Noted 3.1 : Wholly owned subsidiary of the Corporation has purchased 8.60 lakh shares, 2 lakh shares and 1.08 lakh shares of National Peroxide Limited (NPL) on 06 January 2023, 09 January 2023 and 11 January 2023 respectively. With the acquisition of additional equity shares, NPL has become an associate of the Corporation effective 09 January 2023. Accordingly, the Corporation has recorded the investment in equity instruments in NPL at fair value through other comprehensive income upto 09 January 2023, reclassified to cost w.e.f said date.
# Subsequent to 31 March 2023, the aggregate market value of quoted investments exceeds the carrying value as at the reporting date.
III Risk management strategies related to agricultural activities
The Corporation is exposed to the following risks relating to its plantation activity
i) Regulatory and environmental risks
The Corporation is subject to laws and regulations in the country in which it operates. It has established various environmental policies and procedures aimed to comply with the local environmental and other laws.
ii) Supply and demand risks
The Corporation is exposed to risks arising from fluctuations in the price and sales volume of produce (tea and coffee). When possible, the Corporation manages this risk by aligning its produce to market supply and demand. Management regularly analyses industry trend for projected produce and prices.
iii) Climate and other risks
The Corporation's plantations are exposed to the risk of damage from climatic changes, pests, forest fires and other natural forces. The Corporation has extensive processes in place aimed at monitoring and mitigating those risks, including regular estate health inspections and industrial pest surveys.
During the year, the Company made no write-offs of trade receivables, it does not expect to receive future cash flows or recoveries from trade receivables previously written off.
Trade receivables are non-interest bearing and are generally on credit terms in line with applicable industry norms.
Refer note 39 for information on credit risk and market risk.
Refer note 50(a) for ageing schedule.
Refer note 20 for information on assets provided as collateral or security for borrowings or financing facilities availed by the Corporation.
*The corporation has impaired trade receivables amounting to ' 22.18 from Go Airlines (India) Limited during the current year (refer note 55).
During the year, the Board of directors of the corporation at its meeting held on 23 November 2022 had approved sale of its plots situated at Chennai District, Tamil Nadu namely; Plot No. 342, 343 and 114. The total consideration agreed is ' 307.50, ' 329.74 and ' 758.49 respectively. The cost to sell these assets is ' 28.21. These assets have been classified as assets held for sale as it meets the criteria laid down under Indian Accounting Standard 105, Non-current Assets Held for Sale and Discontinued Operations.
The Corporation has recognised impairment loss of ' 35.61 (31 March 2022 : ' NIL), based on agreement sales value.
(d) Rights, preferences and restrictions attached to each class of shares
The Corporation has only one class of equity shares having par value of ' 2 per share. Each holder of equity share is entitled to one vote per equity share. The Corporation declares and pays dividends in INR. The dividend (refer note 44) 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 Corporation, the holders of equity shares will be entitled to receive assets of the Corporation remaining after distribution of all preferential amounts. The distribution will be in proportion to the number of fully paid-up equity shares held by the shareholders.
(e) Aggregate number of bonus shares issued or buy back of shares during the period of five years immediately preceding the reporting date
The Corporation has neither issued bonus shares nor there has been any buy back of shares during five years immediately preceding 31 March 2023.
(f) shares issued for consideration other than cash
The Corporation has not issued any shares for consideration other than cash.
a) Rupee term loans from The Shamrao Vithal Co-operative Bank Limited ('SVC Bank') of ' 10,000.00 (current principle outstanding - ' 8,656.25), each repayable in 25 quarterly ballooning instalments starting from March 2022 and May 2022. The loan of ' 5,000.00 is secured by way of first pari passu charge by way of an equitable mortgage by deposit of title deeds of Elkhill estates in favour of SVC Bank and another loan of ' 5,000.00 is secured by way of first pari passu charge by way of an equitable mortgage by deposit of title deeds of Mudis estates in favour of SVC Bank. The rate of interest on the loans is ranging from 8.00% to 10.50% per annum ('p.a.'). Part of loans amounting to ' 1,468.75 which is repayable within next one year is classified under "Borrowings (current)" (refer note 20).
b) Rupee term loan from Cosmos Co-operative Bank Limited ('Cosmos Bank') of ' 5,000.00 (current principle outstanding - ' 5,000.00) which is repayable in 22 quarterly instalments starting from June 2023. The loan is secured by way of first pari passu charge by way of an equitable mortgage by deposit of title deeds of Mudis estates in favour of Cosmos Bank. The rate of interest on the loan is ranging from 8.00% to 10.00% p.a. Part of loan amounting to ' 500.00 which is repayable within next one year is classified under "Borrowings (current)" (refer note 20).
