18.4 Terms/ Rights attached to Equity Shares :
The Company has only one class of Ordinary Equity Share having a face value of ' 10 per share and each holder of Ordinary Equity Share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors (except interim dividend) is subject to the approval of the shareholders in the Annual General Meeting. The claim of Ordinary Equity Shareholders on earnings and on assets in the event of liquidation, follows all others, in proportion to their shareholding.
18.8 No Ordinary Equity Shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.
18.9 No securities convertible into Equity/ Preference shares have been issued by the Company during the year.
18.10 No calls are unpaid by any Director or Officer of the Company during the year.
20.3 Details of Security Given for Loan
Term Loan from Punjab National Bank is secured by hypothecation of green tea leaves, before and after plucking, teas in process, finished tea in stock/transit or tea lying with brokers , book debts (present and future) and by way of equitable mortgage of immovable properties and machineries of Mackeypore & Lakmijan Tea Estate as collateral security and further guaranteed by two directors of the Company.
20.4 Refer note no. 38 for information on the carrying amounts of financial and non-financial assets pledged as security for the non-current borrowings.
20.5 The statements of current assets filed by the Company with the bank are in agreement with the books of accounts.
20.6 The Company has not been declared as a wilful defaulter by any bank or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
a Cash Credit from Punjab National Bank is secured by hypothecation of green tea leaves, before and after plucking, teas in process, finished tea in stock/transit, tea lying with brokers/agents awaiting sale, other tea stocks, book debts (present and future) arising out of sale of teas, first charge over all current assets (both present and future) pertaining to Mackeypore and Lakmijan Tea Estate and equitable mortgage of immovable properties and machineries of Mackeypore and Lakmijan Tea Estate as collateral security and further guaranteed by two directors of the Company.
b Interest on Cash Credit Loan @8% p.a. and the same is repayable on demand.
c The statements of current assets filed by the Company with the bank are in agreement with the books of ac
counts.
d The Company has not been declared as a wilful defaulter by any bank or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
36.2 The amounts shown in Note 36.1 represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The company engages reputed professional advisors to protect its interests and has been advised that it has strong legal position against such disputes.
36.3 In respect of the matters in note no. 36.1 (a to c), future cash outflows are determinable only on receipt of judge-ments/decisions pending at various forums/ authorities. Furthermore, there is no possibilities of any reimbursements to be made to the company from any third party.
39.2 Defined Benefit Plan:
The following are the types of defined benefit plans
39.2.1 Gratuity Plan
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 a gratuity fund trust. Such gratuity fund, whose invest-
ments are managed by LIC of India, 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. Vesting occurs upon completion of five years of continuous service. The amount of gratuity payable is the proportionate salary for 15 days multiplied for the number of years of service based on the 26 days average salary computed on the basis of last drawn basic salary per month.
39.2.2 Leave Encashment
Leave encashment is payable on death whilst in service, resignation froms ervice or retirement from service as per applicable rules.The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.
39.2.3 Risk Exposure
Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:
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ASSET VOLATILITY
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The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in LIC of India. These are subject to interest rate risk. the invetsment in plan assets with LIC of India is in lines with Income Tax Rules, 1962, which reduces the Asset Volatility Risk.
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CHANGES IN YIELD
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A decrease in yield will increase plan liabilities.
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SALARY
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The present value of the defined benefit plan liability is calculated by reference to the future salaries of memebrs. Any increase in the salary of members morethan the assumed level will increase the plan's liability.
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The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India . The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation.
39.2.9 Asset-Liability Matching Strategy
The company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within this framework, the company's ALM objective is to match assets to the obligations under Gratuity Scheme by investing the entire fund with LIC of India. The Company actively monitors how the return on funds invested with LIC of India are matching the expected cash outflows arising from the employee defined benefit obligation. The company has not changed the processes used to manage its risks from previous periods.
43.4 The fair value of the financial assets and financial liabilities is included at the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
43.5 The following methods and assumptions were used to estimate the fair values:
The fair values for loans, security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risks, which has been assessed to be insignificant.
44 Fair Value Hierarchy
The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized 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 three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement". An explanation of each level follows underneath the tables.
44.4 Explanation to the fair value hierarchy
The Company measures financial instruments, such as, quoted investments at fair value at each reporting date. Fair value is the price 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. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy as described in Note No. 2.7
45 Financial Risk Management
The Company measures financial instruments, such as, quoted investments at fair value at each reporting date. Fair value is the price 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. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.
45.1 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 & Cash equivalents, financial guarantees and derivative financial instruments. None of the financial instruments of the Company result in material concentration of credit risks.
Credit risk on receivables is minimum since sales through different mode (auction, private ) are made after judging credit worthiness of the customers or, advance payment. The history of defaults has been minimal and outstanding receivables are regularly monitored. For credit risk on the loans to parties, the Company is not expecting any material risk on account of non-performance by any of the parties.
For financial instruments, the Company manages its credit risks by dealing with reputable banks and financial institutions. Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimize the concetration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
The carrying value of the financial assets represent the maximum credit exposure. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
45.2 Liquidity Risk
Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company monitors rolling forecast of its liquidity position on the basis of expected cash flows. The Company's approach is to ensure that it has sufficient liquidity or borrowing headroom to meet its obligations at all point in time. The Company has sufficient short-term fund based lines, which provides healthy liquidity and these carry highest quality credit rating from reputed credit rating agency.
45.2.1 Fund Management
Management monitors rolling forecasts of the Company's liquidity position (including the undrawn credit facilities extended by banks and financial institutions) and Cash & 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.
45.3 Market Risk45.3.1 Foreign Exchange Risk
The Company operates in domestic market and it doesn't have any foreign associate, subsidiary etc. The Company is therefore not exposed to foreign exchange risk arising from foreign currency transactions.
a Exposure to Currency risk- Nil
b Sensitivity Analysis
Since, the Company doesn't have material foreign currency operations, the analysis is not reported.
45.3.2 Interest Rate Risk
The Company is exposed to risk due to interest rate fluctuation, on the following:
a Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rate of interest. However, Company does not have any interest bearing financial asset or liability at the end of the financial year ended 31 st March 2026.
b The interest rate risk can also impact the provision for retiral benefits. The Company generally utilizes variable rate borrowings and therefore subject to interest rate risk, as both the carrying amount and the future cash flows will fluctuate because of change in the market interest rates.
The Company is not exposed to significant interest rate risk as at the respective reporting dates.
During 31st March 2026 and 31st March 2025, all the Company's borrowings were at variable rate mainly denominated in INR.
b Sensitivity Analysis
The table below summarise the impact of increases/ decreases of the index on the group's equity investment and profit for the period. The analysis is based on the assumption that the equity index had increased by Nil or decreased by Nil with all other variables held constant, and that all the Company's equity instruments moved in line with the index.
(v) The change in ratio resulted from increase in gain on fair valuation of unquoted shares during the year under
review.
51 On the basis or notification dated 28th June, 2023 by Govt of Assam providing 3 year tax holiday on Agricultural Income Tax, no provision on agricultural income tax has been made for the year ended 31st March, 2026.
52 There are no transactions that have been surrendered or disclosed as income during the year In the tax assessments under the Income Tax Act,1961, which have not been recorded in the books of account.
53 The company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act,2013 or Section 560 of the Companies Act,1956.
54 The other prescribed clauses as prescribed under other regulatory information for the year ended 31st March, 2026 being not applicable have not been given.
55 Previous year figures have been re-classified/re-grouped to confirm the presentation requirements under IND AS and the requirements laid down in Division-II of the Schedule-III of the Companies Act, 2013.
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