Accounting Policies of Cochin Malabar Estates & Industries Ltd. Company

Mar 31, 2025

3. MATERIAL ACCOUNTING POLICY INFORMATION

Material accounting policy information has been identified and disclosed based on the guidance provided under

Ind AS 1. The material accounting policy information used in preparation of the financial statements have been

disclosed below:

a. PROPERTY, PLANT AND EQUIPMENT

(i) Recognition and Measurement:

> Property, plant and equipment held for use in the production or/and supply of goods or services, or for
administrative purposes, are stated in the balance sheet at cost, less any accumulated depreciation and
accumulated impairment losses (if any).

> Cost of an item of property, plant and equipment acquired comprises its purchase price, including import
duties and non-refundable purchase taxes, after deducting any trade discounts and rebates, any directly
attributable costs of bringing the assets to its working condition and location for its intended use and
present value of any estimated cost of dismantling and removing the item and restoring the site on which it
is located.

> If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant and equipment.

(ii) Subsequent Measurement:

> Subsequent costs are included in the asset''s carrying amount, only when it is probable that future economic
benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as a separate asset is derecognized when
replaced.

> Major Inspection/ Repairs/ Overhauling expenses are recognized in the carrying amount of the item of

property, plant and equipment as a replacement if the recognition criteria are satisfied. Any Unamortized
part of the previously recognized expenses of similar nature is derecognized.

(iii) Depreciation and Amortization:

> Depreciation on Property, Plant & Equipment is provided under Written Down Method at rates determined
based on the useful life of the respective assets and the residual values in accordance with Schedule II of the
Companies Act, 2013 or as reassessed by the Company based on the technical evaluation.

> In respect of spares for specific machinery, cost is amortized over the useful life of the related machinery as
estimated by the management.

> Depreciation on additions (disposals) during the year is provided on a pro-rata basis i.e., from (up to) the
date on which asset is ready for use (disposed of).

> Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted
if appropriate.

(iv) Disposal of Assets:

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement
of an item of property, plant and equipment is determined as the difference between net disposal proceeds and
the carrying amount of the asset and is recognized in the statement of profit and loss.

(v) Capital Work in Progress:

Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest
on amount borrowed for acquisition of qualifying assets and other expenses incurred in connection with project
implementation in so far as such expenses relate to the period prior to the commencement of commercial
production.

b. CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short term deposits with
an original maturity of three months or less, which are subject to an insignificant risk of change in value.

For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand, term deposits
and other short-term highly liquid investments, net of bank overdrafts as they are considered an integral part of
the Company''s cash management. Bank overdrafts are shown within short term borrowings in the balance sheet.

c. REVENUE FROM CONTRACT WITH CUSTOMERS

Commission Income: Commission Income is recognized based on the contract terms on an accrual basis.

d. EMPLOYEE BENEFITS
Short Term Benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related
services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to
be settled wholly within twelve months after the end of the period in which the employees render the related
service are recognized in respect of employees'' services up to the end of the reporting period.

e. BORROWING COSTS

> Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings
of funds. Borrowing costs also includes foreign exchange difference to the extent regarded as an adjustment
to the borrowing costs.

> Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized
as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare
the asset for its intended use or sale.

> Transaction costs in respect of long term borrowing are amortized over the tenure of respective loans using
Effective Interest Rate (EIR) method. All other borrowing costs are recognized in the statement of profit and
loss in the period in which they are incurred.

f. INCOME TAX

The income tax expense or credit for the period is the tax payable on the current period''s taxable income
based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences and to unused tax losses. Current and deferred tax is
recognized in the statement of profit & loss, except to the extent that it relates to items recognized in other
comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive
income or directly in equity, respectively.

i. Current Tax:

Current tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be
paid to (recovered from) the taxation authorities using the tax rates (and tax laws) that have been enacted
or substantively enacted, at the end of the reporting period.

ii. Deferred Tax

> Deferred Tax assets and liabilities is measured at the tax rates that are expected to apply to the period when
the asset is realized or the liability is settled based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

> Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e.,
tax base). Deferred tax is also recognized for carry forward of unused tax losses and unused tax credits.

