3.16. Provisions, Contingent Liabilities and Contingent Assets3.16.1. Provisions:
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made
of the amount of the obligation. Provisions are determined by discounting the expected future cash flows (representing the best
estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as
finance cost.
3.16.2. Contingent Liabilities:
Contingent liability is a possible obligation arising 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 Company or a present obligation that
arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefit will
be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the
existence of contingent liabilities in Other Notes to the Standalone financial statements.
3.16.3. Contingent Assets:
Contingent asset usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic
benefits. Contingent Assets are not recognized though are disclosed, where an inflow of economic benefits is probable and where
the amount can be measured reliably.
3.17. Biological Assets and Agricultural Produce
3.17.1. Biological Assets:
Biological assets of the company comprise of un-harvested green tea leaves that are classified as current biological assets.
The Company recognizes biological assets when, and only when, the Company controls the assets as a result of past
events, it is probable that future economic benefits associated with such assets will flow to the company and the fair value
or cost of the assets can be measured reliably. Expenditure incurred on biological assets is measured on initial recognition
and at the end of each reporting period at its fair value less costs to sell. The gain or loss arising from a change in fair value
less cost to sell of biological assets is included in Statement of Profit and Loss for the period in which it arises.
3.17.2. Agricultural Produce:
The Company recognizes agricultural produce when, and only when, the Company controls the assets as a result of past events, it
is probable that future economic benefits associated with such assets will flow to the Company and the fair value or the cost of the
assets can be measured reliably. Agricultural produce harvested from the Company's biological assets are valued at fair value less
cost to sell at the point of harvest. A gain or loss arising on initial recognition of agricultural produce at fair value less cost to sell shall
be included in Statement of Profit and Loss for the period in which it arises.
The Company's agricultural produce comprises of green leaves plucked from its tea estates.
3.18. Operating Segment:
Operating Segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker
(CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been
identified as the Board of Directors. Segments are organized based on businesses which have similar economic characteristics as
well as exhibit similarities in nature of production processes, the type and class of customer and distribution methods.
Segment revenue arising from third party customers is reported on the same basis as revenue in the standalone financial statements.
Inter-segment revenue is reported on the basis of transactions which are primarily market led. Segment results represent profits
before finance charges, unallocated corporate expenses and taxes. “Unallocated Expenses” include revenue and expenses that
relate to initiatives/ costs attributable to the enterprise as a whole and are not attributable to individual segments.
3.19. Significant Judgements And Key Sources Of Estimation In Applying Accounting Policies
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations
of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.
Information about significant judgements and key sources of estimation made in applying accounting policies that have the most
significant effects on the amounts recognized in the standalone financial statements is included in the following notes:
> Revenue Recognition: In case of construction contracts, the Company uses the percentage-of-completion method in
accounting for its fixed-price contracts. Use of the percentage of completion method requires the Company to estimate the
efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Efforts or costs expended have
been used to measure progress towards completion.
> Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment
of the probability of the Company's future taxable income against which the deferred tax assets can be utilized. In addition,
significant judgement is required in assessing the impact of any legal or economic limits.
> Useful lives of depreciable/ amortizable assets (tangible and intangible): Management reviews its estimate of the useful
lives of depreciable/ amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in
these estimates relate to actual normal wear and tear that may change the utility of property, plant and equipment.
> Classification of Leases: The Company enters into leasing arrangements for various assets. The classification of the leasing
arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to,
transfer of ownership of leased asset at end of lease term, lessee's option to purchase and estimated certainty of exercise of
such option, proportion of lease term to the asset's economic life, proportion of present value of minimum lease payments to
fair value of leased asset and extent of specialized nature of the leased asset.
> Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which
include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical
cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used
to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the
resulting calculations.
> Provisions and Contingencies: The assessments undertaken in recognizing provisions and contingencies have been made
in accordance with Indian Accounting Standards (Ind AS) 37, ‘Provisions, Contingent Liabilities and Contingent Assets'. The
evaluation of the likelihood of the contingent events is applied best judgement by management regarding the probability of
exposure to potential loss.
> Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost annually, or
more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment
loss is accounted for.
> Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of
irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is
different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful
debts expenses in the period in which such estimate has been changed.
> Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in
the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where
possible, but where this not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility.
> Fair Value of Biological Assets: The fair value of Biological Assets is determined based on recent transactions entered into
with third parties or available market price.
3.20. Recent Accounting Proouncements:
The Ministry of Corporate Affairs (“MCA”) notifies new standards or amendment to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time.
