K P R Mill Ltd:Annual Report 2023-24 Analysis

K.P.R. Mill Ltd.: A Comprehensive Overview #

About the Company #

Year of Establishment and Founding History #

K.P.R. Mill Ltd. was established in 1984 by K.P. Ramasamy Naidu.

Headquarters Location and Global Presence #

The company’s headquarters is located in Coimbatore, Tamil Nadu, India. K.P.R. Mill has a significant presence in the global textile market, exporting to various countries.

Company Vision and Mission #

• Vision: To be a global leader in the textile industry, known for its quality, innovation, and sustainability.
• Mission: To deliver value to stakeholders through operational excellence, ethical business practices, and responsible environmental stewardship.

Key Milestones in Their Growth Journey #

• Early years focused on spinning and knitting.
• Expansion into garmenting, sugar production, and ethanol.
• Significant investments in renewable energy sources, particularly wind and solar power.
• Strategic acquisitions to enhance production capacity and market reach.

Stock Exchange Listing Details and Market Capitalization #

K.P.R. Mill is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). (Please check current market capitalization on a reliable financial source).

Recent Financial Performance Highlights #

(Insert Key financial data and growth metrics from the recent annual reports here)

Management Team and Leadership Structure #

• K.P. Ramasamy: Chairman
• P. Nataraj: Managing Director

The company has a well-defined organizational structure with experienced professionals heading various departments.

Any Notable Awards or Recognitions #

K.P.R. Mill has received awards and recognition for its export performance, quality, and sustainability initiatives from various organizations including Texprocil, Apparel Export Promotion Council, and others.

Their Products #

Complete Product Portfolio with Categories #

• Yarn: Combed, Carded, Compact, Slub, Core Spun, and Melange Yarns.
• Knitted Fabrics: Single Jersey, Interlock, Rib, Fleece, Pique, and Jacquard fabrics.
• Garments: Men’s wear, Women’s wear, and Kid’s wear (T-shirts, Polo shirts, Casual wear, and Active wear).
• Sugar: Refined Sugar.
• Ethanol: Fuel-grade Ethanol.
• Power: Generation through windmills and solar power.

Flagship or Signature Product Lines #

Garments & Knitted Fabrics are key focus areas.

Key Technological Innovations or Patents #

K.P.R. Mill invests in modern machinery and technologies to enhance production efficiency and product quality. They have adopted technologies like automation and advanced dyeing techniques.

Manufacturing Facilities and Production Capacity #

• Spinning Mills: Multiple units with a large number of spindles.
• Knitting Units: Equipped with advanced knitting machines.
• Garment Units: State-of-the-art garment manufacturing facilities.
• Sugar Mill: Integrated sugar manufacturing unit.
• Ethanol Plant: Ethanol production facility.

(Insert production capacities for each category - check annual report)

Quality Certifications and Standards #

K.P.R. Mill holds various quality certifications like ISO 9001, ISO 14001, Oeko-Tex, GOTS, and other relevant industry standards.

Any Unique Selling Propositions or Technological Advantages #

• Vertically integrated operations, providing control over the entire supply chain.
• Focus on sustainable practices and eco-friendly manufacturing processes.
• Wide range of product offerings catering to diverse customer needs.

Recent Product Launches or R&D Initiatives #

(Details about recent launches or R&D can be added here)

Primary Customers #

Target Industries and Sectors #

• Apparel manufacturers
• Retailers
• Export houses
• Food and beverage industry (sugar)
• Fuel industry (ethanol)

Geographic Markets (Domestic vs. International) #

K.P.R. Mill caters to both domestic and international markets.

Distribution Network and Sales Channels #

The company utilizes a mix of direct sales, agents, and distributors to reach its customers.

Major Competitors #

Direct Competitors in India and Globally #

• India: Arvind Ltd., Welspun India, Vardhman Textiles, Trident Ltd.
• Globally: (List depends on specific product category. Research required).

Comparative Market Share Analysis #

(Information not easily available. Market research reports required)

Competitive Advantages and Disadvantages #

• Advantages: Vertically integrated operations, cost competitiveness, focus on sustainability.
• Disadvantages: Dependence on raw material prices (cotton), fluctuations in demand.

How They Differentiate from Competitors #

Emphasis on ethical sourcing, environmental responsibility, and a commitment to quality distinguishes them.

