C investment property comprises of the following:

The Company’s commercial complex named Aspinwall House at Kawdiar, Thiruvananthapuram, is partly used for own purpose and partly used for earning rentals.

During the previous year, one building floor has been transferred from property, plant and equipment (refer note 3A) to investment property, since the building floor was no longer used by the Company and as such it was decided that the building floor would be leased to a third party.

D Measurement of fair value

(i) Fair valuation hierarchy

The fair value of investment property has been determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. These valuers are registered valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair value measurement of the investment property has been categorised as Level 3 fair value based on inputs to the fair value technique used.

b. Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ' 10/- per share. Each holder of the equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by shareholders.

12 Equity share capital (Continued)

Notes:

1. Show cause notices received from Service tax department pending formal demand notices, have not been considered as contingent liabilities.

2. The Land Tribunal, Manjeri had passed orders conferring absolute title of the rubber estate at Pullangode to the Company. Appeals against this order filed by some of the Jenmis before the Land Reforms Appellate Authority have also been disposed off in favour of the Company and accordingly no adjustment is required in the standalone financial statements in this regard. Further, appeal filed by some of the Jenmis is pending before the Hon’ble High Court of Kerala.

3. The Company had taken 129 cents of landed property from Government of Kerala, on lease, which was initially for a period of 99 years, and thereafter, for a period of 50 years effective from 01 May 1953, till 30 April 2003. On the expiry of the lease period, the Company applied, to the Government of Kerala, for extension of the lease on longterm basis but it was rejected in 2013 and, thereafter, the property was taken over by the Government of Kerala in 2016. Meantime, the Company received a demand for arrears of lease rent for an amount of ' 205 lakhs for the period from 1995 till 2007 which demand was challenged before the Hon’ble High Court of Kerala. The High Court stayed the demand on payment of ' 40 lakhs. During the financial year 2024-25, the Company received another demand notice for an amount of ' 4,144 lakhs (including interest), for the period 1995 till 2016, without providing any details of break up or year wise demand. The said notice was challenged by the Company before the Hon’ble High Court of Kerala, which is pending, and is presently under stay in favour of the Company. The Company’s management intends to vigorously pursue this matter legally. Based on the legal opinion received by the Company, there is a range of potential outcomes possible in this case and the management has created a provision of ' 594 lakhs in the books of account for the most likely outcome it expects. The management believes that such provision is expected to be sufficient to meet any probable liability in this regard and excess, if any, on account of the actual outcome being worse than the expected outcome is considered as a contingent liability at this stage.

4. Future cash outflows in respect of the above matters are determinable only on receipt of judgements/ decisions pending at various forums/ authorities. Management believes that the position taken by it on the matter is tenable and hence, no adjustment has been made to the standalone financial statements.

5. On 28th February 2019, the Hon’ble Supreme Court of India has delivered a judgment clarifying the principles that need to be applied in determining the components of salaries and wages on which Provident Fund [PF] contributions need to be made by establishments. However, the Company has been legally advised that there are numerous interpretative challenges on the application of the judgment retrospectively. Based on such legal advice, the management believes that it is impracticable at this stage to reliably measure the provision required, if any, and accordingly, no provision has been made towards the same. Necessary adjustments, if any, will be made to the books as more clarity emerges on this subject.

6. The guarantee is given by the Company for the term loan availed by the subsidiary.

7. The Company is defending certain other commercial/ contractual matters, wherein the management believes that the likelihood of an unfavourable outcome is low.

A Basis for segmentation

The Company has the following three strategic divisions, which are its reportable segments. These divisions offer different products and services and are managed separately because they require different technology and marketing strategies.

The following summary describes the operations in each of the Company’s reportable segments:

Other operations include the manufacture and selling of natural fibre products, trading of mattresses, rental income from lease of commercial space etc. None of these segments met the quantitative thresholds for reportable segments in the year ended 31 March 2025 or year ended 31 March 2024.

Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

B information about reportable segments

Information related to each reportable segment is set out below. Segment profit (loss) before tax, as included is used to measure performance because management believes that such information is the most relevant in evaluating the results of the certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an arm’s length basis.

34 Leases

The Company as a lessee

The Company has entered into agreements with M/s Cochin Port Trust, which qualify as a lease as defined under Ind AS 116. The duration of lease is for a period of 30 years from the start date. Lease payments are renegotiated year on year to reflect market rentals. Under Ind AS 116, the Company has recognised right-of-use assets and lease liabilities - i.e. the lease is recorded on the standalone balance sheet.

