Notes to Accounts of Cochin Malabar Estates & Industries Ltd.

Mar 31, 2025

i. Provisions, Contingent Liabilities and Contingent Assets
i. Provisions

Provisions are determined by discounting the expected future cash flows (representing the best estimate of the
expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. The unwinding of

the discount is recognized as finance cost.
ii. Contingent Liabilities

Contingent liability are disclosed when there is a possible obligation arising from past events and the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or a present obligation that arises from past events but is not
recognized because it is not possible that an outflow of resources embodying economic benefit will be required
to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company
discloses the existence of contingent liabilities in Other Notes to Financial Statements.

4 SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES

Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Company and that are believed to
be reasonable under the circumstances. Information about Significant judgements and Key sources of estimation
made in applying accounting policies that have the most significant effects on the amounts recognized in the
financial statements is included in the following notes:

> Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based
on an assessment of probability of the Company''s future taxable income against which the deferred tax
assets can be utilized. In addition, significant judgement is required in assessing the impact of any legal or
economic limits.

> Useful lives of depreciable/amortisable assets (tangible and intangible): Management reviews its
estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected
utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change
the utility of plant and equipment.

> Provisions and Contingencies: The assessments undertaken in recognizing provisions and contingencies
have been made in accordance with Indian Accounting Standards (Ind AS) 37, ''Provisions, Contingent
Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best
judgement by management regarding the probability of exposure to potential loss.

> Impairment of Financial Assets: The Company reviews its carrying value of investments carried at
amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount
is less than its carrying amount, the impairment loss is accounted for.

Notes :

i) Land includes Rs. 355.26 thousands (P.Y. Rs. 355.26 thousands), Building Rs. 1,366.58 thousands (P.Y. Rs. 1397.20
thousands), Plant and Equipment Rs. 443.30 thousands (P.Y. Rs. 443.30 thousands) and Roads and bridges Rs. 3.19
thousands (P.Y. Rs. 3.19 thousands) relating to Rubberwood Factory situated in the state of Kerala which is not in
operation for nearly 27 years pursuant to notice received from the Deputy Conservator of Forests (Protection),
Trivandrum. Out of these fixed assets mentioned above, building was impaired in earlier years considering the
net realisable value of the same.

ii) The Company has not revalued its property, plant and equipment during the year ended March 31, 2025 and
March 31, 2024

iii) Freehold land with a carrying amount of Rs. 1982.01 thousands (P.Y. Rs. 1,929.10 thousands) have been pledged
to secure borrowings of the Company (Refer Note 14.1).

12.4 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the
year.

12.5 Terms/ Rights attached to Equity Shares :

The Company has only one class of issued shares i.e. Equity Shares having par value of ''10/- per share. Each
holder of Equity Shares is entitled to one vote per share and equal right for dividend. The dividend proposed
by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting,
except in case of interim dividend. In the event of liquidation, the Equity shareholders are eligible to receive the
remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

12.6 Shareholding Pattern with respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.

12.7 Details of Equity Shareholders holding more than 5% shares in the Company

14.1 Details of Security Given for Loan

Loan of Rs. 20,000 thousands is secured by first and exclusive charge over the property bearing Survey No.
112 sub-division nos. 1-40 and survey no. 113 sub-division nos. 1-20, aggregately admeasuring 26,775 sq. mts,
situated at village Mercurim of Tiswadi Taluka, Goa. The loan is repayable on demand and it carries interest rate
@ 12.50% p.a.

14.2 Unsecured loan from body corporates is repayable on demand and carries interest rate @ 9.00% p.a.

14.3 No amount have been guaranteed by Directors of the Company.

14.4 There is no default on Balance Sheet date in repayment of borrowings and interest thereon.

14.5 The Company is not required to file quarterly returns or statements with the banks as it has no borrowings from
bank.

25 Loans or advances (repayable on demand or without specifying any terms or period of repayment) to
specified persons

During the year ended March 31, 2025 the Company did not provide any Loans or advances which remains
outstanding (repayable on demand or without specifying any terms or period of repayment) to specified persons
(Nil as on March 31,2024)

26 Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company, during the year ended March 31, 2025 and March 31, 2024 for holding any Benami property.

27 Undisclosed Income

The Company does not have any such transaction which is not recorded in the books of account that has
been surrendered or disclosed as income during the year ended March 31, 2025 and March 31, 2024 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)

28 Wilful Defaulter

The Company is not a declared wilful defaulter by any bank or financial institution or other lender during the year
ended March 31, 2025 and also for the year ended March 31,2024.

