C. Out of the above Shares
1. With regards to 8,61,918 equity shares (As at 31st March, 2017 : 8,61,918 shares; As at 1st April, 2016 : 8,61,918 shares) held by Late H. P. Barooah, proceedings are pending before the Courts.
2. Out of 3,16,200 equity shares (As at 31st March, 2017 : 3,16,200 shares; As at 1st April, 2016 : 3,16,200 shares) shown in the name of Mrs. S. Shetty, proceedings are pending before Courts in respect of 2,21,230 equity shares (As at 31st March, 2017 : 2,21,230 shares; As at 1st April, 2016 : 2,21,230 shares).
3. With regards to 2,42,430 equity shares (As at 31st March, 2017 : 2,42,430 shares; As at 1st April, 2016 : 2,42,430 shares) held by Mr. Somnath Chatterjee, proceedings are pending before the Courts.
D. There has been no changes in Authorized and Issued & Subscribed Capital during the years covered by these financial statements.
Refer Statement of Changes in Equity for detailed movement in Equity balances.
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. This sensitivity analysis above has been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period while holding all other assumptions constant. The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. There is no change in the method of valuation for the prior period. For change in assumptions refer to Table 6 above.
3. Related Party Disclosures - Amit Chowdhuri
(a) Subsidiaries - Bhramar Kumar Mahanta B & A Packaging India Ltd. 4 Others**
(b) Associates - Debdip Chowdhury (Company Secretary)
Heritage North East Pvt. Ltd.* _ ,, .. . . .
3 - Tapas Kumar Chatterjee (Chief Financial
Kaziranga Golf Club Pvt. Ltd.* Officer)
*These Companies are not “associate company” within the These directors are not “Key Managerial Personnel” within mining of Sec 2(6) of the Companies Act, 2013. the meaning of Sec 2(51) of the Companies Act, 2013.
(c) Key Management Personnel **These are “Key Managerial Personnel” within the meaning
1. Executive Directors** of Sec 2(51) of the Companies Act, 2013.
- Somnath Chatterjee (Managing Director) (d) Other Related Parties
2. Non-Executive Independent Directors1" Barooahs & Associates Pvt. Ltd.
- Basant Kumar Goswami Buragohain Tea Company Ltd.
- Latifur Rahman Assam Tea Brokers Pvt. Ltd.
- Prabir Kumar Datta „ „ ,
Super Packaging Ltd.
- Anjan Ghosh
_ . „ , Rockland Realty Pvt. Ltd.
- Raj Kamal Bhuyan
Morris Construction Pvt. Ltd.
3. Non-Executive Non-Independent Director1"
- Anuradha Farley (Chairman) Hacienda Properties Pvt. Ltd.
4. Capitalization of Borrowing Costs
The Company had commenced construction of a new tea manufacturing factory at Sangsua Tea Estate during the financial year 2013-14, which has been completed during the financial year 2017-18 and its cost has accordingly been capitalized. The construction of the factory has been financed by a Term Loan from United Bank of India. The amount of borrowing cost capitalized during the year ended 31st March, 2018 is Rs. 58.41 lakhs (during year ended 31st March, 2017 Rs. 58.76 lakhs).
5. Capital Commitments
Estimated value of contracts on capital account remaining to be executed and not provided for as on 31st March, 2018 - nil (as on 31st March, 2017 - nil; as on 1st April, 2016 - Rs. 152.92 lakhs).
Fair Value Hierarchy for Financial Instruments
The fair value of financial instruments as mentioned above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The categories used are as follows :-
- Level 1 : Quoted prices for identical instruments in an active market;
- Level 2 : Directly or indirectly observable market inputs, other than Level 1 inputs; and
- Level 3 : Inputs which are not based on observable market data.
The fair values of financial assets (other than those measured at fair value through Other Comprehensive Income) and financial liabilities are considered to be equal to the carrying amounts of these items due to their being short term in nature and therefore devoid of any material financing component. There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy.
For investments in unquoted equity instruments book value per share, as calculated from the latest available financial statements of such unlisted companies, is considered as fair value of such investments. Discounted Cash Flow technique has not been used since a reliable forecast of cash flow of such companies could not be arrived at.
Fair Value Hierarchy for Biological Assets (Other than Bearer Plants)
The following table presents the fair value hierarchy of Biological Assets (Other than Bearer Plants) for which fair value less cost to sell have been disclosed in the financial statements:-
6. Financial Risk Management
The Company's principal financial liabilities comprise of borrowings, trade payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade receivables and cash & bank balances. The Company also holds FVTOCI Investments.