c) Rupee term loan from IDFC First Bank Limited ('IDFC Bank') of ' 5,000.00 (current principle outstanding -' 3,750.00) which is repayable in 6 half-yearly ballooning instalments starting from September 2022. The loan is secured by way of first pari passu charge by way of an equitable mortgage by deposit of title deeds of Mudis estates in favour of IDFC Bank. The rate of interest on the loan is ranging from 8.00% to 10.00% p.a. Part of loan amounting to ' 1,250.00 which is repayable within next one year is classified under "Borrowings (current)" (refer note 20).
d) Rupee term loan from CSB Bank Limited ('CSB Bank') of ' 5,000.00 (current principle outstanding -' 3,125.00) has been transferred to IDFC First Bank Limited in January 2023, which is repayable in 5 quarterly instalments. The loan is secured by way of first pari passu charge by way of an equitable mortgage by deposit of title deeds of Mudis estates in favour of IDFC First Bank Limited. The rate of interest on the loan is ranging from 8.00% to 11.00% p.a. Part of loan amounting to ' 2,500.00 which is repayable within next one year is classified under "Borrowings (current)" (refer note 20).
e) Rupee term loan under the Emergency Credit Line Guarantee Scheme [ECLGS], from Federal Bank Limited of ' 1,358.00 (current principle outstanding - ' Nil) which was secured by way of first pari passu charge created by way of an equitable mortgage by deposit of title deeds of Mudis estates along with factory buildings in favour of Federal Bank Limited, which has been repaid in April 2022. The rate of interest on the loan is 9.00%.
f) Principal protected market linked Non-convertible debentures ('PP-NCD') aggregating to ' 5,000.00 (current principle outstanding - ' 5,000.00) were issued on 28 March 2023 by way of private placement. PP-NCD's are repayable on 23rd April, 2024. PP-NCD's are secured by way of first pari passu charge by way of an equitable mortgage by deposit of title deeds of Mudis estates in favour of the Mitcon Credentia Trusteeship Services Limited (debenture trustee). The coupon rate of PP-NCD is 9.25% p.a. payable quarterly. No instalment is due within next one year.
The Corporation has used the borrowings for the specific purpose for which it was availed during current and previous year.
There is no default in repayment of borrowings and interest during the year ended 31 March 2023 and 31 March 2022.
a) Non-convertible debentures ('NCD-II') aggregating to ' 7,500.00 [current principle outstanding -' 7,500.00 (31 March 2022'7,500.00)] were issued on 28 September 2020 and listed on Wholesale Debt Market segment of BSE. NCD-II are repayable on 28 September 2023. The NCD-II have a Put and Call option excercisable at the end of every 1 year, starting from 28 September 2021. NCD-II are secured by way of first pari passu charge created by way of an equitable mortgage by deposit of title deeds of Elkhill estates in favour of the IDBI Trusteeship Services Limited (debenture trustee). The coupon rate of NCD-II is 8.80% p.a. payable quarterly.
b) Principal protected market linked Non-convertible debentures ('PP-NCD') aggregating to ' 12,500.00 [current principle outstanding - ' Nil (31 March 2022 - ' 12,500.00)] were issued on 30 March 2021 by way of private placement and listed on Wholesale Debt Market segment of BSE. PP-NCD were secured by way of first pari passu charge created by way of an equitable mortgage by deposit of title deeds of Mudis estates in favour of the debenture trustee. PP-NCD's are repaid on 29 March 2023 in the current year. The coupon rate of PP-NCD is 7.50% p.a. at maturity.
c) Non-convertible debentures ('NCD') aggregating to ' 10,000.00 [current principle outstanding -' 5,000.00 (31 March 2022 ' 10,000.00)] were issued on 30 April 2020 by way of private placement and listed on Wholesale Debt Market segment of BSE. NCD's worth ' 5,000 has been repaid subsequently on 30 April 2023. NCD's are secured by first pari passu charge created by way of an equitable mortgage by deposit of title deeds of Elkhill estates in favour of debenture trustee. The coupon rate of NCD is 8.80% p.a. payable quarterly.