29 Applicability of Corporate Social Responsibility

The Company is not getting covered under section 135 of the Companies Act, 2013 and as such the provisions
of CSR are not applicable on the Company.

30 Relationship with Struck off Companies

The Company did not have any transaction with companies struck off during the year ended March 31, 2025 and
also for the year ended March 31, 2024.

31 As at March 31, 2025, the records of the Ministry of Corporate Affairs (MCA) reflect six charge pending filing
satisfaction which was created/satisfied many years back and despite repayment of underlying loan within the
stipulated time. The charge is historic in nature and it involves practical challenges in obtaining no-objection
certificates (NOCs) from the charge holders at this stage. Details as below:

32 Utilisation of Borrowed funds and share premium

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. The Company has not advanced or lent 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.

33 Crypto Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,
2025 and March 31,2024

Note :Since the Company has no revenue from operations during the year ended March 31, 2025 and March 31,
2024, Inventory Turnover Ratio, Trade Receivable & Payable Turnover Ratio, Net Capital Turnover Ratio & Net
Profit Ratio has not been disclosed. Moreover, since the Company does not have any investment during the year
ended March 31, 2025 & March 31,2024 the ratio of return on investment has not been disclosed.

35 Disclosure as required under the micro, small and medium enterprises development act, 2006, to the extent
ascertained, and as per notification number GSR 679 (E) dated 4th September, 2015

Note : The above information has been determined to the extent such parties identified on the basis of information
available with the Company.

36 Related Party Disclosures

36.1 Name of the related parties and description of relationship

A Enterprise having significant influence over the Company (by virtue of having more than 20% voting
rights)

- Shri Vasuprada Plantations Limited (by virtue of having more than 20% voting rights)

B Key Management Personnel

Mr. Hemant Bangur - Non-Executive Director
Mr. Jay Kumar Surana - Independent Director
Mrs. Tara Purohit - Independent Director (upto 31.03.2025)

Mrs. Komal Bhotika - Independent Director (w.e.f. 28.03.2025)

- Mr. C.P. Sharma - Wholetime Director

C Entities over which Key Management Personnels are able to exercise control/joint control/significant
influence

- Credwyn Holdings (I) Private Limited (CHPL)

- The Oriental Company Limited (TOCL)

38.2 The management assessed that the fair values of cash and cash equivalents, borrowings and trade payables
approximates their carrying amounts largely due to the short-term maturities of these instruments.

38.3 The following methods and assumptions were used to estimate the fair values:

The fair values for loans, were calculated based on cash flows discounted using a current lending rate. They are
classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including
counterparty credit risks, which has been assessed to be insignificant.

39 Financial Risk Management

Financial management of the Company has been receiving attention of the top management of the Company.
Various kinds of financial risks and their mitigation plans are as follows:

39.1 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings
up cash forecast for short term and long term needs. The Company manage its liquidity risk in a manner so as
to meet its normal financial obligations without any significant delay or stress. Such risk is managed through
ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position.
The management has arranged for diversified funding sources and adopted a policy of managing assets with
liquidity monitoring future cash flow and liquidity on a regular basis.

c The amounts are gross and undiscounted, and include contractual interest payments and exclude the
impact of netting agreements (if any). It is not expected that cash flows included in the maturity analysis
could occur significantly earlier, or at significantly different amounts.

39.3 Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of movements in foreign exchange
rates. There is no exposure of foreign currency and hence the management has assessed that there is no foreign
currency risk during the year (Previous Year: Rs. Nil)

39.4 Interest Rate Risk

The Company has borrowings which carries fixed rate of interest. The management has assessed that exposure
of the Company in interest rate risk at the end of the year is Rs. Nil (Previous Year: Rs. Nil)

40 Capital Management

The Company objective to manage its capital is to ensure continuity of business while at the same time provide
reasonable returns to its various stakeholders but keep associated costs under control. Sourcing of capital is
done through judicious combination of equity/internal accruals and borrowings. Net debt (total borrowings less
investments and cash and cash equivalents) to equity ratio is used to monitor capital.

* As the Company is having negative networth as on 31st March, 2025 & 31st March, 2024, debt equity ratio
cannot be computed.