> Deferred tax assets are recognized 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 the end of each reporting period. The Company
reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient
taxable profit will be available to allow the benefit of part or that entire deferred tax asset to be utilized.
Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be
available.

> Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.

g. Earnings Per Share

Basic Earnings per share (EPS) is calculated by dividing the profit for the year attributable to equity holders by the
weighted average number of equity shares outstanding during the year. Diluted EPS is calculated by dividing the
profit attributable to equity holders adjusted for the effects of potential equity shares by the weighted average
number of equity shares outstanding during the year plus the weighted average number of equity shares that
would be issued on conversion of all the dilutive potential equity shares into equity shares.

h. FINANCIAL INSTRUMENTS

i. Financial Assets

> Recognition and Initial Measurement:

All financial assets are initially recognized when the company becomes a party to the contractual provisions
of the instruments. A financial asset is initially measured at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the
financial asset.

> Classification and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in four categories:

• Measured at Amortized Cost;

• Measured at Fair Value Through Other Comprehensive Income (FVTOCI);

• Measured at Fair Value Through Profit or Loss (FVTPL); and

• Equity Instruments designated at Fair Value through Other Comprehensive Income (FVTOCI).

o Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the following conditions

are met:

• The asset is held within a business model whose objective is achieved by both collecting contractual cash
flows; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included
in finance income in the statement of profit or loss. The losses arising from impairment are recognized in the
profit or loss. This category generally applies to trade receivables, cash and bank balances, loans and other
financial assets of the company.

o Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following conditions are met:

• The objective of the business model is achieved by both collecting contractual cash flows and selling the
financial assets; and

• The asset''s contractual cash flows represent SPPI.

Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They are
subsequently measured at fair value with any gains or losses arising on remeasurement recognized in other
comprehensive income, except for impairment gains or losses and foreign exchange gains or losses. Interest
calculated using the effective interest method is recognized in the statement of profit and loss in investment
income.

o Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet
the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition, the company
may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL.
Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in
the statement of profit and loss. Equity instruments which are, held for trading are classified as at FVTPL.

o Equity Instruments designated at FVTOCI: For equity instruments, which has not been classified as FVTPL as above,

the company may make an irrevocable election to present in other comprehensive income subsequent changes
in the fair value. The company makes such election on an instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable. In case the company decides to classify an equity instrument as at
FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no
recycling of the amounts from OCI to P&L, even on sale of investment.

> Derecognition:

The Company derecognizes a financial asset on trade date only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards
of ownership of the asset to another entity.

> Impairment of Financial Assets:

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets

is impaired. Ind AS - 109 requires expected credit losses to be measured through a loss allowance. The
company recognizes impairment loss for trade receivables that do not constitute a financing transaction
using expected credit loss model, which involves use of a provision matrix constructed on the basis of
historical credit loss experience. For all other financial assets, 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.

ii. Financial Liabilities

> Recognition and Initial Measurement:

Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and
borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognized initially at fair
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

> Subsequent Measurement:

Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified as
FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest
expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized
cost using the effective interest rate method. Interest expense and foreign exchange gains and losses
are recognized in profit or loss. Any gain or loss on Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual provisions of the relevant instrument and are
initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issues of
financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair
value through profit or loss) are added to or deducted from the fair value measured on initial recognition
of financial assets or financial liabilities. Purchase or sale of financial assets that require delivery of assets
within a time frame established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date when the Company commits to purchase or sell the asset.

iii. Disclosure

(i) Financial Assets

Recognition and Classification

The financial assets are classified at initial recognition in the following measurement categories as:

• those subsequently measured at amortised cost

• those to be subsequently measured at fair value [either through other comprehensive income (OCI), or
through profit or loss]

Subsequent Measurement

- Financial assets measured at amortised cost - Financial assets which are held within the business model of
collection of contractual cash flows and where those cash flows represent payment solely towards principal and
interest on the principal amount outstanding are measured at amortised cost. A gain or loss on a financial asset
that is measured at amortised cost and is not a part of hedging relationship is recognised in profit or loss when
the asset is derecognised or impaired.

