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Mysore Sales International Limited
BENGALURU
CONTENTS
PAGE NO.
NOTICE 03
ABOUT US 05
DIRECTORS’ REPORT 06
ANNEXURE TO DIRECTORS’ REPORT 15
FINANCIAL STATEMENT OF SUBSIDIARY 16

COMPANIES (FORM AOC-1) 24
TEN YEARS PERFORMANCE 22
Ind AS STANDALONE ACCOUNTS FOR THE YEAR

ENDED 31ST MARCH 2024 25
CONSOLIDATED ACCOUNTS FOR THE YEAR

ENDED 31ST MARCH 2024 119
1
BOARD OF DIRECTORS
Sl. No. Name of the Director

1 Shri C. Puttarangashetty, MLA Chairman
2 Shri Manojkumar, IFS Managing Director
3 Dr. J. Ravishankar, IAS Director
4 Smt. Gunjan Krishna, IAS Director
5 Smt. Khushboo G Chowdhary, IAS Director
6 Shri Mohammed Ikramulla Shariff, IAS Director
7 Shri. R. Ramesh. Director
Shri K.R. Avinash, KA&AS Chief Financial Officer
Smt. Sridevi B.N. Company Secretary
REGISTERED OFFICE : MSIL HOUSE, 36, CUNNINGHAM ROAD

BENGALURU - 560 052.
BRANCH OFFICES : BENGALURU, MYSURU, DAVANAGERE, HUBBALLI,
KALABURAGI, MANGALURU, BELAGAVI,
MUMBAI, NEW DELHI
SALES OFFICES / UNITS

l Vijayapura l Davanagere l Kalaburagi l Hassan l Hubballi l Mangaluru l Mysuru
l Bhiwandi l Kanpur l Ghaziabad l Jaipur
BANKERS : Bank of Baroda, Canara Bank, State Bank of India,

HDFC Bank
AUDITORS : M/s. SORAB S. ENGINEER & CO., Chartered Accountants
2
MSIL HOUSE, 36 CUNNINGHAM ROAD,
BENGALURU - 560 052
CIN: U85110KA1966SGC001612
NOTICE
NOTICE is hereby given that the Fifty-eighth Annual General of India (C&AGI) and if thought fit, to pass,
General Meeting of the Members of Mysore Sales with or without modification(s), the following resolution
International Limited will be held on Monday, September as an Ordinary Resolution: -
30, 2024 at 4.30 p.m. at the Registered office, MSIL
“RESOLVED THAT pursuant to the provisions of section
House, No.36, Cunningham Road, Bengaluru-560 052
139(5) of the Companies Act, 2013, Comptroller and
to transact the following business at shorter notice.
Auditor General of India, has appointed M/s. Phillipos
ORDINARY BUSINESS: & Company (BA0008) Chartered Accountants,
Bengaluru as the Statutory Auditors of the Company
Item No.1 – Adoption of financial statements: To
for the financial year 2024-2025, and it is hereby
consider and adopt the financial statements of the
noted the appointment of the Statutory Auditors of
Company for the year ended March 31, 2024, (including
the Company to hold the office from the conclusion
the consolidated financial statements) and reports of
of Annual General Meeting (AGM) till the conclusion
the Board of Directors and Auditors thereon together
of next AGM and authorized the Board of Directors of
with the comments received from Auditor General
the Company to fix the remuneration of the Statutory
of India under Section 143(6) of the Companies Act,
Auditors of the Company.”
2013.
Item No.2 – To declare a dividend on equity shares: By order of the Board

To declare a dividend of Rs.72.91per equity share for For Mysore Sales International Limited
the financial year ended March 31, 2024. Sd/-
Sridevi B.N.
Item No.3 – To consider fixation of remuneration for the Company Secretary
year ending on March 31, 2025 payable to Statutory
Place: Bengaluru
Auditors appointed by the Comptroller & Auditor
Date: September 25, 2024
3
NOTES:
1. A member entitled to attend and vote at the 4. The Register of Directors and Key Managerial
Annual General Meeting is entitled to appoint a Personnel and their shareholding, maintained
proxy to attend and vote instead of himself and under Section 170 of the Companies Act 2013,
the proxy need not be a member of the Company. will be available for inspection by the members at
The annexed proxy form should be deposited at the AGM.
the Registered Office of the Company not less
than 48 hours before the commencement of the 5. Consent of all shareholders obtained for shorter
AGM. notice.
2. Corporate members intending to send their 6. 6. Members / proxies / authorized representatives

authorized representatives to attend the meeting should bring the duly filled attendance slip
are requested to send a certified copy of the enclosed herewith to attend the meeting.
Board Resolution of the Company, authorizing
By order of the Board
their representative to attend and vote on their
For Mysore Sales International Limited
behalf at the meeting.
Sd/-
3. The Company being a Government Company, Sridevi B.N.
Company Secretary
theComptroller & Auditor General of India has
appointed the Statutory Auditors of the Company Place: Bengaluru
for the year 2024-25 under Section 139 (5) of the Date:September 25, 2024
Companies Act, 2013.
4
About us
Mysore Sales International Limited , popularly known as (MSIL) is a marketing organization formed in 1966 to
meet the marketing needs of Karnataka. Since then, the Company has grown from strength to strength , to
emerge as a dynamic marketing force with a national presence and international reach.
A keen sense of business acumen, trade experience, managerial effectiveness and credibility are a few of the
hallmarks of this marketing giant and its ability to manage a diverse range of products and services through
innovative marketing strategies is the secret of its success. In a business where the prime motivator is people,
MSIL has developed flexibility in its thinking and management, enabling it to tackle every fresh challenge with an
innovative approach. To stay in rhythm with the changing tastes and values.
MSIL is a multi-divisional marketing organization and the main core of business of the Company at present is
Retail Liquor operations, Chit Fund , Retail outlets under the Pradhan Mantri Bharatiya Janaushadi Kendra, Air
Tickets / Package tour and marketing of Notebooks and Stationery in the State of Karnataka. The Company
has got a net work of branches in all the major District Headquarters in the State of Karnataka and two branches
outside Karnataka viz., New Delhi and Mumbai. The Company is achieved a highest turnover of Rs. 376935.19
lakhs during the current financial year as against the previous year’s turnover of Rs. 317978.33 lakhs, showing
a growth of 19%.
(Rs. In lakhs)
Sl.No Divisions 2023-24 2022-23 % of Growth
01 Beverage 318708.98 266072.84 20
02 Chit Fund 41049.66 36367.61 13
03 Paper & Stationery 14339.28 9984.71 44
03 Consumer/Industrial Products 830.85 2647.32 -
04 Tours & Travels 549.79 1464.10 -
05 Pharmacy 1456.63 1441.75 -
Total 376935.19 317978.33 19
5
DIRECTORS’ REPORT
To, the Company (Standalone and Consolidated) prepared
The Members, in compliance with Ind AS Accounting Standards, for
the financial year ended March 31, 2024..
Your directors take pleasure in presenting the 58th
Annual Report covering the highlights of the finances, 1. Highlights of Financial Performance
business and operations of your Company. Also (Rs. in lakhs)
included herein are the Audited Financial Statements of
Standalone Consolidated
Description March 31, March 31, March 31, March 31,
2024 2023 2024 2023
Revenue from Operations 337796.08 282531.70 376424.14 340421.62
Other Income 3764.12 3061.84 4113.29 3433.99
Total Income 341560.20 285593.54 380537.43 343855.61
Cost of materials consumed 2936.80 1766.99 2853.94 1742.54
Purchase of Stock-in- trade 301230.30 252556.61 303883.87 265845.06
Cost of Services 31861.48 40344.44
Changes in inventories of finished goods and traded goods -979.41 -523.75 -197.25 -1100.41
Employee benefits expense 2003.83 1860.32 2485.08 2419.31
Finance cost 238.52 179.92 239.43 180.00
Depreciation and amortization expenses 1946.94 1834.44 2017.62 1904.75
Other expenses 20881.28 19839.73 22135.09 21314.73
Group share of net profit of associated -5.66 -14.28
Total expenses 328258.26 277514.26 365284.92 33266.47
Profit /(Loss) before discontinuing Operations 13301.94 8079.28 15252.51 11190.91
Discontinuing Operation Profit / (Loss) 5.32 -2.82 3.98 -2.11
Profit before Tax 13307.26 8076.46 15256.49 11188.80
Tax Expenses 2920.90 1989.28 3721.69 2763.66
Profit for the year 10386.36 6087.18 11534.80 8425.14
Other Comprehensive Income 889.82 5.69 892.71 -12.18
Total Comprehensive Income for the year 11276.18 6092.87 12427.51 8412.96
Earning per share ( Basic) 243.04 142.44 269.92 197.15
Earning per share (Diluted) 243.04 142.44 269.92 197.15
The sales performance of the Company’s various 05 Tours & 549.79 1464.10 -62%
Divisions is presented below Travels
(Rs. in lakhs) 06 Pharmacy 1456.63 1441.75 1%
Sl. Divisions 2023-24 2022-23 Growth% Total 376935.19 317978.33 19%
No. of
01 Beverage 318708.98 266072.84 20% 2. State of Company’s Affairs and Future Outlook
02 Chit Fund 41049.66 36367.61 13% (i) Beverage Division: Government of Karnataka
03 Paper & 14339.28 9984.71 44% entrusted MSIL, with the responsibility of
Stationery opening 463 CL-11(C) liquor retail outlets in the
04 Consumer/ 830.85 2647.32 -69% year 2009. In addition to this, the Government
Industrial had sanctioned another 900 CL-11(C) liquor
Products retail outlets during the year 2016 to be opened
6
DIRECTORS’ REPORT (continued)
in all Assembly Constituencies. Accordingly, the (iii) Paper & Stationery Division: The Paper &
Division has taken all the necessary measures Stationery Division has achieved a turnover
to open the sanctioned liquor retail outlets of Rs. 14339.28 Lakhs during the year under
across Karnataka in coordination with the Excise review as against the budgeted turnover of Rs
Department. 11000.00 Lakhs. The Division has registered
a business growth of about 43% over previous
A total of 447 licenses under 463 quota and 653
financial year’s achievement.
licenses under 900 quota have been received
as on 31 March, 2024. In total, 1046 outlets With bare minimum manpower working in the
are under operation which are spread all over field representing our products, Division had to
Karnataka. MSIL liquor retail outlets are now rely on Govt. orders generated by the Business
spread across the state especially in rural areas Associates. Despite all the difficulties, the
and have received overwhelming response from Division has achieved a substantial business
the public for sale of quality liquor at MRP in growth during the year under review. Necessary
sealed bottles. steps have been initiated to tap the private
market which is expected to yield results in
Subsequently, the Beverages Division has
the coming years. There are also plans to
achieved a turnover of Rs.3187 Crores against
strengthen the product line and promoting the
the budgeted turnover of Rs.3000 Crores in the
products aggressively through conventional and
financial year 2023-24 as compared to previous
technology based promotional methods.
year’s turnover of Rs.2660.73 Crores. The
(iv) Consumer / Industrial Products Division:
Division would continue to put its best efforts to
open the remaining outlets under both 463 and • Prestigious One Mega Watt Solar Power Project
900 quota at the earliest possible time. which is worth of Rs.8.77 crores, the work is
on the urge of completion and will be shortly
(ii) Chit Funds Division: The Chit Fund Division
commissioned.
achieved a turnover of Rs.41049.66 lakhs for
• To install the various Solar Products the enquiry
the year 2023-24 as against actual turnover of
is received from the Karnataka Residential
Rs.36367.61 lakhs achieved during the previous
Educational Institutions Society (KREIS) at 633
year 2022-23. There is a significant increase
hostels. The project cost is expected to be
of about Rs.4682.05 lakshs in the turnover
around Rs.200 crores.
compared to previous year, an increase of 12.87
% in percentage terms. • The Solar 4 (G) Exemption proposal has been
resubmitted which is expected to get positive
The Chit Fund Division is successfully running
response from the Government of Karnataka.
with profits since inception of business and
• Engine Oil, Tilli Oil and Mustard Oil are currently
having an ambitious plan of action to scale up the
carrying a business of around Rs.45 lakhs per
Chit Fund Business by opening new branches
month and the division planning to increase to
in every District, major towns and talukas of
Rs.75 lakhs per month.
Karnataka. As a preliminary step, the company
taken steps for recruitment of permanent staff • KMF products like Ghee and Milk powder
through KEA. distribution at Delhi, Mumbai and Chennai
Branches which is also expecting business of
The induction of new user friendly and latest
around Rs.50 crores per annum.
technology software is under process and likely
(v) Tours and Travels Division: MSIL T&T
to be installed before the completion of 2024 to
Division is an IATA accredited Travel Agency
achieve the maximization and scaling up of the
(IATA No.1435229) operating for nearly around
new business.
20 years, the division has continued to book the
7
air tickets to government departments, senior Poseidon FZC and the agreement is yet to be
government officials, Bureaucrats, High court entered with the said party. As per the BOD
Judges and Chief Justice of the government resolution dated: 24.03.2023, final reminder
of Karnataka etc. Further the division is also notice dated: 26.03.2023 to M/s Poseidon
operating institutional study tours (State & FZC and M/s Ocean Agency have been issued
Central Government departments) from many instructing them to facilitate for the renewal of
years. Management has taken initiation to the agreement. Whereas, the said notices have
expand the wings of operations across the been returned as “unclaimed”. Further as per
country and overseas tourism destinations. the 340th BOD meeting dated 27.06.2024 action
Management has also planned further to has been initiated to seek the opinion from
extend the special offline packages benefiting to Advocate General of Karnataka regarding legal
untapped segments by conveying the message aspects concerning all the agreements entered
of our offers through promotional activities into by MSIL with the above supplier and their
to increase the turn over and profits which consortium entities and any other applicable
contributes to the company under intension of agreements relating to the sand stock that
establishing the division activities across the may impose legal restraints on the sand stock
state being the core product of the company. disposal by auction process on as is where is
basis.
(vi) Pharma Division: Phama Division has
achieved a turnover of Rs.1627.97 during 2023- In the 341st Board Meeting held on 17.08.2024
24 as against the turn over 22-23 Rs.1568.09. further issues pertaining to sand division has
The Division has opened 88 outlets under been apprised. After deliberation the board has
the Pradhana Mantri Bharatiya Janaushadhi resolved as “the consent of the Board be and is
Kendra at Government Taluk/ District Hospital hereby accorded for the disposal of the entire
across Karnataka. The Division has obtained imported river sand stored at Krishnapatnam
PMBI approval for opening of new outlet in port on an ‘as is where is basis’ subject to the
CIMS Teaching Hospital Chamrajanagar which approval of the Government of Karnataka for the
is under process. Upgraded the software of GST disposal of sand stock outside Karnataka i.e. at
inclusivity is updated for smoothly billing. the Krishnapatnam Port.”
(vii) Sand Division: The business of Import and As per the approval of the Board, action has been
Trading of Natural River Sand, the Company has initiated to seek the approval of the Government
achieved a total turnover of Rs. 381.66 lakhs for for disposal of the sand on as is where is basis
the year 2017-18 to 2019-20 for having sold a through the principal secretary (C&I) vide our
quantity of 14,759 MTs. While on the above, due letter dated 03.03.2024. On approval, disposal
to covid pandemic crisis, the interstate movement process would be initiated.
of imported sand from Krishnapatnam port 3. Subsidiary Companies
Company Ltd. (A.P) to Bangalore was restricted
As of March 31, 2024, your Company had two
during the year 2020-21. Further, the sale
subsidiary companies viz., M/s. Karnataka State
forecast of imported sand could not materialize
Marketing Communication and Advertising
due to economic slowdown in the construction
Limited and M/s. Mysore Chrome Tanning
industry. Hence, the authorized C&F distribution
Company Limited. The Statement under Section
agent and dealer could not remit any payment
129 (3) of the Companies Act 2013 in respect
and lift the sand from the port during 2020-21.
of the subsidiaries in Form AOC-1 is attached
Meanwhile Poseidon FZE was taken over by as Annexure-I. The Consolidated Accounts of
8
your Company duly audited by the Statutory u/s 100 for the year no loan outstanding in the
Auditors are presented as part of this Report. name of the Company year under report may be
4. Change in the Nature of Business, If any: taken as Nil. There is no loan outstanding in the
name of the Company from any bank or financial
There is no change in the nature of business of
institution and accordingly the applicability of one
the Company.
time settlement (OTS) does not arise. Further,
5. Dividend
there are no proceedings pending in the name of
During the Financial year 2023-2024, the the Company under Insolvency and Bankruptcy
Company has proposed to declare dividend Code (IBC).
of 30% of the Company’s profit after tax i.e.
9. Particulars of Employees:
Rs.72.91 per equity share, which is payable
to Government of Karnataka and KSIIDC for There are no employees drawing remuneration
a sum of Rs.31,15,90,768/- if approved by beyond the stipulated limit in accordance with
the members in the ensuing Annual General Sec. 197 read with the provisions of Rules 5
Meeting. (2) & 5 (3) of the Companies (Appointment and
6. Reserves Remuneration of Managerial Personnel) Rules,
2014.
The reserve of the Company for the financial
year 2023-24 and the previous year are as 10. Directors and Key Managerial Personnel
follows:
During the financial year 2023-24, the following
(Rs. in lakhs)
changes in the composition of the Board of
Particulars 2023-24 2022-23 Directors of the Company had taken place as per
General Reserve 19125.69 19125.69 the directions of the Government of Karnataka.
Chit Reserve 1103.35 928.21 Sl. Name of the Director DIN Date of Date of
Surplus in Statement of Profit 38936.14 30551.92 No. Appointment Cessation
and Loss 1 Shri. H Halappa 02321290 27.07.2020 12.04.2023
2 Shri M.B. Patil 02558869 13.06.2023 26.01.2024
Transfer of Reserves in Terms of Section 134 (3)
3 Shri C. Puttaranga 07745825 26.01.2024 -
(J) of the Companies Act, 2013: shetty
The Company has not transferred any amount 4 Shri. Vikash Kumar 08122455 31.03.2021 03.07.2023
Vikash, IPS
to General Reserve Account for the financial
5 Shri Manoj Kumar, IFS 09379177 03.07.2023 -
year ended 31st March 2024.
6 Dr. J. Ravishankar, IAS 07662542 03.08.2021 -
Events subsequent to the date of Financial 7 Smt. Gunjan Krishna, 08184500 28.08.2018 -
Statements, if Any. IAS
There are no changes in the nature of business of 8 Dr. M R Ravi, IAS 08254276 05.02.2022 23.11.2023
the Company. 9 Dr. B.C.Sateesha, IAS 08379733 23.11.2023 -
10 Shri Nitish. K, IAS 08890701 07.05.2022 -
7. Share Capital
11 Shri. R. Ramesh. 06820058 06.03.2018 -
There is no change in the Share Capital of the
12 Shri Venkatesh Naidu 08980109 02.12.2020 22.05.2023
Company.
13 Shri. C Channadevaru 08601746 19.10.2019 22.05.2023
8. Particulars of Loans, Guarantees or
14 Shri. Shivaji Shivaray 08759087 10.06.2020 22.05.2023
investments U/s 186 Dollin
The particular of loans, guarantees or vestments 15 Shri. Andappa Javali 08745350 22.05.2020 22.05.2023
9
16 Shri. Totappa Nagappa 08744799 21.05.2020 22.05.2023 3 Shri. A M 14.12.2021 30.11.2023
Nidagundi Chandrappa, Chief
17 Dr. R D Satish 08745322 22.05.2020 22.05.2023 Financial Officer
18 Shri. Ningappa 08744756 21.05.2020 22.05.2023 4 Shri K.R. Avinash, 01.12.2023 -
19 Shri Shashidhar B 10048176 30.01.2023 22.05.2023 KA&AS, Chief
Honnannavar Financial Officer
5 Smt. Sridevi B.N, 18.09.2013 -
The Board placed on its record with deep sense
Company Secretary
of gratitude for the excellent contribution made by
Shri H Halappa, Shri M.B. Patil, Shri. Vikash Kumar Composition of the Audit Committee of the Board:
Vikash, IPS, Dr. M.R. Ravi, IAS, and Shri Venkatesh
As on March 31, 2024
Naidu, Shri. C Channadevaru, Shri. Shivaji Shivaray
1. Dr. B.C.Sateesha, IAS Chairman
Dollin, Shri. Andappa Javali, Shri. Totappa Nagappa
2. Dr. J. Ravishankar, IAS Member
Nidagundi, Dr. R D Satish, Shri. Ningappa, Shri
Shashidhar B Honnannavar Directors, during their 3. Shri. Nitish K, IAS Member
tenure on the Board of Directors of the Company. 4. Shri. R Ramesh Member
Notification No. CI 02 CMI 2024(E) dated 12.01.2024, As on the date of report

the designations of Dr. J. Ravishankar, IAS, and Shri 1. Smt.Khushboo G. Chowdhary, IAS Chairperson
R. Ramesh have been changed from Independent 2. Dr. J. Ravishankar, IAS Member
Directors to Directors on the Board of the Company.
3. Shri. Mohammed Ikramulla Member
Directors on the date of report are as follows:- Shariff, IAS
4. Shri. R Ramesh Member
Name of the Director
1. Shri. C. Puttarangashetty, - Chairman Composition of the CSR Committee of the Board:
Hon’ble M.L.A.
As on March 31, 2024
2. Shri. Manoj Kumar, IFS - Managing Director
1 Shri. Manoj Kumar, IFS Chairman
3. Dr. J. Ravishankar, IAS - Director
2 Dr. Sateesha B.C., IAS Member
4. Smt. Gunjan Krishna, IAS - Director
3 Shri. Nitish K, IAS Member
5. Smt. Khushboo G. Chowdhary, IAS - Director
4. Shri. R. Ramesh Member
6. Shri. Mohammed Ikramulla Shariff, IAS - Director
7. Shri. R Ramesh - Director As on the date of report
During the financial year 2023-24, the following are the 1 Shri. Manoj Kumar, IFS Chairman
Key Managerial Personnel of the Company as per the 2 Smt.Khushboo G. Chowdhary, I.A.S Member
provisions of the Companies Act, 2013: 3 Shri. Mohammed Ikramulla Shariff, IAS Member
Sl. Name of the Date of Date of 4 Shri. R. Ramesh Member
No. Key Managerial Appoint- Cessation
Personnel ment 11. Meetings
1 Shri. Vikash Kumar 31.03.2021 03.07.2023 Based on the requisition received from the
Vikash, IPS- divisional heads subject to the approval of the
Managing Director Managing Director and agenda subjects as
2 Shri Manoj Kumar, 03.07.2023 - statutorily required, the Company Secretary
IFS-Managing draft the agenda for each meeting along with
Director
explanatory notes, in consultation / consensus with
the Managing Director, and distribute the same
10
in advance to the Board of Directors. Five Board 17 Dr. R D Satish 0 0
Meetings, Four Audit Sub-Committee Meetings
18 Shri. Ningappa 0 0
and One Corporate Social Responsibility
19 Shri Shashidhar B Honnannavar 0 0
Committee Meeting were held during the year
ended March 31, 2024 on the following dates: 1. Shri H. Halappa ceased to be Director &
Chairman with effect from April 12, 2023.
Sl. Board Meeting Sl. Audit Sub-
2. Shri M.B. Patil was appointed as Director &
No. held on No. Committee
Chairman on 13.06.2023 and ceased to be
Meeting held on
Director & Chairman with effect from 26.01.2024.
1 July 20, 2023 1 July 19, 2023
3. Shri C. Puttarangashetty was appointed as
2 November 15, 2 November 29, 2023
Director & Chairman on 26.01.2024.
2023
3 November 29, 3 January 05, 2024 4. Shri Vikash Kumar Vikash, IPS ceased to be
2023 Managing Director with effect from 03.07.2023
4 January 25, 4 March 06, 2024 5. Shri Manoj Kumar, IFS was appointed as
2024 Managing Director on 03.07.2023
5 March 07, 2024 6. Dr. M.R. Ravi, IAS ceased to be a Director with
effect from 23.11.2023
Sl. Corporate Social Responsibility 7. Dr. B.C. Sateesha, IAS was appointed as Director
No. Committee Meeting held on on 23.11.2023.
1 January 25, 2024 8. Shri Venkatesh Naidu ceased to be a Director
with effect from May 22, 2023.
Board Meeting attendance of directors during
financial year 2023-2024 9. Shri. C Channadevaru ceased to be a Director
with effect from May 22, 2023.
No. of Board
Sl. 10. Shri. Shivaji Shivaray Dollin ceased to be a
Name of the Director Meetings held
No. Director with effect from May 22, 2023.
Held Attended
11. Shri. Andappa Javali ceased to be a Director with
1. Shri. H Halappa 0 0
effect from May 22, 2023.
2. Shri M.B. Patil 4 3
12. Shri. Totappa Nagappa Nidagundi ceased to be a
3. Shri C. Puttarangashetty 1 1
Director with effect from May 22, 2023.
4. Shri. Vikash Kumar Vikash, IPS 0 0
13. Dr. R D Satish ceased to be a Director with effect
5. Shri Manoj Kumar, IFS 5 5
from May 22, 2023.
6. Dr. J. Ravishankar, IAS 5 2
7. Smt. Gunjan Krishna, IAS 5 2 14. Shri. Ningappa ceased to be a Director with effect
from May 22, 2023.
8. Dr. M R Ravi, IAS 2 1
9. Dr. B.C. Sateesha, IAS 3 2 15. Shri Shashidhar B Honnannavar ceased to be a
Director with effect from May 22, 2023.
10. Shri Nitish K, IAS 5 2
11. Shri. R. Ramesh. 5 4 12. Auditors & Auditors’ Report
12 Shri Venkatesh Naidu 0 0 As the Company is a Government Company under
13 Shri. C Channadevaru 0 0 section 2(45) of the Companies Act, 2013, the
14 Shri. Shivaji Shivaray Dollin 0 0 Comptroller and Auditor General of India under
15 Shri. Andappa Javali 0 0 section 139(5) of the Companies Act, 2013 appoints
the statutory auditors to audit the annual accounts.
16 Shri. Totappa Nagappa Nidagundi 0 0
The C&AGI has appointed M/s Sorab Engineer &
11
Co, (BO0036) Chartered Accountants, Bangalore as and Administration) Rules, 2014, copies of the Annual
Statutory Auditors for the year 2023-24. The statutory Returns of the Company for the previous financial years
auditors appointed by C&AG will hold office till the prepared in accordance with Section 92 (1) of the Act
conclusion of the next Annual General Meeting. have been placed on the website and is available at
There are qualifications in the Statutory Auditors’ https://msilonline.com/annual-returns
Report. The replies to the qualifications of the Statutory 16. Adequacy of Internal Financial Controls with
Auditors’ report by the Management are appended to reference to Financial Statements
this report.
The Company has in place adequate Internal Financial
Pursuant to the provisions of Section 204 of the Controls with reference to Financial Statements.
Companies Act 2013 and the Companies (Appointment During the year under review such controls were tested
and Remuneration of Managerial Personnel) Rules and no significant reportable material weakness in the
2014, the Company has appointed M/s. S. Kedarnath & operations was observed.
Associates, a firm of Company Secretaries in practice
17. Vigil mechanisms of the Company
to undertake the Secretarial Audit of the Company.
The Secretarial Audit Report does not contain any The provisions regard Vigil Mechanisms are not
qualifications, reservations, or adverse remarks. applicable to the Company.
The report of the Secretarial Auditors is enclosed 18. Risk Management Policy
as Annexure III to this report. The report is self- The main objective is to ensure sustainable business
explanatory and do not call for any further comments. growth with stability and to promote a pro-active
During the year under review, the Statutory Auditor and approach in report, evaluating and resolving risks
Secretarial Auditor have not reported any instances associated with the business.
of frauds committed in the Company by its officers The Company has assessed the risk factors of all the
or employees to the Audit Committee under Section operating divisions and steps as appropriate are taken
143 (12) of the Companies Act 2013, details of which to mitigate the same.
needs to be mentioned in the Report.
19. Material changes and commitments, if any,
13. Internal Audit & Controls affecting the financial position of the company
The Company continues to appoint Internal Auditors. which have occurred between the end of the
The scope and extent of Internal Audit encompasses financial year of the company to which the financial
audit and review of transactions. The Internal Auditors statements relate and the date of the report
furnish their report to the Company, along with the
There are no such material changes occurred
comments of the company, which shall be placed
subsequent to the close of the financial year of the
before the Audit Committee on an ongoing basis to
Company to which the balance sheet relates and
improve efficiency in operations.
the date of the report like settlement of tax liabilities,
14. Declaration by independent directors operation of patent rights, depreciation in market
The Company has received necessary declaration value of investments, institution of cases by or against
from each independent director under Section 149(7) the company, sale or purchase of capital assets or
of the Companies Act, 2013, that he meets the criteria destruction of any assets etc.
of independence laid down in Section 149(6) of the 20. Details of significant and material orders
Companies Act, 2013. passed by the regulators or courts or tribunals
15. Annual return impacting the going concern status and company’s
operations in future
Pursuant to Section 92 (3) of the Companies Act, 2013
read with Rule 12 of the Companies (Management There are no such orders passed, to which impacting
12
the going concern status and company’s operations attention at all levels of operation in the Company. The
in future. Company being mainly a trading concern, is consuming
power for the purpose of office use only. All efforts
21. Deposits
are made to conserve and optimize use of energy.
During the year under review, the Company has not Updation of Technology is a continuous process in the
accepted any deposits covered under Chapter V of the operations of the Company. The information relating
Companies Act, 2013, from the public. to conservation of energy, technology absorption and
22. Related Party Transactions: foreign exchange earning and outgo may be taken as
Nil.
During the year under review, there were no contract
or arrangements entered into by the Company in 25. Corporate Social Responsibility (CSR)
accordance with provisions of section 188 of the As per Section 135 of the Companies Act, 2013, a
Companies Act, 2013. company, meeting the applicability threshold, needs
23. Disclosure under the Sexual Harassment of to spend at least 2% of its average net profit for
women at workplace (Prevention, Prohibition and the immediately preceding three financial years on
Redressal) Act, 2013 (‘POSH Act’) Corporate Social Responsibility (CSR) activities. The
areas for CSR activities are promoting education and
The POSH Act stands as a crucial legislation in India
healthcare. A CSR Committee has been formed by
dedicated to preventing sexual harassment. It was
the Company as per the Act. The funds were spent on
put in place to ensure a safe and secure working
these activities which are specified in Schedule VII of
environment for women and to deter harassment in
the Companies Act, 2013. The Details about the CSR
the workplace. We believe that POSH Act has played
initiatives taken during the year referred to in Section
a significant role in promoting teamwork, diversity
135(4) of the Companies Act, 2013, in the prescribed
and trust within our Company. At MSIL, we are
format is enclosed as Annexure II to this report.
committed to fostering a safe and professional work
setting. In addition to maintaining a gender-neutral 26. Human Resources
Anti-Sexual Harassment Policy, we comply with the Your Company treats its ‘human resources’ as one of
regulations of the POSH Act. To address complaints its most important assets.
related to sexual harassment, we have established
Your Company continued to give thrust for training
an Internal Complaint Committee. From the inception
and development of the employees. During the year
of the POSH Act, MSIL has been compliant with the
2023-24 to improve the employee’s performance, the
establishment of the Internal Complaint Committee.
Company had imparted various training programmes.
Complaints of sexual harassment at work will be dealt
with judiciously and expeditiously by this committee. During 2023-24 (up to March 31, 2024) there are 72
The committee comprises female and male members, employees in our Company (Executives-11, Officers –
of whom more than 50% are women. As required 28, Staff-33.
under the POSH Act, we have filed an Annual Report
27. Project / Estate Department
with the competent authorities. All required documents
in compliance with the POSH Act have been filed. The core objective of Project Division in the Company
is to ensure that all the Company Properties are
We have received no POSH complaints during the
maintained in a good and ready to use condition by
year under review. Regardless of no complaints, we
carrying out period inspection and maintenance of the
have ensured that we have created awareness of
properties and to ensure that all the properties are
POSH through our POSH awareness program.
monetized. The Project Division is also vested with
24. Conservation of energy, technology absorption responsibility to update all Company Properties data
and foreign exchange earnings and outgo: by paying property taxes regularly and reviewing the
Rental / Lease Agreements as needed.
Energy conservation continues to receive priority
13
The Project Division is in the process of monetizing and that such systems were adequate and operating
the properties of the Company in a planned manner effectively.
and has taken up construction of a Semi-commercial
29. Transfer of Amounts to Investor Education
building on the vacant plot at Malleswaram along with
and Protection Fund.
repair works of the Head Office building at Cunningham
Road, Bengaluru. Your Company did not have any funds lying unpaid or
unclaimed for a period of seven years. Therefore, there
28. Directors’ Responsibility Statement
were no funds which were required to be transferred to
To the best of their knowledge and belief and according Investor Education and Protection Fund (IEPF).
to the information and explanation obtained by them,
30. Acknowledgements
your Directors make the following statement in terms
of clause (c) of sub-section (3) of Section 134 of the Your Directors are pleased to record their appreciation
Companies Act, 2013, shall state that- for the guidance, cooperation and support received
from the Government of Karnataka, particularly
(a) In the preparation of the annual accounts for the
the Commerce & Industries Department, Finance
financial year ended March 31, 2024, the applicable
Department, M/s Karnataka State Industrial
accounting standards had been followed along with
Infrastructure & Development Corporation Ltd., as well
proper explanation relating to material departures;
as from Principals, Suppliers, Bankers, the Comptroller
(b) The directors had selected such accounting policies and Auditor General of India, Principal Accountant
and applied them consistently and made judgments General (Civil and Commercial Audit) Karnataka,
and estimates that are reasonable and prudent so as Statutory Auditors, Secretarial Auditors, Internal
to give a true and fair view of the state of affairs of the Auditors, and other stakeholders for their consistent
company at March 31, 2024 and of the profit and loss support for your Company’s operations.
of the company for that period;
Your Directors take this opportunity to place on
(c) The directors had taken proper and sufficient record their sincere appreciation for the dedication,
care for the maintenance of adequate accounting contribution and commitment of all employees to the
records in accordance with the provisions of this Act Company’s growth.
for safeguarding the assets of the company and for
For and on behalf of the
preventing and detecting fraud and other irregularities;
Board of Directors
(d) The directors had prepared the annual accounts for Sd/-
the financial year ended March 31, 2024, on a going C. Puttarangashetty
concern basis; and Chairman
Place: Bengaluru
(e) The directors had devised proper systems to ensure
compliance with the provisions of all applicable laws
14
Annexure Index
Annexure Content
I Details of subsidiary – AOC-1
II Annual Report on CSR Activities
III MR-3 Secretarial Audit Report
15
Annexure – I
Form AOC -1
Statement containing salient features of the financial statement of Subsidiaries / Associate Companies / Joint Venture
Part A : Subsidiaries
Rs. in lakhs
Total Provision
Share
Liabilities Profit for Proposed Proposed
Name of the Capital Profit / % of
Sl. Reporting Reporting Reserves Total (excluding Invest- Turn Other Total / Loss Taxation Dividend Dividend
Subsidiary (incl. (Loss) after Share
No. Period Currency & Surplus Assets Share ments over Income Revenue before (including on Equity on Equity
Company Pref. taxation holding
Capital & Taxation Deferred Shares % Shares
Shares)
Reserves) Tax)
1 Karnataka State 31st March, Indian 357.25 20477.17 46405.07 25571.65 - 38710.92 956.81 39667.73 2550.85 788.18 1762.81 - - 100%
Marketing 2024 Rupee
16
Communication &
Advertising Limited
2 The Mysore Chrome 31st March, Indian 75.74 (816.94) 147.30 888.50 - - 6.89 6.89 32.41 13.96 18.45 - - 95.10%
Tanning Company 2024 Rupee
Limited
Annexure – II
Annual Report on CSR Activities
[Pursuant to Section 135 of the Companies Act, 2013]
1. Brief outline on CSR Policy of the Company: Pursuant to the provisions of Section 135 of the Companies
Act, 2013 and the Companies (Corporate Social Responsibility) Rules, 2014, the Company has framed
the Policy on CSR Activities. The programmes initiated are taken up in line with Schedule-VII of the
Companies Act, 2013 which are duly incorporated in CSR Policy and forms the Guiding Principle for all our
programmes.
2. The Composition of the CSR Committee:
Number of Number of
meetings of meetings of
Sl Designation / Nature of
Name of the Director CSR Committee CSR Committee
No. Directorship
held during the attended during
year the year
1 Shri. Manoj Kumar, IPS Managing Director 1 1
2 Dr. B.C.Sateesha, IAS Member 1 1
3 Shri K. Nitish, IAS Member 1 1
4 Shri R Ramesh Member 1 1
3. Web-link(s) where Composition of CSR Committee, CSR Policy and CSR Projects approved by the
board are disclosed on the website of the company:
i. Composition of CSR Committee: https://www.msilonline.com/committees-of-the-board
ii. CSR Policy: https://www.msilonline.com/csr-policy
iii. CSR Projects approved by the board: https://www.msilonline.com/csr-contributions
4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects
carried out in pursuance of sub-rule (3) of rule 8, if applicable:
The Impact assessment on CSR projects is not applicable for the company as the company does not have
an CSR obligation of Rs 10 Crores or more in the three immediately preceding financial years.
5. (a) Average net profit of the company as per sub-section (5) of section 135: Rs.7815.35 lakhs.
(b) Two percent of average net profit of the company as per sub-section (5) of section 135: Rs.156.31
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: Rs.10.83 lakhs.
(e) Total CSR obligation for the financial year [(b)+(c)-(d)]: Rs.145.48 lakhs
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): Rs.147.90
lakhs
Amount spent in Administrative Overheads: Nil.
(c) Amount spent on Impact Assessment, if applicable: Nil.
(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: Rs.147.90 lakhs.
(e) CSR amount spent or unspent for the Financial Year:
17
Total amount Amount Unspent (in Rs.)
spent for the
Financial Year.
(in Rs.) (in
lakhs.)
Total amount transferred to Amount transferred to any fund specified under
Unspent CSR Account as per Schedule VII as per second proviso to sub-
subsection (6) of Section 135 section (5) of Section 135
Amount Date of transfer Name of the Amount Date of transfer
Fund
147.90 -
(f) Excess amount for set-off, if any:
Sl Particulars Amount (in Rs.)
No. (in lakhs.)
(1) (2) (3)
(i) Two percent of average net profit of the company as per sub-section (5) of section 135 156.31
(ii) Total amount spent for the Financial Year 147.90
(iii) Excess amount spent for the Financial Year [(ii)-(i)] (8.41)
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous 10.83
Financial Years, if any
(v) Amount available for set off in succeeding Financial Years. [(iii)-(iv)] 2.42
7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
1 2 3 4 5 6 7
Sl Preceding Amount Balance Amount Amount Spent in the Amount
No Financial transferred Amount in Spent Financial Year (in Rs) remaining
Year (s) to Unspent Unspent CSR in the Amount transferred to be
CSR Account Financial to a Fund as specified spent in
Account under sub- Year (in under Schedule VII as succeeding
under sub- section (6) of Rs) per second proviso to Financial
section (6) section 135 (in subsection (5) of section Years (in
of section Rs.) 135, if any Rs)
135 (in Rs.) Amount Date of
(in Rs.) Transfer
1 FY-1: 22-23 - - - - -
2 FY-2: 21-22 - - - - -
3 FY-3: 20-21 - - - - -
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount
spent in the Financial Year: No
9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per
subsection (5) of section 135: Nil
Sd/-
(Managing Director & Chairman of CSR Committee)
18
Annexure - III
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
For The Financial Year Ended 31st March 2024
[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
MYSORE SALES INTERNATIONAL LIMITED
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence
to good corporate practices by Mysore Sales International Limited bearing CIN: U85110KA1966SGC001612
having its registered office at MSIO House 36, Cunningham Road, Bangalore, Karnataka, India – 560052,
(hereinafter called ‘the Company’). Secretarial Audit was conducted in a manner that provided us a reasonable
basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
The Company is a Government Company and is mainly engaged in trading activities for beverages, paper,
consumer products, industrial products, imported sand and pharma products besides chit fund business and
tours and travels. As per the Articles of Association, the Company is also required to comply with the directions
and guidelines issued by Government of Karnataka from time to time. As per Notification No. G.S.R., 463(E)
dated June 05, 2015, by Ministry of Corporate Affairs, Government companies are exempted from complying
with some of the provisions of Companies Act, 2013 (“the Act”).
Based on our 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, we hereby report that in our opinion, the
company has, during the audit period covering the financial year ended on March 31, 2024 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:
We have examined the books, papers, minute books, forms and returns filed, and other records maintained by
the Company for the financial year ended on March 31, 2024, according to the provisions of:
(i) The Companies Act, 2013 and the rules made thereunder.
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made thereunder – Not applicable
to the Company, as it is an unlisted public company.
(iii) The Depositories Act, 1996 and the Regulations and byelaws framed thereunder – Not applicable to the
Company, as company’s equity shares are maintained in physical form during the audit period under review.
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of
Overseas Direct Investment and External Commercial Borrowings, if any.
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above.
We 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. The changes in the composition of the Board of
19
Directors that took place during the period under review were carried out in compliance with the provisions of
the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda
were sent at least seven days in advance, and 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.
Majority decision is carried through while the dissenting members’ views are captured and recorded as part of
the minutes.
We 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.
We further report that during the audit period the company has delayed holding the Annual General Meeting and
held no such events/actions having a major bearing on the company’s affairs in pursuance of the above referred
laws, rules, regulations, guidelines, standards, etc.
In general, it was observed that the Company, being a Government Company and subject to audit by the
Comptroller and Auditor General of India, is maintaining all the required records properly and have established
systems and procedures for complying with various applicable laws.
For S Kedarnath & Associates
Sd/-
Swayambhu Kedarnath
Company Secetaries
C. P No.: 4422
Place: Bengaluru
This report is to be read with our letter annexed to the secretarial audit report and forms an integral part of the
report.
20
ANNEXURE “A”
To,
The Members,
Dear Sir,
Our report of even date is to be read along with this letter:
1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility
is to express an opinion on these secretarial records based on our audit.
2. We 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 was done on test basis to
ensure that correct facts are reflected in secretarial records. We believe that the processes and practices,
we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of
the company.
4. Wherever required, we have obtained the Management representation about the compliance of laws,
rules and regulations and happening of events, etc. The compliance under the industry specific laws were
examined based on the list of applicable laws provided by the company
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is
the responsibility of management. Our 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.
For S Kedarnath & Associates
Sd/-
Swayambhu Kedarnath
Company Secetaries
C. P No.: 4422
Place: Bengaluru
21
TEN YEARS PERFORMANCE
FINANCIAL HIGLIGHTS OF PREVIOUS TEN FINANCIAL YEARS
(Rs. in lakhs)
Partuculars 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Net Worth 26814.97 30051.70 33190.30 33503.15 34392.26 39996.46 45228.55 51557.40 56545.42 65993.73
(Share Capital,
Reserve)
Paid-up Capital 2017.66 2017.66 2017.66 4273.48 4273.48 4273.48 4273.48 4273.48 4273.48 4273.48
Share 2255.82 2255.82 2255.82 - - - - - -
Application
Money
Reserves & 22541.49 25778.22 31172.64 29229.68 31208.48 35722.99 40955.07 47283.92 52271.94 61720.25
Surplus
Net Fixed 5624.66 5626.25 6225.01 6974.83 7966.36 9590.61 9687.76 9330.15 9974.82 9798.95
Assets
Turnover 146039.32 151490.75 161407.69 178875.91 204763.86 227065.31 276386.99 289947.45 317978.34 376935.20
Profit before 6052.27 5400.50 5699.87 1486.84 3237.82 4246.68 6814.70 8290.41 8084.08 14498.16
Tax
Dividend 10% 10% 10% - 5% 5% 7.50% 30.00% 30.00% 30.00%
Dividend 242.11 242.85 237.38 - 257.59 213.67 320.51 1105.19 1827.87 3115.91
Amount Paid
Interim - - - - - - - - - 782.57
Dividend
Amount Paid
CSR Amount - 600.00 200.00 540.80 205.41 152.25 92.00 121.60 90.66 147.90
Paid
Net Earning 166.36 178.71 181.68 12.68 46.30 61.45 127.43 167.20 142.44 243.04
after tax
per share (in
Rs)
Net Worth per 1217.21 1377.63 1644.99 783.98 830.28 935.92 1058.35 1206.45 1323.17 1544.26
Share (in Rs)
22
SUMMARISED PROFIT AND LOSS ACCOUNT OF PREVIOUS TEN FINANCIAL YEARS
(Rs. in lakhs)
Partuculars 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Turnover 146039.32 151490.75 161407.69 178875.91 204763.86 227065.31 276386.99 289947.45 317978.34 376935.20
Gross Income 14919.86 15490.81 16453.84 17952.46 20742.63 22446.00 27099.20 28206.30 31267.13 38589.32
Selling & 8923.90 9636.88 10433.61 15990.08 16723.59 16658.51 17839.76 17113.94 21105.65 21652.82
Administrative
Expenses
Interest 48.68 145.35 2.44 0.90 33.52 0.33 1.30 39.22 4.62 2.53
Depreciation 291.01 255.39 285.21 341.85 721.80 1495.40 1725.69 1761.90 1834.44 1946.94
Provision/ 47.72 91.36 50.60 132.79 25.90 45.08 717.74 1000.83 245.94 488.87
Write off
TOTAL 9311.31 10128.98 10771.86 16465.62 17504.81 18199.32 20284.49 19915.89 23190.65 24091.16
Profit before 5608.55 5361.83 5681.98 1486.84 3237.82 4246.68 6814.71 8290.41 8076.48 14498.16
tax
Provision for 2252.67 1923.22 1978.80 939.77 1153.69 1096.79 2017.85 1950.00 2055.00 3411.94
taxation
Deferred Tax (0.62) (167.21) 37.48 5.22 105.33 524.04 (648.92) (308.94) (71.42) (189.96)
Credit
Profit after tax 3356.50 3605.82 3665.70 541.85 1978.80 2625.85 5445.78 6649.35 6092.90 11276.18
23
SUMMARISED BALANCE SHEET OF PREVIOUS TEN FINANCIAL YEARS
(Rs. in lakhs)
Partuculars 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
OWN FUNDS
Share Capital 2017.66 2017.66 2017.66 4273.48 4273.48 4273.48 4273.48 4273.48 4273.48 4273.48
Share 2255.82 2255.82 2255.82 - - - - -
Application
Money
Reserves & 22541.49 25778.22 31172.64 29229.68 31208.48 35722.99 40955.07 47283.92 52271.94 61720.25
Surplus
TOTAL 26814.97 30051.70 35446.12 33503.16 35481.96 39996.47 45228.55 51557.40 56545.42 65993.73
LOAN FUNDS
Short-Term 53.88 53.88 53.88 53.88 53.88 53.88 53.88 53.88 53.88 -
Loan Interest
Funds Employed 53.88 53.88 53.88 53.88 53.88 53.88 53.88 53.88 53.88 -
TOTAL 26868.85 30105.58 35500.00 33557.04 35535.84 40050.35 45282.43 51611.28 56599.30 65993.73
APPLICATION OF FUNDS
Fixed Assets 5624.66 5626.25 6225.01 6974.83 7966.36 9590.61 9687.76 9330.15 9974.82 9798.96
Investments 1336.06 1336.51 3361.36 2900.13 2998.03 3173.12 3406.18 3021.36 3002.35 4192.10
Deferred Tax 846.62 1013.83 976.35 971.13 865.80 341.77 990.69 1299.62 1363.43 1553.39
Asset (Net)
Working Capital 19061.51 22128.99 24937.28 22710.95 23705.65 26944.85 31197.80 37960.15 42258.70 50449.28
TOTAL 26868.85 30105.58 35500.00 33557.04 35535.84 40050.35 45282.43 51611.28 56599.30 65993.73
24
Mysore Sales
International Limited
ACCOUNTS (STANDALONE)
FOR THE YEAR ENDED
31ST MARCH 2024
25
26
REVISED INDEPENDENT AUDITORS’ REPORT
To Basis for Qualified Opinion:
The Members of a. The Company, for Export Division, has not
Mysore Sales International Limited conducted physical verification of imported river
sand stock during the year. However, the physical
Revised Report on the Audit of Standalone Financial
verification was conducted in the previous year
Statements
where it was found that there was a shortage
Qualified Opinion
of 16565.002 MT amounting to Rs. 347.87
We have audited the accompanying standalone lakhs. The Company has neither written off the
financial statements of Mysore Sales International inventory found short, nor it has withdrawn the
Limited (“the Company”), which comprise the Balance corresponding provision made earlier in the
Sheet as at March 31, 2024, the Statement of Profit books. Therefore, both the inventories and the
and Loss (including Other Comprehensive Income), provision for inventories are overstated to the
the Statement of Cash Flows and Statement of extent of Rs. 347.87 lakhs.
Changes in Equity for the year ended on that date and
b. For Chit Fund Division, in the absence of (i)
the material accounting policies and other explanatory
proper internal control measures in place; (ii)
information (hereinafter referred to as “the standalone
support for generation of accurate and required
financial statements”).
reports from the software deployed; (iii) any
In our opinion and to the best of our information and defined system and timely closure of books for
according to the explanations given to us, except for offline branches (Shivamoga and Kengeri), there
the effects of the matters described under the “Basis for may be impact on the financial statements which
Qualified Opinion” section of our report the aforesaid are not ascertainable.
standalone financial statements give the information
c. As per Ind AS 109 – Financial Instruments, the
required by the Companies Act, 2013 (“the Act”) in
Company, for Chit Fund Division, carries the
the manner so required and give a true and fair view
impairment loss allowance as per Expected
in conformity with the Indian Accounting Standards
Credit Loss Model (ECL) of Rs. 635.91 lakhs.
prescribed under section 133 of the Act read with the
However, in absence of sufficient information
Companies (Indian Accounting Standards) Rules,
about the accuracy and reasonableness of
2015, as amended, (“Ind AS”) and the accounting
various parameters including the “Probability of
principles generally accepted in India, of the state of
Default (%), Loss Given Default (%) and the basis
affairs of the Company as at March 31, 2024, and the
of classification of financial assets based on the
profit including other comprehensive income, its cash
significant increase in credit risk and consequently
flows and changes in equity for the year ended on that
determination of the 12 months ECL and lifetime
date.
ECL, we are unable to evaluate and comment
We have issued an Audit Report dated 27thJune on adequacy of ECL. The Company has not
2024 (the original report) at Bangalore on the financial made necessary disclosure required by Ind AS
statements as adopted by the Board of Directors on 1 - Presentation of Financial Statements for this
even date. Pursuant to the observations of Comptroller departure.
and Auditor general of India under Section 143(6)(a)
d. The Company, for Tours and Travel Division, has
of the Companies Act, 2013, we have revised the said
not provided for the doubtful advances to Nishi
Audit Report. The revised report has no impact on
Forex and Leisure Limited for Rs 169.16 Lakhs.
the reported figures in the financial statements of the
Non provision for this doubtful advance has
Company except for clause (d) under paragraph Basis
resulted into overstatement of profit for the period
for Qualified Opinion. This audit report supersedes
and overstatement of Advances to supplier by
the original report which has been suitable revised
Rs.169.16 Lakhs.
to consider observations of Comptroller and Auditor
General of India
27
e. The interest liability on MSME trade payables Emphasis of Matters
for delayed payment has to be provided as per a. We draw attention to note no. 42 (iv) to the
MSME Act, 2006. However, the Company has standalone financial statements wherein it
not provided interest for the period of delay in is mentioned that with respect to “Amount
making payments to MSME trade payables as Recoverable from Prized Subscribers” amounting
the Company has not received any interest claim to Rs. 31618.08 lakhs classified as “Loans under
by MSME vendors. In absence of information, we Financial Assets”, measured at amortized cost,
could not quantify such interest amount. carrying amount in net of Rs. 1196.65 lakhs being
f. The Company has recognised long term leases the unreconciled balances, the impact of which
as per Ind AS 116 during the year which were on the financial statements is not ascertainable.
considered as short-term leases up to the end b. We draw attention to note no. 42(ix) to the
of previous financial year. Due to this, addition standalone financial statements wherein it is
to Right of Use Assets (ROU Assets) and Lease mentioned that the Company has received certain
Liabilities are higher by Rs. 1011.20 lakhs, advances for the tours and travels services. The
Depreciation on ROU Assets is higher by Rs. Company must reconcile the accounts of Rajiv
326.34 lakhs and Interest on Lease Liabilities Gandhi University of Health Sciences, (RGUHS)
is higher by Rs. 49.18 lakhs. The Company has Karnataka and the corresponding service
not complied with the disclosure requirement providers. The Company has also made supplies
required by Ind AS 8 - Accounting Policies, to RGUHS in Papers Division. Since disputes
Changes in Accounting Estimates and Errors for arose between the Company and RGUHS and
these changes in accounting estimates. with the corresponding service providers, the
g. The disclosure in Note 42 (viii) to the financials receivables and payables accounts of RGUHS
doesn’t include complete details on accounting and service providers need to be reconciled.
done by the Company. The Company has The Company has made a provision for bad and
recognized the recoverable from Athitheya doubtful debt to the extent of Rs. 200 lakhs in this
Kshema Hotels Pvt Ltd (“the tenant”) without regard. The potential effect of the same on the
recognizing rental income of Rs 245.05 Lakhs financial statements is not ascertainable in the
and provided for the provision on the same absence of reconciliation statements.
without charging the provision in other expenses
c. We draw attention to note no. 40(vii) to the
by Rs 245.05 Lakhs. The entries are passed
standalone financial statements wherein it is
without routing through profit and loss account.
mentioned that “Refund claim receivable” on
There is no impact to the financial profit, as the
account of GST RCM on Transport is Rs. 45.98
Company considers the receivable as doubtful.
lakhs whereas the actual claim up to December
h. The Company has not recognised rent 2020 was Rs. 121.42 lakhs. The difference of Rs.
income for the warehouse in Mysore leased to 75.44 lakhs were charged to the Statement of
NestwellConstructions Private Limited(“Lessee”) Profit and Loss in earlier years. The Company’s
for the period from December 2021 till March
claim was rejected by Assistant Commissioner
2024 because of dispute with the Lessee. The
of Central Tax, North Division-3, Bengaluru.
Company has not made suitable disclosure of
Subsequently, the appeal filed by the Company
this dispute and amount recoverable from the
lessee on account of the dispute in the financial was also rejected at Additional Commissioner
statements. Rental income for the Lessee for the of GST, Appeals-II, Bengaluru. Further liability
year ending March 31, 2024 is Rs 41.73 Lakhs on GST RCM on Transport for the period from
has not been accounted in Statement of Profit January 2021 to March 2024 is Rs. 319.51 lakhs
and Loss.There is no impact to the financial which has not been discharged by the Company.
profit, as the Company considers the receivable No provision has been made for the refund
as doubtful. receivables as well as additional liability since the
28
Company is legally advised that the chances of our knowledge obtained during the course of our audit
favourable outcome are high. or otherwise appears to be materially misstated.
d. We draw attention to note no. 42(ii) to the If, based on the work we have performed, we conclude
standalone financial statements which describes that there is a material misstatement of this other
the uncertainty related to the payables and information, we are required to report that fact. We
receivables outstanding balances. In the absence have nothing to report in this regard. When we read the
of balance confirmations and reconciliations, Directors’ Report, if we conclude that there is a material
the financial impact on standalone financial misstatement therein, we are required to communicate
statements is not ascertainable. the matter to those charged with governance.
Our opinion is not qualified in respect of this Responsibilities of Management and Those
matter. Charged with Governance for the Standalone
We conducted our audit of the financial statements Financial Statements
in accordance with the Standards on Auditing The Company’s Board of Directors is responsible for
specified under section 143(10) of the Act (SAs). Our the matters stated in Section 134(5) of the Act with
responsibilities under those Standards are further respect to the preparation of these standalone financial
described in the Auditor’s Responsibilities for the statements that give a true and fair view of the financial
Audit of the Financial statements section of our report. position, financial performance and cash flows of the
We are independent of the Company in accordance company in accordance with the accounting principles
with the Code of Ethics issued by the Institute of generally accepted in India, including the Accounting
Chartered Accountants of India (ICAI) together with Standards specified under Section 133 of the Act. This
the independence requirements that are relevant responsibility also includes maintenance of adequate
to our audit of the financial statements under the accounting records in accordance with the provisions
provisions of the Act and the Rules made thereunder, of the Act for safeguarding the assets of the company
and we have fulfilled our other ethical responsibilities and for preventing and detecting frauds and other
in accordance with these requirements and the ICAI’s irregularities; selection and application of appropriate
Code of Ethics. We believe that the audit evidence we accounting policies; making judgments and estimates
have obtained is sufficient and appropriate to provide that are reasonable and prudent; and design,
a basis for our qualified opinion on the standalone implementation and maintenance of adequate internal
financial statements. financial controls, that were operating effectively
Information Other than the Standalone Financial for ensuring the accuracy and completeness of the
Statements and Auditors’ Report Thereon accounting records, relevant to the preparation and
presentation of the standalone financial statements
The Company’s Board of Directors is responsible for
that give a true and fair view and are free from material
the other information. The other information comprises
misstatement, whether due to fraud or error.
the information included in the Board’s Report including
Annexures to Board’s Report but does not include the In preparing the standalone financial statements, the
financial statements and our auditors’ report thereon. Board of Directors is responsible for assessing the
The Boards’ Report is expected to be made available Company’s ability to continue as a going concern,
to us after the date of this auditor’ report. disclosing, as applicable, matters related to going
concern and using the going concern basis of
Our opinion on the financial statements does not cover
accounting unless the Board of Directors either intends
the other information and we do not express any form
to liquidate the Company or to cease operations, or
of assurance conclusion thereon.
has no realistic alternative but to do so.
In connection with our audit of the financial statements,
The Board of Directors are also responsible for
our responsibility is to read the other information and,
overseeing the company’s financial reporting process.
in doing so, consider whether the other information is
materially inconsistent with the financial statements, or
29
Auditor’s Responsibilities for the Audit of the obtained, whether a material uncertainty exists
Standalone Financial Statements related to events or conditions that may cast
Our objectives are to obtain reasonable assurance significant doubt on the Company’s ability to
about whether the standalone financial statements as continue as a going concern. If we conclude that
a whole are free from material misstatement, whether a material uncertainty exists, we are required
due to fraud or error, and to issue an auditor’s report to draw attention in our auditor’s report to the
that includes our opinion. Reasonable assurance is a related disclosures in the standalone financial
high level of assurance, but is not a guarantee that statements or, if such disclosures are inadequate,
an audit conducted in accordance with Standards on to modify our opinion. Our conclusions are based
Auditing will always detect a material misstatement on the audit evidence obtained up to the date of
when it exists. Misstatements can arise from fraud our auditor’s report. However, future events or
or error and are considered material if, individually or conditions may cause the Company to cease to
in aggregate, they could reasonably be expected to continue as a going concern.
influence the economic decisions of users taken on the • Evaluate the overall presentation, structure and
basis of these standalone financial statements. content of the standalone financial statements,
As part of an audit in accordance with Standards on including the disclosures, and whether the
Auditing (SAs), we exercise professional judgment standalone financial statements represent the
and maintain professional skepticism throughout the underlying transactions and events in a manner
audit. We also: that achieves fair presentation.
• Identify and assess the risks of material Materiality is the magnitude of misstatements in the
misstatement of the standalone financial financial statements that, individually or in aggregate,
statements, whether due to fraud or error, design makes it probable that the economic decisions of
and perform audit procedures responsive to those a reasonably knowledgeable user of the financial
risks, and obtain audit evidence that is sufficient statements may be influenced. We consider quantitative
and appropriate to provide a basis for our opinion. materiality and qualitative factors in (i) planning the
The risk of not detecting a material misstatement scope of our audit work and in evaluating the results of
resulting from fraud is higher than for one resulting our work; and (ii) to evaluate the effect of any identified
from error, as fraud may involve collusion, forgery, misstatements in the financial statements.
intentional omissions, misrepresentations, or the We communicate with those charged with governance
override of internal control. regarding, among other matters, the planned scope
• Obtain an understanding of internal financial and timing of the audit and significant audit findings,
control relevant to the audit in order to design including any significant deficiencies in internal control
audit procedures that are appropriate in the that we identify during our audit.
circumstances. Under section 143(3)(i) of the We also provide those charged with governance with
Act, we are also responsible for expressing our a statement that we have complied with relevant
opinion on whether the Company has adequate ethical requirements regarding independence, and
internal financial controls with reference to to communicate with them all relationships and other
matters that may reasonably be thought to bear on
standalone financial statements in place and the
our independence, and where applicable, related
operating effectiveness of such controls.
safeguards.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of Other Matters
accounting estimates and related disclosures The financial statements of the Company for the year
made by the management. ended March 31, 2023 were audited by another auditor
• Conclude on the appropriateness of whose revised report dated December 27, 2023
management’s use of the going concern basis expressed a modified opinion on those statements.
of accounting and, based on the audit evidence Our opinion is not qualified in respect of this matter
30
Report on Other Legal and Regulatory Requirements 463 (E) dated 05.06.2015 issued by the
1. As required by Section 143 (3) of the Act, based Ministry of Corporate Affairs.
on our audit we report that: (h) With respect to the other matters to be
a) We have sought and obtained all the included in the Auditor’s Report in accordance
information and explanations which to with Rule 11 of the Companies (Audit and
the best of our knowledge and belief were Auditors) Rules, 2014, in our opinion and to
necessary for the purposes of our audit. the best of our information and according to
the explanations given to us:
(b) Except for the possible effects of the matters
described in the “Basis for Qualified Opinion” i. The Company has disclosed the impact
paragraph above, in our opinion proper books of pending litigations on its standalone
of accounts as required by law have been financial statements in note no. 40(3) of the
kept by the company so far as it appears standalone financial statements.
from our examination of those books. ii. The Company did not have any long-term
(c) The Balance Sheet, the Statement of Profit contracts including derivative contracts for
and Loss including other comprehensive which there were any material foreseeable
income, the Cash Flow Statement and losses.
Statement of Changes in Equity dealt with by iii. There were no amounts which were required
this report are in agreement with the books of to be transferred to the Investor Education
account. and Protection Fund by the Company.
(d) Except for the possible effects of the iv. 1. The management has represented that, to
matters described in the “Basis for Qualified the best of its knowledge and belief, no funds
Opinion” paragraph above, in our opinion, have been advanced or loaned or invested
the aforesaid standalone Ind AS financial (either from borrowed funds or share premium
statement comply with the Accounting or any other sources or kind of funds) by
Standards specified under Section 133 of the the Company to or in any other person(s)
Act. or entity(ies), including foreign entities
(e) Being a government company, reporting on (“Intermediaries”), with the understanding,
the matter of disqualification of Directors of whether recorded in writing or otherwise,
the Company under Section 164(2) of the Act that the Intermediary shall, whether directly
is not applicable in terms of Notification no. or indirectly lend or invest in other persons or
G.S.R. 463 (E) dated 05.06.2015 issued by entities identified in any manner whatsoever
Ministry of Corporate Affairs. by or on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee,
(f) With respect to the adequacy of the internal
security or the like on behalf of the Ultimate
financial controls over financial reporting of
Beneficiaries.
the Company and the operating effectiveness
of such controls, refer to our separate Report 2. The management has represented that, to
in “Annexure A”. Our report expresses the best of its knowledge and belief, no funds
anQualified opinion on the adequacy and have been received by the Company from any
operating effectiveness of the Company’s person(s) or entity(ies), including foreign entities
internal financial controls over financial (“Funding Parties”), with the understanding,
reporting. whether recorded in writing or otherwise, that
the Company shall, directly or indirectly, lend or
(g) Being a government company, reporting
invest in other persons or entities identified in any
on the matters of managerial remuneration
manner whatsoever by or on behalf of the Funding
under Section 197(16) of the Act is not
Party (“Ultimate Beneficiaries”) or provide any
applicable in terms of Notification no. G.S.R.
guarantee, security or the like on behalf of the
31
Ultimate Beneficiaries; and on preservation of audit trail as per the statutory
3. Based on the audit procedures conducted by requirements for record retention is not applicable
us, nothing has come to our notice that has for the year ended March 31, 2024.
caused us to believe that the representations 2. As required by the Companies (Auditor’s
under sub-clause (i) and (ii) contain any material Report) Order, 2020 (“the Order”) issued by
misstatements. the Central Government in terms of Section
v. The dividend declared or paid by the Company 143(11) of the Act, we give in “Annexure
during the year is in accordance with Section 123 B” a statement on the matters specified in
of the Companies Act, 2013. paragraphs 3 and 4 of the Order.
vi. Based on our examination, which included test 3. As required under section 143(5) of the
checks, the Company has used accounting Act, which is applicable to the Company,
software for maintaining its books of account findings on the direction issues by Comptroller
which have a feature of recording audit trail facility and Auditor General of India is given in
and the audit trail feature has been operating “Annexure C”.
throughout the year for all relevant transactions For Sorab S. Engineer & Co.
recorded in the software in respect of Beverages Chartered Accountants
division. Further, during the course of our audit Firm Registration No. 110417W
we did not come across any instance of the audit Sd/-
trail feature being tampered with. In case of other CA. Chokshi Shreyas B.
divisions, the accounting software does not have PARTNER
the audit trail feature. Membership No. 100892
As proviso to Rule 3(1) of the Companies UDIN:24100892BJZXRJ4530
(Accounts) Rules, 2014 is applicable from April Place: Bengaluru
1, 2023, reporting under Rule 11 (g) of the
Date: Sept 6, 2024
Companies (Audit and Auditors) Rules, 2014
32
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Audit of Internal Financial Controls Over Financial
Legal and Regulatory Requirements’ section of our Reporting (the “Guidance Note”) issued by the Institute
report to the Members of Mysore Sales International of Chartered Accountants of India and the Standards
Limited of even date) on Auditing prescribed under Section 143(10) of the
Report on the Internal Financial Controls Over Financial Companies Act, 2013, to the extent applicable to an
Reporting under Clause (i) of Sub-section 3 of Section audit of internal financial controls. Those Standards
143 of the Companies Act, 2013 (“the Act”) and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to
Report on the Internal Financial Controls under Clause
obtain reasonable assurance about whether adequate
(i) of Sub-section 3 of Section 143 of the Companies
internal financial controls over financial reporting
Act, 2013 (“the Act”)
was established and maintained and if such controls
We have audited the Internal Financial Controls over operated effectively in all material respects.
Financial Reporting of Mysore Sales International
Our audit involves performing procedures to obtain
Limited (“the Company”) as of March 31, 2024 in
audit evidence about the adequacy of the internal
conjunction with our audit of the standalone financial
financial controls system over financial reporting and
statements of the Company for the year ended on that
their operating effectiveness. Our audit of internal
date.
financial controls over financial reporting included
Management’s Responsibility for Internal Financial obtaining an understanding of internal financial
Controls controls over financial reporting, assessing the risk that
The Board of Directors of the Company is responsible a material weakness exists, and testing and evaluating
for establishing and maintaining internal financial the design and operating effectiveness of internal
controls based on the internal control over financial control based on the assessed risk. The procedures
reporting criteria established by the Company selected depend on the auditor’s judgement, including
considering the essential components of internal the assessment of the risks of material misstatement of
control stated in the Guidance Note on Audit of Internal the financial statements, whether due to fraud or error.
Financial Controls Over Financial Reporting issued by We believe that the audit evidence we have obtained,
the Institute of Chartered Accountants of India. These is sufficient and appropriate to provide a basis for our
responsibilities include the design, implementation and audit opinion on the internal financial controls system
maintenance of adequate internal financial controls that over financial reporting of the Company.
were operating effectively for ensuring the orderly and
Meaning of Internal Financial Controls Over
efficient conduct of its business, including adherence
Financial Reporting
to respective company’s policies, the safeguarding
of its assets, the prevention and detection of frauds A company’s internal financial control over financial
and errors, the accuracy and completeness of the reporting is a process designed to provide reasonable
accounting records, and the timely preparation of assurance regarding the reliability of financial reporting
reliable financial information, as required under the and the preparation of financial statements for external
Companies Act, 2013. purposes in accordance with generally accepted
accounting principles. A company’s internal financial
Auditor’s Responsibility
control over financial reporting includes those policies
Our responsibility is to express an opinion on the and procedures that (1) pertain to the maintenance of
internal financial controls over financial reporting of records that, in reasonable detail, accurately and fairly
the Company based on our audit. We conducted reflect the transactions and dispositions of the assets
our audit in accordance with the Guidance Note on of the company; (2) provide reasonable assurance
33
that transactions are recorded as necessary to permit ECL and lifetime ECL which may have
preparation of financial statements in accordance financial impact on the standalone financial
with generally accepted accounting principles, and statements.
that receipts and expenditures of the company are 3. The Company has the unreconciled balances
being made only in accordance with authorisations of of subscribers amounting to Rs. 1196.65
management and directors of the company; and (3) lakhs which may have financial impact on the
provide reasonable assurance regarding prevention standalone financial statements.
or timely detection of unauthorised acquisition, use, or
4. The division does not have proper internal
disposition of the company’s assets that could have a
controls to identify the surplus funds and
material effect on the financial statements.
have not complied with the requirements of
Limitations of Internal Financial Controls Over investing the surplus funds as per Circular
Financial Reporting No. FD 91 TAR 2022 dated 02.07.2022 issued
Because of the inherent limitations of internal by Finance Department of Government of
financial controls over financial reporting, including Karnataka
the possibility of collusion or improper management b. The financial and operating controls established
override of controls, material misstatements due to by the Company for the prompt, periodic and up-
error or fraud may occur and not be detected. Also, to-date reconciliation of payables and receivables
projections of any evaluation of the internal financial are not working effectively, which may have
controls over financial reporting to future periods are a financial impact on standalone financial
subject to the risk that the internal financial control over statements.
financial reporting may become inadequate because of
c. The Company does not have an integrated ERP
changes in conditions, or that the degree of compliance
system. Different software packages used by the
with the policies or procedures may deteriorate.
Company are interfaced through software links or
Basis for Qualified Opinion manual intervention leaving gaps between them.
According to the information and explanations given This could potentially result into impaired financial
to us and based on our audit, the following material reporting. Also the majority of software does not
weakness have been identified as at March 31, 2024. have an audit trail feature except for Beverage
a. Chit Fund Division: division which could impact the financials.
1. In the absence of (i) proper internal control d. The Company has not provided the physical
measures in place; (ii) support for generation verification report of the property, plant and
of accurate and required reports from the equipment (PPE). This could potentially result in
software deployed; (iii) any defined system theunderstatement/overstatement of the balances
and timely closure of books for offline of PPE, inaccurate depreciation provision and
branches (Shivamoga and Kengeri), there assessment of impairment.
may be financial impact on the standalone A ‘material weakness’ is a deficiency, or a combination
financial statements. of deficiencies, in internal financial control over financial
2. The Company does not have sufficient reporting, such that there is a reasonable possibility
information about the accuracy and that a material misstatement of the company’s annual
reasonableness of various parameters or interim financial statements will not be prevented or
including the “Probability of Default (%), detected on a timely basis.
Loss Given Default (%) and the basis of Qualified Opinion
classification of financial assets based on In our opinion, except for the possible effects of
the significant increase in credit risk and the material weakness described above on the
consequently determination of the 12 months achievement of the objectives of the control criteria,
34
the Company has maintained, in all material respects, weakness has affected our opinion on the standalone
adequate internal financial controls over financial financial statements of the Company and we have
reporting and such internal financial controls over issued a qualified opinion on the standalone financial
financial reporting were operating effectively as of statements.
March 31, 2024, based on the internal control over For Sorab S. Engineer & Co.
financial reporting criteria established by the Company Chartered Accountants
considering the essential components of internal Firm Registration No. 110417W
control stated in the Guidance Note on Audit of Internal Sd/-
Financial Controls Over Financial Reporting issued by CA. Chokshi Shreyas B.
the Institute of Chartered Accountants of India. PARTNER
We have considered the material weakness identified Membership No. 100892
and reported above in determining the nature,
timing, and extent of audit tests applied in our audit
UDIN:24100892BJZXRJ4530
of standalone financial statements of the Company
Place: Bengaluru
for the year ended March 31, 2024 and the material
Date: Sept 6, 2024
35
ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section
of our report to the Members of Mysore Sales International Limitedof even date)
i. In respect of the Company’s fixed assets: as at March 31, 2024, for holding any benami
property under the Benami Transactions
a) (1) The Company has maintained proper
(Prohibition) Act, 1988 (45 of 1988) as
records showing full particulars, including
(amended in 2016) and rules thereunder.
quantitative details and situation of Property,
Plant and Equipment. ii. In respect of Company’s Inventories:
(2) The Company has maintained proper a) As explained to us, physical verification of
records showing full particulars of intangible inventory has been conducted at reasonable
assets. intervals by the management and in our
opinion the coverage and procedure of such
b) The Company has not provided the physical
verification is appropriate, and no material
verification report of fixed assets conducted
discrepancies were noticed on verification
during the year. In the absence of physical
between the physical stocks and the book
verification report, we are unable to comment
records which were 10% or more in the
on the discrepancy, if any, identified during
aggregate for each class of inventory, and
the physical verification.
the same have been properly dealt with in
c) With respect to immovable properties (other the books of account except for (i) inventory
than properties where the Company is the of imported sand which are not physically
lessee and the lease agreements are duly verified during the year
executed in favour of the Company) disclosed
b) According to the information and explanations
in the standalone financial statements
given to us, the Company has not been
included in property, plant and equipment and
sanctioned any working capital limits from
capital work-in-progress, according to the
Bank or Financials Institution on the basis
information and explanations given to us and
of security of current assets at any point of
based on the examination of the registered
time during the year, hence reporting under
sale deed/ transfer deed / conveyance deed
clause 3(ii)b of the order is not applicable.
provided to us, we report that, the title deeds
of such immovable properties are held in iii. The Company has not made investments in,
the name of the Company as at the balance provided any guarantee or security and granted
sheet date. loans or advances in the nature of loans, secured
or unsecured, to companies, firms, Limited
d) According to the information and explanations
Liability Partnerships or any other parties during
provided to us and on the basis of our
the year. Accordingly reporting under clause 3(iii)
examination of the records of the Company,
of the order is not applicable.
the Company has not revalued any of its
property, plant and equipment or intangible iv. According to the information and explanations
assets during the year. given to us and on the basis of our examination
of the records,the Company has not advanced
e) According to the information and explanation
any loan or given any guarantee or provided any
provided to us and on the basis of our
security or made any investment covered under
examination of the records of the Company,
section 185 and 186 of the Act. Accordingly,
no proceedings have been initiated during
clause 3(iv) of the Order is not applicable.
the year or are pending against the Company
36
v. In our opinion and according to the information vi. According to information and explanations given
and explanations given to us, the Company has to us, maintenance of cost records has not been
not accepted any deposits from the public within specified by the Central Government under
the meaning of Sections 73 to 76 or any other section 148(1) of the Act for the activities of the
relevant provisions of the Act and rules framed Company except for Paper Division. However,
thereunder. No order has been passed by the the Company has not made and maintained the
Company Law Board or National Company Law cost records for paper division.
Tribunal or Reserve Bank of India or any Court or
any other Tribunal.
vii. According to the information and explanations given to us, in respect of statutory dues:
a) The Company is generally regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Employees’ State Insurance, Income Tax, Custom Duty, Goods and
Service Tax, Cess and other material statutory dues applicable to it. According to the information and
explanations given to us, no undisputed amounts payable in respect of outstanding statutory dues
were in arrears as at March 31, 2024 for a period of more than six months from the date they became
payable except for the following:
Amount Period to which the
Name of the Act Nature of dues
Rs. in Lakhs amount relates
The Building and Other Construction Workers’ Workers’ Welfare Cess 0.69 2013-14
Welfare Cess Act, 1996
Goods and Service Tax Act, 2016 GST 40.37 Up to Sep 23
TDS on GST 0.59 2022-23
The Maharashtra State Tax on Professional, Professional Tax 0.06 2021-22
Trades, Callings and Employments Act, 1975
Income Tax Act, 1961 TDS 0.03 2022-23
b) According to the information and explanation given to us, there are no statutory dues referred to above
in sub clause (a) which have not been deposited on account of any dispute except for the below:
Name of the Act Nature of Amount Period to which Amount Forum Where Dispute is
dues Rs. in the dispute paid Rs. in pending
Lakhs relates Lakhs
Finance Act, Service Tax 48.43 2005-06, 2006-07 10.00 Customs, Excise and
1994 19.83 2002-03, 2003-04 19.83 Service Tax Appellate
Tribunal
37.40 2003-04, 2005-06 37.40
36.14 2007-08, 2008-09 10.00
48.00 2013-14, 2014-15 9.00
18.10 2015-16 5.43
23.71 2016-17 2.37
Income Tax Act, Income Tax 91,288.46 AY 2018-19 - Assessing Officer/
1961 0.10 AY 2020-21 - National Faceless
Assessment Centre
749.86 AY 2022-23 -
37
viii. According to the information and explanations Division and Pharmacy Division during the
given to us and on the basis of our examination year amounting to Rs. 34.28 Lakhs and Rs.
of the records of the Company, the Company has 23.34 Lakhs respectively, of which Rs. Nil
not surrendered or disclosed any transactions, and Rs. 17.63 Lakhs respectively have been
previously unrecorded as income in the books recovered. The Company has filed the First
of account, in the tax assessments under the Information Report, and the proceedings are
Income-tax Act, 1961 as income during the year. in progress. The Company has also made
ix. In our opinion and according to the information provision for an equal amount in respect of
and explanations givens to us, the same. Excepting this, no fraud on or by
the Company has been noticed or reported
(a) The Company has not taken any loans or
during the year under report.
borrowed funds from any lenders. Hence,
b) No report under sub-section 12 of section
reporting under clause 3(ix) is not applicable.
143 of the Companies Act 2013 has been
(b) The Company has not been declared willful
filed in Form ADT-4 as prescribed under rule
defaulter by any bank, financial institution or
13 of Companies (Audit and Auditors) Rules,
any other lender.
2014 with the Central Government, during
(c) The Company has not taken any term loans the year.
and hence, reporting under clause 3(ix)(c) of c) According to the information and explanations
the Order is not applicable. given to us, the Company is in the process
(d) The Company did not raise any funds during of establishing whistle blower mechanism.
the year. Accordingly, reporting under clause However, the Company has not received any
3(ix)(d) of the Order is not applicable. informal complaints during the year.
(e) The Company has not taken any funds from xii. The Company is not a Nidhi Company. Hence
any entity or person on account of or to meet reporting under clause 3 (xii) of the Order is not
the obligations of its subsidiaries, associates applicable.
or joint ventures. xiii. According to the information and explanations
(f) The Company has not raised any loans given to us, all the transactions with the related
during the year on the pledge of securities parties are in compliance with Section 177 and
held in its subsidiaries, joint ventures or 188 of the Act, wherever applicable and the
associate companies. details have been disclosed as required by the
applicable accounting standards.
x. In our opinion and according to the information
and explanations given to us, the Company has xiv. a) Based on information and explanations
not raised funds by way of initial public offer or provided to us and our audit procedures, in
further public offer (including debt instruments) our opinion, the Company has an internal audit
or preferential allotment or private placement of system commensurate with the size and
shares or convertible debentures (fully, partially nature of its business.
or optionally convertible) during the year. b) We have considered the internal audit reports
Accordingly, reporting under clause 3(x) of the issued to the Company during the year and
Order is not applicable. till date, for the period under the audit.
xi. In respect of fraud by the Company or on the xv. In our opinion and according to the information
Company: and explanations given to us, the Company has
not entered into any non-cash transactions with
a) According to the information and
its directors or persons connected to its directors
explanations given to us, the Company
and hence, provisions of Section 192 of the
has noticed misappropriation of funds by
Companies Act, 2013 are not applicable to the
outsourced employees of the Chit Fund
Company.
38
xvi. In our opinion and according to the information assumptions, nothing has come to our attention,
and explanations given to us: which causes us to believe that any material
a) The Company is not required to be registered uncertainty exists as on the date of the audit
under Section 45-IA of the Reserve Bank report that the Company is not capable of meeting
of India Act, 1934. Hence reporting under its liabilities existing at the date of balance sheet
clause 3(xvi)(a) of the Order is not applicable. as and when they fall due within a period of one
year from the balance sheet date. We, however,
b) The Company has not conducted any Non-
state that this is not an assurance as to the future
Banking Financial or Housing Finance
viability of the Company. We further state that our
activities therefore the Company is not
reporting is based on the facts up to the date of
required to be registered under Section 45-
the audit report and we neither give any guarantee
IA of the Reserve Bank of India Act, 1934.
nor any assurance that all liabilities falling due
Hence reporting under clause 3(xvi)(b) of the
within a period of one year from the balance sheet
Order is not applicable.
date, will get discharged by the Company as and
c) The Company is not a Core Investment when they fall due.
Company (CIC) as defined in the regulations
xx. In respect of the Company’s Corporate Social
made by the Reserve Bank of India. Hence
Responsibility (CSR):
reporting under clause 3(xvi)(c) of the Order
is not applicable. a) There is no unspent amount under sub-section
(5) of Section 135 of the Companies Act, 2013 in
d) There is no core investment company within
respect of other than ongoing projects.
the Group (as defined in the Core Investment
Companies (Reserve Bank) Directions, b) The Company has fully spent the required
2016). Hence reporting under clause 3(xvi) amount towards Corporate Social Responsibility
(d) of the Order is not applicable. (CSR) and there is no unspent CSR amount for
the year required a transfer to a Fund specified
xvii. According to the information and explanations
in Schedule VII to the Companies Act or special
given to us, the Company has not incurred cash
account in compliance with the provision of sub-
losses in the current and immediately preceding
section (6) of Section 135 of the Companies Act,
financial year.
2013. Accordingly, clauses 3(xx)(a) and 3(xx)(b)
xviii. According to the information and explanations of the Order are not applicable.
given to us, there has been no resignation of the
For Sorab S. Engineer & Co.
statutory auditors during the year. Chartered Accountants
xix. According to the information and explanations Firm Registration No. 110417W
given to us and on the basis of the financial Sd/-
CA. Chokshi Shreyas B.
ratios, ageing and expected dates of realisation
PARTNER
of financial assets and payment of financial Membership No. 100892
liabilities, other information accompanying the
financial statements, our knowledge of the Board UDIN:24100892BJZXRJ4530
of Directors and management plans and based
Place: Bengaluru
on our examination of the evidence supporting the
Date: Sept 6, 2024
39
ANNEXURE ‘C’ TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 3 under ‘Report on Other Legal and Regulatory Requirements’
section of our report to the Members of Mysore Sales International Limitedof even date)
Report under section 143 (5) of the Companies Act, 2013 (“the Act”) relating to the direction issues by the
Comptroller and Auditor General of India
Sl.
Directions Compliance
No.
1 Whether the company has system in place to Yes. The Company do have an IT system in place. It
process all the accounting transactions through uses Tally ERP9 for consolidation and reporting.
IT system? If yes, the implications of processing
However, Beverage, Paper divisions and Branch
of accounting transactions outside IT system
Offices use different accounting software and the same
on the integrity of the accounts along with the
is not integrated with Tally ERP9. These divisions
financial implications, if any, may be stated.
extract Trial Balance from respective software and the
same is entered manually into the Tally ERP9 software
for consolidation and reporting. The transaction details
do remain with that specific accounting software.
The chit fund division maintains data in different software