41 In an earlier year the Company had received entire sale consideration in respect of sale of Kinalur Estate. The
process of registration of Land in the name of few buyers are in the process of completion.

42 The Networth of the company has been fully eroded. The company is developing its land assets in Goa and
considering income earned during the year and future plans of the company, the going concern status of the
company is maintained. Further, considering the income earned during the current & previous year and based on
future profitability projection, the Company has recognised deferred tax assets (net) on brought forward losses
& unabsorbed depreciation during the current year. Hence, a sum of '' 56.26 lakhs (Net of current year utilisation)
has been recognised.

As per our Report annexed For and on behalf of Board of Directors

For and on behalf of

For Singhi & Co

Chartered Accountants Hemant Bangur C.P. Sharma

Firm Regn. No. 302049E Non Executive Director Wholetime Director

(DIN : 00040903) (DIN :00258646)

Gopal Jain

Partner Arun Kumar Ruia Mohit Kandoi

Membership No. 059147 Chief Financial Officer Company Secretary

Place: Kolkata

Dated : 9th May, 2025

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Mar 31, 2024

i. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

i. Provisions

Provisions are determined by discounting the expected future cash flows (representing the best estimate of the
expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. The unwinding of
the discount is recognized as finance cost.

ii. Contingent Liabilities

Contingent liability are disclosed when there is a possible obligation arising from past events and the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or a present obligation that arises from past events but is not
recognized because it is not possible that an outflow of resources embodying economic benefit will be required
to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company
discloses the existence of contingent liabilities in Other Notes to Financial Statements.

4 SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES

Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Company and that are believed to
be reasonable under the circumstances. Information about Significant judgements and Key sources of estimation
made in applying accounting policies that have the most significant effects on the amounts recognized in the
financial statements is included in the following notes:

> Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based
on an assessment of probability of the Company''s future taxable income against which the deferred tax
assets can be utilized. In addition, significant judgement is required in assessing the impact of any legal or
economic limits.

> Useful lives of depreciable/amortisable assets (tangible and intangible): Management reviews its
estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected
utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change
the utility of plant and equipment.

> Provisions and Contingencies: The assessments undertaken in recognizing provisions and contingencies
have been made in accordance with Indian Accounting Standards (Ind AS) 37, ''Provisions, Contingent
Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best
judgement by management regarding the probability of exposure to potential loss.

> Impairment of Financial Assets: The Company reviews its carrying value of investments carried at
amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount
is less than its carrying amount, the impairment loss is accounted for.

Notes :

i) Land includes Rs. 355.26 thousands (P.Y. Rs. 355.26 thousands), Building Rs. 1,397.20 thousands (P.Y. Rs. 1,430.03
thousands), Plant and Equipment Rs. 443.30 thousands (P.Y.Rs. 443.30 thousands) and Roads and bridges Rs. 3.19
thousands (P.Y. Rs. 3.19 thousands) relating to Rubberwood Factory situated in the state of Kerala which is not in
operation for nearly 26 years pursuant to notice received from the Deputy Conservator of Forests (Protection),
Trivandrum. Out of these fixed assets mentioned above, building was impaired in earlier years considering the
net realisable value of the same.

ii) The Company has not revalued its property, plant and equipment during the year ended March 31, 2024 and
March 31, 2023

iii) Freehold land with a carrying amount of Rs. 1,929.10 thousands (P.Y. Rs. 1,929.10 thousands) have been pledged
to secure borrowings of the Company (Refer Note 13.1).

11.4 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the
year.

11.5 Terms/ Rights attached to Equity Shares :

The Company has only one class of issued shares i.e. Equity Shares having par value of ''10/- per share. Each
holder of Equity Shares is entitled to one vote per share and equal right for dividend. The dividend proposed
by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting,
except in case of interim dividend. In the event of liquidation, the Equity shareholders are eligible to receive the
remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

11.6 Shareholding Pattern with respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.

11.7 Details of Equity Shareholders holding more than 5% shares in the Company

23 Loans or advances (repayable on demand or without specifying any terms or period of repayment) to
specified persons

During the year ended March 31, 2024 the Company did not provide any Loans or advances which remains
outstanding (repayable on demand or without specifying any terms or period of repayment) to specified persons
(Nil as on March 31, 2023)

24 Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company, during the year ended March 31, 2024 and March 31,2023 for holding any Benami property.