- Financial assets measured at fair value through other comprehensive income - Financial assets that are
held within a business model of collection of contractual cash flows and for selling and where the assets'' cash
flow represents solely payment of principal and interest on the principal amount outstanding are measured
at fair value through OCI. Movements in carrying amount are taken through OCI, except for recognition of
impairment gains or losses. When a financial asset, other than investment in equity instrument, is derecognised,
the cumulative gain or loss previously recognised in OCI is reclassified from equity to Statement of Profit and Loss.
Classification of equity instruments, not being investments in subsidiaries, associates and joint arrangements,
depend on whether the Company has made an irrevocable election at the time of initial recognition to account

for the equity investment at fair value through OCI. When investment in such equity instrument is derecognised,
the cumulative gains or losses recognised in OCI is transferred within equity on such derecognition.

- Financial assets measured at fair value through profit or loss - Financial assets are measured at fair value
through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive
income on initial recognition. Movements in fair value of these instruments are taken in profit or loss. However,
trade receivables that do not contain a significant financial component are measured at transaction price.

Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets
is impaired. Impairment losses are recognised in the profit or loss where there is an objective evidence of
impairment based on reasonable and supportable information that is available without undue cost or effort.
For all financial assets, 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 (ECL) if the credit risk on the financial
asset has increased significantly since initial recognition. The Company always recognises lifetime ECL for trade
receivables and lease receivables. The expected credit losses on these financial assets are estimated using a
provision matrix based on the Company''s historical credit loss experience, adjusted for factors that are specific to
the debtors, general economic conditions and an assessment of both the current as well as the forecast direction
of conditions at the reporting date, including time value of money where appropriate. For all other financial
instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk since
initial recognition. However, if the credit risk on the financial instrument has not increased significantly since
initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to
12-month ECL. Lifetime ECL represents the expected credit losses that will result from all possible default events
over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL
that is expected to result from default events on a financial instrument that are possible within 12 months after
the reporting date.

(ii) Financial Liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into.
Financial liabilities are classified, at initial recognition, as subsequently measured at amortised cost unless they
fulfill the requirement of measurement at fair value through profit or loss. Where the financial liability has been
measured at amortised cost, the difference between the initial carrying amount of the financial liabilities and
their redemption value is recognised in the Statement of Profit and Loss over the contractual terms using the
effective interest rate method. Financial liabilities at fair value through profit or loss are carried at fair value with
changes in fair value recognised in the finance income or finance cost in the Statement of Profit and Loss.

(iii) Derecognition of financial assets and financial liabilities

Financial assets are derecognised when the rights to receive benefits have expired or been transferred, and
the Company has transferred substantially all risks and rewards of ownership of such financial asset. Financial
liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged,
cancelled or expires.

(iv) Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously.

---

Mar 31, 2024

3. MATERIAL ACCOUNTING POLICY INFORMATION

Material accounting policy information has been identified and disclosed based on the guidance provided under

Ind AS 1. The material accounting policy information used in preparation of the financial statements have been

disclosed below:

a. PROPERTY, PLANT AND EQUIPMENT

(i) Recognition and Measurement:

> Property, plant and equipment held for use in the production or/and supply of goods or services, or for
administrative purposes, are stated in the balance sheet at cost, less any accumulated depreciation and
accumulated impairment losses (if any).

> Cost of an item of property, plant and equipment acquired comprises its purchase price, including import
duties and non-refundable purchase taxes, after deducting any trade discounts and rebates, any directly
attributable costs of bringing the assets to its working condition and location for its intended use and
present value of any estimated cost of dismantling and removing the item and restoring the site on which it
is located.

> If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant and equipment.

(ii) Subsequent Measurement:

> Subsequent costs are included in the asset''s carrying amount, only when it is probable that future economic
benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as a separate asset is derecognized when
replaced.

> Major Inspection/ Repairs/ Overhauling expenses are recognized in the carrying amount of the item of
property, plant and equipment as a replacement if the recognition criteria are satisfied. Any Unamortized
part of the previously recognized expenses of similar nature is derecognized.

(iii) Depreciation and Amortization:

> Depreciation on Property, Plant & Equipment is provided under Written Down Method at rates determined
based on the useful life of the respective assets and the residual values in accordance with Schedule II of the
Companies Act, 2013 or as reassessed by the Company based on the technical evaluation.

