to exercise then the Group applies Ind AS 115 Revenue from contracts with
an extension option, and penalties for early termination of a customers to allocate the consideration in the contract.
lease unless the Group is reasonably certain not to terminate N) EARNINGS PER SHARE
early.
Basic earnings per share are calculated by dividing the net profit
The lease liability is measured at amortised cost using the or loss for the period attributable to equity shareholders by the
effective interest method. It is remeasured when there is a change weighted average number of equity shares outstanding during the
in future lease payments arising from a change in an index or rate, year. The weighted average number of equity shares outstanding
if there is a change in the Group’s estimate of the amount during the period is adjusted for events including a bonus issue,
expected to be payable under a residual value guarantee, if the bonus element in a rights issue to existing shareholders, share
Group changes its assessment of whether it will exercise a split and reverse share split (consolidation of shares). Diluted
purchase, extension or termination option or if there is a revised earnings per share is computed by dividing the profit (considered
in-substance fixed lease payment. in determination of basic earnings per share) after considering the
When the lease liability is remeasured in this way, a corresponding effect of interest and other financing costs or income (net of
adjustment is made to the carrying amount of the right-of-use attributable taxes) associated with dilutive potential equity shares
asset or is recorded in profit or loss if the carrying amount of the by the weighted average number of equity shares considered for
right-of-use asset has been reduced to zero. The Group presents deriving basic earnings per share adjusted for the weighted
right-of-use assets that do not meet the definition of investment average number of equity shares that would have been issued
property in “property, plant and equipment” and lease liabilities upon conversion of all dilutive potential equity shares.

158 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
O) INCOME TAXES The carrying amount of deferred tax assets is reviewed at the end
of each reporting period and reduced to the extent that it is no
Income tax expense comprises current and deferred tax. It is
longer probable that sufficient taxable profits will be available to
recognised in profit or loss except to the extent that it relates to a
allow all or part of the asset to be recovered. Such reductions are
business combination or to an item recognised directly in equity or
reversed when the probability of future taxable profits improves.
in other comprehensive income.
Deferred tax liabilities and assets are measured at the tax rates
The Group has determined that interest and penalties related to
that are expected to apply in the period in which the liability is
income taxes, including uncertain tax treatments, do not meet the
settled or the asset realised, based on tax rates (and tax laws) that
definition of income taxes, and therefore accounted for them
have been enacted or substantively enacted by the end of the
under Ind AS 37 Provisions, Contingent Liabilities and Contingent
reporting period.
Assets.
The measurement of deferred tax liabilities and assets reflects the
i) Current tax
tax consequences that would follow from the manner in which the
Current tax comprises the expected tax payable or receivable on Group expects, at the end of the reporting period, to recover or
the taxable income or loss for the year and any adjustment to the settle the carrying amount of its assets and liabilities.
tax payable or receivable in respect of previous years. The
Deferred tax assets and liabilities are offset if there is a legally
amount of current tax payable or receivable is the best estimate of
enforceable right to offset current tax liabilities and assets, and
the tax amount expected to be paid or received that reflects the
they relate to income taxes levied by same tax authority on same
uncertainty, related to income taxes, if any. It is measured using
taxable entity, or on different tax entities, but they intend to settle
tax rates (and tax laws) enacted or substantively enacted by the
current tax liabilities and assets on a net basis or its tax assets and
reporting date.
liabilities will be realised simultaneously.
Current tax liabilities and current tax assets are offset only if there
iii) Recognition
is a legally enforceable right to set off the recognised amounts,
and it is intended to realise the asset and settle the liability on a net Current and deferred tax are recognised in statement of profit and
basis or simultaneously. loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the
ii) Deferred tax
current and deferred tax are also recognised in other
Deferred tax is recognised on temporary differences between the comprehensive income or directly in equity respectively. Where
carrying amounts of assets and liabilities in the financial current tax or deferred tax arises from the initial accounting for a
statements and the corresponding tax bases used in the business combination, the tax effect is included in the accounting
computation of taxable profit. Deferred tax liabilities are generally for the business combination.
recognised for all taxable temporary differences. Deferred tax
P) IMPAIRMENT
assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will Impairment of Financial Instruments
be available against which those deductible temporary
The Group recognises loss allowance for expected credit loss on
differences can be utilised. Such deferred tax assets and
financial assets measured at amortised cost.
liabilities are not recognised if the temporary difference arises
from the initial recognition (other than in a business combination) At each reporting date, the Group assesses whether financial
of assets and liabilities in a transaction that affects neither the assets carried at amortised cost are credit impaired. A financial
taxable profit nor the accounting profit. In addition, deferred tax asset is ‘credit impaired’ when one or more events that have a
liabilities are not recognised if the temporary difference arises detrimental impact on the estimated future cash flows of the
from the initial recognition of goodwill. financial asset have occurred.

Deferred tax liabilities are recognised for taxable temporary Evidence that a financial asset is credit - impaired includes the
differences associated with investments in subsidiaries, except following observable data:
where the Group is able to control the reversal of the temporary - significant financial difficulty;
difference and it is probable that the temporary difference will not
- a breach of contract such as a default or being past due;
reverse in the foreseeable future. Deferred tax assets arising
from deductible temporary differences associated with such - the restructuring of a loan or advance by the Group on terms
investments and interest are only recognised to the extent that it is that the Group would not consider otherwise;
probable that there will be sufficient taxable profits against which
- it is probable that the borrower will enter bankruptcy or other
to utilise the benefits of the temporary differences and they are
financial reorganisation; or
expected to reverse in the foreseeable future.
- the disappearance of an active market for a security because
of financial difficulties.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 159

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
Loss allowances for trade receivables are measured at an amount estimated. Goodwill is tested annually for impairment.
equal to lifetime expected credit losses. Lifetime expected credit For impairment testing, assets that do not generate independent
losses are credit losses that result from all possible default events cash inflows are grouped together into cash-generating units
over expected life of financial instrument. The maximum period (CGUs). Each CGU represents the smallest group of assets that
considered when estimating expected credit losses is the generates cash inflows that are largely independent of the cash
maximum contractual period over which the Group is exposed to inflows of other assets or CGUs.
credit risk.
The recoverable amount of a CGU (or an individual asset) is the
When determining whether the credit risk of a financial asset has higher of its value in use and its fair value less costs to sell. Value in
increased significantly since initial recognition and when use is based on the estimated future cash flows, discounted to
estimating expected credit losses, the Group considers their present value using a pre-tax discount rate that reflects
reasonable and supportable information that is relevant and current market assessments of the time value of money and the
available without undue cost or effort. This includes both risks specific to the CGU (or the asset).
quantitative and qualitative information and analysis, based on
An impairment loss is recognised if the carrying amount of an
the Group’s historical experience and informed credit assessment
asset or CGU exceeds its estimated recoverable amount.
and including forward looking information. The Group assumes
Impairment losses are recognised in the statement of profit and
that credit risk on a financial asset has increased significantly if it is
loss. Impairment loss recognised in respect of a CGU is allocated
past due.
first to reduce the carrying amount of any goodwill allocated to the
The Group considers a financial asset to be in default when: CGU, and then to reduce the carrying amounts of the other assets
- the recipient is unlikely to pay its credit obligations to the of the CGU (or group of CGUs) on a pro rata basis.
Group in full, without recourse by the Group to actions such as An impairment loss in respect of assets for which impairment loss
realising security (if any is held); or has been recognised in prior periods, the Group reviews at each
- the financial asset is past due. reporting date whether there is any indication that loss has
decreased or no longer exists. An impairment loss is reversed if
Measurement of expected credit losses there has been a change in estimates used to determine
Expected credit losses are a probability weighted estimate of recoverable amount. Such a reversal is made only to an extent
credit losses. Credit losses are measured as the present value of that asset’s carrying amount does not exceed carrying amount
all cash shortfalls (i.e. the difference between the cash flows due that would have been determined, net of depreciation/
to the Group in accordance with the contract and the cash flows amortisation, if no impairment loss was recognised.
that the Group expects to receive). Q) PROVISIONS, CONTINGENT LIABILITIES AND
Presentation of allowance for expected credit losses in the CONTINGENT ASSETS
balance sheet Provisions:
Loss allowances for financial assets measured at amortised cost Provision is recognised, when the Group has a present obligation
are deducted from the gross carrying amount of the assets. (legal or constructive) as a result of a past event, it is probable that
Write- off an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be
The gross carrying amount of a financial asset is written off (either
made of the amount of the obligation. Provisions are determined
partially or in full) to the extent that there is no realistic prospect of
by discounting the expected future cash flows (representing the
recovery. This is generally the case when the Group determines
best estimate of the expenditure required to settle the present
that the debtor does not have assets or sources of income that
obligation at the balance sheet date) at a pre-tax rate that reflects
could generate sufficient cash flows to repay the amounts subject
current market assessments of the time value of money and the
to the write off. However, financial assets that are written off could
risks specific to the liability. The unwinding of the discount is
still be subject to enforcement activities in order to comply with the
recognised as finance cost. Expected future operating losses are
Group’s procedures for recovery of amounts due.
not provided for.
Impairment of Non-Financial Assets
Where the Group expects some or all of the expenditure required
The Group’s non-financial assets, other than inventories and to settle a provision will be reimbursed by another party, the
deferred tax assets, are reviewed at each reporting date to reimbursement is recognised when, and only when, it is virtually
determine whether there is any indication of impairment. If any certain that reimbursement will be received if the entity settles the
such indication exists, then the asset’s recoverable amount is obligation. The reimbursement is treated as a separate asset.

160 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

ACCOUNTING POLICIES
Contingent liabilities: Ind AS 12 – Income Taxes
Contingent liability is a possible obligation arising from past The amendments clarify how companies account for deferred tax
events and whose existence will be confirmed only by the on transactions such as leases and decommissioning obligations.
occurrence or non-occurrence of one or more uncertain future The amendments narrowed the scope of the recognition
events not wholly within the control of the entity or a present exemption in paragraphs 15 and 24 of Ind AS 12 (recognition
obligation that arises from past events but is not recognised exemption) so that it no longer applies to transactions that, on
because it is not probable that an outflow of resources embodying initial recognition, give rise to equal taxable and deductible
economic benefits will be required to settle the obligation; or the temporary differences. The Group does not expect this
amount of the obligation cannot be measured with sufficient amendment to have any significant impact in its consolidated
reliability. The Group does not recognise a contingent liability but financial statements.
discloses its existence in the consolidated financial statements.
Ind AS 8 – Accounting Policies, Changes in Accounting
Contingent assets: Estimates and Errors
Contingent asset is not recognised in consolidated financial The amendments will help entities to distinguish between
statements since this may result in the recognition of income that accounting policies and accounting estimates. The definition of a
may never be realised. However, when the realisation of income is change in accounting estimates has been replaced with a
virtually certain, then the related asset is not a contingent asset definition of accounting estimates. Under the new definition,
and is recognized. accounting estimates are “monetary amounts in financial
statements that are subject to measurement uncertainty”. Entities
R) ONEROUS CONTRACTS
develop accounting estimates if accounting policies require items
A contract is said to be onerous when the expected economic in financial statements to be measured in a way that involves
benefits to be derived by the group from the contract are lower measurement uncertainty. The Group does not expect this
than the unavoidable cost of meeting its obligations under the amendment to have any significant impact in its consolidated
contract. The provision for onerous contract is measured at the financial statements.
present value of the lower of the expected cost of terminating the
The amendments are extensive and the Group will evaluate the
contract and the expected net cost of continuing with the contract,
same to give effect to them as required by law.
which is determined based on the incremental costs of fulfilling the
obligation under the contract and an allocation of other costs
directly related to fulfilling the contract. Before such a provision is
made, the Group recognises any impairment loss on the assets
associated with the contract.
3A Recent pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standard or
amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. On
March 31, 2023, MCA amended the Companies (Indian
Accounting Standards) Rules, 2015 by issuing the Companies
(Indian Accounting Standards) Amendment Rules, 2023,
applicable from April 1, 2023, as below:
Ind AS 1 – Presentation of Financial Statements
The amendments require companies to disclose their material
accounting policies rather than their significant accounting
policies. Accounting policy information, together with other
information, is material when it can reasonably be expected to
influence decisions of primary users of general purpose
consolidated financial statements. The Group does not expect this
amendment to have any significant impact in its consolidated
financial statements.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 161

162
4. Property Plant and equipment, Intangible assets and Capital Work-in-Progress
NOTES
( ` in Lakhs)

Property, plant and equipment

Leased Freehold Factory Non- Plant and Windmill Electricals Furniture Computers Vehicles Total Capital Intangible
Asset - Land Building factory Equipment and and work-in assets
Particulars (Computer
Land Building Fixture accessories progress software )

