Notes to Accounts of Diana Tea Company Ltd.

Mar 31, 2025

J) Provision

Provisions are recognised in the balance sheet when the Company has a present obligation (legal or constructive) as
a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which
can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the
present obligation at the balance sheet date. Where the time value of money is material, provisions are measured on
a discounted basis.

Constructive obligation is an obligation that derives from an entity''s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the
entity has indicated to other parties that it will accept certain responsibilities and;

(b) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge
those responsibilities.

K) Onerous contracts

A provision for onerous contracts is recognised when the expected benefits to be derived by the Company from a
contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured
at the present value of the lower of the expected cost of terminating the contract and the expected net cost of
continuing with the contract. Before a provision is established, the Company recognises any impairment loss on the
assets associated with that contract.

L) Income taxes

Tax expense for the year comprises current and deferred tax. The tax currently payable is based on taxable profit for
the year. Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items
of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable
or deductible. The Company''s liability for current tax is calculated using tax rates and tax laws that have been enacted
or substantively enacted by the end of the reporting period.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying values of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is
accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable
temporary differences. In contrast, deferred tax assets are only recognised to the extent that it is probable that future
taxable profits will be available against which the temporary differences can be utilised.

The carrying value of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the
asset is realised based on the tax rates and tax laws that have been enacted or substantially enacted by the end of
the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Company expects, at the end of the reporting period, to cover or settle the
carrying value of its assets and liabilities.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and
there are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.

Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except when they
relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is
also recognised in other comprehensive income or directly in equity.

Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is
likely to give future economic benefits in the form of availability of set off against future income tax liability. MAT is
recognised as deferred tax assets in the Balance Sheet when the asset can be measured reliably and it is probable that
the future economic benefit associated with the asset will be realised.

M) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair
value of the consideration received or receivable net of discounts, taking into account contractually defined terms and
excluding taxes or duties collected on behalf of the government.

Sale of Goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred
to the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the amount due,
associated costs or the possible return of goods.

Interest Income

Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the effective
interest rate applicable.

N) Borrowing Costs

Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the
cost of those assets, until such time as the assets are substantially ready for the intended use or sale.

O) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term highly liquid investments with original maturities of
three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the
balance sheet.

P) Trade Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment, if any.

Q) Segment Reporting

Identification of Segments

The Company has identified Tea products as its sole operating segment and the same has been treated as primary
segment. The Company''s secondary geographical segments have been identified based on the location of customers
and then demarcated into Indian and overseas revenue earnings.

R) Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted
earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average
number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

S) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. The company does not recognize a contingent liability but discloses its existence in the financial statements.

(b) Terms/rights attached to equity shares

(i) The Company has only one class of equity shares having per value of ^5/- per share. Each holder of equity shares
entitled to one vote per share. The Company declare and pays dividend in Indian Rupees. The Dividend ifany
proposed by Board of Directors is subject to the approval of the share holders in the ensuing Annual General
Meeting.

(ii) In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining
assets of the Company. The distribution will be in proportion to the number of equity shares held by the
shareholders.

(c) For the period of five years immediately preceding the date at which the Balance Sheet is prepared, the Company has
not allotted any shares other than for cash, ii) not allotted any shares by way of Bonus, iii) not bought back any shares.

# Term loans from banks includes loan from Punjab National Bank of India repayable upto 2034-35 amounting to ^1067.11
Lakhs (PY ^1032.32 Lakhs), bearing interest @ RLLR (8.50%). The said term loan is secured by first charge on the current
assets of the company and also secured by Pari Pasu first charge on all immovable assets of the company both present and
future excluding specific items of assets charged in favour of lenders or suppliers providing finance for the acquisitions
thereof and also personal guarantee of one director of the company.

## Vehicle loan includes loan from Punjab National Bank against vehicles repayable in equated periodic instalments as per
the scheme of loan. The loan are secured by hypothecation of respective vehicles.

('' in Lakhs)

27.1 Corporate social responsibility (CSR) expenditure

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture,
healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, and rural development projects.
The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies
Act, 2013:

b) Defined Benefit Plan - Gratuity

The Gratuity scheme is a final salary defined benefit plan, that provides for lump sum payment at the time of separation;
based on scheme rules the benefits are calculated on the basis of last drawn salary and the period of service at the
time of separation and paid as lump sum. There is a vesting period of 5 years.

Associated Risks :

Where there is a benefit being promised and benefit being provided, there will always be some uncertainty for the
benefit provider and the benefit recipient.
i. Risk to the Beneficiaries (i.e. for Employees)

Insufficient funds: The greatest risk to the beneficiary is that there are insufficient funds available to provide the
promised benefits. This may be due to:

-The insufficient funds set aside, i.e. underfunding
-The insolvency of Employer

-The holding of investments which are not matched to the liabilities; or
-A combination of these events

ii. Risk to the Benefit provider (i.e. for employer)

Parameter Risk: Actuarial valuation is done on basis of some assumptions like salary inflation, discount rate and
withdrawal assumptions. In case the actual experience varies from the assumptions, fund may be insufficient to
pay off the liability.

Risk of Illiquid Assets: Another risk is that the funds, although sufficient, are not available when they are required
to finance the benefits. This may be due to assets being locked for longer period or in illiquid assets.

Risk of Benefit Change: There may be a risk that a benefit promised is changed or is changeable within the terms
of the contract.

Assets Liability Mismatching Risk: ALM risk arises due to mismatch between assets and liabilities either due to
liquidity or changes in interest rates or due to different duration. ('' in Lakhs)

Party_Relationship_

I. Holding Company

A. Diana Capital Limited

II. Key Managerial Personnel

A. Mr. Sandeep Singhania Managing Director

B. Mrs. Sarita Singhania Whole Time Director

C. Mr. Devang Singhania Whole Time Director (From 11.11.2024)

D. Ms. Kriti Jain Company Secretary (ceased as CS from 01.07.2023)

E. Mr. Ravi Narayan Company Secretary (from 28.09.2023 to 06.10.2023)

F. Mrs. Namrata Saraf Company Secretary (from 02.01.2024)

III. Related Party

A. Singhania Builders Limited Enterprise owned and influenced by key managerial personnel or their

relatives

B. Singhania Commercial Enterprise owned and influenced by key managerial personnel or their

Corporation relatives

C. Mr. Devang Singhania Relative of KMP (upto 10.11.2024)

D. Ms. Shachi Singhania Relative of KMP

E. Ms. Satakshi Singhania Relative of KMP

F. Mrs. Varda Singhania Kumar Relative of KMP

37. Details of Loans and Guarantees given covered under section 186(4) of the Companies Act, 2013:

The Company has made investments in the shares of different companies and given loans to different parties which
are general in nature. The loans given are interest bearing which are not lower than the prevailing yield of related
government security close to the tenure of the respective loans. Further, the company has not given any guarantee or
provided any security.

38. The company has provided deferred tax liabilities and tax effect of the changes in OCI in the Current Year for ^ 26.36
Lakhs and ^ 0.14 Lakhs respectively (PY deferred tax asset and tax effect of the changes in OCI in the Current Year for
^ 30.96 Lakhs and ^ 11.53 Lakhs respectively). The net deferred tax asset including MAT as at 31.03.2025 is amounting
to Rs. 39.73 Lakhs. The management is of the view that future taxable income will be available to realise/ adjust such
deferred tax assets.

43 Financial risk management objectives and policies

~ The Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables, security
deposits, employee liabilities, unpaid and finance lease obligation. The main purpose of these financial liabilities is
to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal
financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its
operations.

~ The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees
the management of these risks. The Company''s senior management is supported by a Risk Management Compliance
Board that advises on financial risks and the appropriate financial risk governance framework for the Company. The
financial risk committee provides assurance to the Company''s senior management that the Company''s financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company''s policies and risk objectives. It is the Company''s policy that no trading
in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for
managing each of these risks, which are summarised below.

a) Market risk

~ Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price
risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and
borrowings and deposits.

~ The sensitivity analyses in the following sections relate to the position as at 31 March 2025 and 31 March 2024.

~ The sensitivity analyses have been prepared on the basis that the amount of debts.

~ The following assumptions have been made in calculating the sensitivity analysis:

~ The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This
is based on the financial assets and financial liabilities held at 31st March 2025 and 31st March 2024.

in Lakhs)

b) Interest rate risk

~ Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates
primarily to the Company''s long-term debt obligations with floating interest rates.

~ The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company''s interest
rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial
instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.

~ The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This
calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk
exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt
outstanding during the period.

~ The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion
of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected
through the impact on floating rate borrowings, as follows:

c) Credit risk

~ Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange
transactions and other financial instruments.

