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Notes to Accounts of CCL Products India Ltd.
Mar 31, 2025
I) Provisions, contingent liabilities and contingent assets
Provisions
A provision is recognized if, as a result of a past event,
the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle
the obligation. If the effect of the time value of money
is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability. Where discounting is
used, the increase in the provision due to the passage of
time is recognized as a finance cost.
Contingent liabilities
A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. Where
there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is
remote, no provision or disclosure is made.
Contingent assets
Contingent assets are not recognized in the financial
statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of
economic benefits will arise, the asset and related income
are recognized in the period in which the change occurs.
J) Revenue Recognition
Revenue from contracts with customers
Revenue is recognized when the Company substantially
satisfied its performance obligation while transferring a
promised good or service to its customers. The Company
considers the terms of the contract and its customary
business practices to determine the transaction price.
Performance obligations are satisfied at the point of time
when the customer obtains controls of the asset.
Revenue is measured based on transaction price,
which is the fair value of the consideration received or
receivable, stated net of discounts, returns and value
added tax. Transaction price is recognised based on the
price specified in the contract, net of the estimated sales
incentives / discounts. Accumulated experience is used to
estimate and provide for the discounts/ right of return,
using the expected value method.
Other Income
Interest
Interest Income mainly comprises of dividend and interest
on Margin money deposit with banks relating to bank
guarantee. Interest income should be recorded using
the effective interest rate (EIR). However, the amount of
margin money deposits relating to bank guarantee are
purely current in nature, hence effective interest rate
has not been applied. Interest is recognized using the
time-proportion method, based on rates implicit in the
transactions.
Dividend
Dividend income is recognized when the Company''s right
to receive dividend is established.
K) Government Grants
Government grants are assistance by government in the
form of transfers of resources to an entity in return for
past or future compliance with certain conditions relating
to the operating activities of the entity. They exclude those
forms of government assistance which cannot reasonably
have a value placed upon them and transactions with
government which cannot be distinguished from the
normal trading transactions of the entity.
Grants related to assets are government grants whose
primary condition is that an entity qualifying for them
should purchase, construct or otherwise acquire long¬
term assets. Subsidiary conditions may also be attached
restricting the type or location of the assets or the periods
during which they are to be acquired or held.
Grants related to income are government grants other
than those related to assets.
A government grant that becomes receivable as
compensation for expenses or losses already incurred or for
the purpose of giving immediate financial support to the
entity with no future related costs shall be recognised in
profit or loss of the period in which it becomes receivable.
Export incentives in the form of RoDTEP scheme and
power subsidy receivable by the company do not fall
under the scope of Ind AS 115 and are accounted for in
accordance with the provisions of Ind AS 20 considering
such incentives as Government Assistance. Accordingly,
government grant relating to Income on account of power
subsidy is recognised on accrual basis in Profit and Loss
statement and export incentive in the form of RoDTEP
scheme will be accounted on cash basis in Profit and Loss
statement.
L) Borrowing Costs
Borrowing costs consist of interest, ancillary and other
costs that the Company incurs in connection with
the borrowing of funds and interest relating to other
financial liabilities. Borrowing cost also include Exchange
differences arising from foreign currency borrowings to
the extent that they are regarded as an adjustment to
interest costs. Borrowing costs directly attributable to the
acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready
for its intended use or sale are capitalized as part of the
cost of the asset. All other borrowing costs are expensed
in the period in which they occur.
M) Tax Expenses
Tax expense consists of current and deferred tax.
Current income tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted
or substantively enacted, at the reporting date. Current
income tax relating to items recognised outside the
statement of profit and loss (either in OCI or in equity in
correlation to the underlying transaction). Management
periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax
regulations are subject to interpretation and establishes
provisions, where appropriate.
Deferred tax
Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.
Deferred tax liabilities and assets are recognized for all
taxable temporary differences and deductible temporary
differences.
Deferred tax assets are recognised to the extent that it
is probable that taxable profit will be available against
which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can
be utilized.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to
be utilised.
Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the
deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the period when the
asset is realised or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively
enacted at the reporting date.
Deferred tax relating to items recognised outside the
statement of profit and loss is (either in OCI or in equity
in correlation to the underlying transaction).
Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation
authority.
Minimum alternate tax (MAT) paid in a year is charged
to the statement of profit and loss as current tax for the
year. The deferred tax asset is recognised for MAT credit
available only to the extent that it is probable that the
Company will pay normal income tax during the specified
year, i.e., the year for which MAT credit is allowed to
be carried forward. In the year in which the Company
recognizes MAT credit as an asset, it is created by way of
credit to the statement of profit and loss and shown as
part of deferred tax asset. The Company reviews the "MAT
credit entitlement" asset at each reporting date and writes
down the asset to the extent that it is no longer probable
that it will pay normal tax during the specified period.
Goods and Service Tax (GST) paid on acquisition of assets
or on incurring expenses
When the tax incurred on purchase of assets or services is
not recoverable from the taxation authority, the tax paid
is recognised as part of the cost of acquisition of the asset
or as part of the expense item, as applicable. Otherwise,
expenses and assets are recognized net of the amount of
taxes paid. The net amount of tax recoverable from, or
payable to, the taxation authority is included as part of
receivables or payables in the balance sheet.
N) Leases
The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.
The Company as a lessee
The Company applies a single recognition and measurement
approach for all leases, except for short-term leases and
leases of low-value assets. The Company recognises lease
liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
Right-of-use assets
The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are
measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of
lease liabilities.
The cost of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement
date less any lease incentives received.
Right-of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated
useful lives of the assets. If ownership of the leased asset
transfers to the Company at the end of the lease term
or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life
of the asset.
The right-of-use assets are also subject to impairment.
Refer to the accounting policies in section of Impairment
of non-financial assets.
Lease liabilities
At the commencement date of the lease, the Company
recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The
lease payments include fixed payments (including in¬
substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under
residual value guarantees. The lease payments also include
the exercise price of a purchase option reasonably certain
to be exercised by the Company and payments of penalties
for terminating the lease, if the lease term reflects the
Variable lease payments that do not depend on an index or
a rate are recognised as expenses (unless they are incurred
to produce inventories) in the period in which the event or
condition that triggers the payment occurs.
In calculating the present value of lease payments, the
Company uses its incremental borrowing rate at the
lease commencement date because the interest rate
implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the
lease payments (e.g., changes to future payments resulting
from a change in an index or rate used to determine such
lease payments) or a change in the assessment of an
option to purchase the underlying asset. The Company''s
lease liabilities are included in Borrowings.
Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition
exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the
commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases that are considered to be
of low value. Lease payments on short-term leases and
leases of low-value assets are recognised as expense on a
straight-line basis over the lease term.
O) Earnings Per Share
Basic earnings per share
Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders (after deducting preference dividends and
attributable taxes) by the weighted average number of
equity shares outstanding during the year.
The weighted average number of equity shares outstanding
during the year is adjusted for events such as bonus issue,
bonus element in a rights issue, share split, and reverse
share split (consolidation of shares) that have changed
the number of equity shares outstanding, without a
corresponding change in resources.
Diluted earnings per share
Diluted earnings per share is computed by dividing the
profit (considered in determination of basic earnings per
share) after considering the effect of interest and other
financing costs or income (net of attributable taxes)
associated with dilutive potential equity shares by the
weighted average number of equity shares considered
for deriving basic earnings per share adjusted for the
weighted average number of equity shares that would
have been issued upon conversion of all dilutive potential
equity shares.
P) Trade receivables
Trade receivables are initially recognized at fair value and
subsequently measured at amortised cost using effective
interest method, less provision for impairment, if any.
Q) Trade and other payables
These amounts represent liabilities for goods and services
provided to the Company prior to the end of the financial
year which are unpaid. The amounts are unsecured and
are presented as current liabilities unless payment is not
due within twelve months after the reporting period. They
are recognized initially at fair value and subsequently
measured at amortized cost using the effective interest
method.
R) Segment Reporting
The operations of the Company primarily relate to a single
business segment - Coffee and Coffee-related products.
The Company also has an FMCG Products Division,
which encompasses packaged food and beverage items.
However, in accordance with the requirements of Indian
Accounting Standard (Ind AS) 108 - Operating Segments,
the FMCG Products Division does not meet the prescribed
quantitative thresholds for separate reporting as a
distinct segment. As a result, the segmental reporting is
not applicable to the Company and hence the segment-
wise financial information has not been presented in the
financial statements.