25 Undisclosed Income

The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year ended March 31, 2024 and March 31, 2023 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)

26 Wilful Defaulter

The Company is not a declared wilful defaulter by any bank or financial institution or other lender during the year
ended March 31,2024 and also for the year ended March 31, 2023.

27 Applicability of Corporate Social Responsibility

The Company is not getting covered under section 135 of the Companies Act, 2013 and as such the provisions of
CSR are not applicable on the Company.

28 Relationship with Struck off Companies

The Company did not have any transaction with companies struck off during the year ended March 31,2024 and
also for the year ended March 31, 2023.

30 Utilisation of Borrowed funds and share premium

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. The Company has not advanced or lent 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.

37.2 The management assessed that the fair values of cash and cash equivalents, borrowings and trade payables
approximates their carrying amounts largely due to the short-term maturities of these instruments.

37.3 The following methods and assumptions were used to estimate the fair values:

The fair values for loans, were calculated based on cash flows discounted using a current lending rate. They are
classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including
counterparty credit risks, which has been assessed to be insignificant.

38 Financial Risk Management

Financial management of the Company has been receiving attention of the top management of the Company.
Various kinds of financial risks and their mitigation plans are as follows:

38.1 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings
up cash forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any
significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time
maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding
sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a
regular basis.

38.2 Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of movements in foreign exchange
rates. There is no exposure of foreign currency and hence the management has assessed that there is no foreign
currency risk during the year (Previous Year: Rs. Nil)

38.3 Interest Rate Risk

The Company has borrowings which carries fixed rate of interest. The management has assessed that exposure
of the Company in interest rate risk at the end of the year is Rs. Nil (Previous Year: Rs. Nil)

39 Capital Management

The Company objective to manage its capital is to ensure continuity of business while at the same time provide
reasonable returns to its various stakeholders but keep associated costs under control. Sourcing of capital is
done through judicious combination of equity/internal accruals and borrowings. Net debt (total borrowings less
investments and cash and cash equivalents) to equity ratio is used to monitor capital.

* As the Company is having negative networth as on 31st March, 2024 & 31st March, 2023, debt equity ratio
cannot be computed.

40 In an earlier year the Company had received entire sale consideration in respect of sale of Kinalur Estate. The
process of registration of Land in the name of few buyers are in the process of completion.

41 The Company has not recognized deferred tax assets during the year in absence of reasonable certainity of
future taxable income.

42 The Networth of the Company has been fully eroded. During the year, the Company has forayed into new
business of assiting clients in developing their business in respect of which commission income of Rs. 114.01
lakhs has been received. Further, the Company is developing its land assets in Goa. Hence, going concern status
of the Company is maintained.

43 The previous year figures have been regrouped / rearranged wherever considered necessary.

As per our Report annexed For and on behalf of Board of Directors

For and on behalf of

J K V S & CO

Chartered Accountants Hemant Bangur C.P. Sharma

Firm Regn. No. 318086E (DIN : 00040903) (DIN :00258646)

Non Executive Director Wholetime Director

Utsav Saraf

Partner Arun Kumar Ruia M. Kandoi

Membership No. 306932 Chief Financial Officer Company Secretary

Place: Kolkata

Dated : 21st May, 2024

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Mar 31, 2015

Note : 1

a) There is no movement in the equity shares outstanding at the beginning and at the end of the year.

b) The Company has only one class of issued shares i.e. Equity Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

c) No Equity Shares have been reserved for issue under options and contracts/commitments for the sale of shares/ disinvestment as at the Balance Sheet date

d) No shares have been bought back by the Company during the period of 5 years preceding the date as at which the Balance Sheet is prepared.

e) No securities convertible into Equity/Preference shares issued by the Company during the year.

f) No calls are unpaid by any Director or Officer of the Company during the year.

Note : 2

(Amount in Rs.)

2014-15 2013-14

A. Contingent Liabilities not provided for in respect of :

a) Claims against the company not acknowledged as debts:

- Central Sales Tax 213,331 213,331

Note : 3

A. During the year the Company has recognized the profit on sale of a property situated at Goa as necessary formalities with respect to its transfer has been duly completed.

B. The management is of the view that the Goa property sold by the Company during the year is Agricultural Land. As per the provisions of the Income Tax Act, 1961 Capital Gains Tax is not applicable on the profits arising from the sale of Agricultural Land, hence no provision for Income Tax is required to be made on the said profits.