~ Customer credit risk is managed by each divisions subject to the Company''s established policy, procedures and
control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and
any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

~ The risk relating to trade receivables is shown under note no 10.

d) Liquidity risk

~ Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

~ The Company has obtained fund and non-fund based working capital lines from various banks. The Company''s
objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,
bank loans, buyer''s credit and other means of borrowings. The company invests its surplus funds in liquid schemes of
mutual funds, which carry no/low mark to market risk.

~ The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The
Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled
over with existing lenders.

e) Agricultural Risk

~ Cultivation of tea being an agricultural activity, there are certain specific financial risks. These financial risks arise
mainly due to adverse weather conditions, logistic problems inherent to remote areas, and fluctuation of selling price
of finished goods (tea) due to increase in supply/availability.

The Company manages the above financial risks in the following manner :

~ Sufficient inventory levels of agro chemicals, fertilisers and other inputs are maintained so that timely corrective
action can be taken in case of adverse weather conditions.

~ Slightly higher level of consumable stores viz. packing materials, coal and HSD are maintained in order to mitigate
financial risk arising from logistics problems.

~ Sufficient working-capital-facility is obtained from banks in such a way that cultivation, manufacture and sale of tea
is not adversely affected even in times of adverse conditions.

f) Other Risk-Impact of the COVID 19 pandemic

The Company has assessed and considered the impact of the ongoing Covid-19 pandemic on carrying amounts of
Property Plant & Equipment, Investments, Trade receivables, Inventories, other assets and its business operations
including all relevant internal and external information available up to the date of approval of these financial results.
Basis such evaluation, the management does not expect any adverse impact on its future cash flows, its liquidity
position and shall be able to continue as a going concern. However, the eventual outcome of the impact of the
Covid-19 pandemic may be different from those estimated as on the date of approval of these financial results owing
to the nature and duration of the pandemic.

44 Financial Instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on
which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity
instrument are disclosed in note 2 (I) to the financial statements.

Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either
observable or unobservable and consists of the following three levels:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can
access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

The investments included in Level 2 of fair value hierarchy have been valued using quotes available for similar assets
and liabilities in the active market. The investments included in Level 3 of fair value hierarchy have been valued using
the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because
there is a range of possible fair value measurements and the cost represents estimate of fair value within that range.

Notes:

i) There have been no transfers between level 1 and level 2 for the years ended March 31, 2025 and March 31, 2024.

45 The Company does not have any Benami Property. Further there are no proceedings initiated or are pending against
the Company for holding any Benami Property under the prohibition of Benami Property Transaction Act., 1988 and
rules made there under.

46 The Company does not have transactions with any Struck off Company''s during the year.

47 The Company has not traded or invested in Crypto Currency or virtual Currency during the financial year.

48 The Company has not advanced or loaned or invested funds to any other person(s) or entity(s) including foreign
entities (intermediaries) with the understanding that the intermediaries shall:

a. Directly or indirectly lend or invest in other persons or entities in any manner what so ever 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.

49 The Company has not received any fund from any person(s) or entity(s), including foreign entities ( funding party) with
understanding ( whether recorded in writing or otherwise) that the Company will:

a. Directly or indirectly lend or invest in other persons or entities identified in any manner what so ever 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.

50 The Company has not done any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the Tax assessments under the Income Tax Act.,1961

51 The Company has not been declared as a wilful defaulter by any Bank or Financial Institution or Government or any
Government Authority.

52 The Company has not filed any scheme of arrangements in terms of Section 230 to 237 of the Company''s Act., 2013
with any competent Authority.

53 Figures for the previous year have been regrouped, rearranged and recast wherever necessary.

In terms of our report of even date For and on behalf of the Board

For B. Nath & Company

Chartered Accountants Sd/- Sd/-

Firm Registration No. 307057E Sandeep Singhania Sarita Singhania

Managing Director Whole Time Director & CFO

Sd/- (DIN : 00343837) (DIN : 00343786)

Gaurav More

Partner Sd/-

Membership No. 306466 Namrata Saraf

Place: Kolkata Company Secretary

Date :May 29, 2025 (Membership No.A40824)

---

Mar 31, 2024

(b) Terms/rights attached to equity shares

(i) The Company has only one class of equity shares having per value of ^5/- per share. Each holder of equity shares entitled to one vote per share. The Company declare and pays dividend in Indian Rupees. The Dividend if any proposed by Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting.

(ii) In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) For the period of five years immediately preceding the date at which the Balance Sheet is prepared, the Company has i) not allotted any shares other than for cash, ii) not allotted any shares by way of Bonus, iii) not bought back any shares.

# Term loans from banks includes loan from Punjab National Bank of India repayable upto 2034-35 amounting to ^ 1032.32 Lakhs (PY ^ 1191.65 Lakhs), bearing interest @ RLLR 9.30%. The said term loan is secured by first charge on the current assets of the company and also secured by Pari Pasu first charge on all immovable assets of the company both present and future excluding specific items of assets charged in favour of lenders or suppliers providing finance for the acquisitions thereof and also personal guarantee of one director of the company.

## Vehicle loan includes loan from Punjab National Bank against vehicles repayable in equated periodic instalments as per the scheme of loan. The loan are secured by hypothecation of respective vehicles.

* Cash Credit facilities are secured by first charge on current assets of the company mainly, stock of raw materials, semifinished and finished goods, stores and spares, book debts, receivables and also secured by Pari Pasu first charge on all

immovable assets of the company both present and future, excluding specific items of assets charged/ to be charged in favour of lenders or suppliers providing finance for the acquisition thereof and also personal guarantee of one director of the company and bears interest @8.80% per annum.

** Includes loan from Holding company Diana Capital Limited bearing interest @10% per annum which is payable on demand and from one Director which is interest free and repayable on demand.

healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, and rural development projects. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

('' in Lakhs)
2^ CONTINGENT LIABILITIES
		2023-24	2022-23
Bank Guarantee		135.17	154.71
3^ ASSETS PLEDGED AS SECURITY
Particulars	Notes	As at 31st March, 2024	As at 31st March, 2023
The carrying amounts of assets pledged as security for current and non current borrowings are:
ASSETS
Non-Current Assets
(a) Property, plant and equipment	3.1	7,106.69	6,796.36
(b) Financial Assets :
(i) Other Financial Assets		57.22	66.27
Total Non-Current Assets pledged as security		7,163.91	6,862.63
Current Assets
(a) Inventories	9	866.78	758.07
(b) Financial assets:
(i) Trade receivables	10	74.01	265.34
Total Current Assets pledged as security		940.79	1,023.41
Total Assets pledged as security		8,104.70	7,886.04
3^ CAPITAL COMMITMENTS
As at 31st March, 2024, the company has commitments of ^ 285.01 Lakhs (Previous year ^ 62.78 Lakhs).
3^ EMPLOYEE BENEFITS
a) Defined Contribution Plan
Particulars		2023-24	2022-23
Employer''s Contribution to Provident Fund		327.01	315.48
Employee''s Contribution to Provident Fund		327.01	315.48

b) Defined Benefit Plan - Gratuity

The Gratuity scheme is a final salary defined benefit plan, that provides for lump sum payment at the time of separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the period of service at the time of separation and paid as lump sum. There is a vesting period of 5 years.

Associated Risks :

Where there is a benefit being promised and benefit being provided, there will always be some uncertainty for the benefit provider and the benefit recipient.

i. Risk to the Beneficiaries (i.e. for Employees)

Insufficient funds: The greatest risk to the beneficiary is that there are insufficient funds available to provide the promised benefits. This may be due to:

- The insufficient funds set aside, i.e. underfunding

- The insolvency of Employer

- The holding of investments which are not matched to the liabilities; or

- A combination of these events

ii. Risk to the Benefit provider (i.e. for employer)

Parameter Risk: Actuarial valuation is done on basis of some assumptions like salary inflation, discount rate and withdrawal assumptions. In case the actual experience varies from the assumptions, fund may be insufficient to pay off the liability.

Risk of Illiquid Assets: Another risk is that the funds, although sufficient, are not available when they are required to finance the benefits. This may be due to assets being locked for longer period or in illiquid assets.

Risk of Benefit Change: There may be a risk that a benefit promised is changed or is changeable within the terms of the contract.

Assets Liability Mismatching Risk: ALM risk arises due to mismatch between assets and liabilities either due to liquidity or changes in interest rates or due to different duration.

34. Segment Information:

The Company is engaged in the business of integrated activities of manufacture and sale of tea, predominantly in the domestic market. Hence there are no disclosures to be made under Ind AS -108, other than those already provided in the financial statements.

37. Details of Loans and Guarantees given covered under section 186(4) of the Companies Act, 2013:

The Company has made investments in the shares of different companies and given loans to different parties which are general in nature. The loans given are interest bearing which are not lower than the prevailing yield of related government security close to the tenure of the respective loans. Further, the company has not given any guarantee or provided any security.

