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The Grob Tea Company Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2025

b) As at 31 March 2025, the fair value of investment properties is Rs. 1585.05 Lakhs (P.Y. Rs. 1629.70 Lakhs).These valuations are based on the valuations performed by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation Rules, 2017. Fair value is based on market value approach. The fair value measurement is categorised in Level 3 of fair value hierarchy. The main input considered by the valuer are govt. rates, property location market reserch as trend comparable value as appropriates.

c) The Company has no restriction on realisability of it''s Investment Properties or the remittance of income and proceeds of disposal. There are no contractual obligations to purchase, construct or develop Investment Property or for repairs, maintenance or enhancement as at the year end.

d) Rights, preferences and restrictions attached to shares : The company has only one class of equity shares having par value of ? 10/-.The holders of equity shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share.The 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 of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

e) The Company does not have any Holding or Ultimate Holding Company.

h) No Equity Shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

i) There is no shares issued for consideration other than cash during the period of five years immediately preceding the reporting date.

j) No securities convertible into Equity/ Preference shares have been issued by the Company during the year.

k) No calls are unpaid by any Director or Officer of the Company during the year.

B. Nature and Purpose of Reserve :

1. Securities Premium

Securities Premium is used to record the premium on issue of shares. The reserve is available for utilisation in accordance with the provisions of the Act.

2. Capital Reserve

Capital reserve includes Compensation received from government for compulsory acquisition of certain piece of leasehold Land of tea estates of the Company.

3. General Reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

4. Retained Earning

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders and Other Comprehensive Income arising from remeasurement of Defined Benefit Obligation net of tax.

5. FVOCI Equity Instrument Reserve

The Company has elected to recognise changes in the fair value of certain investments in equity instruments through other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

Nature of securitie

i) Term Loans :

(a) Federal Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 7.90% p.a. (P.Y. 7.90% p.a.).

(b) HDFC Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 8.50% p.a. (P.Y. 8.50% p.a.).

(c) Punjab National Bank is secured by way of hypothecation of Plant & Machinery and other equipments procured out of the term loan being discharged. Interest rate for PNB term loan is RLLR BSP - 0.50% i.e. 8.75%..

ii) Terms of repayments

i) The outstanding amount of car loan with Federal Bank is repayable in 7 monthly installments starting from Apr, 2025 and the last installment is due in the month of October, 2025.

ii) The outstanding amount of car loan with HDFC Bank is repayable in 15 monthly installments starting from April, 2025 and the last installment is due in the month of June, 2026.

iii) The outstanding amount of term loan with Punjab National Bank is repayable in 13 equal quarterly installments starting from June, 2025 and the last installment is due in the month of June, 2028.

a) Nature of securities

i) Term Loans from :

(a) Federal Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 7.90% p.a. (P.Y. 7.90% p.a.).

(b) HDFC Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 8.50% p.a. (P.Y. 8.50% p.a.).

ii) Cash Credit with Punjab National Bank is secured by hypothecation of tea, prompts, receivables, other current assets both present and future and equitable mortage of the company''s Kanu, Teen Ali, Doyang and Dessoie Tea Estate and also secured against personal gurantee of two Directors of the Company.

iii) Overdraft Facility with HDFC Bank is secured by pledged of Fixed Deposit of Rs. 256.68 Lakhs with HDFC Bank .

b) Terms of repayments

i) The outstanding amount of car loan with Federal Bank is repayable in 7 monthly installments starting from Apr, 2025 and the last installment is due in the month of October, 2025.

ii) The outstanding amount of car loan with HDFC Bank is repayable in 15 monthly installments starting from April, 2025 and the last installment is due in the month of June, 2026.

iii) The outstanding amount of term loan with Punjab National Bank is repayable in 13 equal quarterly installments starting from June, 2025 and the last installment is due in the month of June, 2028.

c) The Company has filed quarterly returns or statements with the Banks in lieu of the sanctioned working capital facilities, which are in agreement with the Books of Accounts.

d) The Company has not been declared as willful defaulter by any Bank or Financial Institutions.

The amounts shown above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately. The Company does not expect any reimbursements in respect of the above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.

(ii) During the year 2019-20, the Company had given a Performance Bank Guarantee of Rs 34.35 Lakhs to PSU against sale of LED Street light .The said Bank Guarantee shall continue to be enforceable till 21/05/2027.

(iii) During the Financial Year 2018-19 ,the Company has given a 10 year standard warranty to different buyers on sale of LED street light units amounting to Rs. 272.84 Lakhs.

(b) Defined Benefit Plan :

The Company provides for gratuity as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

34. Disclosure pursuant to Indian Accounting Standard - 19 ''Employee Benefits'' as notified u/s 133 of the Companies Act, 2013. (contd.)

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Life Insurance Corporation of India (LIC). The Employees Leave Encashment Scheme , which is a defined benefit plan is unfunded.

The present value of the obligation is determined based on acturial valuation using Projected Units/Credit Method, which recognised each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to build up the final obligations.

The following table sets out the details of amount recognised in the financial statements in respect of employee benefit schemes.

(ix) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

Market/Interest risk: :

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

Longevity risk:

The impact of longevity risk will depend on whether the benefits are paid before retirement age or after. Typically for the benefits paid on or before the retirement age, the longevity risk is not very material.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. Actual Salary increase that are higher than the assumed salary escalation, will result in increase to the Obligation at a rate that is higher than expected.

Attrition/Withdrawal Assumption

If actual withdrawal rates are higher than assumed withdrawal rates, the benefits will be paid earlier than expected. Similarly if the actual withdrawal rates are lower than assumed, the benefits will be paid later than expected. The impact of this will depend on the demography of the company and the financials assumptions.

