Get Updates

Get notified about market trends, financial advice, and investment tips!

A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Jay Shree Tea & Industries Ltd.

Mar 31, 2025

3.21. Provisions and Contingencies

A provision is recognized when an enterprise has a present obligation (legal or constructive) as a result of past event; it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Provisions are measured at the present value of management''s best
estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used
to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risk specific to the liability. The expense relating to a provision is presented in the statement of profit and loss.

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.

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of
economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of economic benefits is
probable.

Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.

3.22. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.

Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value, plus in the case of financial assets not recorded at fair value through
profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables
that do not contain a significant financing component are measured at transaction price.

Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the
fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition if the
fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a
valuation technique that uses data from observable markets (i.e. level 2 input). In case the fair value is not determined using a
level 1 or level 2 input as mentioned above, the difference between the fair value and transaction price is deferred appropriately
and recognised as a gain or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises due to a
change in factor that market participants take into account when pricing the financial asset.

Subsequent measurement: For subsequent measurement, the Company classifies a financial asset in accordance with the
below criteria:

â¢ The Company''s business model for managing the financial asset and

â¢ The contractual cash flow characteristics of the financial asset.

Based on the above criteria, the Company classifies its financial assets into the following categories:

Financial assets measured at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

â¢ The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect
contractual cash flows, and

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

This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company. (Refer
Note 39 for further details). Such financial assets are subsequently measured at amortised cost using the effective interest
method. The effect of the amortisation under effective interest method is recognised as interest income over the relevant
period of the financial asset under other income in the Statement of Profit and Loss. The amortised cost of a financial asset is
also adjusted for loss allowance, if any.

Financial assets measured at fair value through other comprehensive income (FVTOCI)

â¢ A financial asset is measured at FVTOCI if both of the following conditions are met:

â¢ The Company''s business model objective for managing the financial asset is achieved both by collecting contractual cash
flows and selling the financial assets, and

â¢ The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding

This category applies to certain investments in debt instruments (Refer Note 39 for further details). Such financial assets are
subsequently measured at fair value at each reporting date. Fair value changes are recognised in the Other Comprehensive
Income (OCI). However, the Company recognise interest income and impairment losses and its reversals in the Statement of
Profit and Loss. On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is reclassified
from equity to Statement of Profit and Loss.

On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is reclassified from equity to
Statement of Profit and Loss.

Further, the Company, through an irrevocable election at initial recognition, has measured certain investments in equity
instruments at FVTOCI (Refer Note 39 for further details). The Company has made such election on an instrument by instrument
basis. These equity instruments are neither held for trading nor are contingent consideration recognised under a business
combination.

Pursuant to such irrevocable election, subsequent changes in the fair value of such equity instruments are recognised in OCI.
However, the Company recognise dividend income from such instruments in the Statement of Profit and Loss when the right
to receive payment is established, it is probable that the economic benefits will flow to the Company and the amount can
be measured reliably. On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is not
reclassified from the equity to Statement of Profit and Loss. However, the Company may transfer such cumulative gain or loss
into retained earnings within equity.

Financial assets measured at fair value through profit or loss (FVTPL)

A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI as explained above. This is a residual
category applied to all other investments of the Company excluding investments in subsidiary and associate companies (Refer
Note 39 for further details). Such financial assets are subsequently measured at fair value at each reporting date. Fair value
changes are recognised in the Statement of Profit and Loss.

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

â¢ The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

â¢ Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest
(SPPI) on principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate
(EIR) method. The EIR amortisation is included in finance income in the Statement of Profit and Loss.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are
classified as at Fair Value Through Profit and Loss (FVTPL). For all other equity instruments, the Company makes an irrevocable
election to present in Other Comprehensive Income (OCI) subsequent changes in the fair value. The Company makes such
election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on
sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Derecognition

A financial asset is derecognised when the right to receive cash flows from the assets has expired, or has been transferred, and
the Company has transferred substantially all of the risks and rewards of ownership.

In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but
retains control of the financial asset, the Company continues to recognize such financial asset to the extent of its continuing
involvement in the financial asset. In that case, the Company also recognise an associated liability. The financial asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

On derecognition of a financial asset, (except as mentioned above for financial assets measured at FVTOCI), the difference
between the carrying amount and the consideration received is recognised in the Statement of Profit and Loss.

Impairment of financial assets

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:

a) Trade receivables

b) Financial assets measured at amortised cost (other than trade receivables)

c) Financial assets measured at fair value through other comprehensive income (FVTOCI)-in case of debt instruments

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured
and recognised as loss allowance. In case of other financial assets, the Company determines if there has been a significant
increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased
significantly, an amount equal to 12-month ECL is measured and recognised as loss allowance. However, if credit risk has
increased significantly, an amount equal to lifetime ECL is measured and recognised as loss allowance.

Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk
since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12 months ECL.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes,
taking into account the time value of money and other reasonable information available as a result of past events, current
conditions and forecasts of future economic conditions. As a practical expedient, the Company uses a provision matrix to
measure lifetime ECL on its portfolio of trade receivables. The provision matrix is prepared based on historically observed
default rates over the expected life of trade receivables and is adjusted for forward-looking estimates. At each reporting date,
the historically observed default rates and changes in the forward-looking estimates are updated.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in the Statement
of Profit and Loss.

Financial liabilities

Initial recognition and measurement

The Company recognise a financial liability in its balance sheet when it becomes party to the contractual provisions of the
instrument. All financial liabilities are recognised initially at fair value minus, in the case of financial liabilities not recorded at
fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability.

Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between the
fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition if the
fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a
valuation technique that uses data from observable markets (i.e. level 2 input). In case the fair value is not determined using a
level 1 or level 2 input as mentioned above, the difference between the fair value and transaction price is deferred appropriately
and recognised as a gain or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises due to a
change in factor that market participants take into account when pricing the financial liability.

Subsequent measurement:

All financial liabilities of the Company are subsequently measured at amortised cost using the effective interest method (Refer
Note 39 for further details). The cumulative amortisation using the effective interest method of the difference between the
initial recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if any)
of the financial liability over the relevant period of the financial liability to arrive at the amortised cost at each reporting date.
The corresponding effect of the amortisation under effective interest method is recognised as interest expense under finance
cost in the Statement of Profit and Loss.

Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference between the carrying amount of the financial liability derecognised
and the consideration paid is recognised in the Statement of Profit and Loss.

Offsetting of financial assets and financial liabilities:

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

Derivative financial instruments

The Company enters into derivative financial instruments, primarily forward currency contracts, with external counterparties
to manage its exposure to foreign exchange risks arising from foreign currency denominated financial assets and liabilities.
These derivative contracts are not designated in a formal hedge relationship as defined under Ind AS 109. Accordingly, such
instruments are measured at fair value through profit or loss (FVTPL), and any gains or losses arising from changes in fair value
are recognised in the Statement of Profit and Loss.

3.23. Fair Value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in
its highest and best use.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a
whole:

â¢ Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities

â¢ Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable

â¢ Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.24. Exceptional Items

An ordinary item of income or expense which by its size, nature, occurrence or incidence requires a disclosure in order to
improve understanding of the performance of the Company is treated as an exceptional item in the Statement of Profit and
Loss account.

3.25. Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting
period, the impact of such events is adjusted within the Financial Statements. Otherwise, events after the balance sheet date
of material size or nature are only disclosed.