38. The company has provided deferred tax liabilities and tax effect of the changes in OCI in the Current Year for ^ 30.96 Lakhs and ^ 11.53 Lakhs respectively (PY deferred tax asset and tax effect of the changes in OCI in the Current Year for ^ 95.83 Lakhs and ^ 3.97 Lakhs respectively). The net deferred tax asset including MAT as at 31.03.2024 is amounting to ^ 14.71 Lakhs. The management is of the view that future taxable income will be available to realise/ adjust such deferred tax assets.

~ The Company''s capital management is intended to create value for shareholders by facilitating the meeting of longterm and short-term goals of the Company.

~ The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/ short-term borrowings. The Company''s policy is aimed at combination of short-term and long-term borrowings.

~ The Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables, security deposits, employee liabilities, unpaid and finance lease obligation. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations.

~ The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a Risk Management Compliance Board that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

a) Market risk

~ Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and deposits.

~ The sensitivity analyses in the following sections relate to the position as at 31 March 2024 and 31 March 2023.

~ The sensitivity analyses have been prepared on the basis that the amount of debts.

~ The following assumptions have been made in calculating the sensitivity analysis:

~ The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31st March 2024 and 31st March 2023.

b) Interest rate risk

~ Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

~ The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company''s interest rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.

~ The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

~ The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

c) Credit risk

~ Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

~ Customer credit risk is managed by each divisions subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

~ The risk relating to trade receivables is shown under note no 10.

d) Liquidity risk

~ Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

~ The Company has obtained fund and non-fund based working capital lines from various banks. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, buyer''s credit and other means of borrowings. The company invests its surplus funds in liquid schemes of mutual funds, which carry no/low mark to market risk.

~ The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

e) Agricultural Risk

~ Cultivation of tea being an agricultural activity, there are certain specific financial risks. These financial risks arise mainly due to adverse weather conditions, logistic problems inherent to remote areas, and fluctuation of selling price of finished goods (tea) due to increase in supply/availabMity.

The Company manages the above financial risks in the following manner :

~ Sufficient inventory levels of agro chemicals, fertilisers and other inputs are maintained so that timely corrective action can be taken in case of adverse weather conditions.

~ Slightly higher level of consumable stores viz. packing materials, coal and HSD are maintained in order to mitigate financial risk arising from logistics problems.

~ Sufficient working-capital-facility is obtained from banks in such a way that cultivation, manufacture and sale of tea is not adversely affected even in times of adverse conditions.

f) Other Risk-Impact of the COVID 19 pandemic

The Company has assessed and considered the impact of the ongoing Covid-19 pandemic on carrying amounts of Property Plant & Equipment, Investments, Trade receivables, Inventories, other assets and its business operations including all relevant internal and external information available up to the date of approval of these financial results. Basis such evaluation, the management does not expect any adverse impact on its future cash flows, its liquidity position and shall be able to continue as a going concern. However, the eventual outcome of the impact of the Covid-19 pandemic may be different from those estimated as on the date of approval of these financial results owing to the nature and duration of the pandemic.

44. Financial Instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 (I) to the financial statements.

Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

The investments included in Level 2 of fair value hierarchy have been valued using quotes available for similar assets and liabilities in the active market. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a range of possible fair value measurements and the cost represents estimate of fair value within that range.

The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured at fair value on a recurring basis (but fair value disclosure are required):

i) There have been no transfers between level 1 and level 2 for the years ended March 31, 2024 and March 31, 2023.

45. The Company does not have any Benami Property. Further there are no proceedings initiated or are pending against the Company for holding any Benami Property under the prohibition of Benami Property Transaction Act., 1988 and rules made there under.

46. The Company does not have transactions with any Struck off Company''s during the year.

47. The Company has not traded or invested in Crypto Currency or virtual Currency during the financial year.

48. The Company has not advanced or loaned or invested funds to any other person(s) or entity(s) including foreign entities (intermediaries) with the understanding that the intermediaries shall:

a. Directly or indirectly lend or invest in other persons or entities in any manner what so ever 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.

49. The Company has not received any fund from any person(s) or entity(s), including foreign entities ( funding party) with understanding ( whether recorded in writing or otherwise) that the Company will:

a. Directly or indirectly lend or invest in other persons or entities identified in any manner what so ever 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.

50. The Company has not done any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the Tax assessments under the Income Tax Act., 1961.

51. The Company has not been declared as a wilful defaulter by any Bank or Financial Institution or Government or any Government Authority.

52. The Company has not filed any scheme of arrangements in terms of Section 230 to 237 of the Company''s Act., 2013 with any competent Authority.

53. Figures for the previous year have been regrouped, rearranged and recast wherever necessary.

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Mar 31, 2017

1. 89,94,600 Equity Shares of Rs. 5/- each have been allotted as fully paid-up Bonus Shares by way of Capitalization of Share Premium Account.

2. 9,24,300 Shares of Rs. 5/- each were allotted as fully paid-up Bonus Shares by way of Capitalization of General Reserve.

3. 74,520 Shares of Rs. 5/- each, fully paid were issued as pursuant to contract without payment being received in cash.

4. 81,79,340 Shares of Rs. 5/- each, fully paid-up are held by Holding Company Diana Capital Limited.

5. There is no movement in share capital as compared to previous year.

6. Terms/rights attached to equity shares :

7. The Company has only one class of equity shares having par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend if any proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

8. The amount of per share dividend recognized as distributions to equity shareholders is Rs. 0.25 per share (31st March, 2016 : Rs. 0.25 per share).

9. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

10. Capital Commitments

As at 31st March 2017, the Company has commitments of Rs. 201.57 Lakhs net of advances relating to estimated amount of contracts to be executed on capital account and not provided for.

11. Depreciation as calculated includes additional charges of Rs. 0.50 Lakhs on revalued assets and an amount equivalent to the additional charges has been transferred to Statement of Profit and Loss from Capital Reserve (Revaluation of Fixed Asset) such transfer according to an authoritative professional view being acceptable for the purpose of the Companies annual accounts.

12. In accordance with the AS-28 on Impairment of Assets, the Company has assessed as on the Balance Sheet date, whether there are any indication (listed in paragraphs 8 to 10 of the standard) with regard to impairment of any assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of accounts.

13. The Company has not received any information from its suppliers regarding registration under "The Micro, Small and Medium Enterprises Development Act, 2006". Hence, the information required to be given in accordance with Section 22 of the said Act, is not ascertainable. Hence, not disclosed;

14. However Sundry Creditors includes Rs. NIL (Previous year Rs. 1.99 Lakhs) due to Small Scale Industrial undertakings to the extent such parties have been identified from the available documents/information.

15. No interest was paid by the Company in terms of section 16 of MSMED Act during the Period.

16. There was no interest for delay in making payment beyond appointed date.

17. There is no interest accrued and remaining unpaid beyond the appointed date.

18. No interest is remaining due and payable even in succeeding years, until such that when the interest dues as above are actually paid to Micro, Small and Medium Enterprises for the purpose of disallowance as a deductible expenditure under section 23 of the aforesaid Act.

19. Defined Benefit Plan - Gratuity

No provision has been made in respect of present liabilities for future payment of gratuity to the staff and workers, which will be charged to accounts as and when paid. According to actuarial valuation under Revised AS-15, the liability for gratuity obligation to staff and Workers as on 31st March, 2017 is Rs. 1363.95 Lakhs (Previous Year Rs. 1065.32 Lakhs) and the net liability is Rs. 899.62 Lakhs (Previous Year Rs. 636.81 Lakhs).

The Company extends defined benefit plan in the form of gratuity to employees. Contribution to gratuity is made to Life Insurance Corporation of India, HDFC Standard Life Insurance Company Ltd., SBI Life Insurance Company Ltd, and Birla Sunlife Insurance Company Ltd. and Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited in accordance with the scheme framed by the Corporation. The details are as under:

20. In accordance with Accounting Standard - 13 issued by the Council of the Institute of Chartered Accountants of India, the Long Term Investments in respect of quoted investments held by the Company are valued at cost and Rs. 27.38 Lakhs (Previous year Rs. 107.58 Lakhs) being diminution in values thereof has been considered by the management to be temporary and accordingly has not been recognized in this account. These would, however be covered adequately by the Company''s period-end Reserves & Surplus.

21. The Company has provided for deferred tax assets for Rs. 25.30 Lakhs (Previous Year Rs. 1.82 Lakhs Deferred Tax Liability) based on future profitability projection. The management is of the view that future taxable income will be available to realize/adjust such deferred tax assets.

22. In the opinion of the Board of Directors of the Company the Current Assets, Loans, Advances and Deposits are approximately of the value stated in the accounts, if realized, in ordinary course of business unless otherwise stated. The provisions for all known liabilities are adequate and not in excess of the amount reasonably required.

23. The Company is engaged in the business of integrated activities of manufacture and sale of tea, predominantly in the domestic market. Hence, there is no reportable segment as per the Accounting Standard - 17 on "Segment Reporting" as issued by the ICAI.