S) Determination of fair values
The Company''s accounting policies and disclosures require
the determination of fair value, for certain financial and
non-financial assets and liabilities. Fair values have been
determined for measurement and/or disclosure purposes
based on the following methods. When applicable, further
information about the assumptions made in determining
fair values is disclosed in the notes specific to that asset or
liability. A fair value measurement of a non-financial asset
takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant that
would use the asset in its highest and best use.
i. Property, plant and equipment
Property, plant and equipment, if acquired in a business
combination or through an exchange of non-monetary
assets, is measured at fair value on the acquisition
date. For this purpose, fair value is based on appraised
market values and replacement cost.
ii. Intangible assets
The fair value of brands, technology related intangibles,
and patents and trademarks acquired in a business
combination is based on the discounted estimated
royalty payments that have been avoided as a result of
these brands, technology related intangibles, patents
or trademarks being owned (the "relief of royalty
method"). The fair value of customer related, product
related and other intangibles acquired in a business
combination has been determined using the multi¬
period excess earnings method after deduction of a
fair return on other assets that are part of creating the
related cash flows.
iii. Inventories
The fair value of inventories acquired in a business
combination is determined based on its estimated
selling price in the ordinary course of business less
the estimated costs of completion and sale, and a
reasonable profit margin based on the effort required
to complete and sell the inventories.
iv. Investments in equity and debt securities and units of
mutual funds
The fair value of marketable equity and debt securities
is determined by reference to their quoted market price
at the reporting date. For debt securities where quoted
market prices are not available, fair value is determined
using pricing techniques such as discounted cash flow
analysis.
In respect of investments in mutual funds, the fair
values represent net asset value as stated by the
issuers of these mutual fund units in the published
statements. Net asset values represent the price at
which the issuer will issue further units in the mutual
fund and the price at which issuers will redeem such
units from the investors.
Accordingly, such net asset values are analogous to
fair market value with respect to these investments, as
transactions of these mutual funds are carried out at
such prices between investors and the issuers of these
units of mutual funds.
v. Derivatives
The fair value of foreign exchange forward contracts is
estimated by discounting the difference between the
contractual forward price and the current forward price
for the residual maturity of the contract using a risk¬
free interest rate (based on government bonds). The
fair value of foreign currency option and swap contracts
and interest rate swap contracts is determined based
on the appropriate valuation techniques, considering
the terms of the contract.
vi. Non-derivative financial liabilities
Fair value, which is determined for disclosure
purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at
the market rate of interest at the reporting date. For
finance leases the market rate of interest is determined
by reference to similar lease agreements. In respect of
the Company''s borrowings that have floating rates of
interest, their fair value approximates carrying value.
T) New standards adopted by the Company
Ind AS 1 - Presentation of Restated financial information
The amendments require companies to disclose their
material accounting policies rather than their significant
accounting policies. Accounting policy information,
together with other information, is material when it can
reasonably be expected to influence decisions of primary
users of general purpose financial statements. The
Company does not expect this amendment to have any
significant impact in its standalone financial statement.
Ind AS 12 - Income Taxes
The amendments clarify how companies account
for deferred tax on transactions such as leases and
decommissioning obligations. The amendments narrowed
the scope of the recognition exemption in paragraphs 15
and 24 of Ind AS 12 (recognition exemption) so that it no
longer applies to transactions that, on initial recognition,
give rise to equal taxable and deductible temporary
differences. The Company does not expect this amendment
to have any significant impact in its standalone financial
statements.
Ind AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors
The amendments will help entities to distinguish between
accounting policies and accounting estimates. The
definition of a change in accounting estimates has been
replaced with a definition of accounting estimates. Under
the new definition, accounting estimates are "monetary
amounts in financial statements that are subject to
measurement uncertainty". Entities develop accounting
estimates if accounting policies require items in Restated
financial information to be measured in a way that involves
measurement uncertainty. The Company does not expect
this amendment to have any significant impact in its
standalone financial statements.
U) New Accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended March 31, 2025,
MCA has not notified any new standards or amendments
to the existing standards applicable to the Company.
Note:
1. The Company has created the mortgage over its land in favour of the bank towards the Funding availed by subsidiary company
which aggregate to '' 32,000.00 lakhs (March 31, 2024 is '' 32,000.00 lakhs).
2. The Company has given the undertaking to ensure that the subsidiary company meets its Outstanding Debt Obligations to
the Bank as stipulated in the Financing documents to the extent of '' 32,000.00 lakhs.
3. The same are subject to uncertain future events not wholly within the control of the Company. The Management does not
expect the same to have materially adverse effect on its financial position, as it believes the likely hood of any loss is not
probable.
2.28 Leases
Leases as lessee
The Company has lease arrangements for its office premises located at various locations with-in India. These leases have original
terms for a period between 2-10 periods with renewal option at the discretion of lessee. There are no residual value guarantees
provided to the third parties.
2.31 Segment information
The operations of the Company primarily relate to a single business segment - Coffee and Coffee-related products. The Company
also has an FMCG Products Division, which encompasses packaged food and beverage items. However, in accordance with
the requirements of Indian Accounting Standard (Ind AS) 108 - Operating Segments, the FMCG Products Division does not
meet the prescribed quantitative thresholds for separate reporting as a distinct segment. As a result, the segmental reporting
is not applicable to the Company and hence the segment-wise financial information has not been presented in the financial
statements.
2.32 Categories of Financial instruments and their fair values
The carrying amount of all financial assets and financial liabilities appearing in the financial statements are reasonable
approximation of their fair values.
The fair value of the financial assets and financial liabilities are included at an amount at which the instruments could be
exchanged in a current transaction between the willing parties, other than in a forced or liquidation sale.
2.33 Financial risk management objectives and policies
Financial Risk Management Framework
The Company is exposed to financial risks arising from its operations and the use of financial instruments. The key financial
risks include credit risk, market risk and liquidity risk. The Company''s risk management policies are established to identify and
analyse the risks faced by the Company and seek to, where appropriate, minimize potential impact of the risk and to control
and monitor such risks. There has been no change to the Company''s exposure to these financial risks or the manner in which
it manages and measures the risks.
The following sections provide details regarding the Company''s exposure to the financial risks associated with financial
instruments held in the ordinary course of business and the objectives, policies and processes for management of these risks.
(i) Credit risk
Financial assets that are neither past due nor impaired
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness
as well as concentration of risks. Credit risk arises primarily from financial assets such as trade receivables, balances with
banks and loan and other receivables.
Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit
has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of
credit risk principally consist of trade receivables, cash and bank balances and loans. None of the financial instruments of
the Company result in material concentration of credit risk.
Exposure to credit risk
At the end of the reporting period, the Company''s maximum exposure to credit risk is represented by the carrying amount
of each class of financial assets recognised in the statement of financial position. No other financial assets carry a significant
exposure to credit risk.
None of the Company''s cash equivalents, loans and other financial assets were either past due or impaired as at the
respective reporting period. The Company has diversified its portfolio of investment in cash and cash equivalents and term
deposits with various banks which have secure credit ratings, hence the risk is reduced. Loans given to related parties and
others are tested for impairment where there is an indicator and the assessed credit risk associated with such loans is
relatively low. Other financial assets represent security deposits given to lessors and other assets. Credit risk associated with
such deposits and other assets is relatively low.
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company
manages liquidity risk by maintaining cash and cash equivalents and the cash flows generated from operations.
The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted
payments:
Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each balance
sheet date whether a financial asset or a group of financial assets are impaired. Expected credit losses are measured at
an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if
the credit risk on the financial asset has increased significantly since initial recognition. The Company has used a practical
expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix if they past
due. The provision matrix takes into account historical credit loss experience and is adjusted for forward-looking information.
(iii) Market risk:
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the
Company''s income. Market risk is attributable to all market risk sensitive financial instruments including foreign currency
receivables and payables. The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
(a) Foreign currency risk:
Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange
rates. The majority of Company''s revenue is generated in foreign currencies (primarily in United States Dollars), while a
significant portion of its costs are in Indian rupees. As a result, as the rupee appreciates or depreciates against foreign
currencies, the results of the entity''s operations are impacted. The Company does not use financial derivatives such as
foreign currency forward contracts.
Significant unhedged foreign currency risk exposure relating to financial assets and financial liabilities expressed in '' terms
are as follows:
(b) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Company and the Company''s financial instruments
will fluctuate because of changes in market interest rates. The Company''s exposure to interest rate risk relates primarily to
the floating interest rate borrowings. The Company''s investment in deposits with banks and loans are fixed interest rates
and therefore do not expose the Company to significant interest rate risk.
The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating rate borrowings.
The exposure of the Company to variable rate borrowings at the end of the reporting period are as follows:
Interest rate sensitivity
The Company noted that any reasonably possible change in interest rates on the variable rate instruments will not have any
material impact on the Company''s profit after tax and its equity.
