M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Contingent liabilities are not recognised and disclosed by way of notes to the financial statements when there is a possible obligation arising from past events, 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 when there is a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.

When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.

Contingent Assets are not recognized but disclosed in the financial statement by way of notes when inflow of economic benefit is probable.

N. EMPLOYEE BENEFITS

Employee benefits are accrued in the year in which services are rendered by the employee.

Short-term Employee Benefits

Short term Employee benefits are recognised as an expense in the statement of profit and loss in the year in which services are rendered.

Bonus

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

Post-employment Benefit Plans

Contributions to Gratuity, Super annuation fund etc., under Defined Contribution Plans payable in keeping with the related schemes are recognised as expenditure for the year.

In case of Defined Benefit Plans, the cost of providing the benefit is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in Other Comprehensive Income for the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, if any, and as reduced by the fair value of plan assets, where funded. Any asset resulting on account ofthis is limited to the present value of any economic benefit available in the form of refunds from the plan or reductions in future contributions to the plan.

O. OPERATING AND OTHER INCOME

i. REVENUE FROM SALE OF PRODUCT

Revenue from contracts with customers is accounted for only when it has commercial substance, and all the following criteria are met:

(i) parties to the contract have approved the contract and are committed to perform their respective obligations;

(ii) each party's rights regarding the goods or services to be transferred and payment terms there against can be identified;

(iii) consideration in exchange for the goods or service to be transferred is collectible and determinable.

Revenue from contract with customers is recognized on satisfaction of performance obligation, when control over the goods or services has been transferred and/or goods/ services are delivered/ provided to the customer. Delivery occurs when the goods have been sold or shipped or delivered to a specific location, and the customer has either accepted the goods under the contract or the company has sufficient evidence that all the criteria for acceptance have been satisfied.

Revenue is measured at the amount oftransaction price (consideration specified with the customers) allocated to that performance obligation. The transaction price of goods sold is net of variable consideration on account of rebates, claims and discounts, returns and value added tax. Goods and Service Tax (GST) and such other taxes collected on behalf of third party not being economic benefits flowing to the company are excluded from revenue. Accumulated experience is used to estimate and provide for the discounts/ right of return, using the expected value method.

iii. EXPORT BENEFITS

Export incentives are accounted for in the year of export if the entitlements and realisability thereof can be estimated with reasonable accuracy and conditions precedent to claim is fulfilled.

P. BORROWING COST

Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying Property Plant Equipment (PPE) which are capitalized to the cost of the related assets. A qualifying PPE is an asset, that necessarily takes a substantial period of time to get ready for its intended use or sale. Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.

Q. RESEARCH AND DEVELOPMENT

Research and development cost (other than cost of PPE acquired) are charged as an expense in the year in which they are incurred.

R. GOVERNMENTGRANTS

Government grants are recognized on systematic basis when there is reasonable certainty of realization ofthe same. Revenue grants including subsidy/rebates are credited to Statement of Profit and Loss Account under "Other Operating Income" or deducted from the related expenses for the period to which these are related. Grants which are meant for purchase, construction or otherwise to acquire non current assets are recognized as Deferred Income and disclosed under Non Current Liabilities and transferred to Statement of Profit and Loss on a systematic basis over the useful life ofthe respective asset. Grants relating to non-depreciable assets is transferred to Statement of Profit and Loss over the periods that bear the cost of meeting the obligations related to such grants.

S. TAXESONINCOME

Income tax expense representing the sum of current tax expenses and the net charge ofthe deferred taxes is recognized in the income statement except to the extent that it relates to items recognized directly in equity or other comprehensive income.

Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted pertaining to the reporting period.

Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences with respect to carry forward of unused tax credits and any unused tax losses/depreciation to the extent that it is probable that taxable profits will be available against which these can be utilized.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end ofthe reporting period.

Deferred tax assets include Minimum Alternative Tax (MAT) measured in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability and such benefits can be measured reliably and it is probable that such benefit will be realized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities.

Deferred tax items in correlation to the underlying transaction relating to Other comprehensive income and Equity are recognised in Other comprehensive income and Equity, respectively.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and adjusted to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part ofthe deferred tax asset to be utilized.

T. EARNINGSPERSHARE

Basic earnings per share are computed by dividing the net profit attributable to the equity holders ofthe company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders of the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

U. SEGMENT REPORTING

Operating segments are identified and reported taking into account the different risk and return, organisation structure and the internal reporting provided to the chief-operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance ofthe operating segments, has been identified as the Segment manager who allocates resources and assess the operating activities, financial results, forecasts, or plans for the segment.

