n) Provisions, contingent liabilities and contingent assets
Provisions are recognised when the Corporation has a present obligation as a result of past events, for which it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate of the amount can be made. A disclosure for a contingent liability is made where there is a
possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Corporation or a
present obligation that arises from the past events where it is either not probable that an outflow of resources will
be required to settle the obligation or a reliable estimate of the amount cannot be made. Provisions are reviewed
regularly and are adjusted where necessary to reflect the current best estimates of the obligation. Where the
Corporation expects a provision to be reimbursed, the reimbursement is recognised as a separate asset, only when
such reimbursement is virtually certain. Contingent asset is not recognised in the standalone financial statements.
However, it is recognised only when an inflow of economic benefits is probable.
o) Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement
at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent
on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that
right is not explicitly specified in an arrangement.
(i) Corporation as a lessee
The Corporation's lease asset class consists of leases for buildings and vehicles. The Corporation assesses
whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the use of an identified asset, the Corporation assesses
whether: (i) the contract involves the use of an identified asset (ii) the Corporation has substantially all of the
economic benefits from use of the asset through the period of the lease and (iii) the Corporation has the right
to direct the use of the asset.
At the date of commencement of the lease, the Corporation recognises a right of use asset ('ROU') and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of
twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the
Corporation recognises the lease payments as an operating expense on a straight-line basis over the term of the
lease.
Certain lease arrangements include the options to extend or terminate the lease before the end of the lease
term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be
exercised. The ROU assets are initially recognised at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial
direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation
and impairment losses, if any.
ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease
term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in¬
use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the recoverable amount is determined for the Cash
Generating Unit ('CGU') to which the asset belongs.
The lease liability is initially measured at amortised cost at the present value of the future lease payments. The
lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with
a corresponding adjustment to the related ROU asset if the Corporation changes its assessment on whether it
will exercise an extension or a termination option.
Lease liabilities and ROU assets have been separately presented in the standalone balance sheet and lease
payments have been classified as financing cash flows.
(ii) Corporation as a lessor
Leases for which the Corporation is a lessor is classified as a finance or operating lease. Whenever the terms of
the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified
as a finance lease. All other leases are classified as operating leases. When the Corporation is an intermediate
lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as
a finance or operating lease by reference to the ROU asset arising from the head lease. For operating leases,
rental income is recognised on a straight-line basis over the term of the relevant lease.
p) Financial instruments
(i) Initial recognition and measurement - The Corporation recognises financial assets and liabilities when it
becomes a party to the contractual provisions of the instrument. Financial assets (excluding Trade Receivables)
and liabilities are recognised at fair value on initial recognition. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and liabilities that are not at fair value through profit or loss are
added to the fair value on initial recognition. Regular way purchase and sale of financial assets are recognised
on the trade date.
Trade receivables are recognised at their transaction price unless those contain significant financing component
determined in accordance with Ind AS 115 and subsequently measured at amortised cost using the effective
interest method, less provision for impairment.
(ii) Subsequent measurementNon derivative financial instruments
(a) Financial assets carried at amortised cost - A financial asset is subsequently measured at amortised cost
if it is held within a business model whose objective is to hold the asset in order to collect contractual cash
flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
(b) Financial assets at fair value through other comprehensive income ('FVOCI') - A financial asset is
subsequently measured at FVOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
(c) Financial assets at fair value through profit or loss ('FVTPL') - A financial asset which is not classified in
any of the above categories are subsequently fair valued through profit or loss.
(d) Financial liabilities - Financial liabilities are subsequently carried at amortised cost using the effective
interest method. For trade and other payables maturing within one year from the balance sheet date, the
carrying amounts approximate fair value due to the short maturity of these instruments.
(iii) De-recognition of financial instruments
The Corporation derecognises a financial asset when the contractual right to receive the cash flows from the
financial asset expire or it transfers the financial asset. A financial liability is derecognised when the obligation
under the liability is discharged, cancelled or expires.