Gross carrying amount - - - - - - - - - - - - -

As at 01.04.2021 550 9,800 38,661 19,098 1,11,526 12,845 10,167 3,788 854 1,743 2,09,032 2,862 260

K.P.R. MILL LIMITED

Additions - 5,567 15,886 1,263 58,699 - 445 491 229 305 82,885 21,699 10
Disposals / adjustments - - - - (520) - (1) (60) (4) (54) (639) (2,862) -
As at 31.03.2022 550 15,367 54,547 20,361 1,69,705 12,845 10,611 4,219 1,079 1,994 2,91,278 21,699 270
Additions - 374 11,682 13,765 24,580 - 1,777 1,698 323 496 54,695 8,665 41
Disposals / adjustments - (23) - - (1,473) - (28) (85) (13) (223) (1,845) (21,699) -
As at 31.03.2023 550 15,718 66,229 34,126 1,92,812 12,845 12,360 5,832 1,389 2,267 3,44,128 8,665 311
Accumulated Depreciation and
amortisation
As at 01.04.2021 10 - 6,725 1,678 58,747 9,556 3,539 2,009 639 738 83,641 - 165
Depreciation and amortisation expense 6 - 1,431 345 9,690 1,104 830 348 118 215 14,087 - 25
Disposals / adjustments - - - - (269) - - (42) (3) (20) (334) - -

ANNUAL REPORT 2022-23

As at 31.03.2022 16 - 8,156 2,023 68,168 10,660 4,369 2,315 754 933 97,394 - 190
Depreciation and amortisation expense 6 - 2,163 605 12,596 400 742 395 193 244 17,344 - 25
Disposals / adjustments - - - - (960) - (16) (24) (11) (74) (1,085) - -
As at 31.03.2023 22 - 10,319 2,628 79,804 11,060 5,095 2,686 936 1,103 1,13,653 - 215
Net carrying amount
As at 31.03.2022 534 15,367 46,391 18,338 1,01,537 2,185 6,242 1,904 325 1,061 1,93,884 21,699 80
As at 31.03.2023 528 15,718 55,910 31,498 1,13,008 1,785 7,265 3,146 453 1,164 2,30,475 8,665 96

Notes:
1. Property, plant and equipment include non-factory building given on lease with a gross carrying amount of ` 16,527 Lakhs as at 31.03.2023 (Pr.Yr. ` 18,143 Lakhs)
and a net carrying amount of ` 12,760 Lakhs as at 31.03.2023 (Pr.Yr. ` 16,378 lakhs).
2. Refer note 19 and 22 for assets given as securities for borrowings.
3. As per Ind - AS 20,"Accounting for Government Grants and Disclosure of Government Assistance", the company has opted to present the grant related to assets as
deduction from the carrying value of such specfic assets. For year ended 31.03.2023, such amount deducted from Property, plant and equipment is ` Nil (Pr.Yr. ` 34
Lakhs)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023
 NOTES

4.1 Title deeds of Immovable Properties not held in name of the Parent Company:

(a) Particulars As at 31.03.2023 As at 31.03.2022

(i) Relevant line item in the balance sheet Property, plant and equipment Property, plant and equipment
(ii) Description of item of property Freehold Land Freehold Land
(iii) Gross carrying value (` in Lakhs) 67 67
(iv) Title deeds held in the name of K.P.R. Spinning Mill Private Limited K.P.R. Spinning Mill Private Limited
(v) Whether title deed holder is a promoter, director or relative of
promoter/director or employee of promoter /director No No
(vi) Property held since which date 01.04.2005 01.04.2005
(vii) Reason for not being held in the name of the Company The title deeds are in the name of K.P.R. Spinning The title deeds are in the name of K.P.R. Spinning
Mill Private Limited, erstwhile Company that was Mill Private Limited, erstwhile Company that was
merged with the Company under section 391 to 394 merged with the Company under section 391 to 394
of the Companies Act, 1956 in terms of the approval of the Companies Act, 1956 in terms of the approval
of Honourable High Court(s) of judicature. of Honourable High Court(s) of judicature.

(viii) Whether disputed No No

(b) Particulars As at 31.03.2023 As at 31.03.2022

(i) Relevant line item in the balance sheet Property, plant and equipment Property, Plant and Equipment
(ii) Description of item of property Freehold Land Freehold Land
(iii) Gross carrying value (` in Lakhs) 64 64

K.P.R. MILL LIMITED

(iv) Title deeds held in the name of K.P.R. Mill Private Limited K.P.R. Mill Private Limited
(v) Whether title deed holder is a promoter, director or relative of
promoter/director or employee of promoter /director No No
(vi) Property held since which date 01.04.2005 01.04.2005
(vii) Reason for not being held in the name of the Company The title deeds are in the name of K.P.R. Mill Private The title deeds are in the name of K.P.R. Mill Private
Limited, erstwhile Company that was merged with Limited, erstwhile Company that was merged with
the Company under section 391 to 394 of the the Company under section 391 to 394 of the
Companies Act, 1956 in terms of the approval of Companies Act, 1956 in terms of the approval of
Honourable High Court(s) of judicature. Honourable High Court(s) of judicature.

(viii) Whether disputed No No

ANNUAL REPORT 2022-23 163

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023
164
NOTES
Particulars As at 31.03.2023 As at 31.03.2022

(i) Relevant line item in the balance sheet Property, Plant and Equipment Property, Plant and Equipment
(ii) Description of item of property Freehold Land Freehold Land
(iii) Gross carrying value (` in Lakhs) 10 10
(iv) Title deeds held in the name of K.P.R. Knits K.P.R. Knits
(v) Whether title deed holder is a promoter, director or relative of
promoter/director or employee of promoter /director No No
(vi) Property held since which date 01.04.2005 01.04.2005

K.P.R. MILL LIMITED

(vii) Reason for not being held in the name of the Company The title deeds are in the name of K.P.R. Knits, The title deeds are in the name of K.P.R. Knits,
erstwhile Company that was acquired through erstwhile Company that was acquired through
out-right purchase. out-right purchase.

(viii) Whether disputed No No

4.2 Capital work-in-progress (CWIP) ageing schedule:

As at 31.03.2023 (` in Lakhs)

Amount in CWIP for a period of

ANNUAL REPORT 2022-23

Less than 1 year 1-2 years 2-3 years More Than 3 years Total
Projects in progress 8,665 - - - 8,665
Projects temporarily suspended - - - -

Note: The Company does not have any CWIP which is overdue or has exceeded its cost compared to its original plan and hence CWIP completion schedule is not applicable.

As at 31.03.2022 (` in Lakhs)

Amount in CWIP for a period of

Less than 1 year 1-2 years 2-3 years More Than 3 years Total
Projects in progress 21,699 - - - 21,699
Projects temporarily suspended - - - -

Note: The Company does not have any CWIP which is overdue or has exceeded its cost compared to its original plan and hence CWIP completion schedule is not applicable.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
(` in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022

FINANCIAL ASSETS
5 INVESTMENTS
(See accounting policy in note 3(H))
Investment measured at fair value through profit and loss
Unquoted (all fully paid-up)
Investment in equity shares of other entity
1,50,000 (Pr.Yr. 1,50,000) equity shares of ` 100 each of Somanur Water Scheme Pvt Ltd. 150 150
Aggregate amount of unquoted investments 150 150
Aggregate amount of impairment in value of investments - -
Aggregate amount of quoted investments in market value thereof - -
Information about the Group's fair value measurement is included in note 39.

6 OTHER FINANCIAL ASSETS

(See accounting policy in note 3(H))
Security deposits 3,560 2,470
3,560 2,470
Information about the Group's exposure to credit risk and market risk are disclosed in note 39.
7 DEFERRED TAX ASSET (NET)
MAT credit entitlement - 3,612
Less: Deferred tax liabilities - 2,605
Net deferred tax assets - 1,007
For movement in deferred tax assets (refer note 35)

8 OTHER TAX ASSETS (NET)

Advance tax (net of provision for tax) 584 173
584 173
9 OTHER NON - CURRENT ASSETS
Capital advances 4,805 19,880
Others (Corporate Social Responsibility (CSR) pre-spent)* 3,551 -
Balances with government authorities 9,993 10,167
18,349 30,047
* Refer note 16 and 33.

10 INVENTORIES
(See accounting policy in note 3(A))
Raw materials 78,069 54,812
Work-in-progress* 5,685 4,931
Finished goods 96,333 61,306
Stock-in-trade 1,949 1,302
Stores, spares, packing and others 7,810 6,529
1,89,846 1,28,880

* Includes Cotton ₹ 3,863 Lakhs (Pr. Yr. ₹ 3,605 Lakhs), Fabric ₹ 34 Lakhs (Pr. Yr. ₹30 Lakhs), Sugar ₹ Nil (Pr. Yr. ₹ 233 lakhs)
and Garments ₹ 1,788 Lakhs (Pr. Yr. ₹ 1,063 Lakhs).
The mode of valuation of inventories has been stated in note 3(A).
Refer note 19 and 22 for assets given as security for borrowings.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 165

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
(`in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022

FINANCIAL ASSETS
11 CURRENT INVESTMENTS
(See accounting policy in note 3(H))
Investments in mutual funds (quoted)
Investments measured at fair value through profit and loss
Nippon India Mutual Fund, LIC Mutual fund & IDBI Mutual Fund (also refer note 47) 12,716 30,921
Aggregate amount of quoted investments and market value thereof 12,716 30,921
Aggregate amount of unquoted investments - -
Aggregate amount of impairment in value of investments - -

The Group's exposure to credit risk and price risk related to investments has been disclosed in note 39.

12 TRADE RECEIVABLES
(See accounting policy in note 3(H))
Trade receivables considered good - secured - -
Trade Receivables considered good - unsecured 62,544 48,024
Trade receivables which have significant increase in credit risk - -
Trade receivables - credit impaired 202 23
Total Trade receivables 62,746 48,047
Less: Loss allowance (202) (23)
62,544 48,024
Net trade receivables

Movement of loss allowance in trade receivables

Opening balance 23 43
Allowances made / (reversed) during the year 179 -
Written off - (20)
Closing balance 202 23

Trade receivables ageing schedule:

As at 31.03.2023
(`in Lakhs)
Outstanding for following periods from due date of payment
Particulars Less than 6 months - 1-2 years More Than Total
2-3 years
6 months 1 year 3 years
( i) Undisputed Trade receivables - considered good 62,256 138 11 108 31 62,544
(ii) Undisputed Trade Receivables - which have
- - - - - -
significant increase in credit risk

(iii) Undisputed Trade Receivables - credit impaired - - - - - -

(iv) Disputed Trade Receivables - considered good - - - - - -
(v) Disputed Trade Receivables - which have
- - - - 23 23
significant increase in credit risk
(vi) Disputed Trade Receivables - credit impaired - - - - 179 179

Total Trade receivables 62,256 138 11 108 233 62,746

Less: Loss allowance - - - - - (202)

Net trade receivables 62,256 138 11 108 233 62,544

166 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
As at 31.03.2022 (`in Lakhs)
Outstanding for following periods from due date of payment
Particulars Less than 6 months - 1-2 years More Than Total
2-3 years
6 months 1 year 3 years
( i) Undisputed Trade receivables - considered good 47,660 128 13 223 - 48,024
(ii) Undisputed Trade Receivables - which have
- - - - - -
significant increase in credit risk
(iii) Undisputed Trade Receivables - credit impaired - - - - 23 23
(iv) Disputed Trade Receivables - considered good - - - - - -
(v) Disputed Trade Receivables - which have
- - - - - -
significant increase in credit risk
(vi) Disputed Trade Receivables - credit impaired - - - - - -
Total Trade receivables 47,660 128 13 223 23 48,047
Less: Loss allowance - - - - - (23)
Net trade receivables 47,660 128 13 223 23 48,024

(i) For receivables secured against borrowings, refer note 19 and note 22.
(ii)The Group's exposure to credit risks, currency risks and loss allowances related to trade receivables are disclosed in note 39.
(iii) For terms and conditions relating to related party receivables, refer note 40.
(iv) Also refer note 33. (`in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022
13 CASH AND CASH EQUIVALENTS
(See accounting policy in note 3(B))
Balance with banks
i) In current accounts 3,120 5,289
ii) In EEFC accounts 7,587 6,784
Cash on hand 151 58
10,858 12,131
14 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
(See accounting policy in note 3(B))
Balance with banks held as margin money deposits 407 655
Unclaimed dividend accounts 1 3
408 658
15 OTHER FINANCIAL ASSETS
(See accounting policy in note 3(H))
Interest accrued on bank deposits and other deposits 98 346
Technology upgradation fund subsidy receivable 97 97
Interest subvention receivable 261 -
Term deposit with Non-Banking Financial Companies - 4,000
Others 91 89
547 4,532
Information about the Group's exposure to credit risk and market risk are disclosed in note 39.

