Estimation of fair value

The Company’s investment property consisted of Land at Alibag and Bikaner in previous year. However during the current year Company has classified Land at Bikaner as Asset held for sale (Refer Note 15). The fair Valuation of the said properties as stated in the above table is based on valuation conducted by an Income Tax Department Approved Valuer & Consulting Engineer, an accredited independent valuer and they are not a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements. Fair value hierarchy disclosures for investment properties have been provided in note 38.

(1) Deferred tax assets and liabilities are being offset as they relate to taxes on income levied by the same governing taxation laws.

(2) The Company had opted for new tax regime u/s 115BAA of the Income Tax Act, 1961 while filing its Income Tax returns for AY 2022-23 (Financial year ended March 31, 2022) in November 2022. Accordingly, Provision for Income tax and Deferred tax recognized for the year ended March 31, 2022 had been revised in the year 2022-23 based on the applicable provisions of the new tax regime.

The Company has entered into the Memorandum of Understanding dated 29th March,2024 for Sale of Investment Property at Bikaner for a consideration of Rs 243.56 lakhs for which final sale agreement is to be executed after completion of necessary due diligence from the buyer. The said assets have been classified as Assets held for Sale and loss thereupon amounting to Rs 16.16 lakhs has been recognised as "Exceptional Items” in the current year. The fair value of land was determined using the sales approach. This is level 3 measurement as per fair value hierarchy set out in fair value measurement disclosure.

Terms and rights attached to equity shares

The Company has one class of equity share having a par value of Rs 10/- each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(i) General reserve

Under the erstwhile Indian Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act, 2013, the requirement to mandatory transfer a specified percentage of the net profit to general reserve has been withdrawn though the Company may transfer such percentage of its profits for the financial year as it may consider appropriate. Declaration of dividend out of such reserve shall not be made except in accordance with rules prescribed in this behalf under the Act.

(ii) Fair value through other comprehensive income (FVOCI)- equity instruments

The Company has elected to recognise changes in the fair value of certain investments in equity instruments through other comprehensive income. These changes are accumulated within the FVOCI equity instruments reserve. The Company transfers amounts from this reserve to retained earnings when the relevant equity instruments are derecognised.

(iii) Retained earning

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

(a) Repayment terms and nature of securities given for Term/Demand loans from banks are as follows:

(i) Auto Loan from a bank Nature of Security

Auto loans from bank aggregating to Rs. 16.36 lakhs (31 March 2023: Rs. 21.57 lakhs) are secured by hypothecation of respective vehicles. Repayment and other terms

Repayable in 60 equated monthly instalments payable at interest rate of 7% p.a. beginning from 7 January 2022.

(ii) Agri Infra Fund Term Loan (AIFTL)

Nature of Security

Secured by first charge by way of hypothecation over the entire current assets of the Company ranking pari passu with other cosortium Banks as primary security. Secured by a first hypothecation charge on the immovable properties and movable fixed assets of the Company ranking pari passu with other cosortium banks as collateral security.

Repayment and other terms

(i) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 0.99 lakhs each starting from October 25, 2025 and interest rate

of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 47.53 lakhs (31 March 2023: NIL)

(ii) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 3.71 lakhs each starting from November 10, 2025 and interest rate of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 178.65 lakhs (31 March 2023: NIL)

(iii) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 4.15 lakhs each starting from December 10, 2025 and interest rate of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 200.00 lakhs (31 March 2023: NIL)

(iv) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 4.15 lakhs each starting from December 25, 2025 and interest rate of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 200.00 lakhs (31 March 2023: NIL)

(v) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 1.63 lakhs each starting from January 15, 2026 and interest rate

of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 78.75 lakhs (31 March 2023: NIL)

(b) Repayment and other terms and nature of securities given for short term borrowings

(i) Loans repayable on demand from Banks are secured by a first hypothecation charge on the current assets of the Company, viz. stock of raw materials, finished goods, stores and spares not relating to plant and machinery, bills receivable, book debts and all other movables, both present and future, wherever situated. Secured by a first hypothecation charge on the movable fixed assets of the Company and equitable mortgage over the immovable properties by deposit of title deeds of tea estates.

Rate of Interest

Loan from Bank is availed as per the requirements of the Company at interest rates mutually agreed at the time of drawing the facility with interest rates varying from 8.10% to 11.80%

The Company has been sanctioned working capital limits in excess of Rs. five crores in aggregate from banks during the year on the basis of security of current assets of the Company. The quarterly returns/statements filed by the Company with such banks are in agreement with the books of accounts 0f the Company.