Future Outlook #

Expansion Plans or Growth Strategy #

K.P.R. Mill is expected to continue investing in capacity expansion, technological upgrades, and diversification into value-added products.

Sustainability Initiatives or ESG Commitments #

• Increased use of renewable energy sources.
• Water conservation efforts.
• Waste management programs.
• Ethical labor practices.

Industry Trends Affecting Their Business #

• Growing demand for sustainable and eco-friendly textiles.
• Increasing automation in the textile industry.
• Rising cotton prices.
• Geopolitical risks and trade policies.

Long-Term Vision and Strategic Goals #

To strengthen its position as a leading global textile manufacturer, driven by innovation, sustainability, and customer satisfaction.

Performance Overview #

3-Year Trend Analysis of Key Financial Metrics #

• Revenue: Consolidated revenue decreased from ₹6,24,820 lakhs in 2022-23 to ₹6,12,694 lakhs in 2023-24.
• Profit Before Tax (PBT): PBT decreased from ₹1,08,416 lakhs in 2022-23 to ₹1,04,039 lakhs in 2023-24.
• Profit After Tax (PAT): PAT decreased from ₹81,410 lakhs in 2022-23 to ₹80,535 lakhs in 2023-24.
• Earnings Per Share (EPS): Basic and diluted EPS decreased from ₹23.81 in 2022-23 to ₹23.56 in 2023-24.
• Net Debt to Equity Ratio: Improved from 0.17 as of March 31, 2023, to 0.08 as of March 31, 2024.
• Return on Equity Ratio: decreased from 22.66% in 2022-2023 to 17.49% in 2023-24.

Business Segment Performance (2023-24) #

• The Textile segment accounted for a major part of the revenue.

Major Strategic Initiatives and Their Progress #

• Expansion and Modernization: Implemented expansions, including a new vortex spinning mill, roof-top solar power plant, and modernization of the spinning division.

Risk Landscape Changes #

• Raw Material Price Volatility: The year under review has witnessed multi-year low margins in yarn prices.
• Market Risks/Industry Risks: The Group has identified several risk factors affecting its operations such as fluctuation in cotton prices, dent in yarn margins, diminishing demand, capacity under utilization and dumping of imported fabrics and garments from China and Bangladesh.
• Logistics Risk: Inadequate roads, railways and ports as well as poor storage facilities, may lead to delays in the transportation of raw materials and finished goods.
• Cyber Risk and security: The growing incidents of cyber threats have emphasized the importance of robust cybersecurity measures.

ESG Initiatives and Metrics #

• Environmental: Focus on renewable energy (wind and solar power) catering to 75% of power needs, water conservation, zero liquid discharge system, and sustainable cotton sourcing (BCI, Organic, CMIA, PSCP).
• Social: Employee welfare programs, including education and career placement services, are provided. Women represent 90% of the workforce.
• Governance: Adherence to Corporate Governance requirements under SEBI regulations.

Management Outlook #

• The management anticipates a rebound in the Indian Textile Industry due to improved domestic demand, lower cotton prices, and gradual export recovery.
• The Company is optimistic about future growth, driven by the Group’s strong fundamentals, high competence, challenging ability, Modernisation and Expansions implemented.

Detailed Analysis #

Financial Position Analysis #

3-Year Comparative Analysis of Assets, Liabilities, and Equity (Consolidated) #

(₹ in Lakhs)

Significant Changes in Major Line Items (>10% YoY) #

(₹ in Lakhs)

Working Capital Trends #

(₹ in Lakhs)

Analysis: The Group’s working capital has increased, signifying improved liquidity. The current ratio also improved, moving from 2.25 to 2.89.

Asset Quality Metrics #

Impairment Loss on financial assets 2023-24 : 203 lakhs, 2022-23: 182 lakhs.

Debt Structure and Maturity Profile (Consolidated) #

(₹ in Lakhs)

Analysis: Interest Rate of working capital ranges from 7.65% to 9.80%.

Maturity Profile: The consolidated financials indicate a reduction in both non-current and current borrowings.

Off-Balance Sheet Items #

(₹ in Lakhs)

The company has various off-balance sheet exposures including bank guarantees and letter of credit. The export obligation has significantly decreased, while discounted sales invoices have increased slightly.

