a) Rights, preferences and restrictions attached to equity shares
The Company has only one class of shares being Equity Shares having a par value of ' 10/- each. Each holder of the Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.
b) The Company does not have any Holding or Ultimate Holding Company.
d) No Equity Shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.
e) There is no shares issued for consideration other than cash during the period of five years immediately preceding the reporting date.
f) No securities convertible into Equity/ Preference shares have been issued by the Company during the year.
g) No calls are unpaid by any Director or Officer of the Company during the year.
Description of nature and purpose of each reserve :
Capital Redemption Reserve
This reserve was created on account of buyback of Equity Shares as required by the statute.
Retained Earnings
Retained Earnings generally represents the undistributed profit/amount of the accumulated earnings of the company.
Other Comprehensive Income
Other Comprehensive Income comprises items of Income and Expense (including reclassification adjustments) that are not recognised in profit or loss as required or permitted by other Ind-ASs.
In respect of the above contingent liabilities, future cash flows are determinable only on receipt of judgments pending at various forums/authorities, which in the opinion of the Company is not tenable.
36. Capital Commitments
Estimated amount of contracts remaining to be executed on Capital Account and not provided for net of advances is ' 72.74 (P.Y. ' Nil).
37. A CSR committee has been formed by the company as per provisions of Section 135 of the Companies Act, 2013. The areas of CSR activities areas are as prescribed under Schedule VII of the Companies Act, 2013. Gross amount required to be spent by the company during the year was ' Nil (P.Y. ' 21.09).
Amount Spent during the year on:
38. Employee BenefitsI. Defined Contribution Plan:
a. Provident Fund: The Company maintains Provident Fund with Regional Provident Fund Commissioner. Contribution made by the company to the Fund is based on the current salaries. In the provident fund scheme contributions are also made by the employees. The Annual Contribution (including charges) amount of ' 810.27 (P.Y. ' 905.12) has been charged to Statement of Profit and Loss in relation to the above defined contribution scheme.
II. Defined Benefit Plan:
a. Gratuity: The Company has a defined benefit gratuity plan. An employee is entitled for gratuity only after completion of five years in the service. The gratuity is calculated as per the calculations specified in 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.
b. Risk Exposure:
Defined Benefit Plans
Defined benefit plans expose the Company to actuarial risks such as: Interest Rate Risk, Salary Risk and Demographic Risk.
a) Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the defined benefit obligation will tend to increase.
b) Salary risk : Higher than expected increases in salary will increase the defined benefit obligation.
c) Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that includes mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis, the retirement benefit of the short career employee typically costs less per year as compared to a long service employee.
c. Funded Plans:
i. Reconciliation of opening and closing balances of the present value of the Defined Benefit Obligation.
viii. Sensitivity Analysis
The sensitivity analysis below have been determined based on a method that extrapolates the impact on defined benefit obligation 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:
x. Asset-Liability Matching Strategy
The Company's investment is in Cash Accumulation Plan/Traditional Plan of various Insurance Companies, the investment are being managed by these insurance companies and at the year-end interest is being credited to the fund value. The company has not changed the process used to manage its risk from previous periods. The company's investments are fully secured and would be sufficient to cover its obligations.
xi. The company expects to contribute Nil (Nil) to its Gratuity fund.
d. The estimates of future salary increase considered in actuarial valuation, takes into account factors like inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The actuary certifies the above information. In assessing the company's post
39. Segment Information
The company operates mainly in one business segment viz., Cultivation, Manufacturing and selling of Tea, being primary segment and all other activities revolve around the main activity. The Company is operating in two geographical segments i.e., in India and Outside. The details required as per the standard for the secondary segment is as follows:
41. Leases
The Company's leasing agreements (as lessee) in respect of lease for office accommodation & guest house, which are on periodic renewal basis. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit & Loss amounts to ' 72.96 (P.Y. - ' 72.24)
43. Confirmations for the balances shown under long term and short-term loans & advances, current liabilities, Trade payables, subsidy & Incentive Receivables and other current assets have been sought from the respective parties. Consequential adjustments shall be done on the receipt of the same. In the opinion of the management, the value of current assets, loans and advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the balance sheet.