4. CRITICAL ACCOUNTING JUDGMENTS, ASSUMPTIONS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilitieswithin the next financial yearare discussed below. The notes dealtwith in 4(a) to 4(j) below provide an overview ofthe areas that involved a high degree of judgement or complexity and of items which are likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each ofthese estimates and judgements are included in the relevant notes together with information about basis of calculation of each affected line item in the financial statements.

a) Depreciation / amortisation of and impairment loss on Property, Plant and Equipment / ROU/ Intangible assets.

Property, Plant and Equipment and Intangible Assets are depreciated/amortized on straight-line basis over the estimated useful lives in accordance with Internal assessment and Independent evaluation carried out by technical expert/ Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever applicable. ROU are depreciated on a straight line basis over the shorter ofthe lease term and useful life ofthe underlying asset. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation/ amortization and amount of impairment if any to be recorded during any reporting period. This reassessment may result in variation in the amount of depreciation and amortisation in future period.

The company reviews its carrying value of its Tangible and Intangible Assets whenever there is objective evidence that the assets are impaired. The required level of impairment losses to be made is estimated by reference to the estimated value in use or recoverable amount. In such situation Assets' recoverable amount is estimated which is higher ofasset's or cash generating units (CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are considered or otherwise in absence of such transactions appropriate valuations areadopted.

The assumptions for cash flows and fair valuation as required in this respect are dependent on the completion of resolution of company's borrowing which as dealt in Note no. 4(c) below read with Note no. 59(b) is under consideration of lenders and otherwise may have significant impact.

b) Arrangement containing leases and classification of leases

Ind AS 116 requires lessee to determine the lease term as the non-cancellable period of a lease adjusted with any option to

extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any option to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination ofthe lease and the importance ofthe underlying asset to the company's operations taking into account among other things, the location of the underlying asset and the availability of suitable alternatives. The lease terms and impact thereof are reassessed in each yearto ensure that the lease term reflects the current economic circumstances.

c) Going Concern assumption

As stated in Note no. 59(a), the financial statements ofthe company have been prepared on going concern assumption based on managements assessment of the expected successful outcome of steps and measures taken by the company and on resolution with respect to company's borrowing currently under evaluation and consideration ofthe lenders. In the event of the managements expectation and estimate in this respect, not turing out to be feasible in future, validity of assumption for going concern and possible impact thereof, even though presently not determinable are expected to be material.

d) Fair valuation and Impairment of Loans

All financial instruments are required to be fair valued as at the balance sheet date, as provided in Ind AS 109- Financial Instruments and Ind AS 113- Fair Value Measurement. In this respect, judgement is exercised to determine the value at which such assets are to be recognised. This requires critical evaluation of the realisable value of assets based on estimation and judgements which may not turn out to be true and may lead to significant adjustments in value.

The above includes various loans and advances to companies which have been considered good and recoverable. Recoverability of these and interest thereagainst and/or adjustments required as stated in Note no. 58 will be determinable on implementation of the Resolution Plan as approved by Hon'ble NCLT in case of one of the promoter group company which was under CIRP or otherwise on completion ofthe resolution with respect to company's borrowing.

e) Impairment of Investments in Subsidiaries and Associates

The company reviews its carrying value of investments in Subsidiaries and Associates carried at cost/ deemed cost (net of impairment if any) annually or more frequently when there is an indication for impairment. If the recoverable amount is less than its carrying amount the impairment loss is accounted for in the standalone statement of profit and loss. Fair valuation in respect of company's investment are being undertaken by the lenders as stated in Note no. 59(a) and otherwise may have significantimpact.

f) Fair ValueofBiologicalAssets

The fair value of Biological Assets is determined based on recent transactions entered into with third parties or available market price.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations offuture events that may have a financial impact on the Company.

g) Impairment loss on trade receivables

The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment loss as a result ofthe inability ofthe debtors to make required payments. The Company bases the estimates on theageingofthecustomersbalance, theircredit-worthiness and historicalwrite-offexperience.

h) Taxes on Income

Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses for estimation ofthe provision for taxes on income including agricultural income. These are based on assumption and inferences and are subject to final assessment by the taxation authorities. Further judgement is involved in determining the deferred tax position as on the balance sheet date.

The Company has unused tax tax credits, unrecognised deferred tax assets and entitled to tax holiday in Assam and West Bengal for which management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likelytiming and the level offuturetaxable profittogetherwith futuretax planning strategies. The management has reviewed the rationale for recognition of Deferred Tax Assets and based on the likely timing and level of profitability in future and expected utilisation of deferred tax thereagainst such recognition of deferred tax assets has been carried out. The amount of deferred tax is dependent upon the completion of resolution with respect to company's borrowing as referred to in Note no. 59(a) and therefore assumption for reversal/adjustment of deferred tax is expected to be materially different upon completion of resolution of company's debt for which required steps are being taken and effect will then be given on determination of amountthereof.

i) Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which are subject to change in future.