(not in Tally ERP9) except for 2 branches where books
are maintained manually. The trial balances of the
above 2 branches are consolidated manually with the
trial balance extracted from the chit fund software. Post
this consolidation at chit fund division, the trial balance
is entered manually into the Tally ERP9 software for
consolidation and reporting.
2 Whether there is any restructuring of an The Company has not availed any loan facilities.
existing loan or cases of waiver/write off to
debts/loans/interest etc. made by a lender to
the company due to the company’s inability to
repay the loan? If yes, the financial impact may
be stated. Whether such cases are properly
accounted for? (In case, lender is a Government
Company, then this direction is also applicable
for statutory auditor of lender company).
3 Whether funds (grants/subsidy etc.) received/ The Company has not received any funds (grants/
receivable for specific schemes from Central/ subsidy etc.) during the year from Central/State
State agencies were properly accounted for/ agencies. However, the Company had received Grant
utilized as per its term and conditions? List the under ASIDE Assistance in January 2007 of which Rs.
cases of deviation. 247.05 lakhs are unutilized at the year end.
40
Additional Company Specific Directions:
(a) Whether the auditor has verified all the items Refer Annexure-I. No major non-compliances were
with regards to Cash and Bank balances observed during the course of our audit.
enclosed at Annexure-I. In case of specific
non-compliances, whether the same has been
reported?
(b) Whether the Company has an effective system The Company do have an effective system in place to
to deal with misappropriation/fraud cases deal with misappropriation/fraud cases. However, in
and whether the losses, if any, were properly respect of misappropriation during the year, we have
accounted for in the books of account? It may obtained the details and our comments are given
also be commented upon as to whether the in Clause xi of Annexure B to Independent Auditors
Company has any unexplained balances and Report. (CARO 2020).
accounts operated under Suspense head.
The Company do have chit suspense balances
accumulated over past years aggregating to Rs.
1196.65 lakhs. The Company is in the process of
reconciling the data.
(c) Whether the Company has an effective The Company has effective system for recovery of
system for recovery of dues in respect of its dues except in case of paper division and tours and
sales activities and the dues outstanding and travel division. The recovery from the Debtors is not
recoveries there against have been properly done within the credit period stipulated in the invoice in
recorded in the books of accounts? most of the cases.
Based on our test checking and the information and

explanations given to us, we report that the dues
outstanding and recoveries there against have been
properly recorded in the books of accounts. However,
balance confirmation has not been received from most
of the debtors.
41
Annexure-I
S.No. Items in Check list Remarks
1. Whether all Banks Accounts/Fixed Deposits have been Yes
opened with banks/ proper authorization and approvals as
per the aforesaid delegation of powers?
2. Whether there was a periodical system of preparation of Yes
Bank reconciliation statement and whether they were
produced for verification to audit?
3. Whether Bank reconciliation of the Main account and all Yes
subsidiary bank accounts were done?
4. Was the authorisation to operate the bank accounts were No, except that the Managing Director
given to a single signatory? is authorized to operate bank accounts
singly as per delegated authority.
5. Whether the interest for the entire duration of Fixed Yes
Deposits was accounted in the books of accounts?
6. Whether physical verification of cash has taken place Yes
periodically?
7. Whether the cash in hand as shown in the Balance Sheet Yes
tallies with the certificate of physical verification of cash?
8. Is there a register of Fixed Deposits showing amounts, Yes. Fixed deposit register is maintained.
maturity dates, rates of interest and dates for payment of However, the details regarding dates of
interest? payment of interest are not maintained.
9. Is there a follow-up system to ensure that interest on Fixed Yes
Deposits is received on due dates?
10. Is there a follow-up system to ensure that transfer of Yes
matured amount of Fixed Deposits is done without any
delay?
11. Whether bank confirmation statements are obtained Yes
periodically from the banks for all accounts: SB accounts,
Current Accounts and Fixed deposits?
12. Whether confirmations of balances in respect of all bank Yes
balances tally with the Bank statements?
13. Whether Fixed Deposits and interests as per Fixed Deposits Yes, fixed deposits and interests as per
Register tally with the confirmation/certificate issued by the Books of Account are in agreement with
bank? the confirmation/certificate issued by the
banks.
14. Whether the confirmation statements received from banks Yes
are authenticated and in the letter head by the bank?
15. In case of any difference observed in the above check, No difference observed
whether the same was adjusted in the subsequent year?
16. Whether bank balances accounted in the books are in The Company has obtained the
agreement with the external confirmations obtained by the confirmations from the Banks which are
auditors from the banks. in agreement with books of accounts and
the same were verified by us.
17. Whether any of the aforesaid lapses were brought out in No material lapses observed which
the Report of the Internal Financial controls by the Statutory need reporting under Internal Financial
Auditor, if not, whether Audit Enquiry was issued? Controls Report.
Chartered Accountants
Firm Registration No. 110417W
UDIN:24100892BJZXRJ4530 Sd/-
Place: Bengaluru CA. Chokshi Shreyas B.
Date: Sept 6, 2024 PARTNER
Membership No. 100892
42
Replies to the Qualification in Statutory Auditors Report for the year 2023-24
Audit Query Company’s Reply

a. The Company has not conducted physical During the financial year 2021-22 , the company has
verification of imported river sand stock during made provision for entire stock of sand to the extent
the year. However, the physical verification was of Rs. 1871.50 lakhs. The division has not made any
conducted in the previous year where it was transaction since from 2021-22.
found that there was a shortage of 16565.002 MT Since, the inventories are on estimated on volume
amounting to Rs. 347.87 lakhs. The Company has calculation by frustum method. Unless we sell the
neither written off the inventory found short, nor it entire/substantial quantity we will not able to identify
has withdrawn the corresponding provision made the exact shortage.
earlier in the books. Therefore, both the inventories
and the provision for inventories are overstated to
the extent of Rs. 347.87 lakhs.
b. In the absence of (i) proper internal control The Chit Fund division is in the process of introducing
measures in place; (ii) support for generation of new web based software and once the new software
accurate and required reports from the software is implemented the Shivamoga and Kengeri chit
deployed; (iii) any defined system and timely fund branches issues will get solved. The new
closure of books for offline branches (Shivamoga software probably will be implemented during the
and Kengeri), there may be impact on the financial year 2024-25.
statements which are not ascertainable.
c. As per Ind AS 109 – Financial Instruments, the Evaluation of Expected Credit Loss is a very
Company carries the impairment loss allowance lengthy process involving many data points in the
as per Expected Credit Loss Model (ECL) of Rs. assessment.
635.91 lakhs. However, in absence of sufficient Once, the division implement the new software, the
information about the accuracy and reasonableness division can update all the relevant points in the
of various parameters including the “Probability of current financial year 2024-25
Default (%), Loss Given Default (%) and the basis
of classification of financial assets based on the
significant increase in credit risk and consequently
determination of the 12 months ECL and lifetime
ECL, we are unable to evaluate and comment on
adequacy of ECL.
d. The Company has not provided for the doubtful There are tours which was conducted by the party,
advances to Nishi Forex and Leisure Limited for bills for which are not yet received. Additionally, the
Rs 169.16 Lakhs. Non provision for this doubtful division is in the process of exploring legal actions
advance has resulted into overstatement of profit on recovering the outstanding values as on the date
for the period and overstatement of Advances to and hence the same for not considered for provision.
supplier by Rs 169.16 Lakhs. Based on the outcome of legal process, the division
will take corrective action, if required, in current year.
e. The interest liability on MSME trade payables for As the company has not received any interest claims
delayed payment has to be provided as per MSME from MSME vendors, no provision for such interest
Act, 2006. However, the Company has not provided has been made. Without specific information related
interest for the period of delay in making payments to these claims, it is not possible to quantify the
to MSME trade payables as the Company has not interest liability. The company shall take appropriate
received any interest claim by MSME vendors. In action to record the necessary provisions, if required
absence of information, we could not quantify such in the current year 2024-25.
interest amount.
43
f. The Company has recognized long term leases The Company have not disclosed the impact of
as per Ind AS 116 during the year which were changes in estimates in the standalone financial
considered as short-term leases up to the end statement and disclosure of change in Accounting
of previous financial year. Due to this, addition Policies of Depreciation on ROU Assets as per Ind
to Right of Use Assets (ROU Assets) and Lease AS 8 will be reviewed and take suitable action If
Liabilities are higher by Rs. 1011.20 lakhs, required , in the current financial year 2024-25.
Depreciation on ROU Assets is higher by Rs.
326.34 lakhs and Interest on Lease Liabilities is
higher by Rs. 49.18 lakhs. The Company has not
complied with the disclosure requirement required
by Ind AS 8 - Accounting Policies, Changes
in Accounting Estimates and Errors for these
changes in accounting estimates.
g. The disclosure in Note 42 (viii) to the financials The Company has classified the receivable as
doesn’t include complete details on accounting doubtful since financial year ending 31st March 2021.
done by the Company. The Company has The assurance to clear the outstanding arrears as
recognized the recoverable from Athitheya Kshema well as current rental is also conditional on waiver of
Hotels Pvt Ltd (“the tenant”) without recognizing interest for which the board has taken a decision to
rental income of Rs 245.05 Lakhs and provided recover the rent payable with interest. As there will
for the provision on the same without charging the be no impact on the profitability of the company, the
provision in other expenses by Rs 245.05 Lakhs. decision taken by the board, the company ensure to
The entries are passed without routing through make necessary accounting in the current financial
profit and loss account. There is no impact to the year 2024-25
financial profit, as the Company considers the
receivable as doubtful.
h. The Company has not recognized rent income As per the books of accounts, the party have not
for the warehouse in Mysore leased to Nestwell made payments for dues and there is no recognition
Constructions Private Limited (“Lessee”) for of income by Company since financial year ending
the period from December 2021 till March 2024 31st March 2022 to 31st March 2024.
because of dispute with the Lessee. The Company In the absence of probability that the Company will
has not made suitable disclosure of this dispute be able to collect the consideration, the recognition
and amount recoverable from the lessee on of income is deferred.
account of the dispute in the financial statements. The rent receivable from the party will be reviewed
Rental income for the Lessee for the year ending in the current financial year and pas the suitable
March 31, 2024 is Rs 41.73 Lakhs has not been entries.
accounted in Statement of Profit and Loss. There
is no impact to the financial profit, as the Company
considers the receivable as doubtful.
44
45
Mysore Sales International Limited has contributed Rs.2.50 Crore to “Chief Minister Relief Fund” Cheque was handed over to Sri Siddaramaiah,
Hon’ble Chief Minister, Government of Karnataka and Sri M.B. Patil, Hon’ble Minister for Large and Medium Industries and Infrastruture Development
on 25.07.2024 by Sri Puttarangashetty.C Chairman MSIL, Sri H.C. Mahadevappa, Hon’ble Minister for Social Welfare, Sri Selvakumar, IAS Principal
Secretary, Commerace and Industries, Government of Karnataka, Sri Manojkumar, IFS, Managing Director, MSIL and Senior Executives of MSIL
were present during the event.
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION
143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF MYSORE
SALES INTERNATIONAL LIMITED, BANGALORE FOR THE YEAR ENDED 31 MARCH 2024
The preparation of financial statements of Mysore Sales International Limited, Bengaluru for
the year ended 31st March 2024 in accordance with the financial reporting framework prescribed
under the Companies Act, 2013 (Act) is the responsibility of the management of the Company. The
Statutory Auditor appointed by the Comptroller and Auditor General of India under Section 139(5) of
the Act is responsible for expressing opinion on the financial statements under section 143 of the Act
based on independent audit in accordance with the standards on auditing prescribed under section
143(10) of the Act. This is stated to have been done by them vide their Revised Audit Report dated
06 September 2024 which supersedes their earlier Audit Report dated 27 June 2024.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of
the financial statements of Mysore Sales International Limited for the year ended 31st March 2024 under
section 143(6)(a) of the Act. This supplementary audit has been carried out independently without access to
the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and
company personnel and a selective examination of some of the accounting records.
In view of the revision made in the Statutory Auditor’s Report, to give effect to some of my audit
observations raised during supplementary audit, I have no further comments to offer upon or supplement to the
statutory auditor’s report under section 143(6)(b) of the Act.

Comptroller & Auditor General of India
Sd/-
(VIMALENDRA ANAND PATWARDHAN)
Pr. ACCOUNTANT GENERAL (AUDIT-II)
KARNATAKA, BENGALURU
BENGALURU
Date:12.09.2024
46
CIN:U85110KA1966SGC001612
STANDALONE BALANCE SHEET AS AT MARCH 31, 2024
(ALL AMOUNTS IN RS. LAKHS UNLESS OTHERWISE STATED)
As at As at
Particulars Note
March 31, 2024 March 31, 2023
I ASSETS
Non-current assets
(a) Property, plant and equipment 2 4,386.03 4,796.96
(b) Capital work-in-progress 3 533.96 592.83
(c) Investment properties 4 3,729.13 3,847.40
(d) Other intangible assets 5 3.53 -
(e) Right-of-use assets 5A 1,146.31 737.64
(f) Financial assets
(i) Investments 6 4,192.10 3,002.36
(ii) Other financial assets 7 16,206.62 17,851.46
(iii) Non-current bank balances 12 4,256.45 4,170.72
(g) Deferred tax assets (net) 29 1,553.39 1,363.43
(h) Other non-current assets 8 47.78 63.21
(i) Non Current tax asset (net) 8A 3,645.55 4,108.74
Total non-current assets 39,700.85 40,534.75
Current assets
(a) Inventories 9 15,925.70 15,062.08
(b) Financial assets
(i) Trade receivables 10 7,455.19 3,912.11
(ii) Cash and cash equivalents 11 5,635.43 4,181.43
(iii) Bank balances other than (ii) above 12 32,049.10 20,287.90
(iv) Other financial assets 7 16,853.19 10,000.79
(c) Other current assets 8 2,893.04 4,844.71
Total current assets 80,811.65 58,289.02
Asset Held for Sale 30 5.00 5.00
Total assets 120,517.50 98,828.77
47
II. EQUITY AND LIABILITIES
Equity
(a) Equity share capital 13 4,273.48 4,273.48
(b) Other equity 14 61,720.25 52,271.94
Total equity 65,993.73 56,545.42
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Lease Liability 15 438.14 342.75
(ii) Other Financial Liabilities 15 17,539.74 14,983.32
(b) Provisions 16 725.45 742.08
Total non-current liabilities 18,703.33 16,068.15
Current liabilities
(i) Trade payables 18
(a) Total outstanding dues of micro and small enterprises 3,129.12 2,647.61
(b) Total outstanding dues other than above 7,915.05 6,865.45
(ii) Lease Liability 15 725.06 382.77
(iii) Other financial liabilities 15 21,187.34 14,860.52
(b) Other liabilities 17 2,615.67 1,243.52
(c) Provisions 16 248.20 215.33
Total current liabilities 35,820.44 26,215.20
Total equity and liabilities 120,517.50 98,828.77
See accompanying notes forming part of the Standalone Financial Statements
In terms of our report attached For and on behalf of the Board of Directors of
For Sorab S Engineer & Co.
Sd/- Sd/-
Puttarangashetty C Manoj Kumar
CHARTERED ACCOUNTANTS
Chairman Managing Director
Sd/-
DIN: 07745825 DIN: 09379177
PARTNER Sd/- Sd/-
Membership No. 100892 Avinash K R Sridevi B N
Place: Bengaluru Chief Financial Officer Company Secretary
Date : June 27, 2024
48
CIN:U85110KA1966SGC001612
STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2024
(All amounts in Rs. lakhs unless otherwise stated)
Year ended Year ended

Particulars Note
March 31, 2024 March 31, 2023
Continuing operations
Income
Revenue from operations 19 337,796.08 282,531.70
Other income 20 3,764.12 3,061.84
Total income 341,560.20 285,593.54
Expenses
Cost of materials consumed 21 2,936.80 1,766.99
Purchase of Stock-in-trade 22 301,230.30 252,556.61
Changes in inventories of finished goods and stock-in-trade 23 (979.41) (523.75)
Employee benefits expense 24 2,003.83 1,860.32
Finance costs 25 238.52 179.92
Depreciation and amortization expense 26 1,946.94 1,834.44
Impairment losses 28 - -
Other expenses 27 20,881.28 19,839.73
328,258.26 277,514.26
Profit before exceptional items and tax from continuing operations 13,301.94 8,079.28
Exceptional items 41 - -
Profit before tax from continuing operations 13,301.94 8,079.28

Tax expense 29
(a) Current tax 3,286.46 2,020.42
(b) Deferred Tax Charge/(Credit) (491.04) (65.72)
(c) Short provision of tax for earlier years 124.14 35.29
Profit for the year from continuing operations 10,382.38 6,089.29
Discontinued operations 30
Profit/(loss) before tax for the year from discontinued operations 5.32 (2.82)
Tax Income/ (expense) of discontinued operations (1.34) 0.71
Profit/ (loss) for the year from discontinued operations 3.98 (2.11)
Profit for the year 10,386.36 6,087.18
49
Particulars Note
March 31, 2024 March 31, 2023
Other comprehensive income
(a) Items that will not be reclassified to profit or loss
Net (loss)/gain on equity instruments through Other 31 1,189.74 (19.01)
Comprehensive Income
Income tax effect on above 29 (300.79) 4.78
Re-measurement gains/ (losses) on defined benefit plans 31 1.16 26.61

Income tax effect on above 29 (0.29) (6.69)
Other comprehensive income for the year, net of tax 889.82 5.69
Total comprehensive income for the year 11,276.18 6,092.87
Earnings per share (Nominal Value per share Rs. 100/-) 32

-Earnings per share for continuing operations
Basic & Diluted (Rs.) 242.95 142.49
-Earnings per share for discontinued operations

Basic & Diluted (Rs.) 0.09 (0.05)
-Earnings per share for continuing and discontinued

operations
Basic & Diluted (Rs.) 243.04 142.44
Significant accounting policies

Sd/- Sd/-
Sd/-
DIN: 07745825 DIN: 09379177
PARTNER Sd/- Sd/-
50
CIN:U85110KA1966SGC001612
STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2024
Particulars
March 31, 2024 March 31, 2023
A. Cash flow from operating activities
Profit before tax and exceptional items as per Statement of Profit and 13,307.26 8,076.46
Loss Adjustments to reconcile profit before tax to net cash flows:
Dividend (638.58) (280.69)
Excess Provision no longer required (172.35) (131.13)
Interest income (2,196.75) (1,270.77)
Profit on sale of property, plant and equipment 2.94 (6.11)
Rent (597.79) (855.40)
Depreciation and amortisation expenses 1,946.94 1,834.44
Finance costs 238.52 179.92
Allowances for doubtful debts and advances 488.87 245.94
Impairment losses in value of other financial assets - 6.83
Operating profit before working capital changes 12,379.06 7,799.49
Adjustments for changes in working capital :
(Increase)/Decrease in trade receivables (3,367.03) 4,623.26
(Increase)/Decrease in inventories (903.15) (612.21)
(Increase)/Decrease in other assets 1,967.10 1,240.19
(Increase)/Decrease in other financial assets (5,576.27) (4,422.75)
Increase/(Decrease) in trade payables 1,500.67 (594.81)
Increase/(Decrease) in other liabilities 1,318.27 259.19
Increase/(Decrease) in other financial liabilities 8,883.24 3,043.18
Increase/(Decrease) in provisions 17.41 (876.65)
Net Changes in Working Capital 3,840.24 2,659.40
Cash generated from operations 16,219.30 10,458.89
Taxes paid, net (2,948.77) (5,657.81)
Net cash generated from operating activities 13,270.53 4,801.08
B. Cash flow from investing activities

Purchase of Property, Plant & Equipment (including capital advances) (643.67) (2,211.27)
Government Grant - -
Changes in other bank balances not considered as cash and cash equivalents (11,552.99) (7,046.68)
Proceeds from disposal of Property, Plant & Equipment 2.90 27.10
(Purchase) / Sale of investments / Share of profit from Joint arrangements - -
Investment income (Rental income on investment Property) 597.79 855.40
Interest received 1,902.80 878.32
Dividend received 638.58 280.69
Net Cash Flow used in Investing Activities (9,054.59) (7,216.44)
51
C. Cash flow from Financing activities
Finance cost paid (106.74) (76.08)
Payment of lease liabilities (827.33) (631.08)
Dividend paid (1,827.87) (1,105.19)
Dividend Distribution tax paid - -
Net cash used in financing activities (2,761.94) (1,812.35)
Net changes in cash and cash equivalents 1,454.00 (4,227.71)
Cash and cash equivalents as at beginning of the year 4,181.43 8,409.14
Cash and cash equivalents as at end of the year 5,635.43 4,181.43
Reconciliation of cash and cash equivalents

As at As at
Particulars
March 31, 2024 March 31, 2023
Cash and cash equivalents :
Cash & Stamp on hand 2,077.20 1,011.69
Balances with Banks 3,553.99 3,161.94
Remittances in transit 4.24 7.80
Cash and cash equivalents as per Balance Sheet (Refer Note 11) 5,635.43 4,181.43
Cash and cash equivalents as per Cash flow Statement 5,635.43 4,181.43

Disclosure under para 44A as set out in Ind As 7 on cash flow statements under companies (Indian Accounting
Standards) Rules, 2015 (as amended)
Particulars of liabilities arising from financing activity Other changes As at March
31, 2024
Lease Liability 1,265.01 1,265.01
Particulars of liabilities arising from financing activity Other changes As at March

31, 2023
Lease Liability 274.72 274.72
Note: The cash flow statement has been prepared under the indirect method as set out in Indian Accounting
Standard (Ind AS 7) statement of cash flows.
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52
CIN:U85110KA1966SGC001612
STANDALONE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2024
(All amounts in Rs lakhs unless otherwise stated)
Particulars (Note 13) Amount
As at April 1, 2022 4,273.48
Changes in Equity Share Capital during the year -
As at March 31, 2023 4,273.48
As at April 1, 2023 4,273.48
As at March 31, 2024 4,273.48
Reserves and Surplus (Note 14)