3.26. Recent accounting pronouncements

Ministry of Corporate Affairs ("MCAâ) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2025, MCA has notified Ind AS 117 -
Insurance Contracts and amendments to Ind As 116 - Leases, relating to sale and lease back transactions, applicable from April
1, 2024. The Company has assessed that there is no significant impact on its financial statements. On May 9, 2025, MCA notifies
the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates. These amendments aim to provide clearer
guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable.
The amendments are effective for annual periods beginning on or after April 1, 2025. The Company is currently assessing the
probable impact of these amendments on its financial statements.

Mar 31, 2024

3.21. Provisions and Contingencies

A provision is recognized when an enterprise has a present obligation (legal or constructive) as a result of past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability. The expense relating to a provision is presented in the statement of profit and loss.

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.

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of economic benefits is probable.

3.22. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

â¢ The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

â¢ Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. The EIR amortisation is included in finance income in the Statement of Profit and Loss.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at Fair Value Through Profit and Loss (FVTPL). For all other equity instruments, the Company makes an irrevocable election to present in Other Comprehensive Income (OCI) subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding

dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

â¢ The rights to receive cash flows from the asset have expired, or

â¢ The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangements and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

â¢ Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance

â¢ Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18 (referred to as ''contractual revenue receivables'' in these financial statements)

The Company follows ''simplified approach'' for recognition of impairment loss allowance on Trade receivables or contract revenue receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original Effective Interest Rate (EIR). Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of Profit and Loss. This amount is reflected under the head ''other expenses'' (or ''other income'') in the Statement of Profit and Loss.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings or payables.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Subsequent measurement

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

Derecognition

liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

3.23. Fair Value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

â¢ Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities

â¢ Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

â¢ Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.24. Recent accounting pronouncements

Ministry of Corporate Affairs ("MCAâ) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standard applicable to the Company.

Nature and Purpose of Reserves

A. Capital Reserve

Represents the amount transferred from the transferor company pursuant to Scheme of Arrangement effected in earlier years.

B. Capital Redemption Reserve

Represents the amount transferred to reserve on buy back of equity shares of the company .

C. General reserve

General Reserve is created and utilised in compliance with the provisions of the Act.

D. Retained Earnings

Retained earnings represent accumulated profits earned by the Company and remaining undistributed as on date.

E. Other Comprehensive Income

The Company has elected to recognise changes in the fair value of investments in equity instruments through other comprehensive income.

These changes are accumulated within other comprehensive income.

Note 32 Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the Financial Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. In the process of applying the Company''s accounting policies, management has made the following judgements, estimates and assumptions, which have the most significant effect on the amounts recognised in the Financial Statements:

Defined Benefit Obligations

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.

Further details about gratuity obligations are given in Note 33.

Useful lives of Property, Plant and Equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of company''s assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

Valuation of Biological Assets and Agriculture Produce

As required by Ind AS 41 - "Agricultureâ, management estimates the fair value of plucked (agriculture produce) and unplucked tea leaves (biological assets) as at the balance sheet date- through the use of valuation models and recent transaction prices. Finished goods produced from agricultural produce are valued at lower of cost (arrived at by adding the cost of conversion to the fair value of agricultural produce) and the net realisable value. For harvested or unharvested green leaves, since there is no active market for own leaves, significant judgement is required for key assumptions used in determining average prevalent selling prices of the tea leaf, average quality of the tea leaf and quantity of unplucked leaf.

Biological assets are disclosed in Note 12b to the financial statements, the valuation is discussed as a key source of estimation uncertainty and the valuation policy is disclosed in the principal accounting policies.

Impairment of non-financial assets and financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The carrying amounts of the Group''s non-financial assets /investment in associates are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the recoverable amounts of cash-generating units have been determined based on value in use calculations. These calculations require the use of estimates such as discount rates and growth rates,etc.

Expected credit losses are assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.

Estimation of tax expenses, assets and payables

Deferred tax assets are recognised for unused tax credit and on unused losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised.

Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Taxes recognized in the financial statements reflect management''s best estimate of the outcome based on the facts known at the balance sheet date. These facts include but are not limited to interpretation of tax laws of various jurisdictions where the company operates. Any difference between the estimates and final tax assessments will impact the income tax as well the resulting assets and liabilities. Refer Note 9, 10a and 10b.

Note 33 Employee Benefits Obligation (I) Defined Benefit Obligations

(a) Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees except in respect of employees at tea estates in Assam who are covered under Assam Gratuity Fund Scheme notified under the Assam Gratuity Act, 1992.. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs upon completion of 5 years of continuous service. The Company makes contribution to JSTI Gratuity Fund, which is funded defined benefit plan for qualifying employees.

Interest risk

A decrease in the interest rate on plan assets will increase the plan liability.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

Investment risk

The Gratuity plan is funded with Birla Sun Life Insurance, HDFC Life Insurance, Bajaj Allianz, India First Life Insurance and Life Insurance Corporation. The Company does not have any liberty to manage the fund provided to the Insurance Companies. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

(b) Provident fund for certain employees

In view of year-end position of the employer established provident fund and confirmation from the Trustees''s of such fund, there is no shortfall as at the year end on an aggregate basis.

(II) Defined contribution plans

a) Provident Fund and Pension

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value in the standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows below:

The table shown below analyses financial instruments carried at fair value. The different levels have been defined below:-Level 1: Quoted Prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

(b) Financial instruments at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

This section explains the judgements and estimates made in determining the fair value of the biological assets other than bearer plants that are recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its biological assets other than bearer plants into Level 2 in the fair value hierarchy, since no significant adjustments need to be made to the prices obtained from the local markets.

The fair valuation of biological assets and agricultural produce used in the production of finished goods (Tea & Sugar) involves judgements in various factors such as comparing the actual selling prices prevailing around year end for completed seasonal cycle, including technical factors which determine the quality.

(A) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in 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 other financial instruments.

Credit risk from balances with banks, term deposits, loans, investments and derivative instruments is managed by Company''s finance department. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments. The Company monitors ratings and financial strength of its counterparties on a periodic basis.

The Company''s maximum exposure to credit risk for the components of the Balance Sheet as of 31st March, 2024 and 31st March, 2023 is the carrying amounts as disclosed in Note 37.

Trade Receivables

Trade Receivables are typically unsecured and are derived from revenue earned from customers. Customer credit risk is managed by each business unit subject to the Company''s policy and procedures which involve credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding receivables are regularly monitored and an impairment analysis is performed at each reporting date on an individual basis for each major customer. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or reversal thereof.

Refer Note 6 for ageing analysis of trade receivables.

(B) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and maintains adequate sources of financing. The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments.

(C) Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EUR. The Company has foreign currency trade receivables and trade payables and is therefore exposed to foreign currency risk.

The Company uses forward exchange contracts to hedge the effects of movements in foreign exchange rates on foreign currency denominated assets and liabilities.

(a) Sensitivity

The sensitivity of profit and loss to changes in the foreign exchange rates arises mainly from foreign currency denominated financial instruments.

(ii) 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 main interest rate risk arises from short term and long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31st March 2024 and 31st March 2023, the Company''s borrowings at variable rate were mainly denominated in INR.

The Company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of changes in market interest rates.

(iv) Commodity Price Risk

The Company is exposed to the fluctuations in commodity prices for tea, sugar and chemical fertilizers. Mismatch in demand and supply, adverse weather conditions, market expectations etc., can lead to price fluctuations. For tea, the Company manages these price fluctuations by actively managing the sourcing of tea, private purchases and alternate blending strategies without impacting the quality of the blend. For sugar, to counter the raw material (sugarcane) risk, the Company has worked with development of various cane varieties with the objective to moderate the raw material cost and increase product functionality. The risk towards finished goods (Sugar) is being moderated through the various schemes of the Central Government including but not limited to introduction of Minimum Support Price (MSP), creation of buffer stock and further by operating in a well integrated business model by diversifying into co-generation and distillation, thereby utilising its by-products. For fluctuation in prices of raw materials for chemical fertilizers, the company has a dynamic sourcing strategy with regular review of demand and supply and market condition including cost of competitors.