d) Principal protected market linked Non-convertible debentures ('PPML-NCD') aggregating to ' 5,000.00 [current principle outstanding - ' 5,000.00 (31 March 2022'5,000.00)] were issued on 25 October 2021 by way of private placement and listed on wholesale debt market segment of BSE. PPML-NCD are repayable on 25 January 2024. PPML-NCD are secured by way of first pari passu charge by way of an equitable mortgage by deposit of title deeds of Mudis estates in favour of the Debenture trustee. The coupon rate of PPML-NCD is 7.25% p.a. payable at maturity.
e) Cash credit / WCDL from Axis Bank Limited ' 2,352.00 (31 March 2022'86.63) is secured by hypothecation of present and future stocks, trade receivables (book debts) and other current assets on pari-passu basis and a collateral on Elkhill estates. The rate of interest is ranging from 9.00% to 11.00% p.a.
f) Cash credit / WCDL from HDFC Bank Limited ' 1,100.47 (31 March 2022 ' 74.84) is secured by hypothecation of present and future stocks, book debts on pari-passu basis. The rate of interest on the loan is ranging from 9.00% to 11.00% p.a.
g) Packing Credit/ Cash Credit / WCDL / short term loan from The Hongkong and Shanghai Banking Corporation Limited of ' 1,000.00 (31 March 2022 ' 1,000.00) is secured by hypothecation of present and future stocks, book debts on pari-passu basis and a collateral on Mudis estates. The rate of interest on the loan is ranging from 9.00% to 11.00% p.a.
h) Packing credit/ WCDL/ short term loan from Federal Bank Limited of ' 1,730.02 (31 March 2022 ' Nil) is secured by hypothecation of present and future stocks, book debts and other current assets on pari-passu basis. The rate of interest on the packing credit is 6 Months LIBOR (London Inter-bank Offered Rate) 1.00 - 3 .00% and other loan is 9.00% -11.00% p.a.
i) Cash credit / Overdraft from IDFC FIRST Bank Limited of ' 1,966.88 (31 March 2022'488.88) is secured by way of first pari passu charge created by way of an equitable mortgage by deposit of title deeds of Mudis estates. The rate of interest is 12 Months MCLR (Marginal Cost of Lending Rate) 0.50% to 2.00%.
j) The rate of interest on ICD is ranging from 8.75% to 9.25% p.a. (31 March 2022: 8.75% to 9.25% p.a.)
k) The Company has issued commercial paper of ' 7,000.00 (31 March 2022 ' NIL) which carries coupon 8.00% to 9.00%. The tenor for ' 1,000.00 is 90 days and for the balance is 62 days.
l) Cash credit (CC) loan is repayable on demand.
m) The outstanding amount in above footnotes are exclusive of EIR impact as per Ind AS 109 "Financial instruments
The Corporation has used the borrowings for the specific purpose for which it was availed during current and previous year.
There is no default in repayment of borrowings and interest during the year ended 31 March 2023 and 31 March 2022.
Refer note 39 for information on credit risk liquidity risk and market risk.
Refer note 53 (b) on Borrowing secured against current assets.
36 The Corporation was having a Company Secretary during the year, as required by Section 203 of the Companies Act, 2013, who has resigned with effect from 24th April 2023. Accordingly, the financial statements of the Corporation have not been authenticated by the Company Secretary, as required by Section 134 of the Companies Act,2013.
37 LeasesThe disclosures required in accordance with Ind AS 116 "Leases" are as follows:(a) Corporation as a lessee
The Corporation's leased assets primarily consists of leases for office premises and vehicles having different lease terms. There are several lease agreements with extension and termination options, for which management exercise significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. Since it is reasonable certain to exercise extension option and not to exercise termination option, the Corporation has opted to include such extended term and ignore termination option in determination of lease term.
Above figures are excluding amounts pertaining to discontinued operations for the year ended 31 March 2023 of ' 78.55 and ' 75.80 for the year ended 31 March 2022. Employer's contribution towards employees' state insurance and labour welfare fund, which is insignificant, have been included in the line item "Contribution to provide fund and other funds" in note 29. Also, the contribution of the Corporation is limited to the amount contributed and it has no further contractual or constructive obligation.
(b) Defined benefit plans- Gratuity:
The Corporation has The Bombay Burmah Trading Corporation Limited Covenanted Staff Gratuity Fund, The Bombay Burmah Trading Corporation Limited Employees' Gratuity Fund which are funded defined benefit plans for qualifying employees.