(c) Price risk
The fair value of some of the Company''s investments measured at fair value through other comprehensive income exposes
the Company to equity price risks. These investments are subject to changes in the market price of securities. The Company
periodically monitors the sectors it has invested in, performance of the investee companies, measures mark- to- market
gains/losses and reviews the same to manage the price risk.
Capital includes equity capital and all reserves attributable to the equity holders of the Company. The primary objective of the
capital management is to ensure that it maintain an efficient capital structure and healthy capital ratios in order to support its
business and maximise shareholder''s value. The Company manages its capital structure and make adjustments to it, in light of
changes in economic conditions or its business requirements. 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 debt to capital employed ratio which is debt divided by total capital plus debt. The
Company''s policy is to keep this ratio at an optimal level.
2.36 Additional disclosures
(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) The Company have not been declared wilful defaulter by any bank or financial institution or government or any government
authority.
(iii) No transactions are carried out with companies struck off under Section 248 of the Act or Section 560 of Companies Act,
1956.
(iv) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(v) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the
Income Tax Act, 1961, that has not been recorded in the books of account.
(vi) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(vii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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.
(viii) The Company has not received any fund from any person(s) or entity(ies), 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.
(ix) There are no charges or satisfaction which are yet to be registered with the registrar of companies beyond the statutory
period.
(x) Previous period''s figures have been regrouped / rearranged, to the extent necessary, to conform to current period''s
classifications. All the numbers have been rounded of to nearest lakhs.
2.37 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring
companies, which uses accounting software for maintaining its books of account, shall use only such accounting software
which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the
books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company, in respect of financial year commencing on 1 April 2023 has used an accounting software for maintaining
its books of account which has a feature of recording audit trail (edit log). Audit trail (edit log) is enabled at the application
level, and the Company''s users have access to perform transactions only from the application level.
CCL Employee Stock Option Scheme, 2022 (CCL ESOP 2022 Plan):
The Company instituted the CCL ESOP 2022 Plan for eligible employees pursuant to the special resolution approved by the
shareholders in the Annual General Meeting held on August 30, 2022. The CCL ESOP 2022 Plan covers eligible employees
(excluding promoter directors) of the parent company and its subsidiaries (collectively, "eligible employees").
The Compensation Committee of the Board (the "Committee") administers the CCL ESOP 2022 Plan and grants stock options
to eligible employees. The Committee determines which eligible employees will receive options, the number of options to be
granted, the exercise price, the vesting period and the exercise period. The vesting period is determined for all options issued
on the date of grant. The options issued under the CCL ESOP 2022 Plan vest in periods ranging between one and four years
subject to a maximum period of five years from the date of grant of such options.
The Company has established CCL Employee Stock Option Scheme, 2022 (CCL ESOP 2022 Plan) with 5,00,000 equity shares.
The exercise price of the options is '' 2 per share. The fair value of the share options is estimated at the grant date using
Black-Scholes Method, taking into account the terms and conditions upon which the share options were granted. However, the
above performance condition is only considered in determining the number of instruments that will ultimately vest.
The carrying amount of the liability at 31 March 2025 was '' 2,273.19 lakhs (31 March 2024: '' 1,685.47 lakhs).
During the year a reserve was made towards outstanding of ESOPs and Share based payment expenses for the year ended 31
March 2025 of '' 2,273.19 lakhs (31 March 2024 - '' 1,685.47 lakhs).
The Weighted average grant date fair value of the options granted during the years ended 31 March 2025 was '' 616.03 per
option, 31 March 2024 was '' 548.06 per option.
The following tables list the inputs to the models used for the three plans for the years ended 31 March 2025 and
31 March 2024, respectively:
This is the notes to standalone financial statements referred to in our report of even date.
For and on behalf of the Board of Directors of
For Ramanatham & Rao CCL Products (India) Limited
Chartered Accountants CIN No :L15110AP1961PLC000874
Firm Registration No.002934S
Sd/- Sd/- Sd/-
V V Lakshmi Prasanna A Challa Srishant Challa Rajendra Prasad
Partner Managing Director Executive Chairman
M.No.243569 DIN : 00016035 DIN : 00702292
Sd/- Sd/- Sd/-
Chaitanya Agasthyaraju Praveen Jaipuriar Sridevi Dasari
Place : Hyderabad Chief Financial Officer Chief Executive Officer Compnay Secretary
Date : May 5, 2025 M.No.217695 M.No.A29897
Mar 31, 2024
(iv) Rights attached to equity shares
The Company has only one class of equity shares having a face value of '' 2 each. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, all preferential amounts, if any, shall be discharged by the Company. The remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date.
The Company has elected the option provided under Section 115BAA of the Income-tax Act, 1961 for measurement of its income tax expense for the period ended 31 March 2024 and 31 March 2023 and has accordingly recognised the income tax expense at the prescribed domestic effective tax rate of 25.17% (31 December 2022: 25.17%). The major components of income tax expense and the reconciliation between expected tax expense based on the domestic effective tax rate and the reported tax expense in the statement of profit and loss is as follows:
Note:
1. The Company has created the mortgage over its land in favour of the bank towards the Funding availed by subsidiary company which aggregate to 32000.00 Lakhs (March 31,2023 is NIL).
2. The Company has given the undertaking to ensure that the subsidiary company meets its Outstanding Debt Obligations to the Bank as stipulated in the Financing documents to the extent of Rs. 32000.00 lakhs.
3. The same are subject to uncertain future events not wholly within the control of the Company. The Management does not expect the same to have materially adverse effect on its financial position, as it believes the likely hood of any loss is not probable.
2.28 Leases Leases as lessee
The Company has lease arrangements for its office premises located at various locations with-in India. These leases have original terms for a period between 2-10 periods with renewal option at the discretion of lessee. There are no residual value guarantees provided to the third parties.
The Company has a defined benefit gratuity plan, according to which every employee who has completed five periods or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed period of service (service of six months and above is rounded off as one period) after deduction of necessary taxes at the time of retirement / exit, restricted to a sum of ?2 million in accordance with Payment of Gratuity Act, 1972. The following tables summarize the reconciliation of opening and closing balances of the present value and defined benefit obligation:
2.31 Segment information
The company is engaged in production, trading and distribution of Coffee and related products. Hence, the same becomes the reportable segment for the Company. Accordingly, disclosure of segment information as prescribed in the Indian accounting standard 108 âOperating segmentsâ is not applicable
2.32 Categories of Financial instruments and their fair values
The carrying amount of all financial assets and financial liabilities appearing in the financial statements are reasonable approximation of their fair values.
The fair value of the financial assets and financial liabilities are included at an amount at which the instruments could be exchanged in a current transaction between the willing parties, other than in a forced or liquidation sale.
2.33 Financial risk management objectives and policies Financial Risk Management Framework
The Company is exposed to financial risks arising from its operations and the use of financial instruments. The key financial risks include credit risk, market risk and liquidity risk. The Companyâs risk management policies are established to identify and analyse the risks faced by the Company and seek to, where appropriate, minimize potential impact of the risk and to control and monitor such risks. There has been no change to the Companyâs exposure to these financial risks or the manner in which it manages and measures the risks.
The following sections provide details regarding the Companyâs exposure to the financial risks associated with financial instruments held in the ordinary course of business and the objectives, policies and processes for management of these risks.
Financial assets that are neither past due nor impaired
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk arises primarily from financial assets such as trade receivables, balances with banks and loan and other receivables.
Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, cash and bank balances and loans. None of the financial instruments of the Company result in material concentration of credit risk.
Exposure to credit risk
At the end of the reporting period, the Companyâs maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position. No other financial assets carry a significant exposure to credit risk.
None of the Companyâs cash equivalents, loans and other financial assets were either past due or impaired as at the respective reporting period. The Company has diversified its portfolio of investment in cash and cash equivalents and term deposits with various banks which have secure credit ratings, hence the risk is reduced. Loans given to related parties and others are tested for impairment where there is an indicator and the assessed credit risk associated with such loans is relatively low. Other financial assets represent security deposits given to lessors and other assets. Credit risk associated with such deposits and other assets is relatively low.
Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each balance sheet date whether a financial asset or a group of financial assets are impaired. Expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix if they past due. The provision matrix takes into account historical credit loss experience and is adjusted for forward-looking information.
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining cash and cash equivalents and the cash flows generated from operations.
(iii) Market risk:
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Companyâs income. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
(a) Foreign currency risk:
Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The majority of Companyâs revenue is generated in foreign currencies (primarily in United States Dollars), while a significant portion of its costs are in Indian rupees. As a result, as the rupee appreciates or depreciates against foreign currencies, the results of the entityâs operations are impacted. The Company does not use financial derivatives such as foreign currency forward contracts.