24. The current financial year is for a period of 12 months ended on 31st March 2017 ("current period") and accordingly, the figures for the current period are not comparable with figures for the period ended 31st March 2016 ("previous year") being 15 months presented in the Statement of Profit and Loss, Cash Flow Statement and related notes.

25. Trade receivables and Trade payables with respect to few parties are subject to confirmation and re-conciliation, if any.

26. Figures for the previous year have been regrouped, rearranged and recast wherever necessary.

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Mar 31, 2016

Out of the above Shares :

1. 89,94,600 Equity Shares of Rs. 5/- each have been allotted as fully paid-up Bonus Shares by way of Capitalisation of Share Premium Account.

2. 9,24,300 Shares of Rs. 5/- each were allotted as fully paid-up Bonus Shares by way of Capitalisation of General Reserve.

3. 74,520 Shares of Rs. 5/- each, fully paid were issued as pursuant to contract without payment being received in cash.

4. 81,79,340 Shares of Rs. 5/- each, fully paid-up are held by Holding Company Diana Capital Limited.

5. There is no movement in share capital as compared to previous year.

6. Terms/rights attached to equity shares :

7. The company has only one class of equity shares having par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend if any proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

8. The Company , due to absence of profits in the current period, has recognized the amount of per share dividend as distributions to equity share holders, Rs. 0.25 per share out of accumulated Free Reserve, as per provision of companies Act, 2013 (31st December 2014 : Rs. 0.25 per share).

9. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

10. Term loan from banks includes loan from United Bank of India repayable up to 2026-27 amounting Rs. 324.10 Lakhs (Rs. 190.10 Lakhs),bearing interest (a) @ base rate plus 0.75% p.a on term loan amounting Rs. 50.10 Lakhs (b) @ MCLR-Y plus 0.80% on term loan amounting Rs. 274.00 Lakhs. The said term loan is secured by first charge on the current assets of the Company and also secured by Pari Pasu first charge on all immovable asstes of the Company both present and future excluding specific items of assets charged/to be charged in favour of lenders or suppliers providing finance for the acquisitions thereof and also personal guarantee of one director of the Company.

11 . Rupee Loan from Others includes Rs. 80.43 Lakhs(Previous year Rs. 94.16 Lakhs ) loan from Tea Board bearing interest @ 10.46% p.a. The said loan is secured by second charge by equitable mortgage of lease hold Tea Estate ranking subsequent to the charge of the bank.

12. Vehicle loan includes loan from HDFC Bank Ltd. and ICICI Bank Ltd. against vehicles, repayable in equiated periodic installments as per the scheme of loan. The loan are secured by hypothecation of respective vehicles.

13. Cash Credit facilities are Secured by first charge on current assets of the Company mainly, stock of raw materials, semi finished and finished goods, stores and spares, book debts, receivables and also secured by pari passu first charge on all immovable assets of the Company both present and future, excluding specific items of assets charged/to be charged in favour of lenders or suppliers providing finance for the acquisition thereof and also personal guarantee of one director of the Company.

14. Unsecured Loan from Bank includes Loan from HDFC Bank Ltd. in Financial year ending December, 2014.

15. Includes loan from Holding Company Diana Capital Limited which is payable on demand.

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Dec 31, 2014

A) 89,94,600 Equity Shares of Rs.5/- each have been allotted as fully paid-up Bonus Shares by way of Capitalisation of Share

Premium Account.

b) 9,24,300 Shares of Rs.5/- each were allotted as fully paid-up Bonus Shares by way of Capitalisation of General Reserve.

c) 74,520 Shares of Rs.5/- each, fully paid were issued as pursuant to contract without payment being received in cash.

d) 81,79,340 Shares of Rs.5/- each, fully paid-up are held by Holding Company Diana Capital Limited.

e) There is no movement in share capital as compared to previous year.

f) Terms/rights attached to equity shares :

(i) The company has only one class of equity shares having par value of '' 5 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend if any proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(ii) The amount of per share dividend recognized as distributions to equity shareholders is '' 0.25/- per share (31 December 2013 : '' 0.25/- per share).

(iii) In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

# Term loan from banks includes loan from United Bank of India repayable upto 2017-18 amounting '' 190.10 Lacs ('' 312.60 Lacs), bearing interest @ base rate plus 1.50% p.a. The said term loan is secured by first charge on the current assets of the Company and also secured by Pari Pasu first charge on all immovable asstes of the Company both present and future ex- cluding specific items of assets charged/to be charged in favour of lenders or suppliers providing finance for the aquisitions thereoff and also personal guarantee of two directors of the Company.

## Indian Rupee Loan from Others includes '' 94.16 Lacs (Previous year '' 98.56 Lacs) loan from Tea Board bearing interest @ 10.24% p.a. to 10.46% p.a. The said loan is secured by second charge by equitable mortgage of lease hold Tea Estate ranking subsequent to the charge of the bank.

### Vehicle loan includes loan from HDFC Bank Ltd. and ICICI Bank Ltd.against vehicles repayable in equiated periodic instal- ments as per the scheme of loan. The loan are secured by hypothecation of respective vehicles.

The Scheduled Maturity of the long term borrowings is summarised as under :

# Cash Credit facilities are Secured by first charge on current assets of the Company mainly, stock of raw materials, semi-finished and finished goods, stores and spares, book debts, receivables and also secured by pari passu first charge on all immovable assets of the Company both present and future, excluding specific items of assets charged/to be charged in favour of lenders or suppliers providing finance for the acquisition thereof and also personal guarantee of two directors of the Company.

## Unsecured Loan from Banks include Loan from HDFC Bank LTD.

### Includes loan from Holding Company Diana Capital Limited which is payable on demand.

# a. No provision has been made for loan receivable amounting to Rs. 146.00 Lacs (Previous Year Rs.158.45 Lacs) as considered doubtful of recovery during the year. Hence no interest has been provided on the said loan. b. Further it also includes advances given to Shruti Trade & Enterprises Pvt. Ltd. amounting to Rs.15.00 Lacs (Previous Year '' 15.00 Lacs) which is doubtful of recovery. However no provision has been made for the same as the Company has filed suit in Hon''ble High Court for Winding up of said Company.

(a) Interest Acrrued on loans includes interest receiveable from Shruti Trade & Enterprises Pvt. Ltd. amounting to Rs.1.45 Lacs (Previous year Rs. 1.45 Lacs) which is doubtful of recovery. However no provision has been made for the same as the company has filed suit in Hon''ble High Court for Winding up of said Company. Further interest receiveable includes interest from DDS Steel Rolling Mills amounting to Rs.4.99 Lacs (Previous year Rs.4.99 Lacs) which is doubtful of recovery but no provision has been done for the same.

(b) No provision has been made for Replantation Subsidy Receivable amounting to Rs.3.67 Lacs (Previous year Rs.3.67 Lacs) for the year 1997-98 in respect of Ambari Tea Estate and Rs.4.14 lacs (Previous Year Rs.4.14 Lacs) in respect of Goodhope Tea Estate for the year 1994 - 95, which is considered as doubtful of recovery.

1)1 Contingent Liability not provided for in respect of

(Rs.in Lacs) Particular As at As at 31st December2014 31st December2013

Claims & Govt. Demand against the company not acknowledged as debt:

- Sales Tax Matter under dispute / appeal 42.90 47.90

- Income Tax matter under dispute / appeal 9.75 30.97

- Other matter not acknowledged as debt 254.40 254.40

Bank Guarantee 99.79 93.99

2) Depreciation as calculated includes additional charges of Rs.0.50 Lacs on revalued assets and an amount equivalent to the additional charges has been transferred to Statement of Profit and Loss from Capital Reserve (Revaluation of Fixed Asset) such transfer according to an authoritative Professional view being acceptable for the purpose of the Companies annual accounts.

3) The company had recognized Rs.123.17 Lacs as exceptional item in the financial year 2013 which was written off on account of settlement in case of its sale of Ambari Tea Estate.

4) During the previous year 2013, Company has reversed Dividend Distribution tax amounting to Rs.21.89 Lacs in excess of 40% of the proposed Dividend as made in earlier years in view of the favourable order from the Hon''ble Supreme Court in the case of Jayshree Tea & Industries Ltd. vs Union of India, and the Company continue to provide Dividend Distribution Tax on 40% of Total Profit Distributed as Dividend.

5) In accordance with the AS-28 on Impairment of Assets, the company has assessed as on the balance sheet date, whether there are any indication (listed in paragraphs 8 to 10 of the standard) with regard to impairment of any assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of accounts.

