[2.22] Provisions, Contingent Liabilities and Contingent Assets
Provisions for legal claims, discounts, schemes and returns are recognized when the Company has a
present legal or constructive obligation as a result of past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized
for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognized even if the
likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management's best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risk specific to the liability. The increase in the provision due to the passage of time is recognized as interest
expense.
Contingent liabilities are possible obligations that arise from past events and whose existence will be
confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of
the Company, such obligation is disclosed as contingent liability.
Contingent Assets are possible assets that arise from past events and whose existence will be confirmed
only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company. Contingent assets are disclosed in financial statements when in flow of economic benefits is
probable on the basis of judgement of management.
[2.23] Employee Benefits
[2.23.1] Short Term Obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are recognized
in respect of employees' service upto the end of the reporting period and are measured at the amounts
expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit
obligations in the Balance Sheet.
[2.23.2] Other Long Term Employee Benefit Obligations
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. The liability or asset recognized in the balance
sheet in respect of defined benefits as leave encashment, pension and gratuity plans is the present value of
defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated by actuaries using the projected unit credit method. The present value of
defined benefit obligations is determined by discounting the same using the market yields at the end of the
reporting period on Government Bonds, that have terms approximating to the terms of the related obligation.
Net interest cost is calculated by applying the discount rate to the net balance of defined benefit obligation
and fair value of plan assets and the same is included in employee benefit expenses in the statement of profit
and loss.
Re-measurements as a result of experience adjustments and changes in actuarial assumptions are
recognized in the period in which they occur, in other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the balance sheet.
The obligations are presented as current liabilities in the Balance Sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.
Unavailed medical benefits are measured at actual cost during a block of 3 years.
[2.23.3] Post Employment Obligations
The Company operates the following post-employment schemes :
[a] Defined benefit plan which is Gratuity.
[b] Defined contribution plan which is Provident Fund only. The Organization pay provident fund to publicly
administered provident fund as per local regulations and apart from the contribution the Company has
no further payment obligation and the contribution are recognized as employee benefit expense when
they are due.
[c] One time medical benefits are measured at actual cost.
[2.24] Dividends
Dividends and interim dividends payable to the Company's shareholders are recognized as change in equity
in the period in which they are approved by the Company's shareholders and the Board of Directors respectively.
[2.25] Earnings per Share
[2.25.1] Basic Earnings per share
Basic earnings per share is calculated by dividing:
* The profit/loss attributable to owners of the Company.
* By the weighted average number of equity shares outstanding during the financial year.
[2.25.2] Diluted Earnings per Share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account :
* The after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and
* The weighted average number of additional equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.
[2.26] Financial Liabilities
Financial liabilities of the Company are contractual obligation to deliver cash or another financial asset to
another entity or to exchange financial assets or financial liabilities with another entity under conditions that
are potentially unfavorable to the Company.
The Company's financial liabilities include loans and borrowings, trade and other payables.
[a] Classification, initial recognition and measurement
Financial liabilities are recognized initially at fair value minus transactions costs and subsequently
measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the fair
value at initial recognition is recognized in the Statement of Profit and Loss or in the carrying amount of
an asset if another standard permits such inclusion, over the period of the borrowings using the
effective rate of interest.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period.
[b] Subsequent measurement
After initial recognition, financial liabilities are subsequently measured at amortized cost using the EIR
(Effective Interest Rate) method. Gains and losses are recognized in the Statement of Profit and Loss or
in the carrying amount of an asset if another standard permits such inclusion, when the liabilities are
derecognized as well through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR The EIR amortization is included as finance costs in the
Statement of Profit and Loss.
[c] Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expired. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.
[2.27] Fair Value Measurement
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. Normally at initial recognition, the
transaction price is the best evidence of fair value.
However, when the Company determines that transaction price does not represent the fair value, it uses inter-
alia valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable
inputs.
All financial assets and financial liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy. This categorization is based on the lowest level
input that is significant to the fair value measurement as a whole :
* Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
* Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement in directly or indirectly observable.
* Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement in unobservable.
For financial assets and financial liabilities that are recognized at fair value on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization
at the end of each reporting period.
[2.28] Financial Risk Management
The entity's activities expose it to market risk, liquidity risk and credit risk. In order to minimize effects of the
above, various arrangements are entered into by the entity. The following table explains the sources of risk
and how the entity manages the risk in its financial statements.