(iv) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency
or bankruptcy of the group or the counterparty.
q) Biological assets
The Corporation has biological assets in the form of tea leaves. Biological assets are measured at fair value less costs
to sell, with any change therein recognised in the standalone statement of profit and loss under 'other income' or
'other expenses', as the case may be.
r) Exceptional items
When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence
that their disclosure is relevant to assist users in understanding the financial performance achieved and in making
projections of future financial performance, the nature and amount of such material items are disclosed separately
as exceptional items.
s) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, balance with banks in current account and demand deposits,
together with other short-term, highly liquid investments (original maturity less than three months) that are readily
convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
t) Equity shares
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
u) Segment reporting
Segments are identified based on the manner in which the Corporation's Chief Operating Decision Maker ('CODM')
decides about resource allocation and reviews performance.
Segment results that are reported to the CODM include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Segment capital expenditure is the total cost incurred during the period
to acquire PPE and intangible assets.
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.
v) Events after reporting date
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of
the reporting period, the impact of such events is adjusted within the standalone financial statements. Where the
events are indicative of conditions that arose after the reporting period, the amounts are not adjusted, but are
disclosed if those non-adjusting events are material.
w) Dividend distribution to equity holders
The Corporation recognises a liability to make cash or non-cash distributions to equity holders of the Corporation
when the distribution is authorised and then the distribution is no longer at the discretion of the Corporation. As
per corporate laws in India, a distribution is authorised when it is approved by the shareholders, unless it is interim
dividend. A corresponding amount is recognised directly in equity.
x) Non-current assets held for sale
Non-current assets and disposal group of assets are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use. This condition is regarded as
met only when the asset (or disposal group) is available for immediate sale in its present condition subject only
to terms that are usual and customary for sales of such asset (or disposal group) and its sale is highly probable.
Management must be committed to the sale, which should be expected to qualify for recognition as a completed
sale within one year from the date of classification.
Non-current assets (and disposal group) classified as held for sale are measured at the lower of their carrying amount
and fair value less costs to sell.
PPE and intangible assets once classified as held for sale/distribution are not depreciated or amortised. A disposal
Corporation qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or
is classified as held for sale, and:
• Represents a separate major line of business or geographical area of operations,
• Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of
operations.
1 (G) Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2026, MCA has notified the
Following amendment to:
(i) Ind AS 1 - Presentation of Financial Statements, applicable w.e.f. April 1, 2025: The amendment relates to classification
of liabilities as current or non-current and non-current liabilities with covenants. In the context oF classifying a liability
as current, it removes the requirement of existence of a right to defer settlement for at least 12 months after the reporting
date and instead requires that the said right should exist on the reporting date and have substance. The amendment also
introduces guidance on classification of liabilities with covenants. The Company has no impact of these amendments in its
classification criteria of current and non-current liabilities.
(ii) Ind AS 7 - Statement oF Cash Flows and Ind AS 107 - Financial Instruments: Disclosures, applicable w.e.F. April 1, 2025 - The
amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance arrangements
and explain the nature oF the arrangements, the carrying amount oF liabilities and the range oF payment due dates. Ind AS
107 has been amended to add supplier finance arrangements as a factor that may cause concentration of liquidity risk. The
Company has reviewed the amendment and based on its evaluation has determined that the Company has no impact on its
financial statements.
(iii) Ind AS 12 - Income tax: International Tax ReForm - Pillar Two Model Rules applicable immediately - The amendments provide
a temporary mandatory relieF From deFerred tax accounting For top-up tax and disclose that they have applied the relieF. The
Company has reviewed the amendment and based on its evaluation has determined that the Company has no impact on its
financial statements.
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 tea produce. 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.
Board of Directors had approved divestment of assets on 18 April 2023 related to Tea Plantations at Tanzania for a total
consideration amounting to ? 9.85 (USD 1.2 Million), subject to adjustments, as applicable. Further, such consideration had
been revised to ? 9.10 (USD 1.1 Million), as approved by the Board in their meeting held on 10 November 2023. Accordingly,
assets of Marvera and Hekulo estate situated at Tanzania have been sold during the current financial year and previous
financials year at a gain of ? 3.13 and ? 4.07 respectively which are recorded as exceptional item in the standalone financial
statements.