Fair Valuation of
Chit Equity Instruments Total Other
Particulars General Retained
Reserve through Other Equity
reserves Earnings
Fund Comprehensive
Income
Balance as at April 1, 2022 19,125.69 816.48 25,661.74 1,680.35 47,284.26
Profit for the year - - 6,087.18 - 6,087.18
Other comprehensive income/(loss) - - 19.92 (14.23) 5.69
for the year
Total Comprehensive Income 19,125.69 816.48 31,768.84 1,666.12 53,377.13
Transfer (to)/ from retained earnings - 111.73 (111.73) - -
Less: Dividend paid during the year - - (1,105.19) - (1,105.19)
Balance as at March 31, 2023 19,125.69 928.21 30,551.92 1,666.12 52,271.94
Balance as at April 1, 2023 19,125.69 928.21 30,551.92 1,666.12 52,271.94
Other comprehensive income/(loss) - - 0.87 888.95 889.82
for the year
Total Comprehensive Income 19,125.69 928.21 40,939.15 2,555.07 63,548.12
Transfer (to)/ from retained earnings - 175.14 (175.14) - -
Balance as at March 31, 2024 19,125.69 1,103.35 38,936.14 2,555.07 61,720.25
* 10% of profit of Chit fund division is transferred to General Reserve every year.
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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS
1. Company overview and Material Accounting historical cost basis except for certain financial
Policies Information assets and liabilities which are measured at fair
value.
1.1 Company overview
Historical cost is generally based on the fair value
Mysore Sales International Limited (“the
of the consideration given in exchange for goods
Company”) is a premier Government of
and services.
Karnataka Undertaking, dealing in various
products & services. It was established in 1966 as Fair value is the price that would be received to
a trading house. The registered office is located sell an asset or paid to transfer a liability in an
at Bangalore, Karnataka, India. Since then, the orderly transaction between market participants
Company has grown primarily as a marketing at the measurement date, regardless of whether
force with a national presence. It has a wide that price is directly observable or estimated using
network of offices all over Karnataka as well as in another valuation technique. In estimating the fair
some major metros across the country. It markets value of an asset or a liability, the Company takes
products and services such as Indian made in to account the characteristics of the asset or
foreign liquor, chit operations, paper products, liability, if the market participants would take
imported sand, Pharmaceuticals, Industrial and those characteristics into account when pricing
Consumer products. the asset or liability at the measurement date.
Fair value for measurement and/or disclosure
1.2 Basis of preparation of financial statements
purposes in these financial statements is
(i) Statement of Compliance determined on such a basis, except for share
based payment transactions that are within the
The standalone financial statements of the scope of Ind AS 102, ‘Share-based Payment’,
Company have been prepared in accordance leasing transactions that are within the scope of
with the Indian Accounting Standards (IndAS) as Ind AS 116, ‘Leases’, and measurements that
notified under section 133 of the Companies Act have some similarities to fair value but are not
2013 read with the Companies (Indian Accounting fair value, such as net realizable value in Ind
Standards) Rules 2015 by Ministry of Corporate AS 2 ‘Inventories’, or value in use in Ind AS 36
Affairs (‘MCA’) except for Ind AS 109 – Financial ‘Impairment of assets’.
Instruments in respect of Expected Credit Loss
on Chit Financial Assets. The Company has In addition, for financial reporting purposes, fair
uniformly applied the accounting policies during value measurements are categorized into Level
the periods presented. 1, 2, or 3 based on the degree to which the inputs
to the fair value measurements are observable
The financial statements for the year ended 31 and the significance of the inputs to the fair value
March 2024 were authorized and approved for measurements in its entirety, which are described
issue by the Board of Directors on27.06.2024. as follows:
(ii) Basis of preparation of financial statements Level 1: Quoted prices (unadjusted) in active markets
for financial instruments.
The standalone financial statements have been
prepared on a going concern basis under the
54
Level 2: The fair value of financial instruments that are values are rounded to the nearest Lakhs as per
not traded in an active market is determined using the requirement of Schedule III, except when
valuation techniques which maximize the use of otherwise indicated.
observable market data rely as little as possible
(vi) Material Accounting Policies Information
on entity specific estimates.
a. Current versus non-current classification
Level 3: Inputs for the assets or liabilities that are
not based on the observable marked data The Company presents assets and liabilities
(unobservable inputs) in the balance sheet based on current/ non-
currentclassification.
(iii) Use of estimates
(i) An asset is classified as current when it is:
The preparation of financial statements is in
conformity with generally accepted accounting • Expected to be realized or intended to sold
principles which require the management of the or consumed in normal operating cycle;
Company to make judgements, estimates and • Held primarily for the purpose of trading;
assumptions that affect the reported amount of
• Expected to be realized within twelve months
revenues, expenses, assets and liabilities and
after the reporting period, or
disclosure of contingent liabilities at the end of the
reporting period. Although these estimates are • Cash or cash equivalent unless restricted
based upon the management’s best knowledge from being exchanged or used to settle a
of current events and actions, uncertainty about liability for at least twelve months after the
these assumptions and estimates could result reporting period.
in the outcomes requiring a material adjustment
(ii) All other assets are classified as non-current.
to the carrying amounts of assets or liabilities in
future period. Appropriate changes in estimates (iii) A liability is classified as current when:
are made as management becomes aware • It is expected to be settled in normal operating
of changes in circumstances surrounding the cycle;
estimates. Application of accounting policies that • It is held primarily for the purpose of trading;
require significant accounting estimates involving
complex and subjective judgments and the use of • It is due to be settled within twelve months
assumptions in these financial statements have after the reporting period, or
been disclosed in note 1.3. • There is no unconditional right to defer the
(iv) New Accounting Standards and amendments settlement of the liability for at least twelve
not yet adopted by the Company months after the reporting period
The Ministry of Corporate Affairs (MCA) notifies (iv) All other liabilities are classified as non-current.
new standards or amendments to the existing
(v) Deferred tax assets and liabilities are classified
standards under Companies (Indian Accounting
as non-current assets and liabilities.
Standards) Rules as issued from time to time. On
March 31, 2024, there are no new standards or Based on the nature of service and the time
amendments to the existing standards notified by between the acquisition of assets for development
MCA. and their realization in cash and cash equivalents,
(v) Rounding of amounts the Company has ascertained its operating cycle
as one year for the purpose of current and non-
The standalone financial statements are current classification of assets and liabilities
presented in Indian Rupee (“INR”) and all except for the assets and liabilities relating to
55
Chit business.The operating cycle for the Chit with customers based on a five step model as set
business is dependent on the Chit tenor. A tenor out in IndAs 115:
of 40 months is considered to be the operating Step 1. - Identify the contract(s) with a customer: A
cycle for ChitBusiness, being the most popular contract is defined as an agreement between two
chit tenor. or more parties that creates enforceable rights
b. Foreign currency transactions and obligations and sets out the criteria that must
be met for every contract.
Functional and presentation currency
Step 2. - Identify the performance obligations in the
The Company’s functional and presentation contract: A performance obligation is a promise in
currency is Indian Rupee. Transactions in a contract with a customer to transfer a good or
foreign currencies are initially recorded by the service to the customer.
Company’s functional currency spot rates at the
Step 3. - Determine the transaction price: The
date the transaction first qualifies for recognition.
transaction price is the amount of consideration
Monetary assets and liabilities denominated in to which the Company expects to be entitled
foreign currencies are translated at the functional in exchange for transferring promised goods
currency spot rates of exchange at the reporting or services to a customer, excluding amounts
date. Differences arising on settlement of such collected on behalf of third parties.
transaction and on translation of monetary assets
Step 4. - Allocate the transaction price to the performance
and liabilities denominated in foreign currencies
obligations in the contract: For a contract that
at year end exchange rate are recognised in
has more than one performance obligation, the
profit or loss. They are deferred in equity if they
Company will allocate the transaction price to
relate to qualifying cash flow hedges.
each performance obligation in an amount that
Non-monetary items that are measured in depicts the amount of consideration to which the
terms of historical cost in a foreign currency are Company expects to be entitled in exchange for
translated using the exchange rates at the dates satisfying each performance obligation.
of the initial transactions. Non-monetary items
Step 5. - Recognize revenue when (or as) the entity
measured at fair value in a foreign currency are
satisfies a performance obligation. The Company
translated using the exchange rates at the date
satisfies a performance obligation and recognizes
when the fair value is determined. The gain or
revenue over time, if one of the following criteria
loss arising on translation of non-monetary items
is met:
measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair 1. The customer simultaneously receives and
value of the item (i.e., translation differences on consumes the benefits provided by the
items whose fair value gain or loss is recognised Company’sperformance as the Company
in OCI or profit or loss are also recognised in OCI performs; or
or profit or loss, respectively).
2.
The Company’s performance creates or
c. Revenue recognition
enhances an asset that the customer controls as
The Company has applied the following the asset is created or enhanced; or
accounting policy in the preparation of its
standalone financial statements: 3. The Company’s performance does not create an
asset with an alternative use to the Company and
Revenue from contracts with customers
the entity has an enforceable right to payment for
The Company recognizes revenue from contracts performance completed to date.
56
For performance obligations where one of the Interest income
above conditions is not met, revenue is recognised
Interest income from a financial asset is recognised
at the point in time at which the performance
when it is probable that the economic benefits will
obligation is satisfied.
flow to the Company and the amount of income
When the Company satisfies a performance can be measured reliably. Interest is accrued
obligation by delivering the promised goods on time proportionbasis, by reference to the
or services it creates a contract asset based principal outstanding applying effective interest
on the amount of consideration earned by the rate.The EIR is the rate that exactly discounts the
performance. Where the amount of consideration estimated future cash receipts over the expected
received from a customer exceeds the amount of life of the financial instrument or a shorter period,
revenue recognised this gives rise to a contract where appropriate, to the net carrying amount
liability. of the financial asset. When calculating the
Revenue is measured at the fair value of the effective interest rate, the Company estimates
consideration received or receivable, taking into the expected cash flows by considering all the
account contractually defined terms of payment contractual terms of the financial instrument (for
and excluding taxes and duty. example, prepayment, extension, call and similar
options) but does not consider the expected
The Company does not expect to have any credit losses. Interest income is included in other
contracts where the period between the transfer income in the statement of profit or loss.
of the promised goods or services to the customer
and payment by the customer exceeds one year. Interest on delayed receipts, cancellation/
As a consequence, it does not adjust any of the forfeiture income and transfer fees from
transaction prices for the time value of money. customersarerecognised on accrual basis except
in cases where ultimate collection is considered
Rental income
doubtful and in the instances listed below:
Rental income arising from operating leases
Revenue Recognition on cash basis
on investment properties is accounted for on a
straight-line basis over the lease terms except Revenue is recognized on accrual basis except
in the case where incremental lease reflects for the following items where it is accounted for
inflationary effect and rental income is accounted on cash basis since the realisability is uncertain:
in such case by actual rent for the period.
i. Chit Operations:All streams of revenue from Chit
Insurance claims operations is on cash basis.
Insurance claims are accounted for to the extent ii. Duty credit / exemption under various promotional
the Company is reasonably certain of their schemes of Foreign Trade Policy in force, Tax
ultimate collection.
credit, and refund of income-tax/service tax /
Dividend income sales-tax /VAT/GST and interest thereon etc.
Income from dividend is recognised when the iii. Interest on overdue recoverable.
Company’s right to receive the payment is
iv. Liquidated damages on suppliers/underwriters.
established, it is probable that the economic
benefits associated with the dividend will flow to Other items of income are recognized as and
the Company, and the amount of the dividend can when the right to receive arises.
be measured reliably.
57
d. Inventories Depreciation and useful lives
Inventories are valued at the lower of cost and Depreciation/amortization on property, plant
net realisable value except scrap and by products & equipment is provided on the straight-line
which are valued at net realisable value.Net method, based on the useful life of asset
realisable value is the estimated selling price in specified in Schedule II to the Companies Act,
the ordinary course of business, less estimated 2013. The Management estimates the useful
costs of completion and the estimated costs lives of the assets as per the indicative useful life
necessary to make the sale. prescribed in Schedule II to the Companies Act,
Costs incurred in bringing each product to its 2013. Residual values, useful lives and method of
present location and condition are accounted for depreciation are reviewed at each financial year
as follows: end and adjusted prospectively, if appropriate.
Particulars Life in years
i. Raw materials: Cost includes cost of purchase
Building 60
and other costs incurred in bringing the inventories
Firefighting equipment 10
to their present location and condition. Cost is
Electrical equipment 10
determined on weighted average basis in case of
Paper Division. Furniture & fixtures 10
Vehicles 8
ii. Finished goods and work in progress: Cost
Furniture &fixtures - Liquor 5
includes cost of direct materials and labour
Handling equipment 5
and a proportion of manufacturing overheads
Weighing Machines 5
based on the normal operating capacity but
excluding borrowing costs. Cost is determined Office equipment 5
on weighted average basis.Raw materials and Computers 3
consumablesissued to convertors are considered Lease hold assets Over the primary lease
Lease hold Improvements period - except for land
as Finished Goods only at the time of receipt
of notebooksfrom the convertors in the case of Depreciation on fixed assets added/ disposed
Paper Division. off/ discarded during the year has been provided
iii. Freight inward is not considered for valuation of on pro rata basis with reference to the date of
stock of liquor and is charged to the Statement of addition/ disposal/ discarding.
Profit and Loss. The Company, based on technical assessment
iv. Obsolete inventories, slow moving and defective made by technical expert and management
inventories are identified and written down to net estimate, depreciates furniture & fixture at
realisable value. Liquor outlets over estimated useful lives which
e. Property, Plant and Equipment (PPE) are different from the useful life prescribed in
Schedule II to the Companies Act, 2013. The
Recognition and measurement
management believes that these estimated useful
Property, plant and equipment are measured lives are realistic and reflect fair approximation of
at cost less accumulated depreciation and the period over which the assets are likely to be
impairment losses, if any. Cost includes used.
expenditures directly attributable to the acquisition
De-recognition
of the asset. General and specific borrowing
costs directly attributable to the construction of a An item of property, plant and equipment and any
qualifying asset are capitalized as part of the cost. significant part initially recognized is derecognized
upon disposal or when no future economic
58
benefits are expected from its use or disposal. at each balance sheet date are disclosed
Any gain or loss arising on de-recognition of the separately as Other Non-Current Assets..
asset (calculated as the difference between the
h. Investment Property
net disposal proceeds and the carrying amount
of the asset) is included in the statement of profit Investment properties are properties held to
and loss when the asset is derecognized. earn rentals and/or for capital appreciation
(including property under construction for such
f. Intangible assets
purposes). Investment properties are measured
Recognition and measurement initially at cost, including transaction costs. All
of the Company’s property interests held under
Intangible assets (software)acquiredseparatelyare
operating leases to earn rentals or for capital
measured at their cost of acquisition. Cost
appreciation purposes are accounted for as
comprises purchase price, borrowing cost
investment properties. After initial recognition, the
if capitalization criteria are met and directly
Company measures investment property at cost.
attributable cost of bringing the asset to its
working condition for the intended use. Any trade Investment properties are derecognized upon
discount and rebates are deducted in arriving at disposal or when the investment properties are
the purchase price. permanently withdrawn from use and no future
economic benefits are expected post disposal.
Following initial recognition, intangible assets are
Any gain or loss arising on de recognition of the
carried at cost less accumulated amortization and
property (calculated as the difference between the
impairment losses, if any.
net disposal proceeds and the carrying amount of
The cost of capitalized software is amortized over the asset) is included in the profit or loss in the
a period of 6 years from the date of its acquisition period in which the property is derecognized.
on a straight-line basis.
Investment properties are depreciated in
Gains or losses arising from derecognition of an accordance to the class of asset that it belongs
intangible asset are measured as the difference to and the life of the asset is as conceived
between the net disposal proceeds and the for the same class of asset of the Company.
carrying amount of the asset and are recognised Depreciation/amortization is provided on the
in the Statement of Profit andLoss when the asset straight-line method, based on the useful life of
is derecognized. asset specified in Schedule II to the Companies
The residual values, useful lives and methods of Act, 2013. The Management estimates the useful
amortization of intangible assets are reviewed lives of the assets as per the indicative useful life
at each reporting date end and adjusted prescribed in Schedule II to the Companies Act,
prospectively, if appropriate. 2013. Residual values, useful lives and method of
depreciation are reviewed at each financial year
g. Capital Work in Progress
end and adjusted prospectively, if appropriate.
Capital work-in-progress is stated at cost which
The useful life of the Building is estimated to be
includes expenses incurred during construction
60 years.
period, interest on amount borrowed for acquisition
of qualifying assets and other expenses incurred The fair value of investment property is disclosed
in connection with project implementation in so in the notes. Fair values are determined based on
far as such expenses relate to the period prior to an annual evaluation performed by an accredited
the date of use of asset. Capital advances given external independent valuer.
towards purchase/ acquisition of PPE outstanding
59
i. Finance cost The Company determines the lease term as
the non-cancellable period of a lease, together
Finance cost comprises of Interest cost on lease
with periods covered by an option to extend the
and other financial liabilities, bank charges and
lease, where the Company is reasonably certain
guarantee commission. All finance costs are
to exercise that option.
recognized in the Statement of Profit and Loss in
the period in which they are incurred. The Company at the commencement of the
j. Cash and cash equivalents lease contract recognizes a Right-of-Use (RoU)
asset at cost and corresponding lease liability,
Cash and cash equivalent in the Balance Sheet
except for leases with term of less than twelve
comprise cash at banks and on hand and short-
months (short term leases) and low-value assets.
term deposits with an original maturity of three
For these short term and low value leases, the
months or less, which are subject to insignificant
Company recognizes the lease payments as an
risk ofchanges in value.
operating expense on a straight-line basis over
For the purpose of the cash flows statement, the lease term.
cash and cash equivalents includes cash, short-
The cost of the right-of-use asset comprises
term deposits, as defined above, other short-
the amount of the initial measurement of the
term and highly liquid investments with original
lease liability, any lease payments made at or
maturities of three months or less that are readily
before the inception date of the lease, plus any
convertible to known amounts of cash and which
initial direct costs, less any lease incentives
are subject to an insignificant risk of changes in
received. Subsequently, the right-of-use assets
value adjusted for outstanding bank overdrafts
are measured at cost lessany accumulated
as they are considered an integral part of the
depreciation and accumulated impairment
Company’s cash management. Bank Overdrafts
losses, if any. The right-of-use assets are
are shown within Borrowings in current liabilities
depreciated using the straight-line method from
in the balance sheet.
the commencement date over theshorter of
k. Leases lease term or useful life of right-of-use asset.
The Company evaluates each contract or The estimated useful life of right-of-use assets
arrangement, whether it qualifies as lease as are determined onthe same basis as those of
defined under Ind AS 116. property, plant and equipment.
Company as a lessee The Company applies Ind AS 36 to determine

whether an RoU asset is impaired and accounts
The Company enters into an arrangement for
for any identified impairment loss as described in
lease of shops and offices. Such arrangements
the impairment of non-financial assets below.
are generally for a fixed period but may have
extension or termination options. The Company For lease liabilities at the commencement of the
assesses, whether the contract is, or contains, a lease, theCompany measures the lease liability
lease, at itsinception. A contract is, or contains, a at the present value ofthe lease payments that
lease if the contract conveys the right to – are not paid at that date. The lease payments
are discounted using the interest rate implicit in
a) control the use of an identified asset,
thelease, if that rate can be readily determined,
b) obtain substantially all the economic benefits if that rate is notreadily determined, the lease
from use of the identified asset, and payments are discounted usingthe incremental
borrowing rate that the Company would have
c) direct the use of the identified asset
60
topay to borrow funds, including the consideration 1948) and Superannuation. The Company has no
of factors such as the nature of the asset and further obligations beyond making the company’s
location, collateral, market terms and conditions, contributions. The company’s contribution to
as applicable in a similar economic environment. Provident Fund, ESI and Superannuation are
made at prescribed rates and are charged to
After the commencement date, the amount of
Statement of Profit and Loss. The Superannuation
lease liabilities is increased to reflect the accretion
assets are managed by a Trust which invests with
of interest and reduced for the lease payments
LIC.
made.
Death Relief Fund
The Company recognizes the amount of the re-
The Company’s liability towards Death Relief
measurement of lease liability as an adjustment
Fund is accounted on the basis of actuarial
to the right-of-use assets. Where the carrying
valuation as at the reporting date.
amount of the right-of-use asset is reduced
to zero and there is a further reduction in the Defined benefit plan
measurement of the lease liability, the Company
The Company has a defined benefit plan for
recognizes any remaining amount of there-
payment of Gratuity as per the Gratuity Act
measurement in statement of profit and loss.
1972. The Gratuity Plan provides a lump sum
Lease liability payments are classified as “cash payment to employees who have completed five
used in financing activities” in the Statement of years or more of service at retirement, disability
Cash Flow. or termination of employment, being an amount
based on the respective employee’s last drawn
The Company as a lessor salary and the number of years of employment
with the Company. The Company makes a
Leases under which the Company is a lessor are
contribution to the MSIL Employee Gratuity Fund
classified as finance or operating leases. Lease
Trust managed by LIC.
contracts where all the risks and rewards are
substantially transferred to the lessee, the lease The Company’s liability is actuarially determined
contracts are classified as finance leases. All (using the Projected Unit Credit method) at the
other leases are classified as operating leases. end of each reporting period. The present value
of the defined benefit obligation is determined by
For leases under which the Company is an
discounting the estimated future cash outflows
intermediate lessor, the Company accounts for
by reference to market yields at the end of the
the head-lease and the sub-lease as two separate
reporting period on government bonds that have
contracts. The sub-lease is further classified
terms approximating to the terms of the related
either as a finance lease or an operating lease by
obligation. The net interest cost is calculated by
reference to the RoU asset arising from the head-
applying the discount rate to the net balance of
lease.
the defined benefit obligation and the fair value
l. Employee benefits of plan assets if any. This cost is included in the
employee benefit expense in the statement of
Defined contribution plan profit and loss.
The Company’s defined contribution plans The liability or asset recognised in the balance
are Employees’ Provident Fund (under the sheet in respect of gratuity plan is the present
provisions of Employees Provident Funds and value of the defined benefit obligation at the end
Miscellaneous Provisions Act, 1952), ESI (under of the reporting period less the fair value of plan
the provisions of Employees State Insurance Act, assets, if any.
61
Re-measurement gains and losses arising from the basis of the amount paid or payable for the
experience adjustments and changes in actuarial period during which services are rendered by the
assumptions are recognised in the period in employee.
which they occur, directly in other comprehensive
m. Tax expense
income and are never reclassified to profit or
loss. Changes in the present value of the defined Tax expense comprises of current income tax
benefit obligation resulting from plan amendments and deferred tax.
or curtailments are recognised immediately in the Current taxes
statement of profit and loss as past service cost.
The tax currently payable is based on taxable
Earned Leave profit for the year. Taxable profit differs from
As per the policy of the Company, employees ‘profit before tax’ as reported in the statement
can carry forward unutilized accrued leave and of profit and loss because of items of income
utilize it in next service period or receive cash or expense that are taxable or deductible in
compensation.The compensated absences fall other years and items that are never taxable or
due wholly within twelve months after the end deductible. The tax rates and tax laws used to
of the period in which the employees render compute the amount are those that are enacted
the related service and are also expected to be or substantively enacted at the reporting date.
utilized wholly within twelve months after the Management periodically evaluates positions
end of such period, the benefit is classified as a taken in the tax returns with respect to situations
current employee benefit. The Company records in which applicable tax regulations are subject to
an obligation for such compensated absences interpretation and establishes provisions where
in the year in which the employee renders the appropriate.
services that increase his entitlement. Current income tax assets and liabilities are
The obligation towards the same is measured at measured at the amount expected to be
the expected cost of accumulating compensated recovered from or paid to the taxation authorities.
absences as the additional amount expected to Management periodically evaluates positions
be paid as a result of the unused entitlement as taken in the tax returns with respect to situations
at the reporting period. The Company’s liability in which applicable tax regulations are subject to
is actuarially determined (using the Projected interpretation and establishes provisions where
Unit Credit method) at the end of each reporting appropriate.
period. Current tax is recognised in the Statement of
Other short-term benefits Profit and Loss, except to the extent that it relates
to items recognised in other comprehensive
All employee benefits falling due wholly within
income or directly in equity. In this case, the tax is
twelve months of rendering the service are
also recognised in other comprehensive income
classified as short-term employee benefits.
or directly in equity, respectively.
The benefits like salaries, wages, estimated
bonus, ex-gratia and short-term compensated Deferred tax
absences are recognised in the period in which Deferred tax is provided using the liability method
the employee renders the related service. on temporary differences between the tax bases
Short-term employee benefits comprising of assets and liabilities and their carrying amounts
employee costs including performance bonus is for financial reporting purposes at the reporting
recognized in the statement of profit and loss on date.
62
Deferred tax liabilities are recognised for all Unrecognized deferred tax assets are reassessed
taxable temporary differences, except: at each reporting date and are recognised to the
extent that it has become probable that future
• When the deferred tax liability arises from the
taxable profits will allow the deferred tax asset to
initial recognition of goodwill or an asset or liability
be recovered.
in a transaction that is not a business combination
and, at the time of the transaction, affects neither Deferred tax assets and liabilities are measured
the accounting profit nor taxable profit or loss; at the tax rates that are expected to apply in the
year when the asset is realized or the liability is
• In respect of taxable temporary differences settled, based on tax rates (and tax laws) that
associated with investments in subsidiaries and have been enacted or substantively enacted at
interests in joint arrangements, when the timing the reporting date.
of the reversal of the temporary differences can
be controlled and it is probable that the temporary Deferred tax is recognised in the Statement of
differences will not reverse in the foreseeable Profit and Loss, except to the extent that it relates
future. to items recognised in other comprehensive
income or directly in equity. In this case, the tax is
Deferred tax assets are recognised for all also recognised in other comprehensive income
deductible temporary differences, the carry or directly in equity, respectively.
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the Deferred tax assets and deferred tax liabilities are
extent that it is probable that taxable profit will be offset if a legally enforceable right exists to set
available against which the deductible temporary off current tax assets against current tax liabilities
differences, and the carry forward of unused tax and the deferred taxes relate to the same taxable
credits and unused tax losses can be utilised, entity and the same taxation authority.
except: The Company recognizes tax credits in the nature
of MAT credit as an asset only to the extent that
• When the deferred tax asset relating to the
there is convincing evidence that the Company
deductible temporary difference arises from
will pay normal income tax during the specified
the initial recognition of an asset or liability in a
period, i.e., the period for which tax credit is
transaction that is not a business combination
allowed to be carried forward. In the year in which
and, at the time of the transaction, affects neither
the Company recognizes tax credits as an asset,
the accounting profit nor taxable profit or loss;
the said asset is created by way of tax credit to
• In respect of deductible temporary differences the Statement of profit and loss. The Company
associated with investments in subsidiaries, reviews such tax credit assets at each reporting
associates and interests in joint arrangements, date and writes down the asset to the extent the
deferred tax assets are recognised only to the Company does not have convincing evidence that
extent that it is probable that the temporary it will pay normal tax during the specified period.
differences will reverse in the foreseeable future Deferred tax includes MAT tax credit.
and taxable profit will be available against which
the temporary differences can be utilised. n. Earnings per share
The carrying amount of deferred tax assets is Basic EPS is computed by dividing the net profit
reviewed at each reporting date and reduced / loss for the year attributable to ordinary equity
to the extent that it is no longer probable that holders of the Company by the weighted average
sufficient taxable profit will be available to allow number of ordinary shares outstanding during the
all or part of the deferred tax asset to be utilised. year.
63
Diluted EPS is computed by dividing the net profit expected future cash flows at a pre-tax rate
/ loss attributable to ordinary equity holders of that reflects current market assessments of the
the Company by the weighted average number time value of money and the risks specific to
of ordinary shares outstanding during the year the liability. The increase in the provision due to
adjusted for the weighted average number the passage of time is recognised as an interest
of ordinary shares that would be issued on expense.
conversion of all the dilutive potential ordinary
Present obligations arising under onerous
shares into ordinary shares.
contracts are recognised and measured as
The dilutive potential equity shares are adjusted provisions. An onerous contract is considered
for the proceeds receivable had the equity shares to exist where the Company has a contract
been issued at fair value (i.e. the average market under which the unavoidable costs of meeting
value of the outstanding equity shares). Dilutive the obligations under the contract exceed the
potential equity shares are deemed converted economic benefits expected to be received from
as of the beginning of the period, unless issued the contract.
at a later date. Dilutive potential equity shares Decommissioning costs are measured as the best
are determined independently for each period estimate of the expenditure to settle the obligation
presented. The number of equity shares and or to transfer the obligation to a third party.
potentially dilutive equity shares are adjusted Provisions for decommissioning obligations are
retrospectively for all periods presented for any required to be recognized at the inception of the
share splits and bonus shares issues including arrangement. The estimated costs to be incurred
for changes effected prior to the approval of the at the end of the arrangement are discounted to
standalone financial statements by the Board of its present value using the market rate of return.
Directors.
When some or all of the economic benefits
o. Provisions, Contingent Liabilities and Contingent required to settle a provision are expected to
Assets be recovered from a third party, a receivable is
recognized as an asset if it is virtually certain that
Provisions are recognized when the Company
reimbursement will be received, and the amount
has a present obligation (legal or constructive),
of the receivable can be measured reliably.
as a result of past events, and it is probable
that an outflow of resources, that can be reliably Contingent Liability is disclosed in the case of
estimated, will be required to settle such an - a present obligation arising from a past event,
obligation. when it is not probable that an outflow of
The amount recognized as a provision is the best resources will be required to settle the obligation.
estimate of the consideration required to settle
- a present obligation arising from a past event,
the present obligation at the balance sheet date,
when a reliable estimate of the obligation cannot
taking into account the risks and uncertainties
be made, and
surrounding the obligation. When a provision
is measured using the cash flows estimated to - a possible obligation arising from past events
settle the present obligation, it carrying amount is where the probability of outflow of resources is
the present value of those cash flows (when the not remote.
effect of the time value of money is material).
Contingent assets are disclosed in the Financial
If the effect of the time value of money is material, Statements by way of notes to accounts when an
provisions are determined by discounting the inflow of economic benefits is probable.
64
Provisions, contingent liabilities and contingent contractual terms of the financial asset give rise
assets are reviewed at each balance sheet date. on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
p. Financial instruments– initial recognition and
principal amount outstanding.
subsequent measurement
This category is the most relevant to the Company.
Financial assets and financial liabilities are
After initial measurement, such financial assets
recognised when a Company becomes a party to
are subsequently measured at amortized cost
the contractual provisions of the instruments. For
using the effective interest rate (EIR) method.
recognition and measurement of financial assets
Amortized cost is calculated by taking into
and financial liabilities, refer policy as mentioned
account any discount or premium on acquisition
below:
and fees or costs that are an integral part of the
Initial recognition of financial assets and EIR. The EIR amortisation is included in finance
financial liabilities: income in the profit or loss.
Financial assets and financial liabilities are (b) Financial assets at fair value through other
initially measured at fair value. Transaction costs comprehensive income
that are directly attributable to the acquisition or
A financial asset is measured at fair value through
issue of financial assets and financial liabilities
other comprehensive income if the financial asset
(other than financial assets and financial liabilities
is held within a business model whose objective
at fair value through profit or loss) are added to
is achieved by both collecting contractual cash
or deducted from the fair value of the financial
flows and selling financial assets, and the
assets or financial liabilities, as appropriate, on
contractual terms of the financial asset give rise
initial recognition. Transaction costs directly
on specified dates to cash flows that are solely
attributable to the acquisition of financial assets
payments of principal and interest (SPPI) on the
or financial liabilities at fair value through profit or
principal amount outstanding.
loss are recognised immediately in profit or loss.
Financial assets included within the FVTOCI
Subsequent measurement of financial assets:
category are measured at each reporting date at
For purposes of subsequent measurement, fair value. Fair value movements are recognized
financial assets are classified in four categories: in the other comprehensive income (OCI).
However, the Company recognizes interest
(a) Financial assets at amortized cost
income, impairment losses & reversals and
(b) Financial assets at fair value through other foreign exchange gain or loss in the Statement
comprehensive income (FVTOCI) of Profit and Loss. On derecognition of the asset,
cumulative gain or loss previously recognised
(c) Financial assets at fair value through profit or loss
in OCI is reclassified from the equity to P&L.
(FVTPL)
Interest earned whilst holding FVTOCI financial
(d) Equity instruments measured at fair value through asset is reported as interest income using the EIR
other comprehensive income (FVTOCI) method.
(a) Financial assets at amortized cost: (c) Financial assets at fair value through profit or
A financial asset is measured at amortized cost loss
if the financial asset is held within a business Financial assets are measured at fair value
model whose objective is to hold financial assets through profit or loss unless it is measured at
in order to collect contractual cash flows, and the
65
amortized cost or at fair value through other assets) such as investments, trade receivables,
comprehensive income on initial recognition. The advances and security deposits held at amortized
transaction costs directly attributable of financial cost and financial assets that are measured at
assets at fair value through profit or loss are fair value through other comprehensive income
immediately recognised profit or loss. are tested for impairment based on evidence or
information that is available without undue cost or
The Company may elect to designate a financial
effort. Expected credit losses (ECL) are assessed
asset, which otherwise meets amortized cost
and loss allowances recognised if the credit
or fair value through other comprehensive
quality of the financial asset has deteriorated
income criteria, as at fair value through profit or
significantly since initial recognition.
loss. However, such election is allowed only if
doing so reduces or eliminates a measurement Loss allowance for trade receivables with no
or recognition inconsistency (referred to as significant financing component is measured at
‘accounting mismatch’). The Company has not an amount equal to lifetime ECL. For all other
designated any debt instrument as at FVTPL. financial assets, ECL are measured at an amount
equal to the 12 months ECL, unless there has
(d) Equity instruments:
been significant increase in credit risk from initial
All equity investments in scope of Ind-AS 109 recognition in which case these are measured
other than Investment in subsidiaries, Joint at lifetime ECL. The amount of expected credit
Ventures and Associates are measured at fair losses (or reversal) that is required to adjust the
value. Equity instruments which are held for loss allowance at the reporting date to the amount
trading, are classified as at FVTPL. For all that is required to be recognised as an impairment
other equity instruments, the Company may gain or loss in Statement of Profit and Loss.
make an irrevocable election to present in other
Derecognition of financial assets
comprehensive income subsequent changes in
the fair value. The Company makes such election Financial assets are derecognized when the right
on an instrument-by-instrument basis. The to receive cash flows from the assets has expired,
classification is made on initial recognition and is or has been transferred, and the Company has
irrevocable. transferred substantially all of the risks and
rewards of ownership.
Equity Investment in subsidiaries, Joint Ventures
and Associates are measured at cost as per Ind Concomitantly, if the asset is one that is measured at:
AS 27 - Separate Financial Statements. (a) amortized cost, the gain or loss is recognised in
the Statement of Profit and Loss;
If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value (b) fair value through other comprehensive income,
changes on the instrument, excluding dividends, the cumulative fair value adjustments previously
are recognized in the OCI. There is no recycling taken to reserves are reclassified to the Statement
of the amounts from OCI to Statement of Profit of Profit and Loss unless the asset represents an
and Loss, even on sale of investment. However, equity investment in which case the cumulative
the Company may transfer the cumulative gain or fair value adjustments previously taken to
loss within equity. reserves is reclassified within equity.
Impairment of financial assets Reclassification
The Company assesses at each reporting date When and only when the business model is
whether a financial asset (or a group of financial changed, the Company shall reclassify all
66
affected financial assets prospectively from the are recognized in OCI. These gains/ losses
reclassification date as subsequently measured are not subsequently transferred to Statement
at amortized cost, fair value through other of Profit or Loss. However, the Company may
comprehensive income, fair value through transfer the cumulative gain or loss within equity.
profit or loss without restating the previously All other changes in fair value of such liability
recognised gains, losses or interest and in terms are recognised in the statement of profit or loss.
of the reclassification principles laid down in the The Company has not designated any financial
Ind AS relating to Financial Instruments. liability as at fair value through profit and loss.
Financial liabilities and equity instruments Equity instruments
Classification as debt or equity An equity instrument is any contract that evidences

a residual interest in the assets of an entity after
Debt and equity instruments issued by a Company
deducting all of its liabilities. Equity instruments
are classified as either financial liabilities or as
issued by a Company are recognised at the
equity in accordance with the substance of the
proceeds received, net of direct issue costs.
contractual arrangements and the definitions of a
financial liability and an equity instrument. Financial guarantee contracts
Financial liabilities A financial guarantee contract is a contract that

requires the issuer to make specified payments to
All financial liabilities are subsequently measured
reimburse the holder for a loss it incurs because
at amortized cost using the effective interest
a specified debtor fails to make payments when
method.
due in accordance with the terms of a debt
Financial liabilities at fair value through profit instrument.
or loss
Financial guarantee contracts issued by a
Financial liabilities at fair value through profit or Company are initially measured at their fair
loss include financial liabilities held for trading values and, if not designated as at FVTPL, are
and financial liabilities designated upon initial subsequently measured at the higher of:
recognition as at fair value through profit or
• the amount of loss allowance determined in
loss. Financial liabilities are classified as held
accordance with impairment requirements of
for trading if they are incurred for the purpose of
Ind AS 109; and
repurchasing in the near term. This category also
includes derivative financial instruments entered • the amount initially recognised less, when
into by the Company that are not designated as appropriate, the cumulative amount of
hedging instruments in hedge relationships as income recognised in accordance with the
defined by Ind-AS 109. principles of Ind AS 18.
Gains or losses on liabilities held for trading are Derecognition of financial liabilities
recognised in the profit or loss.
The Company derecognizes financial liabilities
Financial liabilities designated upon initial when, and only when, the Company’s obligations
recognition at fair value through profit or loss are are discharged, cancelled or have expired. An
designated at the initial date of recognition, and exchange with a lender of debt instruments with
only if the criteria in Ind-AS 109 are satisfied. For substantially different terms is accounted for as
liabilities designated as FVTPL, fair value gains/ an extinguishment of the original financial liability
losses attributable to changes in own credit risks and the recognition of a new financial liability.
67
Similarly, a substantial modification of the terms be impaired. If any indication exists, or when
of an existing financial liability (whether or not annual impairment testing for an asset is required,
attributable to the financial difficulty of the debtor) the Company estimates the asset’s recoverable
is accounted for as an extinguishment of the amount. An asset’s recoverable amount is the
original financial liability and the recognition of higher of an asset or cash-generating unit’s (CGU)
a new financial liability. The difference between fair value less costs to sell and its value in use. It
the carrying amount of the financial liability is determined for an individual asset, unless the
derecognized and the consideration paid and asset does not generate cash inflows that are
payable is recognised in profit or loss. largely independent of those from other assets of
the Company. When the carrying amount of an
Offsetting Financial Instruments
asset or CGU exceeds its recoverable amount,
Financial assets and liabilities are offset, and the asset is considered impaired and is written
the net amount is reported in the balance sheet down to its recoverable amount.
where there is a legally enforceable right to In assessing value in use, the estimated future
offset the recognised amounts and there is an cash flows are discounted to their present
intention to settle on a net basis or realize the value using a pre-tax discount rate that reflects
asset and settle the liability simultaneously. The current market assessments of the time value
legally enforceable right must not be contingent of money and the risks specific to the asset. In
on future events and must be enforceable in the determining fair value less costs to sell, recent
normal course of business and in the event of market transactions are taken into account,
default, insolvency or bankruptcy of the Company if available. If no such transactions can be
or the counterparty. identified, an appropriate valuation model is
used. These calculations are corroborated by
q. Impairment of financial assets
valuation multiples, quoted share prices for
The Company recognizes loss allowances using publicly traded subsidiaries or other available fair
the expected credit loss (ECL) model for financial value indicators.
assets which are not fair valued through profit or
The Company bases its impairment calculation
loss. Loss allowance for trade receivables with
on detailed budgets and forecasts which are
no significant financing component is measured
prepared separately for each of the Company’s
at an amount equal to lifetime ECL. For all other
CGU to which the individual assets are allocated.
financial assets, expected credit losses are
These budgets and forecast calculations
measured at an amount equal to the twelve-
generally cover a period of five years. For longer
month ECL, unless there has been a significant
periods, a long-term growth rate is calculated and
increase in credit risk from initial recognition, in
applied to project future cash flows after the fifth
which case those are measured at lifetime ECL.
year.
The amount of expected credit losses (or reversal)
that is required to adjust the loss allowance at the Impairment losses, including impairment on
reporting date to the amount that is required to be inventories, are recognised in the Statement
recognized is recognized as an impairment gain of Profit and Loss in those expense categories
or loss in the statement of profit and loss. consistent with the function of the impaired asset,
except for a property previously revalued where
r. Impairment of non-financial assets the revaluation was taken to other comprehensive
The Company assesses at each reporting date income. In this case, the impairment is also
whether there is an indication that an asset may recognised in other comprehensive income up to
the amount of any previous revaluation.
68
For assets excluding goodwill, an assessment liability and the carrying amount of the assets
is made at each reporting date as to whether distributed is recognised in the Statement of
there is any indication that previously recognised Profit and Loss.
impairment losses may no longer exist or may
Dividends declared by the Company after the
have decreased. If such an indication exists,
reporting period are not recognized as liability
the Company estimates the asset’s or CGU’s
at the end of the reporting period. Dividends
recoverable amount. A previously recognised
declared after the reporting period but before the
impairment loss is reversed only if there has been
issue of financial statements are not recognized
a change in the assumptions used to determine
as liability since no obligation exists on the
the asset’s recoverable amount since the last
balance sheet date. Such dividends are disclosed
impairment loss was recognised. The reversal is
in the notes to the financial statements.
limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor u. Events after Reporting Date
exceed the carrying amount that would have Assets and liabilities are adjusted for events
been determined, net of depreciation, had no occurring after the reporting period that provides
impairment loss been recognised for the asset in additional evidence to assist the estimation of
prior years. Such a reversal is recognised in the amounts relating to conditions existing at the end
Statement of Profit and Loss unless the asset is of the reporting period.
carried at a revalued amount, in which case the
v. Non-Current Assets Held For Sale And
reversal is treated as a revaluation increase.
Discontinued Operations
s. Cash flow statement
The Company classifies non-current assets (or
Cash flows are reported using the indirect disposal group) as held for sale if their carrying
method, whereby profit for the period is adjusted amounts will be recovered principally through a
for the effects of transactions of a non-cash sale rather than through continuing use. Actions
nature, any deferrals or accruals of past operating required to complete the sale should indicate that
cash receipts or payments and item of income or it is unlikely that significant changes to the sale
expenses associated with investing or financing will be made or that the decision to sell will be
cash flows. The cash from operating, investing withdrawn. Management must be committed to
and financing activities of the Company are the sale expected within one year from the date
segregated. of classification.
The criteria for held for sale classification is

t. Dividend
regarded met only when the assets is available
The Company recognizes a liability (including tax for immediate sale in its present condition, subject
thereon) to make cash or non-cash distributions only to terms that are usual and customary for
to equity shareholders of the Company when the sales of such assets, its sale is highly probable;
distribution is authorised and the distribution is no and it will genuinely be sold, not abandoned. The
longer at the discretion of the Company. Company treats sale of the asset to be highly
probable when:
Non-cash distributions are measured at the fair
value of the assets to be distributed with fair value • The appropriate level of management is
re-measurement recognised directly in equity. committed to a plan to sell the asset,
Upon distribution of non-cash assets, any • An active programme to locate a buyer

difference between the carrying amount of the and complete the plan has been initiated (if
applicable),
69
• The asset is being actively marketed for sale as a single amount as profit or loss after tax from
at a price that is reasonable in relation to its discontinued operations in the statement of profit
current fair value, and loss.
• The sale is expected to qualify for recognition w. Segment Reporting

as a completed sale within one year from the
Operating segments are reported in a manner
date of classification , and
consistent with the internal reporting provided to
• Actions required to complete the plan indicate the chief operating decision maker.
that it is unlikely that significant changes to
x. Government Grants
the plan will be made or that the plan will be
withdrawn. Government grants are recognised where there
is reasonable assurance that the grant will be
Non-current assets held for sale are measured at
received, and all attached conditions will be
the lower of their carrying amount and the fair value
complied with.
less costs to sell. Assets and liabilities classified
as held for sale are presented separately in the When the grant relates to an expense item, it is
balance sheet. recognised as income on a systematic basis over
the periods that the related costs, for which it is
An impairment loss is recognised for any initial or
intended to compensate, are expensed.
subsequent write-down of the assets to fair value
less cost to sell. A gain is recognised for any When the grant relates to an asset, it is presented
subsequent increases in the fair value less cost to by deducting the grant from the carrying amount
sell of an asset but not in excess of the cumulative of the asset. When the Company receives grants
impairment loss previously recognised, A gain or of non-monetary assets, it is treated at a nominal
loss previously not recognised by the date of sale value.
of the non-current assets is recognised on the
date of de-recognition. When loans or similar assistance are provided
by governments or related institutions, with
Property, plant and equipment and intangible an interest rate below the current applicable
assets once classified as held for sale/ distribution market rate, the effect of this favourable interest
to owners are not depreciated or amortized. is regarded as a government grant. The loan or
A discontinued operation qualifies as discontinued assistance is initially recognised and measured at
operation if it is a component of an entity that fair value and the government grant is measured
either has been disposed of, or is classified as as the difference between the initial carrying
held for sale, and: value of the loan and the proceeds received.
The loan is subsequently measured as per the
• Represents a separate major line of business
accounting policy applicable to financial liabilities.
or geographical area of operations,
When the grant relates to an asset, it is presented
• Is part of a single coordinated plan to by deducting the grant from the carrying amount
dispose of a separate major line of business of the asset. When the Company receives grants
or geographical area of operations; or of non-monetary assets, it is treated at a nominal
value.
• Is a subsidiary acquired exclusively with a
view to resale When loans or similar assistance are provided
by governments or related institutions, with an
Discontinued operations are excluded from the
interest rate below the current applicable market
results of continuing operations and are presented
70
rate, the effect of this favourable interest is plant and equipment and intangible assets at the
regarded as a government grant. The loan or end of each reporting period.
assistance is initially recognised and measured at
(b) Impairment of non-financial assets
fair value and the government grant is measured
as the difference between the initial carrying value Impairment exists when the carrying value of
of the loan and the proceeds received. The loan an asset or cash generating unit exceeds its
is subsequently measured as per the accounting recoverable amount, which is the higher of its fair
policy applicable to financial liabilities. value less costs of disposal and its value in use.
The fair value less costs of disposal calculation
1.3 Critical accounting estimates and assumptions
is based on available data from binding sales
The preparation of the Company’s standalone transactions, conducted at arm’s length, for
financial statements requires management to similar assets or observable market prices less
make judgements, estimates and assumptions incremental costs for disposing of the asset.
that affect the reported amounts of revenues, The value in use calculation is based on a DCF
expenses, assets and liabilities, and the model. The cash flows are derived from the
accompanying disclosures, and the disclosure budget for the next five years and do not include
of contingent liabilities. Uncertainty about these restructuring activities that the Company is not
assumptions and estimates could result in yet committed to or significant future investments
outcomes that require a material adjustment that will enhance the asset’s performance of the
to the carrying amount of assets or liabilities CGU being tested. The recoverable amount is
affected in future periods. sensitive to the discount rate used for the DCF
model as well as the expected future cash-
Estimates and assumption
inflows and the growth rate used for extrapolation
The key assumptions concerning the future and purposes.
other key sources of estimation uncertainty at
(c) Provisions and contingencies
the reporting date, that have a significant risk
of causing a material adjustment to the carrying The assessments undertaken in recognising
amounts of assets and liabilities within the provisions and contingencies have been made in
next financial year, are described below. The accordance with the applicable Ind AS. A provision
Company based its assumptions and estimates is recognized if, as a result of a past event, the
on parameters available when the standalone Company has a present legal or constructive
financial statements were prepared. Existing obligation that can be estimated reliably, and it
circumstances and assumptions about future is probable that an outflow of economic benefits
developments, however, may change due to will be required to settle the obligation. Where
market changes or circumstances arising that the effect of time value of money is material,
are beyond the control of the Company. Such provisions are determined by discounting the
changes are reflected in the assumptions when expected future cash flows.
they occur.
The Company has significant capital commitments
(a) Useful life of Property, plant and equipment in relation to various capital projects which are
and Intangible Assets not recognized on the balance sheet. In the
normal course of business, contingent liabilities
As described in Notee and fof the material
may arise from litigation and other claims against
accounting policies information, the Company
the Company. Guarantees are also provided in
reviews the estimated useful lives of property,
the normal course of business. There are certain
71
obligations which management has concluded, (e) Expected credit losses on financial assets
based on all available facts and circumstances, (chit fund business)
are not probable of payment or are very difficult
The impairment provisions of financial assets
to quantify reliably, and such obligations are
are based on assumptions about risk of probable
treated as contingent liabilities and disclosed
default and expected timing of collection. The
in the notes but are not reflected as liabilities in
Company uses judgment in making these
the standalone financial statements. Although
assumptions and selecting the inputs to the
there can be no assurance regarding the final
expected credit loss calculation based on the
outcome of the legal proceedings in which the
Company’s history of collections, customer’s
Company involved, it is not expected that such
creditworthiness, existing market conditions as
contingencies will have a material effect on its
well as forward looking estimates at the end of
financial position or profitability.
each reporting period.
(d) Defined benefit plans
(f) Leases
The determination of Company’s liability towards
Ind AS 116 defines a lease term as the non-
defined benefit obligation to employees is made
cancellable period for which the lessee has
through independent actuarial valuation including
the right to use an underlying asset including
determination of amounts to be recognised in
optional periods, when an entity is reasonably
the Statement of Profit and Loss and in other
certain to exercise an option to extend (or not
comprehensive income. Such valuation depend
to terminate) a lease. The Company considers
upon assumptions determined after taking into
all relevant facts and circumstances that create
account inflation, seniority, promotion and other
an economic incentive for the lessee to exercise
relevant factors such as supply and demand
the option when determining the lease term. The
factors in the employment market. Information
option to extend the lease term is included in
about such valuation is provided in notes to the
the lease term, if it is reasonably certain that the
standalone financial statements.
lessee would exercise the option. The Company
Further details about defined benefit obligations reassesses the option when significant events or
are provided in Note 30. changes in circumstances occur that are within
the control of the lessee.
72
CIN:U85110KA1966SGC001612
Notes forming part of the Standalone Financial Statements
2 Property, Plant and Equipment
Freehold Leasehold Building - Handling Electrical Furniture Office

Particulars Computers Vehicles Total
land land Freehold Equipment Equipment and fixtures Equipment
Gross carrying amount
As at April 01, 2022 31.93 21.54 176.60 0.32 1,993.60 211.71 3,303.85 300.40 1,243.94 7,283.89
Additions - - - - 719.64 18.11 871.39 81.96 301.25 1,992.35
Deductions - - - - (3.13) (0.58) (19.09) - (3.51) (26.31)
As at March 31, 2023 31.93 21.54 176.60 0.32 2,710.11 229.24 4,156.15 382.36 1,541.68 9,249.93
Additions - - - 1.33 300.65 47.23 87.78 - 261.32 698.31
Deductions - - - - (4.66) - (37.16) - (3.05) (44.87)
73
As at March 31, 2024 31.93 21.54 176.60 1.65 3,506.10 276.47 4,206.77 382.36 1,799.95 9,903.37
Accumulated depreciation As - - 33.58 0.27 668.38 138.30 1,709.03 126.30 669.64 3,345.50
at April 01, 2022
Depreciation for the year - - 4.71 - 228.43 37.31 631.73 38.71 183.49 1,124.38
Deductions - - - - (2.50) (0.54) (12.59) - (1.28) (16.91)
As at March 31, 2023 - - 38.29 0.27 894.31 175.07 2,328.17 165.01 851.85 4,452.97
Depreciation for the year - - 5.07 0.21 272.55 36.46 540.33 43.74 205.04 1,103.40
Deductions - - - - (0.65) - (37.15) - (1.23) (39.03)
As at March 31, 2024 - - 43.36 0.48 666.21 (288.47) 2,831.35 208.75 1,055.66 5,517.34
Net Carrying Amount

As at March 31, 2024 31.93 21.54 133.24 501.17 2,339.89 564.94 1,375.42 173.61 244.29 4,386.03
As at March 31, 2023 31.93 21.54 (361.69) 500.05 2,315.80 554.17 1,827.98 217.35 689.83 4,796.96
Notes :
1. Properties pledged as securities as at March 31, 2024 is Nil; (March 31, 2023: Nil).
2. Refer Note 41(a) for contractual commitments with respect to Property, Plant and Equipments.
CIN:U85110KA1966SGC001612
3 Capital work-in-progress (CWIP)
Particulars Capital work in progress Total

As at April 01, 2022 397.04 397.04
Additions 195.79 195.79
Deductions - -
As at March 31, 2023 592.83 592.83
Additions 13.58 13.58
Deductions (72.45) (72.45)
As at March 31, 2024 533.96 533.96
a. Capital work-in-progress ageing schedule:

As at March 31, 2024
Amount in Capital work-in-progress for a period of
Capital work-in-progress Less than More than Total
1-2 years 2-3 years
1 year 3 years
Projects in progress 13.58 195.79 94.00 230.59 533.96
Projects temporarily suspended - - - - -
Total 13.58 195.79 94.00 230.59 533.96

Amount in Capital work-in-progress for a period of
Capital work-in-progress Less than More than Total
1-2 years 2-3 years
1 year 3 years
Total 195.79 94.00 141.88 161.16 592.83
b Details of projects in progress where the completion is overdue or cost has exceeded the
estimated timelines as compared to its original plan:
Project in progress Budgeted Actual cost as on Reasons for
Project Cost March 31, 2024 delay
Warehouse, Kapanoor Ind Area, Kalburgi 752.91 533.96 Due to inclusion
of additional work.