Regulatory Risk

Any Changes to the current Regulations by the Government, will increase (in most cases) or Decrease the obligation which is not anticapated. Sometimes, the increase is many fold which will impact the financials quite significantly.

(d) There is no provision for doubtful debt and no amount has been written off/ written back during the year in respect of amount due from or due to related parties.

(e) The transactions with related parties are inclusive of taxes (i.e. GST) and have been entered at an amount which are not materially different from those on normal commercial terms.

The Cost of unquoted equity investment has been considered as appropriate estimate of fair value because of a wide range of possible fair value measurements & cost represents the best estimate of fair value within that range.

In respect of financial instruments, measured at amortised cost, the fair value approximated their carrying value largely due to short term maturities of these instruments.

Biological Assets other than Bearer Plants :

This section explains the judgement and estimates made in determining the fair value of the biological assets other than bearer plants that are recognised at fair value in the financial statement . The Company has classified its biological assets other than bearer plants into Level 2 in the fair value hierarchy, since their is no active market, the fair value is arrived at based on the observable market prices of Green Leaf adjusted for plucking cost.

(b) Measurement of fair values

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique :

Level 1: 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 date.

Level 2: Biological Asset other than Bearer plant is measured at fair value which is arrived at based on the observable market prices of Green Leaf adjusted for estimated plucking cost.

Level 3: If one or more of the significant inputs is not based on observable market data, the instruments is included in level 3.

Specific valuation techniques used to value financial instruments include:

(i) the use of quoted market prices or dealer quotes for similar instruments

(ii) If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant input being the discount rate that reflects the credit risk of counterparty. This is the case with listed instruments where market is not liquid and for unlisted instruments.

37. FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, the company has risk management policies as described below :-

(a) Credit Risk

Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial obligations as per the terms of contract. The Company is exposed to credit risk for receivables, cash and cash equivalents. None of the financial instruments of the Company result in material concentration of credit risks.

Credit risk on receivables is minimum since sales through different mode (eg. auction, private ) are made after judging credit worthiness of the customers, advance payment etc.

Credit risk from balances with banks and financial institutions is managed by the Company''s in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. 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.

(i) Interest rate risk : Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company''s does not have significant exposure to Long Term Borrowing and also does not have a significant cash flow interest rate risk. Similarly Short term borrowing do not have any significant fair value or interest rate risk due to short term tenure.

(ii) Price risk : The Company invest its surplus fund primarily in debt mutual funds measured at FVTPL and in fixed deposit of Banks,accordingly these do not pose any price risk..Further, Equity price risk is related to change in market reference price of investment in quoted shares. The exposure to equity price risk arises from Investment held and classified in Balance Sheet as FVTOCI. In general the investments are strategic investment and do not held for trading purpose so there is no material equity risk relating to Company''s equity investment which are detailed in note no 4 of financial statements.

(d) Agriculture risk :

Cultivation of tea being an agriculture activity, there are certain specific financal risk. These financial risk arise mainly due to adverse weather condition, fluctuation of selling price of finished goods and increase in input cost. The Company manges the above financial risks in the following manner :

- Adequate level of inventory of chemicals, fertilisers and other inputs are maintained so that timely corrective action can be taken in case of adverse weather condition.

- Sufficient level of consumables stores like packing material, coal HSD etc are maintained in order to mitigate financial risk.

- Sufficient working capital facility is obtained from banks so that cultivation and manufacturing and sale of tea is not adversely affected in times of adverse condition.

(e) Other Risk :

Based on a detailed assessment of the recoverability and carrying values of inventories, intangible assets, trade receivables, investments and other financial assets,it has been concluded that no material adustments are required in the financial statements.

38. CAPITAL MANAGEMENT

The Company manges its capital to ensure that the Company will be able to continue as going concern while maximising the return to all stakeholders through optimisation of debt and equity balances. The capital structure of the Company consist of net debt and total equity of the Company.

Net debt implies total borrowing of the Company as reduced by Cash and Cash Equivalent and Equity comprises all component attributable to the owners of the Company.

43. DISCLOSURE UNDER SCHEDULE V TO THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

There are no transaction (other than transactions with related parties as given in Note No. 35 which are required to be disclosed under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

44. Micro and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined based on the information available with the Company and accordingly, there is no due outstanding to Micro and Small Enterprises as on 31st March 2025 and 31st March, 2024.

No interest in terms of section 16 of Micro, Small & Medium Enterprises Development Act, 2006 or otherwise has either been paid or payable or accrued and remaining unpaid as at 31st March 2025

45. CORPORATE SOCIAL RESPONSIBILITY

Gross amount required to be spent by the company in the year towards Corporate Social Responsibility (CSR) as per the provision of section 135 of the Companies Act, 2013 amounts to Rs. NIL (P.Y. Rs. NIL).

46. Details of Loan given,Investments made, guarantee given or security provided covered under section 186 (4) of the Companies Act, 2013 -

(a) The particulars of loans given are stated under "Financial Assets - Loans" in Note No. 11. All these loans are repayable on demand and all the loans have been utilised for general corporate purpose by the recipents.

(b) The relevant details of investments are given in Note Nos. 4.

(d) During the financial year the Company has not granted any loans and advances to any promoter Directors,Key Managerial Persons and related parties.

47. DISCLOSURE UNDER IND AS- 115 REVENUE FROM CONTRACT WITH CUSTOMER -

The Company is engaged into the business of Cultivation and Manufacturing of Tea and trading of LED lights and all related products. During the financial year 2024-25, there is no material impact on Company revenue on applying the said Ind As - 115.

