(m) Provisions and Contingent Liabilities

i. General

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a
provision to be reimbursed, the expense relating to a provision is presented in the statement of profit and loss net of
any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

ii. Contingent Liabilities

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may
probably not require an outflow of resources. When there is a possible or a present obligation where the likelihood of
outflow of resources is remote, no provision or disclosure is made.

iii. Onerous Contracts

Provision for onerous contracts. i.e. contracts where the expected unavoidable cost of meeting the obligations under
the contract exceed the economic benefits expected to be received under it, are recognised when it is probable that an
outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an
obligating event based on a reliable estimate of such obligation.

(n) Employee Benefits

i. Short-Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the services are classified as short-term
employee benefits, which include benefits like salaries, wages, short-term compensated absences and performance
incentives and are recognised as expenses in the period in which the employee renders the related service.

ii. Post-Employment Benefits

Contributions to defined contribution schemes such as Provident Fund, Pension Fund, etc., are recognised as
expenses in the period in which the employee Contributions to defined contribution schemes such as Provident
Fund, Pension Fund, etc., are recognised as expenses in the period in which the employee renders the related
service. In respect of contributions made to government administered Provident Fund, the Company has no further
obligations beyond its monthly contributions. The Company also provides for post-employment defined benefit in the
form of gratuity and medical benefits. The cost of providing benefit is determined using the projected unit credit
method, with actuarial valuation being carried out at each balance sheet date. Remeasurement of the net benefit
liability, which comprise actuarial gains and losses, the return on plan assets (excluding interests) and the effect of
the assets ceiling (if any, excluding interest) are recognised in other comprehensive income. The effect of any plan
amendments are recognized in the statement of profit and loss.

iii. Other Long-Term Employee Benefits

All employee benefits (other than post-employment benefits and termination benefits) which do not fall due wholly
within twelve months after the end of the period in which the employees render the related services are determined
based on actuarial valuation or discounted present value method carried out at each balance sheet date.

(o) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
deposits held at call with the financial institutions, other short term, highly liquid investments with original maturities of
three months or less (except the instruments which are pledged) that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value and bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

(p) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker is responsible for allocating resources and assessing performance
of the operating segments and has been identified as the Managing Director of the Company. As per Ind AS 108 if a
financial report contains both the consolidated financial statements of a parent that is within the scope of this Indian
Accounting Standard as well as the parent's separate financial statements, segment information is required only in the
consolidated financial statements. Accordingly the company has presented segment only for consolidated financial
statements.

(q) Earnings Per Share

Basic Earnings Per Share ('EPS') is computed by dividing the net profit attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by
dividing the net profit 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. In computing diluted earnings per share, only potential equity shares that are dilutive and that
either reduces earnings per share or increases loss per share are included. The number of shares and potentially dilutive
equity shares are adjusted retrospectively for all periods presented for the share splits.

(r) Cash Flow Statement

Cash flows are reported using indirect method, whereby net profits before tax is adjusted for the effects of transactions of
a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and items of income or
expenses associated with investing or financing cash flows. The cash flows from regular revenue generating (operating
activities), investing and financing activities of the Company are segregated.

(d) Rights, Preferences and Restrictions Attached to Equity Shares:

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of
interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the
number of equity shares held by the shareholders.

(e) The Company has not allotted any fully paid up equity shares by of bonus shares during the period of five years immediately
preceding the balance sheet date nor has issued shares for consideration other than cash.

B. Nature and Purpose of Reserves

Securities Premium Reserve : Securities premium reserve is used to record the premium on issue of shares. The reserve
is utilised in accordance with the provisions of the Act.

General Reserve : The Company has transferred a portion of the net profit of the Company before declaring dividend to
general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not
required under the Companies Act, 2013.

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.

Items of other comprehensive income : Differences between the interest income on plan assets and the return actually
achieved, and any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments
within the plans, are recognised in 'Other comprehensive income' and subsequently not reclassified to the statement of
profit and loss.

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debt in respect to income tax, sales tax and other matters¬
- VAT and Sales Tax Demand on Assessment aggregating Rs. 98.65 Lakhs ( 31 March 2024 : 98.65 Lakhs) being

disputed.

- Income Tax Demands - Rs. 39.25 Lakhs (31st March 2024 : Rs. 42.90 Lakhs)

- Income Tax Demands relating to TDS compliance - Rs. 2.27 Lakhs (31st March 2024 : Rs. 2.26 Lakhs)

- Claims against the Company not acknowledged as Debts - Nil (31st March 2024 Rs. 36.57 Lakhs)

(b) Bank Guarantees Outstanding as at 31 March 2025 : 227.60 Lakhs (31 March 2024 : Rs.227.60 Lakhs)

Note: Contingent Liabilities disclosed above represent possible obligations where possibility of cash outflow to settle the obligations is remote.

NOTE 36 - FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (Contd.)