(i) In respect of covenanted staff covered under The Bombay Burmah Trading Corporation Limited Covenanted Staff Gratuity Fund: The gratuity scheme provides for lump sum payment to vested employees based on a combination of factors such as length of service and manner of cessation of service viz. retirement, death / disability, termination. In such case, lump sum payment will be made for an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months subject to the maximum amount payable as per the Payment of Gratuity Act, 1972.
(ii) In respect of non-covenanted staff covered under The Bombay Burmah Trading Corporation Limited Employees' Gratuity Fund. The gratuity scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months subject to the maximum amount payable as per the Payment of Gratuity Act, 1972.
Vesting under the above scheme occurs only upon completion of 5 years of service, except in case of death or disability. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each standalone balance sheet date.
These assumptions were developed by the management with the assistance of independent actuarial appraiser. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management's historical experience. The estimates of future salary growth rate considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
7 The Corporation expects to make a contribution of ' 386.88 (31 March 2022: ' 390.10) to the defined benefit plans during the next financial year.
8 The weighted average duration of the DBO at the end of the reporting period ranges between 11.14 to 11.43 years (31 March 2022: 10.32 to 17.09 years).
9 Sensitivity analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, salary growth rate, attrition rate and mortality rate. The sensitivity analysis below have 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 results of the sensitivity analysis is given below:
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions are used to estimate the fair values:
1. Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, trade payables, other current financial assets / liabilities approximate their carrying amounts largely due to short term maturities of these instruments. These are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.
2. Financial instruments with fixed and variable interest rates are evaluated by the Corporation based on parameters such as interest rates and individual credit worthiness of the counter-party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts. These are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.
3. The fair values for deposits were calculated based on cash flows discounted using lending rate on the date of initial recognition. The lease liability is initially measured at amortised cost at the present value of the future lease payments and are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. Accordingly, all these are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.
4. Investment in quoted equity instruments are classified as Level 1 fair values in the fair value hierarchy. Investments in unquoted equity instruments of companies and co-operative societies and government securities are classified as Level 2 fair values in the fair value hierarchy as valuation of these instruments is based on the recent market transactions.
B. Fair value hierarchy and method of valuation
The Corporation uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data (unobservable inputs).
C. Financial risk management
The Corporation has exposure to the following risks arising from financial instruments:
i) Credit risk
ii) Liquidity risk
iii) Market risk
Risk management framework
The Corporation's Board of Directors has overall responsibility for the establishment and oversight of the Corporation's risk management framework. The Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Corporation's risk management policies. The committee reports regularly to the Board of Directors on its activities.
The Corporation's risk management policies are established to identify and analyse the risks faced by the Corporation, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Corporation's activities. The Corporation, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit Committee oversees how management monitors compliance with the Corporation's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Corporation. The Audit Committee is assisted in its oversight role by internal audit function. Internal audit function includes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
i) Credit risk
Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises from cash and cash equivalents, bank balances other than cash and cash equivalents, other financial assets as well as credit exposures to customers including outstanding receivables. The maximum exposure to credit risk is equal to the carrying value of the financial assets.
Trade receivables
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Corporation causing financial loss. It arises from cash and cash equivalents, deposits with banks and financial institutions, security deposits, loans given and principally from credit exposures to customers relating to outstanding receivables. The Corporation's maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date.
The Corporation continuously monitors defaults of customers and other counterparties, identified either individually or by the Corporation, and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and / or reports on customers and other counterparties are obtained and used. The Corporation's policy is to deal only with creditworthy counterparties.
In respect of trade and other receivables, the Corporation is not exposed to any significant credit risk exposure to any single counterparty or any company of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical
areas. The Company has very limited history of customer default, and considers the credit quality of trade receivables for evaluation of expected credit loss.
Outstanding customer receivables are regularly monitored.
Other financial assets
The Corporation periodically monitors the recoverability and credit risks of its other financial assets. The Corporation evaluates 12 months expected credit losses for all the financial assets for which credit risk has not increased. In case credit risk has increased significantly, the Company considers life time expected credit losses for the purpose of impairment provisioning.
The Corporation has considered financial condition, current economic trends, forward looking macroeconomic information, analysis of historical bad or doubtful receivables and ageing of receivables related to cash and cash equivalents, bank balances other than cash and cash equivalents, margin deposits, security deposits, finance lease assets and other financial assets. In most of the cases, risk is considered low since the counterparties are reputed organisations with no history of default to the Company and no unfavourable forward looking macro economic factors. Wherever applicable, expected credit loss allowance is recorded.
