2.16 Provisions and contingencies
Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. Expected future operating losses are
not provided for. Where the Company expects some or all of the expenditure required to settle a provision
will be reimbursed by another party, the reimbursement is recognised when and only when it is virtually
certain that reimbursement will be received if the entity settles the obligation.

Contingencies

Contingent liabilities are not recognized but are disclosed in notes. Contingent assets are neither recognized
nor disclosed in the financial statements.

2.17 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of equity shares outstanding during the year are
adjusted for the effects of all potential equity shares.

2.18 Accounting Policy, Change in Accounting Estimates and Error

If the Material error occurred before the earliest prior period presented then entity shall correct the same
retrospectively in the first set of financial statement approved for issue after the discovery after restating
the opening balance of assets, Liabilities and equity for the earliest prior period presented.

2.19 Segment Reporting

Operating segments are reported in a manner consistent with the internal reposting provided to the chief
Operating Decision Maker (“CODM”)

2.20 Dividend to Shareholders

Final dividend distributed to equity shareholders is recognized in the period in which it is approved by the
members of the Company in the Annual General Meeting. Interim dividend is recognized when approved by
the Board of Directors at the Board meeting. Dividend distributed (including interim dividend) is recognized
in the Statement of changes in Equity.

2.21 Investments in Subsidiaries and Associates

Investments in subsidiaries and associates are carried at cost less accumulated impairment losses., if any.
Where an indication of impairment exists, the carrying amount of the investment is assessed and written
down immediately to its recoverable amount. On disposal of investments in subsidiaries and associates, the
difference between net disposal proceeds and the carrying amounts are recognised in the Statement of Profit
and Loss.

2.22 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be complied with.
When the grant relates to revenue, it is recognised in the statement of profit and loss on a systematic basis
over the periods to which they relate. When the grant relates to an asset, it is treated as deferred income and
recognised in the statement of profit and loss on a systematic basis over the useful life of the asset.

Acquisition of Parveen Roadways

The Company has acquired Parveen Roadways, a sole proprietorship firm engaged in logistics and railway-related
services, for a consideration of '24.04 crores (Paid as an advance on 28/03/2025) through a business transfer
agreement dated 8th April 2025. The business includes over 100 vehicles (such as tippers, trailers, buses, and
forklifts) and a workforce of approximately 500 employees. Major clients include Integral Coach Factory, Southern
Railways, Port Trusts, and Aavin Milk Factory.

Strategic Investment in Phoenix Kothari Footwear Limited (PKFL)

The Company has entered into an agreement to acquire 30% equity stake in Phoenix Kothari Footwear Limited (PKFL)
from Mr. Rafiq Ahmed for a total consideration of '9906 lakhs. PKFL is a reputed contract manufacturer for global
footwear brands such as CROCS and Adidas. This strategic investment is aimed at strengthening KICL’s global
supply chain presence and supporting PKFLs growth and innovation initiatives in the footwear sector. Advance of Rs
7000 lakhs was given during the year for this purpose. As the transaction had not been concluded by the reporting
date, no adjustments have been made in the financial statements in respect of the proposed acquisition as at 31st
March 2025.

32. Employee Benefit Obligations

(a) Defined Contribution Plan

The Company makes provident fund contributions to the fund maintained with the office of Regional Provident Fund
Commissioner. The company has recognized Rs. 29,63,977/- (Previous year Rs. 40,17,763/-) in the Statement of Profit
and Loss under ‘Contribution to provident and other funds'.

(b) Defined Benefit Plan

The Company has a gratuity benefit plan applicable to all employees. Employees are eligible for gratuity as per the provisions
of the Payment of Gratuity Act, 1972, with a vesting period of five years of service, on resignation, retirement or death.

The following tables summarize the components of the net benefit expenses recognized in the Statement of Profit and Loss
and the unfunded status and amounts recognized in the balance sheet for the gratuity benefit plan.

Note : Refer Note No.14 for Provisions

IND AS 19 - Employee Benefits: The Company has made the following disclosures as per IND AS 19:

Investment Risk: The present value of the defined benefit obligation is calculated using a discount rate determined
by reference to market yields on government bonds at the end of the reporting period.