Project in progress Budgeted Actual cost as at Reasons for
of additional work.
c. There are no borrowing cost capitalised during the year ended March 31, 2024 and March 31, 2023.
74
4. Investment properties
Particulars Freehold Leasehold Building Building - Total
land land Leasehold
As at April 01, 2022 53.06 100.95 1,604.08 2,686.59 4,444.68
Additions - - - - -
Deductions - - - - -
As at March 31, 2023 53.06 100.95 1,604.08 2,686.59 4,444.68
Additions - - - - -
As at March 31, 2024 53.06 100.95 1,604.08 2,686.59 4,444.68
Depreciation and
impairment
As at April 01, 2022 - - 119.81 359.23 479.04
Depreciation for the year - - 28.40 89.84 118.24
As at March 31, 2023 - - 148.21 449.07 597.28
As at March 31, 2024 - - 176.64 538.91 715.55
Net block as at March 31, 2024 53.06 100.95 1,427.44 2,147.68 3,729.13
Information regarding income and expenditure of Investment property

Particulars
March 31, 2024 March 31, 2023
Rent from investment properties (Refer note 20) 597.79 855.40
Direct operating expenses (including repairs and maintenance) (186.49) (107.07)
pertaining to investment property
Profit arising from investment properties before depreciation and 411.30 748.33
indirect expenses
Depreciation for the year (118.27) (118.24)
Profit arising from investment properties before indirect expenses 293.03 630.09
Notes:
1. Titles deeds of investment properties are in the name of the Company.
2. The Company is in the process of getting its investment property valued.
3. The Company has no restrictions on the realisability of its investment properties and no contractual
obligations to purchase or develop investment properties.
4. Investment Properties pledged as securities as at March 31, 2024 is Nil; (March 31, 2023: Nil)
75
CIN:U85110KA1966SGC001612
5 Other intangible assets

Particulars Computer Software Total
As at April 01, 2022 49.11 49.11
Additions - -
Deductions - -
As at March 31, 2023 49.11 49.11
Additions 4.24 4.24
Deletions - -
As at March 31, 2024 53.35 53.35
Accumulated amortization
As at April 01, 2022 48.26 48.26
Amortisation for the year 0.85 0.85
Deductions - -
As at March 31, 2023 49.11 49.11
Amortisation for the year 0.71 0.71
Deductions - -
As at March 31, 2024 49.82 49.82
As at March 31, 2024 3.53 3.53

As at March 31, 2023 - -
Note:
1. Intangible Properties pledged as securities as at March 31, 2024 is Nil; (March 31, 2023: Nil).
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5A. Right of Use Assets

The Company has taken offices & buildings on lease period of 3 to 5 years with option of renewal.
Disclosures as per Ind AS 116 - Leases are as follows:
Particulars Right of Use
As at April 01, 2022 3,139.34
Additions 300.35
Disposals -
As at March 31, 2023 3,439.69
Additions 1,133.23
Disposals -
As at March 31, 2024 4,572.92
Accumulated depreciation
As at April 01, 2022 2,111.08
Charge for the year 590.97
Adjustments for disposals -
As at March 31, 2023 2,702.05
As at March 31, 2024 3,426.61
Net carrying value as at March 31, 2024 1,146.31

Net carrying value as at March 31, 2023 737.64
The following are the expense recognised in the Statement of Profit and Loss
Year ended as at Year ended as at
Particulars
March 31, 2024 March 31, 2023
Depreciation expense of right-of-use assets 724.56 590.97
Interest expense on lease liabilities 131.78 103.84
Expense relating to short-term leases 981.62 1,089.63
Total amount recognised in the statement of Profit and Loss 1,837.96 1,784.44
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6 Investments
Particulars As at As at
March March
31, 2024 31, 2023
Non-current Investments
Investments in Equity Shares (fully paid up)
A. Others-Measured at Fair Value through Other Comprehensive Income (Quoted)
J K Tyre Industries Limited 1421.70 508.89
329,060 (March 31, 2023: 329,060) fully paid equity shares of INR 2 each
Bengal & Assam Co Limited 327.43 140.04
Total (A) 1749.13 648.93
B. Subsidiaries - Measured at Cost (Unquoted)

Karnataka State Marketing Communication & Advertising Limited 597.38 597.38
Mysore Chrome Tanning Company Limited 0.05 0.05
720,875 (March 31, 2023: 720,875) fully paid equity shares of INR 10 each -
issued at nominal value of Rs.5000 as per order of Government of Karnataka
Total (B) 597.43 597.43
C. Others-Measured at Fair Value through Other Comprehensive Income (Unquoted)

K T Apartment Owners’ Association* 0.04 0.04
35 (March 31, 2023: 35) fully paid equity shares of INR 100 each
K T Mansions Appartments Owners’ Association* 0.03 0.03
Hassan Mangalore Rail Development Company Limited 1819.06 1729.78
7,000,000 (March 31, 2023: 7,000,000) fully paid equity shares of INR 10 each
The Karnataka State Co-operative Apex Bank Limited - One -C- Class Ordinary Share: 26.41 26.15
1 (March 31, 2023: 1) fully paid equity shares of INR 1,000,000 each
Total (C) 1845.54 1756.00
Total (A+B+C) 4192.10 3002.36
Aggregate amount of quoted investments and market value thereof 1749.13 648.93
Aggregate amount of unquoted investments 2442.97 2353.43
Aggregate amount of impairment in value of investments - -
Total Investments 4192.10 3002.36
* The management has assessed that carrying value of the investments approximate to their fair value.
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CIN:U85110KA1966SGC001612
7 Other Financial Assets

As at March 31, 2024 As at March 31, 2023
Particulars
Non-Current Current Non-Current Current
Unsecured, considered good unless otherwise stated
A Chit Division
Loans and advances - Secured
-To Related Parties (Refer Note 39) - 1.55 - 5.75
-To Others 15,191.36 15,438.75 16,840.23 8,806.33
Considered doubtful - 986.41 - 934.11
Less: Allowance for doubtful advances - (986.41) - (934.11)
Advances recoverable in kind or for value to - 963.94 - 755.03
be received
B Other Divisions
Security Deposit 1,015.26 - 1,011.23 -
Rent Receivable - 448.95 - 433.68
Less: Allowance for Rent Receivable - - - -
Less: Provision for Doubtful Rent Receivable - (839.02) - (773.71)
Other receivable
Total 16,206.62 16,853.19 17,851.46 10,000.79
Other current financial assets ae given as security for borrowings as at March 31, 2024 is Nil; (March 31, 2023:
Nil).
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8 Other assets
Particulars
Prepaid Expenses - 1,225.50 - 1,207.69
Advance License Fee - 1,020.08 - 969.17
Balance with Government authorities - 138.23 - 332.92
(Refer note (ii) below)
Advance Income Tax and TDS (net of - -
provision for income tax)
Other Receivables - 2.30 - 5.39
Gratuity Fund account (Refer note 34) 47.78 - 63.21 -
Advances to Suppliers - 506.93 - 2,329.54
Considered doubtful - 1,204.95 - 1,029.79
Less: Provision for doubtful advances - (1,204.95) - (1,029.79)
Total 47.78 2,893.04 63.21 4,844.71
Notes:
(i) No advances were given to Directors or to firm / Private company where director is interested (March
31,2023: Nil)
(ii) Balance with Government Authorities mainly consist of input credit availed.
(iii) Other current financial assets ae given as security as at March 31, 2024 is Nil; (March 31, 2023: Nil).
8A Non Current tax asset (net)
Particulars As at March 31, 2024 As at March 31, 2023
Advances tax and Tax Deducted at source 3,645.55 4,108.74
Advances tax and TDS - -
Total 3,645.55 4,108.74
9 Inventories (At lower of cost or net realisable value)
As at March As at March
Particulars
31, 2024 31, 2023
Raw Materials
Paper and Straw board 54.39 83.64
Raw Material with Convertors 9.31 95.85
Finished goods 1,180.07 671.35
Stock in trade 16,699.16 16,263.08
Less: Provision for Expired/Damaged Stock (84.17) (57.34)
Less: Provision for Non Moving Stock (1,933.06) (1,994.50)
Total Inventory 15,925.70 15,062.08
Stock with hirers 291.83 296.76
Less: Provision for stock with hirers (291.83) (296.76)
Total 15,925.70 15,062.08
Notes:
(i) Inventory write downs/(reversal) are accounted, considering the nature of inventory, ageing and net realisable value for
Rs. (34.61) Lakhs (March 31, 2023 Rs. 16.77 Lakhs).
The changes in write downs are recognised as an expense during the year and included in ‘changes in the value of
inventories’ in the statement of profit and loss.
(ii) Inventories are hypothecated as security as at March 31, 2024 is Nil; (March 31, 2023: Nil).
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10 Trade Receivables ~ Current
Particulars
31, 2024 31, 2023
Secured 6.27 2.00
Unsecured 7,448.92 3,910.11
Credit impaired 931.41 783.81
8,386.60 4,695.92
Less: Allowance for doubtful debts (931.41) (783.81)
Total 7,455.19 3,912.11
Notes:
1. No trade receivables are due from directors or other officers of the Company either severally or jointly with
any person nor any trade receivables are due from firm or private companies respectively in which any
director is interested.
2. Trade receivables are non-interest bearing and are generally on terms of 0 to 30 days.
3. Trade receivables are given as security as at March 31, 2024 is Nil; (March 31, 2023: Nil).
4. Movement in allowance for doubtful debts
Particulars
31, 2024 31, 2023
Balance as per last financial statements 783.81 764.69
Add: Allowance for the year (Refer Note 27) 158.12 19.12
Less: Reversal of Provision (Refer Note 20) (10.52) -
Total Trade receivables 931.41 783.81
5. Trade receivables ageing Schedule:
Outstanding for following periods from due date of payment
Particulars Less than 6 Months 1-2 More than 3 Total
2-3 years
6 Months - 1 year years years
Undisputed Trade receivables - 2,501.18 4,451.42 502.59 - - 7,455.19
Considered Good
Undisputed Trade receivables - - - 62.67 196.98 671.76 931.41
credit impaired
Total 2,501.18 4,451.42 565.26 196.98 671.76 8,386.60
Particulars Less than 6 Months 1-2 More than 3 Total
2-3 years
6 Months - 1 year years years
Undisputed Trade receivables - 3,133.75 576.37 201.99 - - 3,912.11
Considered Good
Undisputed Trade receivables - - - 22.85 59.57 701.39 783.81
credit impaired
Total 3,133.75 576.37 224.84 59.57 701.39 4,695.92
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CIN:U85110KA1966SGC001612
11 Cash and cash equivalents
Particulars
31, 2024 31, 2023
Balances with banks
In current accounts 3,553.99 3,161.94
Cash & Stamp on hand (*) 2,077.20 1,011.69
Total 5,635.43 4,181.43
(*) includes Credit Card Collections
1. There are no repatriation restrictions with regard to cash and cash equivalents as at as at March 31, 2024 is
Nil; (March 31, 2023: Nil).
12 Bank Balances other than Cash and cash equivalents
Non- Current Non- Current
Current Current
Fixed Deposit with Banks (Original maturity within 3 to - 30,682.44 - 19,215.19
12 months)#
Fixed Deposit with Banks (Original maturity of more 4,256.45 - 4,170.72 -
than 12 months)*
Interest Accrued on Bank Deposits - 1,366.66 - 1,072.71
Balances with banks in earmarked accounts - - - -
- In margin money accounts for Bank Guarantee - - - -
issued
Total Bank 4,256.45 32,049.10 4,170.72 20,287.90
# Statutory Deposits for Chit Operations as at March 31, 2024 is Rs 5,958.03 lakhs (March 31, 2023: Rs 4,629.68
lakhs)
* Bank Deposits given on lien as at March 31, 2024 is Rs 4,050.00 lakhs (March 31, 2023 : Rs 50.00 lakhs)
13 Equity share capital

No. of shares Rs. in Lakhs No. of shares Rs. in Lakhs
Authorised share capital
Equity shares of Rs. 100 each 7,500,000 7,500.00 7,500,000 7,500.00
Issued, subscribed and paid-up share
capital
Equity shares of Rs. 100 each 4,273,477 4,273.48 4,273,477 4,273.48
Total 4,273,477 4,273.48 4,273,477 4,273.48
(i) Reconciliation of equity shares outstanding at the beginning and at the end of the year:
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CIN:U85110KA1966SGC001612

Particulars
No. of shares Rs. in Lakhs No. of shares Rs. in Lakhs
Outstanding at the beginning of the year 4,273,477 4,273.48 4,273,477 4,273.48
Changes during the year - - - -
Outstanding at the end of the year 4,273,477 4,273.48 4,273,477 4,273.48
(ii) Rights, Preferences and Restrictions attached to equity shares:
The Company has one class of shares having par value of Rs.10 per share. Each shareholder is eligible for
one vote per share held. The final dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion
to their shareholding.
(iii) Details of shareholder holding more than 5% Shares in the Company:

Name of the Shareholder No. of % of No. of % of
shares shareholding shares shareholding
Government of Karnataka 2,255,817 52.79% 2,255,817 52.79%
Karnataka State Industrial Infrastructure & 2,017,660 47.21% 2,017,660 47.21%
Development Corporation Limited
(iv) Shareholding of Promoters

Name of the Shareholder No. of % of No. of % of
shares shareholding shares shareholding
Government of Karnataka 2,255,817 52.79% 2,255,817 52.79%
Karnataka State Industrial Infrastructure & 2,017,660 47.21% 2,017,660 47.21%
Development Corporation Limited
(v) The Company has not issued any equity shares under ESOP (Employee Stock Option).
(vi) In the period of five years immediately preceding March 31, 2024:
i) The Company has not allotted any equity shares without payment being received in cash
ii) The Company has not allotted any equity shares by way of bonus issue.
iii) The Company has not Buy-back any equity shares.
(vii) Objective, policy and procedure of capital management, refer Note 35.
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CIN:U85110KA1966SGC001612
14 Other equity
(a) General reserve
Balance as per last financial statements 19,125.69 19,125.69
Add: Addition during the year - -
Balance at the end of the year 19,125.69 19,125.69
(b) Chit Reserve Fund
Add: Transfer from Retained earning 175.14 111.73
Balance at the end of the year 1,103.35 928.21
(c) Retained earnings
Add: Profit for the year 10,386.36 6,087.18
Add: Other comprehensive income arising from 0.87 19.92
remeasurement of defined benefit obligation (net of tax)
Less: Transfer to Chit Reserve fund (175.14) (111.73)
Less: Dividend paid (1,827.87) (1,105.19)
Other comprehensive income (OCI)
Items that will not be reclassified to profit and loss
(d) Equity Instruments through OCI
Add/(Less): Addition during the year 1,189.74 (19.01)
Add/(Less): Tax impact on additions (300.79) 4.78
Total Other Equity 61,720.25 52,271.94
The description of the nature and purpose of each reserve within equity is as follows:
(a) General reserve
The General reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes.
(b) Chit Reserve Fund
This Reserve is maintained as per the requirements of Chit Fund Act, 1982. During the year, the Company
has transferred 10% of its profit relating to chit operations to the reserve.
(c) Equity Instruments through OCI
The Company has elected to recognise changes in the fair value of certain investment in equity instrument
in other comprehensive income. This amount will be reclassified to Retained earnings on derecognition of
equity instrument.
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15 Other Financial liabilities
Particulars
Lease liability (Refer Note 15A below ) 438.14 725.06 342.75 382.77
Total A 438.14 725.06 342.75 382.77
Deposit from customers and others - 1,529.02 - 1,518.91
Interest Accrued - - - 53.88
Payable to Subsidiary Company (Refer Note 39) - 26.65 - 10.59
Non Prized Chit Subscription 17,324.71 11,337.64 14,803.97 9,365.50
Payable to Capital Vendors - 3.22 - 118.03
Payable to Employees 185.83 442.19 179.35 381.88
Grants Unutilised - 247.05 - 247.05
Chit Payables -
-From Related Party (Refer Note 39) - 7.50 - -
-From Others - 3,572.08 - 2,935.03
Liquor Division Related Payable* - 3,531.53 - -
Other payables** 29.20 490.46 - 229.65
Total B 17,539.74 21,187.34 14,983.32 14,860.52
Total (A+B) 17,977.88 21,912.40 15,326.07 15,243.29
*Against which security guarantee given for Rs.3,525.00 lakhs. Refer Note No 40 (viii)
**Other Payables include Rs. 210.46 lakhs (PY: Rs. 210.46 lakhs ) of advances received from various Government
departments in respect of contract to supply imported cement.
15A Lease Liability
Particulars
31, 2024 31, 2023
Balance as per last financial statements 725.52 1,081.88
Additions during the year 1,133.23 288.53
Deletions during the year - (117.65)
Interest on lease liabilities accrued during the year 131.78 103.84
Balance at the year end 1,163.20 725.52
Current 725.06 382.77

Non-current 438.14 342.75
Contractual maturities of lease liabilities on undiscounted basis

Less than one year 682.91 406.72
One to five years 734.13 479.17
More than five years - -
Total 1,417.04 885.89
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16 Provisions
Non-current Current Non-current Current
Provision for employee benefits (Refer Note 34)
Compensated Absences 307.65 169.40 337.29 137.40
Employee Death Relief Fund 15.38 78.80 15.20 77.93
Provision for Insurance Claim (Refer Note 40(i)) 402.42 - 389.59 -
Total 725.45 248.20 742.08 215.33
a Movement of Provision for insurance Claim

Particulars
31, 2024 31, 2023
Addition during the year 12.83 25.66
Balance at the year end 402.42 389.59
17 Other liabilities
Particulars
Statutory dues (provident fund and tax - 235.62 - 236.59
deducted at source etc.)
Advance from Customers - 2,380.05 - 1,006.93
Total - 2,615.67 - 1,243.52
18 Trade payables
Particulars
31, 2024 31, 2023
Total outstanding dues of micro enterprises and small enterprises 3,129.12 2,647.61
Total outstanding dues of creditors other than micro enterprises and 7,915.05 6,865.45
small enterprises
Total 11,044.17 9,513.06
(i) Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force
from 2nd October 2006, certain disclosures are required to be made relating to Micro, Small and Medium
Enterprises. The Company has identified Micro, Small and Medium enterprises as per section 22 of the
Micro, Small and Medium Enterprises Development Act 2006 during the FY 2023-24
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CIN:U85110KA1966SGC001612
Particulars
31, 2024 31, 2023
a the principal amount and the interest due thereon (to be shown separately)
remaining unpaid to any supplier at the end of each accounting year;
Principal amount due to small and medium enterprise 3,129.12 2,647.61
Interest due on above - -
b The amount of interest paid by the company in terms of section 16 of the - -
Micro, Small and Medium Enterprises Development Act, 2006 along with
the amounts of payment made to the supplier beyond the appointed day
during the accounting year.
c The amount of interest due and payable for the period of delay in making - -
payment (which have been paid beyond the appointed day during the year)
but without adding the interest specified under Micro Small and Medium
Enterprises Development Act, 2006 *
d The amount of interest accrued and remaining unpaid at the end of the - -
accounting year
e The amount of further interest remaining due and payable even in the - -
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure u/s 23 of the Micro Small and Medium Enterprises
Development Act, 2006.*
*The above information has been furnished to the extent such parties have
been identified as MSME by the Company. The same has been relied
upon by the auditors.
(ii) Trade Payables aging schedule

As at March 31, 2024 Outstanding for following periods from due date of
payment
Less than More than
Particulars 1-2 years 2-3 years Total
1 year 3 years
Micro and small Enterprises 2,358.83 370.44 167.64 232.21 3,129.12
Other than Micro and small Enterprises 3,934.95 1,498.69 173.94 2,307.47 7,915.05
Grand total 6,293.78 1,869.13 341.58 2,539.68 11,044.17
As at March 31, 2023 Outstanding for following periods from due date of
payment
Less than 2-3 More than
Particulars 1-2 years Total
1 year years 3 years
Micro and small Enterprises 839.53 1,476.23 70.76 261.09 2,647.61
Other than Micro and small Enterprises 3,889.73 414.72 197.10 2,363.90 6,865.45
Grand total 4,729.26 1,890.95 267.86 2,624.99 9,513.06
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19 Revenue from Operations

Particulars
March 31, 2024 March 31, 2023
Sale of products 335,386.49 280,344.90
Income Earned on Chit Fund Business
Foreman’s Commission 2,001.22 1,765.15
Dividend 139.58 147.24
Default Interest 208.33 224.29
Other Operating Income
Processing Charges 43.22 32.44
Commission and service charges 17.24 17.68
Total 337,796.08 282,531.70
Disaggregation of Revenue from contracts with customers
a Revenue based on Geography

Particulars
March 31, 2024 March 31, 2023
Domestic 337,796.08 282,531.70
Export - -
Revenue from Operations 337,796.08 282,531.70
b Timing of revenue recognition

Particulars
March 31, 2024 March 31, 2023
Goods or services transferred at a point in time 337,796.08 282,531.70
Goods or services transferred at a over time - -
337,796.08 282,531.70
c Revenue based on business segment

Particulars
March 31, 2024 March 31, 2023
Liquor 318,708.98 266,072.84
Note Books & Stationery 14,339.28 9,984.71
Pharmaceutical 1,456.63 1,441.75
Industrial Products 297.13 1,988.27
Chit Business 2,349.12 2,136.68
Others 644.94 907.45
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d Reconciling the amount of revenue recognised in the statement of profit or loss with the contracted
price
Particulars
March 31, 2024 March 31, 2023
Revenue as per contracted price 337,811.18 282,531.70
Adjustments
Sales Return 15.10 -
Trade and cash discounts - -
Revenue from contact with customer 337,796.08 282,531.70
e Contract assets and contract liabilities

The Company has recognised the following revenue related contract assets and liabilities
Particulars
March 31, 2024 March 31, 2023
Trade receivables (Refer Note 10) 7,455.19 3,912.11
Advance from customers (Refer Note 17) 2,380.05 1,006.93
20 Other Income
Particulars
March 31, 2024 March 31, 2023
Interest Income on financial assets measured at amortised cost
-Fixed Deposits 2,136.46 1,106.21
-Other financial assets and deposits 60.29 164.56
Rent (^)(#) 597.79 855.40
Dividend(*) 638.58 280.69
Excess Provision no longer required 172.35 131.13
Profit on sale of property, plant and equipment - 6.11
Miscellaneous income 158.65 517.74
Total 3,764.12 3,061.84
(*) includes dividend received from subsidiary amounting to Rs.627.06 lakhs (PY: Rs.274.58 lakhs). Refer note 39
(^) includes rent received from subsidiary amounting to Rs. 2.13 (PY: Rs. 3.64 lakhs). Refer note 39
21 Cost of materials consumed

Particulars
March 31, 2024 March 31, 2023
Inventory at the beginning of the year 179.49 91.03
Add: Purchases during the year 2,821.01 1,855.45
Less: Inventory at the end of the year 63.70 179.49
Total 2,936.80 1,766.99
89
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22 Purchases of Stock-in-Trade
Particulars
March 31, 2024 March 31, 2023
Liquor 290,107.21 243,126.50
Notebooks and Stationery 9,138.80 5,469.51
Others 528.40 808.37
Total 301,230.30 252,556.61
23 Changes in inventories of finished goods and stock-in-trade

Particulars
March 31, 2024 March 31, 2023
Inventories at the end of the year
Traded goods 14,681.93 14,211.24
15,862.00 14,882.59
Inventories at the beginning of the year
Traded goods 14,211.24 13,040.99
Finished goods 671.35 1,317.85
14,882.59 14,358.84
Total (979.41) (523.75)
24 Employee Benefits Expense

Particulars
March 31, 2024 March 31, 2023
Salaries, Wages, Gratuity (Refer Note 34) 1,700.72 1,498.85
Contribution to Provident & Other funds (Refer Note 34) 175.13 147.45
Staff Welfare and Training Expenses 127.98 214.02
Total 2,003.83 1,860.32
25 Finance Costs
Particulars
March 31, 2024 March 31, 2023
Interest on lease liabilities (Refer note 15A) 131.78 103.84
Interest on financial liabilities measured at amortised cost 2.53 4.62
Bank charges 73.53 71.15
Guarantee Commission 30.68 0.31
Total 238.52 179.92
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26 Depreciation and amortization expense
Particulars
March 31, 2024 March 31, 2023
Depreciation on Property, plant and equipment (Refer note 2) 1,103.40 1,124.38
Depreciation on Investment Properties (Refer note 4) 118.27 118.24
Amortization of intangible assets (Refer note 5) 0.71 0.85
Depreciation of Right-of-use assets (Refer note 5A) 724.56 590.97
Total 1,946.94 1,834.44
27 Other Expenses
Particulars
March 31, 2024 March 31, 2023
Conversion charges - Notebooks 320.54 254.67
Packing Material & Secondary Freight 1,930.21 1,694.52
Outsourcing expenses 7,661.79 7,372.10
Rent (Refer note 5A) 981.62 1,089.63
Repairs & Maintenance :
- Buildings 186.49 107.07
- Vehicle 86.77 65.28
- Others 460.27 241.68
Insurance 162.55 168.65
Rates and taxes 5,324.30 5,186.59
Advertising and sales promotion (#) 354.40 473.33
Communication costs 70.16 81.74
Printing and stationery 220.70 205.02
Payment to the Auditors(Refer Note 28) 10.08 10.08
Legal and professional fees 667.71 710.19
Travelling and conveyance 159.21 293.16
Electricity & Water 297.52 237.35
Security Services 91.47 90.02
Commission 749.69 608.53
Donation 202.25 310.00
Corporate Social Responsibility expenditure (Refer note 37) 147.90 90.66
Directors Sitting fees 0.60 1.64
Loss on sale of property, plant and equipment (net) 2.94 -
Miscellaneous 303.24 295.05
Total 20,881.28 19,839.73
(#) includes advertising and sales promotion paid to subsidiary amounting to Rs.82.86 Lakhs (PY: Rs 24.45
lakhs) - Refer Note 39.
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28 Payment to the Auditor Included under Legal and professional Fees :

Particulars
March 31, 2024 March 31, 2023
- Audit fee 9.17 9.17
- Tax audit fee 0.91 0.91
Total 10.08 10.08
29 Tax expense
A Tax expense comprises of:
Particulars
March 31, 2024 March 31, 2023
Statement of Profit and Loss
Current tax on continuing business 3,286.46 2,020.42
Current tax on discontinuing business 1.34 (0.71)
Deferred tax charge/(credit) (491.04) (65.72)
Adjustment of tax relating to earlier years 124.14 35.29
Income tax expense reported in the Statement of Profit and Loss 2,920.90 1,989.28
Statement of Other Comprehensive Income
Deferred tax charge/(credit)
On Re-measurement gains/ (losses) on defined benefit plans (0.29) (6.69)
On Fair value of Equity instruments (300.79) 4.78
Deferred tax charged to OCI (301.08) (1.91)
B Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate
The major components of income tax expense and the reconciliation of expected tax expense
based on the domestic effective tax rate:
Particulars
March 31, 2024 March 31, 2023
Accounting profit before tax from continuing operations 13,301.94 8,079.28
Profit/(loss) before tax from discontinued operations 5.32 (2.82)
Accounting profit before tax 13,307.26 8,076.46
Effective tax rate in India 25.168% 25.168%
Current tax expenses on Profit before tax expenses at the enacted 3,349.17 2,032.85
income tax rate in India
Adjustments:
Inadmissible expenditure 88.36 100.84
Eligible Deductions under the IT Act (206.54) (117.08)
Other adjustment (434.23) (62.62)
Total income tax expense 2,920.90 1,989.28
Effective tax rate 21.95% 24.63%
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C Deferred tax
Statement of Statement of
Balance Balance
profit and profit and
sheet sheet
loss and OCI loss and OCI
for the year for the year
March 31, March 31,
ended March ended March
2024 2023
31, 2024 31, 2023
Accelerated depreciation for tax (8.78) (59.08) 50.30 41.70
purposes
Unrealised Rental Income - (49.78) 49.78 13.87
Provision for employee benefit expenses 131.74 142.91 (11.17) (47.07)
Provision for doubtful advances/debts 1,722.19 1,327.65 394.54 67.07
Lease Liabilities and Right of Use Assets 4.25 (3.05) 7.30 (16.54)
Fair value of Equity Investments (296.01) 4.78 (300.79) 4.78
Deferred tax expense/(income) 189.96 63.81
Net deferred tax assets/(liabilities) 1,553.39 1,363.43
As at As at
Reflected in the balance sheet as follows:
March 31, 2024 March 31, 2023
Deferred tax asset 1,858.18 1,475.34
Deferred tax liability (304.79) (111.91)
Deferred Tax Asset (Net) 1,553.39 1,363.43
Recognised deferred tax assets and liabilities

Deferred tax assets is recognized to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences and carried forward tax losses can be utilised.
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax
assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same tax authority.
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30 Discontinued Operations and assets held for sale

A Hire purchase operations- Discontinued Operations
The Company has discontinued its Hire Purchase Operations in July 2008, which was also a separate
segment as per Ind AS-108, Operating Segments. The Company accounts for interest income from Hire
Purchase Operations on cash basis. The scheduled EMI periods terminated in 2013-14. The results of
Hire Purchase Operations for the year are presented below:
Particulars
March 31, 2024 March 31, 2023
Other income 5.56 1.80
Other expenses 0.24 4.62
Profit/(Loss) before tax from discontinuing operations 5.32 (2.82)
Tax expense on discontinuing operations (1.34) 0.71
Profit/(Loss) for the year from discontinuing operations 3.98 (2.11)
Assets
- -
Liabilities - -
B Investment in equity shares - Assets held for Sale

The Government of Karnataka, vide its order no AHD 172 AFT 2010 dated March 05, 2011, had advised the
company to transfer the shares to Karnataka State Agricultural Produce Processing and Export Corporation
(Corporation) which was also approved in the Board Meeting of the Company held on June 30, 2011. This
is classified as an FVTOCI financial asset and carried at fair value through OCI. The Company did not
pledge the financial asset nor received any collateral for it. The parties to the transaction are in the process
of finalising the consideration as at the year end.
Unquoted - Fully paid equity shares
31, 2024 31, 2023
Associate
Food Karnataka Limited
50,000 (March 31, 2023: 50,000) fully paid equity shares of INR 10 each 5.00 5.00
5.00 5.00
Liabilities associated with the assets held for sale - -
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31 Other Comprehensive Income

Items that will not be reclassified to profit or loss
March 31, 2024 March 31, 2023
Gain/(loss) on FVTOCI of Investment in equity shares of: 1,189.74 (19.01)
- J K Tyre Industries Limited 912.81 122.74
- Bengal & Assam Co Limited 187.39 49.74
- The Karnataka State Co-operative Apex Bank Limited 0.26 1.23
- Hassan Mangalore Rail Development Company Limited 89.28 (192.72)
Re-measurement gains (losses) on defined benefit plans 1.16 26.61

Total Other Comprehensive Income 1,190.90 7.60
32 Earnings Per Share

Particulars
March 31, 2024 March 31, 2023
Profit attributable to equity holders of the company Continuing 10,382.38 6,089.29
operations
Discontinued operations 3.98 (2.11)
Total 10,386.36 6,087.18
No. of shares used for Basic and diluted Earnings Per Share 4,273,477 4,273,477
Face Value of Share (Rs.) 100.00 100.00
Earnings per share for continuing operations
Basic and Diluted (Rs.) 242.95 142.49
Earnings per share for discontinued operations
Basic and Diluted (Rs.) 0.09 (0.05)
Earnings per share for continuing and discontinued operations
33 Dividend Paid
Cash dividends on equity shares paid:
March 31, 2024 March 31, 2023
Dividend for the year ended March 31, 2023 March 31, 2022
Dividend paid 1,827.87 1,105.19
The Board has proposed Dividend of @ 30% of Profit after tax for the year which will have a outflow of
Rs. 3,115.91 lakhs (March 31, 2023: Rs. 1,827.87 lakhs). The Proposed dividends is subject to approval at the
annual general meeting and are not recognised as a liability as at March 31, 2024.
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34 Employee benefits
A. Define Contribution Plan
Amount of Rs. 175.13 lakhs (March 31, 2023: Rs. 147.45 lakhs) is recognised as expenses and included
in Note No. 24 “Employee benefits expense”.
For the year For the year
Particulars ended March ended March
31,2024 31,2023
Contribution to Provident Fund & Other Funds 175.13 147.45
Total 175.13 147.45
B. Defined Benefit Plans and other long term benefits:

Gratuity(Funded)
The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or
liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized
in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual
return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to
measure the defined benefit obligations recognized in other comprehensive income.
Leave encashment (Unfunded)
The Company has a policy on leave encashment which are both accumulating and non-accumulating
in nature. The expected cost of accumulating leave encashment is determined by actuarial valuation
performed by an independent actuary at each Balance Sheet date using projected unit credit method on the
additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at
the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period
in which the absences occur.
Death Relief fund (Unfunded)
The Company has a policy on Death relief fund for its employees. Each and every member is covered for
death risk. In case of death the beneficiary gets certain fixed amount including company’s contribution. The
expected cost of accumulated death relief liability is determined by actuarial valuation performed by an
independent actuary at each Balance Sheet date using projected unit credit method.
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i. Disclosure of Employee Benefits as per Ind AS 19

As at As at
Particulars
March 31, 2024 March 31, 2023
Defined benefit liability - Gratuity (47.78) (63.21)
Liability for Compensated Absences 477.05 474.69
Liability for Death Relief fund 94.18 93.13
Total employee benefit liabilities 523.45 504.61
Current 248.20 215.33
ii. Amount recognized in Balance Sheet - as per actuarial valuation

Gratuity - Defined Compensated
Death relief fund
Particulars benefit plan absences
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Present Value of Obligation at the 662.00 793.85 477.05 474.69 94.18 93.13
end of the year
Fair Value of Plan Assets the end of 709.78 857.06 - - - -
the year
Funded Status 47.78 63.21 - - - -
Asset/(liability) recognized in 47.78 63.21 (477.05) (474.69) (94.18) (93.13)
Balance Sheet
iii. Reconciliation of the net defined benefit liability-Change in Present Value of Obligation
Death relief fund
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Present Value of Obligation at the 793.85 1,016.28 474.69 650.48 93.13 104.36
beginning of the year
Interest Cost 50.39 54.33 - - 6.31 6.86
Current service cost 24.65 26.50 133.21 70.66 6.81 6.73
Benefits paid (209.02) (291.28) (130.85) (246.45) (10.63) (20.95)
Actuarial loss/(gain) on obligation 2.13 (11.98) - - (1.44) (3.87)
recognised in the statement of
Other Comprehensive Income
Balance as at the end of the year 662.00 793.85 477.05 474.69 94.18 93.13
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iv. Change in Fair Value of Plan Assets

Gratuity - Defined benefit plan
Particulars
2023-24 2022-23
Fair Value of Plan Assets the beginning of the year 857.06 1,007.05
Interest Cost - -
Employer Contribution 4.70 74.45
Benefits paid (209.02) (291.28)
Return on plan assets excluding actual return on plan assets 55.19 56.08
Actuarial gain /(loss) on obligation 1.85 10.76
Balance as at the end of the year 709.78 857.06
v. Expense recognised in Statement of Profit & Loss

Particulars Death relief fund
benefit plan absences
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Current service cost 24.65 26.50 133.21 70.66 6.81 6.73
Past service cost - - - - - -
Remeasurement of obligation - - - - - -
Net Interest on Net Defined Benefit (4.80) (1.75) - - 6.31 6.86
Obligations
Expense recognised in Statement of 19.85 24.75 133.21 70.66 13.12 13.59
Profit & Loss before tax
vi. Remeasurements recognised in Other Comprehensive Income

Death relief fund
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Actuarial loss/ (gain) on obligation 0.28 (22.74) - - (1.44) (3.87)
vii. Assets
The gratuity assets are managed by LIC of India.
The major categories of plan assets of the fair value of the total plan assets of Gratuity are as
follows:
Particulars 2023-24 2022-23
(%) of Present value of Obligation
Funding Ratio 108.00% 107.20%
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viii. Assumptions
With the objective of presenting the plan assets and plan liabilities of the defined benefits plans and
post retirement benefits at their fair value on the balance sheet, assumptions under Ind AS 19 are set
by reference to market conditions at the valuation date The significant actuarial assumptions were as
follows:
Death relief fund
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Discount Rate 7.19% 7.31% 7.19% 7.31% 7.19% 7.31%
Salary Escalation Rate 7.00% 7.00% 0.00% 0.00% 0.00% 0.00%
Expected Return on assets 7.31% 6.24% 0.00% 0.00% 0.00% 0.00%
Attrition Rate 10.00% 10.00% 10.00% 10.00% 1.00% 1.00%
Mortality rate during Mortality Mortality Mortality Mortality Mortality Mortality
employment - Indian - Indian - Indian - Indian - Indian - Indian
Assured Assured Assured Assured Assured Assured
Lives Lives Lives Lives Lives Lives
Mortality Mortality Mortality Mortality Mortality Mortality
(2012-14) (2012-14) (2012-14) (2012-14) (2012-14) (2012-14)
Ultimate Ultimate Ultimate Ultimate Ultimate Ultimate
ix. Sensitivity Analysis

As at As at
Particulars March 31, 2024 March 31, 2023
Increase Decrease Increase Decrease
Gratuity
Discount Rate (100 bps movement) (16.65) 17.81 (19.61) 20.99
Salary escalation rate (100 bps movement) 11.72 (11.76) 15.53 (15.63)
Attrition Rate (100 bps movement) 0.13 (0.17) (0.09) 0.09
Compensated absences - - - -
Attrition Rate (100 bps movement) (0.91) 0.98 (0.88) 0.95
Death Relief Fund - - - -
Attrition Rate (100 bps movement) 0.70 (0.74) 0.58 (0.61)
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The followings are the expected future benefit payments for the defined benefit plan :
Death relief fund
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Gratuity
Within the next 12 months 261.66 232.57 169.90 136.78 39.71 29.30
Between 2 to 5 years 290.41 479.39 237.09 297.84 37.23 55.22
Beyond 5 years 273.32 278.04 284.89 266.64 40.95 29.79
Total expected payments 825.39 990.00 691.88 701.26 117.89 114.31
Weighted average duration of defined plan obligation (based on discounted cash flows)
Gratuity - Defined benefit plan Death relief fund - Defined contribution plan
Particulars
2023-24 2022-23 2023-24 2022-23
Gratuity 5.52 5.86 5.52 5.86
Description of risk exposures

Valuations are performed on certain basic set of pre-determined assumptions which may vary over time. Thus,
the Company is exposed to various risks in providing the above benefit which are as follows:
Interest rate risk The plan exposes the Company to the risk of fall in interest rates. A fall in interest
rates will result in an increase in the ultimate cost of providing the above benefit and
will thus result in an increase in the value of liability (as shown in financial statements).
Liquidity risk This is the risk that the Company is not able to meet the short term benefit payouts.
This may arise due to non availability of enough cash/cash equivalent to meet the
liabilities or holding of illiquid assets not being sold in time.
Salary escalation risk The present value of the above benefit plan is calculated with the assumption of
salary increase rate of plan participants in future. Deviation in the rate of increase
in salary in future for plan participants from the rate of increase in salary used to
determine the present value of obligation will have a bearing on the plan’s liability.
Demographic risk The company has used certain mortality and attrition assumptions in valuation of the
liability. The Company is exposed to the risk of actual experience turning out to be
worse compared to the assumption.
Regulatory risk Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity
Act, 1972 (as amended from time to time). There is a risk of change in regulations
requiring higher gratuity payouts (for example, increase in the maximum liability of
gratuity to INR 20 lakhs).
Investment risk The probability or likelihood of occurrence of losses relative to the expected return on
any particular investment.
Asset liability The duration of the liability is longer compared to duration of assets exposing the
mismatching or company to market risks for volatilities/fall in interest rate.
market risk
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35 Capital management
The Company’s capital management is intended to maximise the return to shareholders for meeting the
long and short term objectives of the Company through the leveraging of the debt and equity balance.
The Company determines the amount of capital required on the basis of annual and long-term operating
plans and strategic investment plans. The funding requirements will be met through long and short term
borrowings. The Company monitors the capital structure on the basis of debt to equity ratio and the
maturity of the overall debt of the Company.
The following table summarises the capital of the Company:
As At As At
Particulars
March 31, 2024 March 31, 2023
Total equity (Note 13 and 14) 65,993.73 56,545.42
Debt - -
Cash equivalents including other bank balances (Note 41,940.98 28,640.05
11 and 12)
Net debt (41,940.98) (28,640.05)
Total equity plus net debt 24,052.75 27,905.37
Gearing Ratio (Net debt to capital ratio) - -
No changes were made in the objectives, policies or processes for managing capital during the years
ended March 31, 2024 and March 31, 2023.
36 Financial risk management

The Company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the
sources of risk which the entity is exposed to and how the entity manages the risk and the related impact
in the financial statements.
Risk Exposure arising from Measurement
Credit risk Other bank balances, trade Ageing analysis and recoverability
receivables, investment carried at assessment
amortised cost, loans, other financial
assets and financial guarantees
Liquidity risk Other financial liabilities & collaterals Rolling cash flow forecasts
taken as security
Market risk- foreign exchange Recognised financial assets and Sensitivity analysis
liabilities not denominated in INR
Market risk-security prices Investment in equity securities Sensitivity analysis
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i Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial
loss to the Company. The Company is exposed to credit risk from its operating activities (predominantly
trade receivables) and from its financing activities, including deposits with banks and financial institutions,
foreign exchange transactions and other financial instruments.
Credit risk management
Customer credit risk is managed by each business unit subject to the Company’s established policy,
procedures and control relating to the customer credit risk management. The Company uses financial
information and past experience to evaluate credit quality of majority of its customers and individual credit
limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness
of its counter parties are periodically monitored and taken up on case to case basis. There is no material
expected credit loss based on the past experience. However, the Company assesses the impairment of
trade receivables on case to case basis and has accordingly created loss allowance.
The credit risk on cash and bank balances is limited because the counter parties are banks with high credit
ratings assigned by accredited rating agencies.
The Company assesses and manages credit risk of financial assets based on the following categories
arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.
Classification of financial assets under various stages
The Company classifies its financial assets in three stages having the following characteristics:
Stage 1: unimpaired and without significant increase in credit risk since initial recognition on which a
12-month allowance for ECL is recognised;
Stage 2: a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised;
and
Stage 3: objective evidence of impairment, and are therefore considered to be in default or otherwise credit
impaired on which a lifetime ECL is recognised.
All financial assets are deemed to have suffered a significant increase in credit risk when they are 30 days
past due (DPD) or one instalment overdue on the reporting date and are accordingly transferred from stage
1 to stage 2. For stage 1 an ECL allowance is calculated based on a 12-month point in time (PIT) probability
of default (PD). For stage 2 and 3 assets a life time ECL is calculated based on a lifetime Probability of
default.
The Company calculates impairment on financial instruments under ECL approach prescribed under Ind
AS 109 ‘Financial instruments’. ECL uses three main components: PD, LGD (loss given default) and EAD
(exposure at default) along with an adjustment considering forward macro economic conditions.
Financial instruments other than Loans were subjected to simplified ECL approach under Ind AS 109
‘Financial instruments’.
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Credit risk exposure
Provision for expected credit losses
The Company provides for expected credit loss based on 12 month and lifetime expected credit loss basis
for following financial assets:
Carrying amount
Gross carrying Expected credit
Particulars net of impairment
amount losses
provision
Trade receivables 8,386.60 (931.41) 7,455.19
Cash and cash equivalents 5,635.43 - 5,635.43
Other bank balance 36,305.55 - 36,305.55
Other financial assets 4,423.02 (1,994.87) 2,428.15

Gross carrying Expected credit Carrying amount net of
Particulars
amount losses impairment provision
31 March 2022
Estimated gross Expected credit Carrying amount net of
Particulars
carrying amount losses impairment provision
Other financial assets 24,701.86 (1518.30) 23,183.56
Reconciliation of loss allowance provision - Trade Receivables and Other Financial Assets
Particulars Trade receivables Other financial assets
Loss allowance on 01 April 2021 (743.67) (1715.60)
Allowance for expected credit loss ,743.67 363.56
Reversals/ written off during the year -
Loss allowance on April 01, 2022 (764.69) (1,937.27)
Allowance for expected credit loss (19.12) -
Reversals/ written off during the year - 60.01
Loss allowance on March 31,2023 (783.81) (1,877.26)
Allowance for expected credit loss (158.12) (155.57)
Reversals/ written off during the year 10.52 37.96
Loss allowance on March 31, 2024 (931.41) (1,994.87)
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ii Liquidity risk
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.
Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents
on the basis of expected cash flows. The Company takes into account the liquidity of the market in which
the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows
in major currencies and considering the level of liquid assets necessary to meet the liability, monitoring
balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt
financing plans.
Maturities of financial liabilities
The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on
their contractual maturities for all financial liabilities. The amounts disclosed in the table are the contractual
undiscounted cash flows (except lease liabilities).
Less than 1 year to 5 5 years

As At March 31, 2024 Total
1 year years and above
Non-derivatives
Trade payables 11,044.17 - - 11,044.17
Lease liabilities 725.06 438.14 - 1,163.20
Other financial liabilities 21,187.34 17,539.74 - 38,727.08
Total 32,956.57 17,977.88 - 50,934.45
Less than 1 year to 5 5 years and

1 year years above
Non-derivatives
Trade payables 9,513.06 - 9,513.06
Lease liabilities 382.77 342.75 - 725.52
Total 24,756.35 15,326.07 - 40,082.42
As At 31 March 2022 Less than 1 year to 5 5 years and

Total
1 year years above
Non-derivatives
Trade payables 0.07 0.02 - 0.09
Total 17,280.37 9,553.25 - 26,833.62
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iii Market risk

a Foreign currency risk
The Company does not carry any asset or liability denominated in Foreign currency. Hence the company
is not exposed to currency risk.
b Price risk
The Company’s exposure to equity securities price risk arises from the investments held by the group and
classified in the balance sheet at fair value through OCI.
Sensitivity
Profit or loss is sensitive to higher/lower prices of instruments on the Company’s reserves for the periods.
Particulars March 31, 2024 March 31, 2023 31 March 2022

Price increase by 5% - FVOCI 179.73 120.25 -
Price decrease by 5% - FVOCI (179.73) (120.25) -
37 Expenditure on Corporate Social Responsibility (CSR)

Pursuant to Section 135 of Companies Act, 2013 and rules framed thereunder (CSR Regulations),
a CSR committee of the Board of Directors has been constituted by the Company.
March 31, March 31,
Particulars
2024 2023
Gross amount required to be spent by the Company during the year 149.00 129.01
Amount spent during the year on other than construction/ acquisition 147.90 90.66
of any asset
- Paid 147.90 90.66
- Yet to be paid - -
Shortfall/(Excess) at the end of the year 1.10 38.35
Excess spent in earlier years (10.83) (50.09)
Total of previous year Shortfall - -
Reason for Shortfall - -
Nature of CSR Activities* - -
Details of Related party transactions - -

*CSR activities are listed below
i) Healthcare Services
ii) Educational activities
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38 Financial Instruments
Financial instruments by category
The following table shows the carrying amounts and fair values of financial assets and financial liabilities.
Note
Particulars Amortized Amortized
No. Cost FVTOCI Total Cost FVTOCI Total
cost cost
Financial assets :
6 Investments 597.43 3,594.67 - 4,192.10 597.43 2,404.93 - 3,002.36
7 Other financial - - 33,059.81 33,059.81 - - 27,852.25 27,852.25
assets
10 Trade - - 7,455.19 7,455.19 - - 3,912.11 3,912.11
receivables
11 Cash and cash - - 5,635.43 5,635.43 - - 4,181.43 4,181.43
equivalents
12 Other Bank - - 36,305.55 36,305.55 - - 24,458.62 24,458.62
Balances
Total financial 597.43 3,594.67 82,455.98 86,648.08 597.43 2,404.93 60,404.41 63,406.77
assets
Financial liabilities :
18 Trade payables - - 11,044.17 11,044.17 - - 9,513.06 9,513.06
15 Other financial - - 38,727.08 38,727.08 - - 29,843.84 29,843.84
liabilities
15 Lease Liability - - 1,163.20 1,163.20 - - 725.52 725.52
Total financial - - 50,934.45 50,934.45 - - 40,082.42 40,082.42
liabilities
Fair Value disclosure for Financial Instruments
Note
Particulars Carrying Fair Carrying Fair
No.
Amount Value Amount Value
Financial assets :
6 Investments measured at Fair Value through OCI 3,594.67 3,594.67 2,404.93 2,404.93
Total financial assets 3,594.67 3,594.67 2,404.93 2,404.93
Financial liabilities : - - - -
Total financial liabilities - - - -
The management assessed that the fair value of cash equivalents, trade receivables, loans, other financial
assets, trade payables, borrowings and other financial liabilities approximate the carrying amount largely due to
short-term maturity of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
For financial assets and financial liabilities that e measured at fair value, the carrying amounts are equal to the
fair values.
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CIN:U85110KA1966SGC001612
ii) Fair value hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped
into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant
inputs to the measurement, as follows:

Quoted Significant Quoted Significant
Significant Significant
price in Un price in Un
Observable Observable
active observable Total active observable Total
inputs inputs
markets inputs markets inputs
(Level 2) (Level 2)
(Level 1) (Level 3) (Level 1) (Level 3)
Asset measured at fair
value
Fair value through Other
Comprehensive Income
Investment in Equity 1,749.13 - 1,845.54 3,594.67 648.93 - 1,756.00 2,404.93
shares
Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments that have quoted price. The fair value of all equity instruments which are traded in the
stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded
bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of
observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset
included in level 3.
There are no transfer between level 1, 2 and 3 during the year.
The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the
end of the reporting period.
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CIN:U85110KA1966SGC001612
39 Disclosure of Related Party Transactions in accordance with Ind AS 24 - Related Party Disclosures
(a) Name of Related Parties and Nature of Relationship :
Sr.
Name of Related Parties Relationship Remark
No.
(I) Key Management Personnel(KMP)
1 Mr. Puttarangashetty Chairman From 26/01/2024
2 Mr. Patil M B Chairman From 13/06/2023
Up to 26/01/2024
3 Mr. Halappa Chairman Up to 12/04/2023
4 Mr. Manoj Kumar Managing Director From 03/07/2023
5 Mr. Vikash Kumar Vikash Managing Director Up to 03/07/2023
6 Mr. Ravishankar J Director
7 Ms. Gunjan Krishna Director
8 Mr. Nitish K Director
9 Mr. Ramesh R Director
10 Mr. Sateesha B C Director From 23/11/2023
11 Mr. Ravi M R Director Up to 23/11/2023
12 Mr. Venkatesh Naidu Director Up to 22/05/2023
13 Mr. Channadevaru C Director Up to 22/05/2023
14 Mr. Shivaji Shivaray Dollin Director Up to 22/05/2023
15 Mr. Andappa Javali Director Up to 22/05/2023
16 Mr. Totappa Nagappa Nidagundi Director Up to 22/05/2023
17 Mr. Satish R D Director Up to 22/05/2023
18 Mr. Ningappa Director Up to 22/05/2023
19 Mr. Shashidhar B Honnannavar Director Up to 22/05/2023
20 Ms. Sridevi B N Company Secretary
21 Mr. Avinash K R Chief Financial Officer From 01/12/2023
22 Mr. Chandrappa A M Chief Financial Officer Up to 01/12/2023
23 Ms. Sharada Manoj Kumar Relative of Managing
Director
(II) Subsidiaries
1 Karnataka State Marketing Communication & Advertising Limited
2 Mysore Chrome Tanning Company Limited
Associates
K T Apartment Owners’ Association
K T Mansions Apartments Owners’ Association
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(b) Transactions with related parties:

March 31, 2024 March 31, 2023
a) With KMP & Relative of KMP
Remuneration paid to Key management personnel (*)(#) 113.92 107.37
Contribution to Chit 7.50 -
Repayment of Advance by Chit Contributors 4.20 4.20
Expenses incurred on behalf of KMP 1.13 9.41
Sitting Fee paid to Directors 0.51 1.64
b) With Subsidiaries
Dividend received from subsidiaries 627.06 274.58
Rental income from subsidiaries 2.13 3.64
Advertisement and Printing expenses 82.86 24.45
Expenses incurred on behalf of subsidiaries 1.00 0.44
(*) As the provision for liability for gratuity and vacation pay is provided on an actuarial basis for the company
as a whole, the amount pertaining to individuals is not ascertainable and therefore not included above.
(#) Includes contribution to provident fund
(c) Balances with related parties as on date are as follows

March 31, 2024 March 31, 2023
a) With KMP
Advances from KMP for Chit 7.50 -
Advances to KMP for Chit 1.55 5.75
Receivable from KMP 10.53 9.41
b) With Subsidiaries
Payable to subsidiaries 26.65 10.59
(d) Terms and conditions of transactions with related parties

Transaction entered into with related party are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances other than loan given, at the year-end are unsecured and interest free
and settlement occurs in cash.
(e) Commitments with related parties
The Company has not provided any commitment to the related party as at March 31, 2024 (March 31, 2023:
Rs. Nil)
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CIN:U85110KA1966SGC001612
40 Contingent Liabilities And Commitments

Sr. As at March As at March
Particulars
No. 31, 2024 31, 2023
1 Guarantees / Counter Guarantees given by Banks on behalf of 38.57 38.57
the Company
2 Claims against the Company not acknowledged as debt
a Insurance Claim on Fire Policy - Refer Note (i) below
– Pending cases 207.73 207.73
– Decreed cases 488.70 488.70
– Interest on above 718.56 680.06
b Claim made by party in the business of Iron ore Export (including 2,594.64 2,465.96
interest) - Refer Note (ii) below
c Claims made by Directorate of Pension, Small savings Asset 1,553.60 4,609.86
Monitoring - Refer Note (iii) below
d Claim against lease of windmill by Wescare (India) Limited - Refer 123.79 119.23
Note (iv) below
e Claim by Airport Authority of India - Licence fee on lease of 397.14 397.14
Bangalore Air Carco Complex (BACC) Refer Note (v) below
3 Disputed Demands - Refer Note (vi) below
– In respect of Income Tax 3,725.62 2,975.76
– In respect of Service Tax 231.61 290.00
4 GST RCM on Transportation Charges - Refer Note (vii) below 365.49 45.98
5 Interest liability on SKOL Breweries Claim - Refer Note (viii) 308.77 -
below
(i) Certain Insurance Companies who had settled the claims of their customers on account of fire accident
at BACC owned by the Company during 2001, have filed several suits against the Company for recovery
of claims settled by them under the principles of subrogation. The Company had finally approached the
Honourable Supreme Court against the order of the High Court of Karnataka. The Honourable Supreme
Court had directed vide its order dated November 06, 2009 that all the parties (the Company, insurance
companies and customs authorities) concerned being Government agencies, they should discuss mutually
and settle the matter amicably.
Few cases amounting to Rs 207.73 lakhs (PY: Rs 207.73 lakhs) are still subjudice.
Since in the past on similar matter the lower courts had decided that the Company and Dept. of Customs
are jointly and severally liable for settlement of the insurance claim, the Company has provided Rs. 162.90
lakhs (PY Rs. 162.90 lakhs) being 25% of the total decreed liability of Rs. 651.60 lakhs (PY Rs. 651.60
lakhs); the unprovided portion of Rs. 488.70 lakhs (PY: Rs. 488.70 lakhs) is reported above. In the current
year, Compound interest at 6% is calculated on an amount of Rs. 958.08 lakhs (PY: Rs. 906.75 lakhs).
An amount of Rs. 239.52 lakhs is provided in the current year (PY: Rs. 226.69 lakhs) and the balance
amount of Rs 680.06 lakhs (PY: 641.57 lakhs) is reported under Contingent liability. Share of settlement
by the insurance companies and the Department of Customs are not yet finalised. The Company had
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insured the cargo lying in BACC warehouse at the rate of USD 20 per KG as per trade circular issued by
the Department of Customs.
(ii) The Company had entered into an agreement to export iron ore to China with Fe content of 52%. As the
commitment was not honoured by the Company, the buyer went for arbitration. An arbitration committee
that was formed as per the agreement had passed an award against the Company for USD 18,80,851,
apart from this, an interest payable @ 5 %. USD 67,473 is due from the overseas buyer. The claim against
the Company is Rs. 2,594.64 lakhs (PY: Rs. 2,465.96 lakhs) including interest is reported in the table
above. The Claims of the overseas buyer in respect of expenses incurred in China and liability under FEMA
are not considered here.
The arbitration award was contested by the Company and it had filed a case in the High Court of Karnataka.
The Hon’ble HC directed City Civil Court to admit and determine the case on merits.
In the light of irregularities reported by the Committee on Public Undertakings of the Karnataka Legislative
Assembly in the above transactions, the Company has filed criminal complaint in the jurisdictional police
station and the police are investigating the case. In respect of these criminal complaint, police have framed
the charge sheet and filed the case before the Magistrate Court, Bangalore
An irrevocable Letter of Credit in favour of MMI for Rs. 5 Crores was established. The supplier, having
failed to mobilize funds to procure ore, sought advance from MSIL. As the ship had already arrived at the
port on December 10th 2009, to avoid demurrage, the Company had advanced Rs. 2.15 Crores against
post dated cheques and commitment to create equitable mortgage on properties which the company could
not complete. In view of continued failure to supply the ore, the Company had deposited the cheques for
collection but these were dishonoured and hence a criminal case under Negotiable Instruments Act, 1881
was filed on 25.02.2010, now the case is pending before the Chief Metropolitan Court, Bangalore. In the
hearing held on 8th August 2019 it was informed by the Advocate for the accused that the accused had
expired and the Death Certificate will be produced in the next hearing.
When MMI failed to supply, the Company approached another supplier, Saram Exports, who had agreed
on the same terms and conditions. MSIL advanced Rs. 4.5 Cr to the new supplier and the ship loaded
with 46,846.48 MT ore sailed on January 14th 2010 after a delay of 29 days. MSIL had to incur additional
customs duty of Rs.32,22,680/- due to increase by Government of India. The supply by Saram Exports
was dispatched on an urgent basis as the time available for shipping was over and could not wait for Test
Report. Subsequently the test report revealed that Fe content of the shipment was only 49.37%.
The Company raised an invoice on the buyer and negotiated the documents through LC which could not
be negotiated as it was lapsed. On the cargo reaching Hong Kong port, Chinese Inspection Quality Report
revealed an Fe content of 45.9% and hence the buyer rejected the ore as sub standard. Subsequently,
overseas buyer was authorized to sell the ore and realize the proceeds. The ore was sold at US$ 35 per
MT on CFR basis realising US$ 16,39,626.80 vide invoice dated March 23rd 2010. MSIL requested the
foreign buyer to remit the sale proceeds who in turn claimed US$ 24,25,051.88 towards its claim against
the Company, which the company didn’t agree.
(iii) Directorate of Small Savings: A letter dated November 18, 2020 was received from the Directorate of
Pension, Small Savings Asset Monitoring towards short remittance of sale proceeds of lottery and interest
on delayed remittance, amounting to Rs. 4,609.86 lakhs drawing reference to their earlier letters . However
the Company vide its letter dated December 10, 2020 had communicated that it had earlier remitted a
sum of Rs. 352.61 lakhs on October 17, 2016 towards full and final settlement of all dues and that no
111
payment is due from the Company on this subject. The letter of the Company has been acknowledged by
the Directorate of Small Savings. After submission of necessary documents, the Government of Karnataka
has reduced the demand to 1787.00 lakhs including interest. The Company has provided Rs. 233.40 lakhs
against the said claim. The remaining amount of Rs.1,553.60 lakhs is reported under Contingent Liability.
The Company is in the process of submitting request for waiver of Interest.
(iv) A claim was made by M/s Wescare (India) Limited, a lessee, which was disputed by the Company. The
matter was referred to an arbitration panel and an award was passed for Rs. 119.23 lakhs (PY: Rs 119.23
lakhs) against the Company. The Company has filed a case against the arbitration award in the year 2015-
16 and the matter is subjudice in the High Court of Madras. This amount is disclosed under contingent
liability.
(v) The Company had leased 2,565.4 Sq. Meter from Airport Authority of India (AAI) at Bangalore Air Cargo
Complex (BACC), Bangalore. The lease was renewed for a period of 10 years from January 01, 2001 to
2010. After a joint survey, the property has been handed over on March 02, 2022. AAI has demanded Rs.
226.89 lakhs towards license fees, Damages of Rs. 167.24 lakhs and interest of Rs. 229.90 lakhs. The
Company is in the process of negotiating a settlement and provided so far Rs. 226.89 lakhs against the
licence fee demand (PY: Rs. 226.89 lakhs). Pending settlement with AAI, the Company has provided for
the rental demand in full and has reported Rs. 397.14 lakhs as contingent liability (PY: Rs. 397.14 lakhs
(vi) Disputed Demands
(a) It is not practicable for the Company to estimate the timing of cash outflows, if any, pending resolution
of the respective proceedings.
(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.
(c) The Company believes that the ultimate outcome of these proceedings will not have a material adverse
effect on the Company’s financial position and results of operations.
(vii) Refund claim of GST RCM of Rs. 45.98 lakhs were paid towards transportation charges which is reported
under “Other Assets” in note no. 8. The actual claim up to December 2020 was Rs. 121.42 lakhs. The
difference of Rs. 75.44 lakhs were charged to the Statement of Profit and Loss in earlier years. The
Company’s claim was rejected by Assistant Commissioner of Central Tax, North Division-3, Bengaluru.
Subsequently, the appeal filed by the Company was also rejected at Additional Commissioner of GST,
Appeals-II, Bengaluru. Further liability on GST RCM on transportation charges for the period from January
2021 to March 2024 is Rs. 319.51 lakhs which has not been discharged by the Company. No provision has
been made for the refund receivables as well as additional liability since the Company is legally advised
that the chances of favourable outcome are high. The Company has disclosed such amount as “Contingent
Liability”.
(viii) Honourable Supreme Court, vide order dated February 13, 2003 had ordered for the appointment of an
Authorised Officer to quantify the commission due to the Company from Mysore Breweries (MBL) (MBL
was formerly known as SKOL Breweries and now is known as AB Inbev India Limited). The decision of the
Authorised Officer to pay Rs. 2,518.00 lakhs was disputed by MBL and the matter is subjudice.
The Company has preferred an appeal before the City Civil Court for recovery of the commission. MBL
has been ordered to deposit 60 % of decree amount within an outer limit of eight weeks from the date of
order and to furnish Bank Guarantee in the name of Registrar General, High Court of Karnataka for the
balance amount. The Company has moved to HC for seizure. During the year, the Company has received
sum of Rs.3531.53 lakhs against the bank guarantee of Rs.3,525.00 lakhs issued in favour of High Court
of Karnataka. If the order of appeal goes against the Company, the Company will have to refund the entire
amount including interest at bank rate. Pending resolution, the Company has disclosed interest on such
fixed deposits of Rs. 308.77 lakhs as “Contingent Liability”.
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CIN:U85110KA1966SGC001612
41 Capital Commitment and Other Commitments