Additionally on 26 March 2026, the Board of Directors had approved the divestment of assets related to Tea Plantations at
Nilgiris District Tamil Nadu (hereinafter referred to as "Dunsandle estate") which are to be executed in phase manner for
consideration amounting to ? 95.00 and ? 25.00 in first and second phase respectively. Accordingly, assets of Dunsandle
estate (first phase) has been sold during the current financial year at a gain of ? 87.69 which are recorded as exceptional
item in the standalone financial statements. The corporation has received an advance amounting ? 15.00 (classified as
"Liabilities for asset held for sale") towards the remaining assets amounting to ? 0.48 to be sold in second phase which
are currently classified as assets held for sale as at 31 March 2026 as these assets meet the criteria laid down under Indian
Accounting Standard 105, "Non-current Assets Held for Sale and Discontinued Operations". There is no requirement to
recognise impairment loss as the estimated fair values of these assets are higher than their carrying value. [also refer note
32]
Footnotes:
a) Cash credit / WCDL From The Hongkong and Shanghai Banking Corporation Limited of ? Nil (31 March 2025: ? 21.00) was
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.
b) Cash credit / WCDL From Axis Bank Limited ? 1.62 (31 March 2025: ? 12.08) is secured by hypothecation oF present and
future stocks, trade receivables (book debts) and other current assets on pari-passu basis. The rate of interest is ranging
From 9.00% to 11.00% p.a.
c) Cash credit / WCDL From HDFC Bank Limited ? 0.97 (31 March 2025: ? 9.90) is secured by hypothecation oF present and
Future stocks and book debts on pari-passu basis. The rate oF interest on the loan is ranging From 9.00% to 11.00% p.a.
d) Cash credit / OverdraFt From IDFC FIRST Bank Limited oF ? Nil (31 March 2025: ? 19.86) was 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%.
e) Rupee term loan From Hero Fincorp Limited ('HFL') of ? 75.00 [current principal outstanding : ? Nil (31 March 2025: ? 67.50)]
which was repayable in quarterly instalment till September 2025. The loan was secured by way of bank deposits of ? 7.50 in
Favour oF HFL. The rate oF interest on the loan was 10.50% p.a.
F) Rupee term loan From Mahindra & Mahindra Financial Services Limited ('MMFSL') oF ? 25.00 [current principal outstanding :
? Nil (31 March 2025: ? 6.35)] which was repayable in monthly instalment till August 2025. The loan was secured by way oF
first pari passu charge by way oF an equitable mortgage by deposit oF title deeds oF Electromags Unit in Favour oF MMFSL.
The rate oF interest on the loan is ranging From 10.25% to 11.25% p.a.
g) The rate oF interest on ICD was 8.75% (31 March 2025: 8.75%). Principal was repaid on maturity and interest was paid on halF
yearly basis.
h) The Company has outstanding commercial paper oF ? 200.00 (31 March 2025: ? 78.00) which carries coupon rate oF 8.25% to
9.40%.
i) Cash credit (CC) loan is repayable on demand.
j) 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 2026 and 31 March 2025.
Refer note 37 C for information on credit risk liquidity risk and market risk.
Refer note 50 (b) on Borrowing secured against current assets.
The Corporation has recognised the exceptional profit on sale of property, plant and equipment situated at Marvera Estate,
Tanzania (which were classified as assets held for sale in previous year) and Nilgiris District Tamil Nadu during the current
year and Hekulo Estate, Tanzania, Kanyakumari District Tamil Nadu and other property, plant and equipment during the
previous year.
The Corporation has recognised an exceptional gain on the transfer of equity shares held in The Bombay Dyeing and
Manufacturing Company Limited (an associate company) to Baymanco Investments Limited (a wholly owned step-down
subsidiary) on 03 June 2025. On account of this transaction, there is no change in total group holding and the investee
continues to be classified as an associate company
35 Leases
The 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 reasonably 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.
Further, Corporation is not exposed to any variable lease payments or residual value guarantee.