48. The Company''s leasing agreements (as lessee) in respect of lease for housing and warehouse, which are on periodic renewal basis. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit & Loss amounts to Rs. 11.41 Lakhs (P.Y. Rs 15.36 Lakhs).

49. OTHER DISCLOSURES :

(a) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

(b) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

(c) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

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

(e) The Company have not advanced or loaned or invested funds, during the year, to any other person(s) or entity(ies), including foreign entititie (Intermediaries) with the understanding that the Intermediary shall :

(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.

(f) The Company have not received funds, during the year, from any person(s) or entity(ies), including foreign entitities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall :

(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.

(g) The company has utilised the Borrowings from Banks and Financial Institutions for the purpose for which it was taken.

(h) During the year the company did not provide any loans or advances (repayable on demand or without specifying any term or period of repayment) to promoters, directors, KMP''s and related parties (as defined under Companies Act, 2013,) either severally or jointly with any other persons.

50. SUBSEQUENT EVENT -

The Board of Directors at its meeting held on 22nd May 2025, has recommended a dividend of Rs. 3/- per Equity Share held subject to the shareholders approval at Annual General Meeting.

51. The financial statements were approved for issue by the Board of Directors on 22nd May, 2025.

52. The Company has used accounting software for maintaining its books of account, which has a feature of recording audit trail (edit log) as perthe requirement of the Companies (Accounts) Rules, 2014 as amended by Ministry of Corporate Affairs (MCA) notification dated 24th March 2021. This feature was enabled and operated throughout the year for all relevant transactions, with the following exceptions where the company is still in the process of implementing the audit trail for its books of accounts:

(a) During the year the audit trail feature was not enabled for certain modules, viz., Inventory, Field. Labour and Employee.

(b) The accounting software lacks a feature to track whether the audit trail was enabled continuously throughout the year.

53. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures to the current year .

Mar 31, 2024

1.19 Provisions, Contingent Liabilities and Contingent Assets

a) Provisions are recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the balance sheet date.

b) Contingent liabilities are shown by way of Notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

c) Contingent assets are not recognized in the Accounts till the realisation of income is virtually certain. However, the same are disclosed in the financial statements where an inflow of economic benefit is possible.

1.20 Earnings Per share

Basic earnings per share is computed by dividing the profit or loss after tax (including the post tax effect of extra ordinary

items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit or loss after tax (including the post tax effect of any extra

ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per

share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.

1.21 Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.22 Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term highly liquid investments with orginial maturities of three months or less that are readily convertible to know amounts of cash and which are subject to an insignificant risk of changes in value.

1.23 Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).

1.24 Significant Judgement and Estimation in Applying Accounting Policies

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Information about significant judgements and key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

i) Taxation : The Company is engaged in agricultural actvites and also subject to tax liability under MAT provisions. Significant judgement is involved in determining the tax liability for the Company. Also there are many transactons and calculatons during the ordinary course of business for which the ultimate tax determinaton is uncertain. Further judgement is involved in determining the deferred tax positon on the balance sheet date.

ii) Depreciation and amortisation : Management reviews its estimate of the useful lives of depreciable/ amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change the utility of property, plant and equipment.

iii) Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, anticipation of future salary increases and inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

iv) Provisions and Contingencies: Provisions and contingencies are based on Management''s best estimate of the liabilities based on the facts known at the balance sheet date.

v) Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

vi) Fair Value of Biological Asset : The fair value of Biological Assets is determined based on recent transactions entered into with third parties or available market price. Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

vii) Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.

Nature of securitie

i) Term Loans :

(a) Federal Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 7.90% p.a. (P.Y. 7.90% p.a.).

(b) HDFC Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 8.50% p.a. (P.Y. 8.50% p.a.).

(c) Punjab National Bank is secured by way of hypothecation of Plant & Machinery and other equipments procured out of the term loan during the financial year 2023-24. Interest rate for PNB term loan is RLLR BSP -0.50% i.e. 8.75%.

ii) Terms of repayments

i) The outstanding amount of car loan with Federal Bank is repayable in 19 monthly installments starting from Apr, 2024 and the last installment is due in the month of October, 2025.

ii) The outstanding amount of car loan with HDFC Bank is repayable in 27 monthly installments starting from April, 2024 and the last installment is due in the month of June, 2026.

iii) The outstanding amount of term loan with Punjab National Bank is repayable in 17 equal quarterly installments starting from June, 2024 and the last installment is due in the month of June, 2028.

a) Nature of securities

i) Term Loans from :

(a) Bank of Baroda Bank was secured by way of hypothecation of car purchased during the financial year 2020-21. The loan carried interest @ 7.45% p.a. (P.Y. 7.45% p.a.). The final installment of the loan, which was due in February 2024, has been fully paid.

(b) Federal Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 7.90% p.a. (P.Y. 7.90% p.a.).

(c) HDFC Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 8.50% p.a. (P.Y. 8.50% p.a.)