C. In an earlier year the Company had received entire sale consideration in respect of sale of Kinalur Estate and recognized the profit on its sale in accordance with the terms of the revised settlement agreement. Except in certain cases, the process of registration of Land in the name of the respective buyers has also been completed.

D. The Company has not recognized deferred tax assets during the year in absence of virtual certainity of future taxable income.

E. Related party disclosures as required by AS 18 "Related Party Disclosures" are given below :

Relationship:

a) Company having significant influence in TCMEIL (by virtue of having more than 20% voting rights) Joonktollee Tea & Industries Ltd. (JTIL)

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Mar 31, 2014

A) There is no movement in the equity shares outstanding at the beginning and at the end of the year.

b) The Company has only one class of issued shares i.e. Equity Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

c) In view of the withdrawal of nominee directors from the Board of the Company by M/s Joonktollee Tea & Industries Ltd. (JTIL), the Company ceased to be a Board controlled subsidiary of JTIL u/s 4(1)(a) of the Companies Act, 1956, w.e.f. 7th October, 2013.

e) No Equity Shares have been reserved for issue under options and contracts/commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

f) No shares have been bought back by the Company during the period of 5 years preceding the date as at which the Balance Sheet is prepared.

g) No securities convertible into Equity/Preference shares issued by the Company during the year. h) No calls are unpaid by any Director or Officer of the Company during the year.

B. Pending dispute for sale of Kinalur Estate was finally settled during the year with the intervention of the Kerala Govt., and accordingly, the Company entered into a revised memorandum of understanding with the legal heirs of Mr. P. K. C. Ahammed Kutty and other sub-purchasers revising the earlier terms and conditions.

During the year the Company has received entire sale consideration in respect of sale of Kinalur Estate and recognized the profit on its sale in accordance with the terms of the revised settlement agreement. Except in certain cases, the process of registration of Land in the name of the respective buyers has also been completed.

C. Finance Cost of the year includes Rs. 12,15,53,486 towards interest expense from 1st October, 2008 till the date of repayment of secured loan obtained from Joonktollee Tea & Industries Ltd. in an earlier year. The interest amount was recognized / paid on triggering of the parameters prescribed in the agreement.

D. The management is of the view that the Kinalur Estate Land sold by the company during the year is Agricultural Land. This view has also been confirmed by the Income Tax Appellate Tribunal, Kochi in its order pertaining to profits arising on sale of a small portion of the Kinalur Estate Land by the company in an earlier year. As per the provisions of the Income Tax Act, 1961, Capital Gains Tax is not applicable on the profits arising from the sale of Agricultural Land, hence no provision for Income Tax is required to be made on the said profits.

E. The Rubber wood Factory has not been in operation for nearly 16 years pursuant to notice received from the Deputy Conservator of Forests (Protection), Trivandrum. The representation made earlier to the Chief Divisional Officer is still pending. The Company is making fresh representation to the Forest Officials concerned for withdrawal of ban imposed on the Company, as the same is not applicable in our case.

F. Disclosure of related party transaction as per AS 18 "Related Party Disclosures" prescribed in"The Accounting Standards Rules, 2006."

Relationship :

a) Company having substantial interest in CMEI (by virtue of having more than 20% voting rights) Joonktollee Tea & Industries Ltd. (JTI) (**)

(**) Upto 7th October, 2013, JTI was also the Holding Company

b) Key Managerial Personnel (KMP) and Relatives

c) Other Enterprises over which the Key Managerial Personnel / Relatives are able to exercise significant influence : Madhav Trading Corporation Ltd. (MTCL) Kherapati Vanijya Ltd. (KVL) Kettlewell Bullen Company Ltd. (KBCL) Gloster Ltd. (GL)

J. The previous year figures have been regrouped / rearranged wherever considered necessary.

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Mar 31, 2013

A) There is no movement in the equity shares outstanding at the beginning and at the end of the year.

b) The Company has only one class of issued shares i.e. Equity Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

c) By virtue of control over the Board of the Company, Joonktollee Tea & Industries Limited is the holding Company of the Company.

d) Details of shareholders holding more than 5% shares in the Company :

e) No Equity Shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment as at the Balance Sheet date.

f) No shares have been bought back by the Company during the period of 5 years preceding the date as at which the Balance Sheet is prepared.

g) No securities convertible into Equity/Preference shares issued by the Company during the year.

h) No calls are unpaid by any Director or Officer of the Company during the year.