Significant unhedged foreign currency risk exposure relating to financial assets and financial liabilities expressed in ? terms are as follows:
(b) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Company and the Companyâs financial instruments will fluctuate because of changes in market interest rates. The Companyâs exposure to interest rate risk relates primarily to the floating interest rate borrowings. The Companyâs investment in deposits with banks and loans are fixed interest rates and therefore do not expose the Company to significant interest rate risk.
Interest rate sensitivity
The Company noted that any reasonably possible change in interest rates on the variable rate instruments will not have any material impact on the Companyâs profit after tax and its equity.
(c) Price risk
The fair value of some of the Companyâs investments measured at fair value through other comprehensive income exposes the Company to equity price risks. These investments are subject to changes in the market price of securities. The Company periodically monitors the sectors it has invested in, performance of the investee companies, measures mark- to- market gains/losses and reviews the same to manage the price risk.
2.34 Capital risk management
Capital includes equity capital and all reserves attributable to the equity holders of the Company. The primary objective of the capital management is to ensure that it maintain an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholderâs value. The Company manages its capital structure and make adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders return capital to shareholders or issue new shares.
Reason for change more than 25%: Not applicable
2.36 Additional disclosures
(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) The Company have not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(iii) No transactions are carried out with companies struck off under Section 248 of the Act or Section 560 of Companies Act, 1956.
(iv) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(v) The Company has entered into a scheme of arrangement which has an accounting impact on current and/or previous financial year. Please refer note number 2.39 for details.
(vi) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
(vii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(viii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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.â
(ix) The Company has not received any fund from any person(s) or entity(ies), 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.â
(x) There are no charges or satisfaction which are yet to be registered with the registrar of companies beyond the statutory period.
2.37 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company, in respect of financial year commencing on 1 April 2023 has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log). Audit trail (edit log) is enabled at the application level, and the Companyâs users have access to perform transactions only from the application level.
2.38 Business Combination
Demerger of Marketing and Distribution of Coffee and FMCG Products Division of Continental Coffee Products Private Limited into CCL Products (India) Limited
On October 18, 2023, The Honâble National Company Law Tribunal (NCL T) approved the Scheme of Demerger of Marketing and Distribution of Coffee and FMCG Products Division of Continental Coffee Products Private Limited into CCL Products (India) Limited with an appointed date as October 1,2022. Following the guidance available under Appendix C of Ind AS 103, the financial information in the financial statements in respect of prior periods has been restated from that date. Consequently, the financial information for the year ended March 31, 2023, quarter ended June 30, 2023 and September 30, 2023 were restated to give effect to this demerger.
The business combination referred to above, being a âcommon controlâ transaction, has been accounted as per âPooling of Interestâ method as prescribed under Appendix C of Ind AS 103 -âBusiness Combinationâ. In accordance with the requirements of para 9 (iii) of Appendix C to Ind AS 103, the Standalone financial statements of the Company in respect of the prior period have been restated with an appointed date as October 1,2022, the impact of which is detailed below:
2.39 Employee stock incentive plans
CCL Employee Stock Option Scheme, 2022 (CCL ESOP 2022 Plan):
The Company instituted the CCL ESOP 2022 Plan for eligible employees pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on August 30, 2022. The CCL ESOP 2022 Plan covers eligible employees (excluding promoter directors) of the parent company and its subsidiaries (collectively, âeligible employeesâ).
The Nomination, Governance and Compensation Committee of the Board of the parent company (the âCommitteeâ) administers the CCL ESOP 2022 Plan and grants stock options to eligible employees. The Committee determines which eligible employees will receive options, the number of options to be granted, the exercise price, the vesting period and the exercise period. The vesting period is determined for all options issued on the date of grant. The options issued under the CCL ESOP 2022 Plan vest in periods ranging between one and four years subject to a maximum period of five years from the date of grant of such options.
The company has established CCL Employee Stock Option Scheme, 2022 (CCL ESOP 2022 Plan with 5,00,000 equity shares.
The exercise price of the options is INR 2 per share. The fair value of the share options is estimated at the grant date using a Black-Scholes Method, taking into account the terms and conditions upon which the share options were granted. However, the above performance condition is only considered in determining the number of instruments that will ultimately vest.
*The difference of 1,00,000 options between the number of options exercisable at the end of FY 2022-23 and outstanding at the beginning of FY 2023-24 is due to the grant of 1,00,000 options to Mr. Praveen Jaipuriar, CEO pursuant to the resolution passed by the Compensation Committee whereby the options granted under Continental Coffee Private Limited Employee Stock Option Plan, 2021 (CCPL ESOP Plan) were converted into 1,00,000 options under CCL Employee Stock Option Scheme - 2022 ( CCL ESOP Scheme) as contemplated in the Scheme of Arrangement between Continental Coffee Private Limited, Demerged Company and CCL Products (India) Limited, Resulting Company.
During the year a reserve was made towards outstanding of ESOPs and Share based payment expenses for the year ended 31 March 2024 of ? 1,685.47 lacs (31 March 2023 - ? 1,073.46 lacs).
The Weighted average grant date fair value of the options granted during the year ended 31 March 2024 was ? 548.06 per option.
This is the notes to standalone financial statements referred to in our report of even date.
Mar 31, 2023
Rights attached to equity shares
The Company has only one class of equity shares having a face value of '' 2 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in indian rupees. Payment of dividend is also made in foreign currency to shareholders outside india. The final dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting.
In the event of liquidation of the company, all preferential amounts, if any, shall be discharged by the company. The remaining assets of the company shall be distributed to the holders of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date.
Final dividends on equity shares are recorded as a liability on the date of their approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the companyâs board of directors. The details of dividends paid by the company are as follows:
Total term loan of Rs.90.00 Crs from HDFC Bank carrying floating interest rate of Monthly MCLR 5 bps repayable in sixteen quarterly installments at the end of each quarter commencing from June 29, 2020.
Term loans from HDFC Bank is secured by first pari passu charge on movable assets of the company and second pari passu charge on current assets of the Company.
External commercial borrowings from Citi bank is secured by first ranking exclusive charge over all the fixed assets EOU located at Duggirala, Guntur district and SEZ Unit located at kuvvakoli village, Chittoor district of Andhra Pradesh.The coupon for External Commercial Borrowings is linked to LIBOR plus applicable spread.
Working Capital Facilities (Packing credit) from State Bank of India, Citi Bank and ICICI Bank Limited under consortium are secured by way of first pari-passu charge on current assets and second pari-passu charge on fixed assets of the company . The Working Capital is repayable on demand.
(i) The Code on Social Security, 2020 (âCode'') relating to employee benefits received Presidential assent in September 2020. However, effective date and the final rules/interpretation have not yet been notified/issued. The Company is in the process of assessing the impact of the Code and will recognize the impact, if any, based on its effective date.
(ii) The Company operates defined benefit plan i.e., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees who is responsible for the administration of the plan assets and for the definition of the investment strategy.
In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity payments (the âGratuity Planâ) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation, based upon which the Company makes contributions to the Life Insurance Corporation of India (LIC).
Contribution to Superannuation schemes
Certain categories of employees of the Company participate in superannuation, a defined contribution plan administered by the Life Insurance Corporation of India. The Company makes annual contributions based on a specified percentage of each covered employee''s salary. The Company has no further obligations under the plan beyond its annual contributions. The Company contributed '' 225.35 Lakhs and '' 244.48 Lakhs to the superannuation Schemes during the years ended March 31,2023 and 2022, respectively.
The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry forward a portion of the unutilised compensated absences and utilise them in future periods or receive cash in lieu thereof as per the Company''s policy. The Company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement. The total liability recorded by the Company towards this obligation was '' 178.84 Lakhs and '' 200.44 Lakhs as at March 31,2023 and March 31,2022, respectively
2.33 Financial Risk Management:
The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, trade and other receivables, cash and cash equivalents, bank balances, security deposits and derivatives that are out of regular business operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s risk management is carried out by a treasury department under policies approved by the Board of Directors. The Board of Directors provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
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 i.e. interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include borrowings, derivatives financial instruments and trade payables.
Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rate relates primarily to the Company''s borrowings with floating interest rates.
If interest rate had been 50 basis points higher/ lower in case of rupee borrowings and all other variables were held constant, the Company''s profit for the year ended March 31,2023 would decrease/increase by '' 10.55 lakhs (March 31,2022: '' 3.29 lakhs)
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s foreign currency borrowings, trade payables and trade receivables
The functional currency of the Company is Indian Rupee. The Company uses forward exchange contracts to hedge its currency risk, mostly with a maturity of less than one year from the reporting date. The Company does not use derivative financial instruments for trading or speculative purposes. Following are the derivative financial instruments (forward contracts) to hedge the foreign exchange rate risk as of March 31,2023.
b. Credit Risk:
Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. The Company''s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security deposits and bank deposits are mostly with government authorities and scheduled banks and hence, the Company does not expect any credit risk with respect to these financial assets.