* During the year ended 31 March 2022 the top customer contributing 26.71% of revenue belongs to real estate division and this transaction is of non-recurring nature. The variance in revenue from top five customers during the year ended 31 March 2023 as against year ended 31 March 2022 is also on account of the aforementioned non-recurring transaction.
ii) Liquidity risk
Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they become due. The Corporation manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Corporation manages its liquidity needs by monitoring scheduled debt servicing payments for financial liabilities as well as forecast cash inflow and outflows due in day to day business. In addition, processes and policies related to such risks are overseen by senior management.
(iii) Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables, foreign currency payables and borrowings.
The Corporation is exposed to the following components of market risk:
a) Foreign currency risk
b) Interest rate risk
c) Price risk
a) Foreign Currency risk
Foreign currency risk is the risk that future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Corporation primarily deals in United States Dollars ('USD') , Great Britian Pound ('GBP') and 'EURO'. The Corporation mainly has foreign currency trade payables and trade receivables which are unhedged and exposed to foreign currency risk.
The Corporation evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies. There are earnings from customers in foreign currency which act as a natural hedge against foreign currency risk.
The above currency risk exposure does not include PCFC loan availed amounting to ' 230.02 (31 March 2022: ' Nil) [USD: 0.28 Million (31 March 2022: Nil)] as there exists a natural hedge against the currency risk in respect of such loan.
Corporation has accumulated net exposure to foreign currency risk amounting to ' 2,024.46 (31 March 2022: ' 1,737.96).
b) Interest rate risk
The Corporation's policy is to minimize interest rate cash flow risk exposures on long-term financing. The Corporation's exposure to the risk of changes in market interest rates relates primarily to the Corporation's variable rate borrowings. The Corporation is not exposed to changes in market interest rates in so far it relates to fixed rate borrowings.
c) Price risk
Exposure from investments in equity instruments
The Corporation's exposure to price risk arise from investments in equity instruments classified in the balance sheet at FVTPL or FVOCI. To manage its price risk arising from investments, the Corporation diversifies its portfolio. Diversification of portfolio is done in accordance with the limits set by the Corporation.
Senstivity
The table below summarise the impact of increase/decrease of the index on the Corporation's equity and standalone statement of profit and loss. The analysis is based on the assumption that the price of the instrument has increase by 2% or decreased by 2% with all other variables held constant.
40 Capital management
The Corporation's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position.
The Corporation monitors capital using a ratio of 'adjusted net debt' to 'total capital'. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings (including interest accrued), excluding inter-group borrowings, less cash and cash equivalents.
41 Contingent liabilities and capital commitments(i) Contingent liabilities classified as claims against the company not acknowledged as debt:
a) Sundry claims against the Corporation by employees and others not admitted (amount indeterminate). In the opinion of the management, the outcome of these claims is likely to be immaterial.
b) Damages and interest on alleged unauthorised occupation of residential premises determined by the Estate Officer of Life Insurance Corporation of India up to 31 March 2023 and disputed by the Corporation ' 252.58 (31 March 2022: ' 242.47).
c) The Corporation had received 2 demand notices for differential lease rent in respect of Singampatti estate rent being arrears aggregating to ' 23,192.58 (31 March 2022: ' 23,192.58) for the period from 1958 to 2019. The Corporation has challenged the said demands by way of writ petition before Madras High Court and the said demands have been stayed by the Honorable High Court.
d) Matters under dispute in respect of the Electromags Automotive Products Private Limited (amalgamated with the Corporation in past years) for earlier years are:
- relating to income tax demand of ' 6.52
- relating to custom and sales tax demand of ' 9.19
e) Income tax matter under dispute of A.Y. 2017-18'86.48 (31 March 2022 : ' 86.48).
(ii) Contingent liabilities classified as other money for which the company is contingently liable:
a) The Supreme court of India in the month of February 2019 had passed a judgement relating to definition of wages under The Employees' Provident Funds and Miscellaneous Provisions Act, 1952. However, considering that there are numerous interpretative issues relating to this judgement and in the absence of reliable measurement of the provision for the earlier periods, the Corporation has made a provision for provident fund contribution pursuant to the judgement. The Corporation will evaluate its position and update its provision, if required, on receiving further clarity on the subject. The Corporation does not expect any material impact of the same.