Note : The Memorandum of Understanding for sale of Kinalur Estate to Mr. P. K. C. Ahammed Kutty has been terminated by the Company and other statutory bodies in earlier years due to non-fulfillment of obligations on his part. As mentioned in previous year, the Hon''ble High Court of Kerala vide its Order and Judgment both dated 25th November, 2009 dismissed the suit and closed all interlocutory applications in respect of Kinalur Estate of the Company and accordingly the Receiver appointed was also released. Aggrieved by the High Court Order, some of the Applicants have filed appeal before the Division Bench of the High Court. Also some other applicants have filed suit before the Sub-Court, Koyilandy and Kozhikode against Mr. P. K. C. Ahammed Kutty in respect of Kinalur estate impleading the Company.

Pending finalization of the matter the amount so received continues to be shown under ''Other Current Liabilities''.

Note : As the green leaf is harvested in the Company''s own garden as Agriculture Produce involving integrated activities of Nursery, Cultivation, growth etc and utilised in the manufacture of tea, its value at the intermediate stage could not be ascertained.

A. Pursuant to the Scheme of Arrangement (the Scheme) between "The Cochin Malabar Estate and Industries Limited" (herein after referred as Company) and "Joonktollee Tea & Industries Limited" (herein after referred as JTIL) as approved by Shareholders of the respective companies on 5th April 2012 and sanctioned by the Hon''ble High Court at Calcutta on 3rd December 2012 under the provisions of The Companies Act, 1956;

- The Cochin Plantation division of the Company (herein after referred as CPD) has been demerged from the Company and merged with JTIL w.e.f. 01.04.2011 (the appointed date).

The Certified copy of the order of Hon''ble High Court at Calcutta has been filed with the Registrar of the Companies, West Bengal on 15th January 2013. The accounts of the Company for the year have been prepared by giving the effect of the scheme. According to the scheme, with effect from the appointed date, the company has carried out all business activities of CPD in trust till the scheme becomes effective.

The Salient Features of the scheme are as under:

I. The Company is a subsidiary of JTIL and engaged mainly in the business of cultivation & manufacture of Rubber and Tea. The CPD of the Company is consisting of Chemoni, Pudukad & Eichipara Rubber Estate & Factory, Sampaji Rubber Estate (under legal proceedings) and Pullikanam Tea Estate & Factory. As segregated by the management of the JTIL and the Company, w.e.f. from 01.04.2011 (the appointed date) all the assets and liabilities of CPD have been demerged at their respective book values on the basis of the audited accounts of the Company.

II. In terms of the Scheme, JTIL shall issue 1 (one) equity shares of Rs. 10/- (ten) each fully paid up, ranking pari passu, for 2 (two) equity share of Rs. 10/- (ten) each fully paid up held by the shareholders in the Company.

III. In terms of Accounting standard 14 "Accounting for Amalgamation" excess value of Assets over Liability of CPD amounting to Rs. 78,698,646/- has been adjusted with Debit balance of Profit & Loss Surplus.

B. The Rubber Wood Factory has not been in operation for nearly 15 years pursuant to notice received from the Deputy Conservator of Forests (Protection), Trivandrum. The representation made earlier to the Chief Divisional Officer is still pending. The Company is making fresh representation to the Forest Officials concerned forwithdrawal of ban imposed on the Company, as the same is not applicable in our case.

C. Disclosure of related party transaction as per AS 18 "Related Party Disclosures" prescribed in" The Accounting Standards Rules, 2006."

Relationship :

a) Holding Company :

Joonktollee Tea & Industries Ltd. (JTI)

b) Subsidiary Company :

Cochin Estates Limited (CEL) (Upto 12.02.2013)

c) Other Enterprises over which the Key Managerial Personnel/Relatives are able to exercise significant influence :

Credwyn Holdings (India) Pvt. Ltd. (CHI)

Wind Power Vinimay Pvt. Ltd. (WPV)

PDGD Investments & Trading Pvt. Ltd. (PDGD)

Kettlewell Bullen & Co. Ltd. (KBC)

Kherapati Vanijya Ltd. (KVL)

d) Key Managerial Personnel :

Mr. Hemant Bangur - Chairman

D. The financial statements have been drawn up giving effect to the Scheme of Arrangement effective from 01-04-2011 as outlined in Note No.2.23B above. Hence, the current year''s figures are not comparable with those of the previous year.