Industry Benchmark Comparisons #

Due to the lack of precise industry benchmark data, a precise comparison isn’t possible. However, a qualitative comparative analysis can be given as:

• Leverage: A debt-to-equity ratio of 0.08 is very low for a manufacturing business suggesting a highly conservative capital structure that may be underleveraged compared to industry standards.
• Current Ratio: A current ratio of 2.89 is generally considered a healthy ratio and above the typical benchmark of 2.0 for manufacturing industries.
• Profit Margins: The net profit margin will need to be compared against textile industry peers to see how efficiency and cost management.
• CSR Spend: A CSR spend of ₹1590 lakhs has been noted as part of the obligation.
• CSR Pre-spent:CSR Pre-spent balance shows that the Group is proactive in fulfilling social responsibility.

K.P.R. Mill Limited Financial Analysis (2023-24) #

Revenue Breakdown #

Segment Revenue (2023-24) #

• Textile: ₹4,71,379 Lakhs
• Sugar: ₹1,22,621 Lakhs
• Others: ₹12,014 Lakhs
• Inter-segment revenue : 46 Lakhs

Segment Revenue Growth (YoY) #

• Textiles: Down by 3.67%
• Sugar: Up by 4%
• Others: Up by 5.83%

Geographic Revenue (2023-24) #

• Domestic: ₹3,57,243 Lakhs
• Exports: ₹2,25,145 Lakhs

Geographic Revenue Growth (YoY) #

• Domestic: Decreased by 3.34%
• Exports: Decreased by 0.56%

Export Revenue by Region (2023-24) #

• Europe: ₹1,33,997 Lakhs
• USA: ₹42,327 Lakhs
• Australia: ₹36,038 Lakhs
• Others: ₹12,783 Lakhs

Export Revenue by Region Growth (YoY) #

• Europe: Down by 2.6%
• USA: Down by 4.2%
• Australia: Up by 15%
• Other: Down by 3.6%

Cost Structure Analysis #

• Cost of Materials Consumed (2023-24): ₹3,47,815 Lakhs (56.76% of total revenue)
• Employee Benefits Expense: ₹60,058 Lakhs (YoY increase)
• Power and Fuel: ₹24,361 Lakhs
• Depreciation and Amortization: ₹18,919 Lakhs

Margin Analysis (Consolidated) #

• Net Profit Margin (2023-24): 13.14% (₹80,535 Lakhs profit on ₹6,12,694 Lakhs revenue) - Slightly down from last year’s 13.40%.

Non-Recurring Items #

• Gain on sale of property, plant, and equipment: ₹586 Lakhs
• Provision for Impairment: ₹275 Lakhs

EPS Analysis #

• Basic and Diluted EPS (2023-24): ₹23.56
• Basic and Diluted EPS (2022-23): ₹23.81
• EPS has fallen by ₹0.25

Cash Management #

Cash Flow and Liquidity Analysis #

OCF, ICF, FCF Components (Consolidated, in Lakhs) #

• OCF: FY 2023-24: 67,794; FY 2022-23: 29,868. Increased due to higher profit before working capital changes and better management.
• ICF: FY 2023-24: (29,411); FY 2022-23: (10,508). Increased net cash outflow primarily because of higher Capital Expenditure.
• FCF: FY 2023-2024: 38,383, FY 2022-23: 19,360. Increased due to increase in operating cash flow.

Working Capital Management Efficiency #

• Inventory Turnover Ratio: FY 2023-24: 3.38; FY 2022-23: 4.55. Decreased, indicating a slowdown in inventory movement.
• Trade Receivables Turnover Ratio: FY 2023-24: 7.77; FY 2022-23: 10.42. Decreased, suggesting potential lengthening of the collection period. Overall working capital increased during the reported period.

Dividend and Share Buyback Trends #

• Dividends:
  • FY 2023-24: Interim dividend of ₹8,545 lakhs, final dividend of ₹6,836 lakhs (Proposed). 500% dividend declared for FY 2023-2024.
  • FY 2022-23: Interim dividend of ₹6,836 lakhs, and a Final Dividend of ₹513 lakhs.
  • Dividend payments are showing fluctuations with a significant payment for FY23.
• Share Buyback:
  • FY 2023-24: No buyback.
  • FY 2022-23: Buyback of equity shares, with an amount of ₹18,001 and income tax of ₹4,076. Indicates a past strategy of returning capital to shareholders, not repeated in the current year.