Management also uses in-house and external legal professional to make judgments for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/ against the Company.

j) Defined benefit obligation (DBO)

The present value of the defined benefit obligations and long term employee benefits depends on a number of factors that are determined on an actuarial basis using a number of assumptions. An actuarial valuation involves making various assumptions that maydiffer based on actual developments in future. These include the determination ofthe discount rate, inflation, future salary increases and mortality rates. Due to the complexities involved in the valuation and being long-term in nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at every financial year end.

Nature and Purpose of Reserves

20.1 Capital Reserve

Represents the amount transferred from the transferor company pursuant to Scheme of Arrangement effected in earlier years.

20.2 Securities Premium Reserve

Securities Premium represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013.

20.3 General Reserve

General reserve is a free reserve which is created by transfer of profits from retained earnings. As the general reserve is created by a transfer from one component to another and is not an item of Other Comprehensive Income, items included in the general reserve is generally not reclassified subsequently to Statement of Profit and Loss.

20.4 Other Reserves

Represents the balance amount of reserve which had arisen on transfer of BulkTea Division of Eveready Industries India Limited pursuant to Scheme ofArrangement.

20.5 Retained Earnings

Retained earnings generally represents amount of accumulated surplus/deficit of the company. This includes Other Comprehensive Income of (Rs. 8,220.09 lakhs) (31st March 2023: (Rs. 7,136.01 lakhs)) relating to remeasurement of defined benefit plans (net of tax) which cannot be reclassified to Statement of Profit and Loss.

20.6 Revaluation Surplus

Represents differential arising on revaluation of Property, Plant and Equipment by the erstwhile BulkTea Division of Everready Industries Limited demerged to the companywith effectfrom 1st April 2004 pursuantto the Scheme ofArrangement. The said reserve has been carried over being part of PPE, recognised at carrying value as per previous GAAP as deemed cost on the date of transition to Ind AS.

39.1 Exceptional Item include:

a) Provision of Rs. 91,942.16 lakhs during the year ended 31st March 2023 made against loans and Inter-Corporate Deposits (ICDs) including interest thereon given to Promoter group and certain other companies as stated in Note no. 58(a) and

b) Provision of Rs. 1,400.00 lakhs made during the year ended 31st March 2023 against advance to a body corporate given in earlier years and lying outstanding for a considerable period of time, recoverability whereof in absence of required details and confirmations etc., considered remote was fully provided for in that year.

40. Schemes Of Amalgamation/Scheme Of Arrangement Given Effect Toln Earlier Years

Pending completion ofthe relevant formalities oftransfer of certain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books ofthe Company under the name ofthe transferor companies (including other companies which were amalgamated with the transferor companies from time to time).

41. EMPLOYEE BENEFITS I. Defined Contribution Plan Provident Fund:

The Company makes contributions to Provident Fund and Pension Scheme for eligible employees. Under the schemes, the Company is required to contributeaspecified percentage/fixed amount ofthe payroll costs to fund the benefits. The contributionsas specified under the law are paid to the respective fund set up by the government authority. Contributions towards provident funds are recognised as an expense for the year. Further, the Company has also set up Provident Fund Trusts in respect of certain categories of employees which is administered byTrustees. Both the employees and the Company make monthly contributions to the Funds at specified percentage ofthe employee's salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, ifany, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan's liabilities and interest rate guarantee obligations as at the balance sheet date as per the principle laid down in Ind AS 19 issued by Ministry of corporate affairs and guidelines GN26 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation ofthe Company as at the balance sheet date. The Company's contribution of Rs. 170.90 lakhs (31st March 2023: Rs. 184.11 lakhs) to the Provident Fund Trust in this respect has been expensed under the 'Contribution to Provident and Other Funds'.

II. Post Employment Defined Benefit Plans:

The Post Employment defined benefit scheme are managed by Life Insurance Corporation of India Limited/Trust is a defined benefit plan. The present value of obligation is determined based on independent actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Details of such fund are as follows:

a) Gratuity (Funded)

The Company's gratuity scheme, a defined benefit plan is as per the Payment of Gratuity Act, 1972, covers the eligible employees and is administered through certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/trustees themselves, make payments to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment, of an amount based on the respective employee's salary and tenure of employment subject to a maximum limit of Rs. 20.00 lakhs. Vesting occurs upon completion of five years of service. The amount of gratuity payable is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

b) Superannuation (Funded)

The Company's Superannuation scheme, a Defined Benefit plan, is administered through trust funds and covers certain categories of employees. Investments of the funds are managed by insurance companies /trustees themselves. Benefits under these plans had been frozen in earlier years with regard to salary levels then prevailing. Upon retirement, death or cessation of employment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee's tenure of employment and salary.

c) Staff Pension - (Unfunded)

The Company's Staff Pension Scheme, a Defined Benefit plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee's salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion oftwenty years ofservice.

d) Medical Insurance Premium Re-imbursement (Unfunded)

The Company had a scheme of re-imbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject to a monetary limit. The scheme has been discontinued w.e.f 19th December 2023 and the liability thereof have been written back during the year.

e) Expatriate Pension (Unfunded)

The Company had an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to their surviving spouses. The scheme has been discontinued w.e.f 1 st April 2023 and the liability thereof have been written back during the year.