(d) Punjab National Bank is secured by way of hypothecation of Plant & Machinery and other equipments procured out of the term loan during the financial year 2023-24. Interest rate for PNB term loan is RLLR BSP - 0.50% i.e. 8.75%.

ii) Cash Credit with Punajab National Bank is secured by hypothecation of tea, prompts, receivables, other current assets both present and future and equitable mortage of the company''s Kanu, Teen Ali, Doyang and Dessoie Tea Estate and also secured against personal gurantee of two Directors of the Company.

iii) Overdraft Facility with HDFC Bank is secured by pledged of Fixed Deposit of Rs. 256.68 Lakhs with HDFC Bank.

iv) Overdraft Facility with YES Bank was secured by pledged of Fixed Deposit of Rs. 501.14 Lakhs with YES Bank.

b) Terms of repayments

i) The outstanding amount of car loan with Bank of Baroda was repayable in 11 monthly installments starting from April, 2023 and the final installment of the loan, which was due in February 2024, has been fully paid.

ii) The outstanding amount of car loan with Federal Bank is repayable in 19 monthly installments starting from Apr, 2024 and the last installment is due in the month of October, 2025.

iii) The outstanding amount of car loan with HDFC Bank is repayable in 27 monthly installments starting from April, 2024 and the last installment is due in the month of June, 2026.

iv) The outstanding amount of term loan with Punjab National Bank is repayable in 17 equal quarterly installments starting from June, 2024 and the last installment is due in the month of June, 2028.

c) The Company has filed quarterly returns or statements with the Banks in lieu of the sanctioned working capital facilities, which are in agreement with the Books of Accounts.

d) The Company has not been declared as willful defaulter by any Bank or Financial Institutions.

(ix) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk:

Market/Interest risk: :

Longevity risk:

Salary risk:

The present value of the defined benefit plan lliability is calculated by reference to the future salaries of plan participants. Actual Salary increase that are higher than the assumed salary escalation, will result in increase to the Obligation at a rate that is higher than expected.

Attrition/Withdrawal Assumption

Regulatory Risk

(b) Measurement of fair values

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique :

Level 2: Biological Asset other than Bearer plant is measured at fair value which is arrived at based on the observable market prices of Green Leaf adjusted for estimated plucking cost.

Level 3: If one or more of the significant inputs is not based on observable market data, the instruments is included in level 3.

Specific valuation techniques used to value financial instruments include:

- (i) the use of quoted market prices or dealer quotes for similar instruments

- (ii) If one or more of the significant inputs is not based on observable market data, the fair value is determined using

generally accepted pricing models based on a discounted cash flow analysis, with the most significant input being the discount rate that reflects the credit risk of counterparty. This is the case with listed instruments where market is not liquid and for unlisted instruments.

(a) Credit Risk

Credit risk on receivables is minimum since sales through different mode (eg. auction, private ) are made after judging credit worthiness of the customers, advance payment etc.

(b) Liquidity Risk

Maturity profile of financial liabilities :

The following are the remaining contractual maturities of financial liabilities as at the Balance Sheet dates -

(i) Interest rate risk : Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

38 FINANCIAL RISK MANAGEMENT (Contd.)

(d) Agriculture risk :

- Adequate level of inventory of chemicals, fertilisers and other inputs are maintained so that timely corrective action can be taken in case of adverse weather condition.

- Sufficient level of consumables stores like packing material, coal HSD etc are maintained in order to mitigate financial risk.

- Sufficient working capital facility is obtained from banks so that cultivation and manufacturing and sale of tea is not adversely affected in times of adverse condition.

(e) Other Risk :

39. CAPITAL MANAGEMENT

Net debt implies total borrowing of the Company as reduced by Cash and Cash Equivalent and Equity comprises all component attributable to the owners of the Company.

44. DISCLOSURE UNDER SCHEDULE V TO THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

There are no transaction (other than transactions with related parties as given in Note No. 36 which are required to be disclosed under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

45. Micro and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined based on the information available with the Company and accordingly, there is no due outstanding to Micro and Small Enterprises as on 31st March 2024 (P.Y. Nil).

No interest in terms of section 16 of Micro, Small & Medium Enterprises Development Act, 2006 or otherwise has either been paid or payable or accrued and remaining unpaid as at 31st March 2024

46. CORPORATE SOCIAL RESPONSIBILITY

Gross amount required to be spent by the company the year towards Corporate Social Responsibility (CSR) as per the provision of section 135 of the Companies Act, 2013 amounts to NIL (P.Y. Rs. 23.92 Lakhs).

47. Details of Loan given,Investments made, guarantee given or security provided covered under section 186 (4) of the Companies Act, 2013 -

(a) The particulars of loans given are stated under "Financial Assets - Loans" in Note No. 12. All these loans are repayable on demand and all the loans have been utilised for general corporate purpose by the recipents.

Notes to Financial Statements (Contd.)

(b) The relevant details of investments are given in Note Nos. 4. and 9.

(d) During the financial year the Company has not granted any loans and advances to any promoter Directors,Key Managerial Persons and related parties.

48. DISCLOSURE UNDER IND AS- 115 REVENUE FROM CONTRACT WITH CUSTOMER -

The Company is engaged into the business of Cultivation and Manufacturing of Tea and trading of LED lights and all related products. During the financial year 2023-24, there is no material impact on Company revenue on applying the said Ind As - 115.

49. The Company''s leasing agreements (as lessee) in respect of lease for housing and warehouse, which are on periodic renewal basis. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit & Loss amounts to Rs. 15.36 Lakhs (P.Y. Rs 28.11 Lakhs).

50. OTHER DISCLOSURES :

(c) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

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

(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.

(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.

(g) The company has utilised the Borrowings from Banks and Financial Institutions for the purpose for which it was taken.

51. SUBSEQUENT EVENT-

The Board of Directors at its meeting held on 22 nd May 2024, has recommended a dividend of Rs. 2 per Equity Share held subject to the shareholders approval at Annual General Meeting.