Particulars
31, 2024 31, 2023
(a) Capital commitments
Property, Plant & Equipment 187.79 160.08
(b) Other commitments

Commitment in respect of subscription for substituted chit 104.11 22.53
42 Other Notes
(i) The Company had entered into Hire Purchase agreement with government employees (Hirers) for supply
of vehicles and consumer durables. The outstanding instalment dues including interest from the hirers is
shown under “stock with hirers”. Hire purchase business has been discontinued from July 2008.
(ii) Balances in the accounts of sundry creditors, sundry debtors, business associates including joint working
arrangements and advances/deposits are subject to confirmation and reconciliation. Consequential
impact of such reconciliation and confirmation, if any, on the net profit and on the assets/liabilities is not
ascertainable.
(iii) Government Grants/Incentive
The Company is claiming grant/incentive from Government agency-BPPI. During the financial year 2021-
2022, BPPI has changed the scheme of reimbursement linking to the purchases made in each Jan Aushadi
outlets from earlier scheme of linking to the expenditure towards fixed assets at the time of opening of a
new outlet. The Company made claim for 66 outlets and out of which for 17 outlets, the claims have been
rejected. For 13 outlets, the claim was not made. As at the end of year, an amount of Rs. 66.06 lakhs was
due under these claims and an equal amount provision has been made for the same. However, as per the
communication received from Janaushadi department, the Company has received the complete amount of
normal incentive and there are no outstanding receivable on account of such incentive.
(iv) With respect to Chit Fund Division “Amount Recoverable from Prized Subscribers” amounting to Rs.
31618.08 lakhs classified as “Loans under Financial Assets”, measured at amortized cost, carrying amount
in net of Rs. 1196.65 lakhs being the unreconciled balances. Consequential impact of such reconciliation
and confirmation, if any, on the profit and on the assets/liabilities is not ascertainable.
(v) The Company had entered into a lease agreement with Mrs. Nagarathna for a property near Bangalore Air
Cargo Complex, Bangalore. The lease was renewed for a period of 5 years from 2003 to 2008. As there was
a delay in vacating the property, the Lessor had approached the Court for recovery of unpaid rent of Rs. 43
lakhs and Interest at 18% of Rs. 16 lakhs (OS no.75/2014). The Hon’ble Additional Civil Judge, Bangalore
had passed an order dated June 24, 2019 against the Company for recovery of the unpaid rent of Rs. 59
lakhs with the Interest at 18 % from November 15, 2011 to December 20, 2013. The Company approached
the Hon’ble HC, Karnataka and had obtained an interim stay on October 21, 2019. As per the court orders,
the Company has deposited Rs. 50 lakhs with HC (RFA 1704/2019). The matter is subjudice in the High
Court of Karnataka.
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(vi) The Company has entered into an agreement with M/s. Poseidon FZE, Dubai (Supplier) for import of river
sand in 2017. Till date it has imported 1,03,872.77 MT in 2 shipments (Oct 2017 and Jan 2018) and the
same was stored at Krishnapatnam Port in Andhra Pradesh. So far, the Company has sold 14,759 MT.
The Commissioner of Customs, Vijayawada had passed an order vide no: VJD-CUSTM-PRV-COM-003-20-21
dated 03 Dec 2020, demanding Rs.599 lakhs towards differential duty, redemption fine and penalty.
The Company has filed an appeal before CESTAT, Hyderabad for setting aside the order of the Commissioner
of Customs and the matter is sub-judice in CESTAT, Hyderabad. In this connection, the bank has submitted
Bank Guarantee of Rs. 11.80 lakhs. The Company hold sand measuring 6826 Tons belonging to the
Purchaser Ocean Agencies, out of the sale of 10000 MT.
(vii) M/s. Pearl Ports and Warehousing Pvt Limited has entered into lease agreement with MSIL on March
28, 2018 for leasing 89,888 Sq. ft with 25% enhancement every three years, for a period of 15 years. The
agreement was modified by an addendum dated June 18, 2018. As the tenant was not paying dues as per
the lease agreement , the Company has served Lease Termination Notice on May 03, 2021. Further a Police
Complaint also lodged as the tenant has undertaken civil works without the permission of the Company.
The Company has filed a petition before Hon’ble HC of Karnataka for appointment of Sole Arbitrator and a
retired judge has been appointed as Sole Arbitrator on March 21, 2022. As at the year end, an amount of
Rs. 337.32 lakhs ( PY Rs. 279.53 lakhs) is due from the tenant. The Company is carrying provision of Rs.
137.24 lakhs (PY: Rs. 137.24 lakhs) against the same.
(viii) The Company has entered into a lease agreement dated September 27, 2018, for letting out its leased
property situated at Navi Mumbai (Karnataka Bhavan) with M/s. Athitheya Kshema Hotels Pvt Ltd for a
period of 15 years. The tenant was not paying dues as per lease agreement and as at the year end, an
amount of Rs. 1,006.03 lakhs (PY Rs. 759.18 lakhs) is due from the tenant and the Company is holding an
equivalent amount of provision.
(ix) The Company has received certain advances for the tours and travels services from Rajiv Gandhi University
of Health Sciences, (RGUHS) Karnataka. The Company has also made supplies to RGUHS in Papers
Division. Since disputes arose between the Company and RGUHS and with the corresponding service
providers, the receivables and payables accounts of RGUHS and service providers need to be reconciled.
The Company has made a provision for bad and doubtful advances to the extent of Rs. 200 lakhs in this
regard. The potential effect of the same on the financial statements is not ascertainable in the absence of
reconciliation statements.
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43. Other regulatory information required by Schedule III
a. Utilisation of borrowed funds
During the year ended March 31, 2024 and March 31, 2023, the Company has not advanced or loaned
or invested funds (either borrowed funds or share premium or kind of funds) to any other person(s) or
entity(ies), including foreign entities (Intermediaries)
i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (Ultimate Beneficiaries) or
ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
Further, during the year ended March 31, 2024 and March 31, 2023, 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:
or on behalf of the Funding Party (Ultimate Beneficiaries) or
ii) provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.
b. Details of crypto currency or virtual currency
The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended
March 31, 2024 (PY: Nil)
c. Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property
under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder during the year
ended March 31, 2024 (PY: Nil).
d. Wilful Defaulter
The Company has not been declared Wilful Defaulter by any bank or financial institution or government or
any government authority during the year ended March 31, 2024 (PY: Nil).
e. Undisclosed Income
The Company has not surrendered or disclosed as income any transactions not recorded in the books of
accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961) during the year ended March 31, 2024 (PY: Nil)
f. Relationship with struck off companies
The Company does not have any transactions with the companies struck off under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31, 2024
(PY: Nil).
g. Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with the Companies (Restriction on number of Layers) Rules, 2017.
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h. Compliance with approved Scheme(s) of Arrangements

The Company has entered into an scheme of arrangement as disclosed in note 43. The accounting effect
of such scheme has been accounted for in the books of account of the Company in accordance with “the
Scheme” and Ind AS.
i. Valuation of Property, Plant and Equipment’s, right-of-use assets and intangible asset
The Company has not revalued its Property, Plant and equipment, right-of-use assets and intangible asset
during the current or previous year.
Note 44 : Financial Ratios

Remarks
Variance for variance
Sr. Type of Ratio Numerator Denominator 2023-24 2022-23
(in %) more than
25%
1 Current Ratio (In Current Assets Current 2.26 2.22 1.46% Not
times) Liabilities Applicable
2 Debt-Equity Ratio Total Debt Total Equity NA NA NA Not
(In times) Applicable
3 Debt Service Earnings before Interest, Debt Service NA NA NA Not
Coverage Ratio (In Depreciation and Applicable
times) amortisation and after tax
other adjustments like
loss/profit on sale of Fixed
assets etc.
4 Return on Equity Net Profit after Tax Average Total 16.95% 11.00% 54.11% Increase in
Ratio (%) Equity Profit
5 Inventory turnover Revenue from operations Average 21.80 19.14 13.91% Not
Ratio (In times) Inventories Applicable
6 Trade Receivables Revenue from operations Average Trade 59.43 45.87 29.57% Increase in
turnover Ratio (In Receivables Revenue and
times) Debtors
7 Trade Payables Total purchases Average Trade 59.16 24.15 144.98% Increase in
turnover Ratio (In Payables purchases
times) and trade
payables
8 Net capital turnover Revenue from operations Working 5.44 7.45 -27.00% Increase in
Ratio (In times) Capital Revenue
9 Net profit Ratio (%) Net Profit after Tax Revenue from 3.07% 2.15% 42.71% Increase in
operations Net profit
10 Return on Capital Profit before Interest, Total Capital 20.05% 14.26% 40.65% Increase in
employed (%) Exceptional Items and Tax Employed profit before
((Total Equity tax
+ Total Debt
+ Deferred
Tax Liabilities/
(Assets)
11 Return on Not Applicable NA NA NA
investment (%)
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CIN:U85110KA1966SGC001612
45 Reclassification of items in the standalone financial statements

The previous year figures have been reclassified to conform to the current year’s classifications, wherever
necessary.
A. For Balance Sheet Items:
Reclassification has been done because of following reasons:
1. Reclassification of items from Current to Non-current and vice-a-versa.
2. Reclassification of items from financial to non-financial category and vice-a-versa.
As per
As per previous
Sr. reclassified
Class of Item reclassified Note audited financial Adjustments
No. financials
statements
statements
I ASSETS
Non-current assets
(a) Financial assets
(i) Other financial assets 7 16,590.89 1,260.57 17,851.46
(b) Other non-current assets 8 68.60 (5.39) 63.21
(c) Non Current tax asset (net) 8A - 4,108.74 4,108.74
Current assets
(i) Other financial assets 7 12,365.78 (2,364.99) 10,000.79
(b) Other current assets 8 7,406.21 (2,561.50) 4,844.71
(c) Current tax asset (net) 8A 437.44 (437.44) -

Liabilities
(i) Other Financial Liabilities 15 17,706.03 (2,722.71) 14,983.32
(b) Provisions 16 1,508.83 (766.75) 742.08
Current liabilities
(a) Total outstanding dues other 8,317.74 (1,452.29) 6,865.45
than micro and small
(ii) Other financial liabilities 15 9,756.79 5,103.73 14,860.52
(b) Other current liabilities 17 1,361.55 (118.03) 1,243.52
(c) Provisions 16 259.28 (43.95) 215.33
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B. For Statement of Profit and Loss Items:

Reclassification has been done because of following reason:
1. Reclassification of items from Other Income to Revenue from Operations.
As per previous As per reclassified
Sr.
Class of Item reclassified Note audited financial financials
No. Adjustments
statements statements
I Continuing operations
Revenue from operations 19 282,499.26 32.44 282,531.70
Other income 20 3,094.28 (32.44) 3,061.84
46 The Company evaluates events and transactions that occur subsequent to the balance sheet date but
prior to the approval of financial statements to determine the necessity for recognition and/or reporting
of subsequent events and transactions in the financial statements. As of June 27, 2024, there were no
subsequent events and transactions to be recognized or reported that are not already disclosed.
Sd/- Sd/-
Sd/-
DIN: 07745825 DIN: 09379177
PARTNER Sd/- Sd/-
118
MYSORE SALES
INTERNATIONAL LIMITED
CONSOLIDATED ACCOUNTS
FOR THE YEAR ENDED
31ST MARCH 2024
119
120
REVISED INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF MYSORE SALES on the reported figures in the financial statements of
INTERNATIONAL LIMITED the Company except for clause (f),(g) and (h) under
paragraph Basis for Qualified Opinion for Karnataka
Revised Report on the Audit of Consolidated
State Marketing Communication and Advertisement
Financial Statements
Limited (formerly known as Marketing Communication
Qualified Opinion & Advertising Limited). This audit report supersedes
We have audited the accompanying Consolidated the original report which has been suitable revised
financial statements of Mysore Sales International to consider observations of Comptroller and Auditor
Limited (“the Parent”) and its Subsidiaries and General of India.
Associate as listed in Annexture A (the parent and Basis for Qualified Opinion for Mysore Sales
its subsidiaries together referred to as “the Group”), International Limited:
which comprise the Consolidated Balance Sheet as at
a. The Company, for Export Division, has not
March 31, 2024, the Consolidated Statement of Profit
conducted physical verification of imported river
and Loss (including Other Comprehensive Income),
sand stock during the year. However, the physical
the Consolidated Statement of Cash Flows and
verification was conducted in the previous year
Consolidated Statement of Changes in Equity for the
where it was found that there was a shortage
year ended on that date and the material accounting
of 16,565.002 MT amounting to Rs. 347.87
policies and other explanatory information (hereinafter lakhs. The Company has neither written off the
referred to as “the Consolidated financial statements”). inventory found short, nor it has withdrawn the
In our opinion and to the best of our information and corresponding provision made earlier in the
according to the explanations given to usand based books. Therefore, both the inventories and the
on the consideration of reports of the other auditors provision for inventories are overstated to the
on separate financial statements of the subsidiaries, extent of Rs. 347.87 lakhs.
except for the effects of the matters described under b. For Chit Fund Division, in the absence of (i)
the “Basis for Qualified Opinion” section of our report proper internal control measures in place; (ii)
the aforesaid consolidated financial statements support for generation of accurate and required
give the information required by the Companies Act, reports from the software deployed; (iii) any
2013 (“the Act”) in the manner so required and give defined system and timely closure of books for
a true and fair view in conformity with the Indian offline branches (Shivamoga and Kengeri), there
Accounting Standards prescribed under section 133 of may be impact on the financial statements which
the Act read with the Companies (Indian Accounting are not ascertainable.
Standards) Rules, 2015, as amended, (“Ind AS”) and
c. As per Ind AS 109-Financial Instruments, the
the accounting principles generally accepted in India,
Company, for Chit Fund Division, carries the
of the state of affairs of the Group as at March 31, 2024,
impairment loss allowance as per Expected
and the profit including other comprehensive income,
Credit Loss Model (ECL) of Rs. 635.91 lakhs.
its cash flows and changes in equity for the year ended
However, in absence of sufficient information
on that date.
about the accuracy and reasonableness of
We have issued an Audit Report dated 10thSept 2024 various parameters including the “Probability of
(the original report) at Bangalore on the financial Default (%), Loss Given Default (%) and the basis
statements as adopted by the Board of Directors on of classification of financial assets based on the
even date. Pursuant to the observations of Comptroller significant increase in credit risk and consequently
and Auditor general of India under Section 143(6) determination of the 12 months ECL and lifetime
(a) of the Companies Act, 2013, we have revised the ECL, we are unable to evaluate and comment on
said Audit Report. The revised report has no impact adequacy of ECL.
121
The Company has not made necessary disclosure h. The Company has not recognised rent income
required by Ind AS 1 - Presentation of Financial for the warehouse in Mysore leased to Nest
Statements for this departure. well Constructions Private Limited (“Lessee”)
for the period from December 2021 till March
d. The Company, for Tours and Travel Division, has
2024 because of dispute with the Lessee. The
not provided for the doubtful advances to Nishi
Company has not made suitable disclosure of
Forex and Leisure Limited for Rs 169.16 Lakhs.
this dispute and amount recoverable from the
Non provision for this doubtful advance has
lessee on account of the dispute in the financial
resulted into overstatement of profit for the period
statements. Rental income for the Lessee for the
and overstatement of Advances to supplier by Rs
year ending March 31, 2024 is Rs 41.73 Lakhs
169.16 Lakhs.
has not been accounted in Statement of Profit
e. The interest liability on MSME trade payables and Loss. There is no impact to the financial
for delayed payment has to be provided as per profit, as the Company considers the receivable
MSME Act, 2006. However, the Company has as doubtful.
not provided interest for the period of delay in
We draw attention to the following qualifications
making payments to MSME trade payables as
to theaudit opinion of the financial statements
the Company has not received any interest claim
of Karnataka State Marketing Communication &
by MSME vendors. In absence of information, we
Advertising Limited (Formerly known as Marketing
could not quantify such interest amount.
Communication & Advertising Limited), the subsidiary
f. The Company has recognised long term leases of the holding company issued by independent firm
as per Ind AS 116 during the year which were of Chartered Accountants vide their Revised Audit
considered as short-term leases up to the end Report dated September 24,2024 reproduced by us
of previous financial year. Due to this, addition as under: -
to Right of Use Assets (ROU Assets) and Lease
a. Trade Receivables shown at Rs. 17,802.24
Liabilities are higher by Rs. 1,011.20 lakhs,
lakhs (P.Y. Rs. 15,408.87 lakhs) represent the
Depreciation on ROU Assets is higher by Rs.
net amount after deduction of credit balances to
326.34 lakhs and Interest on Lease Liabilities
the extent of Rs. 359.96 lakhs, GST TDS of Rs.
is higher by Rs. 49.18 lakhs. The Company has
1,260.63 lakhs, unidentified Debtors collection
not complied with the disclosure requirement
of Rs.810.04 lakhs and Income Tax TDS of
required by Ind AS 8 - Accounting Policies,
Rs.1,483.94 lakhs to be adjusted to the respective
Changes in Accounting Estimates and Errors for
Debtors.
these changes in accounting estimates.
In view of the aforesaid amounts of credits pending
g. The disclosure in Note 41 (viii) to the financials
adjustment, we are unable to satisfy about the
doesn’t include complete details on accounting
veracity of the provision of Rs. 3,772.02 lakhs
done by the Company. The Company has
(P.Y. Rs. 3,758.20 lakhs) made in the books of
recognized the recoverable from Athitheya
accounts towards the Trade Receivables doubtful
Kshema Hotels Pvt Ltd (“the tenant”) without
of recovery and in the absence of adequate
recognizing rental income of Rs 245.05 Lakhs
information, we are unable to quantify the extent
and provided for the provision on the same
by which it is either excessive or otherwise.
without charging the provision in other expenses
by Rs 245.05 Lakhs. The entries are passed Further, the fact that the confirmation of balances
without routing through profit and loss account. from majority of the Debtors having not been
There is no impact to the financial profit, as the received, year after year, also compels us to
Company considers the receivable as doubtful. regret our inability to place our reliance on the
same.
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b. Considering the fact that substantial portions the proceedings and there has been no claim
of the Income Tax Refunds claimed, have been from the legal heirs.
adjusted towards various Tax demands of earlier
Since the said liability is an ascertained liability
years by the Tax Authorities and for the reasons
and the same will have to be dealt with as per
of absence of reconciliation of the same for the the applicable labour laws, the Company cannot
years beginning from the F.Y. 2001-02 to F.Y. avoid providing for it in the books of account
2022-23, the Company’s right to claim the refund taking shelter under no claim from the legal heirs
of Rs. 488.73 lakhs towards the excess paid of the dismissed and deceased employee.
Income tax up to the period F.Y. 2022-23, as
shown under the Non-current Assets in Note No. For want of details from the Management, we
8 of Notes forming part of the Annual Accounts, are unable to quantify the liability to the said
we are unable to satisfy ourselves as to whether deceased employee so not provided for in the
it is good for recovery. accounts.
e. The Company has incurred Interest on Belated
c. That as the amount under Trade Advances and
Payment of GST Cash of Rs. 275.43 lakhs (P.Y.
Other Receivables (Loans and Advances) in
Rs.149.21 lakhs) disclosed in Note No. 29 under
Note No.12, includes Target Incentive of Rs.
Other Expenses. The Company has treated
68.51 lakhs (P.Y. Rs.68.51 lakhs) receivable from
the said expense as Cash Flow from Operating
various News Publishers which is not reconciled,
Activities whereas the same ought to have been
for which no confirmation is available and the
treated as Cash Flow from Financing Activities,
realization of the same is not certain, the same is
which has resulted in incorrect disclosure as per
in our opinion doubtful of recovery.
IND AS-7.
Similarly, the Trade Advances and Other
f. Note No. 8, Other Non-Current Assets, includes
Receivables in Note No. 12 of Notes forming part
Rs. 10.30 lakhs being VAT refund receivable
of the Annual Accounts includes the advance
with respect to VAT paid to de-registered dealer/
paid to the News Publishers amounting to Rs.
Vendor and pending to be received since making
51.12 lakhs (P.Y. Rs. 51.12 lakhs) which is not
a refund application on 05-March-2015. In the
reconciled, for which no confirmation is available
absence of any representations made by the
and the realization of the same is not certain, the
Company with the Tax authorities during the
same is in our opinion doubtful of recovery.
year to recover such amount and considering the
To this extent, the balance of Current Assets is period of pendency of such matter, we are unable
overstated, the same having not been provided to satisfy ourselves as to whether it is good for
for in the accounts. recovery.
d. Note No. 31(b) regarding Contingent Liabilities g. Note No. 7 on Advances recoverable in kind or
includes explanations regarding a concluded for value to be received includes Earnest Money
case involving the Company’s erstwhile Deposits paid of Rs.69.57 lakhs (P.Y. 41.07
employee late Mr.H S Hanumanthaiah where the lakhs), out of which Rs. 40.42 lakhs are relating
liability is ascertained and confirmed by the order to the periods 2013-14 to 2018-19 and pending
of the Hon’ble High Court of Karnataka which is recovery. In the absence of any action to recover
further upheld by the Hon’ble Supreme Court of the same and considering the period of pendency,
India by dismissing the Special Leave Petition we are unable to satisfy ourselves as to whether
vide its order dated 12-Oct-2017. The Company the deposits are good for recovery. The extent
has not provided for the said ascertained liability of the financial impact of the overstatement of
in its books of accounts for the reason that the Advances recoverable in kind or for value to be
employee passed away during the pendency of received cannot be determined, in absence of
further information.
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h. The amount disclosed in Note No. 15C under Recoverable from Prized Subscribers” amounting
Deposit from customers and others includes to Rs. 31618.08 lakhs classified as “Loans under
Earnest Money Deposits amounting to Rs.183.82 Financial Assets”, measured at amortized cost,
lakhs, includes an amount of Rs. 71.19 lakhs (P.Y. carrying amount in net of Rs. 1196.65 lakhs being
Rs. 73.69 lakhs) which has been collected as the unreconciled balances, the impact of which
refundable Earnest Money Deposit and shown as on the financial statements is not ascertainable.
Other Current Liabilities. However, the Company
b. We draw attention to Note no. 41 (ix) to the
is not able to identify the respective suppliers and
consolidated financial statements wherein it is
to refund the same even when the respective
mentioned that the Company has received certain
projects have been completed quite a few years
advances for the tours and travels services. The
ago.
Company must reconcile the accounts of Rajiv
We draw attention to the adverse audit opinion of the Gandhi University of Health Sciences, (RGUHS)
financial statements of The Mysore Chrome Tanning Karnataka and the corresponding service
Company Limited, the subsidiary of the holding providers. The Company has also made supplies
company issued by independent firm of Chartered to RGUHS in Papers Division. Since disputes
Accountants vide their revised Audit Report dated arose between the Company and RGUHS and
September 6,2024 reproduced by us as under: - with the corresponding service providers, the
Basis for adverse opinion: receivables and payables accounts of RGUHS
a) The Company is not a going concern as the and service providers need to be reconciled.
Company has not carried on any manufacturing The Company has made a provision for bad and
activities since 1986. The Company has doubtful debt to the extent of Rs. 200 lakhs in this
accumulated losses of Rs. 816.94 lakhs and regard. The potential effect of the same on the
net-worth stand eroded. As of that date, the
financial statements is not ascertainable in the
Company’s liabilities exceeded its total assets
absence of reconciliation statements.
by Rs. 741.20 lakhs.These events or conditions,
along with other matters indicate that material c. We draw attention to Note no. 39 (vii) to the
uncertainty does exist and cast significant doubt consolidated financial statements wherein it is
on the Company’s ability to continue as a going mentioned that “Refund claim receivable” on
concern. account of GST RCM on Transport is Rs. 45.98
b) The Company has not provided interest on the lakhs whereas the actual claim up to December
loan availed from KSIIDC & Government of 2020 was Rs. 121.42 lakhs. The difference of Rs.
Karnataka amounting to Rs. 5.48 lakhs for the 75.44 lakhs were charged to the Statement of
current year and Rs.137.03 lakhs from April 1999. Profit and Loss in earlier years. The Company’s
Had this interest been provided, the profit for the claim was rejected by Assistant
year would have been Rs 26.93 lakhs against the
profit before tax for the year of Rs 32.41 lakhs. Commissioner of Central Tax, North Division-3,
Current Liability understated to the extent of Rs. Bengaluru. Subsequently, the appeal filed by
5.48 lakhs for the year and accumulated loss the Company was also rejected at Additional
understated by Rs. 137.03 lakhs. Although the Commissioner of GST, Appeals-II, Bengaluru.
same has been reported as contingent liability by Further liability on GST RCM on Transport for
the Company. the period from January 2021 to March 2024 is
Emphasis of Matters for Mysore Sales International Rs. 319.51 lakhs which has not been discharged
Limited by the Company. No provision has been made
for the refund receivables as well as additional
a. We draw attention to Note no. 41 (iv) to the
liability since the Company is legally advised that
consolidated financial statements wherein
the chances of favourable outcome are high.
it is mentioned that with respect to “Amount
124
d. We draw attention to Note no. 41(ii) to the c) Regarding non confirmation of loans and
consolidated financial statements which describes advances.
the uncertainty related to the payables and
d) The ﬁnancial statements which, describes the
receivables outstanding balances. In the absence
uncertainty related to the outcome against the
of balance confirmations and reconciliations,
contingent liabilities of the Company
the financial impact on consolidated financial
statements is not ascertainable. e) Regarding pending compliances with registrar of
companies under Companies Act 2013.
Our opinion is not qualified in respect of this
matter. f) Regarding TDS shown as advance related to
prior year written off.
We draw attention to the following Emphasis of
Matters to the audit opinion of the financial statements g) Regarding 2979 Sq. meter of land being occupied
of Karnataka State Marketing Communication & by slum dweller for which compensation is agreed
Advertising Limited (Formerly known as Marketing by the KSCB but the compensation amount has
Communication & Advertising Limited), the subsidiary not been ascertained.
of the holding company issued by independent firm of Their opinion is not modified in respect of this
Chartered Accountants vide their Revised Audit Report matter
dated September 24,2024 reproduced by us as under:-
We conducted our audit of the financial statements
Attention is drawn to the disclosed in Note No. 18 in accordance with the Standards on Auditing
under Trade Payables which includes amount of specified under section 143(10) of the Act (SAs). Our
Rs.66.07 lakhs (P.Y. Rs.46.44 lakhs) which relate to responsibilities under those Standards are further
dues outstanding to Micro and Small Enterprises
described in the Auditor’s Responsibilities for the
registered under the Micro, Small and Medium
Audit of the Financial statements section of our report.
Enterprises Development Act, 2006 (“MSEMD Act,
We are independent of the Group in accordance
2006”) and to the explanatory note under provided
with the Code of Ethics issued by the Institute of
thereunder which discloses the methodology of
Chartered Accountants of India (ICAI) together with
collection of such information and reliance on such
the independence requirements that are relevant
information to present the data. Our reliance regarding
to our audit of the financial statements under the
the suppliers registered under the Micro, Small and
provisions of the Act and the Rules made thereunder,
Medium Enterprises Development Act, 2006 (“MSEMD
and we have fulfilled our other ethical responsibilities
Act, 2006”), is limited to the 23 suppliers who have
confirmed their registration status, as MSME, to the in accordance with these requirements and the ICAI’s
Company. Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide
Their opinion is not modified in respect of this matter. a basis for our qualified opinion on the consolidated
We draw attention to the Emphasis on Matter to the financial statements.
adverse audit opinion of the financial statements
Information Other than the Consolidated Financial
of The Mysore Chrome Tanning Company Limited,
Statements and Auditors’ Report Thereon
the subsidiary of the holding company issued by
independent firm of Chartered Accountants vide The Parent’s Board of Directors is responsible for the
their revised Audit Report dated September 6,2024 other information. The other information comprises the
reproduced by us as under: - information included in the Board’s Report including
Annexures to Board’s Report but does not include the
a) Regarding recovery of compensation amount
financial statements and our auditors’ report thereon.
from BDA, amount being unascertainable.
The Boards’ Report is expected to be made available
b) Regarding non provision of Interest on to us after the date of this auditor’ report.
Special Component plan, effect of which is not
ascertainable.
125
Our opinion on the financial statements does not cover for assessing the ability of the respective entities to
the other information and we do not express any form continue as a going concern, disclosing, as applicable,
of assurance conclusion thereon. matters related to going concern and using the going
concern basis of accounting unless the respective
In connection with our audit of the financial statements,
Board of Directors either intends to liquidate their
our responsibility is to read the other information and,
respective entities or to cease operations, or has no
in doing so, consider whether the other information is
realistic alternative but to do so.
materially inconsistent with the financial statements, or
our knowledge obtained during the course of our audit The respective Board of Directors of the companies
or otherwise appears to be materially misstated. included in the group are also responsible for
overseeing the financial reporting process of the group.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other Auditor’s Responsibilities for the Audit of the
information, we are required to report that fact. We Consolidated Financial Statements
have nothing to report in this regard. When we read the
Our objectives are to obtain reasonable assurance
Directors’ Report, if we conclude that there is a material
about whether the consolidated financial statements as
misstatement therein, we are required to communicate
a whole are free from material misstatement, whether
the matter to those charged with governance.
due to fraud or error, and to issue an auditor’s report
Responsibilities of Management and Those that includes our opinion. Reasonable assurance is a
Charged with Governance for the Consolidated high level of assurance, but is not a guarantee that
Financial Statements an audit conducted in accordance with Standards on
Auditing will always detect a material misstatement
The Parent’s Board of Directors is responsible for the
when it exists. Misstatements can arise from fraud
matters stated in Section 134(5) of the Act with respect
or error and are considered material if, individually
to the preparation of these consolidated financial
or in aggregate, they could reasonably be expected
statements that give a true and fair view of the financial
to influence the economic decisions of users taken on
position, financial performance and cash flows of the
the basis of these consolidated financial statements.
Group in accordance with the accounting principles
generally accepted in India, including the Accounting As part of an audit in accordance with Standards on
Standards specified under Section 133 of the Act. This Auditing (SAs), we exercise professional judgment
responsibility also includes maintenance of adequate and maintain professional skepticism throughout the
accounting records in accordance with the provisions audit. We also:
of the Act forsafeguarding the assets of the parent
• Identify and assess the risks of material
and for preventing and detecting frauds and other
misstatement of the consolidated financial
irregularities; selection and application of appropriate
statements, whether due to fraud or error, design
accounting policies; making judgments and estimates
and perform audit procedures responsive to
that are reasonable and prudent; and design,
those risks, and obtain audit evidence that is
implementation and maintenance of adequate internal
sufficient and appropriate to provide a basis for
financial controls, that were operating effectively
our opinion. The risk of not detecting a material
for ensuring the accuracy and completeness of the
misstatement resulting from fraud is higher
accounting records, relevant to the preparation and
than for one resulting from error, as fraud may
presentation of the consolidated financial statements
involve collusion, forgery, intentional omissions,
that give a true and fair view and are free from material
misrepresentations, or the override of internal
misstatement, whether due to fraud or error.
control.
In preparing the consolidated financial statements, • Obtain an understanding of internal financial
the respective Management and Board of Director of control relevant to the audit in order to design
the companies included in the group are responsible audit procedures that are appropriate in the
126
circumstances. Under section 143(3)(i) of the Act, Materiality is the magnitude of misstatements in
we are also responsible for expressing our opinion the financial statements that, individually or in
on whether the Company has adequate internal aggregate, makes it probable that the economic
financial controls with reference to consolidated decisions of a reasonably knowledgeable user of
financial statements in place and the operating the financial statements may be influenced. We
effectiveness of such controls. consider quantitative materiality and qualitative
• Evaluate the appropriateness of accounting factors in (i) planning the scope of our audit
policies used and the reasonableness of work and in evaluating the results of our work;
accounting estimates and related disclosures and (ii) to evaluate the effect of any identified
made by the management. misstatements in the financial statements.
• Conclude on the appropriateness of We communicate with those charged with
management’s use of the going concern basis
governance regarding, among other matters,
of accounting and, based on the audit evidence
the planned scope and timing of the audit and
obtained, whether a material uncertainty exists
significant audit findings, including any significant
related to events or conditions that may cast
deficiencies in internal control that we identify
significant doubt on the Company’s ability to
during our audit.
continue as a going concern. If we conclude that
a material uncertainty exists, we are required We also provide those charged with governance
to draw attention in our auditor’s report to the with a statement that we have complied
related disclosures in the consolidated financial with relevant ethical requirements regarding
statements or, if such disclosures are inadequate, independence, and to communicate with
to modify our opinion. Our conclusions are based them all relationships and other matters that
on the audit evidence obtained up to the date may reasonably be thought to bear on our
of our auditor’s report. However, future events independence, and where applicable, related
or conditions may cause the Group to cease to safeguards.
continue as a going concern.
From the matters communicated with those
• Evaluate the overall presentation, structure and
charged with governance, we determine those
content of the consolidated financial statements,
matters that were of most significance in the
including the disclosures, and whether the
consolidated financial statements represent the audit of the consolidated financial statements
underlying transactions and events in a manner of the current period and are therefore the key
that achieves fair presentation. audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes
• Obtain sufficient appropriate audit evidence
public disclosure about the matter or when, in
regarding the financial information of the
extremely rare circumstances, we determine that
entities or business activities within the group to
express an opinion on the consolidated financial a matter should not be communicated in our report
statements. We are responsible for the direction, because the adverse consequences of doing so
supervision and performance of the audit of the would reasonably be expected to outweigh the
financial statements of such entities included in public interest benefits of such communication.
the consolidated financial statements of which Other Matters:
we are the independent auditors. For the other 1. The financial statements of the Group for the year
entities included in the consolidated financial ended March 31, 2023 were audited by another
statements, which have been audited by other auditor whose revised report dated December
auditors, such other auditors remain responsible 30, 2023 expressed a modified opinion on those
for the direction, supervision and performance of statements.
the audits carried out by them. We remain solely
2. We did not audit the financial statements of two
responsible for our audit opinion.
subsidiaries whose financial statements reflect
127
total assets of Rs. 46,559.95 lakhs as at March Consolidated Statement of Changes in Equity
31, 2024 and total Revenues of Rs. 39,689.39 dealt with by this report are in agreement
lakhs for the year ending March 31, 2024 and net with the books of account maintained for
cash flows amounting to Rs. 4,939.11 Lakhs for the purpose of preparation of consolidated
the year ending March 31, 2024, as considered financial statements.
in the consolidated financial statements. The d) Except for the possible effects of the
consolidated financial statements also include the matters described in the “Basis for Qualified
group’s share of net loss ofRs. 5.66 lakhs for the Opinion” paragraph above, in our opinion,
year ended March 31, 2024 as considered in the the aforesaid consolidated Ind AS financial
consolidated financial statements in respect of statement comply with the Indian Accounting
one associate. These financial statements have Standards specified under Section 133 of the
been audited by other auditors whose reports Act.
have been furnished to us by the Management e) Based on revised audit report of The Mysore
and our opinion on the consolidated financial Chrome Tanning Company Limited (MCTCL)
statements, in so far as it relates to the amounts the matters related to MCTCL described in
and disclosures included in respect of the basis for adverse opinion paragraphs above
associate, and our report in terms of sub-sections and also stated in Emphasis of Matter, in the
(3) and (11) of Section 143 of the Act, in so far opinion of MCTCL’s Independent Auditor, may
have an adverse effect on the functioning of
as it relates to the aforesaid associate, is based
the MCTCL.
solely on the reports of the other auditors.
(f) Being a government company, reporting on
Our opinion is not qualified in respect of this matter.
the matter of disqualification of Directors of
Report on Other Legal and Regulatory Requirements the Company under Section 164(2) of the Act
1. As required by Section 143 (3) of the Act, based is not applicable in terms of Notification no.
on our audit and on the consideration of the G.S.R. 463 (E) dated 05.06.2015 issued by
reports of the other auditors on the separate Ministry of Corporate Affairs.
financial statements of the subsidiaries referred g) With respect to the adequacy of the
to in the other matters section above we report, internal financial controls with reference to
to the extent applicable, that: consolidated financial statements and the
a) We have sought and obtained all the operating effectiveness of such controls,
information and explanations which to refer to our separate Report in “Annexure
the best of our knowledge and belief were B” which is based on the auditor’s reports
of the Parent, Subsidiary companies. Our
necessary for the purposes of our audit of the
report expresses an Qualified opinion on
aforesaid consolidated financial statements.
the adequacy and operating effectiveness of
b) Except for the possible effects of the
the internal financial controls over financial
matters described in the “Basis for Qualified
reporting with reference to consolidated
Opinion” paragraph above, in our opinion
financial statements of those companies.
proper books of accounts as required by
law have been kept by the group including (h) Being a government company, reporting
relevant records relating to preparation of the on the matters of managerial remuneration
aforesaid consolidated financial statements under Section 197(16) of the Act is not
so far as it appears from our examination of applicable in terms of Notification no. G.S.R.
those books. 463 (E) dated 05.06.2015 issued by the
c) The Consolidated Balance Sheet, the Ministry of Corporate Affairs.
Consolidated Statement of Profit and Loss (i) With respect to the other matters to be
including other comprehensive income, the included in the Auditor’s Report in accordance
Consolidated Cash Flow Statement and with Rule 11 of the Companies (Audit and
128
Auditors) Rules, 2014, as amended, in our provide any guarantee, security or the like
opinion and to the best of our information on behalf of the Ultimate Beneficiaries.
and according to the explanations given to 2 The respective managements of the Parent
us: and its subsidiaries which are companies
i. The Consolidated financial statements incorporated in India, whose financials
disclose the impact of pending litigations have been audited under the Act, have
on its consolidated financial position of represented to us and to the other auditors
the Group. Refer Note no. 39(3) of the of such subsidiaries respectively that, to
consolidated financial statements. the best of their knowledge and belief, no
Additionally, for Mysore Crome Tanning funds have been received by the Parent or
Company Limited does not have any pending any of such subsidiaries from any person(s)
litigations which would impact its financial or entity(ies), including foreign entities
position except dispute related to recovery (“Funding Parties”), with the understanding,
of compensation amount from Bangalore whether recorded in writing or otherwise, that
Development Authority, on land for an area the Parent or any of such subsidiaries shall,
of 5777 square yards acquired for road directly or indirectly, lend or invest in other
purpose persons or entities identified in any manner
whatsoever by or on behalf of the Funding
ii. The Group did not have any long-term
Party (“Ultimate Beneficiaries”) or provide
contracts including derivative contracts for
any guarantee, security or the like on behalf
which there were any material foreseeable
of the Ultimate Beneficiaries; and
losses.
3 Based on the audit procedures conducted
iii. There were no amounts which were required
by us and that performed by the auditors
to be transferred to the Investor Education
of the subsidiaries which are companies
and Protection Fund by the Parent and its
incorporated in India whose financial
subsidiary companies.
statements have been audited under the
iv. 1 The respective managements of
Act, nothing has come to our notice that has
the Parent and its subsidiaries which are
caused us or the other auditors to believe
companies incorporated in India, whose
that the representations under sub-clause (i)
financial statements have been audited
and (ii) contain any material misstatements.
under the Act, have represented to us and
v. The final dividend proposed in the previous year,
to the other auditors of such subsidiaries
declared or paid by the Parent Company and its
respectively that, to the best of its knowledge
subsidiaries which are companies incorporated in
and belief, no funds have been advanced
India, whose financials have been audited under
or loaned or invested (either from borrowed
the Act, where applicable, during the year is in
funds or share premium or any other sources
accordance with Section 123 of the Companies
or kind of funds) by the Parent or any of such
Act, 2013.
subsidiaries to or in any other person(s)
or entity(ies), including foreign entities vi. Based on our examination, which included test
(“Intermediaries”), with the understanding, checks and that performed by the respective
whether recorded in writing or otherwise, auditors of the subsidiaries and based on
that the Intermediary shall, whether directly the other auditor’s reports of its subsidiary
or indirectly lend or invest in other persons or companies, whose financials have been audited
entities identified in any manner whatsoever under the Act, the Parent and its subsidiary
by or on behalf of the Parent or any of such companies have used accounting software for
subsidiaries (“Ultimate Beneficiaries”) or maintaining its books of account which have
129
a feature of recording audit trail facility and the on preservation of audit trail as per the statutory
audit trail feature has been operating throughout requirements for record retention is not applicable
the year for all relevant transactions recorded for the year ended March 31, 2024.
in the software in respect of Beverages division 2. As required by the Companies (Auditor’s Report)
of the Parent Company and Karnataka State Order, 2020 (“the Order”) issued by the Central
Marketing Communication & Advertising Limited Government in terms of Section 143(11) of the
(Formerly known as Marketing Communication Act, we give in “Annexure C” a statement on the
& Advertising Limited), the subsidiary company. matters specified in paragraphs 3 and 4 of the
Further, during the course of our audit we and Order.
respective other auditors, whose reports have
been furnished to us by the Management of the
Parent, have not come across any instance of the
audit trail feature being tampered with. In case
Sd/-
of other divisions of the Parent Company and
the other subsidiary company, the accounting
PARTNER
software does not have the audit trail feature.
As proviso to Rule 3(1) of the Companies
UDIN:24100892BJZXVK4603
(Accounts) Rules, 2014 is applicable from April
1, 2023, reporting under Rule 11 (g) of the Place: Bengaluru
Companies (Audit and Auditors) Rules, 2014 Date: Sept 27, 2024
130
ANNEXURE “A” TO THE REVISED INDEPENDENT AUDITOR’S REPORT
List of Subsidiaries and Associate
Sr
Name of the Company Category
No
1 Karnataka State Marketing Communication & Advertising Limited (Formerly Subsidiary
known as Marketing Communication & Advertising Limited)
2 The Mysore Chrome Tanning Company Limited Subsidiary
3 Food Karnataka Limited Associate

Sd/-
PARTNER
Place: Bengaluru
Date: Sept 27, 2024
131
ANNEXURE “B” TO THE REVISED INDEPENDENT of the Company based on our audit. We conducted
AUDITOR’S REPORT our audit in accordance with the Guidance Note on
Audit of Internal Financial Controls Over Financial
(Referred to in paragraph 1(g) under ‘Report on
Reporting (the “Guidance Note”) issued by the Institute
Other Legal and Regulatory Requirements’ section
of Chartered Accountants of India and the Standards
of our report to the Members of Mysore Sales
on Auditing prescribed under Section 143(10) of the
International Limited of even date)
Companies Act, 2013, to the extent applicable to an
Report on the Internal Financial Controls Over audit of internal financial controls. Those Standards
Financial Reporting under Clause (i) of Sub-section and the Guidance Note require that we comply with
3 of Section 143 of the Companies Act, 2013 (“the ethical requirements and plan and perform the audit to
Act”) obtain reasonable assurance about whether adequate
Report on the Internal Financial Controls under internal financial controls over financial reporting
Clause (i) of Sub-section 3 of Section 143 of the was established and maintained and if such controls
Companies Act, 2013 (“the Act”) operated effectively in all material respects.
We have audited the Internal Financial Controls over Our audit involves performing procedures to obtain
Financial Reporting of Mysore Sales International audit evidence about the adequacy of the internal
Limited (“the Parent”) and its subsidiary companies financial controls system over financial reporting and
and associate as of March 31, 2024 in conjunction with their operating effectiveness. Our audit of internal
our audit of the consolidated financial statements of financial controls over financial reporting included
the Company, its subsidiaries and associate for the obtaining an understanding of internal financial
year ended on that date. controls over financial reporting, assessing the risk that
a material weakness exists, and testing and evaluating
Management’s Responsibility for Internal Financial
the design and operating effectiveness of internal
Controls
control based on the assessed risk. The procedures
The Board of Directors of the Company is responsible for selected depend on the auditor’s judgement, including
establishing and maintaining internal financial controls the assessment of the risks of material misstatement
based on the internal control over financial reporting of the financial statements, whether due to fraud or
criteria established by the Company considering the error.
essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls We believe that the audit evidence we have obtained,
Over Financial Reporting issued by the Institute of is sufficient and appropriate to provide a basis for our
Chartered Accountants of India. These responsibilities audit opinion on the internal financial controls system
include the design, implementation and maintenance over financial reporting of the Company.
of adequate internal financial controls that were
Meaning of Internal Financial Controls Over
operating effectively for ensuring the orderly and
Financial Reporting
efficient conduct of its business, including adherence
to respective company’s policies, the safeguarding A company’s internal financial control over financial
of its assets, the prevention and detection of frauds reporting is a process designed to provide reasonable
and errors, the accuracy and completeness of the assurance regarding the reliability of financial reporting
accounting records, and the timely preparation of and the preparation of financial statements for external
reliable financial information, as required under the purposes in accordance with generally accepted
Companies Act, 2013. accounting principles. A company’s internal financial
control over financial reporting includes those policies
Auditor’s Responsibility and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly
Our responsibility is to express an opinion on the
reflect the transactions and dispositions of the assets
internal financial controls over financial reporting
132
of the company; (2) provide reasonable assurance classification of financial assets based
that transactions are recorded as necessary to permit on the significant increase in credit risk
preparation of financial statements in accordance and consequently determination of the 12
with generally accepted accounting principles, and months ECL and lifetime ECL which may
that receipts and expenditures of the company are have financial impact on the consolidated
being made only in accordance with authorisations of financial statements.
management and directors of the company; and (3)
3. The Company has the unreconciled balances
provide reasonable assurance regarding prevention
of subscribers amounting to Rs. 1196.65
or timely detection of unauthorised acquisition, use, or
lakhs which may have financial impact on the
disposition of the company’s assets that could have a
consolidated financial statements.
material effect on the financial statements.
4. The division does not have proper internal
Limitations of Internal Financial Controls Over
controls to identify the surplus funds and
Financial Reporting
have not complied with the requirements of
Because of the inherent limitations of internal investing the surplus funds as per Circular
financial controls over financial reporting, including No. FD 91 TAR 2022 dated 02.07.2022 issued
the possibility of collusion or improper management by Finance Department of Government of
override of controls, material misstatements due to Karnataka
error or fraud may occur and not be detected. Also,
b. The financial and operating controls established
projections of any evaluation of the internal financial by the Company for the prompt, periodic and up-
controls over financial reporting to future periods are to-date reconciliation of payables and receivables
subject to the risk that the internal financial control are not working effectively, which may have
over financial reporting may become inadequate a financial impact on consolidated financial
because of changes in conditions, or that the degree statements.
of compliance with the policies or procedures may
c. The Company does not have an integrated ERP
deteriorate.
system. Different software packages used by the
Basis for Qualified Opinion Company are interfaced through software links or
manual intervention leaving gaps between them.
According to the information and explanations given
This could potentially result into impaired financial
to us and based on our audit, the following material
reporting. Also the majority of software does not
weakness have been identified as at March 31, 2024.
have an audit trail feature except for Beverage
a. Chit Fund Division: division which could impact the financials.
1. In the absence of (i) proper internal control d. The Company has not provided the physical
measures in place; (ii) support for generation verification report of the property, plant and
of accurate and required reports from the equipment (PPE). This could potentially result
software deployed; (iii) any defined system in the understatement/overstatement of the
and timely closure of books for offline balances of PPE, inaccurate depreciation
branches (Shivamoga and Kengeri), there provision and assessment of impairment.
may be financial impact on the consolidated A ‘material weakness’ is a deficiency, or a combination
financial statements. of deficiencies, in internal financial control over financial
2. The Company does not have sufficient reporting, such that there is a reasonable possibility
information about the accuracy and that a material misstatement of the company’s annual
reasonableness of various parameters or interim financial statements will not be prevented or
including the “Probability of Default (%), detected on a timely basis.
Loss Given Default (%) and the basis of
133
We draw attention to the following material weakness (c) There is an inordinate delay in reconciliation and
included in the report on Internal Financial Controls adjustment of the amounts received from various
Over Financial Reporting issued by independent firm of Debtors, TDS and GST TDS made by the debtors
Chartered Accountants vide their Revised Audit Report and appropriation of the same towards the
dated September 24,2024on financial statements amounts due from the debtors. In the process, as
of Karnataka State Marketing Communication & of the date of the Balance Sheet under audit, the
Advertising Limited (Formerly known as Marketing following amounts have remained unreconciled,
Communication & Advertising Limited), the subsidiary unidentified and unappropriated:
of the holding company reproduced by us as under: - Amount Unadjusted for
(a) As per the order of the Government of Karnataka, Particulars (Rs. in the years
the goods and the services supplied by or caused lakhs) (Rs. in lakhs)
to be supplied by the Company entitles it to a Amounts 810.04 < 1 year: 16.57
margin of profit at a specified percentage for Other Collected from the 1-2 years: 136.73
Media & Events, Production and Media Contracts. unidentified Debtors 2- 3 years: 235.03
The terms of the contract as are prevalent now > 3 years: 47.17
provide that the quotations are called for by the GST TDS to be 1,260.63 F.Y. 18-19: 65.57
Company from the empaneled suppliers and adjusted F.Y. 19-20: 142.95
the quotations are forwarded to the various F.Y. 20-21: 174.70
departments of the Government of Karnataka F.Y. 21-22: 197.85
and its agencies. Once the supplier of goods F.Y. 22-23: 364.37
and services is chosen by the buyer departments F.Y. 23-24: 315.16
and agencies of the Government, the Company Income Tax TDS to 1,483.94 F.Y. 21-22: 279.74
awards the contract to the successful empaneled be adjusted F.Y. 22-23: 601.84
supplier. F.Y. 23-24: 602.34
Though the Company has no say in the matter The inordinate delay in reconciliation of the same has
of the amounts quoted by the suppliers, keeping led to an increase in such unreconciled and unadjusted
in view of the Contractual terms between the balances year after year.
Government and the Company, the same warrants
that the Company evaluates the quotation so (d) Trade Advances and Other Receivables shown
received as to whether the prices quoted are under Note No. 7 to the financials amounting
reasonable and comparable to the prevalent to Rs.119.63 lakhs which represents target
market prices. Such an evaluation is not being incentives receivables to the extent of Rs. 68.51
done by the Company before it forwards the lakhs and advances paid to the extent of Rs.
quotations received from the bidding suppliers. 51.12 lakhs which have remained unrecovered
As a result, the Company is not aware whether for more than 3 years.
the prices quoted by the suppliers and accepted (e) Non-reconciliation of Income Tax Refunds
by the Government Departments are reasonable receivable for the period beginning from 2007-
or not. 08 to 2023-24 amounting to Rs. 623.65 lakhs as
(b) Awarding of contracts of substantially higher appearing in the Books of account.
amounts to a single party without calling for (f) Non-reconciliation of Income Tax demands for
tenders by bifurcating or sub-dividing the whole the Assessment years from A.Y. 2002-03 to A.Y.
contract(s) in order to overcome the process of 2018-19 for which refunds of other years have
calling for tenders are seen, and such instances
been adjusted to the extent of Rs. 542.28 lakhs.
are to be avoided in order to avoid dilution of the
effect of internal controls and internal audit. g) (g) Trade Payable which are due for more than
3 years amounting to Rs.1,891.76 lakhs have
remained unreconciled for an undue longer
134
period and the amounts so being accumulated inadequate and to be strengthened in
are increasing year after year. The situation order to ensure that all the aforesaid issues
warrants immediate attention of the management pending for longer years are reconciled,
to investigate into the matter and to bring the recovered and adjusted at the earliest and
reasons for the same on record and evaluate the reoccurrence of such situation in the future
existence or otherwise of such liability and to write years are avoided to bring more clarity and
back the liabilities that are no longer required, in reliability in the accounting data.
order to avoid any scope for misuse of the same. (i) The Company’s Internal control over accounting
Keeping view of the fact that no creditors would and reporting of Property, Plant and Equipment
allow the Company to retain their funds for such a is not commensurate to the size of operations as
long period. per errors in reclassification noted in Note No. 3
h) The Company’s Internal Controls over action to the Notes forming part of subsidiary’s Annual
regarding recovery of dues caused by fraud Accounts
and misappropriation by employees is not (j) The Company’s Internal control over accounting
commensurate with the size of the operations: and reporting of Provisions for Unbilled Revenue
(i) As per the information given to us, and as is not commensurate to the size of operations,
specified in Note No. 41(x) to the financials, a due to the following reasons:
criminal case filed against one of employees Based on our sample checking, we found
of the Company who is under suspension instances relating to Other Media & Events
was withdrawn after recovery of the amount department, where the completion certificate by
from the said employee. the Company is not available but only photos
of work done is provided and placed in the file.
(ii) Having regard to the fact that the payment
The sample file nos. are 3852, 3738, 3742, 3925,
of the defrauded amount by itself would
3682, 3774, 4138, 3907 among others.
not absolve the employee committing such
frauds and hence the decision for withdrawal (k) The Company’s Internal control over accounting
of the criminal case by the management and reporting of Income and Expenses of the
appears to be unwarranted. It may be noted Other Media & Events department and Production
that immediately after withdrawal of the department is not commensurate to the size of
case by the Company, instances of more operations, due to the following reasons:
fraudulent acts of higher value committed by (i) Based on our sample checking, we found that
the said employee have come to notice and Work Completion Certificates and Photos /
the Company is yet to take action against other proof of works are not available with
him. The facts relating to the same can be the Company. Sample Invoice Nos. are 3966/
seen in Note No. 41(x) to the financials. OM/23-24, 5024/OM/23-24, 5003/OM/23-
(iii) The said instance appears to be against 24 among others. File Nos. of Production
commercial prudence and not in the best department checked include: 407, 396, 392,
394, 60, 82, 430 among others.
interests of the Company. The controls
with regard to such instances warrant (ii) Based on our sample checking, we found
strengthening. that Job Requisition Letter, Enquiry Replies,
Work orders were not documented in the
Considering all the aforesaid factors and
files maintained by the Company and were
keeping in view the size of the Company and
placed in the file only after observations
the nature of its business, we are compelled
made during the course of the audit. Sample
to report that the Internal Audit and Internal
file nos. include: 4012, 4000, 4001, 4002
Control Systems in the Company are
among others.
135
(iii) Based on our sample checking, we found Qualified Opinion
instances where additional payments were
In our opinion, except for the possible effects of the
made to vendors for which Work Completion
material weakness described above on the achievement
certificate and Photos of the event were not
of the objectives of the control criteria, the Group has
available in the file and photos were placed
maintained, in all material respects, adequate internal
only after audit observations were made.
financial controls over financial reporting and such
This indicates lack of internal systems and
internal financial controls over financial reporting were
control in documentation and lack of control
operating effectively as of March 31, 2024, based on
and procedures in requisitioning work and
the internal control over financial reporting criteria
making payments. Sample file nos. include:
established by the Group considering the essential
3833, 3836, 3185.
components of internal control stated in the Guidance
(iv) Based on our sample checking, we noted Note on Audit of Internal Financial Controls Over
in certain cases that Tender Forms were Financial Reporting issued by the Institute of Chartered
not signed by Authorized Signatory of the Accountants of India.
Company.
We have considered the material weakness identified
(l) The Company’s internal control system over
and reported above in determining the nature,
reporting of shares held and transferred is not
timing, and extent of audit tests applied in our audit
adequate considering that the Company does not
of consolidated financial statements of the Company
maintain copies of the Share Certificates issued
for the year ended March 31, 2024 and the material
to the shareholders of the Company and does not
weakness has affected our opinion on the consolidated
maintain the register of share transfers.
financial statements of the Company and we have
(m) The Company does not have Internal Control issued a qualified opinion on the consolidated financial
System and Standard Operating Procedures for statements.
availing the services of freelancers in various For Sorab S. Engineer & Co.
departments of the Company. No standard
agreements are entered into with the freelancers
and payments are made against invoices issued
Sd/-
by the freelancers.
(n) The Company does not have Standard Operating PARTNER
Procedures and Risk Control Matrices for the Membership No. 100892
various processes of the Company, including the UDIN:24100892BJZXVK4603
processes involved in preparation of the books
Place: Bengaluru
of account and the financial statement, creation
of ledger accounts and classification of ledger
accounts in the books of accounts.
136
ANNEXURE ‘C’ TO THE REVISED INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our
report to the Members of Mysore Sales International Limitedof even date)
As required by paragraph 3(xxi) of the Companies (Auditor’s Report) Order, 2020, (“CARO”) we report that the
auditors of the following companies have given qualification or adverse remarks in their report on the standalone
financial statements of the respective companies included in the Consolidated Financial Statements of the
holding company:
Date of the Paragraph

Sr. respective number in the
Name of the Company CIN Category
No. auditor’s r respective
eport CARO reports
1 Mysore Sales International U85110KA196 Holding September 6, Para (i)(b)
Limited 6SGC001612 company 2024 Para (vi)
2 Karnataka State Marketing U51101KA197 Subsidiary August 16, 2024 Para (i)(c)
Communication and Advertising 2PLC002242 Para (xiv) (a)
Limited (Formerly known as
Marketing Communication &
Advertising Limited)
3 The Mysore Chrome Tanning U85110KA194 Subsidiary September 6, Para (ix)(a) Para
company Limited 0SGC000261 2024 (xix)

Sd/-
PARTNER
Place: Bengaluru
137
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION
143(6)(b) READ WITH SECTION 129 (4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED
FINANCIAL STATEMENTS OF MYSORE SALES INTERNATIONAL LIMITED, BANGALORE FOR
THE YEAR ENDED 31 MARCH 2024
The preparation of consolidated financial statements of Mysore Sales International Limited for the
year ended 31st March 2024 in accordance with the financial reporting framework prescribed under the
Companies Act, 2013 (Act) is the responsibility of the management of the Company. The Statutory Auditor
appointed by the Comptroller and Auditor General of India under Section 139(5) read with section 129(4) of
the Act is responsible for expressing opinion on the financial statements under section 143 read with section
129(4) of the Act based on independent audit in accordance with the standards on auditing prescribed under
section 143(10) of the Act. This is stated to have been done by them vide their Revised Audit Report dated
27 September 2024 which supersedes their earlier Audit Report dated 10 September 2024.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the
consolidated financial statements of Mysore Sales International Limited, Bengaluru for the year ended 31st
March 2024 under section 143(6)(a) read with section 129(4) of the Act. We conducted supplementary audit of
the financial statement of Mysore Sales International Limited, Karnataka State Marketing Communication
& Advetising Limited and The Mysore Crome Tanning Company Limited but did not conduct supplimentary
audit of the financial statements of Food Karnataka Limited for the year ended 31st March 2024. This
supplimentary audit has been carried out independently without access to the working papers of the statutory
auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective
examination of some of the accounting records.
In view of the revision made in the Statutory Auditor’s Report, to give effect to some of my audit
observations raised during supplementary audit, I have no further comments to offer upon or supplement to the
statutory auditor’s report under section 143(6)(b) of the Act. Read with section 129(4) of the Act.