> In respect of spares for specific machinery, cost is amortized over the useful life of the related machinery as
estimated by the management.

> Depreciation on additions (disposals) during the year is provided on a pro-rata basis i.e., from (up to) the
date on which asset is ready for use (disposed of).

> Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted
if appropriate.

(iv) Disposal of Assets:

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement
of an item of property, plant and equipment is determined as the difference between net disposal proceeds and
the carrying amount of the asset and is recognized in the statement of profit and loss.

(v) Capital Work in Progress:

Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest
on amount borrowed for acquisition of qualifying assets and other expenses incurred in connection with project
implementation in so far as such expenses relate to the period prior to the commencement of commercial
production.

b. CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short term deposits with
an original maturity of three months or less, which are subject to an insignificant risk of change in value.

For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand, term deposits
and other short-term highly liquid investments, net of bank overdrafts as they are considered an integral part of
the Company''s cash management. Bank overdrafts are shown within short term borrowings in the balance sheet.

c. REVENUE FROM CONTRACT WITH CUSTOMERS

Commission Income: Commission Income is recognized based on the contract terms on an accrual basis i.e.
revenue is already realized even though the payment takes place at a later point in time.

d. EMPLOYEE BENEFITS
Short Term Benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related
services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to
be settled wholly within twelve months after the end of the period in which the employees render the related
service are recognized in respect of employees'' services up to the end of the reporting period.

e. BORROWING COSTS

> Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings
of funds. Borrowing costs also includes foreign exchange difference to the extent regarded as an adjustment
to the borrowing costs.

> Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized
as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare
the asset for its intended use or sale.

> Transaction costs in respect of long term borrowing are amortized over the tenure of respective loans using
Effective Interest Rate (EIR) method. All other borrowing costs are recognized in the statement of profit and
loss in the period in which they are incurred.

f. INCOME TAX

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses. Current and deferred tax is recognized in the
statement of profit & loss, except to the extent that it relates to items recognized in other comprehensive income
or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity,
respectively.

i. Current Tax:

Current tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be
paid to (recovered from) the taxation authorities using the tax rates (and tax laws) that have been enacted or
substantively enacted, at the end of the reporting period.

ii. Deferred Tax

> Deferred Tax assets and liabilities is measured at the tax rates that are expected to apply to the period when
the asset is realized or the liability is settled based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

> Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e.,
tax base). Deferred tax is also recognized for carry forward of unused tax losses and unused tax credits.

> Deferred tax assets are recognized 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 the end of each reporting period. The Company
reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient
taxable profit will be available to allow the benefit of part or that entire deferred tax asset to be utilized.
Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be
available.

> Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.

g. EARNINGS PER SHARE

Basic Earnings per share (EPS) is calculated by dividing the profit for the year attributable to equity holders by the
weighted average number of equity shares outstanding during the year. Diluted EPS is calculated by dividing the
profit attributable to equity holders adjusted for the effects of potential equity shares by the weighted average
number of equity shares outstanding during the year plus the weighted average number of equity shares that
would be issued on conversion of all the dilutive potential equity shares into equity shares.

h. FINANCIAL INSTRUMENTS

i. Financial Assets

> Recognition and Initial Measurement:

All financial assets are initially recognized when the company becomes a party to the contractual provisions
of the instruments. A financial asset is initially measured at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the
financial asset.

> Classification and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in four categories:

• Measured at Amortized Cost;

• Measured at Fair Value Through Other Comprehensive Income (FVTOCI);

• Measured at Fair Value Through Profit or Loss (FVTPL); and

• Equity Instruments designated at Fair Value through Other Comprehensive Income (FVTOCI).

• Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the following
conditions are met:

¦ The asset is held within a business model whose objective is achieved by both collecting contractual cash
flows; and

¦ The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included
in finance income in the statement of profit or loss. The losses arising from impairment are recognized in the
profit or loss. This category generally applies to trade receivables, cash and bank balances, loans and other
financial assets of the company.

o Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following conditions are met:

• The objective of the business model is achieved by both collecting contractual cash flows and selling
the financial assets; and

• The asset''s contractual cash flows represent SPPI.

Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They are
subsequently measured at fair value with any gains or losses arising on remeasurement recognized in other
comprehensive income, except for impairment gains or losses and foreign exchange gains or losses. Interest
calculated using the effective interest method is recognized in the statement of profit and loss in investment
income.

o Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument, which does
not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition,
the company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI
criteria, as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with
all changes recognized in the statement of profit and loss. Equity instruments which are, held for trading are
classified as at FVTPL.

o Equity Instruments designated at FVTOCI: For equity instruments, which has not been classified as FVTPL
as above, the company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value. The company makes such election on an instrument-by-instrument
basis. The classification is made on initial recognition and is irrevocable. In case the company decides to
classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends,
are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment.

> Derecognition:

The Company derecognizes a financial asset on trade date only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards
of ownership of the asset to another entity.

> Impairment of Financial Assets:

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets
is impaired. Ind AS - 109 requires expected credit losses to be measured through a loss allowance. The
company recognizes impairment loss for trade receivables that do not constitute a financing transaction
using expected credit loss model, which involves use of a provision matrix constructed on the basis of
historical credit loss experience. For all other financial assets, 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.

ii. Financial Liabilities

> Recognition and Initial Measurement:

Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and
borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognized initially at fair
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

> Subsequent Measurement:

Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified as
FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest
expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized
cost using the effective interest rate method. Interest expense and foreign exchange gains and losses
are recognized in profit or loss. Any gain or loss on Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual provisions of the relevant instrument and are
initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issues of
financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair
value through profit or loss) are added to or deducted from the fair value measured on initial recognition
of financial assets or financial liabilities. Purchase or sale of financial assets that require delivery of assets
within a time frame established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date when the Company commits to purchase or sell the asset.

iii. Disclosure

(i) Financial Assets

Recognition and Classification

The financial assets are classified at initial recognition in the following measurement categories as:

• those subsequently measured at amortised cost

• those to be subsequently measured at fair value [either through other comprehensive income (OCI), or
through profit or loss]

Subsequent Measurement

- Financial assets measured at amortised cost - Financial assets which are held within the business model of
collection of contractual cash flows and where those cash flows represent payment solely towards principal and
interest on the principal amount outstanding are measured at amortised cost. A gain or loss on a financial asset
that is measured at amortised cost and is not a part of hedging relationship is recognised in profit or loss when
the asset is derecognised or impaired.

- Financial assets measured at fair value through other comprehensive income - Financial assets that are
held within a business model of collection of contractual cash flows and for selling and where the assets'' cash
flow represents solely payment of principal and interest on the principal amount outstanding are measured
at fair value through OCI. Movements in carrying amount are taken through OCI, except for recognition of
impairment gains or losses. When a financial asset, other than investment in equity instrument, is derecognised,
the cumulative gain or loss previously recognised in OCI is reclassified from equity to Statement of Profit and Loss.
Classification of equity instruments, not being investments in subsidiaries, associates and joint arrangements,
depend on whether the Company has made an irrevocable election at the time of initial recognition to account
for the equity investment at fair value through OCI. When investment in such equity instrument is derecognised,
the cumulative gains or losses recognised in OCI is transferred within equity on such derecognition.

- Financial assets measured at fair value through profit or loss - Financial assets are measured at fair value
through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive
income on initial recognition. Movements in fair value of these instruments are taken in profit or loss. However,
trade receivables that do not contain a significant financial component are measured at transaction price.

Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets
is impaired. Impairment losses are recognised in the profit or loss where there is an objective evidence of
impairment based on reasonable and supportable information that is available without undue cost or effort.
For all financial assets, 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 (ECL) if the credit risk on the financial
asset has increased significantly since initial recognition. The Company always recognises lifetime ECL for trade
receivables and lease receivables. The expected credit losses on these financial assets are estimated using a
provision matrix based on the Company''s historical credit loss experience, adjusted for factors that are specific to
the debtors, general economic conditions and an assessment of both the current as well as the forecast direction
of conditions at the reporting date, including time value of money where appropriate. For all other financial
instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk since
initial recognition. However, if the credit risk on the financial instrument has not increased significantly since
initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to
12-month ECL. Lifetime ECL represents the expected credit losses that will result from all possible default events
over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL
that is expected to result from default events on a financial instrument that are possible within 12 months after
the reporting date.