(iii) Capital commitments:
a) Estimated amount of contracts remaining to be executed on capital account to the extent not provided for (net of advances) is ' 42.48 (31 March 2022 : ' 94.82).
Notes:
i) It is not practicable for the Corporation to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.
ii) The amounts disclosed above represent the best possible estimates arrived at on the basis of available information and do not include any penalty payable.
42 Discontinued operationa) disposal of Coffee business
The Corporation has entered into a binding agreement with Orange County Resorts and Hotels Private Limited to transfer its Coffee Business by way of itemised sale for a consideration of ' 29,105.
Hence, Coffee business exceptional gain year ended 31 March 2023 amounting to ' 24,372.51 on such transfer are presented separately in the standalone statement of profit and loss, under Indian Accounting Standard 105, Non-current Assets Held for Sale and Discontinued Operations after netting off the expenses incurred against sale consideration.
The management has identified enterprises which qualify under the definition of micro enterprises and small enterprises, as defined under the MSMED Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at year end has been made in the standalone financial statements based on the information received and available with the Corporation and has been relied upon by the statutory auditors.
47 Segment information
The Corporation has opted to present data related to its segments in the consolidated financial statements, in accordance with Ind AS 108 "Operating Segments". No disclosures regarding segments are therefore presented in these standalone financial statements.
Investments in share capital of related parties of the Corporation is not considered under 'Outstanding balances' as these are not considered 'outstanding' exposures.However, during the current year, the corporation has recognised impairment for investments in Sea Wind Investment and Trading Corporation Limited (refer note 55).
53 Additional regulatory information required by Division II Schedule III of the Act
a) details of benami property
The Corporation is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Further, no proceedings have been initiated or pending against the Corporation for holding any benami property under the act and rules mentioned above.
b) Borrowing secured against current assets
The Corporation has sanctioned borrowings and financing facilities from banks on the basis of security of current assets. The quarterly returns or statements of current assets are duly filed by the Corporation with banks on regular basis and the required reconciliation is presented below.
Corporation is not required to submit details in relation to Tanzania branch, vending division and real estate division to the bank. Accordingly, such details are not included above. Further, Corporation is also not required to submit details of current assets, other than inventory and trade receivables, in the Drawing Power ('DP') statement.
c) Wilful defaulter
The Corporation has not been declared wilful defaulter by any bank or financial institution or any other lender.
e) Compliance with number of layers of companies
The Corporation has complied with the number of layers prescribed under section 2(87) of the Act.
f) Compliance with approved scheme of arrangements
The Corporation has not entered into any scheme of arrangement in terms of section 230 to 237 of the Act for the year ended 31 March 2023 and 31 March 2022.
g) utilisation of borrowed funds and share premium
The Corporation has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to any other person or entity, including foreign entity ('Intermediaries') with the understanding (whether recorded in writing or otherwise) 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 Corporation ('Ultimate Beneficiaries') or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Corporation has not received any fund from any person or entity, including foreign entity ('Funding Party') with the understanding (whether recorded in writing or otherwise) that the Corporation shall:
a. 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
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
h) undisclosed income
No income has been surrendered or disclosed as income during the current and previous year.
i) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current and previous year.
j) Registration of charges or satisfaction with Registrar of Companies ('RoC')
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
54 As per the transfer pricing rules, the Corporation has examined international transactions and documentation in respect thereof to ensure compliance with the said rules. The management does not anticipate any material adjustments with regard to the transactions involved.
55 Go Airlines (India) Limited ('Go Air'), an associate of the Corporation has been under financial constraints due to non-supply and failure of engines by Pratt & Whitney (P&W) and the lessors demanding return of aircrafts on account of P&W not providing the engines required to sustain the operations. Considering the facts and circumstances, Go Air has filed a voluntary application on 2 May 2023 for initiation of Corporate Insolvency Resolution Process (CIRP) and grant of interim moratorium to preserve its assets and keep it as a Going Concern. On 10 May 2023, NCLT has admitted the application and granted moratorium and appointed an Interim Resolution Professional (IRP) to take steps to keep Go Air as a Going Concern.
56 Authorisation of standalone financial statements
The standalone financial statements as at and for the year ended 31 March 2023 were approved by the Board of Directors on 26 May 2023.
57 Other matters
Comparative figures have been regrouped, reclassified and rearranged wherever necessary, to conform to current year's presentation, which are not considered material to these financial statement.
these are the significant accounting policies and other explanatory information referred to in our report of even date
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