In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central
Government in consultation with the National Financial Reporting Authority have issued certain amendments to the Indian Accounting
Standards (Ind AS) that have not yet become effective for the Company's reporting periods at the date of these interim financial
statements. The Companies (Indian Accounting Standards) Second Amendment Rules, 2025, notified on 13 August 2025, include
amendments that are effective for annual reporting periods beginning on or after 1 April 2026
Ind AS 1 — Presentation of Financial Statements: Further amendments on classification of liabilities as current or non-current,
including requirements relating to breaches of loan covenants, grace periods, and disclosure of related risks (paragraphs 74, 75,
75A and 76).
Ind AS 10 — Events after the Reporting Period: Consequential amendments aligning terminology and treatment with Ind AS 1
Ind AS 12 — Income Taxes: Certain disclosure requirements relating to international tax reform (Pillar Two model rules), including
qualitative and quantitative information on exposure to Pillar Two income taxes are mandatory for interim reporting's.
The Company is in the process of evaluating the requirements of these amendments and their impact on the Company's financial
statements. The impact, if any, will be given effect to in the period of initial application.
Note:
a) The amount of Contractual commitments for acquisition of property, plant and equipment is disclosed in Note 39.
b) Refer Note 40.2 for Office Premises given on Operating Lease (included under Head 'Buildings' above).
c) The amount of expenditure recognised in the carrying amount of Property Plant and Equipment in the course of construction /
development is Rs 454.78 Lakhs (PY - Rs 361.45 Lakhs).
d) Borrowing cost capitalised during the year is Rs 31.06 Lakhs (PY- Rs 27.71 Lakhs) at the capitalisation rate of 7.81% (PY- 8.76%).
e) Refer Note 24.1 for information on Property, Plant and Equipment pledged as securities by the Company.
f) There is no capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan or has
been suspended.
g) The Company has not revalued its Property, Plant and Equipment during the year ended 31st March 2026 and 31st March 2025.
h) Title deed of all the immovable properties are held in the name of the Company.
15.2 - Trade receivables are non-interest bearing and are generally on terms of 30 to 180 days.
15.3 - No trade or other receivables are due from directors or other officers of the company either severally or jointly with any other
person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a
partner, a director or a member.
15.4 - Refer Note 24.1 for information on Trade Receivable pledged as securities by the Company.
18.4 - Reconciliation of the number of shares at the beginning and at the end of the year
There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.
18.5 - Terms/ Rights attached to Ordinary Shares :
The Company has only one class of Ordinary shares having a face value of Rs. 10 per share and each holder of Ordinary
shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed
by the Board of Directors (except interim dividend) is subject to the approval of the shareholders in the Annual General
Meetings. In case of liquidation the Ordinary Shareholders are eligible to receive remianing assets of the Company, after
distribution of all the preferential amounts, in the proportion of their Shareholding.
18.6 - Shareholding Pattern with respect of Holding or Ultimate Holding Company
The Company does not have any Holding Company or Ultimate Holding Company.
Description of the nature and purpose of each reserve within equity is as follows:-
a) Capital Reserve - Reserve is created on business combination as per statutory requirement.
b) Preference Share Redemption Reserve - Reserve is created for redemption of preference shares as per statutory
requirement.
c) General Reserve - General Reserve are free reserves of the company which are kept aside out of company's profits to meet
the future requirements as and when they arise. The Company had transferred a portion of the Profit after Tax (PAT) to general
reserve pursuant to the earlier provisions of Companies Act, 1956.
d) Retained Earnings - Retained Earnings are the accumulated profits earned by the Company and remaining undistributed as
on date.
e) Other Comprehensive Income - Equity Instruments through Other Comprehensive Income (OCI) - This represents the
cumulative gains and losses arising on fair valuation of equity instruments measured at fair value through other comprehensive
income under an irrevocable option and remeasurement of Defined Benefit Obligation.
24.1 - Details of Security Given for Loan
a) The working capital facilities from Punjab National Bank are secured/ to be secured by hypothecation of Tea Crop, Made
Tea, Book Debts and all other Current Assets of the Tea Estates and are further secured/to be secured by way of charge
on Companies Tea Estates.
b) Working Capital Facilities from Other Banks, (except those availed by Tea Division of the Company from Punjab National
Bank ) are secured/ to be secured by hypothecation of Company's (other than Tea Division) entire current assets, both
present and future, ranking pari passu inter-se, and are further secured/ to be secured by way of second charge on the
Property,Plant and Equipments of the Company (other than Tea Division) ranking pari passu inter-se.
24.2 - Details of Interest Rates on Short Term Borrowings
a) The Working Capital Facilities having interest rate varying between 7.62% p.a. - 10.45% p.a. are repayable on demand.
b) Short term loans from Related Parties having 9.00% p.a rate of interest are repayable on demand.