(i) FAIR VALUATION TECHNIQUES:

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values. These assumptions are subject to completion of resolution plan and determination of terms and conditions of borrowings and amount given as loans to various parties as stated in note no. 59 and 58 respectively:

a) The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets and short term borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at cost in the financial statements other than dealt with hereunder approximate their fair values.

b) The Company's long-term debt from Banks and financial institutions were originally contracted at floating rates of interest. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. Terms and conditions of the borrowings are pending resolution as stated in Note no. 59(a) and there is a uncertainty in this respect as on this date. Further, there are other unsecured borrowing as stated in note no. 25.4 terms and conditions whereof have not been decided.

c) The fair value of Inter-Corporate deposits given by the company and outstanding (net of provision) as on31st March 2024 are based on management evaluation related to the credit and non-performance risks associated with the counterparties which is dependent ontheoutcome ofthe resolution plan in case of one ofthe promotergroupcompanywhich was underCIRPasapproved byHon'ble NCLT, Kolkata as stated in Note no. 58(a) or otherwise on completion ofthe resolution ofthe company's borrowing as stated in Note no. 59(a) and there is a uncertainty to the extent as stated in the said note.

d) Interest on borrowings both Short term and Long term has been provided as stated in Note no. 59(c) which is subject to confirmation and/or on completion of resolution as stated in Note no. 59(a) and as such there is uncertainity in this respect as on this date and amount finally payable in this respect as such is currently not determinable.

(ii) FAIR VALUE HIERARCHY (a) Financial Instruments

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value (b) measured at amortised 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 prescribed under the Indian Accounting Standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting date.

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. Ifall significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more ofthe significant inputs is not based on observable market data, the instruments is included in level 3.

During theyearended 31st March 2024and 31st March 2023,therewere no transfers between level 1, level 2 and level 3.

The company's activities exposed it to a variety of financial risks. The key financial risks include Market risk, Credit risk and Liquidity risk. The company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors reviews and approves policy for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. As stated in Note no. 59(a), the company has defaulted in repayment of borrowings including interest accrued thereon due to non recovery oftheamountoutstanding in respect ofICD'sgiven bythecompanyand pending completion ofthe resolutionwith respect to company's borrowing currently under consideration of lenders. The company expects to restructure it's borrowings and mitigate the related financial risk. Financial risk management as stated below has been considered based on the assumption of successful outcome of the resolution of borrowing which is under consideration of the lenders as stated in the said note. The risk envisaged can materially be different depending upon terms and conditions specified in this respect.

(A) Credit risk

Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial obligations as per the terms of contract. The Company is exposed to credit risk for receivables, cash and cash equivalents and financial guarantees. Loans to group companies given has lead to material concentration of credit risks due to non-recoverability of amount thereagainst including accrued interest.

Credit risk on trade receivables is minimum since sales through different mode (i.e. auction, consignment, private - both domestic and export) are made after judging credit worthiness of the customers, advance payment, deposit from customers or against letter of credit by banks. The history of defaults has been marginal and outstanding receivables are regularly monitored. Credit risk on the loans to parties is significant since recoverability thereagainst has been a matter of concern due to non-payment by promoter group and other entities to whom amounts have been lent and in case of one of the promoter group company which was under CIRP as given in Note no. 58(a) and implementation of resolution plan as approved by Hon'ble NCLT is in process. The Company is expecting to deal with the outstanding amounts and address the risk involved therein indue course of time on implementation of resolution plan as per the CIRP proceedings initiated against one of company to whom loan have been advanced by these Group companies and/or on completion of resolution ofthe company's borrowing.

Credit risk with respect to the balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. The company currently does not have surplus fund as such to make investments. However, in the event offund being so available, Investments will be 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.

The Company establishes an allowance for impairment that represents its estimate of losses in respect of trade and other receivables. Receivables are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery there against has been considered to be remote.

The carrying value of the financial assets (net of impairment losses) represent the maximum credit exposure. The maximum exposure to credit riskatthe reporting date isthe carrying value ofeach class offinancial assets disclosed in Note no.47.