(v) 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:

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

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

â¢ Forward contracts are made with overseas customers as well as domestic customers, in order to mitigate the financial risk in fluctuation in selling price of tea

â¢ 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.

Note 40 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company''s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company''s overall strategy remains unchanged from previous year. The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through a mixture of borrowed funds and internal fund generation. The Company''s policy is to use short-term and long-term borrowings to meet anticipated funding requirements. The Company monitors capital on the basis of the net debt to equity ratio. Total debt are non-current and current borrowings and lease liabilities as reduced by cash and cash equivalents, other bank balances and current investments. Equity comprises share capital and free reserves (total reserves excluding OCI). The following table summarizes the capital of the Company:

As per the decision of the Board of Directors in principle, to dispose/ monetize certain tea estate(s) and/ or other assets in India or abroad to strengthen the financial position, the Company is continuously in the process of giving effect to the same.

During the current year, a part of Company''s land at its tea estate has been sold, resulting into a profit of '' 5,688.15 Lakhs which is disclosed under other income. While the registry of such land is pending in the name of the buyers, the Company has given the possession of the said land to the buyers vide possession letter.

The promoters are also committed to extend the support to the Company in order to meet the liabilities and working capital requirements. Considering the measures towards monetization of assets along with expected improvement in tea, chemical and sugar businesses, the management does not anticipate any uncertainty in the Company''s ability to continue as a going concern or meeting its financial obligations.

Note 44 Scheme of Amalgamation

Pursuant to the Scheme of Amalgamation approved by the National Company Law Tribunal (NCLT) vide its order dated November 7, 2023 & consequent to filing of the order with the Registrar of Companies on December 7, 2023, "Jayantika Investment & Finance Limitedâ (JIFL) has been merged with Jayashree Finvest Private Limited (JFPL) with effect from appointed date i.e 1st April, 2023 and JIFL ceased to be subsidiary of the Company from the appointed date.

In terms of the scheme, JFPL has issued 73,07,800 Nos. 7% Non -Cumulative Compulsorily Redeemable Preference shares of '' 100 each against the Company''s holding of equity shares in JIFL amounting to '' 6,996.40 Lakhs. Loss of '' 2,003.29 Lakhs on fair valuation of above investments has been accounted for during the year ended March, 2024 which has been disclosed under Exceptional item in these standalone financial statements.

Note 45 Impairment Assessment of Sugar Division

The carrying value of net assets of the Company''s sugar business has been assessed by the management for potential indicators of impairment as per the requirements under Ind AS 36 ''Impairment of Assets''. The management has estimated the recoverable amount of the asset based on value in use method using discounted cash flow model based on available data and expected demand of goods and services. The cash flow projections including significant assumptions used in the model such as future sales volumes, prices, growth rates, discount rates, etc. have been reviewed by the management and are reasonable and appropriate in nature. Based on such assessment carried out by the management, there is no impairment of the carrying value of net assets amounting to ''26,061.19 Lakhs relating to the sugar business of the Company.

Note 46 Scheme of Arrangement for Demerger

The Board of Directors at its meeting held on January 12, 2023 has approved the Scheme of arrangement for demerger under Sections 230 to 232 of the Companies Act, 2013 with effect from April 1, 2022 for transfer of a tea estate (demerged undertaking) of the Company to its wholly owned subsidiary namely Bidhannagar Tea Company Private Limited ("Resulting Company") subject to necessary approvals. Pending such approvals from the regulatory authorities, no accounting adjustment of the same has been made in these standalone financial statements.

Note 47 Recognition of Teak Wood as Biological Assets

Vide notification dated 2nd January, 2023 by the Government of Assam, the Company had decided to avail the permission and assessed the fair value of its Biological Assets in the form of Standing trees (Teak wood) situated at its tea estates in the state of Assam and recognised ''556 Lakhs during the year ended March 31, 2024 which is disclosed under Other Income.

Note 48 Opting for Assam Gratuity Fund Scheme

The Company used to account for gratuity liability for its employees employed at tea estates in Assam in the books of accounts based on actuarial valuation. From the current year, the Company has opted "Assam Gratuity Fund Schemeâ notified under The Assam Gratuity Act,1992 for said employees and contribution is now payable towards past liabilities/ yearly contribution at the rates specified in the abovementioned scheme. The Company has received orders from Assam Tea Employees Provident Fund Organization for assessment of liability till March 31, 2024 in respect of 3 gardens and for remaining 6 gardens the same is under process. The difference of ''4,424.16 Lakhs between the liability earlier provided based on actuarial valuation till March 31, 2023 and contribution payable as stated above has been written back in the books of account which is disclosed as Exceptional Item in these standalone financial statements.

Note 49 Memorandum of Understanding for setting up educational hub on Company''s Land through SPV

The Company has entered into a Memorandum of Understanding (MOU) for setting up educational hub on the Company''s land through SPV to be formed for implementation of the said project. As per the said MOU, the Company has received security deposit of '' 2,200 Lakhs against land to be provided by the Company to said SPV which has been considered as Other Non-Current financial liabilities as on March 31, 2024.

Note 50 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

(iii) As per the information available in the records of the Ministry of Corporate Affairs (MCA), there are certain historical charges created against book debts, movable and immovable properties of the Company whose satisfaction is still pending with the Registrar of Companies (Kolkata) despite repayment of underlying loans as at March 31, 2024. The Company is in the process of filing the charge satisfaction e-form with the MCA after obtaining the no objection certificate from the chargeholders.

The Company does not have any charge which is yet to be registered with the Registrar as at 31st March, 2024.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vii) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(viii) The Company have complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

(ix) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India.

(x) There are no events or transactions after the reporting period which is required to be disclosed under Ind AS 10.

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility except in respect of accounting softwares for maintaining its books of account at the Company''s Sugar unit where audit trail feature was not enabled and audit trail was not enabled at the database level for accounting softwares to log any direct data changes. For accounting software for which audit trail feature is enabled, the audit trail facility has been operating throughout the year for all relevant transactions recorded in the software and there were no instances of audit trail feature being tampered with.

Figures of previous year have been regrouped/rearranged, wherever necessary.

The accompanying notes are an integral part of the standalone financial statements.

As per our report on even date.

For Singhi & Co For and on behalf of Board of Directors of

Chartered Accountants Jay Shree Tea & Industries Limited

Firm Registration No : 302049E

Giridhari Lal Choudhary R.K.Ganeriwala Vikash Kandoi Jayashree Mohta

Partner (President, CFO & Secretary) (Executive Director) (Chairperson & Managing Director)

Membership No: 052112 (DIN:00589438) (DIN: 01034912)

Place: Kolkata Dated: 23^rd May, 2024

____- . Vfe.

Mar 31, 2018

NOTES to financial statements for the year ended 31st March, 2018

Note 27. Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

The following reflects the income and share data used in the basic and diluted EPS computations:

	31-Mar-2018	31-Mar-2017
Net Profit for calculation of Basic and Diluted Earnings Per Share (Rs.. in Lakhs)	338.71	(987.00)
Weighted average number of shares (Nos.)	2,88,77,488	2,88,77,488
Adjustment for Treasury Shares (Nos.)	-	6,06,920
Earning per equity share 5/- each
Basic & Diluted earning per share (?)	1.17	(3.49)

Note 28. Significant accounting judgements, estimates and assumptions

Defined Benefit plans

The cost and the present value of the defined benefit gratuity plan and other post-employment leave encashment benefit are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in future. These include the determination of appropriate discount rate, estimating future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. For further details refer Note 30.