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
(`in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022
16 OTHER CURRENT ASSETS
Advances other than capital advances:
Advance to suppliers 9,920 9,528
Balances with government authorities 6,240 4,125
Export incentive receivable 2,159 7,854
Others (CSR pre-spent)* 1,874 -
Others (primarily prepaid expenses) 702 736
20,895 22,243
* Refer note 9 and 38.

17 EQUITY SHARE CAPITAL

a) Authorised
45,00,00,000 (Pr.Yr. 45,00,00,000) equity shares of ` 1 (` 1) each with voting rights. 4,500 4,500
10,00,000 (Pr.Yr.10,00,000) 7% Redeemable Cumulative Non-Convertible 1,000 1,000
Preference shares of ` 100 each.
5,500 5,500
b) Issued, subscribed and fully paid up
34,18,14,000 (Pr.Yr. 34,40,50,000) equity shares of ` 1 ( ` 1) each fully paid-up
with voting rights. 3,418 3,441
3,418 3,441

17.1 Term / rights to shares

Equity shares
The Company has issued only one class of equity shares having a face value of ₹1 per share. The holder of each equity share is entitled to
one vote per share. The Company declares and pays dividends in Indian Rupees.
The Board declared and paid an interim dividend of ₹ 2 (face value of ₹ 1/- each) for the year 2022-23 (Pr.Yr. ₹ Nil) (face value of ₹ 1/-each ).
The Board has recommended a final dividend of 200% (` 2/- per share of the face value of ` 1/- each) for the year 2022-23 (Pr.Yr. ₹ 0.15/- per
share) subject to the approval of the shareholders in Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive residual assets of the Company, after
settling the dues of preferential and other creditors as priority. The distribution will be in proportion to the number of equity shares held by the
shareholders.

17.2 Reconciliation of the Shares outstanding at the beginning and at the end of the year

Equity Shares with voting rights As at 31.03.2023 As at 31.03.2022

Particulars Number of Shares (`in Lakhs) Number of Shares * (`in Lakhs)

At the beginning of the year 34,40,50,000 3,441 34,40,50,000 3,441

Issued during the year - - - -
Less: Buy-back of equity shares (refer note 41) 22,36,000 23 - -
At the end of the year 34,18,14,000 3,418 34,40,50,000 3,441

* Also refer note 17.3 on sub-division of one equity share of ` 5/- each fully paid up into five equity shares of ` 1/- each fully paid up.

17.3 Pursuant to the approval of the shareholders at the Annual General Meeting of the Company held on 09.09.2021, one equity share of
`5/- each fully paid up was sub-divided into five equity shares of ` 1/- each fully paid up, with effect from the record date, i.e., 27.09.2021.

168 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
17.4 Details of Shareholders holding more than 5% of Shares in the Company
Equity Shares
As at 31.03.2023 As at 31.03.2022
Particulars
Number of Shares % of Total Shares Number of Shares * % of Total Shares
Sri K.P.Ramasamy 7,30,30,816 21.37 7,16,21,810 20.82
Sri KPD Sigamani 7,30,31,217 21.37 7,43,56,810 21.61
Sri P.Nataraj 7,30,31,217 21.37 7,43,56,810 21.61
L&T Mutual Fund Trustee Limited - - 1,69,99,064 4.94

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 ownership of shares as at the balance sheet date.
* Also refer note 17.3 on sub-division of one equity share of `5/- each fully paid up into five equity shares of `1/- each fully paid up.

17.5 For the period of five years immediately preceding the date at which the Balance Sheet is prepared:
(i) The Company has not issued any shares without payment being received in cash. Also refer note 17.3.
(ii) The Company has not issued any bonus shares.
(iii) The aggregate number of equity shares bought back by the Company is 3,50,14,920 of `1/- each, fully paid up.(Pr.Yr.3,27,78,920
of `1/- each fully paid up). Also refer note17.3.

17.6 Shareholding of Promoters

As at 31.03.2023 As at 31.03.2022
Promoter Name Number of % of Total % change Number of % of Total % change
Shares Shares during the year Shares* Shares during the year
Equity shares:
Sri K.P.Ramasamy @ 7,30,30,816 21.37 0.55 7,16,21,810 20.82 (0.79)
>

Sri KPD Sigamani 7,30,31,217 21.37 (0.24) 7,43,56,810 21.61 -

>

Sri P.Nataraj 7,30,31,217 21.37 (0.24) 7,43,56,810 21.61 -

* Also refer note 17.3 on sub-division of one equity share of ` 5/- each fully paid up into five equity shares of `1/- each fully paid up.
@ During the previous year, Sri K.P.Ramasamy gifted 27,35,000 shares to his immediate relatives. The total Promoter and Promoter group
holding remains unchanged.
>

During the year, Sri KPD.Sigamani and Sri P.Nataraj gifted 9,06,437 shares each to Sri K.P.Ramasamy. The total Promoter and Promoter
group holding remains unchanged. (`in Lakhs)
S.No Particulars As at 31.03.2023 As at 31.03.2022
18 OTHER EQUITY
Capital reserve
Opening balance 293 293
Closing balance (A) 293 293
Securities premium
Opening balance 19,096 19,096
Changes during the year (15,233) -
Closing balance (B) 3,863 19,096
Balance in securities premium represents amount received on issue of shares in excess of par value. The same may be utilised
in accordance with the provisions of the Companies Act, 2013.
Capital redemption reserve
Opening balance 1,827 1,827
Add: Addition during the year (refer note below) 189 -
Capital redemption on buy-back (refer note 41) 23 -
Closing balance (C) 2,039 1,827
Balance in capital redemption reserve represents an amount equal to the nominal value of share bought back and redemption
of preference share capital. The same may be utilised by the Company for issuing fully paid bonus shares.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 169

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (`in Lakhs)

As at As at
S.No Particulars
31.03.2023 31.03.2022
During the year, K.P.R. Sugar Mill Limited has redeemed 18,91,500 7% Optionally Convertible Non - Cumulative Redeemable
Preference Shares (issued at ₹ 150 with a face value of ₹ 10 per share) at a redemption price of ₹ 275 per share.

General reserve
Opening balance 24,845 24,845
Closing balance (D) 24,845 24,845

The General reserve represents an amount transferred from retained earnings from time to time for appropriation purpose which
can be utilised for meeting future obligations. As the general reserve is created by a transfer from one component of equity to
another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified
subsequently to profit and loss.

Retained earnings
Opening balance 2,69,183 1,85,515
Add: Profit for the year 81,410 84,184
Less:
Final dividend paid (` 0.15 per share) (Pr.Yr. ` 0.15/- per share) 513 516
Interim dividend paid (` 2 per share) (Pr.Yr. Nil) 6,836 -
Premium on buy-back of equity shares 2,745 -
Tax on buy-back of equity shares 4,076 -
Transfer to Capital redemption reserve 212 -
Closing balance (E) 3,36,211 2,69,183
Retained earnings represents profits generated and retained by the Company post distribution of dividends to the equity
shareholders in the respective years. This reserve can be utilized for distribution of dividend by the Company considering the
requirements of the Companies Act, 2013.
Total (A+B+C+D+E) 3,67,251 3,15,244

NON - CURRENT LIABILITIES

FINANCIAL LIABILITIES
19 BORROWINGS
(See accounting policy in note 3(H))
Term loans - measured at amortised cost
Secured
From banks 59,113 70,653
From others 34 38
Less: amount included under current borrowings (refer note 22) (15,070) (8,806)
44,077 61,885
From others (unsecured) - Interest free sales tax loan - NPV 768 722
44,845 62,607

Information about the Group's exposure to interest rate and liquidity risks is included in note 39.

19.1 Term loans from banks are secured by pari-passu first charge on fixed assets and second charge on current assets of the Group.

19.2 i) The Holding Company has availed a term loan from Daimler Financial Services India Pvt Ltd in respect of which balance as at
31.03.2023 was ` 34 lakhs (Pr.Yr. ` 38 lakhs). The loan is repayable in 36 monthly instalments commencing from December
2021. This term loan is secured by Vehicle purchased out of the loan.

ii) K.P.R. Sugar Mill Limited has availed a term loan from Bank of Baroda in respect of which balance as at 31.03.2023 was
` 4,054 lakhs (Pr.Yr. ` 5,528 Lakhs). The loan is repayable in 24 quarterly installments commencing from March 2020. This term
loan is secured by second charge on fixed asset.

170 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022

iii) K.P.R Sugar Mill Limited has availed a term loan from ICICI Bank in respect of which balance as at 31.03.2023 was Nil
(Pr.Yr. ` 2,000 lakhs). The loan is repayable in 10 quarterly instalments commencing from December 2020. This term loan is
secured by second charge on fixed assets.

iv) K.P.R Sugar Mill Limited has availed a term loan from HDFC Bank in respect of which balance as at 31.03.2023 was ` 4,699
Lakhs (Pr.Yr. Nil). The loan is repayable in 16 quarterly instalments commencing from April 2024. This term loan is secured by first
charge on the fixed assets created out the loan.

v) KPR Sugar and Apparels Limited has availed a term loan from ICICI Bank Limited in respect of which balance as at 31.03.2023
was `13,125 Lakhs (Pr.Yr. ` 17,500 Lakhs). The loan is repayable in 16 quarterly installments commencing from April 2022. This
term loan is secured by first charge of hypothecation of all movable assets of Ethanol Division. First pari-passu charge by
equitable mortgage and hypothecation of immovable fixed assets of Ethanol Division.

vi) KPR Sugar and Apparels Limited has availed a term loan from ICICI Bank Limited in respect of which balance as at 31.03.2023
was `4,844 Lakhs (Pr.Yr. ` 13,234 Lakhs). The loan is repayable in 20 quarterly installments commencing from June 2023. This
term loan is secured by first charge of hypothecation of all movable assets of Garment Division. First pari-passu charge by
equitable mortgage and hypothecation of immovable fixed assets of Garment Division.

vii) KPR Sugar and Apparels Limited has availed a term loan from Bank of Baroda Limited in respect of which balance as at
31.03.2023 was `32,391 Lakhs (Pr.Yr. ` 32,391 Lakhs). The loan is repayable in 24 quarterly installments commencing from May
2023. This term loan is secured by first charge of hypothecation of all movable assets of Sugar Division. First pari-passu charge
by equitable mortgage and hypothecation of immovable fixed assets of Sugar Division.

19.3 Interest rate relating to term loans from banks is in the range of 6.23% to 8.50% (Pr.Yr. 6.50% to 8.75%).

19.4 The Group has not defaulted in the repayment of principal and interest during the year.

20 DEFERRED TAX LIABILITIES (net)

(See accounting policy in note 3(O))
Deferred tax liabilities 9,696 4,377
Less: MAT credit entitlement - -
Net deferred tax liabilities 9,696 4,377
For movement in deferred tax liabilities, refer note 35.

21 OTHER NON - CURRENT LIABILITIES

Payables on purchase of Property, plant and equipment 1,932 3,035
Deferred revenue arising from government grants 104 150
Security deposit from dealers - FASO 1 3
2,037 3,188
CURRENT LIABILITIES
FINANCIAL LIABILITIES
22 BORROWINGS
(See accounting policy in note 3(H))
Loans repayable on demand from banks - secured
Working capital loans 12,825 4,959
Packing credit loans 60,647 40,946
Loans repayable on demand from others - secured 1,422 1,212
Current maturities of non-current borrowings (refer note 19) 15,070 8,806
89,964 55,923
Information about the group's exposure to currency, interest rate and liquidity risks is included in note 39.