Financial assets that are neither past due nor impaired.

Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions.

Financial assets that are past due but not impaired.

Certain Trade receivables which are past due at the end of the reporting period, no credit losses there against are expected to arise considering the steps being taken for realisation thereof. In case of Inter-Corporate Loans due to the reasons given in Note no. 58(a), such losses are currently not being determinable and as such will be dealt with on determination thereofas stated in the said note.

(B) Liquidity risk

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

Management monitors rolling forecasts of the company's liquidity position 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. The Company had in earlier years granted loans to Promoter Group and other entities which created a mismatch in servicing its debt and other obligations. Further, the cash losses incurred and cut-back payment made as stated in Note no. 21.7 and Note no. 59(a) has further widened the gap of Current Assets vis-a-vis Current Liabilities. In this regards resolution with respect to company's borrowing is under consideration as detailed in Note no. 59(a) to improve the overall liquidity over a period of time. Pending this, the company as stated in said note is passing through prolonged financial distress over a considerable period oftime.

Maturities offinancial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for:

i all non-derivative financial liabilities, and

ii derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

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. The amount of borrowings and interest thereon has been computed on the basis stated in Note no. 59(c) and amount finally payable and terms of repayment thereof will be determinable on resolution with respect to company's borrowing.

(C) Market risk

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company's functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecasttransactions.

The Company as per the risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

10% appreciation of the respective foreign currencies with respect to functional currency (holding all other variables constant) of the Company would result in reduction of the Company's loss (having an impact on the financial statements) by approximately Rs. 75.89 lakhs for financial assets. 10% depreciation ofINR would have an equal and opposite effect on the Company's financial statements.

(ii) 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. Financial Instruments at fixed rates of interest exposes the company to fair value interest rate risk as there is no risk of interest rate volatility.

The Company's main interest rate risk arises from short term and long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. Considering the same, the carrying amount of said borrowings was considered to be at fair value. During 31st March 2024 and 31st March 2023, the Company's borrowings at variable rate were mainly denominated in INR.

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.

The exposure of the Company's financial assets and financial liabilities as at 31st March 2024 and 31st March 2023, to interest rate risk excluding certain ICD and Deposits as dealt in Note no. 25.4 is as follows:

Increase of 50 basis points (holding all other variables constant) in interest rates at the balance sheet date would result in increase in finance cost by Rs. 761.33 lakhs resulting in increase in loss (having an impact on the financial statements) for the year ended 31st March 2024 and Rs. 787.39 for the year ended 31st March 2023. A decrease in 50 basis point would have an equal and opposite effect on the Company's financial statements. This should be read with Note no. 36.2 regarding non-recognition of interest in Inter Corporate Deposits.

Interest risk on financial assets and liabilities as stated above has been considered based on the accounting followed in this respect as stated in Note no. 58(a) and 59(c). The rate of interest and amount payable in this respect will finally be determinable on completion of resolution of company's borrowing which as stated in Note no. 59(a) is under consideration of lenders. The risk envisaged can materially be different on completion of resolution and terms and conditions being specified in this respect.

(iii) Price risk

The Company is not an active investor in equity markets; it continues to hold certain investments in equity for long term strategic purpose which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity instruments as at 31st March 2024 is Rs 6,239.29 lakhs (31st March 2023: Rs. 5,212.91 lakhs). Accordingly, fair value fluctuations arising from market volatility is recognised in Other Comprehensive Income.

(D) Agricultural Risk

Cultivation of tea being an agricultural activity and highly labour intensive industry, where there are certain specific financial risks. These financial risks arise mainly due to adverse weather conditions, salaries, wages and other benefits payable to workers, logistic problems inherent to remote areas, and fluctuation of selling price offinished goods (tea) due to increase in supply/availability.

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

i) Managing inventory levels of agro chemicals, fertilizers and other inputs to take care of adverse weather conditions.

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

iiii Forward contracts are made with overseas customers as well as domestic private customers, in order to mitigate the financial risk in fluctuation ofselling price oftea.

iv Measures for rationalising the labour costs especially with possible variations of deployment thereof on casual basis.

v. Dat to day monitoring of the required liquidity in the system given the constraints currently faced by the company in this respect. Resolution of company's borrowing as stated in Note no. 59(a) is under consideration and outcome thereof as expected is for ensuring sustainability of core agricultural operations ofthe company.

(a) RiskManagement

The primary objective of the Company's capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximize shareholder value. The Company's objective when managing capital is to safeguard its ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stakeholders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile ofthe Company.

In orderto maintain oradjustthe capital structure, the companydepending upon the outcome ofthe resolution ofthe borrowing as stated in Note no. 59(a) may issue new shares or sell assets to reduce debt.