Further, during the current year, the Company has entered into an agreement with M/s V.O Chidambaranar Port Authority, which qualifies as a lease as defined under Ind AS 116. The duration of lease is for a period of 30 years from the start date. Lease payments consist of an upfront premium amount and a nominal amount year on year. Under Ind AS 116, the Company has recognised right-of-use assets and lease liabilities - i.e. the lease is recorded on the standalone balance sheet.

The Company as a lessor

The Company has entered into lease arrangements for part of the office space in Registered Office in Trivandrum which qualifies as an operating lease under Ind AS 116. The total rental income recognised under this lease arrangement amounted to ' 233 lakhs for the year (previous year ' 181 lakhs).

The employee benefit schemes are as under:

I. Defined contribution plan

The Company makes contributions towards provident fund for qualifying employees. The contribution is made both by the employee and the Company equal to 12% of the employees’ salary (with Company’s contribution to the plan being 12% less contribution towards employee pension scheme). An amount of ' 245 lakhs (31 March 2024 - ' 233 lakhs) has been recognised and included in ‘Contribution to provident and other funds’ in the standalone statement of profit and loss on account of provident fund.

The Company recognised ' 92 lakhs (31 March 2024: ' 97 lakhs) for superannuation contribution and other retirement benefit contributions in the standalone statement of profit and loss.

The Company also makes contribution towards social security and insurance in the case of a foreign national employee who is employed at Hertogenbosch (Netherlands). The Company had recognised ' 17 lakhs (31 March 2024: ' 16 lakhs) for social security and insurance contributions in the standalone statement of profit and loss.

II. Defined benefit plan

A. Gratuity plan of the Company

The Company has a defined benefit gratuity plan, governed by the Payment of Gratuity Act, 1972. Fund balance of the gratuity plan is administered by Life Insurance Corporation of India. The gratuity plan entitles every employee, who has rendered at least five years of continuous service, to gratuity payable on termination of his/ her employment at the rate of 15 days salary for every completed year of service or part thereof in excess of six months, based on the rate of salary last drawn by the employee concerned. However, in the case of executive staffs, the plan entitles gratuity at the rate of 15 days salary for the first 15 years of service and at 30 days salary for service above 15 years, based on the rate of salary last drawn by the employee concerned.

The Company is expected to contribute ' 112 lakhs (31 March 2024: ' 116 lakhs) in the next financial year to the funds maintained for defined benefit plan.

B Compensated absence plan of the Company

The Company has a defined benefit compensated absence plan. Every employee (other than those coming under ‘workers’ cadre) is eligible for 30 days of privilege/ earned leave in a financial year. Earned leave accrues from the date of joining of an employee but can be availed only on confirmation of service. The privilege leave can be encashed for a maximum of 20 days per year, if available to the credit of employee and the balance leave can be carried forward. Annual leave can be accumulated to a maximum of 360 days and any accumulation over and above this limit will automatically lapse. Total accumulated leave can be encashed by the employee at the time of leaving of service based on their last drawn salary. Fund balance of the compensated absence plan is administered by the Life Insurance Corporation of India.

Discount rate: The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the yields/ rates available on applicable bonds as on the current valuation date.

Salary escalation rate: The salary growth rate indicated above is the Company’s best estimate of an increase in salary of the employees in future years, determined considering the general trend in inflation, seniority, promotions, past experience and other relevant factors such as demand and supply in employment market, etc.

Attrition rate: Attrition rate indicated above represents the Company’s best estimate of employee turnover in future (other than on account of retirement, death or disablement) determined considering various factors such as nature of business, retention policy, industry factors, past experience, etc.

* The fair value of investments, trade receivables, loans, other financial assets, cash and cash equivalents, other bank balances, borrowings, trade payables and other financial liabilities approximate their carrying amount largely due to short-term nature of these instruments.

B Measurement of fair values

i. Valuation technique and significant unobservable inputs

Investment in equity instruments : The fair value is determined based on the net assets of these entities as these are unlisted entities and carrying value is not material.

Fair value change in outstanding forward exchange contracts: The fair value is determined using forward exchange rates at the reporting date.

ii. Transfer between Level 1 and 2

There have been no transfers from Level 2 to Level 1 or vice-versa in 2024-25 and no transfers in either direction in 2023-24.

C Capital management

The key objective of the Company’s capital management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor and customer confidence and to ensure future developments of the business. The Company is focused on maintaining a strong equity base to ensure independence, security as well as financial flexibility for potential future borrowings, if required, without impacting the risk profile of the Company.

There are no changes in the Company’s approach to capital management during the year. The Company is not subject to externally imposed capital requirements.

D Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk;

(ii) Liquidity risk; and

(iii) Market risk

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors is responsible for developing and monitoring the Company’s risk management policies.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is 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.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.