Transaction Price - Unstatisfied Performance Obligation
The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognised as
at the end of the reporting period and an explanation as to when the Company expects to recognise these amounts in revenue.
Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related
disclosures for contracts as the revenue recognised corresponds directly with the value to the customer of the entity's performance
completed to date.
There are no aggregate value of performance obligations that are completely or partially unsatisfied as of 31st March, 2026, other
than those meeting the exclusion criteria mentioned above.
39.1 For derivatives contract refer Note 50(C )(b)
NOTE 40 - Leases40.1 - As Lessee
i) The lease liability is measured at the present value of remaining lease payments discounted using incremental borrowing
rate at the date of initial application and right of use asset has been recognized at an amount equal to the lease liability
plus prepaid rentals recognised in the Balance Sheet before the date of initial application, if any.
ii) Leases for which the lease term ends within 12 months of the date of initial application have been accounted as short term
leases.
Further, refer Note 3.6: Material Accounting Policies for detailed measurement and recognition principles on Leases.
The changes in the carrying value of right of use (ROU) assets for the year ended 31st March 2026 are disclosed in Note 4C.
40.2 - As Lessor
The company has given office premises under cancellable leases. The leasing arragements range between 3 years and 15 years
generally or longer and are usually renewable by mutual consent on mutually agreeable terms. Initial direct costs for such leases are
borne by the company and charged off to revenue. Lease rentals are recognised as income for Rs 714.71 Lakhs during the year (P.Y.
Rs 741.18 Lakhs). The gross value and accumulated depreciation of such asset as at 31st March 2026 was Rs 14.74 Lakhs (P.Y. Rs
14.51 Lakhs) and Rs 4.78 Lakhs (P.Y. Rs 4.50 Lakhs) respectively.
NOTE 41 - Revenue expenditure on Research and Development of Rs 22.20 Lakhs (P.Y. Rs 22.14 Lakhs) represents subscription
to Tea Research Association.
NOTE 43 - Disclosure pursuant to Indian Accounting Standard - 19 ‘Employee Benefits' as notified u/s 133 of the Companies
Act, 201343.1 - Defined Contribution Plan:
a) Provident Fund
The Company makes a contribution for Provident Fund towards defined contribution plans for eligible employees. The amount
recognized as an expense for the Defined Contribution Plans are as under:
43.2 - Defined benefit plan:
a) Gratuity Plan
Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the
provisions of the Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using
the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date except for the Assam Tea Garden
Employees. The liabiites for the Assam Tea Garden Eployees will be valued as per the method provided in the Assam Gratuity Fund
Scheme.
m) Sensitivity Analysis
The sensitivity analyses below have been determined based on a method that extrapolates the impact on defined benefit obligation
(DBO) as a result of reasonable changes in key assumptions occuring at the end of the reporting period. Reasonably possible
changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected
the defined benefit obligation by the amounts shown below:
Although the analysis does not take into account of the full distribution of cash flows expected under the plan, it does provide an
approximation of the sensitivity of the assumptions shown.
NOTE 43.3 - The Code on Social Security, 2020 (New Labour Code):
Pursuant to the notification issued by the Ministry of Labour and Employment, the Code on Wages, 2019, the Code on Social Security,
2020, the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively
referred to as the "New Labour Codes") became effective from 21 November 2025. The Company has reassessed its employee
benefit obligations in accordance with the revised definition of wages. Accordingly, an incremental liability on account of past service
cost in accordance with IND AS 19 - Employee Benefits amounting of' Rs.147.20 lakhs has been charged to the Profit and Loss
Account under "Employee Benefits Expense"
NOTE 45 - Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to confirmation/
reconciliation and consequential adjustment, if any. Reconciliations are carried out on an on-going basis. Provisions, wherever
considered necessary, have been made. However, management does not expect to have any material financial impact of such
pending confirmation/reconciliation.
48.1 - The management assessed that the fair values of Loan given, cash and cash equivalents, other Bank balances, trade
receivables, other financial assets, long term borrowings, trade payables, short term borrowings, and other financial liabilities
approximates their carrying amounts.
48.2 - The fair value of the financial assets and financial liabilities is included at the amount at which the instruments could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
NOTE 49 - Fair Value Hierarchy
The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its
financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement".
An explanation of each level follows underneath the tables.
The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk.
The Company's senior management has the overall responsibility for establishing and governing the Company's financial risk
management framework. The Company's Audit Committee, is responsible for developing and monitoring the Company's financial
risk management policies. The Company's financial risk management policies are established to identify and analyze the risks faced
by the Company, to set and monitor appropriate controls.
(A) Credit Risk
Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit
risk arises primarily from financial assets such as trade receivables, bank balances, loans, investments and other financial assets.
