The Company has received the demand towards additional Electricity tax from TNEB against which the Company has gone on appeal to the Honourable High Court of Madras. The Company has not paid this amount due to dispute. No provision has been made in the accounts, pending disposal of appeal by the Honourable High Court of Madras.

In respect of the current year, the directors propose that a dividend of Rs.2.20 per share (same as last year) be paid on equity shares payable to all shareholders on the Register of Members on 21^st August 2026. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. Dividend income is taxable in the hands of the shareholders and the company is required to deduct Tax at source.

27.23 Capital management:

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Company finances its operations by a combination of retained profit and bank borrowings. The Company monitors the capital structure on the basis of total debt to equity and maturity profile of the overall debt portfolio of the Company.

27.26 Segment Reporting

The Company is engaged mainly in the manufacture of yarn. The Company owns fifteen wind mills which were installed mainly for captive utilization of power generated with power cost of yarn production. The following is the power generated from these wind mills which is adjusted with the power cost of the yarn division and processing division.

Only small portion of excess power was sold to outsiders during the year. No internal billing is done for power adjusted for captive use. The expenses related to wind mills are not treated separately and they are part of cost of yarn production.

The processing division is operating mainly for captive utilization of yarn division.

The above facts are reviewed regularly by the entity's chief operating decision maker and he has decided that the company has only one reportable segment that is yarn manufacturing during the year.

Disclosure in respect of Related Party Transactions during the year

1. Purchase of goods/assets includes Amarjothi power Generation and Distribution Company Limited ' 0 ; (Previous year ' 1.35 Lakhs) N. Rajan, Green Energy ' 0 ; (Previous year ' 19.24 Lakhs)

2 Sale of Goods/assets includes RPJ Textiles Limited ' 3187.04 Lakhs; (Previous year ' 1328.45 Lakhs).

Texknit ' 1318.30 Lakhs (Previous year ' 1320.24Lakhs). Arasan Textiles ' 436.35 Lakh (previous year 0)

3. Interest paid includes Sri. R. Premchander ' 18.29 Lakhs (Previous year ' 134.24 Lakhs). Sri. R. Jaichander ' 571.42 Lakhs (Previous year ' 495.79 Lakhs) Sri. R. Jaichander HUF ' 150.67 Lakhs ( Previous Year - ' 88.77 Lakhs).

4. Remuneration to Key Managerial Personnel includes Sri. R. Premchander ' 81.85 Lakhs (Previous year ' 89.01 Lakhs).Sri.R.Jaichander ' 81.85 Lakhs (Previous year ' 89.01 Lakhs). Sri. K. Elango ' 10.43 Lakhs (Previous year ' 9.9 Lakhs). Smt. M. Mohana Priya ' 8.82 Lakhs (Previous year ' 6.97Lakhs).

5. Outstanding receivable from Related parties includes) Texknit ' 2.20 Lakhs (Previous year ' 409.90 Lakhs) Arasan Textiles ' 431.15Lakhs; (Previous year 'Nil) RPJ Textiles ' 2139.63 lakhs ; (Previous year ' Nil Lakhs)

6 Outstanding payables to Related parties includes Sri.R.Premchander ^ 75.65 Lakhs; (Previous year ' 256.13 Lakhs). Sri. R. Jaichander ' 3636.39 Lakhs; (Previous year ' 3475.36 Lakhs). Sri. R. Jaichander - HUF ' 1827.11 Lakhs (previous Year - ' 600.98 Lakhs )

27.32. 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 willful 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.

l) The Company has borrowings from banks on the basis of security of current assets and the quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.