The carrying amounts of financial assets and contract assets represent the maximum credit exposure.

Trade receivables and contractually reimbursable expenses

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry.

Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers based on which the Company agrees on the credit terms with customers in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenue. The provision matrix takes into account available external and internal credit risk factors and the Company’s historical experience for customers.

Cash and cash equivalents and other bank balances

The Company held cash and cash equivalents and other bank balances of ' 2,803 lakhs at 31 March 2025 (31 March 2024: ' 2,890 lakhs). The cash and cash equivalents and other bank balances are held with banks. Impairment on cash and cash equivalents and other bank balances has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.

Other financial assets (including loans, deposits and investments)

All of the other financial assets at amortised cost (except loan to a subsidiary) are considered to have low credit risk, and the loss allowance, if any, is limited to 12 months’ expected losses. Management considers instruments to be low credit risk when they have a low risk of default and the borrower has a strong capacity to meet its contractual cash flow obligations in the near term.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach for managing liquidity is by ensuring, 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.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank facilities and by ensuring adequate internally generated funds.

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates which will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(a) Foreign currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which transactions are denominated and the functional currency of the Company. The functional currency of the Company is INR. The currencies in which these transactions are primarily denominated is USD and EURO. The summary of quantitative data about the Company’s exposure to currency risk at the end of reporting period expressed in INR are as follows:

The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with a fixed/ floating interest rate and bank deposits.

Exposure to interest rate risk

The Company’s interest rate risk arises from borrowings and fixed deposits. Borrowings issued at fixed/ floating rates exposes the Company to fair value interest rate risk. The interest rate profile of the Company’s interest-bearing financial instruments as reported to the management of the Company is as follows:

At 31 March 2025, biological assets other than bearer plants (standing timber) comprised approximately 42,221 cubic ft. of teakwood (31 March 2024: 42,041 cubic ft.), 645 cubic ft. of Rosewood (31 March 2024: 622 cubic ft.) and 2,852 cubic ft.of Mahagony (31 March 2024: 2,764 cubic ft.).

B Measurement of fair values

i. Fair value hierarchy

The fair value measurements of standing timber have been categorised as Level 2 fair values based on observable market sales data.

ii. Valuation techniques

The fair value measurement of timber being a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

C Risk management strategy related to agricultural activities

Regulatory and environmental risks

The Company is subject to environmental and other laws and regulations in India. The Company has established environmental policies and procedures aimed at compliance with these laws.

40 Dividends

The Board of Directors in their meeting held on 28 May 2025 have recommended a dividend of ' 6.50/- per equity share of ' 10/- each for the year ended 31 March 2025, subject to approval of the shareholders at the ensuing Annual General Meeting of the Company. During the previous year, the Board of Directors in their meeting held on 29 May 2024 had recommended a dividend of ' 6/- per equity share of ' 10/- each for the year ended 31 March 2024 which were approved at the Annual General Meeting held on 25 July 2024.

41 Managerial remuneration

The managerial remuneration paid / payable by the Company to the Managing Director and Executive Director & Chief Financial Officer of the Company (amounting to ' 278 lakhs) and consequently the total managerial remuneration for the financial year (amounting to ' 321 lakhs) exceed the prescribed limits under Section 197 read with Schedule V to the Companies Act, 2013 (‘the Act’) by ' 43 lakhs. As per the provisions of the Act, the excess remuneration is subject to approval of the shareholders which the Company proposes to obtain in the forthcoming Annual General Meeting. As per management’s assessment, the approval from shareholders for excess remuneration is probable.

Represents the following:

(a) Land at Sasthamangalam amounting to ' 1,017 lakhs (31 March 2024 - ' 1,017 lakhs). As at 31 March 2025, the same has been stated at recoverable value.

(b) Land at Chennai amounting to ' 282 lakhs (31 March 2024 - Nil). As at 31 March 2025, the same has been stated at book value (being lower of the book value and fair value less cost to sell).

(c) Land at Alappuzha amounting to ' 1 lakh (31 March 2024 - Nil). As at 31 March 2025, the same has been stated at book value (being lower of the book value and fair value less cost to sell).

The Company’s management is fully committed to dispose off the said lands in the near future.

* Represents provision made on account of defect in title of land at Sasthamangalam.

Represents advance received with regard to land at Sasthamangalam amounting to ' 600 lakhs (31 March 2024 -' 600 lakhs) and advance received with regard to land at Chennai amounting to ' 150 lakhs (31 March 2024 - Nil).

43 Additional regulatory information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013

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

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

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) 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.

(vii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(viii) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(ix) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

44 As at 31 March 2025 and 31 March 2024, the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.