Fair value measurement of financial instruments and guarantees

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 35 for further disclosures.

Depreciation on Property, Plant and Equipment

Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the Ind AS 37. A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows. In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its financial position or profitability (Refer Note 32).

Note 29. Scheme of Arrangement

Pursuant to a Scheme of Arrangement ("the scheme") between the Company and Majhaulia Sugar Industries Private Limited (MSIPL) and Jayantika Investment & Finance Limited (JIFL) sanctioned by the Hon''ble High Court at Calcutta on 8th August 2016 under the provisions of the Companies Act 2013, Sugar Division and Jay Shree Beneficiary Trust Unit of the Company was demerged into MSIPL and JIFL respectively.

As per the scheme, the appointed date by the Hon''ble High Court at Calcutta was 1st April, 2016 and the effective date is 26th September, 2016. Following the scheme the balances had been transferred as per the Court Scheme without applying Ind AS adjustment therein.

The salient features of the Scheme were as under:

A. Demerger of Sugar Division:

i. All the assets and liabilities pertaining to the Sugar Division of the Company as on 1st April, 2016 got demerged to MSIPL (a Subsidiary).

ii. MSIPL issued and allotted 31,25,000 equity shares of Rs. 10/- each at a premium of Rs 111l/- per share to the Company in consideration of transfer of the Company''s Sugar Division.

iii. The value of the net assets of the Sugar Division as reduced by the shares as issued by MSIPL of Rs. 4,539.31 lakhs and Storage Reserve for Molasses amounting to Rs. 188.10 lakhs had been adjusted from the Capital Reserve of the Company.

B. Demerger of Jay Shree Beneficiary Trust Unit:

i. All the assets and liabilities pertaining to Jay Shree Beneficiary Trust Unit of the Company as on 1st April, 2016 got demerged to JIFL (a Subsidiary).

ii. JIFL shall issue and allot 20,00,000 equity shares of Rs. 10/- each at a premium of Rs. 256.53 per share to the Company in consideration of transfer of the Company''s Jay Shree Beneficiary Trust Unit.

iii. The value of the net assets of Jay Shree Beneficiary Trust Unit as reduced by the shares as issued by JIFL of Rs. 4,306.80 lakhs had been adjusted from the Capital Reserve of the Company.

C. The details of assets and liabilities transferred to the Resulting Company are as under:

Majhaulia Sugar Industries Private Limited (MSIPL)

ASSETS
Non- Current Assets
Property plant and equipment*	13,593.00
Capital work in Progress	292.62
	13,885.62

Current assets
Inventories	12,270.53
Stores and Spares	333.56
Cash and cash equivalents	573.30
Loans	329.32
Other current assets	1,286.34
	14,793.05
Total assets (A)	28,678.67

Non-current liabilities
Financial liabilities
Borrowings	3,707.27
Other non- current liabilities	172.48
	3,879.75

Deferred tax liability	1,297.73

Current liabilities
Financial liabilities
Trade payables	12,647.98
Other current liabilities	2,399.92
Provisions	132.60
	15,180.50
Total Liabilities (B)	20,357.98

Value of Net Assets transferred (C)	8,320.69
Value of Shares of Majhaulia Sugar Industries Private Limited received as consideration (D)	3,781.38
Net amount adjusted from Capital Reserves (Including Molasses Reserve of Rs. 188.10 lakhs) E = (C-D)	4,539.31
The details of the Contingent liabilities transferred to the Resulting Company is as under:
-Electricity duty demanded by Government of Bihar appealed in Hon''ble Supreme Court	103.10

* The Jayshree Sugar division of the Company is holding 1070.57 acre of land which is in dispute under "Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 & Rules 1963. Vide order dated 29/12/2012, the Additional collector, Bettiah had declared 970.57 acre of land as surplus and ordered for surrender of such land. The company has filed an appeal against the order of the collector and matter is subjudice. Further compensation of 146.92 acres of land which was surrendered under the above Act in earlier years is yet to be determined and shall be accounted for in the year of receipt.

	(Rs. in Lakhs)
Jayantika Investment & Finance Limited (JIFL)
ASSETS
Non- Current Assets
Financial assets
Investments	9,637.40
Total assets (A)	9,637.40
Value of Shares of Jayantika Investment & Finance Limited received as consideration (B)	5,330.60
Net amount adjusted from Capital Reserves C = (A-B)	4,306.80

Note 30. Employee Benefits Obligation

(I) Defined benefit plans (a) Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employement, of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs upon completion of 5 years of continuous service. The Company makes contribution to JSTI Gratuity Fund, which is funded defined benefit plan for qualifying employees.

(i) The principal assumptions used in determining gratuity obligations for the Company''s plans are as follows:

	31-Mar-18	31-Mar-17	1-Apr-16
Significant Actuarial Assumptions
Discount Rate	7.7%	7.5%	8%
Employee turnover	1% to 8%	1 % to 8%	1 % to 8%
Salary Escalation Rate	4%	4%	4%
Mortality Rate	IALM (2006-08) Table	IALM (2006-08) Table	IALM (2006-08) Table

Amounts Recognised in the Balance Sheet consists of:
Present value of defined benefit obligation at the year end	7,963.85	7,464.06	6,764.80
Fair Value of the Plan Assets at the year end	4,551.00	4,236.53	3,980.11
Liability Recognised in the Balance Sheet	3,412.85	3,227.53	2,784.69

Movement in present value of defined benefit obligation:
Changes in the present value of defined benefit obligation
Present value of defined benefit obligation as at year beginning	7,464.06	6,764.80	4,384.11
Current Service Cost	385.00	365.49	344.88
Past Service Cost	4.52	-	-
Interest Cost	545.12	487.36	329.09
Remeasurements (gains)/losses
Actuarial (gainsj/losses arising from changes in financial assumptions	(649.20)	(521.28)	503.67
Actuarial (gains)/losses arising from changes in experience adjustments	983.28	1,199.52	1,743.75
Increase/Decrease due to effect of any business combination	-	(298.40)	-
Benefits Paid	(768.93)	(533.43)	(540.70)
Present value of defined benefit obligation as at year end	7,963.85	7,464.06	6,764.80

	31-Mar-18	31-Mar-17	1-Apr-16
Amount recognised in Statement of Profit or Loss in respect of defined benefit plan are as follows :
Current Service Cost	385.00	365.49	344.88
Past Service Cost	4.52	-	-
Net Interest Cost/(lncome)	545.13	487.36	329.10
Expected return on plan assets	(326.21)	(298.52)	(296.34)
Components of defined benefit costs recognised in profit or loss	608.44	554.33	377.65

Amount recognised in other comprehensive income in respect of defined benefit plan are as follows:
Re-measurement of the net defined benefit obligation:-
Actuarial (gains)/losses arising from changes in financial assumptions	(649.20)	(521.28)	503.67
Actuarial (gains)/losses arising from changes in experience adjustments	983.28	1199.52	1743.75
(Gain)/Loss on plan assets (excluding amounts included in net interest cost)	42.80	(105.28)	79.60
Components of defined benefit costs recognised in Other comprehensive income	376.88	572.96	2,327.02

Movement during in the fair value of plan assets is as follow:
Opening Balance	4,236.53	3,980.10	3,704.07
Expected return	326.21	298.52	296.33
Benefits paid	(768.93)	(533.43)	(540.70)
Contributions by the Employer	800.00	600.00	600.00
Increase/Decrease due to effect of any business combination	-	(213.94)	-
Actuarial gains / (losses)	(42.81)	105.28	(79.60)
Closing Balance	4,551.00	4,236.53	3,980.10

Percentage allocation of plan assets by category	JSTI Gratuity Fund
Government Securities	2.27%	2.27%	7.77%
Debentures / bonds	95.89%	96.05%	90.58%
Fixed deposits	1.82%	1.67%	1.63%
Cash and Cash Equivalents	0.02%	0.01%	0.02%

JSTI Gratuity Fund contributes funds in Birla Sun Life Insurance, HDFC Life Insurance, Bajaj Allianz, India First Life Insurance, Life Insurance Corporation.