22.1 i) Loans for working capital and packing credit are secured by pari-passu first charge on the current assets of the Group and pari-
passu second charge on entire block of assets of the Group.
ii) The Group has not defaulted in its repayments of the loans and interest during the year.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 171

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022

iii) Interest rate relating to working capital loans are in the range of 5.65% to 11.35% per annum (Pr.Yr. 5.65% to 10.10%). Interest
rates relating to INR packing credit are in the range of 4.40% to 7.43% per annum (Pr.Yr. 2.40% to 3.80%). Interest rates relating to
short term loans are in the range of 6.85% to 8.85% per annum (Pr.Yr. Nil)

22.2 Reconciliation of cash flows from financing activities

Cash and cash equivalents 10,858 12,131
Non-current borrowings (44,845) (62,607)
Current borrowings (89,964) (55,923)
Net debt* (1,23,951) (1,06,399)

Other assets Liabilities from financing activities

Cash and cash Non-current Current
equivalents borrowings borrowings Total

Net debt as at 01.04.2022 12,131 (62,607) (55,923) (1,06,399)

Net cash flows (1,273) 17,762 (34,041) (17,552)
Net debt as at 31.03.2023 10,858 (44,845) (89,964) (1,23,951)

Net debt as at 01.04.2021 6,795 (17,908) (47,832) (58,945)

Net cash flows 5,336 (44,699) (8,091) (47,454)
Net debt as at 31.03.2022 12,131 (62,607) (55,923) (1,06,399)

* Net debt is calculated as sum of non-current borrowings and current borrowings less cash and cash equivalents.

22.3 Term loans were applied for the purpose they were obtained. Further, short-term loans availed have not been utilised for long-term
purposes by the Group.

22.4 Quarterly returns or statements of current assets filed by the Group for the sanctioned borrowings with banks or financial institutions
are in agreement with the books of accounts.

23 TRADE PAYABLES
(` in Lakhs)
(See accounting policy in note 3(H))
(A) Total outstanding dues of micro enterprises and small enterprises ('MSME'); and 853 1,576
(B) Total outstanding dues of creditors other than micro enterprises and small enterprises 32,752 25,716
33,605 27,292

Trade payables ageing schedule:

As at 31.03.2023 (` in Lakhs)

Outstanding for following periods from the due date of payment

Particulars Total
Less than 1 year 1-2 years 2-3 years More Than 3 years

Undisputed dues
MSME 853 - - - 853
Others 32,752 - - - 32,752
Disputed dues
MSME - - - - -
Others - - - - -
33,605 - - - 33,605

172 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES As at 31.03.2022 (`in Lakhs)

Outstanding for following periods from the due date of payment
Particulars
Less than 1 year 1-2 years 2-3 years More Than 3 years Total

Undisputed dues
MSME 1,576 - - - 1,576
Others 25,716 - - - 25,716
Disputed dues
MSME - - - - -
Others - - - - -
27,292 - - - 27,292
(i) All the trade payables are current and non-interest bearing.
(ii) Refer note 37 for details of dues to Micro and small enterprises.
(iii) The Group's exposure to currency and liquidity risks related to trade payables is disclosed in note 39.
(iv) For terms and conditions relating to related party payables, refer note 40 (`in Lakhs)
As at As at
S.No Particulars
31.03.2023 31.03.2022
24 OTHER FINANCIAL LIABILITIES
(See accounting policy in note 3(H))
Unclaimed dividend 1 3
Others 36 44
37 47
Information about the Group's exposure to currency, interest rate and liquidity risks is included in note 39
25 OTHER CURRENT LIABILITIES
Advance payment from customers 781 1,666
Statutory dues payables 1,739 1,789
6,313 7,088
Employee Benefits payable
8,833 10,543
Note:
(i) Revenue recognised during the year that was included in the contract liability balance at the beginning of the year amounts to
`1,666 lakhs. (Pr.Yr ` 900 lakhs)
(ii) For terms and conditions relating to related party, refer note 40.

26 CURRENT TAX LIABILITIES (net)

(See accounting policy in note 3(O))
Provision for tax (net of advance tax) 77 4,140
77 4,140
27 REVENUE FROM OPERATIONS
(See accounting policy in note 3(E))
Sale of products 5,91,731 4,61,610
Sale of services 4,287 5,868
Other operating revenues 22,570 14,770
Revenue from operations 6,18,588 4,82,248
Disaggregation of revenue from contracts with customers
In the following disclosure, Revenue from contract with customers have been disaggregated based on the nature and type
of goods sold.
27.1 Sale of Products
Garment 2,30,855 1,69,299
Yarn 1,87,436 1,81,859
Fabric 28,176 28,209
Sugar 66,628 39,643
Molasses 2,077 -

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 173

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
Year Ended
S.No Particulars
31.03.2023 31.03.2022
Co-Gen power 9,465 3,537
Ethanol 39,419 21,006
Automobile 10,158 5,552
Cotton waste 17,679 11,408
Accessories and others 2,056 2,176
5,93,949 4,62,689
Less: Discount Allowed 2,218 1,079
5,91,731 4,61,610
27.2 Sale of Services
Processing and fabrication income 3,428 5,370
Automobile service income 859 498
4,287 5,868
27.3 Other Operating Revenues
Export incentives 17,128 10,799
Others (Primarily scrap sales) 5,442 3,971
22,570 14,770
Refer note 40 for sales made to related parties.
28 OTHER INCOME
(See accounting policy in note 3(F))
Interest income on financial assets measured at amortised cost;
- Balance with banks held as margin money deposit 92 252
- Others 125 66
Gain on sale of current investments (net) 1,399 1,477
Investment promotion subsidy 1,101 3,478
Net gain on sale of property, plant and equipment 2,077 301
Recovery of bad debts - 45
Net gain on account of foreign exchange fluctuations 37 -
Rental income (refer note 45) 495 3,005
Miscellaneous income 906 98
6,232 8,722
Refer note 40 for transactions with related parties
29 COST OF MATERIALS CONSUMED
a) Inventory of materials at the beginning of the year
Cotton 44,591 40,441
Dyes and chemicals 557 478
Yarn, fabric and polyester 9,664 7,372
54,812 48,291

b) Add: Purchases
Cotton 2,31,458 1,65,804
Dyes and chemicals 10,346 8,806
Yarn, fabric, polyester and garments 53,695 42,174
Trims, packing and others 24,012 17,947
Sugar cane and coal 93,402 65,855
4,12,913 3,00,586
c) Less : Inventory of materials at the end of the year
Cotton 60,988 44,591
Dyes and chemicals 509 557
Yarn, fabric and polyester 16,572 9,664
78,069 54,812
Cost of materials consumed (a + b - c) 3,89,656 2,94,065

174 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
Year Ended
S.No Particulars
31.03.2023 31.03.2022

30 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK- IN- TRADE

AND WORK-IN-PROGRESS
a) Inventories at the beginning of the year
Finished goods 61,306 33,570
Work-in-progress 4,931 3,450
Stock-in-trade 1,302 911
67,539 37,931
b) Inventories at the end of the year
Finished goods 96,333 61,306
Work-in-progress 5,685 4,931
Stock-in-trade 1,949 1,302
1,03,967 67,539
Net Decrease / (Increase) (36,428) (29,608)

31 EMPLOYEE BENEFITS EXPENSE

(See accounting policy in note 3(J))
Salaries, wages and bonus 43,257 34,942
Contribution to provident and other funds 4,012 3,141
Staff welfare expenses 7,595 6,462
54,864 44,545
Refer note 40 for transactions with related parties.
32 FINANCE COSTS
(See accounting policy in note 3(K))
Interest expense on financial liabilities measured at amortised cost
Borrowings from banks/others:
Term loans 4,136 782
Working capital loans and packing credit loans 2,435 863
Interest on shortfall in payment of income tax 446 241
Interest on interest free sales tax loan 45 45
Other borrowing costs 824 398
7,886 2,329
33 OTHER EXPENSES
Power and fuel 22,398 17,500
Consumption of stores and packing materials 8,771 7,098
Repairs and Maintenance
Building 2,187 1,052
Machinery 10,635 8,933
Others 1,149 851
Insurance 862 712
Legal and professional charges 870 292
Rent (refer note 45) 256 192
Rates and taxes 530 266
Payment to auditor (refer note 34) 33 28
Travelling and conveyance 1,413 922
Expenditure on Corporate Social Responsibility (CSR) (refer note 38) 1,582 1,196
Donations 1,535 43
Net loss on foreign currency transactions - 4
Impairment loss on financial assets (refer note 12 and 39) 182 229
Miscelleneous expenses 1,502 682
Freight and forwarding 4,664 3,345
Sales commission 1,567 3,419
Other selling expenses 861 494
60,997 47,258
Refer note 40 for transactions with related parties.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 175

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES (` in Lakhs)
Year Ended
S.No Particulars
31.03.2023 31.03.2022
34 Payment to auditors (including payment to subsidiaries' auditors)
Statutory audit fees 32 27
Reimbursement of expenses 1 1
Total 33 28

35 Income tax
35.1 Income tax recognised in the statement of profit and loss
Current Tax
Current income tax charge 25,273 29,706
Tax expense relating to prior years (982) (53)
Total (A) 24,291 29,653
Deferred Tax
(Benefits) / charge attributable to origination and reversal of temporary difference 2,715 315
MAT credit entitlement - -
Total (B) 2,715 315
Total (A + B) 27,006 29,968

There are no items of income tax recognised in other comprehensive income.

35.2 Reconciliation with effective tax rate

Effective tax rate Amount

Particulars
2022-23 2021-22 2022-23 2021-22
Profit Before Tax 1,08,416 1,14,152
Tax using the Group's domestic tax rate 26.57% 26.56% 28,801 30,317
Effect of deductions under Chapter VI-A of the Income-tax Act, 1961 -2.89% -1.26% (3,135) (1,439)
Effect of non-deductible expenses and others 2.14% 1.00% 2,322 1,143
25.82% 26.30% 27,988 30,021
Effect of tax expense relating to earlier years -0.91% -0.05% (982) (53)
MAT Credit Entitlement 0.00% 0.00% - -
Income tax recognised in the statement of profit and loss 24.91% 26.25% 27,006 29,968

Note:
The Group recognizes MAT credit availed in earlier years as an asset only to the extent that it is probable that the Group will pay
normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. The Group
reviews the MAT credit entitlement asset at each reporting date and writes down the asset to the extent it is no longer probable
that it will pay normal tax during the specified period.
Pursuant to the amendment in Income-tax Act, 1961 effective 20.09.2019, which provides for an option to domestic companies to
pay income tax at reduced rates, the Company exercised the option permitted under section 115BAA of the Income Tax Act,1961.
35.3 Movement in deferred tax liabilities :
Balance Recognised Utilisation Balance
Recognised Utilisation
Balance
Particulars as at in P&L of MAT in P&L of MAT
as at as at
01.04.2021 during credit during credit
31.03.2022 31.03.2023
2021-22 entitlement 2022-23 entitlement
Property, plant and equipment 4,303 74 - 4,377 2,715 2,604 9,696
Total 4,303 74 - 4,377 2,715 2,604 9,696
35.4 Movement in deferred tax Assets:
Balance Recognised Utilisation Balance
Recognised Utilisation
Balance
Particulars as at in P&L of MAT in P&L of MAT
as at as at
01.04.2021 during credit during credit
31.03.2022 31.03.2023
2021-22 entitlement 2022-23 entitlement
Property, plant and equipment 2,363 242 - 2,605 2,605 - -
MAT credit entitlement (3,731) 119 - (3,612) - 3,612 -
Total (1,368) 361 - (1,007) 2,605 3,612 -

176 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
36 Contingent Liabilities and Commitments (to the extent not provided for)
I. Contingent Liabilities (` in Lakhs)

Particulars 31.03.2023 31.03.2022

(a) Claims against the Group not acknowledged

- as debts
(i) Income tax matters 1,150 1,143
(ii) Goods and service tax matters 460 -
(b) Bank guarantees in favour of parties outstanding
(i) Tamil Nadu Generation and Distribution Corporation [TANGEDCO] 164 164
(ii) Tamil Nadu Pollution Control Board 5 5
(iii) Tata Power Trading Company Limited 100 100
(iv) New Tirupur Area Water Development Corporation Limited 58 58
(v) Indian Oil Corporation Limited 617 218
(vi) Bharat Petroleum Corporation Limited 528 9
(vii) Hindustan Petroleum Corporation Limited 474 140
(viii) Central Government Samarth Scheme 2 2
(c) Letter of credit facility in favour of suppliers
(i) Foreign letter of credit 5,432 6,919
(ii) Inland letter of credit 967 103
(d) Discounted sales invoices 7,948 9,316
(e) Provident fund:
Pursuant to the Supreme Court judgement dated 28.02.2019 on the inclusion of special allowances for contribution to provident fund, the
Group has been legally advised that there are interpretative challenges on the application of the judgement retrospectively. Based on the
legal advice and in the absence of the reliable measurement of the provision for earlier periods, the Group has not recorded a provision
for the prior years.
Notes:
(i) Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various
forums / authorities.
(ii) The Group has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required
and disclosed as contingent liabilities where applicable, in these consolidated financial statements. The Group does not expect the
outcome of these proceedings to have a materially adverse effect on its financial position.
II. Commitments
(` in Lakhs)