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

Net debt implies total borrowings ofthe Company as reduced by Cash and Cash Equivalent and Equity comprises all components attributable to the owners ofthe Company.

The following table summarises the Net Debt to Equity Ratio which is subject to final determination of amount thereof on resolution with respect to company's borrowing as stated in Note no. 59(a):

(v) Further to above, the Company has certain operating lease arrangements for office, transit houses, etc. on short-term leases. Expenditure incurred on account of rental payments under such leases during the year and recognized in the Statement of Profit and Loss amounts to Rs. 114.91 lakhs (31st March 2023: Rs. 253.76 lakhs). Also refer note no. (vi) below.

(vi) Lease Agreement in respect of premises having registered and corporate office of the company has expired on 31st August, 2022 and terms thereof are yet to be finalised by the lessor. Pending this, the amount of rent payable by the company being non-determinable as such has not been recognised in these financial statements. Adjustments, if any required in this respect will be recognised on determination thereofand will then be given effect to in the financial statement ofthe subsequent periods.

54. SALE OF SPECIFIED ASSETS OF CERTAIN TEA ESTATES

On 9th August, 2018, the shareholders ofthe Companyapproved to sell specified assets ofcertain tea estates. In continuation ofthe steps

initiated in this respect in earlier years:

a) The specified assets of one tea estate had been identified and approved for sale. Memorandum of Understanding/Term sheet with the proposed buyer for an aggregate consideration of Rs. 2,815.00 Lakhs, subject to due diligence and necessary approvals, etc. had also been entered by the company. Pending final binding agreement and completion of the transaction, such sales has not been recognised. Advance of Rs 550.00 Lakhs received from the proposed buyer against sale consideration has been shown under'Other Current Liabilities'.

b) Further, the Company had received advances against sale of estates and certain other assets amounting to Rs. 1,413.87 lakhs (including Rs. 550.00 lakhs dealt in (a) above). Due to reason given in (c) below, the sale of these specified assets have not been given effect to and these has been continued to be included under Property, Plant and Equipment (PPE) rather than as "Assets held for Sale" and have been depreciated in accordance with other items of PPE

c) The Hon'ble High Court of Delhi vide it's ad-interim ex-partie order of injunction dated 13th December 2019 has restrained the company from selling, transferring, alienating, disposing, assigning, encumbering or creating third party rights on any of its assets and carrying out any changes in its capital structure or any corporate or debt restructuring and the matter is pending before Arbitral Tribunal.

56.1 Amount is below the rounding off norm adopted by the Company.

57 IL&FS INFRASTRUCTURE DEBT FUND ('ILFS-IDF')

The company had given undertaking to IL&FS Infrastructure Debt Fund ('ILFS-IDF') and Aditya Birla Finance Limited ('ABFL') in connection

with borrowings and other facilities availed by the group entities. Pursuant to an agreement entered with ILFS-IDF and ABFL, the claims

made by them have been settled during the year for Rs. 4,967.00 lakhs and Rs. 3,200.00 lakhs respectively by Dufflaghur Investment Limited.

The company's obligations in this respect and related terms and condition thereof and consequential impact if any in this respect have

presently not been determined and therefore has not been given effect to in these financial statements.

58 INTER CORPORATE LOANS GIVEN

a) In respect ofInter-Corporate Deposits (ICDs) given to Promoter group and certain other companies ('borrowing companies') as given in Note no. 50(B), the amount outstanding aggregates to Rs. 2,76,108.95 Lakhs as at 31st March 2024 (31st March 2023: Rs. 2,76,173.95 Lakhs). Further, interest of Rs. 9,941.50 lakhs on these amounts were accrued upto 31st March 2019 are also outstanding as on this date. Interest on such ICDs considering the waiver sought by borrower companies and uncertainties involved with respect to recovery and determination of amount thereof, has not been accrued since 01 st April 2019. These borrowing companies which in turn advanced the amount so taken by them to Promoter Group and other entities including one ofthe promoter group company which was under Corporate Insolvencyand Resolution Process ('CIRP') as perthe Insolvencyand Bankruptcy Code, 2016 (IBC) and in respect ofwhich the Resolution Plan as submitted and approved by Hon'ble National Company LawTribunal ('NCLT'), Kolkata pursuant to CIRP is under implementation. Provision of Rs. 1,01,039.50 lakhs (including Rs. 91,942.16 lakhs shown as exceptional items under Note no. 39) on lumpsum basis without prejudice to company's legal right to recover the amounts given by it, has been carried forward in these financial statements. This includes Rs. 9,941.50 lakhs against interest accrued upto 31st March 2019 which were fully provided for in the earlier years. The amount finally recoverable against outstanding amounts net of provision thereagainst as mentioned is pending determination and consequential impact will be given effect to on ascertainment ofamount thereof. Pending this and the resolution with respect to company's borrowing by the lenders as dealt with in Note no. 59(a) below, no further provision/adjustment at this stage has been made and recognised in the financial statement for the year ended 31st March, 2024.

