2. Contingent Liability and commitments to the extent not provided for:

i. Claims against the company not acknowledged as debts:

The Company has obtained a stay of proceedings from the Honourable High Court of Madras on 24th March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export sales effected through auction centres. The matter is pending and in common with the other tea planting companies.

ii. Income Tax Matters:

a) Tax assessments have been completed up to Assessment year 2022-23.

b) For the Assessment year 2014-15, the tax authorities reopened the assessment under section 263 of the Income tax Act, 1961, deduction under 80IA wrongly claimed the assesse under faceless assessment scheme. The same issue was disallowed earlier and appeal filed by the company and the same was dismissed vide ITAT order dated 06.12.22 and stated in it that the AO is free to examine the aspect of the claim of deduction u/s 80IA of the Act, after allowing reasonable opportunity of being heard to the assesse and for the reason no provision has been made.

c) Disputed tax dues of Rs.20.82 lakhs pertaining to the Assessment year 2017-18 are appealed before CIT (Appeals), Coimbatore. During the year company received order against the company. Further company appeal with ITAT (Appeal). The company is advised that the cases are likely to be disposed of in its favour and hence no provision is considered necessary therefor.

In respect of current year, the Directors proposed Dividend of Re.1/- per share on equity shares of face value Rs.10 each on 14/05/2024

There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. Except that an amount of Rs.7,568/-, Rs.8,820/-, Rs. 3,540, Rs. 1,416, Rs. 1,062 and Rs.532/-relating to the Dividend declared for the year 2009-10, 2010-11,2011-12, 2012-13, 2013-14 and 2014-15 respectively has been kept on hold due to court case.

7. Employee Benefits:

a) Defined Contribution Plan:

The Company makes contribution towards employees' provident fund and superannuation fund. Under the rules of these schemes, the company is required to contribute a specified percentage of payroll costs. The company during the year recognized Rs.198.45 lakhs (Previous year Rs.197.57 lakhs) as expense towards contribution to the Provident Fund.

The liability towards superannuation fund for the year ended 31st March 2024 amounting to Rs19.68 lakhs (Previous year Rs.20.28 lakhs) has been charged to Statement of Profit and Loss.

The leave encashment for the year ended 31st March 2024 amounting to Rs.19.75 lakhs (previous year Rs. 16.10) has been charged to Statement of Profit and Loss and the net liability as on 31.03.2024 is Rs.43.14 lakhs (previous year - Rs.30.25 lakhs).

H. Categories of plan assets:

All plan assets (100%) are held in 'Assets under Insurance schemes' for the year ending 31.03.2024 and 31.03.2023.

I. Risk Exposure:

The gratuity scheme is a final salary defined benefit plan, that provides for a lump sum payment at the time of separation; based on scheme rules and benefits are calculated on the basis of last drawn salary and the period of service at the time of separation and paid as lump sum. There is a vesting period of 5 years. The design entitles the following risks that affect the liabilities and cash flows,

i. Interest rates risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond's yield falls, the defined benefit obligation will tend to increase.

ii. Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

iii. Demographic risk: The risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effect of these decrements on the DBO depends upon the combination of salary increase, discount rate and vesting criteria and therefore not very straightforward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.

iv. Asset Liability mismatch: This will come into play unless the funds are invested in a term of the assets replicating the term of the liability.

J. Expected contributions to the plan:

Expected contributions to the plan for the next annual reporting period is Rs. 130.95 lakhs.

NOTE: Investments in subsidiaries are valued at cost and hence not considered for categorisation.

Fair value measurements are categorised into

Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 - inputs other than quoted prices included within level 1, that are observable for the assets and liabilities, either directly or indirectly;

Level 3 - unobservable inputs for the assets or liabilities.

• Fair value in respect of equity instruments is the quoted prices of those instruments in the stock exchanges at the measurement date.

• Fair value of Mutual funds is the NAV as on the measurement date.

• Fair value of unquoted equity instruments is at fair value measured as on measurement date. Fair value of such shares has been arrived based on methods which are combination of market, income and cost approaches.

• Carrying amounts of trade receivables and trade payables, cash and cash equivalents, other financial assets & other financial liabilities (current) are considered to be the same as their fair values due to their short-term nature and categorized as level 3 hierarchies.

9. Financial risk management:

The Company's activities expose it to credit risk, market risk and liquidity risk. In order to minimise any adverse effects on the financial performance of the Company, the company has risk management policies as described below

i. Credit risk:

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk from its operating activities (primarily Trade Receivables) and from its investing activities (primarily Deposits with Banks, Loans and advances to Corporates and Investments in Shares and Mutual Funds).

Credit risk from balances with banks, term deposits, loans, investments is managed by Company's finance department.

Trade Receivables are typically unsecured and are derived from revenue earned from customers. Customer credit risk is managed as per the Company's policy and procedures which involve credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored.

The Company's maximum exposure to credit risk for the components of the Balance Sheet as of 31st March, 2024 and 31st March, 2023 is the carrying amounts as disclosed in Note 9.

ii. Market risk:

Market risk is the risk that changes in market prices - such as commodity prices, interest rates and equity prices - will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Further, the company is not exposed to any foreign currency exchange rate risk which has an impact on the Income statement and Equity as it does not have transaction references with other currencies.

a. 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 interest rate risk can also impact the provision for retirement benefits.

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.

The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of changes in market interest rates.

b. Price Risk

Securities price risk is the risk that the fair value of a financial instruments will fluctuate due to changes in market traded prices. The Company invests its surplus funds in various debt instruments and equity

instruments. These investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio.

c. 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, and fluctuation of selling price of finished goods (tea) due to increase in supply/availability. The Company manages these price fluctuations by actively managing the sourcing of tea, and alternate blending strategies without impacting the quality of the blend.

iii. Liquidity risk:

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and maintains adequate sources of financing.

The tables below analyse the company's financial liabilities into relevant maturity groupings based on their contractual maturities. The company has only all non-derivative financial liabilities.

The amounts disclosed in the table are contracted undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. Balances due beyond 12 months are carried at amortised cost.

11. Capitalisation of Borrowing Costs:

The company has capitalized the following borrowing costs with eligible assets. Amount capitalised in Capital Work in progress was Sunil (Previous year Rs.Nil). No borrowing costs were capitalized to Property, plant and equipment (other than WIP) during the year ending 31.03.2024 and 31.03.2023.

12. Undisclosed Income:

There is no undisclosed income reported during the year.

13. Relationship with Struck of Companies:

During the year the Company has no transaction with the Struck of Companies

14. Disclosure under Section 186(4) of the Act:

The company has advanced loans to the following body corporates and the details of the loans are as under:

19. Previous year's figures have been regrouped / reclassified, to the extent necessary, to confirm to current year's classifications.