(ii) Financial Liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into.
Financial liabilities are classified, at initial recognition, as subsequently measured at amortised cost unless they
fulfill the requirement of measurement at fair value through profit or loss. Where the financial liability has been
measured at amortised cost, the difference between the initial carrying amount of the financial liabilities and
their redemption value is recognised in the Statement of Profit and Loss over the contractual terms using the
effective interest rate method. Financial liabilities at fair value through profit or loss are carried at fair value with
changes in fair value recognised in the finance income or finance cost in the Statement of Profit and Loss.

(iii) Derecognition of financial assets and financial liabilities

Financial assets are derecognised when the rights to receive benefits have expired or been transferred, and
the Company has transferred substantially all risks and rewards of ownership of such financial asset. Financial
liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged,
cancelled or expires.

(iv) Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously.

---

Mar 31, 2015

I) BASIS OF ACCOUNTING

The financial statements have been prepared to comply in all material respects with the Accounting Standards specified under section 133 of the Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared under the historical cost convention on an accrual basis.

ii) USE OF ESTIMATES

The preparation of financial statements are in conformity with generally accepted accounting principles which requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/materialized.

iii) FIXED ASSETS

Tangible Fixed Assets are stated at their original cost adjusted by revaluation of land, building, roads & bridges and plant & machinery wherever applicable, less depreciation/impairment. Cost includes incidental expenses. Profits or losses on sale of tangible fixed assets are included in the statement of profit and loss and calculated as difference between the value realized and book value. Capital work-in-progress is stated at cost.

iv) DEPRECIATION & AMORTISATION EXPENSES :

Depreciation on assets are provided under WDV method at the useful life specified under Schedule II of the Companies Act, 2013.

v) IMPAIRMENT

An impairment loss is recognized where applicable when the carrying value of fixed assets exceeds its market value or value in use whichever is higher. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

vi) BORROWING COST

Borrowing cost relating to acquisition/construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to revenue.

vii) TAXATION

Current tax comprise of Income Tax that would be payable based on computation of tax as per taxation laws under the Income Tax Act, 1961. Deferred Tax is recognised, subject to the consideration of prudence, on timing differences, between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are not recognised unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

viii) PROVISIONS AND CONTINGENT LIABILITIES

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the obligation. 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 and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made. Contingent assets are not provided for or disclosed.

---

Mar 31, 2014

I) BASIS OF ACCOUNTING

The accounts are prepared on historical cost convention (with the exception of certain land and plant and machinery which were revalued) based on Accrual Method of Accounting and applicable Accounting Standards and on Going Concern Basis in accordance with accounting standards and the relevant provisions of the Companies Act, 1956.

The financial statements has been prepared and presented as per the requirement of Revised Schedule VI as notified under the Companies Act, 1956.

All Assets and Liabilities have been classified as current or non current as per the company''s normal operating cycle and other criteria specified in the Revised Schedule VI to the Companies Act, 1956. The company has presently determined 12 months as the normal Operating cycle for the purpose of classification of current and non current Assets and Liabilities.

ii) USE OF ESTIMATES

The preparation of financial statements are in conformity with generally accepted accounting principles which requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialized.

iii) FIXED ASSETS

Fixed Assets are stated at cost inclusive of interest on borrowings attributable to acquisition of tangible fixed assets and increased by revaluation of assets at their fair market values as on 31/03/1993 as determined by approved valuers, less depreciation except in respect of Rubber Wood Division and Kinalur Estate of Rubber Division for which no depreciation is provided during the year.

iv) DEPRECIATION & AMORTISATION EXPENSES

Depreciation on assets other than relating to Rubber Wood Division are provided under WDV method at the rates specified under Schedule XIV of the Companies Act, 1956. However, depreciation is not provided for the year in respect of Rubber Wood Division since the Division is not in operation.

v) BORROWING COST

Borrowing cost relating to acquisition/construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to revenue.

vi) TAXATION

Provision for Current Tax is being made as per the provisions of the Income Tax Act, 1961.