Trade and other receivables - The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
Financial assets that are neither past due nor impaired ('' in Lakhs)
None of the Company''s cash equivalents, including deposits with banks, were past due or impaired as at March 31,2023. Of the total trade and other receivables, impairment loss is provided for '' 38.65 Lakhs as at March 31,2023 and '' 36.65 Lakhs at March 31,2022.
The Company''s credit period for customers generally ranges from 60-90 days. The ageing of Trade
Other than trade receivables, the Company has no significant class of financial assets that are past due or impaired as at March 31,2023.
On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate.
The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of
2.34 Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:
2.35 Capital Management ('' in Lakhs)
For the purpose of the Company''s capital management, capital includes issued equity capital, convertible preference shares, securities premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise 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 total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations
2.38 Other statutory information:
a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
b. The Company does not have any transactions with struck off companies.
c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
d. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
e. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
⢠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
⢠provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
⢠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
⢠provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
g. The Company has not entered into any 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).
h. The Company has not been declared as willful defaulter by any bank or financial institution or other lender.
i. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
j. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year.
k. The Company has borrowings from banks against security of its current assets. The reports or statements of Current assets filed by the company with banks are in agreement with the books of accounts.
l. The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.
2.39 CCL Employee Stock Option Scheme, 2022 (CCL ESOP 2022 Plan):
The Company instituted the CCL ESOP 2022 Plan for eligible employees pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on August 30, 2022. The CCL ESOP 2022 Plan covers eligible employees (excluding promoter directors) of the parent company and its subsidiaries (collectively, âeligible employeesâ).
The Nomination, Governance and Compensation Committee of the Board of the parent company (the âCommitteeâ) administers the CCL ESOP 2022 Plan and grants stock options to eligible employees. The Committee determines which eligible employees will receive options, the number of options to be granted, the exercise price, the vesting period and the exercise period. The vesting period is determined for all options issued on the date of grant. The options issued under the CCL ESOP 2022 Plan vest in periods ranging between one and four years subject to a maximum period of five years from the date of grant of such options.
Mar 31, 2022
2.28 Segment Reporting:
The Company concluded that there is only one operating segment i.e, Coffee products. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable. Accordingly, the Company shall present entity-wide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108.
2.29 Employee benefits:Gratuity benefits
In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity payments (the âGratuity Planâ) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation, based upon which the Company makes contributions to the Life Insurance Corporation of India (LIC).
The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry forward a portion of the unutilised compensated absences and utilise them in future periods or receive cash in lieu thereof as per the Company''s policy. The Company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement. The total liability recorded by the Company towards this obligation was '' 200.44 Lakhs and '' 154.84 Lakhs as at 31st March 2022 and 31st March 2021, respectively
Contribution to Provident Fund
The employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and employer each make monthly contributions to a government administered fund equal to 12% of the covered employee''s qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed '' 223.45 Lakhs and '' 195.63 Lakhs to the provident fund plan during the years ended 31st March 2022 and 31st March 2021, respectively.
Contribution to Superannuation schemes
Certain categories of employees of the Company participate in superannuation, a defined contribution plan administered by the Life Insurance Corporation of India. The Company makes annual contributions based on a specified percentage of each covered employee''s salary. The Company has no further obligations under the plan beyond its annual contributions. The Company contributed '' 244.48 Lakhs and '' 273.65 Lakhs to the superannuation Schemes during the years ended 31st March 2022 and 31st March 2021, respectively.
The Company''s activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market risk. The Company''s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors, risk management committee and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.
a. Credit Risk:
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has the following categories of financial assets that are subject to credit risk evaluation:
Trade Receivables- The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
Financial assets that are neither past due nor impaired - None of the Company''s cash equivalents, including deposits with banks, were past due or impaired as at 31st March 2022. Of the total trade and other receivables, impairment loss is provided for '' 36.65 Lakhs as at 31st March 2022 and '' 94.88 Lakhs at 31st March 2021.
Other than trade receivables, the Company has no significant class of financial assets that are past due or impaired as at 31st March, 2022.
On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate.
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.
As of 31st March 2022 and 2021, the Company has utilized working capital credit limits from banks for '' 27982.81 Lakhs and '' 19150.47 Lakhs respectively.
As of 31st March 2022, the Company had working capital (current assets less current liabilities) of '' 18371.64 Lakhs including cash and cash equivalents of '' 1949.93 Lakhs. As of 31st March 2021, the Company had working capital (current assets less current liabilities) of '' 17041.46 Lakhs including cash and cash equivalents of '' 6879.55 Lakhs.
Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company''s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Coffee Industry is dependent on nature, making it susceptible to climate vagaries. The major weather factors that influence coffee yield are rainfall, temperature, light intensity and relative humidity.
The Company exposure to Market risk for commodity prices can result in changes to realisation for its Cost of Production for its products. The company mitigates risk by entering into Coffee Future Contracts and with the natural hedge arising on export of Products vis a vis import of Coffee Beans.
The Company uses Coffee future contract to reduce its price risk associated with forecasted purchases of Coffee beans. Throughout the year, the company enters into coffee futures based on market price and anticipated production requirements.
The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The company mitigates the currency risk with natural hedge arising on export of Products vis a vis import of Coffee Beans.
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:
The Company''s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity, borrowings and operating cash flows required.
2.35 Contingent Liabilities and Commitments:
|
The following are the details of contingent liabilities and commitments: |
('' in Lakhs) |
|
|
Particulars |
As of 31st March 2022 |
As of 31st March 2021 |
|
Contingent Liabilities |
||
|
a) Claims against the company/disputed liabilities |
||
|
Income Tax* |
4057.38 |
4057.38 |
|
Service Tax |
995.92 |
995.92 |
|
Sales Tax |
151.94 |
151.94 |
|
b) Guarantees |
||
|
Bank Guarantee |
1735.63 |
1516.12 |
|
6940.87 |
6721.36 |
|
|
Commitments |
||
|
Estimated amount of contracts remaining to be executed on capital account and not provided for |
453.40 |
343.46 |
|
453.40 |
343.46 |
|
|
*Tax deposited under protest '' 2883.28 Lakhs . |
||
2.37 Other statutory information:
a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
b. The Company does not have any transactions with struck off companies.
c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
d. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
e. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
i. 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
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
g. The Company has not entered into any 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).
h. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
i. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
j. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year.
k. The Company has borrowings from banks against security of its current assets. The reports or statements of Current assets filed by the company with banks are in agreement with the books of accounts.
l. The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.
Mar 31, 2018
2.28 Related Parties List of Subsidiaries:
Subsidiaries including step down M/s. Jayanti Pte Ltd., Singapore M/s. Continental Coffee Pvt Ltd., India
M/s. Grandsaugreen SA, Switzerland (Subsidiary of Jayanti Pte. Ltd., Singapore),
M/s. Ngon Coffee Company Ltd., Vietnam (Subsidiary of Jayanti Pte. Ltd., Singapore)
In accordance with the provisions of Ind AS 24 âRelated Party Disclosuresâ and the Companies Act, 2013, Company''s Directors, members of the Company''s Management Council and Company Secretary are considered as Key Management Personnel. List of Key Management Personnel of the Company is as below:
Mr. Challa Rajendra Prasad, Whole time Director Mr. Challa Srishant, Managing Director Mr. B.Mohan Krishna, Director Operations Mr. K.V.L.N.Sarma, Chief Financial Officer Mrs. Sridevi Dasari, Company Secretary
2.30 Segment Reporting:
The Company concluded that there is only one operating segment i.e, Coffee products. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable. Accordingly, the Company shall present entity-wide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108.
2.31 Employee benefits:
Gratuity benefits
In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity payments (the âGratuity Planâ) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation, based upon which the Company makes contributions to the Life Insurance Corporation of India (LIC).
Leave Encashment
The Company accumulates of compensated absences by certain categories of its employees for one year. These employees receive cash in lieu thereof as per the Company''s policy. The Company records expenditure on payment basis.