b) In respect of the Inter-Corporate Deposits to companies as dealt herein above inNote no. 58(a), the predecessor auditors' had issued an adverse opinion on the audited financial statement for the year ended 31st March 2019. Inter-Corporate Deposits to companies as dealt herein above include amounts reported upon by predecessor auditor being in the nature of book entries. This includes amounts given to group companies whereby applicability of Section 185 of the Companies Act, 2013 and related non-compliances, if any could not be ascertained and commented upon by them. Loan of Rs. 1,85,010.95 Lakhs (net of provision) given to various parties as given in Note no. 58(a) above are outstanding as on 31st March 2024. The issues raised including utilisation ofamount of these loans etc. are also being examined by relevant authorities. Replies to the queries sought and information and details required by the authorities have been provided and final outcome and/or directions if any are awaited as on this date.

59 GOING CONCERN AND DEFAULT IN BORROWINGS

a) The Company's financial position is continued to be under stress and the operational performance has further deteriorated in the recent period primarily due to the increase in wage rate and decrease in the realisation against output. The Inter-Corporate Deposits ('ICDs') given to various Promoter group and certain other entities in earlier years along with interest to the extent accrued earlier are lying outstanding. Considering the possibilities of recovery etc., Rs. 1,01,039.50 lakhs as stated in Note no. 58(a) were provided in the earlier year against the amount outstanding in respect of the above ICDs. Non-recovery of such ICDs coupled with current operational performance have caused financial constraints resulting in hardship in servicing ofthe short term and long-term debts and meeting other liabilities. Even though certain repayments have been made to lenders against borrowings apart from by invocation of securities etc. by them and through cut-back against tea sale proceeds, this along with the operational losses has resulted in insufficiency offund for making payment towards company's obligations including those relating to Employees, statutory and other liabilities causing accumulation ofamounts being lying unpaid against these liabilities to a significant extent as on31st March, 2024.

The Resolution process of the company in terms of circular dated 07th June, 2019 issued by the Reserve Bank of India was initiated in earlier years. Inter-Creditor Agreement ('ICA') for arriving at and implementing the resolution plan was signed by all the lenders ('bankers'). Moreover, the forensic audit for utilisation of funds borrowed in the past conducted on behest of the lenders, Techno Economic Viability (TEV), Valuation oftea estatesand otherassets and credit rating fordraft Resolution Plan prepared bySBI Capital Markets Limited, one ofthe leading investment banker were completed. Meanwhile, certain lender and creditor have filed petitions under Insolvencyand Bankruptcy Code, 2016 ('IBC') with Hon'ble National Company LawTribunal, Kolkata ('NCLT') which are pending as on this date. Pending these, even offer for One Time payment of Rs. 1,03,000.00 lakhs ('OTS') in settlement of entire amount outstanding against their loans including interest thereon was made at the behest ofthe lenders by the company, the validity period ofwhich in absence of consensus among certain lenders has expired on 30th September, 2023. Consequent to this, the company on the request ofthe lenders has submitted a fresh resolution plan in the month of January 2024 and reports on the company's valuation carried out by two Independent Valuers appointed by the lenders have been submitted to them. The lenders as confirmed by the management are considering the proposals including that submitted by the company with respect to the borrowings from them and necessary communication conveying their decision on the matter is awaited as on this date.

The management is confident that the lenders will arrive at a suitable resolution with respect to the company's borrowings from them so as to facilitate in arriving at a sustainable amount in this respect along with related costs thereto and the period over which these are repayable.

Considering the lenders' support in restructuring the debt as above and resultant rationalisation of costs and period of repayment of the company's borrowing along with management's continuous effort for rationalising operational costs as well and additional fund to be made available in the system or otherwise and other ameliorative measures taken and/or proposed to be taken in due course of time it is envisaged that the company will be able to generate sufficient cashflows to meet its obligations and strengthen its financial position over a period oftime.