Comptroller & Auditor General of India
Sd/-
(VIMALENDRA ANAND PATWARDHAN)
Pr. ACCOUNTANT GENERAL (AUDIT-II)
KARNATAKA, BENGALURU
BENGALURU
Date: 30 September 2024
138
CIN:U85110KA1966SGC001612
Consolidated Balance Sheet as at March 31, 2024
As at As at
Particulars Note
March 31, 2024 March 31, 2023
I ASSETS
Non-current assets
(a) Property, plant and equipment 2 5,118.91 5,493.93
(b) Capital work-in-progress 3 533.96 592.83
(c) Investment properties 4 3,729.13 3,847.40
(d) Other intangible assets 5 13.35 20.69
(e) Right-of-use assets 5A 1,292.82 860.27
(f) Financial assets
(i) Investments 6 3,594.67 2,404.93
(ii) Other financial assets 7 16,209.69 17,854.75
(iii) Non-current bank balances 12 4,432.13 4,247.52
(g) Deferred tax assets (net) 29 2,854.66 2,800.89
(h) Other non-current assets 8 200.85 248.27
(i) Non Current tax asset (net) 8A 4,406.03 4,139.85
Total non-current assets 42,386.20 42,511.33
Current assets
(a) Inventories 9 15,925.70 15,844.24
(b) Financial assets
(i) Trade receivables 10 25,230.78 19,312.72
(ii) Cash and cash equivalents 11 15,608.95 10,174.78
(iii) Bank balances other than (ii) above 12 44,477.28 31,580.89
(iv) Other financial assets 7 17,523.96 11,927.18
(c) Other current assets 8 5,295.50 9,601.01
Total current assets 124,062.17 98,440.82
Asset Held for Sale 30 409.07 414.73
Total assets 166,857.44 141,366.88
139
Equity
(a) Equity share capital 13 4,273.48 4,273.48
(b) Other equity 14 81,310.10 70,713.89
(c) Non controlling Interest - (35.73) (36.62)
Total equity 85,547.85 74,950.75
Liabilities
(i) Borrowings 15A 149.28 174.55
(ii) Lease Liability 15B 438.14 342.75
(iii) Other Financial Liabilities 15C 17,539.74 15,015.82
(b) Provisions 16 830.38 878.66
(c) Other Non-current Liabilities 17 36.72 36.72
Total non-current liabilities 18,994.26 16,448.50
Current liabilities
(a) Total outstanding dues of micro and small 3,195.19 2,694.04
enterprises
(b) Total outstanding dues other than above 31,940.97 26,523.86
(ii) Borrowings 15A - -
(iii) Lease Liability 15B 725.06 382.77
(iv) Other financial liabilities 15C 21,430.15 15,037.85
(b) Other liabilities 17 4,768.00 5,113.78
(c) Current tax Liabilities (net) 8B 7.76 -
(d) Provisions 16 248.20 215.33
Total current liabilities 62,315.33 49,967.63
Total equity and liabilities 166,857.44 141,366.88

See accompanying notes forming part of the Consolidated Financial Statements
Sd/- Sd/-
Sd/-
DIN: 07745825 DIN: 09379177
PARTNER Sd/- Sd/-
Date : September 10, 2024
140
CIN:U85110KA1966SGC001612
Consolidated Statement of Profit and Loss for the year ended March 31, 2024

Particulars Note
March 31, 2024 March 31, 2023
Continuing operations
Income
Revenue from operations 19 376,424.14 340,421.62
Other income 20 4,113.29 3,433.99
Total income 380,537.43 343,855.61
Expenses
Cost of materials consumed 21 2,853.94 1,742.54
Purchase of Stock-in-trade 22 303,883.87 265,845.06
Cost of Services 23 31,861.48 40,344.44
Changes in inventories of finished goods and stock-in-trade 24 (197.25) (1,100.41)
Employee benefits expense 25 2,485.08 2,419.31
Finance costs 26 239.43 180.00
Depreciation and amortization expense 27 2,017.62 1,904.75
Other expenses 28 22,135.09 21,314.73
365,279.26 332,650.42
Profit before exceptional items, share of net profit/(loss) of 15,258.17 11,205.19
investment accounted using equity method and tax from
continuing operations
Group’s share of net loss of associates accounted for using (5.66) (14.28)
equity method
Profit before tax from continuing operations 15,252.51 11,190.91
Tax expense 29
(a) Current tax 4,045.19 3,336.47
(b) Deferred Tax Charge/(Credit) (349.42) (608.09)
(c) Short provision of tax for earlier years 25.92 35.28
Profit for the year from continuing operations 11,530.82 8,427.25
Discontinued operations 30
Profit/(loss) before tax for the year from discontinued 5.32 (2.82)
operations
Tax Income/ (expense) of discontinued operations (1.34) 0.71
Profit/ (loss) for the year from discontinued operations 3.98 (2.11)
Profit for the year 11,534.80 8,425.14
141
Other comprehensive income
(a) Items that will not be reclassified to profit or loss
Net (loss)/gain on equity instruments through Other Comprehensive 31 1,189.74 (19.01)
Income
Income tax effect on above 29 (300.79) 4.78
Re-measurement gains/ (losses) on defined benefit plans 31 (1.38) 2.50

Income tax effect on above 29 5.14 (0.45)
Other comprehensive income for the year, net of tax 892.71 (12.18)
Total comprehensive income for the year 12,427.51 8,412.96
Net Profit attributable to:

Equity Holders of Parent company 11,533.91 8,425.00
Non Controlling Interest 0.89 0.14
Total other comprehensive income/(loss) (net of taxes) attributable

to:
Equity Holders of Parent company 892.71 (12.18)
Non Controlling Interest - -
Total comprehensive income/(loss) (net of taxes) attributable to:

Equity Holders of Parent company 12,426.62 8,412.82
Non Controlling Interest 0.89 0.14
Earnings per share (Nominal Value per share Rs. 100/-) 32

Basic & Diluted (Rs.)
For Continued operations 269.82 197.20
For Discontinued operations 0.09 (0.05)
For Continued and Discontinued operations 269.92 197.15
Sd/- Sd/-
Sd/-
DIN: 07745825 DIN: 09379177
PARTNER Sd/- Sd/-
142
CIN:U85110KA1966SGC001612
Consolidated Statement of Cash Flow for the year ended March 31, 2024
Particulars
March 31, 2024 March 31, 2023
A. Cash flow from operating activities
Profit before tax and exceptional items as per Statement of Profit and Loss 15,257.83 11,188.09
Adjustments to reconcile profit before tax to net cash flows:
Dividend (11.53) (6.11)
Excess Provision no longer required (172.35) (131.13)
Interest income (3,131.78) (1,918.85)
Profit/Loss on sale of property, plant and equipment 3.24 (6.11)
Rental income on investment Property (595.66) (851.04)
Depreciation and amortisation expenses 2,017.62 1,904.75
Finance Cost 239.43 179.99
Adjustment on Consolidation (2.54) -
Group’s share of net loss of associates accounted for using equity method 5.66 14.28
Operating profit before working capital changes 14,112.76 10,811.03
Adjustments for changes in working capital :
(Increase)/Decrease in trade receivables (6,420.90) (2,598.18)
(Increase)/Decrease in inventories (81.46) (1,188.87)
(Increase)/Decrease in other assets 4,324.34 (3,619.18)
(Increase)/Decrease in other financial assets (3,951.72) (10,549.05)
Increase/(Decrease) in trade payables 6,036.73 9,976.06
Increase/(Decrease) in other liabilities (345.78) 2,413.02
Increase/(Decrease) in other financial liabilities 8,970.10 486.61
Increase/(Decrease) in provisions (16.79) (52.81)
Net Changes in Working Capital 8,514.52 (5,132.40)
Cash generated from operations 22,627.28 5,678.63
Taxes paid, net (4,330.87) (3,249.39)
Net cash generated from operating activities 18,296.41 2,429.24
B. Cash flow from investing activities
Purchase of Property, Plant & Equipment (including capital advances) (703.94) 2,265.93
Proceeds from disposal of Property, Plant & Equipment 3.39 -
Purchase of Intangible Assets (2.95) -
Changes in other bank balances not considered as cash and cash equivalents (12,604.91) (13,089.01)
Investment income (Rental income on investment Property) 595.66 851.04
Interest received 2,655.69 1,518.14
Dividend received 11.53 6.11
Net Cash Flow used in Investing Activities (10,045.53) (8,447.79)
143
C. Cash flow from Financing activities
Finance cost paid (161.51) 75.83
Dividend paid (1,827.87) (1,105.19)
Net cash used in financing activities (2,816.71) (1,660.44)
Net changes in cash and cash equivalents 5,434.17 (7,678.99)
Cash and cash equivalents as at beginning of the year 10,174.78 17,853.77
Cash and cash equivalents as at end of the year 15,608.95 10,174.78
Reconciliation of cash and cash equivalents

Particulars Year ended Year ended
March 31, 2024 March 31, 2023
Cash and cash equivalents :

Cash & Stamp on hand 2,078.42 1,012.85
Balances with Banks 13,526.29 9,154.13
Cash and cash equivalents as per Balance Sheet (Refer Note 11) 15,608.95 10,174.78
Cash and cash equivalents as per Cash flow Statement
See accompanying notes forming part of the Consolidated
Financial Statements
Disclosure under para 44A as set out in Ind AS 7 on Cash Flow Statements under Companies (Indian
Accounting Standards) Rules, 2015 (as amended)
Particulars of liabilities arising As at March 31, Cash Flows Other Changes As at March 31,
from financing activity 2023 2024
Lease Liability 725.52 (827.33) 1,265.01 1,163.20
Particulars of liabilities arising As at March 31, Cash Flows Other Changes As at March 31,
from financing activity 2022 2023
Lease Liability 1,081.88 (631.08) 274.72 725.52
Note:
The Cash Flow Statement has been prepared under the indirect method as set out in Indian Accounting
Standard (Ind AS 7) Statement of Cash Flows.
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CIN:U85110KA1966SGC001612
Consolidated Statement of Changes in Equity for the year ended March 31, 2024
A. Equity Share Capital

Particulars (Note 13) Amount
As at April 1, 2022 4,273.48
As at March 31, 2023 4,273.48
As at April 1, 2023 4,273.48

As at March 31, 2024 4,273.48
145
B. Other equity
Reserves and Surplus (Note 14)
Chit Fair Valuation of Equity Total Other
Particulars General Retained Capital
Reserve Instruments through Other Equity
reserves Earnings Reserve
Fund Comprehensive Income
Balance as at April 1, 2022 23,221.55 816.48 37,661.40 77.98 1,680.35 63,457.76
Profit for the year - - 8,425.14 - - 8,425.14
Other comprehensive income/(loss) for the year - - 19.92 - (14.23) 5.69
Total Comprehensive Income 23,221.55 816.48 46,106.46 77.98 1,666.12 71,888.59
Transfer (to)/ from retained earnings 200.00 111.73 (311.73) - - -
Less: Dividend paid during the year - - (1,105.19) - - (1,105.19)
Less: Share of Profit/(Loss) Non-Controlling Interest (0.14) - (0.14)
Less: KIADB Land (69.41) - (69.41)
Add: Taxes 0.04 - 0.04
Balance as at March 31, 2023 23,421.55 928.21 44,620.03 77.98 1,666.12 70,713.89
Balance as at April 1, 2023 23,421.55 928.21 44,620.03 77.98 1,666.12 70,713.89
146
Other comprehensive income/(loss) for the year - - 3.76 888.95 892.71
Total Comprehensive Income 23,421.55 928.21 56,158.59 77.98 2,555.07 83,141.40
Transfer (to)/ from retained earnings 200.00 175.14 (375.14) - -
Share of Profit -Non Controlling Interest (0.89) (0.89)
Adjustment On Consolidation (2.54) - - (2.54)
Balance as at March 31, 2024 23,621.55 1,103.35 53,952.15 77.98 2,555.07 81,310.10
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Notes forming part of Consolidated Financial Statements
1. Group overview and Material Accounting Historical cost is generally based on the fair value of
Policies Information the consideration given in exchange for goods and
services.
1.1 Group overview
Fair value is the price that would be received to sell
Mysore Sales International Limited (“the Company”)
an asset or paid to transfer a liability in an orderly
is a premier Government of Karnataka Undertaking,
transaction between market participants at the
dealing in various products & services. It was
measurement date, regardless of whether that price
established in 1966 as a trading house. The
is directly observable or estimated using another
registered office is located at Bangalore, Karnataka,
valuation technique. In estimating the fair value of
India. Since then, the Group has grown primarily as
an asset or a liability, the Group takes in to account
a marketing force with a national presence. It has a
the characteristics of the asset or liability, if the
wide network of offices all over Karnataka as well as
market participants would take those characteristics
in some major metros across the country. It markets
into account when pricing the asset or liability at the
products and services such as Indian made foreign
measurement date. Fair value for measurement and/
liquor, chit operations, paper products, imported sand,
or disclosure purposes in these financial statements is
Pharmaceuticals, Industrial and Consumer products.
determined on such a basis, except for share based
The Company has two subsidiaries and one associate
payment transactions that are within the scope of Ind
company.
AS 102, ‘Share-based Payment’, leasing transactions
1.2 Basis of preparation of financial statements that are within the scope of Ind AS 116, ‘Leases’, and
measurements that have some similarities to fair value
(i) Statement of Compliance but are not fair value, such as net realizable value in
Ind AS 2 ‘Inventories’, or value in use in Ind AS 36
The consolidatedfinancial statements of the Group
‘Impairment of assets’.
have been prepared in accordance with the Indian
Accounting Standards (IndAS) as notified under In addition, for financial reporting purposes, fair value
section 133 of the Companies Act 2013 read with the measurements are categorized into Level 1, 2, or 3
Companies (Indian Accounting Standards) Rules 2015 based on the degree to which the inputs to the fair value
by Ministry of Corporate Affairs (‘MCA’) except for Ind measurements are observable and the significance of
AS 109 – Financial Instruments in respect of Expected the inputs to the fair value measurements in its entirety,
Credit Loss on Chit Financial Assets. The Group has which are described as follows:
uniformly applied the accounting policies during the
periods presented. Level 1: Quoted prices (unadjusted) in active markets
for financial instruments.
The financial statements for the year ended March 31,
2024 were authorized and approved for issue by the Level 2: The fair value of financial instruments that
Board of Directors on10.09.2024. are not traded in an active market is determined
using valuation techniques which maximize the use
(ii) Basis of preparation of financial statements of observable market data rely as little as possible on
entity specific estimates.
The consolidatedfinancial statements have been
prepared on a going concern basis under the historical Level 3: Inputs for the assets or liabilities that are not
cost basis except for certain financial assets and based on the observable marked data (unobservable
liabilities which are measured at fair value. inputs)
147
(iii) Use of estimates • Power over the investee (i.e. existing rights
that give it the current ability to direct the
The preparation of financial statements is in conformity
relevant activities of the investee)
with generally accepted accounting principles which
require the management of the Group to make • Exposure, or rights, to variable returns from
judgements, estimates and assumptions that affect the its involvement with the investee, and
reported amount of revenues, expenses, assets and
liabilities and disclosure of contingent liabilities at the • The ability to use its power over the investee
end of the reporting period. Although these estimates to affect its returns
are based upon the management’s best knowledge of Generally, there is a presumption that a majority of voting
current events and actions, uncertainty about these rights result in control. To support this presumption and
assumptions and estimates could result in the outcomes when the Group has less than a majority of the voting
requiring a material adjustment to the carrying amounts or similar rights of an investee, the Group considers all
of assets or liabilities in future period. Appropriate relevant facts and circumstances in assessing whether
changes in estimates are made as management it has power over an investee, including:
becomes aware of changes in circumstances
surrounding the estimates. Application of accounting • The contractual arrangement with the other
policies that require significant accounting estimates vote holders of the investee
involving complex and subjective judgments and the • Rights arising from other contractual
use of assumptions in these financial statements have arrangements
been disclosed in note 1.3.
• The Group’s voting rights and potential voting
(iv) New Accounting Standards and amendments rights
not yet adopted by the Group
The Group re-assesses whether or not it controls an
The Ministry of Corporate Affairs (MCA) notifies new investee if facts and circumstances indicate that there
standards or amendments to the existing standards are changes to one or more of the three elements of
under Companies (Indian Accounting Standards) control. Consolidation of a subsidiary begins when the
Rules as issued from time to time. On March 31, 2024, Group obtains control over the subsidiary and ceases
there are no new standards or amendments to the when the Group loses control of the subsidiary. Assets,
existing standards notified by MCA. liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included
(v) Rounding of amounts
in the Consolidated Financial Statements from the
The consolidated financial statements are presented in date the Group gains control until the date the Group
Indian Rupee (“INR”) and all values are rounded to the ceases to control the subsidiary.
nearest Lakhs as per the requirement of Schedule III,
except when otherwise indicated. Profit or loss and each component of other
comprehensive income (OCI) are attributed to the
(vi) Principles of Consolidation of Subsidiaries equity holders of the parent of the Group and to the
The Group consolidates entities which it owns or non-controlling interests, even if this results in the non-
controls. The Consolidated Financial Statement controlling interests having a deficit balance. When
comprise the financial statements of the Group and necessary, adjustments are made to the financial
its subsidiaries. Control is achieved when the Group statements of subsidiaries to bring their accounting
is exposed, or has rights, to variable returns from policies into line with the Group’s accounting policies.
its involvement with the investee and has the ability All intra-group assets and liabilities, equity, income,
to affect those returns through its power over the expenses including unrealized gain /loss and cash
investee. Specifically, the Group controls an investee flows relating to transactions between members of the
if and only if the Group has: Group are eliminated in full on consolidation.
148
A change in the ownership interest of a subsidiary, (ii) All other assets are classified as non-current.
without a loss of control, is accounted for as an
(iii) A liability is classified as current when:
equity transaction. If the Group loses control over a
subsidiary, it: • It is expected to be settled in normal operating
cycle;
• Derecognises the assets (including goodwill)
and liabilities of the subsidiary • It is held primarily for the purpose of trading;
• Derecognises the carrying amount of any • It is due to be settled within twelve months
non-controlling interests after the reporting period, or
• Derecognises the cumulative translation • There is no unconditional right to defer the
differences recorded in equity settlement of the liability for at least twelve
months after the reporting period
• Recognises the fair value of the consideration
received (iv) All other liabilities are classified as non-current.
• Recognises the fair value of any investment (v) Deferred tax assets and liabilities are classified
retained as non-current assets and liabilities.
• Recognises any surplus or deficit in profit or Based on the nature of service and the time between
loss the acquisition of assets for development and their
realization in cash and cash equivalents, the Group
• Reclassifies the parent’s share of components
has ascertained its operating cycle as one year for the
previously recognised in OCI to profit or loss
purpose of current and non-current classification of
or retained earnings, as appropriate, as
assets and liabilities except for the assets and liabilities
would be required if the Group had directly
relating to Chit business.The operating cycle for the
disposed of the related assets or liabilities.
Chit business is dependent on the Chit tenor. A tenor of
(vii) Material Accounting Policies Information 40 months is considered to be the operating cycle for
ChitBusiness, being the most popular chit tenor.
a. Current versus non-current classification
b. Foreign currency transactions
The Group presents assets and liabilities in the balance
sheet based on current/ non-currentclassification. Functional and presentation currency
(i) An asset is classified as current when it is: The Group’s functional and presentation currency is
Indian Rupee. Transactions in foreign currencies are
• Expected to be realized or intended to sold
initially recorded by the Group’s functional currency
or consumed in normal operating cycle;
spot rates at the date the transaction first qualifies for
• Held primarily for the purpose of trading; recognition.
• Expected to be realized within twelve months Monetary assets and liabilities denominated in
after the reporting period, or foreign currencies are translated at the functional
currency spot rates of exchange at the reporting date.
• Cash or cash equivalent unless restricted Differences arising on settlement of such transaction
from being exchanged or used to settle a and on translation of monetary assets and liabilities
liability for at least twelve months after the denominated in foreign currencies at year end
reporting period. exchange rate are recognised in profit or loss. They
are deferred in equity if they relate to qualifying cash
flow hedges.
149
Non-monetary items that are measured in terms of the amount of consideration to which the Group
historical cost in a foreign currency are translated expects to be entitled in exchange for satisfying
using the exchange rates at the dates of the initial each performance obligation.
transactions. Non-monetary items measured at fair
Step 5. Recognize revenue when (or as) the entity
value in a foreign currency are translated using the
satisfies a performance obligation.
exchange rates at the date when the fair value is
determined. The gain or loss arising on translation of The Group satisfies a performance obligation
non-monetary items measured at fair value is treated and recognizes revenue over time, if one of the
in line with the recognition of the gain or loss on following criteria is met:
the change in fair value of the item (i.e., translation
differences on items whose fair value gain or loss is 1. The customer simultaneously receives and
recognised in OCI or profit or loss are also recognised consumes the benefits provided by the
in OCI or profit or loss, respectively). Group’sperformance as the Group performs;
or
c. Revenue recognition
2. The Group’s performance creates or
The Group has applied the following accounting enhances an asset that the customer controls
policy in the preparation of its consolidated as the asset is created or enhanced; or
financial statements:
3. The Group’s performance does not create
Revenue from contracts with customers an asset with an alternative use to the Group
and the entity has an enforceable right to
The Grouprecognizes revenue from contracts
payment for performance completed to date.
with customers based on a five step model as set
out in IndAs 115: For performance obligations where one of the
above conditions is not met, revenue is recognised
Step 1. Identify the contract(s) with a customer: A
at the point in time at which the performance
contract is defined as an agreement between two
obligation is satisfied.
or more parties that creates enforceable rights
and obligations and sets out the criteria that must When the Group satisfies a performance
be met for every contract. obligation by delivering the promised goods
or services it creates a contract asset based
Step 2. Identify the performance obligations in the
on the amount of consideration earned by the
contract: A performance obligation is a promise in
performance. Where the amount of consideration
a contract with a customer to transfer a good or
received from a customer exceeds the amount of
service to the customer.
revenue recognised this gives rise to a contract
Step3. Determine the transaction price: The transaction liability.
price is the amount of consideration to which
Revenue is measured at the fair value of the
the Group expects to be entitled in exchange
consideration received or receivable, taking into
for transferring promised goods or services to a
account contractually defined terms of payment
customer, excluding amounts collected on behalf
and excluding taxes and duty.
of third parties.
The Group does not expect to have any contracts
Step 4. Allocate the transaction price to the performance
where the period between the transfer of the
obligations in the contract: For a contract that
promised goods or services to the customer and
has more than one performance obligation, the
payment by the customer exceeds one year. As
Group will allocate the transaction price to each
a consequence, it does not adjust any of the
performance obligation in an amount that depicts
transaction prices for the time value of money.
150
Rental income i. Chit Operations:All streams of revenue from
Chit operations is on cash basis.
Rental income arising from operating leases on
investment properties is accounted for on a straight- ii. Duty credit / exemption under various
line basis over the lease terms except in the case promotional schemes of Foreign Trade Policy
where incremental lease reflects inflationary effect and in force, Tax credit, and refund of income-tax/
rental income is accounted in such case by actual rent service tax / sales-tax /VAT/GST and interest
for the period. thereon etc.
Insurance claims iii. Interest on overdue recoverable.
Insurance claims are accounted for to the extent the iv. Liquidated damages on suppliers/underwriters.
Group is reasonably certain of their ultimate collection.
Other items of income are recognized as and when the
Dividend income right to receive arises.
Income from dividend is recognised when the Group’s
d. Inventories
right to receive the payment is established, it is
probable that the economic benefits associated with Inventories are valued at the lower of cost and net
the dividend will flow to the Group, and the amount of realisable value except scrap and by products which
the dividend can be measured reliably. are valued at net realisable value.Net realisable value
is the estimated selling price in the ordinary course of
Interest income
business, less estimated costs of completion and the
Interest income from a financial asset is recognised estimated costs necessary to make the sale.
when it is probable that the economic benefits will flow to
the Group and the amount of income can be measured Costs incurred in bringing each product to its present
reliably. Interest is accrued on time proportionbasis, by location and condition are accounted for as follows:
reference to the principal outstanding applying effective i. Raw materials: Cost includes cost of purchase
interest rate.The EIR is the rate that exactly discounts and other costs incurred in bringing the inventories
the estimated future cash receipts over the expected to their present location and condition. Cost is
life of the financial instrument or a shorter period, determined on weighted average basis in case of
where appropriate, to the net carrying amount of the Paper Division.
financial asset. When calculating the effective interest
ii. Finished goods and work in progress: Cost
rate, the Group estimates the expected cash flows by
includes cost of direct materials and labour
considering all the contractual terms of the financial
and a proportion of manufacturing overheads
instrument (for example, prepayment, extension,
based on the normal operating capacity but
call and similar options) but does not consider the
excluding borrowing costs. Cost is determined
expected credit losses. Interest income is included in
on weighted average basis.Raw materials and
other income in the statement of profit or loss.
consumablesissued to convertors are considered
Interest on delayed receipts, cancellation/forfeiture as Finished Goods only at the time of receipt
income and transfer fees from customersarerecognised of notebooksfrom the convertors in the case of
on accrual basis except in cases where ultimate Paper Division. .
collection is considered doubtful and in the instances
iii. Freight inward is not considered for valuation of
listed below:
stock of liquor and is charged to the Statement of
Revenue Recognition on cash basis: Profit andLoss.
Revenue is recognized on accrual basis except iv. Obsolete inventories, slow moving and defective
for the following items where it is accounted for inventories are identified and written down to net
on cash basis since the realisability is uncertain: realisable value.
151
e. Property, Plant and Equipment (PPE) estimated useful lives which are different from the
useful life prescribed in Schedule II to the Companies
Recognition and measurement
Act, 2013. The management believes that these
Property, plant and equipment are measured at cost estimated useful lives are realistic and reflect fair
less accumulated depreciation and impairment losses, approximation of the period over which the assets are
if any. Cost includes expenditures directly attributable likely to be used.
to the acquisition of the asset. General and specific
De-recognition
borrowing costs directly attributable to the construction
of a qualifying asset are capitalized as part of the cost. An item of property, plant and equipment and any
significant part initially recognized is derecognized
Depreciation and useful lives
upon disposal or when no future economic benefits
Depreciation/amortization on property, plant & are expected from its use or disposal. Any gain or
equipment is provided on the straight-line method, loss arising on de-recognition of the asset (calculated
based on the useful life of asset specified in Schedule as the difference between the net disposal proceeds
II to the Companies Act, 2013. The Management and the carrying amount of the asset) is included in
estimates the useful lives of the assets as per the the statement of profit and loss when the asset is
indicative useful life prescribed in Schedule II to the derecognized.
Companies Act, 2013. Residual values, useful lives and
f. Intangible assets
method of depreciation are reviewed at each financial
year end and adjusted prospectively, if appropriate. Recognition and measurement
Particulars Life in years Intangible assets (software)acquiredseparatelyare

Building 60 measured at their cost of acquisition. Cost comprises
Firefighting equipment 10 purchase price, borrowing cost if capitalization criteria
are met and directly attributable cost of bringing the
Electrical equipment 10
asset to its working condition for the intended use. Any
Furniture & fixtures 10
trade discount and rebates are deducted in arriving at
Vehicles 8
the purchase price.
Furniture & fixtures - Liquor 5
Handling equipment 5 Following initial recognition, intangible assets are
Weighing Machines 5 carried at cost less accumulated amortization and
Office equipment 5 impairment losses, if any.
Computers 3 The cost of capitalized software is amortized over a
Lease hold assets 3 period of 6 years from the date of its acquisition on a
Lease hold Improvements Over the primary straight-line basis.
lease period -except
Gains or losses arising from derecognition of an
for land
intangible asset are measured as the difference between
Depreciation on fixed assets added/ disposed off/ the net disposal proceeds and the carrying amount of
discarded during the year has been provided on the asset and are recognised in the Statement of Profit
pro rata basis with reference to the date of addition/ andLoss when the asset is derecognized.
disposal/ discarding.
The residual values, useful lives and methods of
The Group, based on technical assessment made amortization of intangible assets are reviewed at
by technical expert and management estimate, each reporting date end and adjusted prospectively, if
depreciates furniture & fixture at Liquor outlets over appropriate.
152
g. Capital Work in Progress The fair value of investment property is disclosed in
the notes. Fair values are determined based on an
Capital work-in-progress is stated at cost which includes
annual evaluation performed by an accredited external
expenses incurred during construction period, interest
independent valuer.
on amount borrowed for acquisition of qualifying assets
and other expenses incurred in connection with project i. Finance cost
implementation in so far as such expenses relate to Finance cost comprises of Interest cost on lease and
the period prior to the date of use of asset. Capital other financial liabilities, bank charges and guarantee
advances given towards purchase/ acquisition of PPE commission. All finance costs are recognized in the
outstanding at each balance sheet date are disclosed Statement of Profit and Loss in the period in which they
separately as Other Non-Current Assets. are incurred.
h. Investment Property j. Cash and cash equivalents
Investment properties are properties held to earn Cash and cash equivalent in the Balance Sheet
rentals and/or for capital appreciation (including comprise cash at banks and on hand and short-term
property under construction for such purposes). deposits with an original maturity of three months or
Investment properties are measured initially at cost, less, which are subject to insignificant risk ofchanges
including transaction costs. All of the Group’s property in value.
interests held under operating leases to earn rentals For the purpose of the cash flows statement, cash and
or for capital appreciation purposes are accounted for cash equivalents includes cash, short-term deposits,
as investment properties. After initial recognition, the as defined above, other short-term and highly liquid
Group measures investment property at cost. investments with original maturities of three months
or less that are readily convertible to known amounts
Investment properties are derecognized upon disposal
of cash and which are subject to an insignificant risk
or when the investment properties are permanently
of changes in value adjusted for outstanding bank
withdrawn from use and no future economic benefits
overdrafts as they are considered an integral part of
are expected post disposal. Any gain or loss arising
the Group’s cash management. Bank Overdrafts are
on de recognition of the property (calculated as the
shown within Borrowings in current liabilities in the
difference between the net disposal proceeds and the
balance sheet.
carrying amount of the asset) is included in the profit or
loss in the period in which the property is derecognized. k. Leases
Investment properties are depreciated in accordance The Group evaluates each contract or arrangement,
to the class of asset that it belongs to and the life of whether it qualifies as lease as defined under Ind AS
the asset is as conceived for the same class of asset 116.
of the Group. Depreciation/amortization is provided Group as a lessee
on the straight-line method, based on the useful life of
The Group enters into an arrangement for lease of
asset specified in Schedule II to the Companies Act,
shops and offices. Such arrangements are generally
2013. The Management estimates the useful lives of
for a fixed period but may have extension or termination
the assets as per the indicative useful life prescribed
options. The Group assesses, whether the contract is,
in Schedule II to the Companies Act, 2013. Residual
or contains, a lease, at itsinception. A contract is, or
values, useful lives and method of depreciation are
contains, a lease if the contract conveys the right to –
reviewed at each financial year end and adjusted
a) control the use of an identified asset,
prospectively, if appropriate.
b) obtain substantially all the economic benefits
The useful life of the Building is estimated to be 60 from use of the identified asset, and
years. c) direct the use of the identified asset
153
The Group determines the lease term as the non- After the commencement date, the amount of lease
cancellable period of a lease, together with periods liabilities is increased to reflect the accretion of interest
covered by an option to extend the lease, where the and reduced for the lease payments made.
Group is reasonably certain to exercise that option.
The Group recognizes the amount of the re-
The Group at the commencement of the lease contract measurement of lease liability as an adjustment to
recognizes a Right-of-Use (RoU) asset at cost and the right-of-use assets. Where the carrying amount of
corresponding lease liability, except for leases with the right-of-use asset is reduced to zero and there is
term of less than twelve months (short term leases) and a further reduction in the measurement of the lease
low-value assets. For these short term and low value liability, the Group recognizes any remaining amount
leases, the Group recognizes the lease payments as of there-measurement in statement of profit and loss.
an operating expense on a straight-line basis over the
Lease liability payments are classified as “cash used
lease term.
in financing activities” in the Statement of Cash Flow.
The cost of the right-of-use asset comprises the
The Group as a lessor
amount of the initial measurement of the lease liability,
any lease payments made at or before the inception Leases under which the Group is a lessor are classified
date of the lease, plus any initial direct costs, less any as finance or operating leases. Lease contracts where
lease incentives received.Subsequently, the right-of- all the risks and rewards are substantially transferred
use assets are measured at cost lessany accumulated to the lessee, the lease contracts are classified as
depreciation and accumulated impairmentlosses, if finance leases. All other leases are classified as
any. The right-of-use assets are depreciated using operating leases.
thestraight-line method from the commencement date
over theshorter of lease term or useful life of right- For leases under which the Group is an intermediate
of-use asset. Theestimated useful life of right-of-use lessor, the Group accounts for the head-lease and the
assets are determined onthe same basis as those of sub-lease as two separate contracts. The sub-lease
property, plant and equipment. is further classified either as a finance lease or an
operating lease by reference to the RoU asset arising
The Group applies Ind AS 36 to determine whether from the head-lease.
anRoUasset is impaired and accounts for any identified
impairment loss as described in the impairment of non- l. Employee benefits
financial assets below. Defined contribution plan
The Group’s defined contribution plans are Employees’
For lease liabilities at the commencement of the lease,
Provident Fund (under the provisions of Employees
theGroup measures the lease liability at the present
Provident Funds and Miscellaneous Provisions Act,
value ofthe lease payments that are not paid at that
1952), ESI (under the provisions of Employees State
date. The leasepayments are discounted using the
Insurance Act, 1948) and Superannuation. The Group
interest rate implicit in thelease, if that rate can be readily
has no further obligations beyond making the Group’s
determined, if that rate is notreadily determined, the
contributions. The Group’s contribution to Provident
lease payments are discounted usingthe incremental
Fund, ESI and Superannuation are made at prescribed
borrowing rate that the Group would have topay to
rates and are charged to Statement of Profit and Loss.
borrow funds, including the consideration of factors
The Superannuation assets are managed by a Trust
such as the nature of the asset and location, collateral,
which invests with LIC.
market terms and conditions, as applicable in a similar
economic environment. Death Relief Fund
After the commencement date, the amount of lease The Group’s liability towards Death Relief Fund is
liabilities is increased to reflect the accretion of interest accounted on the basis of actuarial valuation as at the
and reduced for the lease payments made. reporting date.
154
Defined benefit plan as a current employee benefit. The Group records
an obligation for such compensated absences in the
The Group has a defined benefit plan for payment of
year in which the employee renders the services that
Gratuity as per the Gratuity Act 1972. The Gratuity Plan
increase his entitlement.
provides a lump sum payment to employees who have
completed five years or more of service at retirement, The obligation towards the same is measured at the
disability or termination of employment, being an expected cost of accumulating compensated absences
amount based on the respective employee’s last as the additional amount expected to be paid as a
drawn salary and the number of years of employment result of the unused entitlement as at the reporting
with the Group. The Group makes a contribution to the period. The Group’s liability is actuarially determined
MSIL Employee Gratuity Fund Trust managed by LIC. (using the Projected Unit Credit method) at the end of
The Group’s liability is actuarially determined (using
the Projected Unit Credit method) at the end of each Other short-term benefits
reporting period. The present value of the defined
benefit obligation is determined by discounting the All employee benefits falling due wholly within twelve
estimated future cash outflows by reference to market months of rendering the service are classified as short-
yields at the end of the reporting period on government term employee benefits. The benefits like salaries,
bonds that have terms approximating to the terms of wages, estimated bonus, ex-gratia and short-term
the related obligation. The net interest cost is calculated compensated absences are recognised in the period
by applying the discount rate to the net balance of the in which the employee renders the related service.
defined benefit obligation and the fair value of plan
Short-term employee benefits comprising employee
assets if any. This cost is included in the employee
costs including performance bonus is recognized in the
benefit expense in the statement of profit and loss.
statement of profit and loss on the basis of the amount
The liability or asset recognised in the balance sheet paid or payable for the period during which services
in respect of gratuity plan is the present value of the are rendered by the employee.
defined benefit obligation at the end of the reporting
m. Tax expense
period less the fair value of plan assets, if any.
Re-measurement gains and losses arising from Tax expense comprises of current income tax and
experience adjustments and changes in actuarial deferred tax.
assumptions are recognised in the period in which
Current income tax:
they occur, directly in other comprehensive income
and are never reclassified to profit or loss. Changes The tax currently payable is based on taxable profit
in the present value of the defined benefit obligation for the year. Taxable profit differs from ‘profit before
resulting from plan amendments or curtailments are tax’ as reported in the statement of profit and loss
recognised immediately in the statement of profit and because of items of income or expense that are
loss as past service cost. taxable or deductible in other years and items that
are never taxable or deductible. The tax rates and tax
Earned Leave
laws used to compute the amount are those that are
As per the policy of the Group, employees can carry enacted or substantively enacted at the reporting date.
forward unutilized accrued leave and utilize it in Management periodically evaluates positions taken
next service period or receive cash compensation. in the tax returns with respect to situations in which
The compensated absences fall due wholly within applicable tax regulations are subject to interpretation
twelve months after the end of the period in which the and establishes provisions where appropriate.
employees render the related service and are also
Current income tax assets and liabilities are measured
expected to be utilized wholly within twelve months
at the amount expected to be recovered from or paid
after the end of such period, the benefit is classified
155
to the taxation authorities. Management periodically transaction that is not a business combination
evaluates positions taken in the tax returns with respect and, at the time of the transaction, affects neither
to situations in which applicable tax regulations are the accounting profit nor taxable profit or loss;
subject to interpretation and establishes provisions
• In respect of deductible temporary differences
where appropriate.
associated with investments in subsidiaries,
Current tax is recognised in the Statement of Profit associates and interests in joint arrangements,
and Loss, except to the extent that it relates to items deferred tax assets are recognised only to the
recognised in other comprehensive income or directly extent that it is probable that the temporary
in equity. In this case, the tax is also recognised in differences will reverse in the foreseeable future
other comprehensive income or directly in equity, and taxable profit will be available against which
respectively. the temporary differences can be utilised.
Deferred tax The carrying amount of deferred tax assets is reviewed