Particulars 31.03.2023 31.03.2022

(a) Capital Commitments

(i) Estimated amount of contracts remaining to be executed on capital
account and not provided for. 13,235 13,866

(b) Other Commitments

(i) Export obligations against the import licenses taken for import of capital goods under the
Export Promotion on Capital Goods Scheme and Advance Authorisation scheme for import
of raw material. The duty implication involved is ` 5,184 Lakhs (Pr.Yr. ` 3,533 Lakhs) 31,104 21,200

37 Disclosure with respect to Micro, Small and Medium Enterprises Development Act, 2006
Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprises Development Act, 2006” (“MSMED Act,
2006”) is based on the information available with the Group regarding the status of registration of such vendors under the said Act, as
per the intimation received from them on request made by the Group. There are no overdue principal amounts / interest payable
amounts for delayed payments to such vendors at the Balance sheet date. There are no delays in payment made to such suppliers
during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of
payment made during the year or on balance brought forward from previous year.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 177

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
(` in Lakhs)

S.No Particulars 31.03.2023 31.03.2022

1 The Principal amount remaining unpaid to any supplier at the end of each accounting 853 1,576
year

2 Interest due remaining unpaid to any supplier at the end of each accounting year - -
3 The amount of interest paid by the buyer in terms of section 16 of the MSMED Act, 2006, - -
along with the amount of the payment made to the supplier beyond the appointed day
during each accounting year
4 The amount of interest due and payable for the period of delay in making payment (which - -
has been paid but beyond the appointed day during the year) but without adding the
interest specified under the MSMED Act, 2006
5 The amount of interest accrued and remaining unpaid at the end of each accounting year - -
6 The amount of further interest remaining due and payable even in the succeeding years,
until such date when the interest dues above are actually paid to the small enterprises, for - -
the purpose of disallowance of a deductible expenditure under section 23 of the MSMED
Act, 2006

38 Corporate Social Responsibility Expenditure

The gross amount required to be spent by the Group during the year towards Corporate Social Responsibility (CSR) as per the
provisions of section 135 of the Companies Act, 2013 amounts to ` 1,532 Lakhs (Pr.Yr. ` 1,082 Lakhs). Amount spent during the year
on CSR activities (included in note 33 of the Statement of Profit and Loss) as under:
(` in Lakhs)
For the year Ended
Particulars
31.03.2023 31.03.2022

Promotion of education 1,558 1,081

Donation to Chief Minister's Relief Fund - Covid-19 - 109
Women empowerment - 6
Chess Olympiad sponsorship 5 -
Sanitation and health care 8 -
Rural development 11 -
Total 1,582 1,196
Details of corporate social responsibility expenditure:
(` in Lakhs)
For the year Ended
Particulars
31.03.2023 31.03.2022

(i) shortfall at the end of the year - -

(ii) total of previous years shortfall - -
(iii) reason for shortfall NA NA
(iv) details of related party transactions NA NA
(v) where a provision is made with respect to a liability incurred by entering into a NA NA
contractual obligation, the movements in the provision during the year shall be shown
separately.

178 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
Disclosure under section 135(5) of the Companies Act, 2013 (` in Lakhs)
For the year Ended
Particulars
31.03.2023 31.03.2022

(i) Opening balance (excess) / shortfall - -

(ii) Amount required to be spent during the year 1,532 1,082
(iii) Amount spent during the year (also refer note 9, 16 and 33) (7,007) 1,196
(iv) Closing balance (excess)* / shortfall (5,475) -
* Out of the excess closing balance in the table above, balance of INR 5,425 lakhs represents CSR pre-spent during the year to be adjusted
against the Company's future CSR obligation in accordance with the provisions of Companies Act, 2013.
39 Financial Instruments
Accounting Classification and Fair Values:
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair
value hierarchy
31.03.2023 (` in Lakhs)
Carrying amount Total
Fair value
Particulars Mandatorily at Other financial Other financial carrying
assets -amortised hierarchy
FVTPL - Others liabilities amount
cost
Financial assets measured at fair value
Non-current investments 150 - - 150 Level 2
Current investments 12,716 - - 12,716 Level 1
Financial assets not measured at fair value
Trade receivables # - 62,544 - 62,544 -
Cash and cash equivalents # - 10,858 - 10,858 -
Bank balances other than Cash and cash equivalents # - 408 - 408 -
Other financial assets # - 4,107 - 4,107 -

Financial liabilities not measured at fair value

Borrowings # - - 1,34,809 1,34,809 -
Trade payables # - - 33,605 33,605 -
Other financial liabilities # - - 37 37 -

31.03.2022 (` in Lakhs)
Carrying amount Total
Fair value
Particulars Mandatorily at Other financial Other financial carrying
assets -amortised hierarchy
FVTPL - Others liabilities amount
cost
Financial assets measured at fair value
Non-current investments 150 - - 150 Level 2
Current investments 30,921 - - 30,921 Level 1
Financial assets not measured at fair value
Trade receivables # - 48,024 - 48,024 -
Cash and cash equivalents # - 12,131 - 12,131 -
Bank balances other than Cash and cash equivalents # - 658 - 658 -
Other financial assets # - 7,002 - 7,002 -

Financial liabilities not measured at fair value

Borrowings # - - 1,18,530 1,18,530 -
Trade payables # - - 27,292 27,292 -
Other financial liabilities # - - 47 47 -

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 179

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
# For financial assets and liabilities not measured at fair value, the Group has not disclosed the fair values of financial instruments, since
their carrying amounts are reasonable approximations of their fair values.
Note: There have been no transfers between Level 1, Level 2 and Level 3 during the current and previous year.
Refer note 2E to the consolidated financial statements.

Capital management
The Group manages its capital to ensure that the Group will be able to continue as a going concern while maximising the return to
stakeholders through optimisation of borrowings and equity.

The capital structure of the Group consists of net debt (borrowings as detailed in note 19 and note 22 which is of f set by cash and bank
balances as defined below) and Total Equity of the Group.
The Group is not subject to any externally imposed capital requirements.
The Group's net debt to equity ratio as at 31.03. 2023 was as follows:
(` in Lakhs)

Particulars 31.03.2023 31.03.2022

(i) Debt * 1,34,809 1,18,530

(ii) Less : Cash and Bank Balances * 11,266 12,789
(iii) Net Debt (i - ii) 1,23,543 1,05,741

(iv) Total Equity 3,70,669 3,18,685

(v) Net Debt to Equity Ratio (iii / iv) 33.33% 33.18%

* Debt is defined as non-current borrowings, current borrowings and current maturities of non-current borrowings as described in note 19
and note 22. Cash and Bank balances include cash and cash equivalents and bank balances other than cash and cash equivalents as
described in note 13 and note 14.
Financial Risk Management
The Group has exposure to the following risks arising from financial instruments:
- Market risk (See A below)
- Credit risk (See B below)
- Liquidity risk (See C below)
Risk Management Framework
The Group’s corporate treasury function provides services to the business, co-ordinates access to domestic and International financial
markets, monitors and manages the financial risk relating to the operation of the Group through internal risk reports which analyse
exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk), credit risk and
liquidity risk.
The use of financial derivatives is governed by the Group’s policies approved by the Board of Directors, which provide written principles on
foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivatives financial instruments, and the
investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The
Group does not enter into or trade financial instrument, including derivative financial instruments, for speculative purposes.
The respective Company's Board of Directors oversees how management monitors compliance with the Group’s risk management policies
and procedures, and reviews the adequacy of the risk management policies and procedures, and reviews the adequacy of the risk
management framework in relation to the risks faced by the Company. The respective Company's board of directors are assisted in its
oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the
results of which are reported to the audit committee.

180 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

A. Market Risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices will affect the Group's
income or the value of holding of its financial instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return.
(i) Foreign currency risk
The Group’s sales and purchases activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Group
enters into plain vanilla forward contracts to manage its exposure to foreign currency risk.

Details of hedged and unhedged foreign currency exposures

(a) Outstanding forward exchange contracts for hedging purposes as on 31.03.2023

Currency Cross Currency Amount (` in Lakhs) Buy / Sell

13,620 Sell
USD INR Sell
(1,22,906)
- Buy
USD INR Buy
(5,268)
8,210 Sell
EURO INR Sell
(7,438)
9,334 Sell
GBP INR
(6,705) Sell

Note: Figures in brackets relates to the previous year

(b) The year-end unhedged foreign currency exposures are given below
Foreign currency denominated financial assets and liabilities (including firm commitments, if any) which expose the Group to currency risk
are disclosed below. The amounts shown are those reported translated at the closing rate. Unhedged foreign currency risk exposure at the
end of the reporting period has been expressed in Indian Rupees. (` in Lakhs)

USD Euro GBP JPY CHF Total

As at 31.03.2023
Trade receivables 58,446 3,801 3,121 - - 65,368
Cash and cash equivalents 1,573 2,261 3,477 - - 7,311
Trade payables (5,416) - (5,416)
54,603 6,063 6,597 - - 67,263
(` in Lakhs)
USD Euro GBP JPY CHF Total

As at 31.03.2022
Trade receivables 2,890 1,620 1,807 - - 6,317
Cash and cash equivalents - - - - - -
Trade payables (2,135) - (24) (279) (453) (2,891)
755 1,620 1,783 (279) (453) 3,426

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 181

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
Note: Trade receivables and Trade payables includes firm commitments.
Sensitivity Analysis :
Sensitivity analysis is carried out for un-hedged foreign exchange risk as at 31.03.2023. For every 1% strengthening / weakening of Indian
Rupees against all relevant uncovered foreign currency transactions, profit before tax and equity would be impacted as follows:
Strengthening Weakening
Increase/ (decrease) in profit and
equity Year ended Year ended Year ended Year ended
31.03.2023 31.03.2022 31.03.2023 31.03.2022
USD (546) (8) 546 8
Euro (61) (16) 61 16
GBP (66) (18) 66 18
JPY - 3 - (3)
CHF - 5 - (5)
(673) (34) 673 34

(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 Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s debt obligations with floating
interest rates.

Interest rate exposure (` in Lakhs)

Particulars 31.03.2023 31.03.2022
Non-current borrowings 44,845 62,607
Current borrowings 89,964 55,923
Total 1,34,809 1,18,530

Sensitivity analysis:
Sensitivity analysis is carried out for floating rate borrowings as at 31.03.2023. For every 1% increase in average interest rates, profit before
tax would be impacted by loss of approximately ` 1,348 lakhs (Pr.Yr: ` 1,185 lakhs). Similarly, for every 1% decrease in average interest
rates, there would be an equal and opposite impact on the profit before tax. The calculations are based on a change in the average market
interest rate for each period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All other
variables are held constant.
(iii) Price risk
The Group is mainly exposed to the price risk due to its investment in mutual funds. The price risk arises due to uncertainties about the future
market values of these investments. As at March 31, 2023, the investments in mutual funds amounts to ` 12,716 lakhs (Pr.Yr. ` 30,921
lakhs).
As regards Group's investments in unquoted equity investments, the management contends that such investments do not expose the
Group to price risks. In general, these securities are not held for trading purposes.
Sensitivity analysis:
For every 1% increase in price, profit before tax would be impacted by gain of approximately ` 127 lakhs (Pr.Yr. ` 309 lakhs). Similarly, for
every 1% decrease in price there would be an equal and opposite impact on the profit before tax.
B. Credit risk management
Credit risk is the risk that the counterparty to a financial instrument will not meet its contractual obligations, leading to a financial loss. Credit
risk primarily arises from the Group's trade receivables, investments, cash and cash equivalents, bank balances other than cash and cash
equivalents and other financial assets.
The carrying amounts of financial assets represent the maximum credit risk exposure.

182 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
Trade receivables: (` in Lakhs)

Particulars 31.03.2023 31.03.2022

Trade receivables 62,544 48,024

The Group mitigates credit risk by strict receivable management procedures and policies. The Group has a dedicated independent team to
review credit and monitor collection of receivables. In addition, the Group mitigates credit risk substantially through availment of credit
insurance for both domestic and export buyers.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Group to determine incurred and expected
credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic
indicators affecting customers of the Group have not undergone any substantial change, the Group expects the historical trend of minimal
credit losses to continue. Further, the management believes that unimpaired amounts that are past due by more than 90 days are still
collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss at the reporting
dates related to customers that have defaulted on their payments to the Group are not expected to be able to pay their outstanding dues,
mainly due to economic circumstances.