[A] Credit Risk
Credit risk arises from cash and cash equivalents, investment carried at amortized cost, deposit with banks
and financing institutions as well as credit exposure to customer and other parties.
For banks and financial institutions, only high rated banks/institutions are accepted. For other financial
assets, the entity assesses and manages credit risk based on internal credit evaluation. It monitors party-
wise exposure and based on evaluation credit rating is allotted for each party. Thereafter a credit limit is
assigned to each party depending on the solvency of the said party.
The entity considers the probability of default on ongoing basis and at each reporting period.
Micro-economic information is incorporated as part of internal rating model.
In general, it is presumed that credit risk has significantly increased since initial recognition if the payments
are more than 60 days past due.
Reconciliation of provisions for doubtful assets has been provided as under :
[B] Liquidity Risk
Prudent risk liquidity management implies maintaining sufficient cash and cash equivalents and the availability
of committed credit facilities to meet obligations when due.
Management monitors rolling forecasts of the group's liquidity position on the basis of expected cash flow.
The entity has accessed the following drawn borrowing facilities at the end of the reporting period :
[39.1]
[a] Leave Obligation:-The Company provides for encashment of leave or leave with pay subject to certain
rules. The employees are entitled to accumulate leaves subject to certain limits for future encashment.
The liability is provided on the basis of number of days of accumulated leave at each Balance sheet date
on actuarial valuation. The scheme is unfunded. The amount of provision for leave encashment as on
31st March, 2026 is Rs.858.69Lakhs (Rs.1054.97 Lakhs) is presented as current and non-current as per
actuarial valuation basis.
[b] Medical Benefits:The Medical benefits for the employees for domiciliary treatment is for a block of
three years and shall lapse yearly thereafter if the concerned employee does not avail it. The liability
towards such unveiled quantum of Medical benefits has been determined on actual basis instead of
actuarial valuation method since the eligible amount will remain fixed during the next block. The total
amount of liability as on 31st March, 2026 is Rs.162.22 Lakhs (Rs.165.63 Lakhs) has been taken into
accounts.
[39.2] Post employment obligation- Defined benefits plans:
[a] Gratuity:- The Company has an obligation towards Gratuity payable to eligible employees as per the
Payment of Gratuity Act,1972. The plan is being managed by a separate trust created for the purpose
and obligation of the Company is to make contribution to the trust based on actuarial valuation. The
scheme is funded.
[b] Post retirement Medical Scheme:- Under the scheme employee gets one time benefits subject to
certain limit of amount. The liability for this is determined on actual cost. The scheme is unfunded.
[c] Pension fund:- The Company has a defined benefit pension fund for certain eligible employees. The
scheme is managed by a separate trust created for the purpose. However since as on 31.03.26 there
is no eligible members of this fund , the present value of obligation at the end of the year is Rs Nil.
The Company has incurred revenue expenditure ofRs 67.30 Lakhs (Previous year Rs138.48 Lakhs) on account of Research
& Development expense the break-up of which is as follows:
Note 45.1
Reconciliation of the tax expense and the accounting profit multiplied by India's domestic tax rate for 31 st March 2026 and 31
st March 2025
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and deferred tax liabilities related to income taxes levied by the same tax
authority.
Note 47.2
During the year ended 31st March 2026, there is no liability in respect of Assam and West Bengal Agricultural IncomeTaxas the
same has been waived by the respective State Governments
Pending transfer of Assets and Liabilities of Engineering and Electrical Division to two 100% subsidiaries incorporate in the
name of Yule Engineering Ltd and Yule Electrical Ltd as per Sanctioned Rehabilitation Scheme (SRS) all transactions for the year
ended 31st March 2026 related to aforesaid divisions entered into by the Company in the Name of Andrew Yule & Company Ltd.
(AYCL) have been accounted for in the Books of Accounts. There is a proposal for closure of Yule Engineering and Yule Electrical
Ltd.
Note 52
Other Receivables includes Rs 85.96 Lakhs paid as Electricity duty which is considered receivable vide Circular Number 233-IR/
O/IM-4/2003 dated 25th February, 2014 issued by Govt of West Bengal under “West Bengal Industrial Renewal Scheme, 2001”
stated that the amount paid as electricity duty under the Provisions of Bengal Electricity Rules, 1935 shall be waived for period of
five years with effect from 31st March, 2006. However as a matter of abundance caution the same has been provided in the
Accounts.