In view of the measures dealt herein above being under active consideration as on this date pending final decision of the lenders on the matter, these financial statement have been prepared on going concern basis.

b) As stated in Note no. 59(a), the Company has incurred significant amount of losses and it's current liabilities are in excess of the current assets. Considering these indicators and circumstances stated herein above in Note no. 59(a), fair Value of Property, Plant and Equipment, Capital Work in progress and other Intangible Assets ('CGU') are required to be ascertained for testing of Impairment thereagainst. Further, the company has investment of Rs. 15,967.18 lakhs in Borelli Tea Holdings Limited which are also required to tested for impairmentas on31st March, 2024.Thevaluation exerciseas stated in Note no. 59(a) has been undertaken bythe lenders and outcome thereof is awaited as on this date. Pending this, impairment if any in value of CGU and Investments as such have not been determined and recognised in these financial statements.

c) Pending decision of the lenders as dealt with in Note no. 59(a) above and consequential adjustment in this respect, Interest on borrowings from banks including those assigned by them to the Asset Reconstruction Company ('ARC') have been continued to be provided on simple interest basis based on the rates specified in term sheet or otherwise stipulated/advised from time to time and penal/compound interest if any has not been considered. Further, amount repaid to lenders and/or recovered by them including by invoking securities and cut back payments from the sale proceeds of the tea etc., have been adjusted against principal amount outstanding. The amount payable to the lenders in respect of outstanding amounts including interest thereagainst is subject to confirmation and determination and consequential reconciliation thereof in terms ofthe resolution to be arrived at with the lenders as on this date.

d) Further, Interest of Rs. 12,231.26 Lakhs (including Rs. 3,045.44 Lakhs for the year) on Inter Corporate Deposits/ Short-Term Borrowings (Rs. 22,379.40 lakhs outstanding as on 31st March, 2024) taken bythe company has not been recognised. Interest in this respect in line with 59(c) above have been determined on simple basis at stipulated rate or otherwise advised/ considered for similar arrangement from time to time. This includes certain payments made by certain body corporates on behalf of the company amounting to Rs. 2,119.20 lakhs (including payment of Rs. 1,004.20 lakhs made during the year) against settlements directly made by them for repayment of ICDs/ Advances taken by the company in earlier years, pending finalisation ofterms and conditions with respect to these amounts. This however does not include interest if any on outstanding advances of Rs. 4,200.00 lakhs (net of Rs. 800.00 lakhs paid by third party during the year) from customers, pending recognition as Inter Corporate Deposits and finalisation ofterms and conditions thereof. Further, Interest including compound/ penal interest if any payable with respect to these are currently not determinable and as such the amount in this respect have not been disclosed and included in the above amount.

e) Adjustments, ifany required with respect to (b) to (d) above will be recognised on determination thereof and will then be given effect to in the financial statements ofsubsequent periods.

Note 60:

Certain debit and credit balances including borrowings and interest thereupon dealt with in Note no. 59(c), clearing accounts (other than inter-unit balances), trade and other payables, advances from customers, loans and advances (other than as dealt with in Note no. 58(a) above), trade and other receivable, other current assets and certain statutory and other liabilities are subject to reconciliation with individual details and balances and confirmation thereof. Adjustments/ Impact and related disclosures including those relating to MSME and interest thereagainst ifany payable in this respect are currently not ascertainable.

Note 61 :

The Company has used two accounting software, viz Oracle Financials ('Oracle') and Navision for maintaining its books of account. While both these softwares have the feature of recording audit trail (edit log) facility, in case ofOracle the said features except for certain specified applications was enabled at application level and was operational throughout the year for all relevant transactions recorded in the said software. However, in case of Navision, the same was not enabled during the year pending necessary updation ofthe system and upgradation of the storage capacity. Further, the feature of audit trail at database was not enabled throughout the year to log any direct data changes. The Company is in the process of evaluating the possible technical upgradation ofthe software for implementation of audit trail requirement to ensure necessary compliances in this respect.

Note 62:

Additional Information pursuant to ammendments (effective 1st April, 2021) made in Schedule III to the extent applicable to the company (Other than those that have been disclosed under the respective Notes to the financial statements:

A) Utilisation of borrowed funds and share premium

(i) The Company has not advanced or loaned or invested funds to any other persons or entities, 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 ofthe ultimate beneficiaries.

(ii) The Company has not received any fund from any persons or entities, 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 ofthe Funding Party (Ultimate Beneficiaries) or

b. provideanyguarantee,securityorthe likeon behalfofthe ultimate beneficiaries.

(B) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(C) Undisclosed income

The Company does not have any transactions 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).

(D) Compliance with number of layers of companies

The Company has complied with number of layers prescribed under clause (87) of section 2 ofthe Act read with Companies (Restriction on number of layers) Rules, 2017.

Note 63:

These financial statements have been approved by the Board of Directors ofthe Company on 30th May 2024, for issue to the shareholders for their adoption.

Note64 :

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification/disclosure.

As per our report of even date For and on behalf of Board of Directors

For Lodha & Co, Aditya Khaitan - Chairman and Managing Director

CharteredAccountants (DIN No: 00023788)

Pradip Bhar - Chief Financial Officer

RPSi_ngh AlokKumarSamant -CompanySecretary

Partner Place: Kolkata Dated: 30th May2024