Contribution to Provident Fund
The employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and employer each make monthly contributions to a government administered fund equal to 12% of the covered employee''s qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed Rs, 124.85 Lakhs and Rs, 104.40 Lakhs to the provident fund plan during the years ended 31st March 2018 and 2017, respectively._
Contribution to Superannuation schemes
Certain categories of employees of the Company participate in superannuation, a defined contribution plan administered by the Life Insurance Corporation of India. The Company makes annual contributions based on a specified percentage of each covered employee''s salary. The Company has no further obligations under the plan beyond its annual contributions. The Company contributed Rs, 222.12 Lakhs and Rs, 157.17 Lakhs to the superannuation Schemes during the years ended 31st March 2018 and 2017, respectively.
The Company''s average effective tax rate for the years ended 31st March, 2018 and 2017 were 34.50% and 33.96%, respectively.
2.35 Financial Risk Management:
The Company''s activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market risk. The Company''s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors, risk management committee and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.
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 and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments.
Trade Receivables-The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The total trade and other receivables impairment loss is provided Rs, 21.95 lakhs as at 31st March, 2018 and Rs, 39.29 lakhs at 31st March, 2017.
On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate.
Financial assets that are neither past due nor impaired - None of the Company''s cash equivalents, including deposits with banks, were past due or impaired as at 31st March, 2018
Liquidity Risks:
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.
As of 31st March, 2018 and 2017, the Company had not utilized any credit limits from banks.
As of 31st March, 2018, the Company had working capital (current assets less current liabilities) of Rs, 19367.59 Lakhs including cash and cash equivalents of Rs, 802.97 Lakhs. As of 31st March, 2017, the Company had working capital of Rs, 16479.75 Lakhs, including cash and cash equivalents of Rs, 556.13 Lakhs and investments in FVTPL financial assets of Rs, 3.05 Lakhs *Note: The Bank Overdraft and other liabilities are payable on demand.
Market Risks
Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company''s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Coffee Industry is dependent on nature, making it susceptible to climate vagaries. The major weather factors that influence coffee yield are rainfall, temperature, light intensity and relative humidity.
Commodity Price Risk
Generally The Company exposure to Market risk for commodity prices can result in changes in its Cost of Production. The company mitigates this risk by entering into fixed price contracts for purchase of it''s raw materials on back to back basis for each of it''s sale contract of its finished products.
Currency Risk
The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The company mitigates the currency risk with natural hedge arising on export of Products vis a vis import of Coffee Beans both of which are in same currency viz USD.
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.
2.36 CAPITAL MANAGEMENT
The Company''s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity, borrowings and operating cash flows required.
Mar 31, 2017
1 Rights attached to equity shares
The Company has only one class of equity shares having a face value of '' 2 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees.
In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
2 In the period of five years immediately preceding March 31,2017:
The company has alloted 6,65,13,960 fully paid up equity shares of face value Rs.2/- each on 21st August, 2013, pursuant to bonus issue approved by the shareholders.
3 Dividend
The Board of Directors, in its meeting on May 22nd, 2017 have proposed a final dividend of '' 2.50/-per equity share for the financial year ended March 31st, 2017. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on July 11th, 2017 and if approved would result in a cash outflow of Rs.4002.75 Lakhs including corporate dividend tax.
4 Details of security:
Working Capital Facilities from State Bank of India, State Bank of Hyderabad and ICICI Bank Limited under consortium are secured by way of first pari-passu charge on current assets and second pari-passu charge on fixed assets of the company. Security creation in favour of Citibank N.A.is pending.
5 During the year the company has transferred unclaimed dividend of Rs.1.39 Lakhs (Previous Year Rs.2.37 Lakhs ) to Investor Education and Protection Fund
* Tax deposited under protest Rs.2883.28 Lakhs (Previous year Rs.2827.57)
** Corporate Guarantees of Rs. Nil (Previous Year Rs.9750.94 lakhs) given to subsidiary - Ngon Coffee Company, Vietnam
6 Corporate Social Responsibility (CSR) Expenditure
a) Gross amount required to be spent by the company during the year Rs.232.47 Lakhs (Previous year Rs.202.31 Lakhs)
7 Remittance in foreign currency on account of Dividend
The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. The exact amount of dividend remitted in Foreign Currency cannot be ascertained. The total amount remittable in this respect is given herein below :
8 Segment Reporting
The entire operations of the company relate to only one segment viz., Coffee and Coffee related products. Hence, segmental reporting as per AS-17 is not made.
9 Related Party disclosures as per AS-18 read with the Companies Act, 2013
The disclosures of transactions with the related parties are given below:
10 Previous Yearâs figures are regrouped/rearranged wherever considered necessary to conform to the current year figures.
Mar 31, 2015
1 Rights attached to equity shares
The Company has only one class of equity shares having a face value of
Rs. 2 /- each (Previous Year Rs. 2 /-). Each holder of equity share is
entitled to one vote per share. The Company declares and pays dividends
in Indian Rupees. The dividend of Rs. 1.50/- per share (Previous Year
Rs.1.20/- per share) proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting.
2 On account of depreciation adjustment in compliance with Schedule
II of the Companies Act, 2013
Details of security:
Working Capital Facilities by State Bank of India, State Bank of
Hyderabad, ICICI Bank Limited and Kotak Mahindra Bank Ltd under
consortium are secured by way of first pari-passu charge on current
assets and second pari-passu charge on fixed assets of the Company.
3 There are no transactions with Micro and Small enterprises, hence
disclosures are not given as required under MSMED Act, 2006.
4 During the year the Company has transferred unclaimed dividend
of Rs.2.14 Lakhs pertaining to Financial Year 2006-07 to Investor
Education and Protection Fund on expiry of 7 Years.
5 Deposits with Statutory Authorities of Rs.2729.35 Lakhs
represents amount paid to Income Tax Authorities under protest.
2015 2014
(I) Contingent Liabilities
(A) Claims against the Company/
disputed liabilities not acknowledged
as debts :
* Excise & Customs 31.76 31.76
* Service Tax 550.66 550.66
* Income Tax - -
(B) Guarantees
- Bank Guarantees
(includes Corporate Guarantees)* 14,992.55 18,874.84
(II) Commitments
Estimated amount of contracts
remaining to be executed on
capital account and not provided for 344.70 23.54
* Corporate Guarantees of Rs.13832.57 lakhs (Previous Year Rs.17729.44
lakhs) given to subsidiary - Ngon Coffee Company, Vietnam
6 Segment Reporting
Based on the guiding principles given in Accounting Standard on
''Segment Reporting (AS-17) issued by the Institute of Chartered
Accountants of India the Company''s primary business segment is Instant
Coffee.
Segment accounting policies
In addition to the significant accounting policies applicable to the
business segment as set out in Note 1 to the Financial Statements the
accounting policies in relation to segment accounting are as under:
a) Segment assets and liabilities
All segment assets and liabilities are directly attributable to the
segment.
Segment assets include all operating assets used by the segment and
consist principally of fixed assets, inventories, sundry debtors, loans
and advances and operating cash and bank balances. Segment assets and
liabilities do not include investments, inter corporate deposits,
reserves and surplus, borrowings, provision for contingencies and
income tax (both current and deferred).
b) Segment revenue and expenses:
Segment revenue and expenses are directly attributable to the segment.
Segment revenue and expenses do not include interest income on
inter-corporate deposits, profit on sale of investments, interest
expense, provision for contingencies and income tax.
7 Related Party disclosures as per (AS-18) read with Companies Act,
2013
The disclosures of transactions with the related parties are given
below:
(i) Names of related parties and description of their relationship:
1. Key Managerial Personnel Mr. Challa Rajendra Prasad,
Whole time Director
Mr. Challa Srishant,
Managing Director
Mr. K.V.L.N. Sarma,
Chief Financial Officer
Ms. Sridevi Dasari,
Company Secretary
2. Non-whole time Directors Mr. I.J. Rao,
Non-Executive Director
Mr. Zafar Saifullah,
(upto 25.07.2014)
Non-Executive Director
Mr. Vipin K.Singal,
Non-Executive Director
Mr. K. Chandrahas,
Non-Executive Director
Mr. J. Rambabu,
Non-Executive Director
Mr. B. Mohan Krishna,
Non-Executive Director
Mr. K.K. Sarma,
Non-Executive Director
Mr. G.V. Krishna Rau,
Non-Executive Director
Ms. Kulsoom Noor Saifullah,
Non-ExecutiveDirector
Mr. Jonathan T. Feuer,
(upto 16.03.2015)
Non-Executive Director
3. Relatives of Key
Managerial Personnel Ms. Challa Shantha Prasad
(Spouse of Mr. Challa Rajendra
Prasad, Executive Chairman)
Ms. Challa Soumya
(Daughter of Mr. Challa Rajendra
Prasad, Executive Chairman)
4. Subsidiary Companies M/s. Jayanti Pte Ltd., Singapore
M/s. Continental Coffee Pvt.Ltd.,
India
M/s. Grandsaugreen SA,
Switzerland (Subsidiary of
Jayanti Pte. Ltd., Singapore)
M/s. Ngon Coffee Company Ltd.,
Vietnam (Subsidiary of Jayanti
Pte. Ltd., Singapore)
8 Previous Year''s figures are regrouped/rearranged wherever considered
necessary to conform the current year figures .