The Company expects to contribute Rs. 800 Lakhs to the funded defined benefit plans in fiscal year 2018-19.

Sensitivity Analysis

Below is the sensitivity analysis determined for significant actuarial assumptions for the determination of defined benefit obligations and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period while holding all other assumptions constant.

	31-Mar-18		31-Mar-17
Assumptions	Discount rate		Discount rate
Sensitivity Level	1% increase	1% decrease	1% increase	1% decrease
Impact on defined benefit obligation	(254.42)	227.22	(163.67)	157.45

	31-Mar-18		31-Mar-17
Assumptions	Future Salary increase		Future Salary increase
Sensitivity Level	1% increase	1% decrease	1% increase	1% decrease
Impact on defined benefit obligation	251.04	(278.31)	176.37	(184.70)

Risk analysis

Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined benefits plans, and management''s estimation of the impact of these risks are as follows:

Interest risk

A decrease in the interest rate on plan assets will increase the plan liability. Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase.

Investment risk

The Gratuity plan is funded with Birla Sun Life Insurance, HDFC Life Insurance, Bajaj Allianz, India First Life Insurance, Life Insurance Corporation. Company does not have any liberty to manage the fund provided to the Insurance Companies. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

(b) Provident fund for certain employees - In view of year-end position of the employer established provident fund and confirmation from the Trustees''s of such fund, there is no shortfall as at the year end.

(II) Defined contribution plans

	31-Mar-2018	31-Mar-2017
Particulars
Contribution to provident fund during the year	1,402.69	1,470.62

Note 31. Leases

Operating lease â Company as lessee (Other than land lease)

The Company''s leasing arrangement are in the nature of cancellable operating leases. The Company has taken warehouse, machineries on Operating Leases. These leases have a life of between 1 year to 15 years which is renewable by mutual consent of concerned parties. No contingent rent is payable by the Company in respect of the above leases. Some of the lease agreements have price escalation clauses. Related lease rentals have been disclosed under the head "Rent" in Note 26 of Statement of Profit and Loss. There are no restrictions placed upon the Company by such leases.

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

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

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

â¢ Forward contracts are made with overseas customers as well as domestic customers, in order to mitigate the financial risk in fluctuation in selling price of tea.

â¢ 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.

Note 36. Capital management________________________________________________________________

The Company''s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company''s overall strategy remains unchanged from previous year.The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through a mixture of borrowed funds and internal fund generation. The Company''s policy is to use short term and longterm borrowings to meet anticipated funding requirements. The Company monitors capital on the basis of the net debt to equity ratio. Net debt are long term and short term debts as reduced by cash and cash equivalents. Equity comprises share capital and free reserves (total reserves excluding OCI). The following table summarizes the capital of the Company:

	31-Mar- 2018	31 -Mar- 2017	01-Apr-2016
Borrowings	42,694.37	38,513.62	38,288.98
Less: Cash and cash equivalents	(706.61)	(624.36)	(1,099.02)
Net debt	41,987.76	37,889.26	37,189.96
Total Equity	27,769.22	26,953.71	27,132.77
Net debt to equity ratio	1.51	1.41	1.37

Note 37. First-time adoption of Ind AS

These financial statements, for the year ended 31 March 2018, are the first the Company has prepared in accordance with Ind AS.

The Company''s financial statements for the year ended 31 March 2018 have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 as described in the summary of significant accounting policies. The adoption of Ind AS has been carried out in accordance with Ind AS 101, with April 1, 2016 as the transition date. In accordance with Ind AS 101, the resulting difference between the carrying amounts of the assets and liabilities in the financial statements under both Ind AS and Previous GAAP as at the transition date have been recognized directly in equity at the transition date. An explanation of how the transition from previous GAAP to Ind AS has affected the financial position, financial performance and cash flows is set out in the following notes:

Exemptions and exceptions applied

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Previous GAAP to Ind AS.

A. Ind AS Optional Exemptions

A.I Fair valuation as deemed cost for certain items of Property, Plant and Equipment

Ind AS 101 permits an entity to elect to measure an item of property, plant and equipment at the date of transition to Ind AS at its fair value and use that fair value as its deemed cost at that date. Accordingly, the Company has elected to use the fair value of certain assets on the date of transition and designate the same as deemed cost on the date of transition. Fair value has been determined, by obtaining an external third party valuation, a level 3 valuation technique. For the remaining assets, the Company has applied Ind AS retrospectively, from the date of their acquisition.

A.2 Investments in subsidiaries, joint ventures and associates

Ind AS 101 permits a first-time adopter to measure its investments in subsidiaries, joint ventures and associates at deemed cost. The deemed cost of such an investment could be either (a) its fair value at the date of transition; or (b) previous GAAP carrying amount at that date. The option may be exercised individually and separately for each item of investment.

Accordingly, the Company has opted to measure its investments in subsidiaries and joint ventures at deemed cost, i.e. previous GAAP carrying amount, except for its investment in North Tukvar Tea Company Ltd. and Jayantika Investment & Finance Ltd. which has been measured at fair value at the date of transition.

B. Ind AS Mandatory Exemptions B.I Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVTOCI.

- Investment in debt instruments carried at amortised cost.

- Other investments carried at FVTPL.

B.2 Classification and measurement of financial assets

Ind AS 101 allows an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS. The classification of financial assets is thus based on the facts and circumstances that exist as at 1 April 2016.

Note 38. Notes to first-time Adoption

1. Inventories

(a) Work in Progress : Under previous GAAP, no valuation was done for period end harvested tea-leaf. Under Ind AS, harvested leaf is measured at its fair value less cost to sell and is classified as Work in Progress. Consequent to this change, work in progress has increased by Rs. 56.61 lakhs and Rs. 35.15 lakhs as at 1 April 2016 and 31 March 2017 respectively with corresponding increase in equity.

(b) Finished Goods : Under previous GAAP, tea stock has been valued at the lower of cost and net realizable value. Cost of inventories comprise all costs of purchase/production of green leaf, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Under Ind AS, cost of inventories comprise cost of purchase of green leaf, fair value of green leaf at the time of harvest less cost to sell, conversion cost and other costs incurred in bringing the inventories to their present location and condition. Consequent to this change, inventory of finished goods has decreased by Rs. 147.27 lakhs and Rs. 41.27 as on 1 April 2016 and 31 March 2017 with corresponding decrease in equity.

2. Biological Assets (i.e. unplucked leaf on tea bushes)

Under previous GAAP, biological assets i.e. unplucked leaf on tea bushes has neither been valued nor recognised in the accounts. Under Ind AS, unplucked leaf on tea bushes has been measured at its fair value less cost to sell.