52. The financial statements were approved for issue by the Board of Directors on 22nd May, 2024.

53. The Company has used accounting software for maintaining its books of account, which has a feature of recording audit trail (edit log) as perthe requirement of the Companies (Accounts) Rules, 2014 as amended by Ministry of Corporate Affairs (MCA) notification dated 24th March 2021. This feature was enabled and operated throughout the year for all relevant transactions, with the following exceptions where the company is still in the process of implementing the audit trail for its books of accounts:

a) During the year the audit trail feature was not enabled for certain modules, viz., Inventory, Field. Labour and Employee.

b) The accounting software lacks a feature to track whether the audit trail was enabled continuously throughout the year.

c) The audit trail feature, where applied, only records the date and the person responsible for the modification.

54. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures to the current year.

As per our report of even date attached For & on behalf of the Board of Directors For G A R V & Associates

Chartered Accountants P K Agarwal N K Harodia

F.R No: 301094E (Managing Director) (Independent Director)

SUNDEEP SHARMA (dIN No. 00703745) (DIN No. 06676837)

Partner

Membership No. 063273 Chitra Jaiswal Subrata Dasgupta Vinay Kr. Kejriwal

Place: Kolkata (Company Secretary) (Chief Executive Officer) (Chief Financial Officer)

Dated : 22nd May, 2024 (Mem. # A-54257)

Mar 31, 2023

1.19 Provisions, Contingent Liabilities and Contingent Assets

1.20 Earnings Per share

Basic earnings per share is computed by dividing the profit or loss after tax (including the post tax effect of extra ordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit or loss after tax (including the post tax effect of any extra ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.

1.21 Cash flow statement

1.22 Cash and Cash Equivalents

1.23 Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).

1.24 Significant Judgement and Estimation in Applying Accounting Policies

Estimates and judgements are continually evaluated.They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Information about significant judgements and estimation made in applying accounting policies is included in the following notes:

i) Taxation : The Company is engaged in agricultural actvites and also subject to tax liability under MAT provisions. Significant judgement is involved in determining the tax liability for the Company. Also there are many transactons and calculatons during the ordinary course of business for which the ultmate tax determinaton is uncertain. Further judgement is involved in determining the deferred tax positon on determinaton is uncertain. Further judgement is involved in determining the deferred tax positon on the balance sheet date.

iii) Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates and anticipation of future salary increases. The Company considers that have a material impact on the resulting calculations.

iv) Provisions and Contingencies: Provisions and contingencies are based on Management''s best estimate of the liabilities based on the facts known at the balance sheet date.

v )Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility

1.25 RECENT ACCOUNTING PRONOUNCEMENTS:

Ministry of Corporate Affairs (âMCAâ) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements: The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements

Ind AS 12 - Income Taxes: The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors: The

amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are âmonetary amounts in financial statements that are subject to measurement uncertaintyâ. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements

a) Nature of securities

i) Term Loans :

(a) Bank of Baroda Bank is secured by way of hypothecation of car purchased during the financial year 2020-21. The loan carries interest @ 7.45% p.a.

(b) ICICI Bank is secured by way of hypothecation of car purchased during the financial year 2019-20. The loan carries interest @ 8.90% p.a.

(c) Federal Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 7.90% p.a.

(d) HDFC Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 8.50% p.a.

iii) Overdraft Facility with HDFC Bank is secured by pledged of Fixed Deposit of Rs. 256.68 Lakhs with HDFC Bank .

v) Overdraft Facility with YES Bank is secured by pledged of Fixed Deposit of Rs. 501.14 Lakhs with YES Bank .

b) Terms of repayments

i) The outstanding amount of car loan Rs 24.71 Lakhs from Bank of Baroda is repayable in 36 monthly installments starting from March, 2021 and the last installment is due in the month of Feburary, 2024.

ii) The outstanding amount of car loan Rs 1.80 Lakhs from ICICI Bank was repayable in 36 monthly installments starting from 17th March, 2021 and the last installment was due in the month of March, 2023.

iii) The outstanding amount of car loan Rs 87.48 Lakhs from Federal Bank is repayable in 36 monthly installments starting from 05th November, 2022 and the last installment is due in the month of November, 2025.

iv) The outstanding amount of car loan Rs 20.01 Lakhs from HDFC Bank is repayable in 39 monthly installments starting from 05th April, 2023 and the last installment is due in the month of June, 2026.

c) The Company has filed quarterly returns or statements with the Banks in lieu of the sanctioned working capital facilities, which are in agreement with the Books of Accounts

d) The Company has not been declared as willful defaulter by any Bank or Financial Institutions.

Note : In the absence of detailed information regarding plan assets which is funded with Life Insurance Corporation of India, the composition of plan assets, the percentage and amount for each category of the fair value of plan assets has not been disclosed.

(ix) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk:

Market/Interest risk :

Longevity risk:

Salary risk:

Attrition/Withdrawal Assumption

Regulatory Risk

b Measurement of fair values

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique :

Level 2: Biological Asset other than Bearer plant is measured at fair value which is arrived at based on the observable market prices of Green Leaf adjusted for estimated plucking cost.

Level 3: If one or more of the significant inputs is not based on observable market data, the instruments is included in level 3.

c Valuation technique used to determine fair value of Financial Instruments

Specific valuation techniques used to value financial instruments include:

(i) the use of quoted market prices or dealer quotes for similar instruments

38. Financial Risk Management

(a) Credit Risk

Credit risk on receivables is minimum since sales through different mode (eg. auction, private) are made after judging credit worthiness of the customers, advance payment etc.-

(b) Liquidity Risk

(i) Interest rate risk : Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

(ii) Price risk : The Company invest its surplus fund primarily in debt mutual funds measured at FVTPL and in fixed deposit of Banks,accordingly these do not pose any price risk. Further, equity price risk is related to change in market reference price of investment in quoted shares. The exposure to equity price risk arises from Investment held and classified in Balance Sheet as FVTOCI. In general the investments are strategic investment and do not held for trading purpose so there is no material equity risk relating to Company''s equity investment which are detailed in note no 4 of financial statements.