(ii) Unsecured loan from related parties will be due in a year and payable at one go along with interest @8% p.a

(c) The Company has not defaulted on repayment of any borrowings and interest thereof.

During the year, the Company recognised an amount of Rs. 99.50 lakhs (2022-23: Rs. 75.61 lakhs ) as remuneration to key managerial personnel, Refer note 41 for details.

(i) Leave Obligations(a) Short term Employee Benefits:

The undiscounted amount of Short-term Employee Benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service.

(b) Compensated Absences

Compensated absences cover the Company's liability for sick and earned leave. As the Company does not have an unconditional right to defer the payment beyond 12 months the entire amount has been treated as current.

(ii) Defined contribution plan

Provident Fund: The Company contributes 12% of the basic salary of employees towards Provident Fund Scheme to the relevant provident fund authorities (Regional Provident Fund Commissioner/ Assam Tea Plantation Provident Fund account).

The Company contributed Rs.2,034.41 and Rs. 1,183.48 lakhs during the year ended 31 March 2024 and 31 March 2023 respectively.

Superannuation Fund: The Company provides for Superannuation benefit to certain employees wherein 15% of basic salary is funded with Life Insurance Corporation of India.

The Company contributed Rs. 2.09 lakhs and Rs. 2.33 lakhs during the year ended 31 March 2024 and 31 March 2023 respectively.

Others: Others consist of company and employee's contribution to:

Employees Pension Scheme [Total amount charged to the statement of Profit and Loss for the year Rs. 11.08 lakhs (2022-23 Rs.8.94 lakhs)] Employees State Insurance [Total amount charged to the statement of Profit and Loss for the year Rs. 0.66 lakhs (2022-23 Rs. 0.79 lakhs)]

(iii) Post Employment Benefits Plans

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust Fund make payment to vested employees at retirement, death/disability, withdrawal of an amount based on the respective employee's eligible salary for specified number of days depending upon the tenure of service subject to a maximum of Rs 20 lakhs. Vesting occurs upon completion of five years of service. Liability with regard to the aforesaid gratuity plan is determined by actuarial valuation based upon which the Company makes annual contributions for Gratuity to the Trust Fund.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(viii) Risk exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk:

If plan is funded, then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

Interest risk:

A decrease in the interest rate on plan assets will increase the plan liability.

Life expectancy:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

(ix) Defined benefit liability and employer contributions

Expected contributions to post-employment benefits plans for the year ending 31 March 2024 is Rs. 3,016.39 lakhs (31 March 2023 : Rs. 3,371.33 lakhs).

The weighted average duration of the defined benefit obligation is 7 years (31 March 2023 - 8 years).

(1) Income tax expense for the AY 2022-23 (Financial year ended 31 March 2022) was determined based on old regime. However while filing its income tax return for FY 2021-22 the Company had opted for new tax regime u/s 115BAA of the Income Tax Act, 1961. Accordingly, Provision for Income tax and Deferred tax that was recognised for the FY ended 31 March 2022, were reduced during the FY ended 31 March 2023 based on the applicable provisions of the new tax regime.

(2) The applicable tax rate for the Company is 25.17% (including surcharge and cess). However, the Company is also subject to agricultural income tax at the rate of 30% to the extent of 60% of its business income. Accordingly, the average rate considered for the aforesaid reconciliation and on the basis of which the deferred tax has been measured by the Company is 28.07% for the year ended March 31, 2024 and March 31, 2023 .

NOTE 37: CAPITAL MANAGEMENT (a) Risk management

The company’s objectives when managing capital are to:

(a) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(b) maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

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The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The capital structure of the Company consists of debt, cash and cash equivalents and equity attributable to equity shareholders of the Company which comprises issued share capital and accumulated reserves disclosed in the Statement of Changes in Equity.

Consistent with others in the industry, the Company monitors capital on the basis of net debt to equity ratio and maturity profile of overall debt portfolio of the Company.

Net Debt implies borrowings including interest accrued on borrowings of the Company as reduced by Cash and Cash Equivalents and Equity comprises all components attributable to the owners of the Company.

NOTE 38 : FAIR VALUE MEASUREMENTS

This section gives an overview of the significance of financial instruments for the company and provides additional information on balance sheet item that contain financial instrument.