The concentration of credit risk is limited due to the customer base being large and unrelated. Further, the Group constantly evaluates the
quality of trade receivable and provides impairment loss on financial assets (trade receivables) based on expected credit loss model.
For movement of loss allowance in trade receivables, refer note 12.
Investments :
Investments of surplus funds are made only with approval of Board of Directors. This primarily include investments in equity instruments of
an unlisted entity and mutual funds. The Group does not expect significant credit risks arising from these investments.
Cash and cash equivalents and Bank balances other than Cash and cash equivalents:
The Group held cash and cash equivalents and margin money deposits with credit worthy banks and financial institutions as at the reporting
dates which has been measured on the 12-month expected loss basis. The credit worthiness of the banks and financial institutions are
evaluated by the management on an ongoing basis and is considered to be good with low credit risk.
Other financial assets :
Other financial assets primarily consists of Interest accrued on bank deposits and other deposits and term deposit with Non Banking
Finance companies. The Group does not expect any loss from non-performance by these counter-parties.
C Liquidity risk management
Liquidity risk is the risk that the group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled
by delivering cash or another financial asset. The group’s approach to managing liquidity is to ensure, as far as possible, that it will have
sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses
or risking damage to the group’s reputation.
All current financial liabilities are repayable within one year. The contractual maturities of non current financial liabilities are disclosed in note
19.
40. Related Party Disclosures
Disclosures under "Ind AS" 24 - Related Party Disclosure, as identified and disclosed by the management and relied upon by the Auditors:

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 183

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
40.1 Name of related parties and nature of relationships

Key Management Personnel Sri K.P.Ramasamy

Sri KPD Sigamani
Sri P.Nataraj
Sri C.R.Anandakrishnan
Sri E.K.Sakthivel

Relatives of Key Management Personnel Smt D.Geetha (Daughter of Sri.KPD Sigamani)

Sri T.N.Arun ( Son of Sri P.Nataraj)

Enterprises owned by Key Management Personnel/Directors or M/s K.P.R.Developers Limited

their relatives M/s K P R Cements Private Limited
M/s K P R Holdings Private Limited
M/s K P R Agro Farms Private Limited
M/s KPR Info Solutions Private Limited

40.2 Transactions during the year and the balance outstanding at the balance sheet date
(` in Lakhs)

Enterprises owned
Key Relatives to
by Key Managerial Total as on
Nature of Transaction Managerial Key Managerial
Personnel / Directors 31.03.2023
Personnel Personnel
or their relatives

Transactions during the year

- 4 - 4
Lease Rentals Paid -
- (1) (1)
- 1,758 13 1,771
Remuneration / Salary
- (1,758) (13) (1,771)
Balance outstanding as at the balance sheet date
- 955 - 955
Employee benefits payable -
- (915) (915)

(Previous year figures are shown in brackets)

40.3 Details of transactions with related parties
a. Lease Rent Paid (` in Lakhs)

Name 2022 - 23 2021 - 22

Sri K.P.Ramasamy 1.2 0.19

Sri KPD Sigamani 1.2 0.18

Sri P.Nataraj 1.2 0.18

Total 3.6 0.55

184 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
b. Remuneration / Salary (` in Lakhs)

Name 2022 - 23 2021-22

Sri K.P.Ramasamy 572 572

Sri KPD Sigamani 572 572
Sri P.Nataraj 572 572
Sri C.R.Anandakrishnan 24 24
Sri E.K.Sakthivel 18 18
Smt D.Geetha 6 6
Sri T.N.Arun 7 7
Total 1,771 1,771

Note: Amount attributable to post employment benefits have not been disclosed as the same cannot be identified distinctly in
the actuarial valuation.
Balances outstanding as at the balance sheet date:
c. Employee benefits payable (` in Lakhs)

Name 2022 - 23 2021-22

Sri K.P.Ramasamy 330 315
Sri KPD Sigamani 307 295
Sri P.Nataraj 315 303
Sri C.R.Anandakrishnan 2 2
Sri E.K.Sakthivel 1 -
Smt. D. Geetha 0.40 -
Total 955.40 915

40.4 Transactions eliminated in consolidation procedures (intra-group transactions) and consequently not forming part of
consolidated financial statements
(I) Transactions between the Parent Company and other Group entities:
a. Purchase of Goods (` in Lakhs)

Name 2022 - 23 2021 - 22

M/s K.P.R.Sugar Mill Limited 86 -

M/s KPR Sugar and apparels Limited 14,158 -

M/s Quantum Knits Private Limited - 11

Total 14,244 11
b. Sale of Products (` in Lakhs)

Name 2022 - 23 2021 - 22

M/s K.P.R.Sugar Mill Limited 26,816 20,005

M/s KPR Exports PLC, Ethiopia - -

M/s KPR Mill Pte. Ltd, Singapore - (350)

M/s Quantum Knits Private Limited 5,634 -

M/s KPR Sugar and Apparels Limited 17,946 3

Total 50,396 19,658

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 185

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
c. Sale of property, plant and equipment (` in Lakhs)

Name 2022 - 23 2021-22

M/s Jahnvi Motor Private Limited 3 -

M/s KPR Sugar and Apparels Limited 64 3

Total 67 3

d. Repairs and maintenance (` in Lakhs)

Name 2022 - 23 2021-22

M/s Jahnvi Motor Private Limited 32 -

Total 32 -

e. Processing and fabrication income (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 4,355 -

Total 4,355 -

f. Miscellaneous income (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R.Sugar Mill Limited 53 -

M/s K.P.R.Sugar and Apparels Limited 113 -

M/s Jahnvi Motor Private Limited 3 -

Total 169 -

g. Processing and fabrication expenses (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 847 37

Total 847 37

h. Interest income on financial assets measured at amortised cost (` in Lakhs)

Name 2022 - 23 2021 - 22

M/s KPR Mill Pte. Ltd, Singapore - 6

Total - 6

i. Lease rentals paid

(` in Lakhs)
Name 2022 - 23 2021 - 22

M/s K.P.R.Sugar Mill Limited 3,000 3,000

Total 3,000 3,000

186 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
j. Lease rentals received (` in Lakhs)
Name 2022 - 23 2021-22

M/s K.P.R.Sugar Mill Limited 1 1

M/s Quantum Knits Private Limited 1 1

M/s KPR Sugar and Apparels Limited 22 1

Total 24 3

k. Dividend income (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R.Sugar Mill Limited 2,691 26

M/s Jahnvi Motor Private Limited 193 -

M/s Quantum Knits Private Limited 1,800 -

4,684 26

l. Proceeds from redemption of preference shares (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R.Sugar Mill Limited 5,202 -

Total 5,202 -

m. Non-current investments (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 20,000 38,924

Total 20,000 38,924

n. Other Financial Liabilities (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R. Sugar Mill Limited 69 -

M/s KPR Sugar and Apparels Limited 416 -

M/s Jhanvi Motors Private Limited 2 -

Total 487 -

(II) Transactions between the other Group entities:

In the books of M/s.K.P.R.Sugar Mill Limited
a. Revenue from operations (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 659 825

Total 659 825

b. Purchase of goods (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 30 -

Total 30 -

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 187

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
c. Interest income on financial assets measured at amortised cost (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 294 -

Total 294 -

d. Sale of property, plant and equipment (` in Lakhs)

Name 2022 - 23 2021-22

M/s KPR Sugar and Apparels Limited 23 -

Total 23 -

e. Other expenses (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R. Mill Limited 53 -

Total 53 -

f. Redemption of preference shares (including premium) (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R. Mill Limited 5,202 -

Total 5,202 -

In the books of M/s KPR Sugar and Apparels Limited

g. Revenue from operations (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R.Sugar Mill Limited 30 -

Total 30 -

h. Purchase of goods (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R.Sugar Mill Limited 659 825

Total 659 825

i. Interest paid (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R.Sugar Mill Limited 294 -

Total 294 -

j. Purchase of property, plant and equipment (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R.Sugar Mill Limited 23 -

Total 23 -

188 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
k. Other expenses (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R. Mill Limited 113 -

Total 113 -

In the books of M/s Jahnvi Motor Private Limited

l. Other expenses (` in Lakhs)

Name 2022 - 23 2021-22

M/s K.P.R. Mill Limited 3 -
Total 3 -

(III) Balances outstanding as at the balance sheet date:

In the books of the Holding company
a. Non-current investments (` in Lakhs)
Name 31.03.2023 31.03.2022

Equity shares
M/s K.P.R. Sugar Mill Limited 1,675 1,675
M/s Jahnvi Motor Private Limited 276 276
M/s Quantum Knits Private Limited 10 10
M/s Galaxy Knits Limited 5 5
M/s KPR Exports PLC, Ethiopia - -
M/s KPR Mill Pte. Ltd, Singapore 21 21
M/s KPR Sugar and Apparels Limited 100 100
Deemed equity in Jahnvi Motor Private Limited, K.P.R.Sugar Mill Limited 657 -
and KPR Sugar and Apparels Limited
Preference shares
M/s K.P.R.Sugar Mill Limited 2,837 5,675
M/s KPR Sugar and Apparels Limited 70,000 50,000
Total 75,581 57,762
b. Investment in wholly-owned subsidiary pending allotment (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s KPR Mill Pte. Ltd, Singapore 7 7

Total 7 7

Also refer note below.

c. Loans (` in Lakhs)
Name 31.03.2023 31.03.2022
M/s KPR Mill Pte. Ltd, Singapore 223 204
Total 223 204
Note: Disclosure under Section 186 (4) of the Companies Act, 2013.
The recipients utilise the loan for principal business activities.
Also refer note below.
d. Advance to suppliers (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s Jahnvi Motor Private Limited 1 -
M/s KPR Sugar and Apparels Limited - 1,373
Total 1 1,373

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
e. Trade receivables (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s KPR Sugar and Apparels Limited 4,147 -

M/s Quantum Knits Private limited 3,414 -

Total 7,561 -

f. Interest accrued (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s KPR Mill Pte Limited 24 24

Total 24 24

g. Advance from customers (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s Quantum Knits Private Limited - 2,056

M/s K.P.R.Sugar Mill Limited 6,837 2,598

Total 6,837 4,653

In the books of M/s K.P.R.Sugar Mill Limited

h. Advance to suppliers (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s Quantum Knits Private Limited - 75
Total - 75

i. Trade receivables (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s KPR Sugar and Apparels Limited - 1,006
Total 1,006
-
j. Loan receivable (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s KPR Sugar and Apparels Limited 11,516 -
Total 11,516 -

k. Other assets (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s K.P.R. Mill Limited 69 -
Total 69 -

l. Other liabilities (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s K.P.R. Mill Limited 122 -
Total 122 -

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
In the books of M/s Quantum Knits Private Limited (` in Lakhs)
m. Advance from customers

Name 31.03.2023 31.03.2022

M/s K.P.R.Sugar Mill Limited - 75
Total - 75

In the books of M/s KPR Sugar and Apparels Limited

n. Trade payable
(` in Lakhs)
Name 31.03.2023 31.03.2022

M/s K.P.R.Sugar Mill Limited - 1,006

Total - 1,006

o. Other Liabilities (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s K.P.R.Mill Limited 529 -

Total 529 -

p. Loan payable (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s K.P.R.Sugar Mill Limited 11,516 -

Total 11,516 -

q. Other assets (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s K.P.R. Mill Limited 416 -

Total 416 -

In the books of M/s Jahnvi Motor Private Limited

r. Other assets (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s K.P.R. Mill Limited 2 -

Total 2 -

s. Other Liabilities (` in Lakhs)

Name 31.03.2023 31.03.2022

M/s K.P.R. Mill Limited 5 -

Total 5 -

Note: During the previous year ended 31.03.2022, the Holding company had performed an impairment assessment of investments made
(including investments pending allotment), loans given, and trade receivables due from KPR Exports PLC, Ethiopia, triggered due to
changes in business environment as a result of ongoing civil unrest in Ethiopia and has recognized a provision for impairment towards
carrying value of investments (including investments pending allotment), loans and trade receivables of `1,798 lakhs as at 31.03.2022. For
the purpose of these consolidated financial statements, the aforesaid intra group balances have been eliminated and consequently do not
form part of these consolidated financial statements.