6) The Company has not received any information from its suppliers regarding registration under "The Micro, Small and Medium Enterprises Development Act, 2006". Hence, the information required to be given in accordance with Section 22 of the said Act, is not ascertainable. Hence, not disclosed;

i) However Sundry Creditors includes Rs.Nil (Previous year - Rs.Nil) due to Small Scale Industrial undertakings to the extent such parties have been identified from the available documents/information.

ii) No interest was paid by the company in terms of section 16 of MSMED Act during the year.

iii) There was no interest for delay in making payment beyond appointed date.

iv) There is no interest accrued and remaining unpaid beyond the appointed date.

v) No interest is remaining due and payable even in succeeding years, until such that when the interest dues as above are actually paid to Micro, Small and Medium Enterprises for the purpose of disallowance as a deductible expenditure under section 23 of the aforesaid Act.

7) The disclosures required under Accounting Standard 15 ( Revised 2005 ) "Employee Benefits" notified in the Companies (Accounting Standards) Rules, 2006, are given below :

b) Defined Benefit Plan - Gratuity

No provision has been made in respect of present liabilities for future payment of gratuity to the staff and workers, which will be charged to accounts as and when paid. According to actuarial valuation under Revised AS-15, the liability for gratuity obligation to staff and workers as on 31st December, 2014 is Rs.940.06 Lacs (Previous Year Rs. 859.17 Lacs) and the net liability is Rs.573.52 Lacs (Previous Year Rs. 506.03 Lacs).

The Company extends defined benefit plan in the form of gratuity to employees. Contribution to gratuity is made to Life Insurance Corporation of India, HDFC Standard Life Insurance Company Ltd., SBI Life Insurance Company Ltd., Birla Sunlife Insurance Company Ltd.and Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. in accordance with the scheme framed by the Corporation. The details are as under :

The discount rate is based upon the market yield available on government bonds at the accounting date within a term that matches that of the liabilities and the salary increase should take account Inflation, Seniority, Promotion and other relevant factors.

8) In accordance with Accounting Standard 13 issued by the Council of the Institute of Chartered Accountants of India, the Long Term Investments in respect of quoted investment held by the Company are valued at cost and Rs.91.68 Lacs (Previous year Rs.96.20 Lacs) being diminution in values thereof has been considered by the management to be temporary and accordingly has not been recognized in this account. These would, however be covered adequately by the Company''s year-end Reserves & Surplus. However, in respect of Unquoted investments, provision for diminution has been made amounting to Rs.0.17 Lacs (Previous year Rs.Nil) on account of diminution which are of permanent in nature.

9) The Company''s profits for the period 1st April, 2014 to 31st December, 2014 together with those for the subsequent period to 31st March, 2015 will be assessable (including under section 115JB of the Income Tax Act, 1961) as one composite income for the Assessment Year 2015-2016 and in the view of this, no provision for the taxation and Deferred Tax Liability has been made as the tax liability in respect of the said period of Nine months cannot be quantified at present. However provision for Income Tax for the Three month from 1st Jan, 2014 to 31st March, 2014 along with previous Nine month from 1st April, 2013 to 31st December, 2013 has been ascertained and duly provided.

10) In accordance with the Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has reviewed the net deferred tax liability/assets as at 31st March, 2014 and the net deferred tax Liability have been computed Rs.139.64 Lacs. Accordingly the deferred tax amounting to Rs.44.60 Lacs for the year has been recognized in the Statement of Profit and Loss and the Deferred Tax Liability for the period from 1st April 2014 to 31st December, 2014 has not been provided in view of the above note number (9).

11) In the opinion of the Board of Directors of the Company the Current Assets, Loans, Advances and Deposits are approximately of the value stated in the accounts, if realised, in ordinary course of business unless otherwise stated. The provisions for all known liabilities are adequate and not in excess of the amount reasonably required.

12) The Company is engaged in the business of integrated activities of manufacture and sale of tea, predominantly in the domestic market. Hence, there is no reportable segment as per the Accounting Standard - 17 on "Segment Reporting" as issued by the ICAI.

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Dec 31, 2013

NOTE 1 : ADDITIONAL INFORMATIONS

1) The revised Schedule VI has become eff ective from 1st April, 2011 for the preparation of fi nancial statements. This has signifi cantly impacted the disclosure and presentation made in the fi nancial statements. Previous year''s fi gures have been regrouped /reclassifi ed wherever necessary to correspond with the current year''s classifi cation / disclosure.

Conilngent Liability not provided for in respect of Amount In (Rs.)

particulars As at As at 31st December, 2013 31st December, 2012

Claims & Govt. Demand against the company not acknowledged as debt :

- Sales Tax Matter under dispute /appeal 47,90,168 26,09,379

- Income Tax matter under dispute / appeal 30,96,626 22,99,520

- Other matter not acknowledged as debt 2,54,40,300 2,54,40,300

Bank Guarantee 93,98,748 1,01,57,394

3) Depreciation as calculated includes additional charges ofRs. 49,895/- on revalued assets and an amount equivalent to the additional charges has been transferred to Statement of Profit and Loss from Capital Reserve (Revaluation of Fixed Asset) such transfer according to an authoritative Professional view being acceptable for the purpose of the Companies annual accounts.

4) The Company had entered into a Sale Agreement with M/s. Stanmore Estates Pvt. Ltd., the nominee of M/s. Maxwell Golden Tea Pvt. Ltd. for sale of its Ambari Tea Estate in the year 2011. An advance of Rs. 300 lacs was received against the said Sale Agreement and balance consideration was receivable on conveyance of the said deed subject to various Government permissions. Because of inordinate delay in getting various government permissions there was a litigation between the parties which was resolved through out of court settlement. In terms of the said settlement the fi nal amount received/ adjusted Rs. 1,416.53 lacs in the year 2013. As such an amount ofRs. 123.17 lacs receivable from Stanmore Estates Pvt. Ltd. has been written off (as no longer receivable) and considered as exceptional item in the books in 2013.

5) During the year, Company has reversed Dividend Distribution tax amounting toRs. 21,88,724/- in excess of 40% of the proposed Dividend as made in earlier years in view of the favourable order from the Hon''ble Supreme Court in the case of Jayshree Tea & Industries Ltd. vs Union of India, and the Company continue to provide Dividend Distribution Tax on 40% of Total Profit Distributed as Dividend.

6) In accordance with the AS - 28 on Impairment of Assets, the company has assessed as on the balance sheet date, whether there are any indication (listed in paragraphs 8 to 10 of the standard) with regard to impairment of any assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of accounts.

7) The Company has not received any information from its suppliers regarding registration under "The Micro, Small and Medium Enterprises Development Act, 2006". Hence, the information required to be given in accordance with Section 22 of the said Act, is not ascertainable. Hence, not disclosed;

i) However Sundry Creditors includes Rs .Nil (Previous year -Rs. 87,464/-) due to Small Scale Industrial undertakings to the extent such parties have been identifi ed from the available documents/information.

ii) No interest was paid by the company in terms of section 16 of MSMED Act during the year.

iii) There was no interest for delay in making payment beyond appointed date.

iv) There is no interest accrued and remaining unpaid beyond the appointed date.

v) No interest is remaining due and payable even in succeeding years, until such that when the interest dues as above are actually paid to Micro, Small and Medium Enterprises for the purpose of disallowance as a deductible expenditure under section 23 of the aforesaid Act.

The discount rate is based upon the market yield available on government bonds at the accounting date within a term that matches that of the liabilities and the salary increase should take account Infl ation, Seniority, Promotion and other relevant factors.

9) In accordance with Accounting Standard 13 issued by the Council of the Institute of Chartered Accountants of India, the Long Term Investments in respect of quoted investment held by the Company are valued at cost and Rs. 9,619,540/- (Previous year Rs. 8,561,673/- ) being diminution in values thereof has been considered by the management to be temporary and accordingly has not been recognized in this account. These would, however be covered adequately by the Company''s year-end Reserves & Surplus. However in respect of Unquoted investments, provision for diminution has been made amounting to Rs. Nil (Previous year Rs. 292,962) on account of diminution which are of permanent in nature.

10) The Company''s profits for the period 1st April, 2013 to 31st December, 2013 together with those for the subsequent period to 31st March, 2014 will be assessable (including under section 115JB of the Income Tax Act, 1961) as one composite income for the Assessment Year 2014-2015 and in the view of this, no provision for the taxation and Deferred Tax Liability has been made as the tax liability in respect of the said period of Nine months cannot be quantifi ed at present. However provision for Income Tax for the Three month from 1st Jan, 2013 to 31st March, 2013 along with previous Nine month from 1st April, 2012 to 31st December, 2012 has been ascertained and duly provided.

11) In accordance with the Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has reviewed the net deferred tax liability/assets as at 31st March, 2013 and the net deferred tax Liability have been computed Rs. 9,504,412/-. Accordingly the deferred tax amounting to Rs. 7,800,278/- for the year has been recognized in the Statement of Profit and Loss and the Deferred Tax Liability/Assets for the period from 1st April 2013 to 31st December, 2013 has not been provided in view of the above note number 10.