Note: The Company has circulated confirmation for the identification of suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006. On the basis of information available with the Company under the aforesaid Act, there are no such Enterprises to whom the Company owes dues which are outstanding during the year end. This has been relied upon by the Auditors.
46. No provision on agricultural income tax has been made for the year ended 31st March, 2025 on the basis of notification issued by Government of Assam providing 3-year tax holiday on agricultural income.
47. Exceptional items for the year ended 31st March, 2025 represents the profit on sale of Assets of Dhoedaam
Tea Estate - 5,598.19 and Rajah Alli Tea Estate - ' 1,478.89.
b. Financial risk management
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company continues to focus on a system-based approach to business risk management. The Company's financial risk management process seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong internal control systems, the current Risk Management System rests on policies and procedures issued by appropriate authorities; process of regular reviews / audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation for the same.
I. Market risk
The Company's business primarily agricultural in nature, exposes it to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of adverse weather conditions and lack of future markets. The Company closely monitors the changes in market conditions and select the sales strategies to mitigate its exposure to risk.
i. Foreign currency risk
The Company undertakes transactions denominated in foreign currency which results in exchange rate fluctuations. Such exchange rate risk primarily arises from transactions made in foreign exchange and reinstatement risks arising from recognised assets and liabilities, which are not in the Company's functional currency (Indian Rupees). A significant portion of these transactions are in USD, Euro, GBP, etc.
Foreign currency sensitivity
The company has no outstanding foreign currency denominated assets and liabilities as on reporting date.
Therefore, the company have no foreign currency rate risk.
ii. Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The objectives of the Company's interest rate risk management processes are to lessen the impact of adverse interest rate movements on its earnings and cash flows and to minimise counter party risks.
The Company has no borrowings being availed during the current as well as in the previous year. Therefore, the company have no interest rate risk.
Interest rate sensitivity
Since there are no borrowings being availed during the current year as well as in the previous year, hence no sensitivity analysis is done.
iii. Price risk
The Company invests its surplus funds primarily in equity shares and mutual funds measured at fair value. Aggregate value of such investments as at 31st March, 2025 is ' 13,987.24 (31st March, 2024 - ' 2,666.44).
Increase/decrease of 5% would result in an impact (increase/ decrease) by ' 699.36 and ' 133.32 on total profit for the year ended 31st March, 2025 and 31st March, 2024 respectively.
II. Liquidity risk
Liquidity risk is the risk that the Company may encounter difficulty including seasonality in meeting its obligations. The Company mitigates its liquidity risks by ensuring timely collections of its trade receivables, close monitoring of its credit cycle and ensuring optimal movements of its inventories.
The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date.
III. Credit risk
Credit risk is the risk that counter party will not meet its obligations leading to a financial loss. The Company has its policies to limit its exposure to credit risk arising from outstanding receivables. Management regularly assess the credit quality of its customer's basis which, the terms of payment are decided. Credit limits are set for each customer which are reviewed on periodic intervals. The credit risk of the Company is low as the Company largely sells its teas through the auction system which is on cash and carry basis and through exports which are mostly backed by letter or credit or on advance basis. c. Capital Management
The Company aims at maintaining a strong capital base maximizing shareholders' wealth safeguarding business continuity and augments its internal generations with a judicious use of borrowing facilities to fund spikes in working capital that arise from time to time as well as requirements to finance business growth.
50. The title deed of all immovable properties as disclosed are held in the name of the company.
51. Other Regulatory Information:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with struck off companies.
(iii) The Company has not advanced or given loan or invested funds 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.
(iv) The Company has not received any fund 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 on behalf of the Ultimate Beneficiaries.
(v) 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
(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(viii) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
53. Previous GAAP figures have been reclassified/ regrouped to confirm the presentation requirements under IND AS and the requirements laid down in Division-II of the Schedule-III of the Companies Act, 2013.
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