The detail of material accounting policies,including the criteria for recognition ,the basis of measurement and the basis on which income and expenses are recognised in repsect of each class of financial asset,financial liability and equity instruments are disclosed in note 2 to the standalone financial statements.

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares. The fair value for all equity shares which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Valuation techniques with observable inputs (Level 2): The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Biological asset other than bearer plants, are measured at fair value less cost to sell.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and financial liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. This level of hierarchy includes Company’s investment in equity shares which are unquoted or for which quoted prices are not available at the reporting dates.

(ii) Transfers between level 1, level 2 and level 3

There is no transfer during the year between level 1, level 2 and level 3 with reference to financial instruments and biological assets other than bearer plants.

(iii) Valuation technique used to determine fair value

Specific valuation technique used to determine fair value includes:

(a) Investments carried at fair value are generally based on market price quotations. However in cases where quoted prices are not available the management has involved valuation experts to help in determining the fair value of the investments. Fair value of biological assets other than bearer plant are arrived at based on observable market price of green leaves.

(b) The carrying amounts of other financial assets and liabilities carried at amortised cost closely approximate their fair values. The impact of discounting on such financial assets or liabilities is not significant due to the market terms (rates and tenor) available and because the instruments are short term in nature or do not have any fixed contractual maturities.

(c) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(iv) Equity Instruments carried at fair value through other comprehensive income

These investments in equity shares are not held for trading. Instead, they are held for long term purpose. The Company has chosen to designate these investments in equity instruments at FVOCI since, it provides a more meaningful presentation. During the year, the Company has sold certain investments carried at FVOCI.

NOTE 39: FINANCIAL RISK MANAGEMENT

In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. In order to minimise any adverse effects on the financial performance of the Company, the company has risk management policies as described below :-

(A) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) including deposits with banks and financial institutions and other financial instruments carried at amortised cost and financial guarantees.

Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, investments, other financial assets and cash and cash equivalents held by the Company. None of the financial instruments of the Company result in material concentration of credit risk.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was Rs. 13997.21 lakhs, Rs. 17354.16 lakhs, as at 31 March 2024 and 31 March 2023 respectively, being the total carrying value of financial assets excluding cash on hand.

i) Trade and other receivables

Credit risk on receivables is minimum since sales through different mode (eg. auction, consignment, private) are made after judging credit worthiness of the customers or advance payment. The history of defaults has been minimal and outstanding receivables are regularly monitored.

ii) Financial instruments and bank deposits

For credit risk on the loans to employees, the Company is not expecting any material risk on account of non-performance by any of the parties. Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

(B) Liquidity risk

Liquidity risk refers to the risk that the Company may encounter difficulty in meeting its financial obligations in accordance with terms of contract. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.

Management monitors rolling forecasts of the company's liquidity position (including the undrawn credit facilities extended by banks and financial institutions) and cash and cash equivalents on the basis of expected cash flows. In addition, the Company's liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Maturities of financial liabilities

The tables below analyses the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for all financial liabilities.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk (i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31 March, 2024 and 31 March, 2023, the Company’s borrowings at variable rate were denominated in Rupees.

The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(ii) Price risk (a) Exposure

The Company’s exposure to equity securities & mutual funds price risk arises from investments held by the Company and classified in the balance sheet at fair value through Other Comprehensive Income or at Fair Value through Profit & Loss Account. To manage its price risk arising from investments in equity securities & mutual funds, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company. In general, these investments are not held for trading purposes.

(D) Agricultural Risk

Cultivation of tea being an agricultural activity, there are certain specific financial risks. These financial risks arise mainly due to adverse weather conditions, logistic problems inherent to remote areas, and fluctuation of selling price of finished goods (tea) due to changes in supply/ availability.

The Company manages the above financial risks in the following manner:

• Sufficient inventory levels of agro chemicals, fertilizers and other inputs are maintained so that timely corrective action can be taken in case of adverse weather conditions.

• Sufficient level of consumable stores viz packing materials, coal and HSD are maintained in order to mitigate financial risk arising from logistics problems.

• Sufficient working-capital-facility is obtained from banks in such a way that cultivation, manufacture and sale of tea is not adversely affected even in times of adverse conditions.

NOTE 40: SEGMENT REPORTING

The Company's chief operating decision maker viz. Chairman and Managing Director examine the Company's performance as a single segment, viz. "Growing, harvesting and sale of loose and packet tea and other allied services relating to plantation sector”.