The fair value of cash and cash equivalents, trade receivables, loans, trade payables and other financial assets and liabilities
approximate their carrying amount largely due to the short-term nature of these instruments. The Company's loans have been
contracted at market rates of interest. Accordingly, the carrying value of such loans approximate fair value. Investments in equity
shares in associates is not appearing as financial asset in the table above being investment in associates accounted under
Ind AS 27, Seperate Financial Statements is scoped out under Ind AS 109, Financial Instruments.

Investments in liquid and short- term mutual funds which are classified as FVTPL are measured using net assets value at the
reporting date multiplied by the quantity held.

Investments in equity shares which are classified as FVTPL are measured using market price of share at the reporting date
multiplied by the quantity held.

Financial Risk Management

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's
management risk policy is set by the Board. The Company's activities expose it to a variety of financial risks: credit risk, liquidity
risk and market risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize
potential adverse effects on its financial performance. A summary of the risks have been given below.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers.

Financial Assets that are not Credit Impaired

The Company has financial assets which are in the nature of cash and cash equivalents, other bank balances, loans, security
deposits, interest accrued on fixed deposits and other receivables which are not credit impaired. These are contractually
agreed where the probability of default is negligible.

Financial Assets that are Credit Impaired
Trade Receivables

The Company's exposure to credit risk is influenced mainly by the type of each customer. In monitoring customer credit risk,
customers are grouped according to their credit characteristics, industry, trading history with the Company and existence of
previous financial difficulties.

The Company has calculated the impairment loss arising on account of past trends in the default rate for time bucket.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and
available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the
Company's historical experience and informed credit assessment and including forward looking information.

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value
of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the
cash flows that the Company expects to receive).

Market Risk

Market risk is the risk that changes in market prices - such as interest rates 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.

Interest Rate Risk

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 is carrying its borrowings primarily at variable rate. The Company expects
the variable rate to decline, accordingly the Company is currently carrying its loans at variable interest rates.

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 increase in supply/availability.

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

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

• Slightly higher 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 37 : The Company acquired by way of purchase Dharnipur Tea Estate as a “Going Concern” from its owner Sri Dhirendra
Nath Bhowmick (since deceased) and Dharnipur Tea Industries (P) Ltd. as confirming party and the Deed of conveyance was
duly executed and registered in the name of the Company. The said Deed of Conveyance was cancelled in view of certain
pending disputes between the seller and another party. However the agreement for purchase of the said Tea Estate subsists
and is subject matter of a specific performance suit pending before Hon'ble Calcutta High Court. The Company is not in
possession of the said Tea estate and has accordingly not accounted for the profit and loss on account of the operation or
ownership of the said Tea Estate. The value of Dharnipur Tea estate represents the costs paid at the time of purchase and the
legal expenses incurred thereafter on behalf of Bhowmicks and/or legal heirs for contesting their suit which was pending. All
advocate fees at High Court and at Supreme Court were paid by this Company and capitalized. On the basis of Hon'ble
Supreme Court order dated 01.10.91, if Bhowmick's title is confirmed in their pending suit then the rights of this company
remains intact. The title of Bhowmicks/legal heirs was confirmed by Hon'ble Calcutta High Court. A suit for declaration and title
in favour of the Company is pending.

NOTE 38

The Company acquired certain interest in a plot of land at Bangalore for which registration in the name of the Company has not
been done. All expenses of litigation in respect of the said land are considered as deemed cost of land and the same has been
accounted as advance given for land.

NOTE 39

In accordance with Ind AS 108, Operating segments, segment information has been provided in the consolidated financial
statements of the Company and no separate disclosure on segment information is given in these standalone financial
statements.

NOTE 41: OTHER STATUTORY INFORMATION :

i. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.

ii. The Company do not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or
Section 560 of Companies Act, 1956.

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

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

v The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries); or

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

vi. The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall :

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries); or

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

vii. The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961.

viii. The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under
the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the
Reserve Bank of India.

NOTE 42

The Company has availed of working capital limits from Central Bank of India, Union Bank of India and Bank of India against
security of current assets. There was no material discrepancy between the figures reported in quarterly statements and the
books of account except the value of standing crop which is not recorded in books.

NOTE 43

Raw Materials consumed represent only green tea leaves purchased from the green leaf suppliers.

NOTE 44

Previous year figures have been reclassified / regrouped / rearranged wherever necessary.

As per our Report of even date attached

For Saha & Majumder For and on behalf of the Board of Directors

Chartered Accountants Terai Tea Company Limited

FRN 303087E

Sd/- Sd/- Sd/- Sd/-

S.N. Bhattacharjee Ajit Kumar Agarwala Rajendra Kanodia Rajesh Singhania

Partner Managing Director Director & CFO Company Secretary

Membership No 010767 DIN : 00265775 DIN : 00175574 M. No. : F7746

ICAI UDIN : 25010767BMNZZQ5338

Place : Siliguri

Dated : 30th May, 2025