Provision for Deferred Tax in accordance with the Accounting Standard (AS-22) - Accounting for taxes on Income is not considered in view of the absence of virtual certainty of realisation of unabsorbed carry forward losses.

vii) SEGMENT REPORTING

As the entire operation of the company''s products relate to "Plantation" as single primary reportable segment, in the opinion of management no separate segment reporting is required under The Accounting Standard Rules, 2006.

viii) CASH FLOW

Cash flow statement has been prepared in accordance with the Indirect Method as per Accounting Standard 3 prescribed in "The Accounting Standard Rules, 2006."

---

Mar 31, 2013

I) Basis of Accounting

The accounts are prepared on historical cost convention (with the exception of certain land and plant & machinery which were revalued) based on Accrual Method of Accounting and applicable Accounting Standards and on Going Concern Basis in accordance with accounting standards and the relevant provisions of the Companies Act, 1956.

The financial statements has been prepared and presented as per the requirement of Revised Schedule VI as notified under the Companies Act, 1956.

All Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria specified in the Revised Schedule VI to the Companies Act, 1956. The Company has presently determined 12 months as the normal operating cycle for the purpose of classification of current and non current Assets and Liabilities.

ii) Use of Estimates

The preparation of financial statements are in conformity with generally accepted accounting principles which requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/materialized.

iii) Fixed Assets

a) Fixed Assets are stated at cost inclusive of interest on borrowings attributable to acquisition of tangible fixed assets and increased by revaluation of assets at their fair market values as on 31/03/1993 as determined by approved valuers, less depreciation except in respect of Rubberwood Division and Kinalur Estate of Rubber Division for which no depreciation is provided during the year.

b) Subsidies received in respect of fixed assets are deducted from the cost of respective assets.

c) Items of machinery spares to be used in connection with an item of fixed assets are amortized over the useful life of the assets.

d) Fixed Assets taken on lease (other than land taken on perpetual lease) are not capitalized and the annual lease rentals are absorbed in the Statement of Profit & Loss. The excess of lease rentals paid over the amount accrued in respect thereof is treated as prepaid lease rental.

iv) Investments

Long-term and Unquoted Investments are stated at cost unless there is a permanent decline in value thereof, in which case, adequate provision is made in the accounts. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.

v) Inventories

a) Stock of Finished Rubber, Tea and other minor produce are valued at the lower of cost (determined on weighted average method) and net realizable value.

b) Stock of Stores and spare parts are valued at cost using the weighted average cost basis.

c) Loose tools etc, are amortized over a period of 3 years.

vi) Retirement Benefits

Retirement benefits to employees, as applicable, are ascertained and provided in the accounts as per AS 15 "Employees Benefits".

vii) Revenue Recognition

Sales comprise of sales of goods, net of discounts and sales return, Sales Tax and Excise Duty wherever applicable. Sale of standing trees is accounted as and when they are removed and the proceeds are credited to the Statement of Profit & Loss.

Dividends from companies are accounted as income in the year in which they are received.

viii) Depreciation & Amortisation Expenses

Depreciation on assets other than relating to Rubberwood Division are provided under WDV method at the rates specified under Schedule XIV of the Companies Act, 1956. However, depreciation is not provided for the year in respect of Rubberwood Division and Kinalur Estate of Rubber Division since these Divisions are not in operation.

Value of lease hold land taken on perpetual lease and development expenditure thereto are not amortised. Depreciation on the incremental value on revaluation is debited to the Fixed Assets Revaluation Reserve account.

Intangible Assets are amortized over a period of 5 years.

ix) Replanting Expenses

Replanting expenditure is charged to the Statement of Profit & Loss of the year in which they are incurred except for Replanting expenses ofTea Division (priorto Demerger) which were capitalised.

x) Foreign Currency Transaction

There were no foreign currency transactions made during the year under audit.

xi) Taxation

No provision for taxation is made in view of losses incurred.

xii) Impairment of Assets

At each Balance Sheet date, the carrying values of the tangible assets are reviewed to determine whether there is any indication that those assets have suffered on impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where there is an indication that there is a likely impairment loss for a group of assets, the company estimates the recoverable amount of the group of assets as a whole to determine the value of impairment.

xiii) Borrowing Cost

Borrowing cost relating to acquisition/construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to revenue.

xiv) Segment Reporting

As the entire operation of the Company''s products relate to "Plantation" as single primary reportable segment, in the opinion of management no separate segment reporting is required under The Accounting Standard Rules, 2006.

xv) Cash Flow

Cash Flow Statement has been prepared in accordance with the Indirect Method as per Accounting Standard 3 prescribed in "The Accounting Standard Rules, 2006."