Interest Rate Risk: A decrease in the bond interest rate will increase the plan liability.

Salary Risk: Higher-than-expected salary increases will increase the defined benefit obligation.

Longevity Risk: The present value of the defined benefit obligation is calculated by reference to the best estimate of
the mortality of plan participants.

Attrition Rate: The actuarial assumption for employee attrition is based on the Company’s past history.

Expected Rate of Return on Plan Assets: The expected rate of return on plan assets is based on the average long¬
term rate of return expected on investments of the fund during the estimated term of the obligation.

34. In accordance with IND AS 12 - “Income Taxes,” the company has recognized a deferred tax asset amounting to
INR 45,39,133/-. This recognition is based on the reasonable certainty of the availability of future taxable profits
against which this deferred tax asset can be utilized.

35. With respect to the pending litigations, the company has not provided for additional financial commitment over
and above the amount due and appearing in the books of accounts to the various litigations.

36. During the financial year 2023-24, the Company sold its land and plant & machinery at Ennore to Coromandel
International Limited for '50.28 crore. However, the Sub-Registrar valued the land and plant & machinery at
'128.74 crore and '8.51 crore, respectively, and stamp duty was paid on these values. In case of any action
initiated by the Income Tax Assessing Officer, the Company intends to seek a valuation assessment from the
Income Tax Valuation Officer. Based on the outcome of such assessment, the Company will proceed with filing
an appropriate appeal, if required

37. The figures in brackets relate to Previous year and regrouped / reclassified to confirm to the requirements of
schedule III .

38. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
source or kind of funds) by the company to or in any other person(s) or entity(ies) including foreign entities
(“intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary, shall,
whether 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 provide any guarantee, security or the like on behalf of
the ultimate beneficiaries as per Clause (e)(i) of Rule 11 of Companies Audit and Auditors Rules, 2014.

39. No funds have been received by the Company from any person(s) or entity(ies), including foreign entities
(“Funding parties”), with the understanding, whether recorded in writing or otherwise, the Company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries as per Clause (e)(ii) of Rule 11 of Companies Audit and Auditors Rules,
2014.

40. The proceedings initiated by the Collector of Nilgiris for the repossession of certain plots of land in Coonoor,
earmarked for public use, have been challenged by the company through a writ petition filed before the Madras
High Court. The matter is currently pending adjudication.

41. Contingent liabilities and commitments (to the extent not provided for):

a) Income Tax Liability: For FY 2021-22, creating a contingent liability for income tax Notice of Demand under
Section 156 of the Income-Tax Act, 1961, Rs. 95.34 lakhs (FY 2023-24: Rs. 95.34 lakhs)

b) Legal Opinion on Land Dispute: the legal opinion on the 5.33 acres land dispute. This dispute concerns the
parking area at the Nungambakkam head office and is still pending in court. Rs 882.80 lakhs (FY 2023-24:
Rs. 882.80 lakhs)

c) Ennore Land Sale: The company sold the Ennore factory during FY 2024-24. As per Section 50C, the
company is required to pay capital gains tax on the fair market value of the property, which is INR 110
crores. Rs 1284.67 lakhs (FY 2023-24: Rs 1284.67 lakhs)”

42. Subsequent to the submission of financial results under Regulation 33 of SEBI (LODR) for FY 2024-25, the
Company has regrouped certain items in the audited financial statements presented in this Annual Report.
These changes have been made to enhance clarity and align with the revised presentation format adopted by
the Company.

The regrouping does not impact the previously reported profit/loss or total equity. Comparative figures have
been restated accordingly.

As per our Report of even date attached For and on behalf of the Board of Directors

For Ray & Ray T.A. Rajalaxmi J. Rafiq Ahmed

Chartered Accountants Director Executive Chairman &

Regn.No.301072E DIN : 08148628 Managing Director

DIN : 02861341

Swetha Srinivasan

Partner Anil Kumar Padhiali Hari Kishore

Membership No. 240553 Company Secretary Chief Financial Officer

Place: Chennai
Date : 30.05.2025