12) In the opinion of the Board of Directors of the Company the Current Assets, Loans, Advances and Deposits are approximately of the value stated in the accounts, if realised, in ordinary course of business unless otherwise stated. The provisions for all known liabilities are adequate and not in excess of the amount reasonably required.

13) The Company is engaged in the business of integrated activities of manufacture and sale of tea, predominantly in the domestic market. Hence, there is no reportable segment as per the Accounting Standard 17 on "Segment Reporting" as issued by the ICAI.

14) Figures for the Previous year have been regrouped, rearranged and recast wherever necessary.

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Dec 31, 2012

1) The revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure

2) Contingent Liability not provided for in respect of:

1.1) Bank Guarantees issued to various Government Bodies to the extent of Rs. 1,01,57,394/- (Previous year Rs. 82,51,173/-).

1.2) Claim against the Company not acknowledged as debts amounting to t 2,54,40,300/- (Previous year Rs. 2,54,40,300/-).

1.3) West Bengal Sales Tax demand for the Assessment Year 2000-01 of Rs. 80, 543/- (Previous year- Rs. 80,543/-).

1.4) Income tax demand of t 7,92,584/-, Rs. 14,08,126*/- and Rs. 98,810/- being contested by the company for the Assessment year 2007-08, 2008-09 and 2009-10 respectively (Previous year- Rs. 7,92,584, Rs. 14,08,126 and Rs. 98,810/- for the Assessment Year 2007-08, 2008-09 and 2009-10 respectively).

1.5) Central Sales Tax demand for the Assessment Year 2003-04 of Rs. 25,28,836/- (Previous year Rs. 25,28,836/- for the Assessment Year 2003-04)

3) Depreciation as calculated includes additional charges of Rs. 49,895/- on revalued assets and an amount equivalent to the additional charges has been transferred to Statement of Profit and Loss from Capital Reserve (Revaluation of Fixed Asset) such transfer according to an authoritative Professional view being acceptable for the purpose of the Companies annual accounts.

4) During the year 2011 Company has entered into a sale agreement with Stanmore Estates Pvt. Ltd. nominee of Maxwell Golden Tea Pvt.Ltd. for the sale of the Ambari Tea Estate and necessary adjustment has been made in the accounts. The necessary formalities and necessary permission from Govt, of West Bengal for transfer is under progress.

5) In view of the favourable order from the Hon''ble Supreme Court filed by other tea companies in respect of dividend tax, the company is depositing the dividend tax to the extent of 40% of the applicable rates. However the company is continuing to provide dividend tax at applicable rates.

6) In accordance with the AS - 28 on Impairment of Assets, the company has assessed as on the balance sheet date, whether there are any indication (listed in paragraphs 8 to 10 of the standard) with regard to impairment of any assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of accounts.

7) The Company has not received any information from its suppliers regarding registration under "The Micro, Small and Medium Enterprises Development Act, 2006". Hence, the information required to be given in accordance with Section 22 of the said Act, is not ascertainable. Hence, not disclosed;

i) However Sundry Creditors includes Rs. 87,464/- (Previous year - Rs. 1,23,501/-) due to Small Scale Industrial undertakings to the extent such parties have been identified from the available documents/information.

ii) No interest was paid by the company in terms of section 16 of MSMED Act during the year.

iii) There was no interest for delay in making payment beyond appointed date.

iv) There is no interest accrued and remaining unpaid beyond the appointed date.

v) No interest is remaining due and payable even in succeeding years, until such that when the interest dues as above are actually paid to Micro, Small and Medium Enterprises for the purpose of disallowance as a deductible expenditure under section 23 of the aforesaid Act.

8) The disclosures required under Accounting Standard 15 (Revised 2005) "Employee Benefits" notified in the Companies (Accounting Standards) Rules,2006, are given below :

a) Defined Contribution Plan - Provident Fund

Employer''s contribution to Provident Fund Rs. 14,783,726/- Employees'' contribution to Provident Fund Rs. 14,783,72
b) Defined Benefit Plan - Gratuity

No provision has been made in respect of present liabilities for future payment of gratuity to the staff and workers, which will be charged to accounts as and when paid. According to actuarial valuation under Revised AS-15, the liability for gratuity obligation to staff and workers as on 31st December, 2012 is Rs. 71,853,404/- (Previous year Rs. 59,982,875/-) and the net liability is Rs. 44,140,756)/- (Previous year Rs. 39,938,403/-).

The Company extends defined benefit plan in the form of gratuity to employees contribution to gratuity is made to Life Insurance Corporation of India, HDFC Standard Life Insurance Company Ltd., SBI Life Insurance Company Ltd. and Birla Sunlife Insurance Company Ltd. in accordance with the scheme framed by the Corporation. The details are as under:

9) In accordance with Accounting Standard (AS) 13 issued by the Council of the Institute of Chartered Accountants of India, the Long Term Investments in respect of quoted investment held by the Company are valued at cost and Rs. 8,561,673/- (Previous year Rs. 10,206,076/-) being diminution in values thereof has been considered by the management to be temporary and accordingly has not been recognized in this account. These would, however be covered adequately by the Company''s year-end Reserves & Surplus. However in respect of Unquoted investments, provision for diminution has been made amounting to Rs. 292,962/- (Previous year Nil) on account of diminution which are of permanent in nature.

10) The company has not accounted for interest receivable from M/s Pretoria Enclave Limited, as per One Time Settlement (OTS) held in the year 2008. During the year company has received compensation on account of OTS from M/s Pretoria Enclave Limited in full. Further the balance principal amount receivable from M/s Pretoria Enclave Limited will be repaid upto 2014 -15.

11) No Provision has been made in respect of West Bengal Professional Tax liability of Rs. 327,417/- in respect of interest for which the company had applied for waiver (Previous year Rs. 327,417/-).

12) The Company''s profits for the period 1st April, 2012 to 31st December, 2012 together with those for the subsequent period to 31st March, 2013 will be assessable (including under Section 115JB of the Income Tax Act, 1961) as one composite income for the Assessment Year 2013-2014 and in the view of this, no provision for the taxation and Deferred Tax Liability has been made as the tax liability in respect of the said period of Nine months cannot be quantified at present. However provision for Income Tax for the Three month from 1st January, 2012 to 31st March, 2012 along with previous Nine month from 1st April, 2011 to 31st December, 2011 has been ascertained and duly provided.

13) In accordance with the Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has reviewed the net deferred tax liability/assets as at 31st March, 2012 and the net deferred tax Liability have been computed Rs. 1,704,634/-. Accordingly the deferred tax amounting to Rs. 9,646,366/- for the year has been recognized in the Statement of Profit and Loss and the Deferred Tax Liability/Assets for the period from 1st April, 2012 to 31st December, 2012 has not been provided in view of the above note number 12.

14) In the opinion of the Board of Directors of the Company the Current Assets, Loans, Advances and Deposits are approximately of the value stated in the accounts, if realised, in ordinary course of business unless otherwise stated. The provisions for all known liabilities are adequate and not in excess of the amount reasonably required.

15) The Company is engaged in the business of integrated activities of manufacture and sale of tea, predominantly in the domestic market. Hence, there is no reportable segment as per the AS -17 on "Segment Reporting" as issued by the ICAI.

16) Figures for the Previous year have been regrouped, rearranged and recast wherever necessary.

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Dec 31, 2010

1) Contingent Liability not provided for in respect of

1.1) Bank Guarantees issued to various Government Bodies to the extent of Rs 8,000,730/- (Previous year Rs 6,786,084/-).

1.2) Claim against the Company not acknowledged as debts amounting to Rs 25,440,300/- (Previous year Rs 25,440,300/-).

1.3) West Bengal Sales Tax demand for the Assessment Year 2000-01 of Rs 80,543/- (Previous year Rs 80,543/-).

1.4) Income tax demand of Rs 779,200/- and Rs 1,328,258/- being contested by the company for the Assessment year 2007-08 and 2008-09 respectively (Previous year Rs 4,771,575, Rs 94,181 and Rs 3,100,689 for the assessment year 2005-06, 2006-07 and 2007-08 respectively).

1.5) Central Sales Tax demand for the Assessment Year 2003-04 and 2004-05 of Rs 2,528,836/- and Rs 2,718/- respectively (Previous year Rs 2,528,836/- and Rs 194,968/- respectively).

2) Stock of Tea includes 8,14,417 Kgs. valuing Rs 80,642,607/- lying with other Parties (Previous year 1,191,736 Kgs. valuing Rs110,585,116/-)

3) Depreciation as calculated includes additional charges of Rs 49,895 on revalued assets and an amount equivalent to the additional charges has been transferred to Profit and Loss Account from Capital Reserve (Revaluation of Fixed Asset) such transfer according to an authoritative Professional view being acceptable for the purpose of the Companies annual accounts.