at each reporting date and reduced to the extent that
Deferred tax is provided using the liability method on
it is no longer probable that sufficient taxable profit will
temporary differences between the tax bases of assets
be available to allow all or part of the deferred tax asset
and liabilities and their carrying amounts for financial
to be utilised. Unrecognized deferred tax assets are
reporting purposes at the reporting date.
reassessed at each reporting date and are recognised
Deferred tax liabilities are recognised for all taxable to the extent that it has become probable that future
temporary differences, except: taxable profits will allow the deferred tax asset to be
recovered.
• When the deferred tax liability arises from the
initial recognition of goodwill or an asset or liability Deferred tax assets and liabilities are measured at the
in a transaction that is not a business combination tax rates that are expected to apply in the year when
and, at the time of the transaction, affects neither the asset is realized or the liability is settled, based
the accounting profit nor taxable profit or loss; on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
• In respect of taxable temporary differences
associated with investments in subsidiaries and Deferred tax is recognised in the Statement of Profit
interests in joint arrangements, when the timing and Loss, except to the extent that it relates to items
of the reversal of the temporary differences can recognised in other comprehensive income or directly
be controlled and it is probable that the temporary in equity. In this case, the tax is also recognised in
differences will not reverse in the foreseeable other comprehensive income or directly in equity,
future. respectively.
Deferred tax assets are recognised for all deductible Deferred tax assets and deferred tax liabilities are
temporary differences, the carry forward of unused offset if a legally enforceable right exists to set off
tax credits and any unused tax losses. Deferred tax current tax assets against current tax liabilities and the
assets are recognised to the extent that it is probable deferred taxes relate to the same taxable entity and
that taxable profit will be available against which the same taxation authority.
the deductible temporary differences, and the carry
The Group recognizes tax credits in the nature of
forward of unused tax credits and unused tax losses
MAT credit as an asset only to the extent that there
can be utilised, except:
is convincing evidence that the Group will pay normal
• When the deferred tax asset relating to the income tax during the specified period, i.e., the period
deductible temporary difference arises from for which tax credit is allowed to be carried forward. In
the initial recognition of an asset or liability in a the year in which the Group recognizes tax credits as
156
an asset, the said asset is created by way of tax credit the obligation. When a provision is measured using the
to the Statement of profit and loss. The Group reviews cash flows estimated to settle the present obligation,
such tax credit assets at each reporting date and it carrying amount is the present value of those cash
writes down the asset to the extent the Group does flows (when the effect of the time value of money is
not have convincing evidence that it will pay normal material).
tax during the specified period. Deferred tax includes
If the effect of the time value of money is material,
MAT tax credit.
provisions are determined by discounting the expected
n. Earnings per share future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and
Basic EPS is computed by dividing the net profit / loss
the risks specific to the liability. The increase in the
for the year attributable to ordinary equity holders of
provision due to the passage of time is recognised as
the Group by the weighted average number of ordinary
an interest expense.
shares outstanding during the year.
Present obligations arising under onerous contracts
Diluted EPS is computed by dividing the net profit /
are recognised and measured as provisions. An
loss attributable to ordinary equity holders of the Group
onerous contract is considered to exist where the
by the weighted average number of ordinary shares
Group has a contract under which the unavoidable
outstanding during the year adjusted for the weighted
costs of meeting the obligations under the contract
average number of ordinary shares that would be
exceed the economic benefits expected to be received
issued on conversion of all the dilutive potential
from the contract.
ordinary shares into ordinary shares.
Decommissioning costs are measured as the best
The dilutive potential equity shares are adjusted for estimate of the expenditure to settle the obligation or
the proceeds receivable had the equity shares been to transfer the obligation to a third party. Provisions
issued at fair value (i.e. the average market value of for decommissioning obligations are required to
the outstanding equity shares). Dilutive potential equity be recognized at the inception of the arrangement.
shares are deemed converted as of the beginning The estimated costs to be incurred at the end of the
of the period, unless issued at a later date. Dilutive arrangement are discounted to its present value using
potential equity shares are determined independently the market rate of return.
for each period presented. The number of equity shares
When some or all of the economic benefits required to
and potentially dilutive equity shares are adjusted
settle a provision are expected to be recovered from a
retrospectively for all periods presented for any share
third party, a receivable is recognized as an asset if it
splits and bonus shares issues including for changes
is virtually certain that reimbursement will be received,
effected prior to the approval of the consolidated
and the amount of the receivable can be measured
financial statements by the Board of Directors.
reliably.
o. Provisions, Contingent Liabilities and Contingent
Assets Contingent Liability is disclosed in the case of
Provisions are recognized when the Group has a - a present obligation arising from a past event,
present obligation (legal or constructive), as a result when it is not probable that an outflow of resources
of past events, and it is probable that an outflow of will be required to settle the obligation.
resources, that can be reliably estimated, will be
- a present obligation arising from a past event,
required to settle such an obligation.
when a reliable estimate of the obligation cannot
The amount recognized as a provision is the best be made, and
estimate of the consideration required to settle the
- a possible obligation arising from past events
present obligation at the balance sheet date, taking
where the probability of outflow of resources is
into account the risks and uncertainties surrounding
not remote.
157
Contingent assets are disclosed in the Financial flows that are solely payments of principal and interest
Statements by way of notes to accounts when an (SPPI) on the principal amount outstanding.
inflow of economic benefits is probable.
This category is the most relevant to the Group.
Provisions, contingent liabilities and contingent assets After initial measurement, such financial assets are
are reviewed at each balance sheet date. subsequently measured at amortized cost using the
p. Financial instruments– initial recognition and effective interest rate (EIR) method. Amortized cost
subsequent measurement is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
Financial assets and financial liabilities are recognised an integral part of the EIR. The EIR amortisation is
when a Group becomes a party to the contractual included in finance income in the profit or loss.
provisions of the instruments. For recognition and
measurement of financial assets and financial liabilities, (b) Financial assets at fair value through other
refer policy as mentioned below: comprehensive income
Initial recognition of financial assets and financial A financial asset is measured at fair value through
liabilities: other comprehensive income if the financial asset
is held within a business model whose objective is
Financial assets and financial liabilities are initially
achieved by both collecting contractual cash flows and
measured at fair value. Transaction costs that are
selling financial assets, and the contractual terms of
directly attributable to the acquisition or issue of
the financial asset give rise on specified dates to cash
financial assets and financial liabilities (other than
flows that are solely payments of principal and interest
financial assets and financial liabilities at fair value
(SPPI) on the principal amount outstanding.
through profit or loss) are added to or deducted from the
fair value of the financial assets or financial liabilities, Financial assets included within the FVTOCI category
as appropriate, on initial recognition. Transaction costs are measured at each reporting date at fair value.
directly attributable to the acquisition of financial assets Fair value movements are recognized in the other
or financial liabilities at fair value through profit or loss comprehensive income (OCI). However, the Group
are recognised immediately in profit or loss. recognizes interest income, impairment losses &
Subsequent measurement of financial assets: reversals and foreign exchange gain or loss in the
Statement of Profit and Loss. On derecognition of the
For purposes of subsequent measurement, financial
asset, cumulative gain or loss previously recognised
assets are classified in four categories:
in OCI is reclassified from the equity to P&L. Interest
(a) Financial assets at amortized cost earned whilst holding FVTOCI financial asset is
reported as interest income using the EIR method.
(b) Financial assets at fair value through other
comprehensive income (FVTOCI) (c) Financial assets at fair value through profit or
(c) Financial assets at fair value through profit or loss loss
(FVTPL)
Financial assets are measured at fair value through
(d) Equity instruments measured at fair value through profit or loss unless it is measured at amortized cost
other comprehensive income (FVTOCI) or at fair value through other comprehensive income
on initial recognition. The transaction costs directly
(a) Financial assets at amortized cost:
attributable of financial assets at fair value through
A financial asset is measured at amortized cost if the profit or loss are immediately recognised profit or loss.
financial asset is held within a business model whose
The Group may elect to designate a financial asset,
objective is to hold financial assets in order to collect
which otherwise meets amortized cost or fair value
contractual cash flows, and the contractual terms of
through other comprehensive income criteria, as at fair
the financial asset give rise on specified dates to cash
158
value through profit or loss. However, such election unless there has been significant increase in credit
is allowed only if doing so reduces or eliminates a risk from initial recognition in which case these are
measurement or recognition inconsistency (referred measured at lifetime ECL. The amount of expected
to as ‘accounting mismatch’). The Group has not credit losses (or reversal) that is required to adjust the
designated any debt instrument as at FVTPL. loss allowance at the reporting date to the amount that
is required to be recognised as an impairment gain or
(d) Equity instruments: loss in Statement of Profit and Loss.
All equity investments in scope of Ind-AS 109 other Derecognition of financial assets
than Investment in subsidiaries, Joint Ventures Financial assets are derecognized when the right to
and Associates are measured at fair value. Equity receive cash flows from the assets has expired, or
instruments which are held for trading, are classified has been transferred, and the Group has transferred
as at FVTPL. For all other equity instruments, the substantially all of the risks and rewards of ownership.
Group may make an irrevocable election to present in
Concomitantly, if the asset is one that is measured at:
other comprehensive income subsequent changes in
the fair value. The Group makes such election on an (a) amortized cost, the gain or loss is recognised in the
instrument-by-instrument basis. The classification is Statement of Profit and Loss;
made on initial recognition and is irrevocable. (b) fair value through other comprehensive income, the
cumulative fair value adjustments previously taken to
Equity Investment in subsidiaries, Joint Ventures and
reserves are reclassified to the Statement of Profit and
Associates are measured at cost as per Ind AS 27 -
Loss unless the asset represents an equity investment
Separate Financial Statements.
in which case the cumulative fair value adjustments
If the Group decides to classify an equity instrument previously taken to reserves is reclassified within
as at FVTOCI, then all fair value changes on the equity.
instrument, excluding dividends, are recognized in Reclassification
the OCI. There is no recycling of the amounts from
When and only when the business model is changed,
OCI to Statement of Profit and Loss, even on sale
the Group shall reclassify all affected financial
of investment. However, the Group may transfer the
assets prospectively from the reclassification date as
cumulative gain or loss within equity.
subsequently measured at amortized cost, fair value
Impairment of financial assets through other comprehensive income, fair value
through profit or loss without restating the previously
The Group assesses at each reporting date whether recognised gains, losses or interest and in terms of
a financial asset (or a group of financial assets) such the reclassification principles laid down in the Ind AS
as investments, trade receivables, advances and relating to Financial Instruments.
security deposits held at amortized cost and financial
assets that are measured at fair value through other Financial liabilities and equity instruments
comprehensive income are tested for impairment Classification as debt or equity
based on evidence or information that is available
Debt and equity instruments issued by a Group are
without undue cost or effort. Expected credit losses
classified as either financial liabilities or as equity in
(ECL) are assessed and loss allowances recognised if accordance with the substance of the contractual
the credit quality of the financial asset has deteriorated arrangements and the definitions of a financial liability
significantly since initial recognition. and an equity instrument.
Loss allowance for trade receivables with no significant Financial liabilities
financing component is measured at an amount equal
to lifetime ECL. For all other financial assets, ECL are All financial liabilities are subsequently measured at
measured at an amount equal to the 12 months ECL, amortized cost using the effective interest method.
159
Financial liabilities at fair value through profit or • the amount of loss allowance determined in
loss accordance with impairment requirements of Ind
AS 109; and
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial • the amount initially recognised less, when
liabilities designated upon initial recognition as at fair appropriate, the cumulative amount of income
value through profit or loss. Financial liabilities are recognised in accordance with the principles of
classified as held for trading if they are incurred for Ind AS 18.
the purpose of repurchasing in the near term. This
Derecognition of financial liabilities
category also includes derivative financial instruments
entered into by the Group that are not designated as The Groupderecognizes financial liabilities when, and
hedging instruments in hedge relationships as defined only when, the Group’s obligations are discharged,
by Ind-AS 109. cancelled or have expired. An exchange with a
lender of debt instruments with substantially different
Gains or losses on liabilities held for trading are
terms is accounted for as an extinguishment of the
recognised in the profit or loss.
original financial liability and the recognition of a new
Financial liabilities designated upon initial recognition financial liability. Similarly, a substantial modification
at fair value through profit or loss are designated at of the terms of an existing financial liability (whether
the initial date of recognition, and only if the criteria in or not attributable to the financial difficulty of the
Ind-AS 109 are satisfied. For liabilities designated as debtor) is accounted for as an extinguishment of the
FVTPL, fair value gains/ losses attributable to changes original financial liability and the recognition of a new
in own credit risks are recognized in OCI. These gains/ financial liability. The difference between the carrying
losses are not subsequently transferred to Statement amount of the financial liability derecognized and the
of Profit or Loss. However, the Group may transfer consideration paid and payable is recognised in profit
the cumulative gain or loss within equity. All other or loss.
changes in fair value of such liability are recognised
Offsetting Financial Instruments
in the statement of profit or loss. The Group has not
designated any financial liability as at fair value through Financial assets and liabilities are offset, and the net
profit and loss. amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognised
Equity instruments
amounts and there is an intention to settle on a net
An equity instrument is any contract that evidences basis or realize the asset and settle the liability
a residual interest in the assets of an entity after simultaneously. The legally enforceable right must
deducting all of its liabilities. Equity instruments issued not be contingent on future events and must be
by a Group are recognised at the proceeds received, enforceable in the normal course of business and in
net of direct issue costs. the event of default, insolvency or bankruptcy of the
Group or the counterparty.
Financial guarantee contracts
q. Impairment of financial assets
A financial guarantee contract is a contract that requires
the issuer to make specified payments to reimburse the The Group recognizes loss allowances using the
holder for a loss it incurs because a specified debtor expected credit loss (ECL) model for financial assets
fails to make payments when due in accordance with which are not fair valued through profit or loss. Loss
the terms of a debt instrument. allowance for trade receivables with no significant
financing component is measured at an amount equal
Financial guarantee contracts issued by a Group
to lifetime ECL. For all other financial assets, expected
are initially measured at their fair values and, if not
credit losses are measured at an amount equal to the
designated as at FVTPL, are subsequently measured
twelve-month ECL, unless there has been a significant
at the higher of:
increase in credit risk from initial recognition, in which
160
case those are measured at lifetime ECL. The amount comprehensive income. In this case, the impairment is
of expected credit losses (or reversal) that is required also recognised in other comprehensive income up to
to adjust the loss allowance at the reporting date to the the amount of any previous revaluation.
amount that is required to be recognized is recognized
For assets excluding goodwill, an assessment is made
as an impairment gain or loss in the statement of profit
at each reporting date as to whether there is any
and loss.
indication that previously recognised impairment losses
r. Impairment of non-financial assets may no longer exist or may have decreased. If such an
indication exists, the Group estimates the asset’s or
The Group assesses at each reporting date whether
CGU’s recoverable amount. A previously recognised
there is an indication that an asset may be impaired.
impairment loss is reversed only if there has been
If any indication exists, or when annual impairment
a change in the assumptions used to determine the
testing for an asset is required, the Group estimates the
asset’s recoverable amount since the last impairment
asset’s recoverable amount. An asset’s recoverable
loss was recognised. The reversal is limited so that
amount is the higher of an asset or cash-generating
the carrying amount of the asset does not exceed its
unit’s (CGU) fair value less costs to sell and its value in
recoverable amount, nor exceed the carrying amount
use. It is determined for an individual asset, unless the
that would have been determined, net of depreciation,
asset does not generate cash inflows that are largely
had no impairment loss been recognised for the asset
independent of those from other assets of the Group.
in prior years. Such a reversal is recognised in the
When the carrying amount of an asset or CGU exceeds
Statement of Profit and Loss unless the asset is carried
its recoverable amount, the asset is considered
at a revalued amount, in which case the reversal is
impaired and is written down to its recoverable amount.
treated as a revaluation increase.
In assessing value in use, the estimated future cash
s. Cash flow statement
flows are discounted to their present value using
a pre-tax discount rate that reflects current market Cash flows are reported using the indirect method,
assessments of the time value of money and the risks whereby profit for the period is adjusted for the effects
specific to the asset. In determining fair value less of transactions of a non-cash nature, any deferrals or
costs to sell, recent market transactions are taken accruals of past operating cash receipts or payments
into account, if available. If no such transactions can and item of income or expenses associated with
be identified, an appropriate valuation model is used. investing or financing cash flows. The cash from
These calculations are corroborated by valuation operating, investing and financing activities of the
multiples, quoted share prices for publicly traded Group are segregated.
subsidiaries or other available fair value indicators.
t. Dividend
The Group bases its impairment calculation on detailed
budgets and forecasts which are prepared separately The Group recognizes a liability (including tax thereon)
for each of the Group’s CGU to which the individual to make cash or non-cash distributions to equity
assets are allocated. These budgets and forecast shareholders of the Group when the distribution is
calculations generally cover a period of five years. For authorised and the distribution is no longer at the
longer periods, a long-term growth rate is calculated discretion of the Group.
and applied to project future cash flows after the fifth Non-cash distributions are measured at the fair value
year. of the assets to be distributed with fair value re-
Impairment losses, including impairment on inventories, measurement recognised directly in equity.
are recognised in the Statement of Profit and Loss in Upon distribution of non-cash assets, any difference
those expense categories consistent with the function between the carrying amount of the liability and the
of the impaired asset, except for a property previously carrying amount of the assets distributed is recognised
revalued where the revaluation was taken to other in the Statement of Profit and Loss.
161
Dividends declared by the Group after the reporting Non-current assets held for sale are measured at the
period are not recognized as liability at the end of the lower of their carrying amount and the fair value less
reporting period. Dividends declared after the reporting costs to sell. Assets and liabilities classified as held for
period but before the issue of financial statements are sale are presented separately in the balance sheet.
not recognized as liability since no obligation exists on
An impairment loss is recognised for any initial or
the balance sheet date. Such dividends are disclosed
subsequent write-down of the assets to fair value less
in the notes to the financial statements.
cost to sell. A gain is recognised for any subsequent
u. Events after Reporting Date increases in the fair value less cost to sell of an asset
Assets and liabilities are adjusted for events occurring but not in excess of the cumulative impairment loss
after the reporting period that provides additional previously recognised, A gain or loss previously not
evidence to assist the estimation of amounts relating recognised by the date of sale of the non-current
to conditions existing at the end of the reporting period. assets is recognised on the date of de-recognition.
v. Non-Current Assets Held For Sale And Property, plant and equipment and intangible assets
Discontinued Operations once classified as held for sale/ distribution to owners
are not depreciated or amortized.
The Group classifies non-current assets (or disposal
group) as held for sale if their carrying amounts will A discontinued operation qualifies as discontinued
be recovered principally through a sale rather than operation if it is a component of an entity that either
through continuing use. Actions required to complete has been disposed of, or is classified as held for sale,
the sale should indicate that it is unlikely that significant and:
changes to the sale will be made or that the decision to • Represents a separate major line of business or
sell will be withdrawn. Management must be committed geographical area of operations,
to the sale expected within one year from the date of • Is part of a single coordinated plan to dispose of
classification. a separate major line of business or geographical
area of operations; or
The criteria for held for sale classification is regarded
• Is a subsidiary acquired exclusively with a view to
met only when the assets is available for immediate
resale
sale in its present condition, subject only to terms that
are usual and customary for sales of such assets, its Discontinued operations are excluded from the results
sale is highly probable; and it will genuinely be sold, of continuing operations and are presented as a single
not abandoned. The Group treats sale of the asset to amount as profit or loss after tax from discontinued
be highly probable when: operations in the statement of profit and loss.
• The appropriate level of management is w. Segment Reporting
committed to a plan to sell the asset,
Operating segments are reported in a manner
• An active programme to locate a buyer and consistent with the internal reporting provided to the
complete the plan has been initiated (if applicable), chief operating decision maker.
• The asset is being actively marketed for sale at
x. Government Grants
a price that is reasonable in relation to its current
fair value, Government grants are recognised where there is
reasonable assurance that the grant will be received,
• The sale is expected to qualify for recognition as
and all attached conditions will be complied with.
a completed sale within one year from the date of
classification , and When the grant relates to an expense item, it is
• Actions required to complete the plan indicate that recognised as income on a systematic basis over the
it is unlikely that significant changes to the plan periods that the related costs, for which it is intended to
will be made or that the plan will be withdrawn. compensate, are expensed.
162
When the grant relates to an asset, it is presented reviews the estimated useful lives of property,
by deducting the grant from the carrying amount of plant and equipment and intangible assets at the
the asset. When the Group receives grants of non- end of each reporting period.
monetary assets, it is treated at a nominal value.
(b) Impairment of non-financial assets
When loans or similar assistance are provided by Impairment exists when the carrying value of
governments or related institutions, with an interest an asset or cash generating unit exceeds its
rate below the current applicable market rate, the effect recoverable amount, which is the higher of its fair
of this favourable interest is regarded as a government value less costs of disposal and its value in use.
grant. The loan or assistance is initially recognised and The fair value less costs of disposal calculation
measured at fair value and the government grant is is based on available data from binding sales
measured as the difference between the initial carrying transactions, conducted at arm’s length, for
value of the loan and the proceeds received. The loan similar assets or observable market prices less
is subsequently measured as per the accounting policy incremental costs for disposing of the asset. The
applicable to financial liabilities. value in use calculation is based on a DCF model.
1.3 Critical accounting estimates and assumptions The cash flows are derived from the budget for the
next five years and do not include restructuring
The preparation of the Group’s consolidated activities that the Group is not yet committed to
financial statements requires management to make or significant future investments that will enhance
judgements, estimates and assumptions that affect the asset’s performance of the CGU being tested.
the reported amounts of revenues, expenses, assets The recoverable amount is sensitive to the
and liabilities, and the accompanying disclosures, discount rate used for the DCF model as well as
and the disclosure of contingent liabilities. Uncertainty the expected future cash-inflows and the growth
about these assumptions and estimates could result rate used for extrapolation purposes.
in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future (c) Provisions and contingencies
periods. The assessments undertaken in recognising
Estimates and assumption provisions and contingencies have been made in
accordance with the applicable Ind AS. A provision
The key assumptions concerning the future and is recognized if, as a result of a past event,
other key sources of estimation uncertainty at the the Group has a present legal or constructive
reporting date, that have a significant risk of causing obligation that can be estimated reliably, and it
a material adjustment to the carrying amounts of is probable that an outflow of economic benefits
assets and liabilities within the next financial year, are will be required to settle the obligation. Where
described below. The Group based its assumptions the effect of time value of money is material,
and estimates on parameters available when the provisions are determined by discounting the
consolidated financial statements were prepared. expected future cash flows.
Existing circumstances and assumptions about future
developments, however, may change due to market The Group has significant capital commitments
changes or circumstances arising that are beyond the in relation to various capital projects which are
control of the Group. Such changes are reflected in the not recognized on the balance sheet. In the
assumptions when they occur. normal course of business, contingent liabilities
may arise from litigation and other claims against
(a) Useful life of Property, plant and equipment the Group. Guarantees are also provided in the
and Intangible Assets normal course of business. There are certain
As described in Notee and fof the material obligations which management has concluded,
accounting policies information, the Group based on all available facts and circumstances,
163
are not probable of payment or are very difficult (e) Expected credit losses on financial assets
to quantify reliably, and such obligations are (chit fund business)
treated as contingent liabilities and disclosed in
The impairment provisions of financial assets
the notes but are not reflected as liabilities in the
are based on assumptions about risk of probable
consolidated financial statements.
default and expected timing of collection.
Although there can be no assurance regarding the The Group uses judgment in making these
final outcome of the legal proceedings in which assumptions and selecting the inputs to the
the Group involved, it is not expected that such expected credit loss calculation based on
contingencies will have a material effect on its the Group’s history of collections, customer’s
financial position or profitability. creditworthiness, existing market conditions as
well as forward looking estimates at the end of
(d) Defined benefit plans
The determination of Group’s liability towards
(f) Leases
defined benefit obligation to employees is made
through independent actuarial valuation including Ind AS 116 defines a lease term as the non-
determination of amounts to be recognised in cancellable period for which the lessee has the
the Statement of Profit and Loss and in other right to use an underlying asset including optional
comprehensive income. periods, when an entity is reasonably certain to
exercise an option to extend (or not to terminate)
Such valuation depend upon assumptions
a lease. The Group considers all relevant facts
determined after taking into account inflation,
and circumstances that create an economic
seniority, promotion and other relevant factors
incentive for the lessee to exercise the option
such as supply and demand factors in the
when determining the lease term. The option to
employment market. Information about such
extend the lease term is included in the lease
valuation is provided in notes to the consolidated
term, if it is reasonably certain that the lessee
financial statements.
would exercise the option. The Group reassesses
Further details about defined benefit obligations the option when significant events or changes in
are provided in Note 34. circumstances occur that are within the control of
the lessee.
164
Notes forming part of the Consolidated Financial Statements
(All amounts in Rs Lakhs, unless otherwise mentioned)
2 Property, Plant and Equipment
Freehold Leasehold Building - Handling Electrical Com- Furniture Office Leased
Particulars Vehicles Total
land land Freehold Equipment Equipment puters and fixtures Equipment Assets
As at April 01, 2022 167.69 342.38 440.65 0.32 2,062.00 419.46 3,542.55 351.50 1,310.87 7.05 8,644.47
Additions - - - - 726.91 21.71 932.18 82.76 306.58 - 2,070.14
Deductions - - - - (3.36) (0.58) (19.09) (0.80) (3.51) - (27.34)
Adjustment due to error in - (142.24) - - - - - - - - (142.24)
previous year**
As at March 31, 2023 167.69 200.14 440.65 0.32 2,785.55 440.59 4,455.64 433.46 1,613.94 7.05 10,545.03
Additions - - 71.98 1.32 304.97 47.75 94.90 - 268.36 - 789.28
Deductions - - - - (6.64) - (37.18) - (3.06) - (46.88)
Adjustment due to asset - - - - - - (0.45) - - - (0.45)
reclassified as Expense*
Adjustment due to error in - - 11.38 - (3.39) - (20.23) - 15.45 - 3.21
previous year**
As at March 31, 2024 167.69 200.14 524.01 1.64 3,080.49 488.34 4,492.68 433.46 1,894.69 7.05 11,290.19
165
Accumulated depreciation - -
As at April 01, 2022 - - 102.95 0.27 719.65 256.45 1,923.98 164.84 717.57 3.09 3,888.80
Depreciation for the year - - 9.21 - 231.77 65.30 636.66 43.63 190.55 2.23 1,179.35
Deductions - - - - (2.64) (0.54) (12.59) - (1.28) - (17.05)
As at March 31, 2023*** - - 112.16 0.27 948.78 321.21 2,548.05 208.47 906.84 5.32 5,051.10
Depreciation for the year - - 10.37 0.21 275.10 65.71 550.18 46.96 211.26 - 1,159.79
Deductions - - - - (1.87) - (37.15) - (1.23) - (40.25)
Adjustment due to error in - - 0.10 - (0.28) - (0.88) - 1.70 - 0.64
previous year**
As at March 31, 2024 - - 122.63 0.48 1,221.73 386.92 3,060.20 255.43 1,118.57 5.32 6,171.28
Net Carrying Amount
As at March 31, 2024 167.69 200.14 401.38 1.16 1,858.76 101.42 1,432.48 178.03 776.12 1.73 5,118.91
As at March 31, 2023 167.69 200.14 328.49 0.05 1,836.77 119.38 1,907.59 224.99 707.10 1.73 5,493.93
Wholly Owned Subsidiary- Karnataka State Marketing Communication & Advertising Ltd
*During the F.Y. 2022-23, C&AG observed that revenue expenditure to the extent of Rs. 0.45 lakhs was wrongly classified as Capital Expenditure and the same has been rectified in the current year.
**During the F.Y. 2022-23, C&AG observed that certain assets were wrongly classified and the same has been rectified in the current year by adjusting Gross Block and Accumulated Depreciation.
*** Errors in previous years’ financials with regard to classification of balances of the Accumulated depreciation to the extent of Rs. 0.43 lakhs in Furniture and Fixtures has been shifted to Electrical Equipment to reflect the
correct amounts as per the Fixed Assets Register.
Notes:
1. Properties pledged as securities as at March 31, 2024 is Nil; (March 31, 2023: Nil).
2. Refer Note 40(a) for contractual commitments with respect to Property, Plant and Equipments.
CIN:U85110KA1966SGC001612
3 Capital work-in-progress (CWIP)
Capital work
Particulars Total
in progress
As at April 01, 2022 397.04 397.04
Additions 195.79 195.79
Deductions - -
As at March 31, 2023 592.83 592.83
Additions 13.58 13.58
Deductions (72.45) (72.45)
As at March 31, 2024 533.96 533.96
a Capital work-in-progress ageing schedule:

Amount in Capital work-in-progress
for a period of
Capital work-in-progress Total
Less than More than 3
1-2 years 2-3 years
1 year years
Total 13.58 195.79 94.00 230.59 533.96
Amount in Capital work-in-progress
for a period of
Capital work-in-progress Total
Less than More than 3
1-2 years 2-3 years
1 year years
Total 195.79 94.00 141.88 161.16 592.83
b Details of projects in progress where the completion is overdue or cost has exceeded the
estimated timelines as compared to its original plan:
Budgeted Actual cost as on Reasons for
Project in progress
of additional work.

Budgeted Actual cost as at
Project in progress Reasons for delay
Project Cost March 31, 2023
of additional work.
c. There are no borrowing cost capitalised during the year ended March 31, 2024 and March 31, 2023.
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4 Investment properties
Freehold Leasehold Building -
Particulars Building Total
land land Leasehold
As at April 01, 2022 53.06 100.95 1,604.08 2,686.59 4,444.68
Additions - - - - -
As at March 31, 2023 53.06 100.95 1,604.08 2,686.59 4,444.68
Additions - - - - -
As at March 31, 2024 53.06 100.95 1,604.08 2,686.59 4,444.68
Depreciation and impairment
As at April 01, 2022 - - 119.81 359.23 479.04
As at March 31, 2023 - - 148.21 449.07 597.28
As at March 31, 2024 - - 176.64 538.91 715.55
Information regarding income and expenditure of Investment property

Particulars
March 31, 2024 March 31, 2023
Rent from investment properties (Refer note 20) 595.66 851.04
Direct operating expenses (including repairs and maintenance) (186.49) (107.07)
pertaining to investment property
Profit arising from investment properties before depreciation and 409.17 743.97
indirect expenses
Depreciation for the year (118.27) (118.24)
Profit arising from investment properties before indirect expenses 290.90 625.73
Notes:
1. Titles deeds of investment properties are in the name of the Company.
2. The Company is in the process of getting its investment property valued.
3. The Company has no restrictions on the realisability of its investment properties and no contractual obligations
to purchase or develop investment properties.
4. Investment Properties pledged as securities as at March 31, 2024 is Nil; (March 31, 2023: Nil)
167
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5 Other intangible assets
Particulars Computer software

As at April 01, 2022 105.29
Additions 5.30
Deductions -
As at March 31, 2023 110.59
Additions 5.50
Adjustment due to error in previous year* (3.20)
As at March 31, 2024 112.89
Accumulated amortization
As at April 01, 2022 78.44
Amortisation for the year 11.46
Deductions -
As at March 31, 2023 89.90
Amortisation for the year 10.29
Adjustment due to error in previous year* (0.65)
As at March 31, 2024 99.54
As at March 31, 2024 13.35

As at March 31, 2023 20.69
Note:
1. Intangible Properties pledged as securities as at March 31, 2024 is Nil; (March 31, 2023: Nil).
Wholly Owned subsidiary- Karnataka State Marketing Communication & Advertising Limited
*During the F.Y. 2022-23, C&AG observed that certain assets were wrongly classified and the same has
been rectified in the current year by adjusting Gross Block and Accumulated Amortisation.
168
CIN:U85110KA1966SGC001612
5A. Right of Use Assets

The Company has taken offices & buildings on lease period of 3 to 5 years with option of renewal.
Disclosures as per Ind AS 116 - Leases are as follows:
Particulars Right of Use
As at April 01, 2022 3,139.34
Additions 354.88
Disposals -
Adjustment due to error in previous year 72.83
As at March 31, 2023 3,567.05
Additions 1,161.82
Disposals -
As at March 31, 2024 4,728.87
Accumulated depreciation
As at April 01, 2022 2,111.08
As at March 31, 2023 2,706.78
As at March 31, 2024 3,436.05
Net carrying value as at March 31, 2024 1,292.82

Net carrying value as at March 31, 2023 860.27
The following are the expense recognised in the Statement of Profit and Loss
Year ended as at Year ended as at
Particulars
March 31, 2024 March 31, 2023
Depreciation expense of right-of-use assets 729.27 595.70
Interest expense on lease liabilities 131.78 103.84
Expense relating to short-term leases 995.78 1,117.99
Total amount recognised in the statement of Profit and Loss 1,856.83 1,817.53
169
CIN:U85110KA1966SGC001612
6 Investments
As at As at
Particulars
March 31, 2024 March 31, 2023
Non-current Investments
Investments in Equity Shares (fully paid up)
A. Others-Measured at Fair Value through Other Comprehensive
Income (Quoted)
J K Tyre Industries Limited 1,421.70 508.89
329,060 (March 31, 2023: 329,060) fully paid equity shares of
INR 2 each
Bengal & Assam Co Limited 327.43 140.04
3,831 (March 31, 2023: 3,831) fully paid equity shares of INR 10
each
Total (A) 1,749.13 648.93
B. Others-Measured at Fair Value through Other Comprehensive
Income (Unquoted)
K T Apartment Owners’ Association* 0.04 0.04
K T Mansions Appartments Owners’ Association* 0.03 0.03

Hassan Mangalore Rail Development Company Limited 1,819.06 1,729.78

7,000,000 (March 31, 2023: 7,000,000) fully paid equity shares
of INR 10 each
The Karnataka State Co-operative Apex Bank Limited - One -C- 26.41 26.15
Class Ordinary Share:
1 (March 31, 2023: 1) fully paid equity shares of INR 1,000,000
each
Total (B) 1,845.54 1,756.00
Total (A+B) 3,594.67 2,404.93
Aggregate amount of quoted investments and market value thereof 1,749.13 648.93
Aggregate amount of unquoted investments 1,845.54 1,756.00
Aggregate amount of impairment in value of investments - -
Total Investments 3,594.67 2,404.93
* The management has assessed that carrying value of the investments approximate to their fair value.
170
CIN:U85110KA1966SGC001612
7 Other Financial Assets

Particulars Non- Non-
Current Current
Current Current
Unsecured, considered good unless otherwise
stated
A Chit Division
Loans and advances - Secured
-To Related Parties (Refer Note 38) - 1.55 - 5.75
-To Others 15,191.36 15,438.75 16,840.23 8,806.33
Advances recoverable in kind or for value to be - 963.94 - 755.03
received
B Other Divisions
Security Deposit 1,018.32 15.40 1,014.28 148.43
Rent Receivable - 448.95 - 433.68

Less: Allowance for Rent Receivable - - - -
Less: Provision for Doubtful Rent Receivable - (839.02) - (773.71)
-
Other receivable -
Considered good 0.01 - 0.24 -
Advances recoverable in kind or for value to be - 655.37 - 1,777.96

received
Total 16,209.69 17,523.96 17,854.75 11,927.18

Other current financial assets ae given as security for borrowings as at March 31, 2024 is Nil; (March 31,
2023: Nil).
171
CIN:U85110KA1966SGC001612
8 Other assets
Current Current
Current Current
Prepaid Expenses - 1,233.42 - 1,213.26
Advance License Fee - 1,020.08 - 969.18
Balance with Government authorities (Refer note (ii) 10.30 268.75 15.52 1,237.68
below)
Other Receivables - 2.95 - 6.03
Advance to Employees - 14.32 - 2.08
Gratuity Fund account (Refer note 34) 54.38 - 67.99 -
Unbilled Revenue - 2,249.05 - 3,843.24
Capital Advances 136.17 - 164.76 -
Advances to Suppliers - 506.93 - 2,329.54
Considered doubtful - 1,204.95 - 1,029.79
Less: Provision for doubtful advances - (1,204.95) - (1,029.79)
Total 200.85 5,295.50 248.27 9,601.01
Notes:
(i) No advances were given to Directors or to firm / Private company where director is interested (March
31,2023: Nil)
(ii) Balance with Government Authorities mainly consist of input credit availed.
(iii) Other current financial assets are given as security as at March 31, 2024 is Nil; (March 31, 2023: Nil).
a The Company filed a case [O.S.No.8758 of 1996] against erstwhile employees Mr.S.M Pasha and Mr.
ANM Rao for recovery of misappropriated amount in the financial year 1995-96 for Rs. 28.11 lakhs before
City Civil Court, Bangalore. The recovery case was disposed on 09-July-2013. The Court decreed the
suit with cost against Mr.S.M.Pasha and dismissed the suit against Mr. ANM Rao. The Company sought
opinion from an advocate. The advocate opined that there are some grounds in the case to challenge
the judgement. Accordingly an appeal no. 236/2014 has filed and the same is pending before Hon’ble
High Court of Karnataka for disposal. During the year 1995-96, the disputed amount have been shown as
receivables and payables as misappropriation in the accounts of the Company and in the year 1996-97
an amount of Rs. 25.00 lakhs has been paid to the excise department and receivables has been charged
to Statement of Profit and Loss as bad debts. In the year 2008-09, misappropriated amount of Rs. 27.12
lakhs has been shown as receivables and payables as misappropriation in the accounts of the Company.
Due to contingency, the receivables and payables has been adjusted and the contingent asset of Rs. 28.11
lakhs will be recognized in Statement of Profit and Loss on realisation basis.
b GST Receivable of Rs. 122.61 lakhs (March 31, 2023 : Rs. 408.04 Lakhs) is shown under ‘Balance with
Government Authorities’ for which reconciliation is pending.
c Balance with Government Authorities includes VAT refund of Rs.10.30 lakhs with respect to VAT paid to
de-registered dealer/Vendor and the same is applied as refund from the VAT department on 05-Mar-2015.
No reply has been received from the VAT authorities as at the Balance Sheet date. The Company proposes
to follow-up on the said matter in the next F.Y. 2024-25.
172
CIN:U85110KA1966SGC001612
8A Non Current tax asset (net)

Advances tax and Tax Deducted at source 4,406.03 4,139.85
Total 4,406.03 4,139.85
8B Current tax liability (net)

Current tax liability (net of advance tax) 7.76 -
Total 7.76 -
9 Inventories (At lower of cost or net realisable value)

Particulars
31, 2024 31, 2023
Raw Materials
Paper and Straw board 54.39 83.64
Raw Material with Convertors 9.31 95.85
Stock in trade 16,699.16 17,045.24
Less: Provision for Expired/Damaged Stock (84.17) (57.34)
Less: Provision for Non Moving Stock (1,933.06) (1,994.50)
Total Inventory 15,925.70 15,844.24
Total 15,925.70 15,844.24
Holding Company- Mysore Sales International Limited

(i) Inventory write downs/(reversal) are accounted, considering the nature of inventory, ageing and net
realisable value for Rs. (34.61) Lakhs (March 31, 2023 Rs. 16.77 Lakhs).
The changes in write downs are recognised as an expense during the year and included in ‘changes in the
value of inventories’ in the statement of profit and loss.
(ii) Inventories are hypothecated as security as at March 31, 2024 is Nil; (March 31, 2023: Nil).
As per letter no ICD/04/lable/2019 dated November 18, 2020, Excise department has directed company to stop
selling sheet form labels and migrate to roll form. Accordingly, the company has migrated to roll form. As on
the cut off date November 15, 2020, the company has inventory to the extent of 17,51,600 labels in hand. The
company has requested for destruction on December 23, 2020, no approval was received. The company has
recovered from the supplier to the extent of Rs. 3.33 lakhs towards sheet form labels.
173
CIN:U85110KA1966SGC001612
10 Trade Receivables ~ Current

Particulars
31, 2024 31, 2023
Secured 6.27 2.00
Unsecured Considered good 25,224.51 19,310.72
Credit impaired 4,703.43 4,542.00
29,934.21 23,854.72
Less: Allowance for doubtful debts (4,703.43) (4,542.00)
Total 25,230.78 19,312.72
1. No trade receivables are due from directors or other officers of the Company either severally or jointly with
any person nor any trade receivables are due from firms or private companies respectively in which any
director is interested
2. Trade receivables are non-interest bearing and are generally on terms of 0 to 30 days.
3. Trade receivables are given as security as at March 31, 2024 is Nil; (March 31, 2023: Nil).
4. Movement in allowance for doubtful debts
Add: Allowance for the year (Net) 161.43 203.52
4,703.43 4,542.00
5. Trade receivables ageing Schedule:

Particulars Less than 6 Months - More than 3 Total
1-2 years 2-3 years
6 Months 1 year years
Undisputed Trade receivables - 14,054.53 5,055.13 5,251.86 869.26 - 25,230.78
Considered Good
Undisputed Trade receivables - - - 62.67 196.98 4,443.78 4,703.43
credit impaired
Total 14,054.53 5,055.13 5,314.53 1,066.24 4,443.78 29,934.21
Particulars Less than 6 Months - 1 More than 3 Total
1-2 years 2-3 years
6 Months year years
“Undisputed Trade receivables - 15,376.75 2,016.90 1,825.37 93.70 - 19,312.72
Considered Good”
“Undisputed Trade receivables - - - 112.31 186.43 4,243.26 4,542.00
credit impaired”
Total 15,376.75 2,016.90 1,937.68 280.13 4,243.26 23,854.72
174
CIN:U85110KA1966SGC001612
Wholly Owned subsidiary- Karnataka State Marketing Communication & Advertising Ltd
1 Trade Receivables include Rs. 9.29 lakhs (March 31, 2023: Rs. 4.19 lakhs) from Karnataka State Industrial
Infrastructure Development Corporation Limited- Promoter Company.
2 Trade Receivables includes Rs. 24.48 lakhs (March 31, 2023: Rs. 24.48 lakhs) due from M/s. Cyber
Expo and Rs. 32.22 lakhs (March 31, 2023: Rs. 32.22 lakhs) due from Bangalore I.T Com against whom
a recovery suit was filed and the same is disposed as dismissed on 29-Nov-2014. The Company has
sought opinion from three advocates regarding filing an appeal before Hon’ble High Court of Karnataka
against the Judgment and decree passed [OS No. 134/2007]. The advocates have opined that there is no
good case to file an appeal. The matter was discussed in the 240th Board Meeting held on 26-Jun-2015
and the Board advised the Managing Director to refer the matter to High Power Committee constituted
under the Chairmanship of ACS to Govt. Accordingly, directions have been sought from the Commerce &
Industries Department to refer the matter to High Power Committee and directions from department was
awaited.
On 22.05.2019, a meeting was held under the Chairmanship of Principal Secretary, Commerce and
Industries Department to discuss on the matter in the presence of Managing Director of the Company and
General Manager- Department Information Technology and Bio Technology(ITBT). After brief discussion,
the Deputy Secretary, Commerce and Industries Department informed the Chairman that the High Power
Committee is not in existence and therefore, the matter could not be referred to the said committee. The
Managing director, MC&A informed the Chairman that he discussed over phone with the Director, ITBT and
he mentioned that the Director, ITBT would pay the outstanding amount if relevant documents are provided
as it is already discussed by the Committee on Public Sector Undertakings. Accordingly, the Chairman
instructed the Managing Director to take further action. On 13.08.2019, a letter has been sent to the
Director, ITBT to take further action and reply is awaited.
The Company received a letter dated 17.10.2023 from the Principal Secretary, Commerce and Industries
Department enclosing the letter received from the Managing Director, Karnataka Innovation and Technology
Society, (KITS) which falls under the Department of ITBT. Through the said letter, it is informed that the
bills of Rs. 56.70 lakshs pertaining to Bangalore IT.Com 2002 and 2003 are not available in the Office
of KITS. However, the Company had already sent the copies of the bills of Rs. 56.70 lakhs pertaining to
Bangalore IT.Com 2002 and 2003 vide letter No: 13.08.2019. Accordingly, vide letter dated 13.12.2023 sent
to the Commerce and Industries Department, the Company informed that the said bills have already been
submitted and thereby has requested to issue direction to the Managing Director, Karnataka Innovation
and Technology Society, (KITS) to verify the bills and make the payment. As the Company has not received
any reply either from the Commerce and Industries Department or from the Managing Director, Karnataka
Innovation and Technology Society, (KITS), one more letter dated 26.04.2024 was sent to the Commerce
and Industries Department requesting to issue direction to the Managing Director, Karnataka Innovation
and Technology Society in this regard.
3 Trade Receivables include Rs. 810.04 lakhs (March 31, 2023: Rs. 631.17 lakhs) which are received directly
to the Company’s bank account for which no information is available as on Balance Sheet date. Accordingly,
the Company is not in a position to analyse the Trade Receivables ageing schedule appropriately.
175
CIN:U85110KA1966SGC001612
11 Cash and cash equivalents

Particulars
31, 2024 31, 2023
Balances with banks
In current accounts 13,526.29 8,617.13
Deposit with originally maturity less than three months - 537.00
Cash & Stamp on hand (*) 2,078.42 1,012.85
Total 15,608.95 10,174.78
(*) includes Credit Card Collections

1. There are no repatriation restrictions with regard to cash and cash equivalents as at as at March 31, 2024 is
Nil; (March 31, 2023: Nil).
12 Bank balances other than cash and cash equivalents

Current Current
Current Current
Fixed Deposit with Banks (Original maturity within 3 - 42,583.45 - 30,163.15
to 12 months)#
Fixed Deposit with Banks (Original maturity of more 4,432.13 - 4,247.52 -
than 12 months)
Interest Accrued on Bank Deposits - 1,893.83 - 1,417.74
Total Bank 4,432.13 44,477.28 4,247.52 31,580.89

# Statutory Deposits for Chit Operations as at March 31, 2024 is Rs. 5,958.03 lakhs (March 31, 2023 : Rs.
4,629.68 lakhs)
* Bank Deposits given on lien as at March 31, 2024 is Rs. 4,050.00 lakhs (March 31, 2023 : Rs. 50.00 lakhs)
Wholly Owned subsidiary- Karnataka State Marketing Communication & Advertising Ltd
*includes Margin Money Deposits against guarantees of Rs. 175.68 lakhs (March 31, 2023 Rs. 76.80 lakhs).
*Margin Money Deposits of Rs 0.04 lakhs is against locker held.
176
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15A Borrowings
Particulars
Secured
(i) Loan from Government of Karnataka 3.02 - 3.02 -
(ii) Interest Accrued and due on above Unsecured 9.62 - 9.62 -
Unsecured
(i) Loan from Related parties* (Refer Note 38) 28.56 - 28.56 -
(ii) Loan from Government of Karnataka* 9.00 - 9.00 -
(iii) Interest Accrued and due on above Unsecured 99.08 - 124.35 -
Total Borrowings 149.28 - 174.55 -
*Interest accured on loans from KSIIDC and Government of Karnatakahas not been provided since April
1999. The Group has approached for waiver of interest.
15B Lease Liability

Particulars
31, 2024 31, 2023
Balance as per last financial statements 725.52 1,081.88
Additions during the year 1,133.23 288.53
Deletions during the year - (117.65)
Interest on lease liabilities accrued during the year 131.78 103.84
Balance at the year end 1,163.20 725.52
Current 725.06 382.77

Contractual maturities of lease liabilities on undiscounted basis

As at March 31, As at March 31,
Particulars
2024 2023
Less than one year 682.91 406.72
One to five years 734.13 479.17
More than five years - -
Total 1,417.04 885.89
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15C Other Financial liabilities

Current Current
Current Current
Deposit from customers and others - 1,712.83 32.50 1,613.29
Interest Accrued - - - 53.88
Non Prized Chit Subscription 17,324.71 11,337.64 14,803.97 9,365.51
Payable to Capital Vendors - 3.22 - 118.03
Payable to Employees 185.83 517.84 179.35 465.31
Grants Unutilised - 247.05 - 247.05
Chit Payables
-From Related Party (Refer Note 38) - 7.50 - -
-From Others - 3,572.08 - 2,935.03
Liquor Division Related Payable* - 3,531.53 - -
Other payables** 29.20 500.46 - 239.75
Total 17,539.74 21,430.15 15,015.82 15,037.85

*Against which security guarantee given for Rs.3,525.00 lakhs. Refer Note No 39 (viii)
**Other Payables include (a) Rs. 210.46 lakhs (PY: Rs. 210.46 lakhs ) of advances received from various
Government departments in respect of contract to supply imported cement and (b) Rs. 10 lakhs (PY:Rs. 10
lakhs) received from Government of Karnataka during the year 1985- 86 under Special Component Plan. No
repayment terms has been specifed by the Government. No interest provision has been made on the same.
16 Provisions
Particulars
Provision for employee benefits (Refer Note 34)
Compensated Absences 412.58 169.40 473.87 137.40
Employee Death Relief Fund 15.38 78.80 15.20 77.93
Provision for Insurance Claim (Refer Note 39(i)) 402.42 - 389.59 -
Total 830.38 248.20 878.66 215.33
a Movement of Provision for insurance Claim

Particulars
31, 2024 31, 2023
Addition during the year 12.83 25.66
Balance at the year end 402.42 389.59
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17 Other liabilities
Particulars
Statutory dues (provident fund and tax 36.72 587.92 36.72 624.55
deducted at source etc.)*
Advance from Customers - 2,595.78 - 3,140.13
Amount received in Advance - 1,067.07 - 1,067.07
Other Liabilities** - 517.23 - 282.03
Total 36.72 4,768.00 36.72 5,113.78
*Statutory dues includes service Tax dues of Rs. 36.72 lakhs related to the bills raised prior to 01-Apr-2011 but
not received, as the company has followed cash basis for discharging the service tax liability till the effective
date of applicability of Point of taxation rules. The management estimates that interest amount for non payment
of service tax is Nil and no further provision for interest is made to that extent.
**Government Order No. C18 CMI 2003 (PUC), Bangalore dated 31-Mar-2003 & 29-Apr-2004 directed to issue
Equity Shares to GOK amounting to Rs. 345.74 lakhs. The Company in this regard has made a representation
to the Government of Karnataka towards paying 10% Net profit to Govt. in lieu of shares and to drop the
proposal of payment of Business Development Cost [BDC] @ 8% turnover from 2002-03 & 2003-04. The matter
is pending before Government of Karnataka & orders in this regard is awaited. The Company has sent proposal
to GOK requesting to reconsider the earlier orders and withdraw the orders on BDC. The response from GOK
is awaited. The Company has shown this amount as ‘Amount received in Advance’.
For Subsidiary-Mysore Chrome Tanning Company Limited
**The State Government in principle has permitted the Sale of land belonging to the Company to KSRTC. As
a first step, the Company sold 2 acres and 20 guntas of land for a consideration of Rs. 277.78 lakhs and has
entered into an agreement for sale of 5 acres and 20 guntas of land for a consideration of Rs. 722.22 lakhs. The
sum paid by KSRTC, net of expenses, stands at Rs. 721.33 lakhs as advance consideration and the same has
been considered under Amount received in Advance. The balance land has been occupied by Slum Dwellers
and KSCB as assured vide letter dated 27-08-2011 to compensate the land of 2979 sq. mtrs.
18 Trade payables
Particulars
31, 2024 31, 2023
Total outstanding dues of micro enterprises and small enterprises 3,195.19 2,694.04
Total outstanding dues of creditors other than micro enterprises and 31,940.97 26,523.86
small enterprises
Total 35,136.16 29,217.90
(i) Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force
from 2nd October 2006, certain disclosures are required to be made relating to Micro, Small and Medium
Enterprises. The Company has identified Micro, Small and Medium enterprises as per section 22 of the
Micro, Small and Medium Enterprises Development Act 2006 during the FY 2023-24.
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Particulars
31, 2024 31, 2023
a the principal amount and the interest due thereon (to be shown separately)
remaining unpaid to any supplier at the end of each accounting year;
Principal amount due to small and medium enterprise 3,195.19 2,694.04
Interest due on above - -
b The amount of interest paid by the company in terms of section 16 of the - -
Micro, Small and Medium Enterprises Development Act, 2006 along with
the amounts of payment made to the supplier beyond the appointed day
during the accounting year.
c The amount of interest due and payable for the period of delay in making - -
payment (which have been paid beyond the appointed day during the year)
but without adding the interest specified under Micro Small and Medium
Enterprises Development Act, 2006 *
d The amount of interest accrued and remaining unpaid at the end of the - -
accounting year
e The amount of further interest remaining due and payable even in the - -
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure u/s 23 of the Micro Small and Medium Enterprises
Development Act, 2006.*
*The above information has been furnished to the extent such parties have
been identified as MSME by the Company. The same has been relied upon
by the auditors.
(ii) Trade Payables aging schedule

Outstanding for following periods from due
date of payment
Total
Less than 1 More than
Particulars 1-2 years 2-3 years
year 3 years
Micro and small Enterprises 2,418.45 371.73 170.78 234.23 3,195.19
Other than Micro and small 23,216.15 3,460.92 1,066.70 4,197.20 31,940.97
Enterprises
Grand total 25,634.60 3,832.65 1,237.48 4,431.43 35,136.16
Outstanding for following periods from due date

of payment
Total
Less than 1 More than
Particulars 1-2 years 2-3 years
year 3 years
Micro and small Enterprises 883.81 1,477.68 70.76 261.79 2,694.04
Other than Micro and small Enterprises 20,776.42 1,332.01 510.52 3,904.91 26,523.86
Grand total 21,660.23 2,809.69 581.28 4,166.70 29,217.90
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19 Revenue from Operations

Particulars
March 31, 2024 March 31, 2023
Sale of products 339,180.58 294,382.37
Income Earned on Chit Fund Business

Foreman’s Commission 2,001.22 1,765.15
Dividend 139.58 147.24
Default Interest 208.33 224.29
Revenue from services

Media Advertisements 6,957.22 10,962.82
Event organising and others 19,944.14 25,157.70
Revenue from Production 7,908.47 7,609.69
Other Operating Income

Processing Charges 43.22 32.44
Commission and service charges 41.38 139.92
Total 376,424.14 340,421.62
Disaggregation of Revenue from contracts with customers

a Revenue based on Geography
Particulars
March 31, 2024 March 31, 2023
Domestic 376,424.14 340,421.62
Export - -
b Timing of revenue recognition

Particulars
March 31, 2024 March 31, 2023
Goods or services transferred at a point in time 376,424.14 340,421.62
Goods or services transferred at a over time - -
376,424.14 340,421.62
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c Revenue based on business segment

Particulars
March 31, 2024 March 31, 2023
Liquor 318,708.98 266,072.84
Note Books & Stationery 14,339.28 9,984.71
Chit Business 2,349.12 2,136.68
Marketing and Advertisement 38,710.92 57,889.92
Others 562.08 907.45
d Reconciling the amount of revenue recognised in the statement of profit or loss with the contracted
price
Particulars
March 31, 2024 March 31, 2023
Revenue as per contracted price 376,439.24 340,421.62
Adjustments
Sales Return 15.10 -
Trade and cash discounts - -
Revenue from contact with customer 376,424.14 340,421.62
e Contract assets and contract liabilities

The Company has recognised the following revenue related contract assets and liabilities
Particulars
March 31, 2024 March 31, 2023
Trade receivables (Refer Note 10) 25,230.78 19,312.72
Advance from customers (Refer Note 17) 2,595.78 3,140.13
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20 Other Income
Particulars
March 31, 2024 March 31, 2023
Interest Income on financial assets measured at amortised cost
-Fixed Deposits 3,071.48 164.61
-Other financial assets and deposits 60.30 1,754.24
Rent 595.66 851.04
Dividend 11.53 6.11
Excess Provision no longer required 172.35 131.13
Profit on sale of property, plant and equipment - 6.04
Miscellaneous income 201.97 520.82
Total 4,113.29 3,433.99
21 Cost of materials consumed

Particulars
March 31, 2024 March 31, 2023
Inventory at the beginning of the year 179.49 91.03
Add: Purchases during the year 2,738.15 1,831.00
Less: Inventory at the end of the year (63.70) (179.49)
Total 2,853.94 1,742.54
22 Purchases of Stock-in-Trade
Particulars
March 31, 2024 March 31, 2023
Liquor 290,107.21 243,126.50
Notebooks and Stationery 9,138.80 5,469.51
Excise Labels 2,653.57 13,288.45
Others 528.40 808.37
Total 303,883.87 265,845.06
23 Cost of Services
Particulars
March 31, 2024 March 31, 2023
Media Advertisment 5,902.89 9,132.32
Event Organising and others 18,579.23 24,008.34
Production 7,379.36 7,203.78
Total 31,861.48 40,344.44
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24 Changes in inventories of finished goods and stock-in-trade

Particulars
March 31, 2024 March 31, 2023
Inventories at the end of the year
Traded goods 14,681.93 14,993.40
15,862.00 15,664.75
Inventories at the beginning of the year
Traded goods 14,993.40 13,040.99
Finished goods 671.35 1,523.35
15,664.75 14,564.34
Total (197.25) (1,100.41)
25 Employee Benefits Expense

Particulars
March 31, 2024 March 31, 2023
Salaries, Wages, Gratuity (Refer Note 34) 2,086.17 1,806.38
Contribution to Provident & Other funds (Refer Note 34) 207.17 187.34
Staff Welfare and Training Expenses 191.74 425.59
Total 2,485.08 2,419.31
26 Finance Costs
Particulars
March 31, 2024 March 31, 2023
Interest on lease liabilities (Refer note 15B) 131.78 103.84
Interest on financial liabilities measured at amortised cost 2.53 4.62
Bank charges 74.44 71.23
Guarantee Commission 30.68 0.31
Total 239.43 180.00
27 Depreciation and amortization expense

Particulars
March 31, 2024 March 31, 2023
Depreciation on Property, plant and equipment (Refer note 2) 1,159.79 1,179.35
Depreciation on Investment Properties (Refer note 4) 118.27 118.24
Amortization of intangible assets (Refer note 5) 10.29 11.46
Depreciation of Right-of-use assets (Refer note 5A) 729.27 595.70
Total 2,017.62 1,904.75
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28 Other Expenses
Particulars
March 31, 2024 March 31, 2023
Conversion charges - Notebooks 320.54 254.67
Packing Material & Secondary Freight 1,930.21 1,694.52
Outsourcing expenses 8,240.06 7,943.44
Rent (Refer note 5B) 995.78 1,117.99
Repairs & Maintenance :
- Buildings 186.49 107.07
- Vehicle 86.77 65.28
- Others 479.53 268.19
Insurance 162.55 168.65
Rates and taxes 5,603.02 5,332.95
Advertising and sales promotion 384.57 510.40
Communication costs 88.54 101.02
Printing and stationery 259.45 275.38
Payment to Auditors (Refer Note 28A) 14.20 14.46
Legal and professional fees 700.57 733.99
Travelling and conveyance 180.45 335.79
Electricity & Water 307.78 254.04
Security Services 91.47 90.02
Commission 749.69 608.53
Donation 302.25 410.00
Corporate Social Responsibility expenditure 200.40 128.16
Directors Sitting fees 1.17 3.19
Loss on sale of property, plant and equipment (net) 3.24 -
Miscellaneous Expenses 323.35 435.51
Business promotion and Development expenses 20.17 24.25
Total 22,135.09 21,314.73
28A Payment to the Auditor:

Particulars
March 31, 2024 March 31, 2023
- Audit fee 11.29 11.55
- Tax audit fee 2.91 2.91
Total 14.20 14.46
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29A Tax expense

Tax expense comprises of:
Particulars
March 31, 2024 March 31, 2023
Statement of Profit and Loss
Current tax on continuing business 4,045.19 3,336.47
Current tax on discontinuing business 1.34 (0.71)
Deferred tax charge/(credit) (349.42) (608.09)
Income tax expense reported in the Statement of Profit 3,723.03 2,762.95
and Loss
Statement of Other Comprehensive Income

Deferred tax charge/(credit)
On Re-measurement gains/ (losses) on defined benefit plans 5.14 (0.45)
On Fair value of Equity instruments (300.79) 4.78
Deferred tax charged to OCI (295.65) 4.33
B Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate
The major components of income tax expense and the reconciliation of expected tax expense
based on the domestic effective tax rate:
Particulars
March 31, 2024 March 31, 2023
Accounting profit before tax from continuing operations 15,252.51 11,190.91
Profit/(loss) before tax from discontinued operations 5.32 (2.82)
Accounting profit before tax 15,257.83 11,188.09
Effective tax rate in India 25.168% 25.168%
Current tax expenses on Profit before tax expenses at the 3,840.09 2,815.82
enacted income tax rate in India
Adjustments:
Inadmissible expenditure 88.36 100.84
Eligible Deductions under the IT Act (206.54) (117.08)
Other adjustment (24.80) (71.91)
Total income tax expense 3,723.03 2,762.95
Effective tax rate 24.401% 24.695%
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C Deferred tax
Statement of Statement of
Balance Balance
profit and profit and
sheet sheet
loss and OCI loss and OCI
for the year for the year
March 31, March 31,
ended March ended March
2024 2023
31, 2024 31, 2023
Accelerated depreciation for tax 41.93 (2.56) 44.49 120.20
purposes
Disallowance u/s 40(a)(ia) and 43B 269.39 401.31 (131.92) 413.62
Unrealised Rental Income - (49.78) 49.78 13.87
Provision for employee benefit 163.57 176.68 (13.11) (36.99)
expenses
Provision for doubtful advances/debts 2,671.53 2273.51 398.02 113.48
Lease Liabilities and Right of Use 4.25 (3.05) 7.30 (16.54)
Assets
Fair value of Equity Investments (296.01) 4.78 (300.79) 4.78
Deferred tax expense/(income) 53.77 612.42
Net deferred tax assets/(liabilities) 2,854.66 2,800.89
As at As at
Reflected in the balance sheet as follows:
March 31, 2024 March 31, 2023
Deferred tax asset 3,150.67 2,856.28
Deferred tax liability (296.01) (55.39)
Deferred Tax Asset(Net) 2,854.66 2,800.89
Recognised deferred tax assets and liabilities

Deferred tax assets is recognized to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences and carried forward tax losses can be utilised.
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax
assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same tax authority.
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30 Discontinued Operations and assets held for sale

A Hire purchase operations- Discontinued Operations
The Company has discontinued its Hire Purchase Operations in July 2008, which was also a separate
segment as per Ind AS-108, Operating Segments. The Company accounts for interest income from
Hire Purchase Operations on cash basis. The scheduled EMI periods terminated in 2013-14. The
results of Hire Purchase Operations for the year are presented below:
Particulars
March 31, 2024 March 31, 2023
Other income 5.56 1.80
Other expenses 0.24 4.62
Profit/(Loss) before tax from discontinuing operations 5.32 (2.82)
Tax expense on discontinuing operations (1.34) 0.71
Profit/(Loss) for the year from discontinuing operations 3.98 (2.11)
Assets
- -
Liabilities - -
B Investment in equity shares - Assets held for Sale

The Government of Karnataka, vide its order no AHD 172 AFT 2010 dated March 05, 2011, had advised
the company to transfer the shares to Karnataka State Agricultural Produce Processing and Export
Corporation (Corporation) which was also approved in the Board Meeting of the Company held on
June 30, 2011. This is classified as an FVTOCI financial asset and carried at fair value through OCI.
The Company did not pledge the financial asset nor received any collateral for it. The parties to the
transaction are in the process of finalising the consideration as at the year end.
Unquoted - Fully paid equity shares
31, 2024 31, 2023
Associate
50,000 (March 31, 2023: 50,000) fully paid equity shares of INR 409.07 414.73
10 each
409.07 414.73
Liabilities associated with the assets held for sale - -
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31 Other Comprehensive Income

Items that will not be reclassified to profit or loss
March 31, 2024 March 31, 2023
Gain/(loss) on FVTOCI of Investment in equity shares of: 1,189.74 (19.01)
- J K Tyre Industries Limited 912.81 122.74
- Bengal & Assam Co Limited 187.39 49.74
- The Karnataka State Co-operative Apex Bank Limited 0.26 1.23
- Hassan Mangalore Rail Development Company Limited 89.28 (192.72)
Re-measurement gains (losses) on defined benefit plans (1.38) 2.50
Total Other Comprehensive Income 1,188.36 (16.51)
32 Earnings Per Share

Particulars
March 31, 2024 March 31, 2023
Profit attributable to equity holders of the company Continuing 11,530.82 8,427.25
operations
Discontinued operations 3.98 (2.11)
Total 11,534.80 8,425.14
No. of shares used for Basic and diluted Earnings Per Share 4,273,477 4,273,477
Face Value of Share (Rs.) 100.00 100.00
Earnings per share for continuing operations
Earnings per share for discontinued operations
Basic and Diluted (Rs.) 0.09 (0.05)
Earnings per share for continuing and discontinued
operations
33 Dividend Paid
Cash dividends on equity shares paid:
March 31, 2024 March 31, 2023
Dividend for the year ended March 31, 2023 March 31, 2022
Dividend paid 1,827.87 1,105.19
The Board has proposed Dividend of @ 30% of Profit after tax for the year which will have a outflow of
Rs. 3,115.91 lakhs (March 31, 2023: Rs. 1,827.87 lakhs). The Proposed dividends is subject to approval
at the annual general meeting and are not recognised as a liability as at March 31, 2024.
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35 Capital management
The Group’s capital management is intended to maximise the return to shareholders for meeting the long
and short term objectives of the Group through the leveraging of the debt and equity balance.
The Group determines the amount of capital required on the basis of annual and long-term operating
plans and strategic investment plans. The funding requirements will be met through long and short term
borrowings. The Group monitors the capital structure on the basis of debt to equity ratio and the maturity
of the overall debt of the Group.
The following table summarises the capital of the Group:
As At As At
Particulars
March 31, 2024 March 31, 2023
Total equity (Note 13 and 14) 85,583.58 74,987.37
Debt 149.28 174.55
Cash equivalents including other bank balances (Note 11 and 12) 64,518.36 46,003.19
Net debt (64,369.08) (45,828.64)
Total equity plus net debt 21,214.50 29,158.73
Gearing Ratio (Net debt to capital ratio) - -
No changes were made in the objectives, policies or processes for managing capital during the years
ended March 31, 2024 and March 31, 2023.
36 Financial risk management