(d) Agriculture risk :

Cultivation of tea being an agriculture activity, there are certain specific financal risk. These

financial risk arise mainly due to adverse weather condition, fluctuation of selling price of

finished goods and increase in input cost.

The Company manges the above financial risks in the following manner :

- Adequate level of inventory of chemicals, fertilisers and other inputs are maintained so that timely corrective action can be taken in case of adverse weather condition.

- Sufficient level of consumables stores like packing material, coal HSD etc are maintained in order to mitigate financial risk.

- Sufficient working capital facility is obtained from banks so that cultivation and manufacturing and sale of tea is not adversely affected in times of adverse condition.

39 Capital Management

Net debt implies total borrowing of the Company as reduced by Cash and Cash equivalent and Equity comprises all component attributable to the owners of the Company.

47. Details of Loan given,Investments made, guarantee given or security provided covered under section 186 (4) of the Companies Act, 2013 -

(i) The particulars of loans given are stated under âFinancial Assets - Loansâ in Note No. 12. All these loans are repayable on demand and all the loans have been utilised for general corporate purpose by the recipents.

(ii) The relevant details of investments are given in Note Nos. 4. and 9

(iii) The Company has not given any guarantee or provided any security.

(iv) During the financial year the Company has not granted any loans and advances to any promoter Directors, Key Managerial Persons and related parties, as defined under Companies Act,2013.

48. Disclosure under Ind AS- 115 Revenue from Contract with Customer -

The Company is engaged into the business of Cultivation and Manufacturing of Tea and trading of LED lights and all related products. During the financial year 2022-23, there is no material impact on Company revenue on applying the said Ind As - 115.

50. Other Disclosures :

i) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

ii) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

iii) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

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

v) The Company have not advanced or loaned or invested funds, during the year, to any other person(s) or entity(ies), including foreign entititie (Intermediaries) with the understanding that the Intermediary shall:(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vi) The Company have not received funds, during the year, from any person(s) or entity(ies), including foreign entitities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vii) The company has utilised the Borrowings from Banks and Financial Institutions for the purpose for which it was taken.

51. Subsequent Event -

The Board of Directors at its meeting held on 25th May 2023, has recommended a dividend of Rs.2 per Equity Share held subject to the shareholders approval at Annual General Meeting.

52. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures to the current year .

As per our report of even date attached.

For & behalf of the Board of Directors

For G A R V & Associates M K Agarwal P K Agarwal

Chartered Accountants (Executive Director) (Director)

F.R No: 301094E (DIN No. 00697746) (DIN No. 00703745)

Sundeep Sharma Subrata Dasgupta Ms. Chitra Jaiswal

Partner (Chief Executive Officer) (Company Secretary)

Membership No. 063273 (Membership No. A-54257)

Place: Kolkata Vinay Kumar Kejriwal

Dated : 25th May, 2023 ^{(Chief Financial Officer)}

Mar 31, 2018

A) Rights, preferences and restrictions attached to shares

The company has only one class of equity shares having par value of Rs. 10/-. The holders of equity shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Refer Statement of Changes in Equity for detailed movement in Equity balance.

B. Nature and Purpose of Reserve :

1. Security Premium Reserve : Securities Premium Reserve is used to record the premium on issue of shares. The reserve is available for utilisation in accordance with the provisions of the Act.

2. Capital Reserve

3. General Reserve : The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

4. Retained Earning : Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

5. FVOCI Equity Instrument Reserve : The Company has elected to recognise changes in the fair value of certain investments in equity instruments through other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

Nature of securities

i) Term loans from HDFC bank is secured by way of hypothecation of car purchased. The loan carries interest @ 9.65% p.a.

ii) Cash Credit with UBI is secured by hypothecation of tea, prompts, receivables, other current assets both present and future and equitable mortage of the companyâs Kanu, Teen Ali, Doyang and Dessoie Tea Estate and also secured against personal gurantee of two Directors of the Company.

iii) Overdraft Facility with HDFC Bank is secured by pledged of Fixed Deposit of Rs. 100,00,000 with HDFC Bank .

Terms of repayments

i) The outstanding amount of Car Loan 1 of Rs. 20,00,000 from HDFC Bank is repayable in remaining 15 monthly installments, the last installment is due in the month of June, 2019. Out of this 15 monthly installments, 12 installments are payable within 31st March, 2019, therefore, the same has been included in âCurrent Borrowingâ and Balance amount in âNon Current Borrowingâ.

ii) The outstanding amount of car loan 2 of Rs. 10,00,000 from HDFC Bank is repayable in remaining 18 monthly installments, the last installment is due in the month of September, 2019. Out of the 18 monthly installments, 12 installments are payable within 31st March, 2019, therefore, the same has been included in âCurrent Borrowingâ and Balance amount in âNon Current Borrowingâ.

(i) Risk exposure

These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk. Investment risk:

The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields on government bonds at the end of the reporting period. For other defined benefits plans, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds when there is a deep market for such bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liabiilty, however, this will be partially offset by an increase in the return on the plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the planâs liability.

Salary risk:

The present value of the defined benefit plan lliability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the planâs liability.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefits, obligation recognised within the Balance Sheet. The methods and type of assumptions used in preparing the sensitivity analysis did not change compared to prior period.

Presentation in the Statement of Profit & Loss, Other Comprehensive Income & Balance Sheet :

Gratuity and leave encashment benefits are in the nature of defined benefits plans and re-measurement gains/(losses) on defined benefit pans are shown under OCI as âitems that will not be reclassified to profit or lossâ, including the income tax effect on the same.