---

Mar 31, 2010

1. Basis of Accounting

The accounts are prepared on historical cost convention (with the exception of certain land and plant and machinery which were revalued) based on Accrual Method of Accounting and applicable Accounting Standards and on Going Concern Basis in accordance with accounting standards and the relevant provisions of Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements are in conformity with generally accepted accounting principles which requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets

(i) Fixed Assets are stated at cost inclusive of interest on borrowings attributable to acquisition of Fixed Assets and increased by revaluation of assets at their fair market values as on 31/03/1993 as determined by approved valuers, less depreciation except in respect of Rubber Wood Division and Kinalur Estate of Rubber Division for which no depreciation is provided during the year.

(ii) Subsidies received in respect of fixed assets are deducted from the cost of respective assets.

(iii) Items of machinery spares to be used in connection with an item of fixed assets are amortized over the useful life of the assets.

(iv) Fixed Assets taken on lease (other than land taken on perpetual lease) are not capitalized and the annual lease rentals are absorbed in the Profit and Loss Account. The excess of lease rentals paid over the amount accrued in respect thereof is treated as prepaid lease rental.

4. Investments

Long term and unquoted Investments are stated at cost unless there is a permanent decline in value

thereof, in which case, adequate provision is made in the accounts. Cost includes brokerage, stamp duty and other financial charges directly attributable to their acquisition.

5. Inventories

i) Stock of Finished Rubber, Tea and Other Minor Produce are valued at the lower of cost (determined on weighted average method) and net realizable value.

ii) Stock of Stores and spare parts are valued at cost using the weighted average cost basis.

iii) Loose tools etc. are amortized over a period of 3 years.

6. Retirement Benefits

Retirement benefits to employees are ascertained and provided in the accounts as per AS-15 "Employee Benefits".

i) Gratuity:

Company has taken group gratuity policy for future payment of gratuity with the Life Insurance Corporation of India (LIC). Incremental liability for gratuity has been provided in the accounts based on actuarial valuation. The arrears of premium are being paid in monthly instalments.

ii) Superannuation Fund :

This is a defined contribution plan. The Company contributes under the defined contribution plan, managed by Life Insurance Corporation of India. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognized such contribution as expenses in the year in which the same was incurred.

iii) Provident Fund :

This is a defined contribution plan and contributions made to the fund are charged to revenue. The Company has no further obligations for future provident fund benefits other than annual contribution.

7. Revenue Recognition

Sales comprise of sales of goods, net of discounts and sales return, Sales Tax and Excise Duty wherever applicable. Sale of standing trees is accounted as and when they are removed and the proceeds are credited to the Profit and Loss Account.

Dividends from Companies are accounted as income in the year in which they are received.

8. Depreciation

Depreciation on assets other than relating to Rubber Wood Division are provided under WDV method at the rates specified under Schedule XIV of the Companies Act, 1956. However, depreciation is not provided for the year in respect of Rubber Wood Division and Kinalur Estate of Rubber Division since these Divisions are not in operation.

Value of lease hold land taken on perpetual lease and development expenditure thereto are not amortized. Depreciation on the incremental value on revaluation is debited to the Fixed Assets Revaluation Reserve account.

9. Replanting Expenses

Replanting expenses is charged to the Profit and Loss Account of the year in which they are incurred except for Replanting expenses of Tea Division for the reasons explained in Note No. 8 below.

10. Foreign Currency Transactions

There were no foreign currency transactions made during the year under audit.

11. Taxation

No provision for taxation for current year is made in view of carried forward losses. The Company has significant unabsorbed depreciation and carried forward losses. In the absence of virtual certainty of realization of unabsorbed depreciation and carry forward losses, no Deferred Tax assets has been recognized, which is not quantified.

12. Impairment of Assets

At each Balance Sheet date, the carrying values of