3.11 Cash flow statement:
Cash flows are reported using the indirect method, whereby, profit before tax is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing and
financing activities.
3.12 Dividends:
Final Dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are
recorded as liability on the date of declaration by the Company’s Board of Directors.
3.13 Segment Reporting:
The Company identifies operating segments based on the internal reporting provided to the chief operating decision¬
maker.
The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors that makes strategic decisions.
The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment
revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their
relationship to the operating activities ofthe segment. The Company operates in a single Business segment namely Cultivation,
Manufacturing and Marketing of Tea. Accordingly, this is the only business segment to be reported and geographically
segment is considered as India and rest of the world.
As per records ofthe Company, including its register of shareholders/ members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
G. Equity shares movement during the 5 years preceding March 31, 2025
Equity shares extinguished on buy-back
The Company bought back 5,288 equity shares for an aggregate amount of Rs. 84.61 lakhs being 0.84% of the total paid up
equity share capital at Rs. 1,600 per equity share. The equity shares bought back were extinguished on March 19, 2021.
1. Capital Redemption Reserves - Capital Redemption Reserve was created for buy - back of shares and can be utilised for issuance
of fully paid up bonus shares.
2. General Reserve - General Reserve is created out of profits earned by the company by way of transfer from surplus in the
statement of profit and loss. The company can use the reserve for payment of dividend and issue of fully paid-up and not paid
up bonus shares.
3. Retained Earnings: 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.
4. Equity investments through other comprehensive income: The fair value change of the equity instruments measured at fair
value through other comprehensive income is recognised in Equity instruments through other comprehensive income. Upon
derecognition, the cumulative fair value changes on the said instruments are not reclassified to statement of profit and loss.
The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotions and
other relevant factors.
Exposure to Risks:
These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.
Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality
of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan’s
liability.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan’s liability.
B. 2 Valuation inputs and relationship to fair value
'The fair value is determined based on valuation reports / recent transactions including potential transactions within a reasonable
period to the balance sheet date.
C. Fair value of Financial Instruments measured at amortised cost :
Due to the short-term nature of cash and cash equivalents and the short-term maturities of trade receivables, loans, other
financial liabilities and assets the management considers that the carrying amount of assets and liabilities recognised at amortised
cost in financial statements is approximate to their fair value.
The fair value of financial instruments as referred to in note (A) and (B) above have been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active
markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].
NOTE 40
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The
main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations.
The Company’s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive
directly from its operations. The Company also enters into derivative transactions.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management
of these risks. The financial risk activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed by the senior management in accordance with the Company’s policies and risk objectives. All derivative
activities for risk management purposes are carried out by professionals who have the appropriate skills, experience and supervision.
It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.
(A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and
derivative financial instruments.
The sensitivity analyses in the following sections relate to the position as at 31 March 2025 and 31 March 2024.
The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates
of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis
of hedge designations in place at 31 March 2025. The sensitivity analysis for equity price risk has been prepared on the basis
of the fair value of the equity investments carried as FVTPL (under current investments) and basis change in equity price.
The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post¬
retirement obligations; provisions; and the non-financial assets.
The following assumptions have been made in calculating the sensitivity analyses:
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based
on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.
(d) Commodity price risk
The prices of agricultural commodities are subject to fluctuations due to various factors. In the ordinary course of
business, the company is exposed to commodity price risk to the extent its open sales are not balanced by inventory. The
company has in place in a risk management policy to manage such risk by having conscious limits on the sales committed
for future periods for which production is yet to be completed and inventory is in place.
(B) Credit risk
Credit risk is the risk that a 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)
and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions
and other financial instruments.
(a) Trade receivables
Customer credit risk is managed as per the Company’s established policy, procedures and control relating to customer
credit risk management. Credit limits are set with approvals on the basis of the defined policies. Outstanding customer
receivables are regularly monitored and exposures are kept within the credit limits fixed for each customer.
Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same
geographical region, or have economic features that would cause their ability to meet contractual obligations to be
similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of
the Company’s performance to developments affecting a particular industry.
In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to
focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed
accordingly.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large
number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation
is based on exchange losses historical data. The Company does not hold collateral as security. The Company evaluates the
concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and
industries and operate in largely independent markets.
(b) Financial instruments and cash deposits
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 Company’s maximum exposure to credit risk for the components of the balance sheet at 31 March 2025 and
31 March 2024 is the carrying amounts as mentioned in Notes.
CAPITAL MANAGEMENT
For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves. The
primary objective of the Company’s capital management is to maximize the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio,
which is net debt divided by fund attributable to Equity Shares Holders. The company includes within net debt, interest bearing
loans and borrowings less cash and short-term deposits, excluding discontinued operations.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and
31 March 2024.
NOTE 44
AUDIT TRAIL NOTE
The Company has implemented the new ERP system from 1st February 2024. The audit trail (edit logs) feature at both application
and database level are enabled and implemented since then.These audit trails were not tampered during this period and the logs are
also preserved. However, for legacy system as there was no audit trail enabled, question of preservation does not arise.
NOTE 45
OTHER STATUTORY INFORMATION
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company
to holding any benami property.
(ii) The company has searched transactions with Struck-off companies by comparing company’s counter parties with publicly
available database of struck of companies through a manual name search. Based on such a manual search, no party identified to
be reported in the financial statements.
(iii) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind
of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party)
with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities
identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
(v) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered,
disclosed as income during the year in the tax assessments under the income tax act, 1961 (such as, search or survey or any of the
relevant provisions of the Income Tax Act, 1961.
(vi) The Company has in respect of the investments made, complied with no of layers as defined under section 2(87) of the
Companies Act, 2013.
(vii) The Company has nothing to report on compliance with approved Scheme(s) ofArrangements.
(viii) The Company has not taken loans and borrowings from lenders (Other than banks and Financial Institutions).
(ix) The company has done registration of charges or satisfaction, if any with ROC within the statutory period during the year.
NOTE 47
DIVIDENDS
Dividends paid during the year 2024-25 represent final dividend of 500% declared for the financial year 2023-24 amounting to
Rs.311.03 lakhs.
The dividends declared by the Company are in Indian Rupees and are based on the profits available for distribution as reported in
the statutory financial statements of the Company. Subsequent to March 31, 2025, the Board of Directors of Company have
proposed a final dividend of Rs. 30/- per share (300%) in respect of financial year 2024-25. The proposal is subject to the approval
of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately Rs. 186.62 Lakhs.
NOTE 48
EXCEPTIONAL ITEM
During the year ended 31st March 2025, Rs.95 lakhs of provision towards employee benefits for past periods has been recognised
based on regulatory decisions and disclosed as exceptional item. (For year ended 31st March 2024, gain on sale of land of
Rs. 1,773.60 Lakhs has been recognised and disclosed as exceptional item.)
NOTE 49
Figures for the previous periods have been regrouped / reclassified to conform to the classification of the current period.
As per our Report of even date attached For and on behalf of the Board of Directors
For PKF Sridhar & Santhanam LLP Shanthi Thomas Ajit Thomas
Chartered Accountants Executive Director Chairman
Firm’s Registration N°. 003990S/S200018 DIN : 00567935 DIN : 00018691
S Narasimhan
Parmer Deepak G. Prabhu S. Lakshmi Narasimhan
Place : Chennai Membership No. 206047 Chief Financial Officer Company Secretary
Date : 30.05.2025 UDIN: 225206047BMOJHH2147 Membership No. A35541
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