Expense for service cost, net interest on net defined benefit liability/(asset) is recognised in the Statement of Profit & Loss. Ind AS 19 dues not require segregation of net defined liability/(asset) into current and non-current, however net defined liability/(asset) is bifurcated into current and non-current portions in the balance sheet, as per Ind AS1 on âPresentation of Financial Statementsâ.

The fair value of unqouted equity investments cannot be reliably estimated. The Company has currently measured them at their book value.

In respect of financial instruments, measured at amortised cost, the fair value approximated their carrying value largely due to short term maturities of these instruments.

Biological Assets other than Bearer Plants :

This section explains the judement and estimates made in determining the fair value of the biological assets othet than bearer plants that are recognised at fair value in the financial statement. The Company has classified its biological assets other than bearer plants into Level 2 in the fair value hierarchy, since their is no active market, the fair value is arrived based on the observable market prices of Green Leaf adjusted for plucking cost.

B. Measurement of fair values

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique :

Level 2: Biological Assets other than Bearer Plant is measured at fair value which is arrived at based on observable market price of Green Leaf adjusted for estimated plucking cost.

Level 3: If one or more of the significant inputs is not based on observable market data, the instruments is included in level 3.

C. Valuation technique used to determine fair value of Financial Instrument

Specific valuation techniques used to value financial instruments include:

(i) the use of quoted market prices or dealer quotes for similar instruments.

1. FINANCIAL RISK MANAGEMENT

The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, the company has risk management policies as described below :-

(a) Credit Risk

Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial obligations as per the terms of contract. The Company is exposed to credit risk for receivables, cash and cash equivalents, none of the financial instruments of the Company result in material concentration of credit risks.

Credit risk on receivables is minimum since sales through different mode (eg. auction, consignment, private ) are made after judging credit worthiness of the customers, advance payment etc.-

Credit risk from balances with banks and financial institutions is managed by the Companyâs in accordance with the Companyâs policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterpartyâs potential failure to make payments.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Management monitors rolling forecasts of the Companyâs liquidity position on the basis of expected cash flows. 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.

(c ) Market Risk

(i) Interest rate risk : Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Companyâs does not have significant exposure to Long Term Borrowing and also does not have a significant cash flow interest rate risk. Similarly Short term borrowing do not have any significant fair value or interest rate risk due to short term tenure.

(ii) Price risk : The Company invest its surplus fund primarily in debt mutual funds measured at FVTPL,accordingly these do not pose any price risk. The aggregate value of such investment as on 31st March,2018 Rs 574.10 Lakhs ( 2017- Rs Nil and 2016 Rs.205.52) .Further, Equity price risk is related to change in market reference price of investment in quoted shares. The exposure to equity price risk arises from Investment held and classified in Balance Sheet as FVTOCI. In general the investments are strategic investment and do not held for trading purpose so there is no material equity risk relating to Companyâs equity investment which are detailed in note no 3 of financial statement.

(d) Agriculture risk :

Cultivation of tea being an agriculture activity, there are certain specific financial risk. These financial risk arise mainly due to adverse weather condition, fluctuation of selling price of finished goods and increase in input cost.

The Company manges the above financial risks in the following manner :

â Adequate level of inventory of chemicals, fertilisers and other inputs are maintained so that timely corrective action can be taken in case of adverse weather condition.

â Sufficient level of consumables stores like packing material, coal HSD etc are maintained in order to mitigate financial risk.

â Sufficient working capital facility is obtained from banks so that cultivation and manufacturing and sale of sale of tea is not adversely affected in times of adverse condition.

2. CAPITAL MANAGEMENT

The Company manges its capital to ensure that the Company will be able to continue as going concern while maximising the return to all stakeholders through optimisation of debt and equity balances.The capital structure of the Company consist of net debt and total equity of the Company.

Net debt implies total borrowing of the Company as reduced by Cash and Cash equivalent and Equity comprises all component attributable to the owners of the Company.

3. SEGMENT REPORTING

Consequent to the adoption of Ind AS, the Company has identified one operating segment viz, âTeaâ which is consistent with the internal reporting provided to the chief executive officer, who is the chief operating decision maker.The Company deals in only one product i.e., Tea. The products and their applications are homogenous in nature.

4. DISCLOSURE UNDER SCHEDULE V TO THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

There are no transaction (other than transactions with related parties as given in Note 29) which are required to be disclosed under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

5. The Company has not received any memorandum as required to be filed by the suppliers with the notified authority under Micro, Small and Medium Enterprises Development Act, 2006 for claiming their status as micro, small or medium enterprises. Therefore, there is no due outstanding to Micro and Small Enterprises (Previous year Nil).

6. CORPORATE SOCIAL RESPONSIBILITY

Gross amount required to be spent by the company the year towards Corporate Social Responsibility (CSR) as per the provision of section 135 of the Companies Act, 2013 amounts to Rs. 5,84,561 (Previous Year Rs. 8,00,221 ).

7. Salaries and Wages excludes Rs. 50,27,181/- (Previous year Rs. 37,79,983/-) and Stores and Spares consumed excludes Rs. 58,31,141/- (Previous year Rs. 35,83,028/-) debited to other accounts.

8. DETAILS OF LOAN GIVEN,INVESTMENTS MADE, GUARANTEE GIVEN OR SECURITY PROVIDED COVERED UNDER SECTION 186 (4) OF THE COMPANIES ACT, 2013.

(ii) The relevant details of investments are given in Note Nos. 3 and 9.