Consequent to this change, inventory of biological assets as on 1 April 2016 has increased by Rs. 93.37 lakhs with correponding increase in equity. However, inventory of biological assets as on 31 March, 2017 has increased by Rs. 62.19 lakhs with corresponding increase in equity.

3. Fair valuation of Investments

A. Mutual Funds, Alternative Investment Fund and Bonds: Under the previous GAAP, investments were classifed as long-term investments or current investments based on the intended holding period and readability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition and subsequently in the proft or loss for the year ended 31st March, 2017. This has resulted in increase in investments by Rs. 1855.22 Lakhs as at 31st March, 2017 (1st April, 2016 - Rs.1297.31 Lakhs) with corresponding increase in equity.

B. Equity shares(other than investments in subsidiaries, associates and joint venture): Under the previous GAAP, investments in equity instruments were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, such investments (in companies other than subsidiaries, joint ventures and associates) are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition and subsequently in other comprehensive income for the year ended 31st March, 2017. This has resulted in increase in investments by Rs. 707.12 Lakhs as at 31st March, 2017 (1st April, 2016 - Rs 874.32 Lakhs) with corresponding increase in equity.

4. Investments in subsidiaries, joint ventures and associates

The Carrying value of investments in subsidiaries, associates and joint venture as on transition date have been considered as deemed cost. The company has designated investments in preference share of subsidiary (Jayantika Investment & Finance Ltd.) and debenture of subsidiary (North Tukvar Tea Company Ltd. ) as FVTPL investments. At the date of transition to Ind AS, difference between the instruments fair value and Indian GAAP carrying amount has been recognised as equity contribution in Investment. Consequent to this change, equity has been increased by Rs. 209.04 lakhs and Rs. 309.16 lakhs as on 1 April 2016 and 31 March 2017.

5. Borrowings

Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Under previous GAAP, these transaction costs were charged to profit or loss as and when incurred. Accordingly, borrowings as at 31 March 2017 have been reduced by Rs 41.70 lakhs with a corresponding increase in profit for the year.

6. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. acturial gains and losses and the return on plan assets, are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As result of this change and also due to revaluation of the gratuity liability, the equity for the year ended 1 April, 2016 decreased by Rs. 2073.83 lakhs. The profit for the year ended 31 March, 2017 for the same matter decreased by Rs. 386.42 lakhs.

7. Effect of fair valuation of land

The Company has elected to fair value land on the date of transition and designate the same as deemed cost. Consequent to this change, property plant and equipment has increased by Rs. 2,466.42 lakhs as at 1 April 2016 with corresponding increase in equity.

8. Proposed Dividend and Tax on Proposed Dividend

Under the Previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend including dividend distribution tax thereon was recognised as a provision. Under Ind AS, such dividend is recognised when the same is approved by the shareholders in the general meeting. Accordingly, the provision for proposed dividend including dividend distribution tax thereon of Rs. 305.73 Lakhs as at 1st April, 2016 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

9. Treasury shares

Under Ind AS, if an entity re-acquires its own equity instruments, those instruments (''treasury shares'') shall be deducted from equity. No gain or loss shall be recognised in profit or loss on the purchase,sale,issue or cancellation of an entity''s own equity instruments. Consideration paid or received shall be recognised directly in equity. Consequent to this, equity has been decresed by Rs. 9969.70 lakhs and Rs. 332.30 lakhs as on 1 April 2016 and 31 March 2017.

10. Deferred Tax

Under the previous GAAP, deferred tax was accounted using the income statement approach, on timing differences between the taxable profit and accounting profit for the year. Under Ind AS, deferred tax is recognised following balance sheet approach on the temporary differences between the carrying amount of asset or liability in the balance sheet and its tax base. In addition, various transitional adjustments have also led to recognition of deferred taxes on new temporary differences. Accordingly, deferred tax liabilities (net) as at 1 April 2016 have been increased by Rs. 126.70 Lakhs with a corresponding adjustment to retained earnings, and deferred tax asset (net) as at 31 March 2017 have increased by Rs. 49.94 Lakhs with a corresponding adjustment to Profit and Loss/ Other Comprehensive Income.

11. Retained Earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

12. Other Comprehensive Income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

38.1. Effect of the Transition to Ind AS

Reconciliations of Equity as per erstwhile Indian GAAP as previously reported and Ind AS is as follows:

Particulars	Notes to First time adoption	Total Other Equity
		31-Mar-17	31-Mar-16
Equity as per previous GAAP		24,454.71	34,845.62
Adjustments:
Effect of changes in value of Finished Goods (Tea)	1	(6.12)	(90.66)
Effect of change in fair value of Biological Assets	2	62.19	93.37
Effect of classification of Actuarial Loss/Gain on defined benefit plan	6	(2,460.25)	(2,073.83)
Effect of measuring Financial Instruments at fair value	3,4 & 5	2,913.20	2,380.67
Effect of revaluation of land on fair valuation	7	2,466.42	2,466.42
Effect of Treasury shares netted off with Equity	9	(332.30)	(9,969.70)
Dividend and tax on dividend (refer note 17)	8	-	305.73
Tax adjustments on above	10	49.94	(126.70)
Equity as per Ind AS		27,147.79	27,830.92

Reconciliations of net profit as per erstwhile Indian GAAP as previously reported and Ind AS is as follows:

Particulars	Notes to First time adoption	Total Comprehensive Income
		31-Mar-17
Profit/(Loss) as per Indian GAAP		(1,544.93)
Adjustments:
Effect of changes in value of Finished Goods (Tea)	1	84.54
Effect of change in fair value of Biological Assets	2	(31.18)
Effect of Actuarial Loss/Gain on defined benefit plan	6	(386.42)
Effect of measuring Financial Instruments at fair value	3,4 & 5	532.53
Tax Adjustments on above	10	176.64
Profit/(Loss) as per Ind AS		(1,168.82)

38.2. Reconciliation of cash flows for the year ended March 31, 2017

The transition from erstwhile Indian GAAP to Ind AS has not made a material impact on the statement of cash flows.

As per our report on even date
For S.R.BATLIBOI & CO. LLP	For and on behalf of Board of Directors
Chartered Accountants
Firm Registration No : 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership No: 060352	R. K. Ganeriwala	D. P. Maheshwari	S.K. Tapuriah
Place: Kolkata	(President, CFO	(Managing Director)	(Director)
Date: 29 May 2018	& Secretary)	(DIN: 02203749)	(DIN: 01065278)

Mar 31, 2017

1. The Company has only one class of issued shares i.e. Equity Shares having par value of Rs.5/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

2. The Company does not have any Holding Company/ultimate Holding Company.

3. Details of shareholders holding more than 5% shares in the Company :

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

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

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

7. No calls are unpaid by any director or officer of the Company during the year.

Security:

8. Term Loan from Banks including Foreign Currency Term Loan and External Commercial Borrowings amounting to Rs.12604.48 are secured/to be secured by equitable mortgage by deposit of title deeds of tea estates along with all immovable properties thereon ranking pari-passu, interse, with working capital lenders for tea division. Further term loan from a Bank amounting to Rs.2025.00 is secured by pledge of certain non current investments.

*The Loan has been transferred to subsidiary company during the year vide Scheme of Demerger (Refer Note 2.28.J)

9. Land of Tribeni, West Bengal - Appeal for the final determination of compensation was decided in favour of the Company by the District Court of Hooghly and final compensation determined at Rs.8.33 (Including interest Rs.0.50) against which a sum of Rs.2.05 was received in earlier years and credited to fixed assets. Rs.6.28 including Rs.1.50 released during the year 1967 against hypothecation of Khardah Land by the District Court has been shown in Current Liabilities. The Hon''ble High Court at Calcutta has decided the appeal against the Company in a earlier year by reducing the amount of compensation for which an appeal before the Hon''ble Supreme Court of India was filed. Hon''ble Supreme Court has upheld the decision of the Hon''ble High Court and accordingly the adjustments will be carried out when the amount to be refunded is ascertained.