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
40.5 Terms and conditions of transactions with related parties
Transactions with related parties are at arm's length and all the outstanding balances are unsecured.
40.6 Transfer pricing
The Group has transactions with related parties. For the financial year ended 31.03.2022, the Holding company and its subsidiaries have
obtained the Accountant’s report from a Chartered Accountant, where relevant and applicable as required by the relevant provisions of the
Income-tax Act, 1961 and has filed the same with the tax authorities. For the year ended 31.03.2023, the Group maintains documents as
prescribed by the Income-tax Act to prove that these transactions are at arm's length and believes that the aforesaid legislation will not have
any impact on the financial statementularlys, partic on the amount of tax expense and that of provision for taxation.
41 Earnings Per Share (EPS)

Particulars 2022-23 2021-22

Profit for the year attributable to the equity shareholders (` in Lakhs) 81,410 84,184
Weighted average number of equity shares (Refer Note a) 34,19,73,277 34,40,50,000
Face Value Per Share (`) 1 1
Earnings Per Share - Basic and Diluted (`) 23.81 24.47

Notes:
a. The calculation of weighted average number of equity shares for the purpose of basic and diluted earnings per share is as follows:

Particulars 2022-23 2021-22

Opening balance 34,40,50,000 34,40,50,000

Effect of Shares bought back during the year (20,76,723) -

Weighted average number of equity shares 34,19,73,277 34,40,50,000

After obtaining the approval from the Board of Directors on February 07, 2022, the buy-back of 22,36,000 equity shares of ` 1/- each
(representing 0.65% of the total number of paid up equity shares of the Company) from the shareholders of the Company on proportionate
basis by way of tender offer route at a price of ` 805/- per share for an aggregate amount of ` 17,999.80 lakhs (9.53% of the paid up capital
and free reserves) was initiated in accordance with the provisions of the Companies Act, 2013 and the Securities and Exchange Board of
India (Buy-Back of Securities) Regulations, 2018 (‘SEBI Buy-back Regulations’). The extinguishment of equity shares was completed on
April 26, 2022.
b. The Company does not have any potential equity shares. Accordingly basic and diluted earnings per share would remain the same.
42 Goodwill on Consolidation
(` in Lakhs)

Particulars 2022-23 2021-22

Opening Balance 70 70

Add: On acquisition of subsidiaries during the year - -

Total 70 70

Less: On disposal of subsidiaries during the year - -

Less: Impairment - -

Closing Balance 70 70

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
43 Operating segments
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the Group's other components, and for which discrete financial
information is available. All operating segments’ operating results are reviewed regularly by the respective Company's Board of Directors to
make decisions about resources to be allocated to the segments and assess their performance. The Board of Directors is considered to be
the Chief Operating Decision Maker ('CODM') within the purview of Ind AS 108 - Operating Segments.
The Group has classified its operations primarily into three reportable segments viz., Textile, Sugar and Others based on 'Management
Approach' as defined in Ind-AS 108. These segments offer different products and services, and are managed separately because they
require different technology and marketing strategies. For each of the reportable segments, the respective Company's Board of Directors
reviews internal management reports on atleast a quarterly basis.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit (before
tax), as included in the internal management reports that are reviewed by the respective Company's Board of Directors. Segment profit is
used to measure performance as management believes that such information is the most relevant in evaluating the results of certain
segments relative to other entities that operate within these industries.

43.1 (` in Lakhs)
For the year ended 31.03.2023
Particulars
Textile Sugar Others Total

External revenue 4,89,319 1,17,950 11,319 6,18,588

(4,11,323) (64,515) (6,410) (4,82,248)
Inter-segment revenue - - - -
- - - -
Total 4,89,319 1,17,950 11,319 6,18,588
(4,11,323) (64,515) (6,410) (4,82,248)
Segment results before other income, finance costs and tax 90,204 19,353 513 1,10,070
(97,765) (9,657) (337) (1,07,759)
Unallocable expenses (net) -
-
Operating income 1,10,070
(1,07,759)
Less: Finance costs 7,886
(2,329)
Add: Other income (net) 6,232
(8,722)
Profit before tax 1,08,416
(1,14,152)
Less: Tax expense 27,006
(29,968)
Profit for the year 81,410
(84,184)

Note: Figures in bracket relates to previous year

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
43.2 ( ` in Lakhs)

For the year ended 31.03.2023

Particulars
Textile Sugar Others Total

Segment Assets 3,73,779 1,81,982 3,810 5,59,571

(3,24,593) (1,57,557) (3,422) (4,85,572)

Unallocable Assets 192

(1,230)

Total Assets 5,59,763

(4,86,802)
97,248 89,801 2,045 1,89,094
Segment Liabilities
(80,847) (83,050) (1,754) (1,65,651)
-
Unallocable Liabilities
(2,466)
1,89,094
Total Liabilities
(1,68,117)
3,70,669
Capital Employed
(3,18,685)
(Segment asset - Segment Liabilities)
Other information 46,431 8,278 27 54,736
Capital expenditure (12,570) (70,711) (149) (83,430)
9,397 7,890 82 17,369
Depreciation and amortisation (9,096) (4,943) (73) (14,112)

Note: Figures in bracket relate to the previous year

44 Geographical information on revenue and assets:

The geographic information analyses the Group's revenues and non-current assets by the Company's country of domicile and overseas. In
presenting the geographical information, segment revenue has been determined based on the geographical location of the customers and
non - current assets has been determined based on the geographical location of the assets.
Revenue from sale of products and services by geographic location of customers ( ` in Lakhs)

Particulars 2022-23 2021-22

India 3,69,601 2,95,811

Overseas 2,26,417 1,71,667

Total 5,96,018 4,67,478

Non-current assets* by geographic location of assets ( ` in Lakhs)

Particulars 2022-23 2021-22

India 2,61,799 2,38,256

Overseas - -

Total 2,61,799 2,38,256

*Non-current assets exclude financial instruments and deferred tax assets.

No single customer contributed 10% or more to the Group’s revenue for both the financial years 2022-23 and 2021-22.

194 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
45 Operating Lease Disclosure
45.1 As Lessee:
The Group has taken factory premises, office spaces, plant and equipment and vehicles on cancellable operating leases. The leases are for
varied periods which are classified as short-term leases under Ind AS 116. The Group has incurred ` 256 lakhs (Pr.Yr ` 192 lakhs) for the
year ended 31.03.2023 towards expenses relating to short-term leases. The total cash outflow for leases is ` 256 lakhs (Pr.Yr ` 192 lakhs)
for the year ended 31.03.2023, including cash outflow of short-term leases. Also refer note 33.
( ` in Lakhs)
Particulars 31.03.2023 31.03.2022

Minimum lease payments not later than one year 169 101

Later than one year but not later than five years 25 80

More than five years - -

45.2 As Lessor:
The Group has given certain non-factory building on cancellable operating leases and has earned rental income of ` 1,311 lakhs
(Pr.Yr:` 3,005 lakhs) for the year ended 31.03.2023. Since the aforesaid leases are short-term in nature, there are no lease payments
receivable after one year as at 31.03.2023. The expected amount of minimum lease payments to be received within one year is ` 1,311 lakhs
(Pr.Yr: ` 3,005 lakhs). Also refer note 28.
46 Disclosure of Employee Benefits
46.1 Defined Contribution Plans ( ` in Lakhs)

Particulars 31.03.2023 31.03.2022

Provident Fund 3,792 2,994

Employee State Insurance 945 802

46.2 Defined Benefit Plan - Gratuity

The Group provides for gratuity, a defined benefit retirement plan (‘the Gratuity Plan’) covering eligible employees. The Gratuity Plan
provides a lump-sum payment to vested employees at retirement, death or termination of employment, of an amount based on the
respective employee’s salary and the tenure of employment with the Group. The Group's obligation towards Gratuity is a defined benefit
plan and the details of actuarial valuation as at the year-end are given below:
Reconciliation of the net defined benefit (asset)/ liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined (asset) / liability and its
components.
( ` in Lakhs)

A Changes in present value of defined benefit obligation

PV of obligation as at the beginning of the year 1,114 1,029
Current service cost 213 174
Interest cost 77 59
Benefits paid (192) (148)
Balance at the end of the year 1,212 1,114

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
( ` in Lakhs)

B Reconciliation of fair value of plan assets:

Balance at the beginning of the year 1,114 1,027
Interest income 68 63
Actuarial (gains) / losses on plan assets - -
Benefits paid - -
Contributions paid into the plan 27 24
Fair value of plan asset as at end of the year 1,209 1,114

Plan assets comprises of :

% of Investment with insurer 100 100

C Net Asset/(Liability) recognized in the balance sheet

Present value of obligation as at end of the year 1,114 1,114
Fair value of plan asset as at end of the year 1,114 1,114
Funded status [surplus/(deficit)] - -

D Expense recognized in the consolidated statement of profit and loss

Current service cost 213 174
Interest cost 77 59
Expected return on plan assets (68) (63)
Actuarial (gains) / losses on obligations and plan assets - -
222 170
E Remeasurement recognised in other comprehensive income
Actuarial (gains) / losses on defined benefit obligation - -
Actuarial (gains) / losses on plan assets - -

F Actuarial assumptions
Discount rate (per annum) 7.52% 7.00%
Rate of increase in compensation levels (per annum) 7.50% 7.00%
Rate of return on plan assets (per annum) 7.52% 7.21%
Attrition rate (per annum) 4.00% 4.00%
Expected average remaining working lives of employees (years) 26.66 27.09
Demographic assumptions - based on Indian Assured Lives Mortality (2012-14)
The estimate of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotions
and other relevant factors including supply and demand in the employment market.

46.3 Disclosure of Employee Benefits

Asset-liability matching strategies
The Group has funded the liability with the insurance company. The entire investible assets are managed by the fund managers
of the insurance company and the asset values as informed by the insurance company has been taken for valuation purpose.
The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter
compared to the duration of liabilities. Thus, the Group is exposed to movement in interest rates (in particular, the significant fall
in interest rates, which should result in a increase in liability without a corresponding increase in the asset).

196 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
Expected contributions to the plan for the next annual reporting period

The expected benefits are based on the same assumptions as are used to measure Company’s defined benefit plan obligations as at
31.03.2023. The Company is expected to contribute ` 232 lakhs (Pr.Yr: ` 107 Lakhs) to defined benefit plan obligations funds for the year
ending 31.03.2023.
( ` in Lakhs)

Particulars 31.03.2023 31.03.2022

16.61 years 17.50 years
Weighted average duration of the defined benefit obligation

Disclosure related to indication of effect of the defined benefit plan on the

entity's undiscounted future cash flows

Payout in the next

1 year 43 35
1-2 years 47 37
2-3 years 49 36
3-4 years 50 39
4-5 years 57 43
5 years and beyond 3,543 3,032

Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation by the amounts shown below:

31.03.2023 31.03.2022
Increase Decrease Increase Decrease
Discount rate (1% movement) (132) 159 (118) 144
Salary growth (1% movement) 154 (129) 139 (116)
Attrition rate (1% movement) (11) 12 (13) 15

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an
approximation of the sensitivity of the assumptions shown.

47 Details of current investments in mutual funds (quoted) ( ` in Lakhs)

31.03.2023 31.03.2022
Particulars
Units Amount Units Amount

Nippon India Mutual Fund 1,09,223 6,015 2,58,268 13,449

LIC Mutual Fund 1,65,910 6,701 2,44,837 9,368

IDBI Mutual Fund - - 3,56,579 8,104

Total 2,75,133 12,716 8,59,683 30,921

Also refer note 11.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 197

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
48 Statement pursuant to first proviso to sub-section (3) of section 129 of the Companies Act 2013, containing salient
features of financial statements of subsidiary companies
2022-23 ( ` in Lakhs)

Quantum Knits K.P.R.Sugar Galaxy Jahnvi Motor KPR Sugar KPR KPR Mill
Particulars Private Mill Limited Knits Private and Apparels Exports Pte.
Limited Limited Limited Limited PLC Ltd

Country of incorporation India India India India India Ethiopia Singapore

Reporting currency INR INR INR INR INR BIRR SGD
Exchange rate 1 1 1 1 1 1.48 61.83
Share Capital * 10 394 5 193 7,100 424 21
Other equity (236) 68,117 (2) 1,567 71,150 (275) (231)
Total Assets 3,194 1,00,501 4 3,810 1,66,787 149 59
Total Liabilities 3,420 31,990 1 2,050 88,537 - 269
Revenue from operations 2920 95,110 - 11,351 1,05,791 - -
Profit / (Loss) Before Tax (454) 22,697 - 443 10,328 - (42)
Tax expense / (credit) - 6,531 - 120 1,384 - -
Profit / (loss) after tax (454) 16,166 - 323 8,944 - (42)
Dividend - Interim 1,500 2,665 - - - - -
- Proposed - - - - - - -
% of Share Holding 100 100 100 100 100 100 100

* Includes share application money pending allotment of ` 1,170 lakhs relating to KPR Exports PLC and ` 7 lakhs relating to KPR Mill Pte. Limited