@ Represents remuneration to key managerial person

# Includes Rent paid against leased assets has been accounted for in accordance with Indian Accounting Standards 116 (Ind AS 116, Leases w.e.f. 01-04-2019) Other Terms and Conditions of transactions with Related Parties

Transactions related to dividend were on the same terms and conditions that applied to other shareholders. The other transactions are made in the ordinary course of business. Outstanding balances at the year end are unsecured. No provision are held against receivable from related parties. All the transactions mentioned above are inclusive of GST, where applicable.

NOTE 42: FAIR VALUE OF BIOLOGICAL ASSETS AND AGRICULTURAL PRODUCE

The carrying amount of the biological assets other than bearer plants as per note 12 of these Standalone Financial Statements amounts to Rs. 91.32 lakhs (previous year Rs. 106.49 lakhs)

The carrying amount of the Finished Goods (Inventories) as per Note 11 of these Standalone Financial Statements amounts to Rs. 2,203.94 lakhs (PY Rs. 3,013.06 lakhs). The same comprise of Tea made out of tea leaves harvested from own gardens (“agricultural produce”) amounting to Rs. 1058.05 lakhs (PY Rs. 1,604.86 lakhs), Tea made out of purchased tea leaves amounting to Rs. 613.78 lakhs (PY Rs. 1,408.20 lakhs) and Tea purchased amounting to Rs. 532.09 lakhs (PY Nil).

The biological assets (“Tea leaves growing on tea bushes”) and agricultural produce used in the production of finished goods of tea used in such inventory are stated at fair value less costs to sell. Such inventory of Tea is carried at the lower of cost and net realizable value. The same is applying the principles of Ind AS 41 and Ind AS 2.

The valuation of biological assets and agricultural produce used in the production of finished goods (Tea) involves judgements in the consideration of factors used in the determination of fair value of such agricultural produce. The company considers various factors such as comparing the actual selling prices prevailing around year end for completed seasonal cycle, including technical factors which determine the quality and hence the fair value of biological assets and agricultural produce. The said practice is consistently practiced followed by the company.

Note 46: The Company had acquired certain tea estates in the previous year wherein the Company had taken over the outstanding Employees

Provident Fund liabilities for the respective gardens as on January 01, 2023 from the erstwhile owner. As agreed with Provident Fund authorities,

the Company is in the process of discharging such liabilities in the specified number of instalments. The balance outstanding of such Provident

Fund liability is Rs. 457.42 lakhs as on March 31, 2024 (March 31, 2023: Rs. 1,535.63 lakhs). The Company has been regular in depositing the

Provident Fund liabilities of January 2023 onwards for the respective tea estates.

Note 47: Other Statutory Information

(i) The Company does not have any transactions with companies struck off.

(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC (Registrar of Companies) beyond the statutory period.

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(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 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person or entity, including foreign entities ("Intermediaries") with the understanding (whether recorded in writing or otherwise) that the Intermediary shall, whether directly or indirectly lend or invest in other persons/entities identified in any other manner whatsoever by or on behalf of the Company ('ultimate beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. However, the Company has invested Rs. 830.62 lakhs given during the year to Dhunseri Petrochem Tea & Pte Limited, a wholly owned subsidiary in the ordinary course of business and in keeping with the applicable regulatory requirements for onward funding to a overseas step-down wholly owned subsidiary of the Company towards meeting their business requirements. Accordingly, no further disclosures, in this matter is required.

(vi) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year.

(vii) There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

(viii) The Company has defined process to take daily back-up of books of account maintained electronically and maintain the back-up of such books of account on the servers located in India for the Corporate office but in a hard disk for the Tea Gardens for which the logs of such back-up were not being kept. However, management is in the process of configuring its systems to ensure that logs of daily back up for books of account is being maintained on a daily basis on the server located in India for all its locations.

The Company is in the process of establishing necessary controls and documentations regarding backup in respect of new ERP, the implementation of which is under progress.

(ix) The Company has used accounting software for maintaining its books of account which does not have a feature of recording audit trail (edit log) facility, due to technical reasons. The Company is in the process of establishing necessary controls and documentations regarding audit trail in respect of new ERP, the implementation of which is under progress

(x) The Company had acquired 5 Tea Estates with effect from January 1, 2023 as stated in 3(a). Accordingly, the numbers reported in Statement of Profit and Loss for the year ended March 31, 2024 are not comparable with those for the year ended March 31, 2023.