10. Includes estimated cost of New Extension of area under tea Rs.43.01 (Previous Year Rs.136.30) capitalized during the year as certified by Management.

11. Excluding Rs.NIL (Previous Year Rs.47.17) on account of subsidy received from Tea Board under Tea Quality Upgradation & Product Diversification Scheme.

12. Includes development expenditure on Bearer Plants of Rs.624.87 which meets the definition of Property, Plant and Equipment, as per AS -10, which was hitherto charged to Statement of Profit & Loss, has been capitalized during the year ended 31st March, 2017.

13. Land, Buildings and Plant& Machinery include Rs.1.18, Rs.6.43 and Rs.0.81 respectively (Previous Year Rs.1.18, Rs.6.43, and Rs.0.81 respectively) being 5.18% share of cost of Land, Buildings and Plant & Machinery held on co-ownership by the Company with other parties.

14. Land & Plantation include Rs.29.28 (Previous year Rs.29.28) and Building include Rs.1.55 (Previous year Rs.1.55) (being cost of floor of a leasehold building) in the name of the nominees of the Company on co-ownership basis, pending execution of conveyance deed.

15. Land & Plantation includes 6 hectares for which execution of conveyance deed in favour of the company is pending.

16. Borrowing cost capitalized in accordance with Accounting Standard (AS) - 16 is Rs.32.21 (Previous Year Rs. Nil).

17. The ownership of land of a tea estate measuring 72.39 acre has been disputed by a section of local people against which stay order has been obtained from Hon''ble High Court at Calcutta. The matter is subjudice and is pending before "Land Reform and Tenancy Tribunal".

18. The Company has constructed a warehouse on leasehold land taken for a period of 15 years from Kolkata Port Trust with an option to renew the same after 15 years based on prevailing rentals at that time with a 1st right of refusal. Considering the above fact, the management is confident of renewing the same and hence life of the asset is considered 30 years as per rate prescribed under Schedule - II of the Companies Act, 2013.

19: In respect of above, future cash flows are determinable only on receipt of judgments pending at various forums/ authorities which in the opinion of the Company is not tenable and there is no possibility of any future cash outflow in case of above.

*In view of injunction granted by the Hon''ble High Court at Calcutta, no provision has been made in respect of Entry Tax imposed by Govt. of West Bengal under the "Entry of Goods into Local Area Act 2012".

âTransfer to Majhaulia Sugar Industries Private Limited pursuant to the scheme of arrangement (Refer Note 2.28.J).

20. Fringe Benefit Tax has been abolished from accounting year 2009-10. However in view of the interim stay granted by the Hon''ble High Court at Calcutta, no liability has been provided for earlier years.

21. During the year, the Company has further assessed the recoverability of Minimum Alternate Tax (MAT) for set off with future normal taxes and a sum of Rs.113.41 (previous year Rs.111.94) have been carried forward. Based on projections made by the management and current trend of working of the Company the management is virtually certain of recovering the MAT credit entitlements.

22. The agreement with Assam Tea Corporation Ltd. (ATCL) for purchase of entire green leaves of Longai and Ishabheel Tea Estates and operating the Longai Tea Factory were further renewed for the season 2017 for a period of one year by bidding through tender. A sum of Rs.198.77 (previous year Rs.262.96) is recoverable from ATCL which is being realized on a systematic basis from the payments to be made to ATCL on various grounds. (The above sum is inclusive of Rs.13.53 (previous year Rs.13.53 ) representing outstanding dues on account Amluckie Tea Estate of ATCL which shall also be recovered as mentioned above.)

23. Particulars in respect of loans and advances as per the disclosure requirement of regulation 34(3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 :

24. As per the requirements of Accounting Standard -28 on "Impairment of Assets", the company has assessed the carrying amount of the assets vis-a-vis their recoverable values and no impairment is envisaged at the balance sheet date.

25. The Company''s significant leasing agreements (as lessee) are in respect of lease for Land & Premises (residential, office, stores, godowns etc). These Leasing arrangements which are non-cancellable ranging between one month and three years generally or longer and are usually renewable by mutual agreement. The aggregate lease rentals payable are charged as Rent.

26. As per requirements of Accounting Standard-19 on leases, the following disclosures are furnished for significant operating leases as lessor. The assets were sold during the year 2015-16.

27. The Company has taken over the operation and management control of North Tukvar Tea Estate on leave & license basis till 31st March, 2019 from its subsidiary North Tukvar Tea Company Limited at an yearly charge of Rs.9.00. The annual lease charge has been waived by the subsidiary from the year 2013-2014. The results for the current financial year includes a loss of Rs.283.58 (P.Y. Rs.296.19) from the said tea estate.

28. Pursuant to a Scheme of Arrangement (the Scheme) between the Company and Majhaulia Sugar Industries Private Limited (MSIPL) and Jayantika Investment & Finance Limited (JIFL) sanctioned by the Hon''ble High Court at Calcutta on 8th August 2016 under the provisions of the Companies Act 2013, Sugar Division and Jay Shree Beneficiary Trust Unit of the Company has been demerged into MSIPL and JIFL respectively with effect from 1st April, 2016. The Scheme has been filed with Registrar of Companies, Kolkata on 26th September, 2016.

The salient features of the Scheme were as under:

Demerger of Sugar Division:

29. All the assets and liabilities pertaining to the Sugar Division of the Company as on 1st April, 2016 stands demerged to MSIPL (a Subsidiary).

30. MSIPL issued and allotted 3125000 equity shares of Rs.10/- each at a premium of Rs.111/- per share to the Company in consideration of transfer of the Company''s Sugar Division.

31. The value of the net assets of the Sugar Division as reduced by the shares as issued by MSIPL of Rs.4539.31 and Storage Reserve for Molasses amounting to Rs.188.10 has been adjusted from the Capital Reserve of the Company.

Demerger of Jay Shree Beneficiary Trust Unit:

32. All the assets and liabilities pertaining to Jay Shree Beneficiary Trust Unit of the Company as on 1st April, 2016 stands demerged to JIFL (a Subsidiary).

33. JIFL issued and alloted 2000000 equity shares of Rs.10/- each at a premium of Rs.256.53 per share to the Company in consideration of transfer of the Company''s Jay Shree Beneficiary Trust Unit.

34. The value of the net assets of Jay Shree Beneficiary Trust Unit as reduced by the shares as issued by JIFL of Rs.4306.80 has been adjusted from the Capital Reserve of the Company.

35. There was a fire in one of its tea factory which was damaged substantially. A claim has been lodged with the Insurance Company and the amount of the book value of the damaged assets of Rs.94.38 has been taken under claim receivable.

36. The Company uses forward contracts, swaps and other derivative contracts to hedge its risks relating to changes in exchange rates and interest rates. The use of such contract is consistent with the Company''s risk management policy. The Company does not use derivative contracts for speculation purposes.