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Mar 31, 2010

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.

2. Borrowing Costs

Borrowing costs relating to acquisition/construction of qualifying assets are capitalised 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 costs are charged to revenue.

3. Segment Reporting

As the entire operation of the Companys products relate to "Plantation" as single primary reportable segment, in the opinion of management no separate segment reporting is required under Accounting Standard (AS-17) issued by Institute of Chartered Accountants of India.

4. Cash Flow Statement

Cash Flow Statement has been prepared in accordance with the Indirect Method prescribed in the Accounting Standard 3 issued by the Institute of Chartered Accountants of India.

5. The Rubber Wood Factory has not been in operation for nearly 12 years pursuant to notice received from the Dy. Conservator of Forests (Protection), Trivandrum.The representation made earlier to the Chief Divisional Officer is still pending.The Company is making fresh representation to the Forest Officials concerned for withdrawal of Ban imposed on the Company, as the same is not applicable in our case.

6. The Company has received notice from the Directorate of Revenue Intelligence prohibiting any alteration/disposal of certain assets of CIF value approximately Rs. 1.10 Crores imported for Rubber wood project, consequent to non-fulfillment of export obligation. Demand for payment of balance Customs Duty has been fully paid. The Company has filed a writ petition before the Honble High Court of Madras against the levy of Interest of Rs. 30,29,925/- by the Department.

7. The Honble High Court of Kerala vide its order and judgement both dated 25th November, 2009 dismissed the suit and closed all Interlocutory Applications in respect of Kinalur Estate of the Company and accordingly the Receiver appointed was also released.

The Memorandum of Understanding for sale of Kinalur Estate to Mr. P.K.C. Ahammed Kutty has been terminated by the Company and other statutory bodies in earlier years due to non-fulfilment of obligations on his part. Pending finalization of the matter the amount so received continues to be shown under Current Liabilities.

8. Sundry Debtors/Creditors, Loans and Advances and Deposits include certain overdue and unconfirmed balances. However, in the opinion of the manage- ment, these current assets would, in the ordinary course of business, realize the values stated in the accounts.

9. In view of no operations in Rubber Wood Division and Kinalur Estate of Rubber Division, depreciation amounting to Rs.13.84 Lacs has not been provided in the accounts.

10. The closing stock of Finished Goods as at 31st March, 2010 was valued at the lower of cost and net realizable value. These were hitherto being valued at since realizable value. Due to change in the method of valuation, the closing stock of Finished Goods disclosed in these accounts is lower by Rs.57.52 Lacs.

11. Replantation expenditure incurred on area under cultivation is considered as revenue expenditure as per the policy of the Company consistently followed. During the year the Company has taken up a plan to replant over the next seven years, a substantial part of the Tea Estate abandoned in earlier years as the existing Tea plants could not be revived. Expenditure of Rs.99.58 Lacs incurred during the year as per the said plan has been capitalized as the benefit of the same shall accrue over a very long period of time.

12. Disclosure of related party transaction as per AS 18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India.

Relationships :

a) Holding Company:

Joonktollee Tea & Industries Ltd.

b) Other Enterprises over which the Key Managerial Personnel/Relatives are able to exercise significant influence :

Credwyn Holdings (India) Pvt. Ltd.

Wind Power VinimayPvt. Ltd.

PDGD Investments & Trading Pvt. Ltd.

c) Key Managerial Personnel

Mr. Hemant Bangur - Chairman

13. (a) There are no small-scale industries to which the Company owes dues, which were outstanding for more than 30

days as on the balance sheet date. The amount due to small scale industrial undertaking has been determined to the extent such parties has been identified on the basis of information available with the Company. This has been relied upon by Auditors.

(b) The Company has not received any intimation from "Suppliers" regarding their status Under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to the amounts unpaid as at the year end together with interest paid/payable as required under said Act could not be furnished.

14. The Company has written back liabilities and credit balances no longer required amounting to Rs. 2,91,81,672/- during the year. The Company also written off Bad debts/Advances no longer required amounting to Rs. 9,74,766/- and also written of Fixed Assets amounting to Rs. 1,13,78,652/- during the year. In the opinion of the management the amounts are not payable/receivable/realisable and hence treated as income/expenses of the current year.

15. The comparative figure for the previous year have been regrouped/ re-arranged wherever necessary to conform to the classification for the year.