Note 53
The moratorium period in respect Zero rated unsecured Redeemable Bond of Rs 295.00 Lakhs ( PY Rs 295.00 Lakhs) (Original
Value RS 305 Lakhs and 6 % cumulative Redeemable Preference Shares of Rs Nil (PY Rs 153.30 Lakhs) (original Value Rs
204.40 lakhs), of M/s Webfil Ltd has expired on 21/12/2022 and 01/04/2022 respectively. Dividend on Cumulative Preference
Shares of Rs 161.68 Lakhs has been accounted for as and when they had been realized. However M/s Webfil ltd has submitted
a repayment schedule , which was duly approved by the competent authority of Andrew Yule & Co. Ltd , as under.
The Assets and liabilities of M/s Hooghly Printing Co. Ltd, a 100% subsidiary, has been merged with Andrew Yule & Co Ltd
subsequent to an order of National Company Law Tribunal w.e.f 04/06/2022.
Expenditures in the nature Rent, Electricity, Security Services required for maintenance of the assets of erstwhile Hooghly
Printing Co are booked under corporate division w.e.f 04/06/2022.
Note 55
The Company follows the practice of inspection of individual current or non-current asset by a scrap committee before declaring
the same as scrap and ultimately putting the same for sale.
Note 56
The liability for payment of Gratuity as per the Provisions of the Act is considered for the Company as a wholeand not Unit/Division
wise.
Note 57
The company accounts for investment loss & overall loss if any in respect of Provident fund contribution to Exempted Trust Fund
on actual receipt of claim from the trustees of the said fund
Note 58
Capital WIP includes nurturing & related expenses of young tea plants amounting to Rs 4439.75 Lakhs (Rs 5932.97 Lakhs in
2024-25) in compliance with IND-AS.
Note 59
For renewal of land lease of three tea gardens in Dooars, Govt. of W.B. have asked for salami of Rs 177.66 Lakhs, which has
been taken up by AYCL for waiver with local State Govt. authorities as well as with higher Govt. Authorities at Kolkata. AYCL is
hopeful for settlement of the issue in favour of the Company which is also indicative from renewal of lease for another Garden of
AYCL without payment of salami.
As the matter is related to Govt. & Quasi Govt-Authorities/ Autonomous body (as applicable) and though the applications of the
Company for waiver of the demands have been turned down, AYCL has again represented the matter before the GOWB which is
pending. However as a matter of Abundant precaution the same has been provided for in the Accounts
Note 60
The Company has system of seeking year ending balance confirmation certificates from Debtors and Creditors. However, the
company has maintained the figures available in accounts for cases wherein, no response from Debtors /creditors is received.
“Balance With statutory Authorities” under “Note Other Current assets” (Note 15) includes a sum of Rs 42.97 Lakhs towards
refund receivable from Provident Fund Authorities in pursuant with an order issued by erstwhile Board of Industrial & Financial
Reconstruction ( BIFR) in F.Yr 2015-16. A claim in this regards has already been lodged with Central provident Fund (PF)
authorities who in turn have taken up the same with concerned regional Provident Fund Authorities. This being a due from
Government Department ,However, as a matter of abundant precaution the aforesaid amount has been provided in Accounts.
Note 62
As approved by the Board of Directors in their meetings date 12/11/2022& 05/01/2023 , the Land , Building , Plant & machinery
including Electrical Installations of the Three Units of Electrical Kolkata Operations were decided to be disposed off . Accordingly
during the finalization of the Annual Accounts for the Financial Year 2024-25, in respect of land & building, the company is yet to
receive approval from GOI and also is contemplating for alternate use and hence the said asset has been classified under
Property , Plant & equipment . In respect of Plant & Machinery since the company is in the process of conducting auction for
disposal therefore following the principles laid down in INDAS 105 , the said assets were treated as “ Assets held for Sale” .