Debt Service Coverage #

• Debt Service Coverage Ratio: FY 2023-24: 1,782.14; FY 2022-23: 14,787.60. Significantly decreased due to high debt.

Liquidity Position and Cash Conversion Cycle #

• Current Ratio: FY 2023-2024: 4.31, FY 2022-2023: 2.45
• Cash and Cash Equivalents: Increased to ₹7,513 lakhs in FY 2023-24 from ₹10,858 lakhs in FY 2022-23.
• Cash Conversion Cycle: Not directly calculable from the provided data, but can be inferred from the changes in inventory and receivables turnover ratios. Likely increased due to slower inventory turnover and potentially slower collections.

Strategic and Management Analysis of K.P.R. Mill Limited #

Long-Term Strategic Goals and Progress #

• The Group is furthering its objective of power self-sufficiency via increased renewable energy generation, indicated by the establishment of a 37 MW solar power plant.
• An exclusive vortex spinning mill has been established.

Competitive Advantages and Market Positioning #

• The Group is a vertically integrated apparel manufacturing company, which is a source of competitive strength.
• The “FASO” brand has gained an initial market presence and shows the company trying to move up the value chain.
• KPR Mill is sustaining growth levels even in a challenging environment, attributed to intangible assets like organizational structure, culture, principles.

Innovation Initiatives and R&D Effectiveness #

• KPR Mill has invested in advanced technology, including cold processing technology that reduced water consumption by 30% and eliminates salt usage, as well as a Sophisticated Printing Division.
• Modernization of the Spinning Division with investment of ‘150 crore to improve quality.

Management’s Track Record in Execution #

• Management successfully completed the expansion of Ethanol production capacity of 240 KLPD with Zero Liquid Discharge System.
• Management declared an aggregate dividend of 500% to the shareholders in FY 2024.
• The provided data indicates that Management declared dividend to shareholders every year.

Capital Allocation Strategy #

• The company has made significant investments in renewable energy.
• The Group is using both debt and equity for capital allocation.
• The board declared an interim dividend of 250%, indicating the Group prioritzies returns to shareholders.

Organizational Changes and Their Impact #

• The company appointed four new Independent Directors, effective April 1, 2024, to comply with regulations and refresh board expertise.
• The company ceased four Independent Directors effective March 31, 2024, due to finishing two terms of five years.

ESG Framework #

Environmental Metrics and Targets #

• Implemented a Zero Liquid Discharge system.
• Consumed 421.02 TJ of energy from renewable sources and 1,320.83 TJ from non-renewable sources, resulting in an energy intensity of 0.04091 TJ per INR million of turnover.
• Total water withdrawal was 18,42,246.63 kiloliters, with consumption matching withdrawal amounts.
• GHG emissions included 59,833.96 metric tonnes of CO2 equivalent for Scope 1 and 1,61,703.12 metric tonnes for Scope 2, with an intensity of 5.203 metric tonnes per INR million of turnover.
• Generated 1,828.40 metric tons of total waste.
• Implemented projects related to reducing greenhouse gas emissions.

Social Responsibility Programs #

• CSR expenditure was ’ 1590 Lakhs, representing 2.02% of the average three years’ net profit.
• CSR activities primarily focused on the ‘Promotion of Education,’ benefiting approximately 9,000 individuals.
• Spent 60.83 % on wellness of employees.
• Engaged with stakeholders including investors, employees, suppliers, customers, community, and government/regulators.
• Implemented measures to protect whistleblowers from retaliation, including a Whistle Blower Policy.

Governance Structure and Effectiveness #

• The Board of Directors consists of twelve members, comprising one Executive Chairman, five Executive Directors, and six Independent Directors (including two women), ensuring 50% independent representation.
• Established committees: Audit, Stakeholders Relationship, Nomination and Remuneration, Corporate Social Responsibility (CSR), and Risk Management.
• Uses an internal financial control system, reviewed annually by the Audit Committee.
• Established Vigil Mechanism and Whistle Blower Policy.
• The Nomination & Remuneration Policy aligns remuneration with the long-term interests of the company.