Employer's contribution towards employees' state insurance and labour welfare fund, which is insignificant, have
been included in the line item "Contribution to provident fund and other funds" in note 27. Also, the contribution of
the Corporation is limited to the amount contributed and it has no further contractual or constructive obligation.
The Corporation's exemption w.r.t maintaining "The Bombay Burmah Trading Corporation Limited Employees' Exempt
Provident Fund (PF Trust)" has been withdrawn vide an order dated 25 March 2025 under the provisions of Employees
Provident Fund Scheme,1952 w.e.f 01 April 2025. In compliance of the said order the PF Trust has monetised its
investments and transferred ? 15.23 to Employee Provident Fund Organisation (EPFO) on 16 April 2025.
(B) Defined benefit plans - Gratuity:
The Corporation has The Bombay Burmah Trading Corporation Limited Covenanted Staff Gratuity Fund and 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 or company policy which ever is higher.
(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 ? 2.95 (31 March 2025: ? 3.07) 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 3.00 to
5.00 years (31 March 2025: 4.00 to 5.00 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:
(C) Compensated absences:
Leave encashment is payable to the employees on separation from the entity due to death, retirement,
superannuation or resignation.
The Leave encashment benefit is payable to all the eligible employees at the rate of basic salary, subject to a
maximum of 90 days (aged upto 40), 180 days (aged 40 to 50) & 240 days (aged 50 ).
The Corporation's liability on account of compensated absences is not funded.
There have been no transfers amongst the levels of fair value hierarchy during the year.
For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Corporation
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
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 are classified as Level 2 Fair values in the Fair value hierarchy as valuation
of these instruments is based on the recent market transactions and investment in co-operative societies and
government securities are classified as Level 3 Fair values.
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). For level 3 financial instruments the Fair values have been determined based on present
values and the discount rates used were adjusted For counterparty or own credit risk.
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.
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.
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.
38 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.
The Corporation's gearing ratio is as follows:
The capital gearing ratio has changed due to substantial repayment of borrowings during the current year.
All loan covenants have been met and there is no non-compliance relating to any borrowings.
39 Contingent liabilities and 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) The Corporation had received two demand notices for differential lease rent in respect of Singampatti estate
rent being arrears aggregating to ? 231.94 Cr for the period from 1958 to 2017 and 2019. The Corporation has
challenged the said demands by way of writ petition before Madras High Court and the said demands have been
set aside by the Honourable High Court vide order dated 18 August 2025. The Court has remanded the matter
to the Deputy Director, Project Tiger for lease rent re quantification, subject to strict adherence to due process,
with notice by 8 September 2025 and granting opportunity of hearing with conclusion by 15 October 2025.
The Corporation has not received any fresh demand/notice, in accordance with the High Court order dated 18
August 2025, as on date for this matter.
c) 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 ? 0.07 (31 March 2025 : ? 0.07)
- relating to custom and sales tax demand of ? 0.09 (31 March 2025 : ? 0.09)
d) Income tax matter under dispute for A.Y. 2017-18, 2021-22 and 2024-25 amounting to ? 0.86 [fully paid under
protest], ? 1.21 and ? 0.41 respectively (31 March 2025 : A.Y. 2017-18 ? 0.86 [fully paid under protest], 2021-22
? 1.21 and 2024-25 ? 0.41).
e) The Corporation has received a GST demand of ?20.05 (out of which ?14.54 was paid under protest in April
2024). The Corporation is contesting the applicability of GST on the said sale transaction under the purview of
GST laws and has filed an appeal against the demand order.
(ii) Contingent liabilities classified as other money for which the Company is contingently liable:
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) Commitments:
Estimated amount of contracts remaining to be executed on capital account to the extent not provided for (net of
advances) is ? 1.32 (31 March 2025 : ? 1.32).
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.
iii) The Corporation does not expect any reimbursements in respect of the above contingent liabilities.
42 Corporate social responsibility ('CSR')
As per section 135 of the Act, and rules therein, the Corporation is required to spend at least 2% of its average net profits
(as computed within the meaning of the provisions of the section) for three immediately preceding financial years towards
CSR activities. The Corporation has CSR committee as per the Act. However the Corporation has incurred average net losses
for three immediately preceding financial years hence there is no requirement to incur CSR expense during the current and
previous financial year.