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company focuses on a system-based approach to business risk management. Its financial risk management process seeks to enable the timely identification, evaluation and effective management of key risk areas facing the business.
a. Market Risk
i. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates.
The Company has operated only in the domestic market and did not undertake any transactions in foreign currency during the periods covered by this financial statement. As such, the Company did not have any foreign currency risk for the reported periods.
ii. Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows from a financial instrument will fluctuate because of changes in market interest rates.
Increase / decrease of 50 basis points in interest rates (keeping all other variables constant) as at the balance sheet date would result in an impact (decrease / increase in case of net income) of Rs. 16.41 lakhs and Rs. 15.12 lakhs on profit before tax for the year ended 31st March, 2018 and 31st March, 2017 respectively.
b. Credit Risk
Credit risk is 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 trade receivables and loans. 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 modes (e.g. auction sales, private sales) are made after judging the credit worthiness of the customers or receiving advance payment. The history of defaults has been minimal and outstanding trade receivables are monitored on a regular basis. For credit risk on the loans to various parties, including its subsidiary, the Company does not expect any material risk on account of non-performance by any of the parties.
c. Liquidity Risk
Liquidity risk refers to the risk that the Company may fail to honour its financial obligations in accordance with terms of contract. To mitigate such liquidity risk the Company maintains sufficient balance of cash and cash equivalents together with availability of funds through an adequate amount of committed credit facilities to meet its obligations when due. The table below provides the details regarding the remaining contractual maturities of significant financial liabilities as on the reporting date:-
d. Agricultural Risk
The Company is mainly engaged in the business of cultivation and manufacturing of tea. Cultivation of tea being an agricultural activity, there are certain specific financial risks. These financial risks arise mainly due to adverse weather conditions and logistic problems inherent to remote areas. The Company manages the above financial risks in the following manner:-
- Sufficient inventory levels of agro chemicals, fertilizers and other inputs are maintained so that timely corrective action can be taken in case of adverse weather conditions.
- Slightly higher level of consumable stores viz. packing materials and HSD are maintained in order to mitigate financial risk arising from logistic problems.
- Sufficient working capital facility is obtained from banks in such a way that cultivation, manufacture and sale of made tea is not adversely affected even in times of adverse conditions.
7. Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the Company is to maximize shareholders' value.
The Company manages its capital structure and makes adjustments in the light of the changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
In order to achieve the overall objective as elicited above, the Company's capital management among other things, aims to ensure that it meets the financial covenants attached to interest bearing loans and borrowings that define the capital structure requirements. There have been no breaches in the financial covenants of any interest bearing loans and borrowings in the reported periods.
8. Operating Segments
The Company has only one business segment; that of manufacturing and selling of black tea. Segment information has been provided in the consolidated financial statements which are presented in the same financial report in accordance with Ind AS 108, Operating Segments.
9. Comparability of Other Current Assets and Other Current Liabilities
Consequent to introduction of Goods and Service Tax during the financial year 2017-18, inter-state stock transfer of goods has become taxable with availability of input tax credit. As a result, movement in the figures of Other Current Assets and Other Current Liabilities is not comparable with that of earlier periods.
10. Details of Replanting & Replacement
During the year ended 31st March, 2018 Rs. 173.50 lakhs has been incurred on account of Replanting & Replacement of tea bushes (during the year ended 31st March, 2017 Rs.185.88 lakhs) out of which Rs. 9.78 lakhs has been charged off to the Statement of Profit and Loss as expense (during the year ended 31st March, 2017 Rs. 10.19 lakhs).
11. Value of Green Leaf Produced in the Company's Own Tea Estates
Value of green leaf produced in the Company's own tea estates is not ascertainable. However, cost of materials consumed represents only cost of green leaf purchased from other tea growers.
12. Donation to Political Parties
During the year ended 31st March, 2018 donation to political parties is Rs. Nil (during the year ended 31st March, 2017 Rs. 10.00 lakhs each to Indian National Congress Party and Bharatiya Janata Party).
13. Loans, Advances, Trade & Other Receivables
No loans, advances, trade or other receivables were due from directors or other officers of the company either severally or jointly with any other person, except as has been disclosed. Nor were any loans, advances, trade or other receivables due from firms or private companies respectively in which any director is a partner, a director or a member, except as has been disclosed.
‘Previous year figures are inclusive of Service Tax.
14. Market Value of Equity Shares held in Subsidiary
The shares of B & A Packaging India Ltd. have been thinly traded in the Stock Exchange from the financial year 2002 onwards till date and therefore valuation as certified by the company's auditor has been taken as market value of these shares.
15. Previous year’s figures have been regrouped and rearranged wherever considered necessary.
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