Since the realizable value of the said assets which are yet to be disposed offare not readily available the carrying amount was
charged off as gains and losses arising from continuing operation in the financial year ended 31 st March, 2025
Note No 63
An amount of Rs 133.00 Lakhs has been received from Govt. of Assam as an interest free loan and shown under Current
Borrowings Note No 23
Note 64
The Company has adopted INDAS-116 effective 01/04/2019 In the following manners:
(a) The standards have been applied to only such cases wherever executed lease agreements and/or Notifications issued by
the concerned lessor Government re in hands of the Company and for the balance period of such lease as on 01/04/2019,
except for cases mentioned in (b) below.
(b) In case of lease of lands from the Government of Assam for the Tea gardens in Assam, the Company, in conjunction with
Indian Tea Association, has noted that, section 9 of the Assam Land and Revenue Regulation 1886 provides and lessee,
right of use, occupancy and other relevant rights subject to payment of revenues, taxes, cesses and rates from time to time
as may due in respect of said land and thus, there is no fixed or defined period of lease. As such, INDAS 116 should not
accordingly be applicable in case of Assam.
Note 65
Other Income includes Rs 5842.05 Lakhs being Gain on Sale of Investment in one associate company ( Note No 29). Long Term
Capital Gains of Rs 167.65 Lakhs on the above has been considered as Current Tax Tax Expenses
Note 66
AYCL, being a Central Public Sector Enterprise (CPSE), any Director to its Board viz. Functional Directors, Govt. Nominee
Directors and Independent Directors including Woman Directors, are appointed only by the Government of India (GOI). Therefore,
the Company on its own could not comply with the provisions of Regulation 17(1) of SEBI (LODR) Regulations, 2015 pertaining
to composition of the Board of Directors.
Due to the above noncompliance, a fine/ penalty imposed amounting to Rs 60.73 lakh by BSE Ltd for non-compliance with the
provisions of regulations 17(1) of SEBI (LODR) Regulations, 2015 during the period Upto December -2025 pertaining to
composition of Board of Directors of the Company specifically for not having requisite no. of independent directors on the board
of the Company. The Company has requested BSE Ltd. for the waiver of such fine/ penalty for the above period,
In connection with the above it may be noted that BSE Ltd., in the past based on the Company's representation for waiver of fines
levied under Standard Operating Procedure (SOP)”, BSE, after considering the facts of the case and the Company's representation
decided to waive the fines levied for non-compliance under SEBI (LODR) Regulations, 2015 for the following Regulations and
the periods:
The company has not used Bank Borrowings for any other purpose other than those for which the said borrowings are sanctioned
and taken as at 31.03.2026
Note 68
The Company has not advanced/ loaned/ invested funds nor has received any fund from any person/entity (including foreign) for
directly or indirectly lending or investing in other person or entity on behalf of the ultimate company/funding company or has
provided any guarantee/security on behalf of the ultimate beneficiary.
Note 69
Statements of current assets submitted to bank are in agreement with books of Accounts. Except for Engineering Division of the
company since there is no lending bank , the question of such statement does not arise.
Note 70
Impact of Labour Codes On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions
Code, 2020, ('Labour Codes') which consolidate twenty-nine existing labour laws into a unified framework governing employee
benefits during employment and post-employment. The Labour Codes, amongst other things introduces changes, including a
uniform definition of wages and enhanced benefits relating to leave. The Company has assessed the financial implications of
these changes which has resulted in increase in gratuity liability arising out of past service cost by Rs 4.52 Lakhs , increase in
leave liability by Rs 9.35 Lakhs both based on actuarial valuation & other Liabilities by Rs 12.04 Lakhs and the same has been
charged to Profit & loss Account for the Period 31st March, 2026. The Company continues to monitor the developments pertaining
to Labour Codes and will evaluate impact if any on the measurement of the employee benefits liability
Note 71 Other Regulatory Information
(i) There is no Immovable Property which is not held in the name of the Company.
(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
(iii) The Company does not have any transactions with companies struck off.
(iv) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
(v) The Company does not have 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
(vi) The company has not traded or invested in Crypto Currency or virtual Currency during the Financial Year
(vii) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period
Note 72
The Company has not been declared a wilfull defaulter by any Financial Institution on the date of Balance sheet
[a] Figures in Bracket are of previous year.
[b] The fig in these accounts have been rounded off to nearest Lakhs of Rupees.
[c] Previous year figures are rearranged and realigned as required.
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