2021-22
( ` in Lakhs)
Quantum Knits K.P.R.Sugar Galaxy Jahnvi Motor KPR Sugar KPR KPR Mill
Particulars Private Mill Limited Knits Private and Apparels Exports Pte.
Limited Limited Limited Limited PLC Ltd

Country of incorporation India India India India India Ethiopia Singapore

Reporting currency INR INR INR INR INR BIRR SGD
Exchange rate 1 1 1 1 1 1.48 55.78
Share capital * 10 583 5 193 5,100 424 21
Other equity 2,018 59,653 (1) 1,437 44,206 (275) (189)
Total assets 2,110 81,553 4 3,422 1,28,634 149 51
Total liabilities 82 21,317 - 1,792 79,328 - 219
Revenue from operations 10 88,652 - 6,411 195 41 132
Profit / (Loss) before tax (1) 16,026 - 258 (794) (829) (41)
Tax expense / (credit) (3) 5,029 - 73 - - -
Profit / (loss) after tax 2 10,997 - 185 (794) (829) (41)
Dividend - Interim
- Proposed - - - - - - -
% of Shareholding 100 100 100 100 100 100 100

* Includes share application money pending allotment of ` 1,170 lakhs relating to KPR Exports PLC and ` 7 lakhs relating to
KPR Mill Pte. Limited

198 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
49 Additional information as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as subsidiaries
2022-23
( ` in Lakhs)
Net Assets, i.e., Total Share in other Share in total other
Assets minus Share of Profit or Loss comprehensive income comprehensive income
Total Liabilities
Particulars
As % of As % of As % of As % of
consolidated Amount consolidated Amount consolidated Amount consolidated Amount
Net Assets profit or loss OCI total OCI

Parent
K.P.R.Mill Limited 66.73% 2,97,296 71.80% 63,504 - - 71.80% 63,504

Subsidiaries - Indian
1. M/s Quantum Knits Private Limited (0.05%) (226) (0.51%) (454) - - (0.51%) (454)
2. M/s K.P.R.Sugar Mill Limited 15.38% 68,511 18.28% 16,166 - - 18.28% 16,166
3. M/s Jahnvi Motor Private Limited 0.40% 1,760 0.37% 323 - - 0.37% 323
4. M/s Galaxy Knits Limited 0.00% 4 - - - - 0.00% -
5. KPR Sugar and Apparels Limited 17.56% 78,250 10.11% 8,944 - - 10.11% 8,944

Subsidiaries - Foreign
M/s KPR Exports Plc, Ethiopia 0.03% 149 0.00% - - - 0.00% -
M/s KPR Mill Pte Limited, Singapore (0.05%) (210) (0.05%) (42) - - (0.05%) (42)
Less : Eliminations (74,865) (7,031) (7,031)
100% 3,70,669 100% 81,410 - - 100% 81,410

2021-22 ( ` in Lakhs)
Net Assets, i.e., Total Share in other Share in total other
Assets minus Share of Profit or Loss comprehensive income comprehensive income
Total Liabilities
Particulars As % of As % of As % of As % of
consolidated Amount consolidated Amount consolidated Amount consolidated Amount
Net Assets profit or loss OCI total OCI

Parent
K.P.R.Mill Limited 69.93% 2,63,218 88.47% 73,080 - - 88.47% 73,080

Subsidiaries - Indian
1. M/s Quantum Knits Private Limited 0.54% 2,028 0.00% 2 - - 0.00% 2
2. M/s K.P.R.Sugar Mill Limited 16.00% 60,236 13.31% 10,997 - - 13.31% 10,997
3. M/s Jahnvi Motor Private Limited 0.43% 1,630 0.22% 185 - - 0.22% 185
4. M/s Galaxy Knits Limited 0.00% 4 0.00% - - - 0.00% -
5. KPR Sugar and Apparels Limited 13.10% 49,306 (0.96%) (794) - - (0.96%) (794)

Subsidiaries - Foreign
M/s KPR Exports Plc, Ethiopia 0.04% 149 (1.00%) (829) - - (1.00%) (829)
M/s KPR Mill Pte Limited, Singapore (0.04%) (168) (0.05%) (41) - - (0.05%) (41)
Less : Eliminations (57,718) 1,584 1,584
100% 3,18,685 100% 84,184 - - 100% 84,184

50 Events after reporting period :

The Board of Directors have recommended a final dividend of 200% (` 2 per share of the face value of ` 1/- each) for the year 2022-23
subject to the approval of the shareholders in Annual General Meeting.

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 199

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
51 Other statutory information
a) The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any
Benami property.
b) The Group did not have transactions with outstanding balances with companies struck off.
c) The Group has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current
or previous year.
d) The Group has not traded or invested in Crypto currency or virtual currency during the financial year.
e) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds)
by the Group to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall:
- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on
behalf of the Group or
- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f) No funds have been received by the Group from any persons or entities, including foreign entities (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise, that the Group shall
- directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on
behalf of the Funding Party or
- provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
g) The Group 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).
h) The Group has not have been declared as wilful defaulters by any bank or financial institution or government or any government authority.
i) The Group has complied with the number of layers prescribed under the Companies Act, 2013.
j) The Group has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
k) The Group does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory
period.

52 Ratios as per the Schedule III requirements :

a) Current ratio = Total current assets divided by Total current liabilities

Particulars 31.03.2023 31.03.2022

Total current assets - ` in Lakhs 2,97,814 2,47,389

Total current liabilities - ` in Lakhs 1,32,516 97,945

Ratio 2.25 2.53

% Change from previous year -11.02%

b) Debt Equity Ratio = Total debt divided by Total equity wherein total debt refers to sum of current and non-current
borrowings

Particulars 31.03.2023 31.03.2022

Total Debt - ` in Lakhs 1,34,809 1,18,521

Total Equity - ` in Lakhs 3,70,699 3,18,685

Ratio 0.36 0.37

% Change from previous year -2.22%

200 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
c) Debt Service Coverage Ratio = Earnings available for debt service divided by the Total interest and principal repayments

Particulars 31.03.2023 31.03.2022

Profit after tax - ` in Lakhs 81,410 84,184

Add: Non - cash operating expenses and finance cost
- Depreciation and amortization expenses - ` in Lakhs 17,369 14,112
- Finance costs - ` in Lakhs 7,886 2,329
Earnings available for debt service - ` in Lakhs 1,06,665 1,00,625
- Finance costs relating to term loans - ` in Lakhs 4,136 782
- Principal repayments relating to term loans - ` in Lakhs 17,455 4,933
Total interest and principal repayments relating to term loans - ` in Lakhs 21,591 5,715
Ratio 4.94 17.61
% Change from previous year -71.94%

Reason for change more than 25%: The ratio has decreased from 17.61 for the year ended 31.03.2022 to 4.94 for the year ended
31.03.2023 on account of increase in Term loan interest expenses and increase in repayment of term loans.

d) Return on Equity Ratio = Profit after tax divided by Average total equity

Particulars 31.03.2023 31.03.2022

Profit after tax - `in Lakhs 81,410 84,184

Average total equity (Refer note below) - `in Lakhs 3,44,677 2,76,851

Ratio 24% 30%

% Change from previous year -22.32%

Note: Average total equity = (Total equity as at the beginning of respective year + Total equity as at the end of respective year) divided by 2
e) Inventory turnover ratio = Sales divided by Average inventory

Particulars 31.03.2023 31.03.2022

Sales (refer note 1 below) - `in Lakhs 6,18,588 4,82,248

Average inventory (refer note 2 below) - `in Lakhs 1,59,363 1,10,103

Ratio 3.88 4.38

% Change from previous year -11.38%

Note 1: Sales represents revenue from operations.

Note 2: Average inventory = (Total inventories as at the beginning of respective year + Total inventories as at the end of respective year)
divided by 2
f) Trade receivables turnover ratio = Sales divided by Average trade receivables

Particulars 31.03.2023 31.03.2022

Sales - `in Lakhs (Refer note 1 below) 6,01,460 4,71,449

Average trade receivables - `in Lakhs (Refer note 2 below) 55,284 40,061

Ratio 10.88 11.77

% Change from previous year -7.55%

Note 1: Sales for the purpose of the table above represents revenue from operations excluding export incentives.
Note 2: Average trade receivables = (Total trade receivables as at the beginning of respective year + Total trade receivables as at the end of
respective year) divided by 2

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 201

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
g) Trade payables turnover ratio = Purchases divided by Average trade payables

Particulars 31.03.2023 31.03.2022

Purchases (refer note 1 below) - `in Lakhs 4,12,913 3,00,586

Average trade payables (refer note 2 below)- `in Lakhs 30,449 19,083

Ratio 13.56 15.75

% Change from previous year -13.91%

Note 1: Purchases represents purchases forming part of cost of materials consumed.

Note 2: Average trade payables = (Total trade payables as at the beginning of respective year + Total trade payables as at the end of
respective year) divided by 2.

h) Net capital turnover ratio = Revenue from operations divided by Working capital wherein Working capital = Total current assets
less Total current liabilities

Particulars 31.03.2023 31.03.2022

Revenue from operations - `in Lakhs 6,18,588 4,82,248

Working capital - `in Lakhs 1,65,298 1,49,444

Ratio 3.74 3.23

% Change from previous year 15.97%

i) Net profit ratio = Net profit after tax divided by Revenue from operations

Particulars 31.03.2023 31.03.2022

Net profit after tax - `in Lakhs 81,410 84,184

Revenue from operations - `in Lakhs 6,18,588 4,82,248

Ratio 13% 17%

% Change from previous year -24.61%

j) Return on capital employed= Earnings before interest and taxes (EBIT) divided by Capital employed

Particulars 31.03.2023 31.03.2022

Earnings before interest and taxes (refer note 1 below) - `in Lakhs 1,16,302 1,16,481

Capital employed (refer note 2 below) - `in Lakhs 5,15,174 4,41,592

Ratio 23% 26%

% Change from previous year -14.41%

Note 1: EBIT= Profit before taxes + Finance costs

Note 2: Capital employed = Total equity + Total debt (current borrowings and non-current borrowings) + Deferred tax liabilities

202 K.P.R. MILL LIMITED ANNUAL REPORT 2022-23

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2023

NOTES
k) Return on investment ('ROI')
(i) ROI on mutual fund = Income generated from invested funds divided by average invested funds in mutual funds

Particulars 31.03.2023 31.03.2022

Income generated from invested funds - ` in Lakhs 1,399 1,477

Invested funds in mutual funds (refer note below) - ` in Lakhs 21,819 27,133

Ratio 6% 5%

% Change from previous year 17.79%

Note: Invested funds in mutual funds = (Investment in mutual fund as at the beginning of respective year + Investment in mutual fund as at
the end of respective year) divided by 2

(ii) ROI on treasury funds = Income generated from invested funds divided by average invested funds in treasury funds

Particulars 31.03.2023 31.03.2022

Income generated from treasury funds - ` in Lakhs 92 252

Invested funds in treasury funds (refer note below) - ` in Lakhs 2,531 4,791

Ratio 4% 5%

% Change from previous year -30.90%

Note: Invested funds in treasury funds = (Investment in margin money deposit, term deposit with Non-Banking Financial Companies and in
deposits with original maturity of less than three months as at the beginning of respective year + Investment in margin money deposit, term
deposit with Non-Banking Financial Companies and in deposits with original maturity of less than three months as at the end of respective
year) divided by 2.
Reason for change more than 25%: Decrease in ROI on treasury funds from 5% for the year ended 31.03.2022 to 4% for the year ended
31.03.2023 is on account of decrease in average invested funds in treasury funds.
The notes from 1 to 52 are an integral part of these consolidated financial statements.

For and on behalf of the Board of Directors of As per our report of even date attached
For B S R & CO. LLP
K.P.R. Mill Limited
Chartered Accountants
CIN : L17111TZ2003PLC010518 Firm's Registration Number : 101248W/W-100022

K.P.Ramasamy K Sudhakar
Chairman Partner
DIN : 00003736 Membership No. : 214150

KPD Sigamani P.Nataraj

Managing Director Chief Executive Officer and Managing Director
DIN : 00003744 DIN : 00229137

PL Murugappan P.Kandaswamy
Chief Financial Officer Company Secretary

Coimbatore Coimbatore
03.05.2023 03.05.2023

K.P.R. MILL LIMITED ANNUAL REPORT 2022-23 203

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60.06%

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2.78%

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 Corporate Office:
K.P.R. MILL LIMITED
1st Floor, Srivari Shrimat, 1045, Avinashi Road,
Coimbatore - 641 018
Phone: +91 422 220 7777 | Fax : +91 422 220 7778
CIN : L17111TZ2003PLC010518
Email: [email protected]