Sustainability Investments and ROI #

• Invested ’ 100 Crores in establishing an exclusive vortex spinning mill.
• Invested an additional ’ 100 Crores in Roof-top Solar Power Plants, increasing total Solar Power capacity to 37 MW.
• Invested ’ 150 Crores in modernizing the Spinning Division.
• 30% of R&D investments were in specific technologies to improve environmental and social impacts.
• 25% of Capex investments went into specific technologies to improve environmental and social impacts.

ESG Ratings and Peer Comparison #

• Ranked among the top 100 of the ‘India’s Top Richest’ in terms of net worth.
• Continuing its No.2 position in ‘Indian Textile and Apparel Sector’ based on Market Capitalization in BSE & NSE.

Regulatory Compliance and Future Preparations #

• Complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI).
• There were no penalties or strictures imposed by stock exchanges, SEBI, or any statutory authority on matters related to capital markets.
• Made provisions for the cost of restoring the environment through the establishment of ZLD.
• Operations and activities aligned with relevant regulations such as the Companies Act, 2013, and SEBI regulations.

Segment-Wise Financial Analysis: K.P.R. Mill Limited #

Management Guidance and Assumptions #

• Management’s overall assessment is based on the business model, where it is assumed control over goods transfers upon shipment, delivery, or customer receipt.
• Management assumes the credit risk on financial assets has significantly increased if overdue.
• Management believes that unimpaired amounts past due by more than 90 days are still collectible.
• Management expects historical trends of minimal credit losses on trade receivables to continue, given no substantial change in macroeconomic indicators.
• Management assumes that there has been the implementation of unit-wise occupational health and safety management system.
• Management has committed to a consistent dividend payout, evidenced by the declaration of both interim and final dividends, maintaining shareholder returns even amid market fluctuations.
• Assumed a stable regulatory environment with no disruptive policy changes.

Market Growth Forecasts #

• Indian Textile Industry: Expectation of rebound in the current year is based on improvement in domestic demand, lower cotton prices, and gradual recovery in exports.
• The domestic market is witnessing a steady growth. Demand for garments from India from western markets is anticipated to improve the textiles sector’s performance.
• Ethanol Market in India: Forecasts for the Indian ethanol market project substantial growth between 2023 and 2029, with an anticipated value of USD 4.15 billion and a CAGR of 9.16%.
• Global Textile Market: Anticipated to rise considerably due to increased global population, urbanization, e-commerce expansion, increased spending on leisure, growing retail sector, and increased internet accessibility.

Planned Strategic Initiatives #

• Consolidation of garment business for effective management.
• Ethiopia operations: Close the apparel manufacturing unit in Ethiopia due to civil disturbance and retrieve capital materials.
• Singapore Operations: Applied for a strike off of KPR Mill Pte. Ltd. with Singapore authorities due to the closure of Ethiopian operations.
• Focus on innovations in textile development processes and products for the future.

Capital Expenditure Plans #

• Establishment of an exclusive vortex spinning mill with an outlay of ₹100 Crores.
• Additional investment of ₹100 Crores in Roof-top Solar Power Plant, increasing solar power capacity to 37 MW.
• Modernization of the Spinning Division with a total outlay of ₹150 Crores.
• Ethanol production capacity expansion of 240 KLPD with Zero Liquid Discharge System completed.

Efficiency Improvement Targets #

• Optimization of power consumption through replacement of existing motors and pumps with high-efficiency IE3 to IE5 standard motors and Variable Frequency Drives (VFDs).
• Reduction of power consumption by installing Power Monitoring equipment.
• Implementation of advanced cold processing technology at the new processing unit, reducing water consumption by 30% and eliminating salt usage.
• Continued focus on achieving “Zero Liquid Discharge” (ZLD) at the processing division.

Potential Challenges and Opportunities #

• Challenges:

  • Fluctuations in cotton prices and their impact on yarn realization and margins.
  • Increased energy costs and potential disruptions in the supply chain.
  • Competition from neighboring countries.
  • Logistics risks, including inadequate infrastructure.
  • Labor shortage, particularly skilled labor.
  • Cyber security threats.
  • Risk related to raw material, Market Risks/Industry Risks, Logistic risks, and political risk.