4) In accordance with the AS - 28 on Impairment of Assets, the company has assessed as on the balance sheet date, whether there are any indication (listed in paragraphs 8 to 10 of the standard) with regard to impairment of any assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of accounts.

5) No provision has been made for Sundry Debtors amounting to Rs 414,544/- considered as Doubtful of Recovery (Under Litigation Rs 108,930/-) (Previous year Rs 414,544/-)

6) Sundry Creditors include outstanding in respect of Machinery and vehicle amounting to rs 9,691,870/- (Previous year Rs 11,080,830/-) purchased in terms of Hire Purchase Agreements.

7) The Company has not received any information from its suppliers regarding registration under "The Micro, Small and Medium Enterprises Development Act, 2006". Hence, the information required to be given in accordance with Section 22 of the said Act, is not ascertainable. Hence, not disclosed.

8) The disclosures required under Accounting Standard 15 ( Revised 2005 ) "Employee Benefits" notified in the Companies (Accounting Standards) Rules,2006, are given below:

a) Defined Contribution Plan - Provident Fund

Employers contribution to Provident Fund 14,608,829/-

Employees contribution to Provident Fund 14,608,829/-

b) Defined Benefit Plan - Gratuity

No provision has been made in respect of present liabilities for future payment of gratuity to the staff and workers, which will be charged to accounts as and when paid. According to actuarial valuation under Revised AS-15, the liability for gratuity obligation to staff and workers as on 31st December, 2010 is Rs 64,225,223/- (Previous Year Rs 80,590,980/-).

The Company extends defined benefit plan in the form of gratuity to employees contribution to gratuity is made to Life Insurance Corporation of India & HDFC Standard Life Insurance Company Ltd. in accordance with the scheme framed by the Corporation. The details are as under:

The discount rate is based upon the market yield available on government bonds at the accounting date within a term that matches that of the liabilities and the salary increase should take account Inflation, Seniority, Promotion and other relevant factors.

9) In accordance with Accounting Standard (AS) 13 issued by the Council of the Institute of Chartered Accountants of India, the Long Term Investments held by the Company are valued at cost and Rs 7,245,068./- (Previous year Rs 8,023,805./-) being diminution in values thereof has been considered by the management to be temporary and accordingly has not been recognized in this account. These would, however be covered adequately by the Companys year-end Reserves & Surplus.

10) Miscellaneous Expenses includes Directors Board Meeting Fee & Committee Meeting Fee Rs 36,000/- (Previous year Rs 28,000/-).

11) The company has not accounted for interest receivable from M/s Pretoria Enclave Limited, as per One Time Settlement (OTS) held in the year 2008. According to OTS M/s Pretoria Enclave Limited will pay Rs80.0 lacs as compensation in three yearly installments and after the completion of installments of Rs 80 lacs, the aforementioned Company will pay its principal amount from the year 2011-12 in three years time. Interest will be Charged from April, 2011 onwards.

12) No Provision has been made in respect of West Bengal Professional Tax liability of Rs 327,41 II- in respect of interest for which the company had applied for waiver. (Previous year Rs 327,417/-).

13) No provision has been made for loan receivable amounting to Rs 1,744,778/- as considered doubtful of recovery during the year. Hence no interest has been provided on the said loan. (Previous year Rs 2,763,111/-).

14) Sundry Creditors includes Rs284,352/- (Previous Year Rs 560,436/-) due to Small Scale Industrial undertakings to the extent such parties have been identified from the available documents/information. An amount of Rs 9,062/- is due to party namely Vijay Trading Company which is outstanding for more than 30 days.

15) Land & Plantation includes Rs 790 lacs in respect of Ambari Tea Estate, conveyance for which is not executed.

16) The Companys profits for the period 1st April, 2010 to 31st December, 2010 together with those for the subsequent period to 31st March, 2011 will be assessable (including under section 115JB of the Income Tax Act, 1961) as one composite income for the Assessment Year 2011 -2012 and in the view of this, no provision for the taxation and Deferred Tax Liability has been made as the tax liability in respect of the said period of Nine months cannot be quantified at present. However provision for Income Tax for the Three month from 1st Jan, 2010 to 31st March, 2010 along with previous Nine month from 1st April, 2009 to 31st December, 2009 has been ascertained and duly provided.

17) In accordance with the Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has reviewed the net deferred tax liability/assets as at 31st March, 2010 and the net deferred tax liability have been computed Rs 6,396,794/-. Accordingly the deferred tax amounting to Rs 9,367,769/- for the year has been recognized in the Profit and Loss Account and the Deferred tax liability/Assets for the period from 1st April, 2010 to 31st December, 2010 has not been provided in view of the above note number 16.

18) In the opinion of the Board of Directors of the Company the Current Assets, Loans, Advances and Deposits are approximately of the value stated in the accounts, if realised, in ordinary course of business unless otherwise stated. The provisions for all known liabilities are adequate and not in excess of the amount reasonably required.

19) The Company is engaged in the business of integrated activities of manufacture and sale of tea, predominantly in the domestic market. Hence, there is no reportable segment as per the AS - 17 on "Segment Reporting" as issued by the ICAI.

26) Figures for the Previous year have been regrouped, rearranged and recast wherever necessary.

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Dec 31, 2009

1) Contingent Liability not provided for in respect of :-

1.1) Bank Guarantees issued to various Government Bodies to the extent of Rs. 67,86,084/- (Previous year - Rs. 65,94,142/-).

1.2) Claim against the Company not acknowledged as debts amounting to Rs. 2,54,40,300/- (Previous year - Rs. 2,54,40,300/-).

1.3) West Bengal Sales Tax demand for the Assessment Year 2000-01 of Rs. 80,543/-.

1.4) Income Tax demand of Rs. 47,71,575/-, Rs. 94,181/- and Rs. 31,00,689/- being contested by the Company for the Assessment year 2005-06, 2006-07 and 2007-08 respectively.

1.5) Central Sales Tax demand for the Assessment Year 2003-04 and 2004-05 of Rs. 25,28,836/- and Rs. 1,94,968/- respectively.

2) Stock of Tea includes 11,91,736 Kgs. valuing Rs. 11,05,85,116/- lying with other Parties (Previous year 7,36,478 Kgs. valuing Rs.5,72,53,800/-).

3) Depreciation as calculated includes additional charges of Rs. 49,895/- on revalued assets and an amount equivalent to the additional charges has been transferred to Profit & Loss Account from Capital Reserve (Revaluation of Fixed Asset) such transfer according to an authoritative professional view being acceptable for the purpose of the Companies annual accounts.

4) In accordance with the AS-28 on Impairment of Assets, the Company has assessed as on the balance sheet date, whether there are any indication (listed in paragraphs 8 to 10 of the standard) with regard to impairment of any assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of accounts.

5) No provision has been made for Sundry Debtors amounting to Rs. 4,14,544/- considered as Doubtful of Recovery (Under Litigation - Rs. 1,08,930/-) (Previous year - Rs. 1,08,930/-).

6) Sundry Creditors include outstanding in respect of Machinery and Vehicle amounting to Rs. 1,10,80,830/- (Previous year - Rs. 1,35,71,000/-) purchased in terms of Hire Purchase Agreements.

7) The Company has not received any information from its suppliers regarding registration under "The Micro, Small and Medium Enterprises Development Act, 2006". Hence, the information required to be given in accordance with Section 22 of the said Act, is not ascertainable. Hence, not disclosed.

8) The disclosures required under Accounting Standard -15 (Revised 2005) "Employee Benefits" notified in the Companies (Accounting Standards) Rules, 2006, are given below :

a) DEFINED CONTRIBUTION PLAN - PROVIDENT FUND

Employers contribution to Provident Fund Rs. 13,961,969/-

Employees contribution to Provident Fund Rs. 13,961,971/-

b) DEFINED BENEFIT PLAN-GRATUITY

- No provision has been made in respect of present liabilities for future payment of gratuity to the Staff and Workers, which will be charged to accounts as and when paid. According to actuarial valuation under Revised AS-15, the liability for gratuity payable to Staff and Workers as on 31st December, 2009 is Rs. 8,05,90,980/- (Previous year Rs. 6,39,35,949/-). Company is not contributed to any approved Gratuity Fund during the year. Hence, Fair value of Plan Assets, Current Service Cost, Interest Cost, Actuarial (gain)/Loss as on 31st December, 2009 are not ascertainable. However during the year Company has paid Rs.37,58,940/- to employees who have retired/died.

The discount rate is based upon the market yield available on government bonds at the accounting date within a term that matches that of the liabilities and the salary increase should take account Inflation, Seniority, Promotion and other relevant factors.

- The company has created a Gratuity Trust named "Diana Tea Company Limited Employees Gratuity Fund" under the Payment of Gratuity Act, 1972, with effect from 12th February, 2010. Further the Company has contributed under Group Gratuity scheme with "HDFC Standard Life Insurance Company Ltd." and "Life Insurance Corporation of India".