At each reporting date, the Company measures loss allowance for certain class of financial assets based on historical trend, industry
practices and the business environment in which the Company operates.
Credit risk arising from investments, derivative financial instruments and balances with banks is limited because the counterparties
are banks and recognized financial institutions with high credit worthiness.
(i) Provision for expected credit losses
The Company measures Expected Credit Loss (ECL) for financial instruments based on historical trend, industry practices and the
business environment in which the Company operates.
For financial assets, a credit loss is the present value of the difference between:
(a) the contractual cash flows that are due to an entity under the contract; and
(b) the cash flows that the entity expects to receive
The Company recognises in profit and loss, the amount of expected credit losses (or reversal) that is required to adjust the loss
allowance at the reporting date in accordance with Ind AS 109.
In determination of the allowances for credit losses on trade receivables, the Company has used a practical experience by computing
the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience and adjusted for
forward looking information.
(B) Liquidity risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company has
an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity
management requirements.
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit facilities
agreed with the banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost
effective manner.
The following table shows the maturity analysis of the Company's derivative and non-derivative financial liabilities based on
contractually agreed undiscounted cash flows.
(C) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.
a) Interest rate risk:
Interest rate risk is measured by using cash flow sensitivity for changes in variable interest rate. Any movement in the reference
rates could have an impact on the Company's cash flow as well as cost. The management is focused towards reducing the
volatility due to interest rates, which is reflected in proportion of variable interest rate borrowing to total borrowing.
b) Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign
exchange rates. The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating
to the recognized underlying liabilities / assets and firm commitments. The Company's policy is to hedge its exposures other than
natural hedge. The Company does not enter into any derivative instruments for trading or speculative purposes.
NOTE 51 - Capital Management
The Company's objective when managing capital (defined as net debt and equity) is to safeguard the Company's ability to continue
as a going concern in order to provide returns to shareholders and benefit for other stakeholders, while protecting and strengthening
the Balance Sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and
makes adjustments to it, in light of changes to economic conditions and strategic objectives of the Company.
NOTE 52 - Segment Reporting52.1 - Information in accordance with the requirements of the IND AS - 108 on 'Segment Reporting':-
The Company has identified four primary business segments viz :
Segments have been identified and reported taking into account nature of products and services, the different risks and returns and
the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy
of the Company with the following additional policies for segment reporting.
i) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment.
Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have
been disclosed as "Unallocable".
ii) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related asset
and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".
52.4 - Other Disclosures
a) The Company's corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. The Company
is currently focused on four business groups : Textile, Tea, Engineering and Property. The Company's organisational structure
and governance processes are designed to support effective management of multiple businesses while retaining focus on each
one of them.
b) The geographical information considered for disclosure are:
-Sales within India
-Sales outside India
c) The Company is not reliant on revenues from transactions with any external customer for more than 10% or more of its revenue.
d) Inter-segment transfers are based on prevailing market prices.
e) The accounting policies adopted for segment reporting are in line with the accounting policy of the Company.
(v) Utilisation of Borrowed funds and share premium - The Company have not advanced or loaned or invested funds,
during the year, to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that
the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company have not received any fund, during the year, from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vii) Disclosure in relation to undisclosed income - The Company does not have any such transaction which is not recorded
in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961 (such as search or survey) or any other relevant provisions of the Income Tax Act, 1961.
viii) Utilisation of Borrowing - The company has utilised the Borrowings from Banks and Financial Instituions for the purpose
for which it was taken.
ix) Wilful Defaulter - The Company has not been declared as willfull defaulter by any Bank or Financial Institutions.
x) Loans or advances (repayable on demand or without specifying any terms or period of repayment) to specified
persons - During the year the company did not provide any loans or advances (repayable on demand or without specifying
any term or period of repayment) to specified person.
xi) Corporate Social Responsibility (CSR) - As per Section 135 of the Act, a Company meeting the applicability threshold, is
required to spend at least 2% of its average net profit for the immediate preceding three financial years on CSR activities.
The area of CSR activity are in accordance with Schedule VII of the Act. A CSR committee has been formed by the
Company under the Act.
xii) Compliance with number of layers of companies - The Company has complied with number of layers prescribed under
clause (87) of Section 2 of Companies Act 2013 read with Companies (Restriction on number of layers) Rules 2017.
xiii) Borrowings secured against current assets - Variations in Quarterly Statements of Current Assets filed by the company
with Banks or Financial Institutions and with the Books of Accounts are not material.
NOTE 55 - Audit Trial
The Company uses an accounting software for maintaining its books of account, which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all relevant transactions recorded in the respective software except for
recording of audit trail (edit log) facility at the database level.
NOTE 56 - Previous years figures have been rearranged / regrouped wherever necessary.
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