Mar 31, 2014
1.1 Segment Reporting
Based on the guiding principles given in Accounting Standard on
`Segment Reporting (AS-17) issued by the Institute of Chartered
Accountants of India the Company''s primary business segment is Instant
Coffee.
Segment accounting policies
In addition to the significant accounting policies applicable to the
business segment as set out in Note 1 of the notes to the Financial
Statements the accounting policies in relation to segment accounting
are as under:
a) Segment assets and liabilities
All segment assets and liabilities are directly attributable to the
segment.
Segment assets include all operating assets used by the segment and
consist principally of fixed assets, inventories, sundry debtors, loans
and advances and operating cash and bank balances. Segment assets and
liabilities do not include investments, inter corporate deposits,
reserves and surplus, borrowings, provision for contingencies and
income tax (both current and deferred).
b) Segment revenue and expenses:
Segment revenue and expenses are directly attributable to the segment.
Segment revenue and expenses do not include interest income on
inter-corporate deposits, profit on sale of investments, interest
expense, provision for contingencies and income tax.
(ii) Names of related parties and description of their relationship:
1. Key Management Personnel Mr.Challa Rajendra Prasad, Executive
Chairman
Mr.Challa Srishant, Managing Director
2. Relatives of Key Management Personnel Mrs.Challa Shantha Prasad
(Spouse of Mr.Challa Rajendra Prasad, Executive Chairman)
Ms.Challa Soumya
(Daughter of Mr.Challa Rajendra Prasad, Executive Chairman)
3. Subsidiary Companies M/s. Jayanti Pte Ltd., Singapore
M/s. Continental Coffee Pvt Ltd., India M/s. Grandsaugreen SA,
Switzerland (Subsidiary of Jayanti Pte. Ltd., Singapore) M/s. Ngon
Coffee Company Ltd., Vietnam (Subsidiary of Jayanti Pte. Ltd.,
Singapore)
1.2 Previous Year''s figures are regrouped/rearranged/recasted wherever
considered necessary to conform the current year figures.
Mar 31, 2013
1.1 Segment Reporting
Based on the guiding principles given in Accounting Standard on
''Segment Reporting (AS-17) issued by the Institute of Chartered
Accountants of India the Company''s primary business segment is Instant
Coffee.
Segment accounting policies
In addition to the significant accounting policies applicable to the
business segment as set out in Note 1 of the notes to the Financial
Statements the accounting policies in relation to segment accounting
are as under:
a) Segment assets and liabilities
All segment assets and liabilities are directly attributable to the
segment.
Segment assets include all operating assets used by the segment and
consist principally of fixed assets, inventories, sundry debtors, loans
and advances and operating cash and bank balances. Segment assets and
liabilities do not include investments, inter corporate deposits,
reserves and surplus, borrowings provision for contingencies and income
tax (both current and deferred).
b) Segment revenue and expenses:
Segment revenue and expenses are directly attributable to the segment.
Segment revenue and expenses do not include interest income on
inter-corporate deposits, profit on sale of investments, interest
expense, provision for contingencies and income tax.
1.2 Related Party disclosures
As per AS-18, the disclosures of transactions with the related parties
are given below: (i) Details of the related party transactions
(ii) Names of related parties and description of their relationship:
1. Key Management Personnel Mr.Challa Rajendra Prasad, Chairman &
Managing Director
Mr.Challa Srishant, Executive Director
2. Relatives of Key Management Personnel Mrs.Challa Shantha Prasad
(Spouse of Mr.Challa Rajendra Prasad, C.M.D.)
Ms.Challa Soumya
(Daughter of Mr.Challa Rajendra Prasad, C.M.D.)
3. Subsidiary Companies M/s. Jayanti Pte Ltd., Singapore
(Subsidiary of CCL Products (India) Limited - India) M/s. Grandsaugreen
SA, Switzerland (Subsidiary of Jayanti Pte. Ltd., Singapore) M/s. Ngon
Coffee Company Ltd., Vietnam (Subsidiary of Jayanti Pte. Ltd.,
Singapore)
1.3 Previous Year''s figures are regrouped/rearranged/recasted wherever
considered necessary to conform the current year figures
Mar 31, 2012
A) Details of security:
The Term Loans are secured by Paripassu Charge on all the Fixed Assets
of the Company by way of deposit of title deeds in respect of Factory
and Land admeasuring Acr.19.3475 Cents situated at Duggirala Mandal,
Guntur District. The said facility is further secured by way of second
charge on the current assets of the company both present and future.
The Term Loans availed by the company are also secured by the personal
guarantee of the Chairman & Managing Director.
b) Deferred payment liabilities represent sales tax deferment. This
loan is interest free and repayable as Rs. 11.71 lakh in the year
2012-13, Rs. 8.48 lakh in the year 2013-14 and Rs.13.40 lakh in the year
2014-15 respectively.
Details of security:
Working Capital Facilities by State Bank of India, State Bank of
Hyderabad, ICICI Bank Limited and Kotak Mahindra Bank Ltd under
consortium are secured by way of first paripassu charge on
Hypothecation of stocks of raw materials, semi finished, finished goods
consumables, stores, book debts and such movable assets present and
future and second charge on all fixed assets of the Company.
# Withholding and other taxes payable include Sales Tax deferment
amounting to Rs. 11.71 Lakh (Previous Year Rs. 15.99 lakh) {refer note 2.3
( c ) }
## These Figures do not include any amounts, due and outstanding, to be
credited to Investor Education and Protection Fund
1.1 Contingent Liabilities and Commitments
2011-12 2010-11
(I) Contingent Liabilities
(A) Claims against the company/
disputed liabilities
not acknowledged as debts :
- Income Tax 2,942.11 2,942.11
- Excise & Customs 31.76 31.76
- Service Tax 550.66 -
(B) Guarantees
- Bank Guarantees (includes
Corporate Guarantees) 15,144.78 10,818.80
(II) Commitments
Estimated amount of contracts
remaining to be executed on capital
account and not provided for 404.91 -
(*) No provision was made in the books as the fair value of plan assets
are more than the present value of obligations.
1.2 Remittance in foreign currency on account of Dividend
The Company has paid dividend in respect of shares held by
Non-Residents on repatriation basis. The exact amount of dividend
remitted in Foreign Currency cannot be ascertained. The total amount
remittable in this respect is given herein below :
1.3 Segment Reporting
Based on the guiding principles given in Accounting Standard on
'Segment Reporting (AS-17) issued by the Institute of Chartered
Accountants of India, the Company's primary business segment is Instant
Coffee.
Segment accounting policies
In addition to the significant accounting policies applicable to the
business segment as set out in Note 1 of the notes to the Financial
Statements, the accounting policies in relation to segment accounting
are as under:
a) Segment assets and liabilities
All segment assets and liabilities are directly attributable to the
segment.
Segment assets include all operating assets used by the segment and
consist principally of fixed assets, inventories, sundry debtors, loans
and advances and operating cash and bank balances. Segment assets and
liabilities do not include investments, inter corporate deposits,
reserves and surplus, borrowings provision for contingencies and income
tax (both current and deferred).
b) Segment revenue and expenses:
Segment revenue and expenses are directly attributable to the segment.
Segment revenue and expenses do not include interest income on
inter-corporate deposits, profit on sale of investments, interest
expense, provision for contingencies and income tax.
1.4 Related Party disclosures
As per AS-18, the disclosures of transactions with the related parties
are given below:
(i) Details of the related party transactions
(ii) Names of related parties and description of their relationship:
1. Key Management Personnel Mr.Challa Rajendra Prasad, Chairman &
Managing Director
Mr.Challa Srishant, Executive Director
2. Relatives of Key Management Personnel Mrs.Challa Shantha Prasad
(Spouse of Mr.Challa Rajendra Prasad, C.M.D.)
Ms.Challa Soumya
(Daughter of Mr.Challa Rajendra Prasad, C.M.D.)
3. Subsidiary Companies M/s. Jayanti Pte Ltd., Singapore
(Subsidiary of CCL Products (India) Limited - India)
M/s. Grandsaugreen SA, Switzerland (Subsidiary of Jayanti Pte. Ltd.,
Singapore)
M/s. Ngon Coffee Company Ltd., Vietnam (Subsidiary of Jayanti Pte.