(iii) The Company has not given any guarantee or provided any security.

9. INCOME TAX EXPENSE

This note provides an analysis of the Companyâs income tax expense, how the tax expense is affected by non-assessable and non-deductible expense

10. FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARD (IND - AS)

The accounting policies set out in Note 1 have been applied in preparing the financial statemnets for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in preparation of an opening Ind AS balance sheet at 1st April 2016 (the Companyâs date of transaction). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and Exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A1 Ind AS optional exemptions

A.1.1. Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Asset. Accordingly, the Company has elected to measure all of its property, plant and equipemnt and intangible assets at their previous GAAP carrying value. The Company does not have any de-commissioning liabilities as on the date of transition and accordingly no adjustment have been made for the same.

A.1.2. Designation of previously recognised financial instruments.

Ind AS 101 allows an entrity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity instruments.

A.2. Ind As mandatory exceptions A.2.1.Estimates

An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1st April 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

i. Investment in equity instruments carried at FVOCI;

ii. Valuation of the closing Stock (Made Tea) has done as per IND AS - 41 i.e. on the initial recognition, agricultural produce is required to be measured at fair value less estimated point of sale costs.

iii. Valuation of Bearer Plant Other that Tea Bushes has been done as per IND AS 41.

A.2.2. Classification and measurement of financial assets

Ind AS requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C Notes to reconciliation :

Note 1 : Fair valuation of Investments:

(i) Under the previous GAAP, investments in equity instruments were classified as long- term investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, these investments are required to be measured at fair value. Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognised in FVOCI - Equity Investments(net of tax) as at the date of transition and subsequently in the other comprehensive income for the year ended 31st March 2017. This has increased FVOCI Equity Investments by Rs.75.64 lakhs as at 31st March 2017 (1st April 2016 Rs. 68.08 lakhs) Consequent to the above, the total equity as at 31st March

2017 increased by Rs. 75.64 lakhs (1st April 2016 - Rs. 68.08 lakhs) and other comprehensive income for the year ended 31st March 2017 increased by Rs. 7.56 lakhs, respectively.

(ii) Under Indian GAAP, investments in mutual funds were measured at lower of cost or market value while under Ind AS, such investments are required to be measured at fair value with the resultant gain or loss being recognised in profit or loss.This has increased the value of investment Rs. 3.65 Lakh with corresponding increase in equity.

Note 2: Subsidies Receivable from Government

Under the previous GAAP, replanting subsidy received from Tea board was recognised in the Statement of Profit and Loss as and when accrued till F.Y 2015-16 and in subsequent financial year adjusted the cost of bearer plant. Under Ind AS, the same is recognised as Deferred Subsidy Income in the Balance Sheet and transferred to Profit and Loss acount on straight line basis over the useful life of the bearer plants . Consequent to this change, the Cost of Bearer Plant has increased by Rs. 17.76 lakhs as at 31st March 2017 and total equity decreased by Rs. 12.01 lakhs as at 1st April 2016 and Rs. 17.76 as at 31st March 2017.

Note 3: Inventories

Finished Goods: Under previous GAAP, tea stock has been valued at the lower of cost and net realizable value. Cost of inventories comprise all cost of purchase/production of green leaf, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Under Ind AS, cost of inventories comprises cost of purchase of green leaf, fair value of green leaf at the time of harvest less cost to sell,conversion cost and other costs incurred in bringing the inventories to their present location and condition. Consequent to this change, inventory of fnished goods as on 1st April 2016 has decreased by Rs. 20.42 lakhs with corresponding decrease in equity. However, Inventories as on 31st March 2017 had decreased by Rs. 22.03 lakhs with corresponding decrease in equity.

Note 4: Biological Assets (i.e. unplucked leaf on tea bushes)

Under previous GAAP, biological assets, i.e. unplucked leaf on tea bushes has neither been valued nor recognised in the accounts. Under Ind AS, unplucked leaf on tea bushes has been measured at its fair value less cost to sell and change in fair value has been recognised in Profit or Loss. Consequent to this change, inventory of biological assets as on 1st April 2016 and as on 31st March 2017 has increased by Rs. 31.77 lakhs and by Rs 20.96 lakhs with corresponding increase in equity.

Note 5:Other Adjustment

Other Adjustment includes some cost on replanting expenditure which were charged to Profit and Loss under Indian GAAP now considered as Property Plant & Equipment as Bearer Plant with corresponding increase in value of equity .

Note 6: Proposed Dividend and Tax on Proposed Dividend

Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements and applicable dividend tax thereon, were considered as adjusting events. Accordingly, provision for proposed dividend and dividend tax thereon was recognised as a liability. Under Ind AS, such dividend and tax thereon are recognised when the dividend is approved by the shareholders in the general meeting. Accordingly the liability for proposed dividend and dividend tax thereon aggregating Rs. 27.98 lakhs as at 1st April 2016 included under provisions has been reversed with corresponding ajustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note 7: Remeasurements of post-employment benefit obligations:-

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As result of this change the profit for the year ended 31st March, 2017 has increased by Rs.79.32 lakhs (net of tax Rs. 54.55 lakhs). There is no impact on the total equity as at 31st March 2017.

Note 8: Deferred Tax :-

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of the balance sheet approach has resulted in recognition of deferred tax asset on temporary differences which was not reognised under Indian GAAP. Also all Ind AS adjustments may have corresponding Deferred Tax Impact.

Note 9: Retained Earnings

Retained earnings as at 1st April 2016 has been adjusted consequent to the above Ind AS transition adjustments.

Note 10: Other Comprehensive Income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

11. The previous yearâs figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures to the current year .

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