9) In accordance with Accounting Standard (AS) 13 issued by the Council of the Institute of Chartered Accountants of India, the Long Term Investments held by the Company are valued at cost and Rs. 80,23,805/- (Previous year - Rs. 1,00,10,042/-) being diminution in values thereof has been considered by the management to be temporary and accordingly has not been recognized in this account. These would, however be covered adequately by the Companys year-end Reserves & Surplus.

10) Miscellaneous Expenses includes Directors Board Meeting Fee & Committee Meeting Fee Rs. 28,000/- (Previous year - Rs. 32,000/-).

11) The Company has not accounted for interest receivable from M/s. Pretoria Enclave Limited, as per One Time Settlement (OTS) held in last year. According to OTS M/s. Pretoria Enclave Limited will pay Rs. 80 Lacs as compensation in three yearly instalments and after the completion of instalments of Rs. 80 Lacs, the aforementioned Company will pay its principal amount from the year 2010-11 in three years time. Interest will be charged from April, 2011 onwards.

12) No Provision has been made in respect of West Bengal Professional Tax Liability of Rs. 3,27,417/- in respect of interest for which the Company had applied for waiver.

13) No provision has been made for loan receivable (including interest Rs. 18,333/-) amounting to Rs. 27,63,111/- as considered doubtful of recovery during the year. Hence, no interest has been provided on the said loan.

14) Bank Charges includes Rs. 16.13 Lacs (Previous year - Rs.14.25 Lacs) being the Proportionate amount of foreign exchange fluctuation for repayment of foreign currency loan from bank, covered by forward contract.

15) Sundry Creditors includes Rs. 5,60,436/- (Previous year - Rs. 1,71,983/-) due to Small Scale Industrial undertakings to the extent such parties have been identified from the available documents/information. An amount of Rs. 2,87,682/- is due to party namely M/s. Avani Poly Pvt. Ltd., and Rs. 12,589/- to Vijay Trading Company respectively which is outstanding for more than 30 days.

16) During the year Company has received Subsidy of Rs. 15,33,674/- against Quality Upgradation and Product Diversification Scheme. Accordingly, the Company has calculated depreciation on net amount with prospective effect according to Accounting Standard -12.

17) Land & Plantation includes Rs. 790 Lacs in respect of Ambari Tea Estate, conveyance for which is not executed.

18) The Companys profits for the period 1st April, 2009 to 31st December, 2009 together with those for the subsequent period to 31st March, 2010 will be assessable (including under Section 115JB of the Income Tax Act, 1961) as one composite income for the Assessment Year 2010-2011 and in the view of this, no provision for the taxation has been made as the tax liability in respect of the said period of nine months cannot be quantified at present. However, provision for Income Tax for the three months from 1st January, 2009 to 31st March, 2009 along with previous nine months from 1st April, 2008 to 31st December, 2008 has been ascertained and duly provided.

19) In accordance with the Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has reviewed the net deferred tax liability/assets as at 31st December, 2009 and the net deferred tax assets have been computed Rs. 29,70,975/-. Accordingly, the deferred tax amounting to Rs. 13,76,371/- for the year has been recognized in the Profit & Loss Account.

20) In the opinion of the Board of Directors of the Company the Current Assets, Loans, Advances and Deposits are approximately of the value stated in the accounts, if realised, in ordinary course of business unless otherwise stated. The provisions for all known liabilities are adequate and not in excess of the amount reasonably required.

22) The Company is engaged in the business of integrated activities of manufacture and sale of tea, predominantly in the domestic market. Hence, there is no reportable segment as per the AS-17 on "Segment Reporting" as issued by the ICAI.

In addition to above Companys financial assistance of Rs. 725 Lacs from United Bank of India are additionally secured by pledgement of Companys 9,57,500 equity shares held by Holding Company, Diana Capital Limited, 2,74,850 equity shares held by Managing Director Mr. Sandeep Singhania and 3,74,924 equity shares held by Wholetime Director Mrs. Sarita Singhania. Singhania Builders Ltd., has also given corporate guarantee of Rs. 35 Lacs for the above term loan of Rs. 725 Lacs as additional security to United Bank of India.

21) Information pursuant to the Provision of Paragraphs 3, 4C & 4D of Part II of Schedule VI to the Companies Act, 1956.

22) Figures for the previous year have been re-grouped, re-arranged and re-casted wherever necessary.

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Dec 31, 2000

1) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances) Rs. 56,50,000/- (previous period Rs. 1,46,39,000 /-).

2) Contingent Liability not provided for in respect of :-

2.1) Bank Guarantees issued to various Government Bodies to the extent of Rs.27,66,954/- (Previous year Rs. 27,66,954/-).

2.2) Claim against the Company not acknowledged as debts amounting to Rs.1,16,22,761/- (Previous year Rs. 21,46,361/-).

3) The Land & Plantation of Diana, Baintgoorie and Goodhope Tea Estates except respective additions during the period have been revalued on 1st April 2000 as per valuation made by an approved valuer. This resulted in an increase in the book value of assets by Rs. 28,51,21,124/-, which is credited to Capital Reserve Account during the period ended 31st December 2000.

4) Depreciation as calculated includes additional charges of Rs. 50,209/- on revalued assets and an amount equivalent to the additional charges has been transferred to Profit & Loss Account from Capital Reserve (Revaluation of Fixed Assets) such transfer according to an authoritative professional views being acceptable for the purpose of the Companys Annual Accounts.

5) Stock of Tea includes 5,98,512 Kgs. valuing Rs. 2,88,48,278/- lying with other Parties ( Previous year 91,208 Kgs. valuing Rs. 53,25,543/-).

6) No provision has been made for Sundry Debtors amounting to Rs. 108,930/- considered as Doubtful of Recovery (Under Litigation) (Previous year Rs. 108,930/-).

7) Sundry Creditors including outstanding in respect of Machinery and Vehicle amounting to Rs.20,34,217/- (Previous year Rs. 14,66,971/-) purchased in terms of Hire Purchase Agreements.

8) No provision has been made in respect of present liabilities for future payment of gratuity to the Staff and Workers which . will be charged to accounts as and when paid/payable. According to actuarial valuation the liability for gratuity to Staff and Workers as on 31st December 2000 is Rs. 2,68,29,797/- (Previous year Rs. 2,45,09,803/-).

9) In accordance with Accounting Standard (AS) 13 issued by the Council of the Institute of Chartered Accountants of India, the Long Term Investments held by the Company are valued at cost and Rs. 2,95,31,612 /- (Previous year Rs. 1,42,83,918 /-) being diminution in values thereof has been considered by the management to be temporary and accordingly has not been recognised in this account. These would, however be covered adequately by the Companys year-end Reserves & Surplus.

10) To comply with the Accounting Standards-16 made mandatory by the Institute of Chartered Accountants of India with effect from 1st April 2000, the Company has changed its accounting policy in respect of treatment of borrowing cost as referred in Note A-13. pursuant to such change in accounting policy profit for the year is higher by Rs.7,64,776/-.

11) Miscellaneous Expenses includes Directors Board Meeting Fee Rs.11,500/- (Previous year Rs.8,000/-).

12) An amount of Rs. 10,17,820/- and Rs. 1,33,397/- are due to Small Scale Industrial undertakings namely M/s. Jalan Laminators Pvt. Ltd. and M/s. Hanu Polymers Private Limited which exceeds Rs. 1,00,000/- and are outstanding for more than 30 days. Total amount due to small scale Industrial undertakings was Rs. 12,58,552/-

13) Land & Plantation includes Rs. 790 Lakhs in respect of Ambari Tea Estate, Conveyance for which is not executed.

14) The company has changed its accounting year from ending March to ending December for the purpose of the Companies Act, 1956 as against 31st March being the previous year for the purpose of the provisions of the Income Tax Act, 1961. The Companys profits for the period 1st April 2000 to 31st December 2000 together with subsequent period upto 31st March 2001 will be assessable (including under Section 115JA of the Income Tax Act, 1961) as one composite income for the assessment Year 2001-2002 and in view of this, no provision for taxation has been made as the tax liability in respect of the whole year including said period of three months can not be quantified at present.

15) In the opinion of the Board of Directors of the Company the Current Assets, Loans, Advances and Deposits are approximately of the value stated in the accounts, if realised, in ordinary course of business unless otherwise stated. The provision for all known liabilities are adequate and not in excess of the amount reasonably required.

16) Loans and Advances includes the following due from companies under the same Management or in which Directors are interested either as Director of the Company and from Executive Directors of the Company.

17) Abstract of the Balance Sheet as at 31.12.2000 and Companys General Business Profiles as per Part IV of Schedule VI (amended) to the Companies Act, 1956.