Ltd., Singapore)
1.5 Previous Year's figures are regrouped/rearranged/recasted wherever
considered necessary to conform the current year figures
Mar 31, 2011
1 Contingent Liabilities:
As on Balance sheet date existing contingent liablities are Bank
Guarantees including Corporate Guarantees Rs. 10,818.80 lakhs (Previous
Year: Rs. 4,112.53 lakhs); disputed taxes/ duties Rs. 2,973.87 lakhs
(Previous Year: Rs. 31.76 lakhs) aggreegating to Rs. 13,792.67 lakhs
(Previous Year: Rs. 4,144.29 lakhs)
2 Loans, Advances & Debtors:
Loans, advances and debtors as stated in the Balance Sheet are, in the
opinion of the Management, realizable in the ordinary course of
business.
3 Secured Loans:
i) The Term Loans, including the Rs. 25 Crores availed during the year,
are secured by Paripassu Charge on all the Fixed Assets of the Company
by way of deposit of title deeds in respect of Factory and Land
admeasuring Acr.19.3475 Cents situated at Duggirala Mandal, Guntur
District. The said facility is further secured by way of second charge
on the current assets of the company both present and future. The Term
Loans availed by the company are also secured by the personal guarantee
of the Chairman & Managing Director.
ii) Working Capital Facilities by State Bank of India, State Bank of
Hyderabad and ICICI Bank Limited under consortium are secured by way of
first paripassu charge on Hypothecation of stocks of raw materials,
semi finished, finished goods, consumables, stores, book debts and such
movable assets present and future and second charge on all fixed assets
of the Company.
4 As per the Certificate given by the Management, there is no delay in
making payments to Micro, Small and Medium Enterprises attracting the
provisions of the Micro, Small and Medium Enterprises Development Act,
2006.
5 Disclosure as per AS 15:
a) Gratuity:
The Company has covered its gratuity liability by a Group Gratuity
Scheme issued by LIC of India. Under the plan the eligible employees
are entitled to Gratuity under a defined benefit plan.
b) Leave Encashment:
The Company has made provision for leave encashment of Rs. 4,22,558/-
based on actuarial valuation. Since actuarial valuation is done first
time, previous year figures are not given.
6. Quantitative & Other Information:
F) Details required under Clause C of Para 4D in Part II of Schedule VI
pertaining to percentage and value of Imported Raw Materials, Spare
Parts and components has not been provided as this information is
confidential and market sensitive.
7. Segment Reporting:
Based on the guiding principles given in Accounting Standard on Segment
Reporting (AS-17) issued by the Institute of Chartered Accountants of
India the Company's primary business segment is Instant Coffee.
Segment accounting policies:
In addition to the significant accounting policies applicable to the
business segment as set out in Note 1- Schedule 14 of the Notes to the
Accounts, the accounting policies in relation to segment accounting are
as under:
a. Segment revenue and expenses:
Segment revenue and expense are directly attributable to the segment.
Segment revenue and expense do not include interest income on
inter-corporate deposits, profit on sale of investments, interest
expense, provision for contingencies and income tax.
b. Segment assets and liabilities:
All segment assets and liabilities are directly attributable to the
segment.
Segment assets include all operating assets used by the segment and
consist principally of fixed assets, inventories, sundry debtors, loans
and advances and operating cash and bank balances. Segment assets and
liabilities do not include investments, inter corporate deposits,
reserves and surplus, borrowings, provision for contingencies and
income tax (both current and deferred)
8 Reporting on related parties : In accordance with the Accounting
standard 18, Name of related Parties and description of relationship is
as under:
1 Key Management Personnel Mr. Challa Rajendra Prasad, Chairman &
Managing Director
Mr. Challa Srishant, Executive Director
2 Relative of
Key Management Personnel Mrs. Challa Shantha Prasad -
(Spouse of Mr. Challa Rajendra Prasad
C.M.D.)
Ms. Challa Soumya - (Daughter of
Mr. Challa Rajendra Prasad C.M.D.)
3 Subsidiaries M/s. Jayanti Re Ltd., Singapore
(Subsidiary of CCL Products (India)
Limited - India)
M/s. Grandsaugreen SA, Switzerland
(Subsidiary of Jayanti Pte. Ltd.,
Singapore)
M/s. Ngon Coffee Company, Vietnam
(Subsidiary of Jayanti Pte. Ltd.,
Singapore)
Note:
1. Figures in brackets indicate corresponding previous year figures.
2. During the year the Company has made disinvestment of shares in
M/s.Associated Coffee Merchants (International) Limited - UK. Hence,
transactions upto the date of disinvestment is disclosed.
9 Previous Year's figures are regrouped/rearranged/recasted wherever
considered necessary to conform the current year figures
Mar 31, 2010
(Rs. in Lakhs)
1 Contingent Liabilities: 2009-2010 2008-2009
Guarantees 4,112.53 4,717.64
Others* 31.76 31.76
* This amount represent disputed Custom Duty Liability relating to FY
1996-97, pending before CEGAT
2 LOANS, ADVANCES & DEBTORS
Loans, advances and debtors as stated in the Balance Sheet are, in the
opinion of the management, realizable in the ordinary course of
business.
3 SECURED LOANS:
i) The Term Loans are secured by Paripassu Charge on all the Fixed
Assets of the Company by way of deposit of title deeds in respect of
Factory and Land admeasuring Acr.19.3475 Cents situated at Duggirala
Mandal, Guntur District. The said facility is further secured by way of
second charge on the current assets of the Company both present and
future. The Term Loans availed by the Company are also secured by the
personal guarantee of the Chairman & Managing Director.
ii) Working Capital Facilities by State Bank of India, State Bank of
Hyderabad and ICICI Bank Limited under consortium are secured by way of
frst paripassu charge on Hypothecation of stocks of raw materials, semi
fnished, fnished goods, consumables, stores, book debts and such
movable assets present and future and second charge on all fixed assets
of the Company.
4 As per the Certifcate given by the Management there is no delay in
making payments to Micro, Small and Medium Enterprises attracting the
provisions of the Micro, Small and Medium Enterprises Development Act,
2006.
5 Disclosure as per AS 15 Ã Gratuity
The Company has covered its gratuity liability by a Group Gratuity
Scheme issued by LIC of India. Under the plan the eligible employees
are entitled to Gratuity under a defned benefit plan.
6. Segment Reporting
Based on the guiding principles given in Accounting Standard on
`Segment Reporting (AS-17) issued by the Institute of Chartered
Accountants of India the Companys primary business segment is Instant
Coffee.
Segment Accounting Policies
In addition to the signifcant accounting policies applicable to the
business segment as set out in Note 1Ã Schedule 14 of the Notes to the
Accounts, the accounting policies in relation to segment accounting are
as under:
Segment assets and liabilities :
All segment assets and liabilities are directly attributable to the
segment.
Segment assets include all operating assets used by the segment and
consist principally of fixed assets, inventories, sundry debtors, loans
and advances and operating cash and bank balances. Segment assets and
liabilities do not include investments, inter corporate deposits,
reserves and surplus, borrowings, provision for contingencies and
income tax (both current and deferred).
Segment revenue and expenses:
Segment revenue and expense are directly attributable to the segment.
Segment revenue and expenses do not include interest income on
inter-corporate deposits, profit on sale of investments, interest
expense, provision for contingencies and income tax
1 Key Management Personnel
Mr.Challa Rajendra Prasad, Chairman & Managing Director Mr.Challa
Srishant, Executive Director
2 Relative of Key Management Personnel
Mrs.Challa Shantha Prasad - (Spouse of Mr.Challa Rajendra Prasad
C.M.D.)
3 Subsidiaries
M/s.Associated Coffee Merchants (International) Limited à uK
(Subsidiary of CCL Products (India) Limited à India)
M/s.Complete Coffee Ltd. London (Subsidiary of Associated Coffee
Merchants (International) Limited - ACMIL)
M/s.The Priory Tea and Coffee Co.Ltd (Subsidiary of Associated Coffee
Merchants (International) Limited - ACMIL)
M/s.Ridge Futures Limited (Subsidiary of Associated Coffee
Merchants (International) Limited - ACMIL)
M/s.CCL Products (uK) Ltd (Subsidiary of Associated Coffee
Merchants (International) Limited - ACMIL)
M/s.Ernest A Breminer (Subsidiary of Associated Coffee
Merchants (International) Limited - ACMIL)
M/s. Jayanti Pte Ltd., Singapore
(Subsidiary of CCL Products (India) Limited à India)
M/s. Grandsaugreen SA, Switzerland
(Subsidiary of Jayanti Pte. Ltd., Singapore)
7 Previous Years figures are regrouped/rearranged/recasted wherever
considered necessary to conform the current year figures
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