• Opportunities:

  • Rebounding of the Indian textile industry due to improved revenue growth, operating margins, and recovery in exports.
  • Growth in the global cotton yarn market due to the growth of the textile industry, the preference for natural fibers, trends in global cotton production, innovations in cotton yarn, and the increased affordability and accessibility of textile materials.
  • Growing demand in the apparel sector for casual and sportswear, benefiting knitted fabrics.
  • Increased demand for biofuel and ethanol in India.
  • FTAs: The Free Trade Agreements may reduce tariff and improve the benefits for textile exporters.

Scenario Analysis and Sensitivity to Key Assumptions #

• Cotton Price Volatility: If cotton prices increase significantly more than anticipated, profit margins in the yarn segment could be further compressed.
• Sensitivity: A 1% change (increase/decrease) in the average interest rates affects profit before tax by approximately ₹287 lakhs.
• Sensitivity: Every 1% strengthening/weakening of INR against uncovered foreign currencies impacts profit before tax. (USD: ₹308 lakhs, Euro: ₹59 lakhs, GBP: ₹44 lakhs).
• Sensitivity: The impairment loss at the reporting dates related to customers that have defaulted on their payments to the Company are not expected to be able to pay their outstanding dues.
• Sensitivity: A 1% increase in price, profit before tax would be impacted by a gain of approximately ’ 32 lakhs.
• Sensitivity: For every 1% increase in average interest rates, profit before tax would be impacted by a loss of approximately ₹ 1,158 lakhs,
• Debt and Equity Risk: The Company is managing it’s debt. The debt-to-equity ratio shows a decrease compared to the previous year.

Audit and Compliance Analysis #

Auditor’s Opinion and Qualifications #

• The auditors issued an unmodified opinion on the consolidated financial statements, indicating a true and fair view in conformity with generally accepted accounting principles in India.
• The auditors noted that the feature of recording audit trail (edit log) facility has not been enabled in accounting software.
• The auditors relied on the reports of other auditors for seven subsidiaries.

Key Accounting Policies and Changes #

• The financial statements were prepared under the historical cost basis, with exceptions for certain items measured at fair value.
• Revenue recognition occurs upon transfer of control of goods or services to the customer.
• Inventories are valued at the lower of cost and net realizable value.
• Depreciation is calculated on the straight-line method over the estimated useful lives of assets.
• The Group uses derivative financial instruments such as forward contracts to mitigate the risk of changes in foreign exchange rates.
• No new or amended accounting standards significantly impacted the Group during the reporting periods.

Internal Control Effectiveness #

• The auditors expressed an opinion that the Company has adequate internal financial controls over financial reporting, and these controls were operating effectively.

Regulatory Compliance Status #

• The Company complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 regarding investments, loans, guarantees, and security.
• The Company and its subsidiaries incorporated in India were reported to have adequate internal financial control system.
• Statutory dues, including GST, Provident Fund, and Employee State Insurance, were regularly deposited with appropriate authorities.
• There were no funds advanced, loaned, or invested with the understanding to circumvent legal/regulatory requirements, as described by Rule 11(e) of the Companies (Audit and Auditors) Rules, 2014.

Legal Proceedings and Potential Impact #

• Pending litigations exist, with disclosures made in Note 36 of the consolidated financial statements.
• No proceedings were initiated or pending against the Company for holding any benami property.
• The Company has not been declared a willful defaulter.

Related Party Transactions #

• Transactions with related parties (subsidiaries) occurred, and details are provided in Note 40.
• All related party transactions were claimed to be conducted on arm’s length basis.
• Transactions with related parties, including purchases, sales, lease rentals, and dividends, were disclosed.

Subsequent Events #

• The Board of Directors recommended a final dividend of ₹8,545 lakhs (₹2.50 per share) for the year 2023-24, subject to shareholder approval.

Analysis of Accounting Quality #

• The application of historical cost accounting, except for specific items, is consistent with the prescribed.
• The disclosure of accounting policies is comprehensive, covering various aspects of financial reporting.
• The impairment of loans was made.
• The impairment assessments for investments in subsidiaries (KPR Exports PLC, Ethiopia, and KPR Mill Pte. Ltd, Singapore) suggest proactive asset valuation adjustments.

Regulatory Risk Assessment #

• The Group has not faced any material non-compliance regarding maintenance of cost records during the year.
• The Company had no overdue amounts payable under the Micro, Small and Medium Enterprises Development Act, 2006.
• The reliance on legal advice for contingent liabilities indicates a proactive approach to legal risk management.