43 Disclosure as per Regulation 53(1)(f) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015
The Corporation has not given any loans or advances in the nature of loans to subsidiaries, associates or other related
parties during the current year or the previous year
50 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 Company has filed quarterly statements of current assets with the banks that are grossly in agreement with the
books of account.
c) Wilful defaulter
The Corporation has not been declared wilful defaulter by any bank or financial institution or any other lender.
d) Relationship with struck off companies
The Corporation have following relationship and transactions with struck off companies under Section 248 of the Act
or Section 560 of Companies Act, 1956 during the current year and prior year, which has any outstanding balance as at
respective year-end.
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 2026 and 31 March 2025.
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.
51 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.
52 Go Airlines (India) Limited ('Go Air'), an erstwhile associate of the Corporation had 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, National Company Law Tribunal ('NCLT') had admitted the application and
granted moratorium. Accordingly, there was loss of significant influence over Go Air with effect from 10 May 2023. Further,
NCLT has approved Go Air's liquidation vide order dated 20 January 2025 and the Corporation has filed its claim with the
official liquidator. The claim submitted in the capacity of financial creditor of ? 105.37 has been accepted. The Corporation
had impaired loans amounting to ? 85.00 (31 March 2025 : ? 85.00), interest amounting to ? 4.98 (31 March 2025 : ? 4.98),
trade receivables and other financial assets amounting to ? 0.21 (31 March 2025 : ? 0.21) from Go Airlines (India) Limited
during the year ended 31 March 2023.
53 The Board vide its meeting dated 29 May 2024 approved a Voluntary Retirement Scheme (VRS) for Singampatti tea estate
workers on 29 May 2024 to address operational difficulties. This scheme was designed to provide financial relief and ease
operational constraints from the ongoing legal dispute. The Corporation had paid 25% of the VRS amount i.e. ? 3.77 in the
month of June 2024 and settled all final payments, including gratuity, bonus, and leave encashment. The remaining 75%
amounting to ? 11.32 was deposited into the Labour Commissioner's account on 18 July 2024. The total expenses of ? 16.63
incurred on account of such VRS including ex-gratia has been classified as an Exceptional Loss during the year ended 31
March 2025.
Further, the Corporation has de-recognised the development plantation at Singampatti tea estate amounting to ? 8.29
which has been classified as an exceptional item in the standalone financial statements.
54 The Corporation had received an order dated 30 October 2024 from the Collector's office demanding lease rental arrears
for the period 1999 to 2018 amounting to ? 19.55 which was paid on 19 November 2024. The Corporation has also created a
provision of ? 6.63 for the period January 2019 to March 2024 (classified as an exceptional item), ? 1.26 for the previous and
current financial year each. Further, the renewal application related to such lease is in process of approval from respective
statutory authorities.
55 A Settlement Application was filed by the Corporation proposing to settle, without admitting or denying the findings of
fact and conclusions of law, the enforcement proceedings that may be initiated by SEBI against the Corporation, for the
alleged violation of certain provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with regard to incorrect disclosure of promoter's
shareholding pattern and its disclosure with regard to Related Party. Pursuant to the said application, the SEBI has accepted
the settlement application and passed a settlement order dated 10 January 2025 levying settlement charges of ? 0.31
which has been duly paid by the Corporation.
56 The Government of India has consolidated multiple existing labour legislations into a unified Framework comprising Four
Labour Codes, collectively referred to as the 'New Labour Codes' and notified these with effect From 21 November 2025.
Based on the information and guidance currently available, the Corporation has assessed the impact of these changes
on gratuity and leave entitlement provisioning and determined that the impact arising From the revised definition of
wages on employee benefit expenses is nominal. The Corporation continues to monitor the developments relating to the
implementation of the New Labour Codes and will review the estimates based on notification of final rules.
57 Authorisation of standalone financial statements
The standalone financial statements as at and for the year ended 31 March 2026 were approved by the Board of Directors
on 13 May 2026.
58 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 standalone financial statements.
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