The Group’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources
of risk which the entity is exposed to and how the entity manages the risk and the related impact in the
financial statements.
Risk Exposure arising from Measurement
Credit risk Other bank balances, trade Ageing analysis and
receivables, investment carried at recoverability assessment
amortised cost, loans, other financial
assets and financial guarantees
Liquidity risk Other financial liabilities & collaterals Rolling cash flow forecasts
taken as security
Market risk – foreign exchange Recognised financial assets and Sensitivity analysis
liabilities not denominated in INR
Market risk – security prices Investment in equity securities Sensitivity analysis
i Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss
to the Group. The Group is exposed to credit risk from its operating activities (predominantly trade receivables)
and from its financing activities, including deposits with banks and financial institutions, foreign exchange
transactions and other financial instruments.
Credit risk management
Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures
and control relating to the customer credit risk management. The Group uses financial information and past
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experience to evaluate credit quality of majority of its customers and individual credit limits are defined in
accordance with this assessment. Outstanding receivables and the credit worthiness of its counter parties are
periodically monitored and taken up on case to case basis. There is no material expected credit loss based on
the past experience. However, the Group assesses the impairment of trade receivables on case to case basis
and has accordingly created loss allowance.
The credit risk on cash and bank balances is limited because the counter parties are banks with high credit
ratings assigned by accredited rating agencies.
The Group assesses and manages credit risk of financial assets based on the following categories arrived on
the basis of assumptions, inputs and factors specific to the class of financial assets.
Classification of financial assets under various stages
The Group classifies its financial assets in three stages having the following characteristics:
Stage 1: unimpaired and without significant increase in credit risk since initial recognition on which a 12-month
allowance for ECL is recognised;
Stage 2: a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised; and
Stage 3: objective evidence of impairment, and are therefore considered to be in default or otherwise credit
impaired on which a lifetime ECL is recognised.
All financial assets are deemed to have suffered a significant increase in credit risk when they are 30 days
past due (DPD) or one instalment overdue on the reporting date and are accordingly transferred from stage 1
to stage 2. For stage 1 an ECL allowance is calculated based on a 12-month point in time (PIT) probability of
default (PD). For stage 2 and 3 assets a life time ECL is calculated based on a lifetime Probability of default.
The Group calculates impairment on financial instruments under ECL approach prescribed under Ind AS 109
‘Financial instruments’. ECL uses three main components: PD, LGD (loss given default) and EAD (exposure at
default) along with an adjustment considering forward macro economic conditions.
Financial instruments other than Loans were subjected to simplified ECL approach under Ind AS 109 ‘Financial
instruments’.
Credit risk exposure

Provision for expected credit losses
The Group provides for expected credit loss based on 12 month and lifetime expected credit loss basis for
following financial assets:
Gross carrying Expected Carrying amount net of
Particulars
amount credit losses impairment provision
Trade receivables 29,934.21 (4,703.43) 25,230.78
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Carrying amount
Gross carrying Expected credit
Particulars net of impairment
amount losses
provision
Trade receivables 23,854.72 (4,542.00) 19,312.72
Reconciliation of loss allowance provision - Trade Receivables and Other Financial Assets
Other financial
Particulars Trade receivables
assets
Loss allowance on April 01, 2022 (4,338.48) (1,937.27)
Add: Allowance for the year (Net) (203.52) -
Loss allowance on March 31,2023 (4,542.00) (1,877.26)
Add: Allowance for the year (Net) (161.43) (155.57)
Loss allowance on March 31, 2024 (4,703.43) (1,994.87)
ii Liquidity risk
The Group 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
Management monitors rolling forecasts of the Group’s liquidity position and cash and cash equivalents
on the basis of expected cash flows. The Group takes into account the liquidity of the market in which the
entity operates. In addition, the Group’s liquidity management policy involves projecting cash flows in major
currencies and considering the level of liquid assets necessary to meet the liability, monitoring balance
sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing
plans.
Maturities of financial liabilities
The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on their
contractual maturities for all financial liabilities. The amounts disclosed in the table are the contractual
undiscounted cash flows (except lease liabilities).
Less than 1 1 year to 5 5 years and
year years above
Non-derivatives
Borrowings - 149.28 - 149.28
Trade payables 25,634.60 9,501.56 - 35,136.16
Total 47,789.81 27,479.44 - 75,269.25
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1 year to 5 5 years and

As At March 31, 2023 Less than 1 year Total
years above
Non-derivatives
Borrowings - 174.55 - 174.55
Trade payables 21,660.23 7,557.67 - 29,217.90
Lease liabilities 382.77 342.75 - 725.52
Total 37,080.85 22,916.24 - 59,997.09
iii Market risk
a Foreign currency risk
The Group does not carry any asset or liability denominated in Foreign currency. Hence the Group is not
exposed to currency risk.
b Price risk
The Group’s exposure to equity securities price risk arises from the investments held by the group and
classified in the balance sheet at fair value through OCI.
Sensitivity
Profit or loss is sensitive to higher/lower prices of instruments on the Group’s reserves for the periods.
Particulars March 31, 2024 March 31, 2023

Price increase by 5% - FVOCI 179.73 120.25
Price decrease by 5% - FVOCI (179.73) (120.25)
iv Interest risk
Interest rate risk refers to the possibility that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in market interest rate.
As on March 31, 2024, 100% of the Group’s borrowings are at fixed rate of interest. (March 31, 2023 :
100%).
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37 Financial Instruments
Financial instruments by category
The following table shows the carrying amounts and fair values of financial assets and financial liabilities.
Note
Particulars Amortized Amortized
No. Cost FVTOCI Total Cost FVTOCI Total
cost cost
Financial assets:
6 Investments - 3,594.67 - 3,594.67 - 2,404.93 - 2,404.93
7 Other financial - - 33,733.65 33,733.65 - - 29,781.93 29,781.93
assets
10 Trade receivables - - 25,230.78 25,230.78 - - 19,312.72 19,312.72
11 Cash and cash - - 15,608.95 15,608.95 - - 10,174.78 10,174.78
equivalents
12 Other Bank - - 48,909.41 48,909.41 - - 35,828.41 35,828.41
Balances
Total financial - 3,594.67 123,482.79 127,077.46 - 2,404.93 95,097.84 97,502.77
assets
Financial liabilities :
18 Trade payables - - 35,136.16 35,136.16 - - 29,217.90 29,217.90
15A Borrowings - - 149.28 149.28 - - 174.55 174.55
15B Lease Liability - - 1,163.20 1,163.20 - - 725.52 725.52
15C Other financial - - 38,969.89 38,969.89 - - 30,053.67 30,053.67
liabilities
Total financial - - 75,418.53 75,418.53 - - 60,171.64 60,171.64
liabilities
Fair Value disclosure for Financial Instruments

Note
Particulars Carrying Carrying
No. Fair Value Fair Value
Amount Amount
Financial assets :
6 Investments measured at Fair Value 3,594.67 3,594.67 2,404.93 2,404.93
through OCI
Total financial assets 3,594.67 3,594.67 2,404.93 2,404.93
Financial liabilities : - - - -
Total financial liabilities - - - -
The management assessed that the fair value of cash equivalents, trade receivables, loans, other financial
assets, trade payables, borrowings and other financial liabilities approximate the carrying amount largely due to
short-term maturity of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
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ii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped
into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant
inputs to the measurement, as follows:

Quoted Significant Quoted Significant
Significant Significant
price in Un Total price in Un Total
Observable Observable
active -observable active observable
inputs inputs
markets inputs markets inputs
(Level 2) (Level 2)
(Level 1) (Level 3) (Level 1) (Level 3)
Asset measured at
fair value
Fair value
through Other
Comprehensive
Income
Investment in Equity 1,749.13 - 1,845.54 3,594.67 648.93 - 1,756.00 2,404.93
shares
Fair value hierarchy
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock
exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value
an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification
asset included in level 3.
There are no transfer between level 1, 2 and 3 during the year.
The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of
the reporting period.
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38 Disclosure of Related Party Transactions in accordance with Ind AS 24 - Related Party

Disclosures
(a) Name of Related Parties and Nature of Relationship :
Sr. No. Name of Related Parties Relationship Remark
(I) Key Management Personnel(KMP)
1 Mr. Puttarangashetty Chairman From 26/01/2024
2 Mr. Patil M B Chairman From 13/06/2023
Up to 26/01/2024
3 Mr. Halappa Chairman Up to 12/04/2023
4 Mr. Manoj Kumar Managing Director From 03/07/2023
5 Mr. Vikash Kumar Vikash Managing Director Up to 03/07/2023
6 Mr. Ravishankar J Director
7 Ms. Gunjan Krishna Director
8 Mr. Nitish K Director
9 Mr. Ramesh R Director
10 Mr. Sateesha B C Director From 23/11/2023
11 Mr. Ravi M R Director Up to 23/11/2023
12 Mr. Venkatesh Naidu Director Up to 22/05/2023
13 Mr. Channadevaru C Director Up to 22/05/2023
14 Mr. Shivaji Shivaray Dollin Director Up to 22/05/2023
15 Mr. Andappa Javali Director Up to 22/05/2023
16 Mr. Totappa Nagappa Nidagundi Director Up to 22/05/2023
17 Mr. Satish R D Director Up to 22/05/2023
18 Mr. Ningappa Director Up to 22/05/2023
19 Mr. Shashidhar B Honnannavar Director Up to 22/05/2023
20 Ms. Sridevi B N Company Secretary
21 Mr. Avinash K R Chief Financial Officer From 01/12/2023
22 Mr. Chandrappa A M Chief Financial Officer Up to 01/12/2023
23 Ms. Sharada Manoj Kumar Relative of Managing
Director
(II) Entity having significant interest in Holding Company
Karnataka State Industrial & Infrastructure Development Corporation Limited
(III) Associate Company
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(b) Transactions with related parties:

March 31, 2024 March 31, 2023
a) With KMP & Relative of KMP
Remuneration paid to Key management personnel (*)(#) 113.92 107.37
Contribution to Chit 7.50 -
Repayment of Advance by Chit Contributors 4.20 4.20
Expenses incurred on behalf of KMP 1.13 9.41
Sitting Fee paid to Directors 0.51 1.64
b) With entity having significant interest in Holding
Company
Revenue from services 56.32 72.19
c) With Associate
Share of Profit/(Loss) (5.66) (14.28)
(*) As the provision for liability for gratuity and vacation pay is provided on an actuarial basis for the company
as a whole, the amount pertaining to individuals is not ascertainable and therefore not included above.
(#) Includes contribution to provident fund
(c) Balances with related parties as on date are as follows

March 31, 2024 March 31, 2023
a) With KMP
Advances from KMP for Chit 7.50 -
Advances to KMP for Chit 1.55 5.75
Receivable from KMP 10.53 9.41
b) With entity having significant interest in Holding Company

Trade Receivable 9.29 4.19
Non Current Borrowings 28.56 28.56
(d) Terms and conditions of transactions with related parties

Transaction entered into with related party are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances other than loan given, at the year-end are unsecured and interest free
and settlement occurs in cash.
(e) Commitments with related parties
The Company has not provided any commitment to the related party as at March 31, 2024 (March 31,
2023: Rs. Nil)
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39 Contingent Liabilities and Commitments

Sr. As at March As at March
Particulars
No. 31, 2024 31, 2023
1 Guarantees / Counter Guarantees given by Banks on behalf of 215.49 122.48
the Group
2 Claims against the Company not acknowledged as debt
a Insurance Claim on Fire Policy - Refer Note (i) below
– Pending cases 207.73 207.73
– Decreed cases 488.70 488.70
– Interest on above 718.56 680.06
b Claim made by party in the business of Iron ore Export (including 2,594.64 2,465.96
interest) - Refer Note (ii) below
c Claims made by Directorate of Pension, Small savings Asset 1,553.60 4,609.86
Monitoring - Refer Note (iii) below
d Claim against lease of windmill by Wescare (India) Limited - Refer 123.79 119.23
Note (iv) below
e Claim by Airport Authority of India - Licence fee on lease of 397.14 397.14
Bangalore Air Carco Complex (BACC) Refer Note (v) below
f Claim made by party in business of Advertisement - Refer Note 57.18 57.18
(xi) below
3 Disputed Demands - Refer Note (vi) below
– In respect of Income Tax 4,229.47 3,399.00
– In respect of Service Tax - Refer Note (xii) below 310.73 369.12
4 GST RCM on Transportation Charges - Refer Note (vii) below 365.49 45.98
5 Interest liability on SKOL Breweries Claim - Refer Note (viii) below 308.77 -
Notes for Holding Company

(i) “Certain Insurance Companies who had settled the claims of their customers on account of fire accident
at BACC owned by the Company during 2001, have filed several suits against the Company for recovery
of claims settled by them under the principles of subrogation. The Company had finally approached the
Honourable Supreme Court against the order of the High Court of Karnataka. The Honourable Supreme
Court had directed vide its order dated November 06, 2009 that all the parties (the Company, insurance
companies and customs authorities) concerned being Government agencies, they should discuss mutually
and settle the matter amicably.
“Few cases amounting to Rs 207.73 lakhs (PY: Rs 207.73 lakhs) are still subjudice. Since in the past on
similar matter the lower courts had decided that the Company and Dept. of Customs are jointly and severally
liable for settlement of the insurance claim, the Company has provided Rs. 162.90 lakhs (PY Rs. 162.90
lakhs) being 25% of the total decreed liability of Rs. 651.60 lakhs (PY Rs. 651.60 lakhs); the unprovided
portion of Rs. 488.70 lakhs (PY: Rs. 488.70 lakhs) is reported above. In the current year, Compound interest
at 6% is calculated on an amount of Rs. 958.08 lakhs (PY: Rs. 906.75 lakhs). An amount of Rs. 239.52
lakhs is provided in the current year (PY: Rs. 226.69 lakhs) and the balance amount of Rs 680.06 lakhs
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(PY: 641.57 lakhs) is reported under Contingent liability. Share of settlement by the insurance companies
and the Department of Customs are not yet finalised. The Company had insured the cargo lying in BACC
warehouse at the rate of USD 20 per KG as per trade circular issued by the Department of Customs.”
(ii) “The Company had entered into an agreement to export iron ore to China with Fe content of 52%. As the
commitment was not honoured by the Company, the buyer went for arbitration. An arbitration committee
that was formed as per the agreement had passed an award against the Company for USD 18,80,851,
apart from this, an interest payable @ 5 %. USD 67,473 is due from the overseas buyer. The claim against
the Company is Rs. 2,594.64 lakhs (PY: Rs. 2,465.96 lakhs) including interest is reported in the table
above. The Claims of the overseas buyer in respect of expenses incurred in China and liability under FEMA
are not considered here.
The arbitration award was contested by the Company and it had filed a case in the High Court of
Karnataka. The Hon’ble HC directed City Civil Court to admit and determine the case on merits.
In the light of irregularities reported by the Committee on Public Undertakings of the Karnataka Legislative
Assembly in the above transactions, the Company has filed criminal complaint in the jurisdictional police
station and the police are investigating the case. In respect of these criminal complaint, police have framed
the charge sheet and filed the case before the Magistrate Court, Bangalore.”
An irrevocable Letter of Credit in favour of MMI for Rs. 5 Crores was established. The supplier, having
failed to mobilize funds to procure ore, sought advance from MSIL. As the ship had already arrived at the
port on December 10th 2009, to avoid demurrage, the Company had advanced Rs. 2.15 Crores against
post dated cheques and commitment to create equitable mortgage on properties which the company could
not complete. In view of continued failure to supply the ore, the Company had deposited the cheques for
collection but these were dishonoured and hence a criminal case under Negotiable Instruments Act, 1881
was filed on 25.02.2010, now the case is pending before the Chief Metropolitan Court, Bangalore. In the
hearing held on 8th August 2019 it was informed by the Advocate for the accused that the accused had
expired and the Death Certificate will be produced in the next hearing.
The Company raised an invoice on the buyer and negotiated the documents through LC which could not
be negotiated as it was lapsed. On the cargo reaching Hong Kong port, Chinese Inspection Quality Report
revealed an Fe content of 45.9% and hence the buyer rejected the ore as sub standard. Subsequently,
overseas buyer was authorized to sell the ore and realize the proceeds. The ore was sold at US$ 35 per
MT on CFR basis realising US$ 16,39,626.80 vide invoice dated March 23rd 2010. MSIL requested the
foreign buyer to remit the sale proceeds who in turn claimed US$ 24,25,051.88 towards its claim against
the Company, which the company didn’t agree.
(iii) Directorate of Small Savings: A letter dated November 18, 2020 was received from the Directorate of
Pension, Small Savings Asset Monitoring towards short remittance of sale proceeds of lottery and interest
on delayed remittance, amounting to Rs. 4,609.86 lakhs drawing reference to their earlier letters . However
the Company vide its letter dated December 10, 2020 had communicated that it had earlier remitted a
sum of Rs. 352.61 lakhs on October 17, 2016 towards full and final settlement of all dues and that no
payment is due from the Company on this subject. The letter of the Company has been acknowledged by
the Directorate of Small Savings. After submission of necessary documents, the Government of Karnataka
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has reduced the demand to 1787.00 lakhs including interest. The Company has provided Rs. 233.40 lakhs
against the said claim. The remaining amount of Rs.1,553.60 lakhs is reported under Contingent Liability.
The Company is in the process of submitting request for waiver of Interest.
(iv) A claim was made by M/s Wescare (India) Limited, a lessee, which was disputed by the Company. The
matter was referred to an arbitration panel and an award was passed for Rs. 119.23 lakhs (PY: Rs 119.23
lakhs) against the Company. The Company has filed a case against the arbitration award in the year 2015-
16 and the matter is subjudice in the High Court of Madras. This amount is disclosed under contingent
liability.
(v) The Company had leased 2,565.4 Sq. Meter from Airport Authority of India (AAI) at Bangalore Air Cargo
Complex (BACC), Bangalore. The lease was renewed for a period of 10 years from January 01, 2001 to
2010. After a joint survey, the property has been handed over on March 02, 2022. AAI has demanded Rs.
226.89 lakhs towards license fees, Damages of Rs. 167.24 lakhs and interest of Rs. 229.90 lakhs. The
Company is in the process of negotiating a settlement and provided so far Rs. 226.89 lakhs against the
licence fee demand (PY: Rs. 226.89 lakhs). Pending settlement with AAI, the Company has provided for
the rental demand in full and has reported Rs. 397.14 lakhs as contingent liability (PY: Rs. 397.14 lakhs).
(vi) Disputed Demands
(a) It is not practicable for the Company to estimate the timing of cash outflows, if any, pending resolution
of the respective proceedings.
(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.
(c) The Company believes that the ultimate outcome of these proceedings will not have a material adverse
effect on the Company’s financial position and results of operations.
(vii) a) Refund claim of GST RCM of Rs. 45.98 lakhs were paid towards transportation charges which is
reported under “Other Assets” in note no. 8. The actual claim up to December 2020 was Rs. 121.42 lakhs.
The difference of Rs. 75.44 lakhs were charged to the Statement of Profit and Loss in earlier years. The
Company’s claim was rejected by Assistant Commissioner of Central Tax, North Division-3, Bengaluru.
Subsequently, the appeal filed by the Company was also rejected at Additional Commissioner of GST,
Appeals-II, Bengaluru. Further liability on GST RCM on transportation charges for the period from January
2021 to March 2024 is Rs. 319.51 lakhs which has not been discharged by the Company. No provision
has been made for the refund receivables as well as additional liability since the Company is legally
advised that the chances of favourable outcome are high. The Company has disclosed such amount as
“Contingent Liability”.
(viii) “Honourable Supreme Court, vide order dated February 13, 2003 had ordered for the appointment of an
Authorised Officer to quantify the commission due to the Company from Mysore Breweries (MBL) (MBL
was formerly known as SKOL Breweries and now is known as AB Inbev India Limited). The decision
of the Authorised Officer to pay Rs. 2,518.00 lakhs was disputed by MBL and the matter is subjudice.
The Company has preferred an appeal before the City Civil Court for recovery of the commission. MBL
has been ordered to deposit 60 % of decree amount within an outer limit of eight weeks from the date of
order and to furnish Bank Guarantee in the name of Registrar General, High Court of Karnataka for the
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balance amount. The Company has moved to HC for seizure. During the year, the Company has received
sum of Rs.3531.53 lakhs against the bank guarantee of Rs.3,525.00 lakhs issued in favour of High Court
of Karnataka. If the order of appeal goes against the Company, the Company will have to refund the entire
amount including interest at bank rate. Pending resolution, the Company has disclosed interest on such
fixed deposits of Rs. 308.77 lakhs as “”Contingent Liability””.”
Notes for Karnatak State Marketing Communication & Advertising Limited
(ix) The Company has preferred a Special Leave Petition before the Hon’ble Supreme Court [Civil Appeal No
(s). 9320/2010] against the Order of the Hon’ble High Court of Karnataka upholding the Labour
Court’s decision directing the reinstatement of an erstwhile employee late Mr.H S Hanumanthaiah with
25% back wages from 23-Jul-1984. During the year the Supreme Court of India vide order dated 12-Oct-
2017 has opined that there is no merit in the matter. In addition the appeal against the respondent was
abated. Consequently, the appeal stands dismissed as abated. The Company sought opinion from the
Advocate regarding further course of action to be taken by the Company as per the Order of the Hon’ble
Supreme Court of India. The Advocate has opined that the special leave petition has been disposed of
recording the fact that the respondent has died during the pendency of the appeal. If and when any claim
is made on his behalf, by his legal representatives or survivors, at the stage, further opinion may be sought
as to the course of action to be pursued in the matter. Till now, Company has not received any claim from
his legal representatives or survivors.
(x) The Company had debited Business Development Cost at 8% of its turnover from Financial year 1997-98
to 2003-04 against specific Government Orders [ Govt.Order No.CI29 CMI 2000[PUC]. However from
Finanicial year 2004-05 to 2020-21, no specific Government Orders were received by the Company and
hence the same was not provided. In the Financial year 2016-17, the Company has requested to the
Government of Karnataka [GOK] to consider Business Development Cost at 10% of the Net profit from
financial year 2002-03 to 2015-16 and the order from Goverment of Karnataka in awaited.
(xi) d) On 28.05.2019, Company received a Legal Notice from the Advocate V. B. Shivakumar on behalf his Client
M/s Monuments Advertisers Pvt., Ltd., for payment of Rs. 57.18 lakhs. In the said legal notice, a copy of the
Order dated 24.04.2019 of the Hon’ble High Court of Karnataka passed in Writ Petition No.478887/2018.
The said Writ Petition was filed by the Managing Director, M/s. Monuments Advertisers Pvt., Ltd., against
the State of Karnataka , The Managing Director, Karnataka Udyoga Mitra and the Managing Director,
Marketing Communications & Advertising limited for recovery of Rs. Rs. 57.18 lakhs. In the said Order, the
court has directed the company to consider and decide the claim of the Petitioner with regard to amount
of Rs.57.18 lakhs by speaking order within a period of two months from the date of receipt of the certified
copy of the order. But company did not receive the order either from the Court or the Government Advocate.
Further it is to bring to your kind notice that the company did not receive the court notice for appearance or
submission of objections. It is observed from the Order of the court that the Court felt that it is not necessary
to issue notice to respondent Karnataka Udyoga Mitra and Marketing Communications & Advertising
limited.The company has sent a reply to the Legal notice denying the liability until the payment is received
from Karnataka Udyoga Mitra as company did not issued the work order for execution of the said work.
Further a fresh case has been filed on the same set of facts but claim amount has been changed from
Rs. 57.18 Lakhs to Rs. 60.04 lakhs, which is pending before the Hon’ble High Court of Karnataka.
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(xii) During the FY 2019-20 Service Tax Audit was conducted by department of revenue. The audit was
conducted for the period October 2016 to June 2017. It has been determined during the course of audit by
the audit team that the company has not paid service tax on additional trade discounts / incentives received
from various publication houses. The total demand raised by the department in this regard is Rs. 79.12
lakhs. The Company is on Appeal in this matter and out of the total demand amount 10% i.e Rs. 7.91 lakhs
has been paid as deposit to the Appellate Authority during the FY 2020-21. The said amount is disclosed
under Other Current Assets.
40 Capital Commitment and Other Commitments
Particulars
31, 2024 31, 2023
(a) Capital commitments
Property, Plant & Equipment 187.79 160.08
(b) Other commitments

Commitment in respect of subscription for substituted chit 104.11 22.53
41 Other Notes
For Holding Company
(i) The Company had entered into Hire Purchase agreement with government employees (Hirers) for supply
of vehicles and consumer durables. The outstanding instalment dues including interest from the hirers is
shown under “stock with hirers”. Hire purchase business has been discontinued from July 2008.

(ii) Balances in the accounts of sundry creditors, sundry debtors, business associates including joint working
arrangements and advances/deposits are subject to confirmation and reconciliation. Consequential
impact of such reconciliation and confirmation, if any, on the net profit and on the assets/liabilities is not
ascertainable.
(iii) Government Grants/Incentive
The Company is claiming grant/incentive from Government agency-BPPI. During the financial year 2021-
2022, BPPI has changed the scheme of reimbursement linking to the purchases made in each Jan Aushadi
outlets from earlier scheme of linking to the expenditure towards fixed assets at the time of opening of a
new outlet. The Company made claim for 66 outlets and out of which for 17 outlets, the claims have been
rejected. For 13 outlets, the claim was not made. As at the end of year, an amount of Rs. 66.06 lakhs was
due under these claims and an equal amount provision has been made for the same. However, as per the
communication received from Janaushadi department, the Company has received the complete amount of
normal incentive and there are no outstanding receivable on account of such incentive.
(iv) With respect to Chit Fund Division “Amount Recoverable from Prized Subscribers” amounting to Rs.
31618.08 lakhs classified as “Loans under Financial Assets”, measured at amortized cost, carrying amount
in net of Rs. 1196.65 lakhs being the unreconciled balances. Consequential impact of such reconciliation
and confirmation, if any, on the profit and on the assets/liabilities is not ascertainable.
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(v) The Company had entered into a lease agreement with Mrs. Nagarathna for a property near Bangalore Air
Cargo Complex, Bangalore. The lease was renewed for a period of 5 years from 2003 to 2008. As there
was a delay in vacating the property, the Lessor had approached the Court for recovery of unpaid rent of
Rs. 43 lakhs and Interest at 18% of Rs. 16 lakhs (OS no.75/2014). The Hon’ble Additional Civil Judge,
Bangalore had passed an order dated June 24, 2019 against the Company for recovery of the unpaid rent
of Rs. 59 lakhs with the Interest at 18 % from November 15, 2011 to December 20, 2013. The Company
approached the Hon’ble HC, Karnataka and had obtained an interim stay on October 21, 2019. As per the
court orders, the Company has deposited Rs. 50 lakhs with HC (RFA 1704/2019). The matter is subjudice
in the High Court of Karnataka.
(vi) “The Company has entered into an agreement with M/s. Poseidon FZE, Dubai (Supplier) for import of river
sand in 2017. Till date it has imported 1,03,872.77 MT in 2 shipments (Oct 2017 and Jan 2018) and the
same was stored at Krishnapatnam Port in Andhra Pradesh. So far, the Company has sold 14,759 MT.
The Commissioner of Customs, Vijayawada had passed an order vide no: VJD-CUSTM-PRV-COM-003-20-21
dated 03 Dec 2020, demanding Rs.599 lakhs towards differential duty, redemption fine and penalty.
The Company has filed an appeal before CESTAT, Hyderabad for setting aside the order of the Commissioner
of Customs and the matter is sub-judice in CESTAT, Hyderabad. In this connection, the bank has submitted
Bank Guarantee of Rs. 11.80 lakhs. The Company hold sand measuring 6826 Tons belonging to the
Purchaser Ocean Agencies, out of the sale of 10000 MT.”
(vii) M/s. Pearl Ports and Warehousing Pvt Limited has entered into lease agreement with MSIL on March
28, 2018 for leasing 89,888 Sq. ft with 25% enhancement every three years, for a period of 15 years. The
agreement was modified by an addendum dated June 18, 2018. As the tenant was not paying dues as per
the lease agreement , the Company has served Lease Termination Notice on May 03, 2021. Further a Police
Complaint also lodged as the tenant has undertaken civil works without the permission of the Company.
The Company has filed a petition before Hon’ble HC of Karnataka for appointment of Sole Arbitrator and a
retired judge has been appointed as Sole Arbitrator on March 21, 2022. As at the year end, an amount of
Rs. 337.32 lakhs ( PY Rs. 279.53 lakhs) is due from the tenant. The Company is carrying provision of Rs.
137.24 lakhs (PY: Rs. 137.24 lakhs) against the same.
(viii) The Company has entered into a lease agreement dated September 27, 2018, for letting out its leased
property situated at Navi Mumbai (Karnataka Bhavan) with M/s. Athitheya Kshema Hotels Pvt Ltd for a
period of 15 years. The tenant was not paying dues as per lease agreement and as at the year end, an
amount of Rs. 1,006.03 lakhs (PY Rs. 759.18 lakhs) is due from the tenant and the Company is holding an
equivalent amount of provision.
(ix) The Company has received certain advances for the tours and travels services from Rajiv Gandhi University
of Health Sciences, (RGUHS) Karnataka. The Company has also made supplies to RGUHS in Papers
Division. Since disputes arose between the Company and RGUHS and with the corresponding service
providers, the receivables and payables accounts of RGUHS and service providers need to be reconciled.
The Company has made a provision for bad and doubtful advances to the extent of Rs. 200 lakhs in this
regard. The potential effect of the same on the financial statements is not ascertainable in the absence of
reconciliation statements.
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For Karnataka State Marketing Communication & Advertising Limited

(x) Regarding the misappropriation of funds by Mr. MS Patil, Branch Manager and the cases of
Sri. M S Patil v. Karnataka State Government (Ministry of Commerce and Industries) and Managing Director
of Karnataka State Marketing Communication & Advertising Limited [Case No. WP 202699/2022 and WP
No. 200418/2023]
(a) It was noted in Board Meeting dated June 18, 2019, regarding collection of receivables of Rs.39.29
lakhs by Mr.M.S.Patil, the then Branch Manager of Vijayapura from the various clients of the Company
being Public Works, Ports and Inland Water Transport Department, Vijayapura into an unauthorized
bank account. Accordingly, a FIR had been registered with the Jalanagar police station, Vijayapura on
30th May 2019. During the F.Y. 20-21, the said FIR was withdrawn consequent to the recovery of Rs.
39.29 lakhs from Mr. M.S. Patil. However, as per the decision of Board in its 270th Meeting held on
07.12.2022, Sri M.S.Patil, Branch Manager - Vijayapura was kept under suspension Vide Order No:
MCA/ADMIN/MD/24/2022-23 Dated:11.01.2023 on charges of misappropriation of company funds
to the tune of Rs.134.21 lakhs, forging of various official documents and so on. The misappropriated
amount of Rs.134.21 lakhs includes Rs. 39.29 Lakhs pertains to Public Works Port & Inland Water
Transport Department the same was disclosed in earlier years. The said amount of Rs. 39.29 Lakhs
has been remitted back to the company by Sri M.S.Patil. Departmental enquiry was initiated on the
charges mentioned above. The said Departmental Enquiry has been concluded on 30.12.2023. The
said Departmental enquiry confirms the misappropriation of Rs.134.21 lakhs. The Company is due to
take further action on the basis of the latest Departmental Enquiry.
(b) Sri. MS Patil had filed a Writ Petition bearing WP No. 202699/2022 against the Company challenging
the order issued for re-enquiry of the charges by the Company pertaining to the opening of unauthorized
bank account, misappropriation of amount and other charges. The Writ was disposed off by the Hon’ble
High of Karnataka, vide order dated 25.9.2023, ruling in favour of Mr. MS Patil quashing the order
issued for re-enquiry of charges. Appeal against the said order was not filed by the Company. Instead,
a fresh enquiry was initiated and the enquiry was concluded by the issue of report dated 30.12.2023,
wherein the charges of further misappropriation of funds to the tune of Rs. 94.92 lakhs have been
proved among other charges such as forgery.
(c) Additionally, Sri. MS Patil had filed a Writ Petition bearing WP No. 200418/2023 against the
Company challenging the order of suspension from the services of the Company. The Writ Petition has
been disposed off by the Hon’ble High Court of Karnataka, vide its order dated 4.6.2024, wherein the
petition by Mr. MS Patil has been dismissed, in favour of the Company.
(xi) Regarding the WP 10332/2022 in the case of M/s. Monuments Advertisers Limited v. Karnataka State
Government (Ministry of Commerce and Industries), Managing Director, Karnataka Udyog Mitra and
Managing Director of Karnataka State Marketing Communication & Advertising Limited.

As per the work order of the client, Karnataka Udyoga Mitra, the execution of work of GOK Chalet and
Exhibition Stall Fabrication of Aero India 2013 for Rs. 26.69 lakhs was executed by the Company through its
Business Associates M/s. Monuments Advertisers Limited. After completion of the work, M/s. Monuments
Advertisers Limited submitted the invoices. However, the client, Karnataka Udyoga Mitra raised certain
objections with respect to execution of work and sought clarification for the same. The said clarifications
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were provided, yet the payment was not released by the client. A Writ Petition has been filed by the Business
Associate bearing WP NO. 10332/2022. The Company holds the stand that since the Business Associate
agreement entered into between the Company and the Business Associate mentions that the payment will
be released only after receiving the payment from the client. The said Writ Petition is pending before the
Hon’ble High Court of Karnataka.
(xii) Regarding WP No. 21308/2022 in the case of 1) Invest Karnataka Forum 2)Karnataka State Marketing
Communication And Advertising Ltd v/s 1)BBP Studio Virtual Bharath Pvt Ltd 2) State Of Karnataka
Represented By Additional Chief Secretary, Ministry Of Commerce And Industry
(a) M/s. BBP Studio Virtual Bharat PVT LTD was issued work order by the Company for the work of
creating 3D animation film showcasing Karnataka during Global Investors Meet 2022 for Rs.389.40
lakhs. The Company had released an amount of Rs. 142.85 lakhs as the Client released the advance
payment. Subsequently, on 25.10.2022, the said work order was withdrawn by the Company as per
orders of the Client -Invest Karnataka Forum. Later, M/s. BBP Studio Virtual Bharat PVT LTD had filed
a case vide WP No. 21308/2022 for release of balance payment of 246.54 lakhs.
(b) The court on 25.01.2023 disposed the case and ordered as follows:
1) The Writ petition is allowed
2) The Impugned communication dated 25.10.2022 issued by the 3rd Respondent stands quashed
3) A mandamus issued to the 1st respondent/State to release balance payments due to the petitioner
in terms of its invoice dated 27.10.2022
4) The petitioner is at liberty to seek arbitration of any other disputes the remains unresolved apart from
what is considered in the case at hand.
(c) Subsequently, on 03.03.2023, a Review Petition no.104/2023 was filed by the Government and the
company against the order passed in the above Writ Petition. The said review petition has been
rejected by the Hon’ble High Court. M/s. BBP Studio Virtual Bharat PVT LTD filed Civil Contempt
petition No.495/2023 against the Government of Karnataka, the client – Invest Karnataka Forum
and the Company for not implementing the order passed in WP.No. 21308/2022. After hearing the
submission made by the Company, the Hon’ble Court has dropped the Contempt proceedings against
the company vide order dated 07.08.2023 as there is no specific order to the company to release the
payment.
(d) Subsequently, a Writ appeal has been filed against the Order passed in WP.No. 21308/2022 by client
the Invest Karnataka Forum and KSMC&A Company against the Business Associate M/s.BBP Studio
and the Govt. of Karnataka.
(e) Further, The Govt of Karnataka has also filed an appeal against the M/s BBP Studio, Invest
Karnataka Forum and KSMC&A Company (W A 1266/2023) challenging the Order passed in WP.No.
21308/2022.
(f) The judgment and order of learned Single Judge dated 25.01.2023 as well as the order dated 07.08.2023
passed in Review Petition No.104 of 2023 rejecting the review in W P No:21308/2022 are set aside.
Both the appeals are mentioned aforesaid in para (e) were allowed. The contempt application which
was filed against the impugned judgment is dismissed. The matter is referred to Arbitration.
205
CIN:U85110KA1966SGC001612
(xiii) Regarding Appeal No. 236/2014 in the case of KSMC&A v. Mr. SM Pasha pending before the Hon’ble High
Court of Karnataka
The Company had filed a case [O.S.No.8758 of 1996] against erstwhile employees Mr.S.M Pasha and
Mr.ANM Rao for the recovery of misappropriated amount in the financial year 1995-96 for Rs.28.11 lakhs
before City Civil Court, Bangalore. The recovery case was disposed on 09-July-2013. The Court decreed
the suit with cost against Mr.S.M.Pasha and dismissed the suit against Mr.ANM Rao. Thereafter, the
Company sought opinion from an advocate. The advocate opined that there are some grounds in the case
to challenge the judgement. Accordingly, an Appeal No. 236/2014 is filed and the same is pending before
Hon’ble High Court of Karnataka for disposal. During the year 1995-96, the disputed amounts were shown
as receivables and payables as misappropriation in the accounts of the Company and in the year 1996-97
an amount of Rs. 25.00 lakhs had been paid to the excise department and receivables has been charged
to Statement of Profit and Loss as bad debts. In the year 2008-09, misappropriated amount of Rs. 27.12
lakhs has been shown as receivables and payables as misappropriation in the accounts of the Company.
Due to contingency the receivables and payables has been adjusted and the contingent asset of Rs.28.11
lakhs will be recognized in Statement of Profit and Loss on realisation basis. The Appeal No. 236/2014 is
still pending before the Hon’ble High Court of Karnataka.
42 Segment Reporting
i Identification of Segments:
The chief operational decision maker monitors the operating results of its Business segment separately
for the purpose of making decision about resource allocation and performance assessment. Segment
performance is evaluated based on profit or loss and is measured consistently with profit or loss in the
financial statements. Operating segment have been identified on the basis of nature of products and other
quantitative criteria specified in the Ind AS 108. Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the group.
ii Operating Segments:
a) Paper division deals in both Note Books and Stationery
b) Sale of liquor is reported under Beverages Division
c) Marketing and Advertisement
d) Others include Chit Operations, Consumer & Pharmaceutical Products, Export & Import Operations,
Tours & Travels and Industrial Product Division.
iii Segment revenue and results:
Revenue and expenses directly attributable to segments are reported under each reportable segment. The
expenses and income which are not directly attributable to any business segment are shown as unallocable
expenditure (net of unallocable income). Unallocated expenditure consists of common expenditure incurred
for all the segments and expenses incurred at corporate level.
iv Segment assets and Liabilities:
“Assets and liabilities that are directly attributable or allocable to segments are disclosed under each
reportable segment. Segment assets include all operating assets used by the operating segment and
mainly consist of property, plant and equipments, trade receivables, Inventories and other operating
206
CIN:U85110KA1966SGC001612
assets. Segment liabilities primarily includes trade payable and other liabilities excluding borrowings.
Common assets and liabilities which can not be allocated to any of the business segment are shown as
unallocable assets / liabilities.”
v Inter Segment transfer:
“Inter Segment revenues are recognised at sales price. The same is based on market price and business
risks. Profit or loss on inter segment transfer are eliminated at the group level. The accounting policies of
the reportable segments are the same as the Group’s accounting policies described in note 3. The Group’s
financing (including finance costs and finance income) and income taxes are reviewed on an overall basis
and are not allocated to operating segments.”
vi Geographical segment:
Geographical segment is considered based on sales within India and rest of the world.
vii Summarised segment information:

For the year ended March 31, 2024
Marketing and
Particulars Paper Beverages Others Total
Advertisement
Segment Revenue
External customers 14,339.28 318,708.98 38,710.92 4,664.96 376,424.14
Inter-segment - - - - -
Total Enterprise Revenue 14,339.28 318,708.98 38,710.92 4,664.96 376,424.14
Segment Results
Segment Profit before tax and finance cost 1,002.13 12,295.10 2,550.85 -356.14 15,491.94
Less: Finance Cost (239.43)
Less: Tax Expense (3,721.69)
Net profit/(loss) after tax 1,002.13 12,295.10 2,550.85 -356.14 11,530.82
Segment Assets 10,349.42 21,214.92 46,412.67 88,880.43 166,857.44
Unallocated Assets - - - - -
Total Assets 10,349.42 21,214.92 46,412.67 88,880.43 166,857.44
Segment Liabilities 9,740.21 9,289.92 25,578.24 36,701.22 81,309.59
Unallocated Liabilities - - - - -
Total Liabilities 9,740.21 9,289.92 25,578.24 36,701.22 81,309.59
Depreciation and amortisation expense 5.90 826.73 70.68 1,114.31 2,017.62
Unallocated Depreciation and - - - - -
amortisation
Total Depreciation and amortisation 5.90 826.73 70.68 1,114.31 2,017.62
Capital Expenditure 1.31 628.26 92.31 86.48 808.36
Unallocated Capital Expenditure - - - - -
Total Capital Expenditure 1.31 628.26 92.31 86.48 808.36
207
CIN:U85110KA1966SGC001612
For the year ended March 31, 2023

Marketing and
Particulars Paper Beverages Others Total
Advertisement
Segment Revenue
External customers 9,984.71 266,072.84 57,914.37 6,449.70 340,421.62
Inter-segment -
Total Enterprise Revenue 9,984.71 266,072.84 57,914.37 6,449.70 340,421.62
Segment Results
Segment Profit before tax and 448.29 8,414.21 2,617.66 -109.25 11,370.91
finance cost
Less: Finance Cost (180.00)
Less: Tax Expense (2,763.66)
Net profit/(loss) after tax 448.29 8,414.21 2,617.66 -109.25 8,427.25
Segment Assets 5,190.92 18,335.85 42,727.60 75,112.51 141,366.88
Unallocated Assets -
Total Assets 5,190.92 18,335.85 42,727.60 75,112.51 141,366.88
Segment Liabilities 3,532.83 944.67 23,791.35 38,147.28 66,416.13
Unallocated Liabilities -
Total Liabilities 3,532.83 944.67 23,791.35 38,147.28 66,416.13
Depreciation and amortisation 2.11 1,153.56 70.31 678.77 1,904.75
expense
Unallocated Depreciation and - - - - -
amortisation
Total Depreciation and 2.11 1,153.56 70.31 678.77 1,904.75
amortisation
Capital Expenditure 3.33 1,824.72 5.30 437.88 2,271.23
Unallocated Capital Expenditure -
Total Capital Expenditure 3.33 1,824.72 5.30 437.88 2,271.23
Capital expenditure consists of additions to property, plant and equipment, intangible assets, investment
properties, capital work-in-progress and Right of Use assets.
Information about major customers:
Considering the nature of business of group in which it operates, the group deals with various customers
including multiple geographic. No single customer has accounted for more than 10% of the group’s total revenue
for the years ended March 31, 2024 and 2023.
208
CIN:U85110KA1966SGC001612
43 Other regulatory information required by Schedule III
a. Utilisation of borrowed funds
During the year ended March 31, 2024 and March 31, 2023, the Group has not advanced or loaned
or invested funds (either borrowed funds or share premium or kind of funds) to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or
otherwise) that the Intermediary shall:
or on behalf of the Group (Ultimate Beneficiaries) or
ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
Further, during the year ended March 31, 2024 and March 31, 2023, the Group 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 Group shall:
or on behalf of the Funding Party (Ultimate Beneficiaries) or
ii) provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.
b. Details of crypto currency or virtual currency
The Group has not invested or traded in Crypto Currency or Virtual Currency during the year ended March
31, 2024 (PY: Nil)
c. Details of benami property held
No proceedings have been initiated on or are pending against the Group for holding benami property under
the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder during the year ended
March 31, 2024 (PY: Nil).
d. Wilful Defaulter
The Group has not been declared Wilful Defaulter by any bank or financial institution or government or any
government authority during the year ended March 31, 2024 (PY: Nil).
e. Undisclosed Income
The Group has not surrendered or disclosed as income any transactions not recorded in the books of
accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961) during the year ended March 31, 2024 (PY: Nil).
f. Relationship with struck off companies
The Group does not have any transactions with the companies struck off under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31, 2024
except for the following: (PY: Nil).
209
CIN:U85110KA1966SGC001612
Name of the Struck off Company - Infrastructure Development Corporation Private Limited
Nature of Transaction: Customer
Balance Outstanding : Rs. 0.64 lakhs
g. Compliance with number of layers of companies
The Group has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on number of Layers) Rules, 2017.
h. Compliance with approved Scheme(s) of Arrangements
The Group has entered into an scheme of arrangement as disclosed in note 43. The accounting effect
of such scheme has been accounted for in the books of account of the Group in accordance with “the
Scheme” and Ind AS.
i. Valuation of Property, Plant and Equipment’s, right-of-use assets and intangible asset
The Group has not revalued its Property, Plant and equipment, right-of-use assets and intangible asset
during the current or previous year.
44A Reclassification of items in the Consolidated financial statements

The previous year figures have been reclassified to conform to the current year’s classifications, wherever
necessary.
A. For Balance Sheet Items:
Reclassification has been done because of following reasons:
1. Reclassification of items from Current to Non-current and vice-a-versa.
2. Reclassification of items from financial to non-financial category and vice-a-versa.
210
CIN:U85110KA1966SGC001612
As per
As per
previous
Sr. reclassified
Class of Item reclassified Note audited Adjustments
No. financials
financial
statements
statements
I ASSETS
Non-current assets
(i) Other financial assets 7 16,594.17 1,260.58 17,854.75
(ii) Non Current Bank Balances 12 76.80 4,170.72 4,247.52
(b) Other non-current assets 8 86.51 161.76 248.27
(c) Non Current tax asset (net) 8A - 4,139.85 4,139.85
Current assets
(i) Bank Balances 12 35,751.60 (4,170.71) 31,580.89
(ii) Other financial assets 7 14,292.61 (2,365.43) 11,927.18
(b) Other current assets 8 12,327.28 (2,726.27) 9,601.01
(c) Current tax asset (net) 468.55 (468.55) -
Equity
(a) Other equity 14 71,060.40 (346.51) 70,713.89
(b) Non controlling Interest (37.38) 0.76 (36.62)
Liabilities
(i) Borrowings 15A 175.00 (0.45) 174.55
(ii) Other Financial Liabilities 15C 18,469.86 (3,454.04) 15,015.82
(b) Provisions 16 1,643.02 (764.36) 878.66
Current liabilities
(a) Total outstanding dues other than 27,976.15 (1,452.29) 26,523.86
micro and small
(ii) Other financial liabilities 15C 9,924.10 5,113.75 15,037.85
(b) Other current liabilities 17 4,163.81 949.97 5,113.78
(c) Provisions 16 260.23 (44.90) 215.33
211
CIN:U85110KA1966SGC001612
B. For Statement of Profit and Loss Items:

Reclassification has been done because of following reason:
1. Reclassification of items from Other Income to Revenue from Operations.
As per previous As per reclassified
Sr.
Class of Item reclassified Note audited financial Adjustments financials
No.
statements statements
I Continuing operations
Revenue from operations 19 340,389.17 32.45 340,421.62
Other income 20 3,466.51 (32.52) 3,433.99
Employee benefits expense 25 2,408.35 10.96 2,419.31
Other expenses 28 21,325.73 (11.00) 21,314.73
44B Interest on Other Entities

Proportion of
Country Ownership of Interest
Sr
Name of Entities of In Activities As At As At
No.
corporation March 31, March 31,
2024 2023
1 Karnataka State Marketing India Marketing and 100.00% 100.00%
Communication & Advertising Advertisement
Limited
2 Mysore Chrome Tanning Company India Service Industry 95.18% 95.18%
Limited
Associate
3 Associate India Special 50.00% 50.00%
Purpose
Vehicle
212
CIN:U85110KA1966SGC001612
45 Additional information pursuant to para 2 of general instructions for the preparation of consolidated financial statements
Share in other Share in total
Name of the Entity Net Assets Share in profit and loss comprehensive comprehensive
income income
as % of as % of as % of as % of
consoli- consoli- consoli- consoli-
FY 2023-24 Amount Amount Amount Amount
dated net dated net dated net dated net
assets assets assets assets
Parent
Mysore Sales 77.11% 65,993.73 90.04% 10,386.37 99.68% 889.82 90.74% 11,276.19
Subsidiaries
Karnataka 23.94% 20,488.68 15.28% 1,762.69 0.32% 2.89 14.21% 1,765.58
State Marketing
Communication &
Advertising Limited
The Mysore Chrome -0.87% (741.20) 0.15% 17.57 - - 0.14% 17.57
Tanning Company
Limited
Associates
Investment in
Associates (Equity
Method)
Food Karnataka 0.48% 409.07 -0.05% (5.66) - - -0.05% (5.66)
Limited
Adjustment arising out of consolidation
Non Controlling -0.04% (35.73) 0.01% 0.89 - - 0.01% 0.89
Interest
Adjustments due -0.62% (530.97) -5.43% (627.06) - - -5.05% (627.06)
to consolidation
(Elimination)
Total 100.00% 85,583.58 100.00% 11,534.80 100.00% 892.71 100.00% 12,427.51
213
CIN:U85110KA1966SGC001612
Name of the Entity Net Assets Share in profit and Share in other Share in total
loss comprehensive income comprehensive income
as % of as % of as % of as % of
consoli- consoli- consoli- consoli-
FY 2023-24 Amount Amount Amount Amount
dated net dated net dated net dated net
assets assets assets assets
Parent
Mysore Sales 75.41% 56,545.42 72.15% 6,078.33 -46.72% 5.69 72.32% 6,084.02
Subsidiaries
Karnataka 26.27% 19,695.92 31.25% 2,632.54 146.72% (17.87) 31.08% 2,614.67
State Marketing
Communication &
Advertising Limited
The Mysore Chrome -1.01% (759.65) 0.04% 2.99 - - 0.04% 2.99
Tanning Company
Limited
Associate
Investment in Associates
(Equity Method)
Food Karnataka Limited 0.55% 414.73 -0.17% (14.28) - - -0.17% (14.28)
Adjustment arising out of consolidation
Non Controlling Interest -0.05% (36.62) 0.00% 0.14 - - 0.00% 0.14
Adjustments due -1.17% (872.43) -3.27% (274.58) - - -3.27% -274.58
to consolidation
(Elimination)
Total 100.00% 74,987.37 100.00% 8,425.14 100.00% (12.18) 100.00% 8,412.96
46 The Company evaluates events and transactions that occur subsequent to the balance sheet date but
prior to the approval of financial statements to determine the necessity for recognition and/or reporting of
subsequent events and transactions in the financial statements. As of September 10, 2024, there were no
subsequent events and transactions to be recognized or reported that are not already disclosed.
Sd/- Sd/-
Sd/-
DIN: 07745825 DIN: 09379177
PARTNER Sd/- Sd/-
214
Form No. MGT-11
Proxy Form
[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and
Administration) Rules, 2014]
CIN: U85110KA1966SGC001612
Name of the Company: Mysore Sales International Limited

Registered office: ‘MSIL House’, No.36, Cunningham Road, Bengaluru – 560 052
Name of the Member (s):
Registered address:
E-Mail ID:
Folio No/Client ID:
DP ID:
I/ We being the member of …………, holding…..shares, hereby appoint
1. Name: …………….
Address: …………….
E-mail Id: …………….
Signature: ……….., or failing him
2. Name: …………….
Address: …………….
E-mail Id: …………….
Signature: ………..,
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 58thAnnual General Meeting
of Mysore Sales International Limited, to be held on Monday, September 30, 2024, at 4.30 p.mat the Registered
office, MSIL House, No.36, Cunningham Road, Bengaluru - 560 052 and at any adjournment thereof in respect
of such resolutions as are indicated below:
Resolution No. 1 to 3
Affix
Signed this ….. day of…… 20…. Revenue
Stamp
Signature of Shareholder
Signature of Proxy holder(s)
Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office
of the Company, not less than 48 hours before the commencement of the AGM.
215
MSIL House, 36, Cunningham Road, Bengaluru– 560 052
ATTENDANCE SLIP
(58th Annual General Meeting of the Company to be held on September 30, 2024 at 4.30 p.m)
Name of the Shareholder: …………………………………………………………………………...........……….……
Regd. Folio No.: ……………………………………………………………………………………...........……………..
No. of Shares held: …………………………………………………………………………………...........…………….
Note: Shareholder / Proxy must hand over the duly signed attendance slip at the venue.
Signature of Shareholder / Proxy
58th Annual General Meeting of the Company to be held on September 30, 2024 at 4.30 p.m. at the
Registered Office, MSIL House, No.36, Cunningham Road, Bengaluru - 560 052.
ROUTE MAP
By order of the Board

For Mysore Sales International Limited
Sd/-
Sridevi B.N.
Company Secretary
216
CSR and Other Activites
217
CSR and Other Activites
218

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Mysore Sales International Limited

ANNEXURE TO DIRECTORS’ REPORT 15

FINANCIAL STATEMENT OF SUBSIDIARY 16

TEN YEARS PERFORMANCE 22

Ind AS STANDALONE ACCOUNTS FOR THE YEAR

CONSOLIDATED ACCOUNTS FOR THE YEAR

Sl. No. Name of the Director

Shri K.R. Avinash, KA&AS Chief Financial Officer

Smt. Sridevi B.N. Company Secretary

REGISTERED OFFICE : MSIL HOUSE, 36, CUNNINGHAM ROAD

SALES OFFICES / UNITS

BANKERS : Bank of Baroda, Canara Bank, State Bank of India,

AUDITORS : M/s. SORAB S. ENGINEER & CO., Chartered Accountants

Item No.2 – To declare a dividend on equity shares: By order of the Board

2. Corporate members intending to send their 6. 6. Members / proxies / authorized representatives

Notification No. CI 02 CMI 2024(E) dated 12.01.2024, As on the date of report

Our report of even date is to be read along with this letter:

The chit fund division maintains data in different software

Based on our test checking and the information and

Audit Query Company’s Reply

For and on behalf of the

See accompanying notes forming part of the Standalone Financial Statements

Year ended Year ended

Profit before tax from continuing operations 13,301.94 8,079.28

Profit for the year 10,386.36 6,087.18

Re-measurement gains/ (losses) on defined benefit plans 31 1.16 26.61

Total comprehensive income for the year 11,276.18 6,092.87

Earnings per share (Nominal Value per share Rs. 100/-) 32

-Earnings per share for discontinued operations

-Earnings per share for continuing and discontinued

Significant accounting policies

B. Cash flow from investing activities

Reconciliation of cash and cash equivalents

See accompanying notes forming part of the Standalone Financial Statements

Particulars of liabilities arising from financing activity Other changes As at March

Reserves and Surplus (Note 14)

Company as a lessee The Company applies Ind AS 36 to determine

Impairment of financial assets Reclassification

Financial liabilities and equity instruments Equity instruments

Classification as debt or equity An equity instrument is any contract that evidences

Financial liabilities A financial guarantee contract is a contract that

The criteria for held for sale classification is

Upon distribution of non-cash assets, any • An active programme to locate a buyer

• The sale is expected to qualify for recognition w. Segment Reporting

Freehold Leasehold Building - Handling Electrical Furniture Office

Net Carrying Amount

Particulars Capital work in progress Total

a. Capital work-in-progress ageing schedule:

As at March 31, 2023

As at March 31, 2023

Information regarding income and expenditure of Investment property

5 Other intangible assets

As at March 31, 2024 3.53 3.53

5A. Right of Use Assets

Net carrying value as at March 31, 2024 1,146.31

B. Subsidiaries - Measured at Cost (Unquoted)

C. Others-Measured at Fair Value through Other Comprehensive Income (Unquoted)

7 Other Financial Assets

13 Equity share capital

As at March 31, 2024 As at March 31, 2023