37. Employee Benefits (Accounting Standard - 15)

38. Defined Contribution Plan:

The Company makes contribution towards Provident Fund, ESIC and Superannuation Fund to a defined contribution benefit plan for qualifying employees. The provident fund plan is operated partly by Regional Provident Fund Commissioner and partly by an independent Trust, ESIC by government agencies and Superannuation Fund by a trust created for the purpose. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognized Rs.1470.62 (Previous Year Rs.1478.43) for provident fund contribution, Rs.21.43 (Previous Year Rs.20.34) for ESIC and Rs.94.24 (Previous Year Rs.86.73) for Superannuation Contribution. The Contribution payables to these plans by the Company are at the rates specified in the rules of the scheme.

In keeping with the Guidance on implementing Accounting Standard (AS) 15 on Employees Benefits issued by the Accounting Standards Board of the Institute of Chartered Accountants of India (ASB Guidance), employer-established provident fund trusts are treated as Defined Benefit Plans since the company is obligated to meet interest shortfall, if any, with respect to covered employees. In view of year-end position of the fund (for covered employees) and confirmation from the Trustees'' of such fund, there is no shortfall as at the year end.

39. Defined benefit plans:

40. The Company makes contribution of gratuity to JSTI Gratuity Fund created for the purpose of qualifying employees. The scheme provides for payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

41. Certain employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 240 days).

42. The present value of defined benefit obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date.

43. Disclosure on Specified Bank Notes

During the year, the Company had Specified Bank Notes (SBNs) and other denomination notes as defined in the MCA notification, G.S.R. 308(E), dated March 31, 2017. The details of SBNs held and transacted during the period from November 8, 2016 to December 30, 2016, the SBNs and other notes as per the notification are as follows :

44. For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated November 8, 2016.

45. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure. In view of approval of scheme of arrangement for demerging the sugar division of the company by Hon''ble High court at Calcutta effective from 1st April, 2016, the results for year ended 31st March, 2017 does not include the performance of Sugar Division. Accordingly results for year ended 31st March, 2017 are not comparable with corresponding period.

Mar 31, 2016

b) The Company has only one class of issued shares i.e. Equity Shares having par value of '' 5/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

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

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

g) 6528810 (Previous year 6528810) Equity shares of '' 5/-each fully paid up have been issued pursuant to scheme of amalgamation and arrangement for consideration other than cash in preceeding five years.

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

i) No calls are unpaid by any director or officer of the Company during the year.

Security :

i) Term Loan from Banks and External Commercial Borrowings amounting to Rs. 1219885417 are secured/to be secured by equitable mortgage by deposit of title deeds of tea estates along with all immovable properties thereon ranking pari-passu, interse. with working capital lenders for tea division. Further Term Loan from a Bank amounting to Rs. 330000000 is secured by pledge of certain non current investments.

ii) Sugar Development loan fund is secured/to be secured by way of equitable mortgage of immovable/movable properties of Jay Shree Sugar division ranking pari-passu.

iii) Sugar Term Loan from a bank is secured by first charge by hypothecation of stocks, book debts/receivable and other current assets of sugar division ranking pari passu with other working capital consortium bank.

1) Land of Tribeni, West Bengal - Appeal for the final determination of compensation was decided in favour of the Company by the District Court of Hooghly and final compensation determined at Rs. 8.33 (Including interest Rs. 0.50) against which a sum of Rs. 2.05 was received in previous years and credited to fixed assets. Rs. 6.28 including Rs. 1.50 released during the year 1967 against hypothecation of Khardah Land by the District Court has been shown in Current Liabilities. The Horfble High Court at Calcutta has decided the appeal against the Company in a previous year by reducing the amount of compensation for which an appeal before the Hon''ble Supreme Court of India was filed. Horfble Supreme Court has upheld the decision of the Hon''ble High Court and accordingly the adjustments will be carried out when the amount to be refunded is ascertained.

2) Includes estimated cost of New Extension of area under tea Rs. 136.30 (Previous Year Rs. 31.53) capitalized during the year as certified.

3) Excluding Rs. 47.17 (Previous Year Rs. 7.23) on account of subsidy received from Tea Board under Tea Quality Upgradation & Product Diversification Scheme.

4) Land, Buildings and Plant & Machinery include Rs. 1.18, Rs. 6.43 and Rs. 0.81 respectively (Previous Year Rs. 1.18, Rs.6.43, and Rs.0.81 respectively) being 5.18% share of cost of Land, Buildings and Plant & Machinery held on co-ownership by the Company with other parties.

5) Land & Plantation include Rs.29.28 (Previous Year Rs.29.28) and Building include Rs.1.55 (Previous Year Rs.1.55) (being cost of floor of a leasehold building) in the name of the nominees of the Company on co-ownership basis, pending execution of conveyance deed.

6) Land & Plantation includes 6 hectares for which execution of conveyance deed in favour of the company is pending.

7) The Jayshree Sugar division of the company is holding 1070.57 acre of land which is in dispute under "Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 & Rules 1963. Vide order dated 29/12/2012, the Additional Collector, Bettiah had declared 970.57 acre of land as surplus and ordered for surrender of such land. The company has filed an appeal against the order of the collector and matter is subjudice. Further compensation of 146.92 acres of land which was surrendered under the above Act in earlier years is yet to be determined and shall be accounted for in the year of receipt.

8) Depreciation during the year includes of Rs.0.82 (Previous Year Rs.0.82) towards assets of farm.

9) Borrowing cost capitalized in accordance with Accounting Standard (AS) - 16 is Rs. Nil (Previous Year Rs.Nil).

10) The ownership of land of a tea estate measuring 72.39 acre has been disputed by a section of local people against which stay order has been obtained from Horfble High Court at Calcutta. The matter is subjudice and is pending before "Land Reform and Tenancy Tribunal".

Note : In respect of above, future cash flows are determinable only on receipt of judgements pending at various forums/ authorities which in the opinion of the Company is not tenable and there is no possibility of any future cash outflow in case of above.

D) i) Fringe Benefit Tax has been abolished from accounting year 2009-10. However in view of the interim stay granted by the Hon''ble High Court at Calcutta, no liability has been provided for earlier years.

ii) No provision for dividend and corresponding dividend distribution tax has been recognized in respect to 606920 equity shares held by a beneficiary trust in view of waiver letter received from them.

iii) During the year, the Company has further assessed the recoverability of Minimum Alternate Tax (MAT) for set off with future normal taxes and a sum of Rs.111.94 (previous year Rs. 245.36) have been carried forward. Based on projections made by the management and current trend of working of the Company the management is virtually certain of recovering the MAT credit entitlements.

E) The agreement with Assam Tea Corporation Ltd. (ATCL) for purchase of entire green leaves of Longai and Ishabheel Tea Estates and operating the Longai Tea Factory were further renewed for the season 2016 for a period of one year by bidding through tender. A sum of '' 262.96 (previous year '' 400.45) is recoverable from ATCL which is being realized on a systematic basis from the payments to be made to ATCL on various grounds. The above sum is inclusive of Rs.13.53 (previous year Rs. 80.32 ) representing outstanding dues on account Amluckie Tea Estate of ATCL which shall also be recovered as mentioned above.

F) i) Particulars in respect of Loans and advances as per the disclosure requirement of regulation 34(3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 : Apellestis

ii) The Net Worth of the subsidiary company M/s North Tukvar Tea Company Ltd. is negative. No provision in value of the investment amounting to Rs.356.20 and for advances /security deposit of Rs.388.35 is envisaged /provided, being strategic in nature.

Note: Loans/Advances to employees under various schemes of the Company (i.e. housing loan etc.) is considered outside the purview of disclosure requirements.

G) As per the requirements of Accounting Standard - 28 on "Impairment of Assets", the company has assessed the carrying amount of the assets vis-a-vis their recoverable values and no impairment is envisaged at the balance sheet date.

H) The Company has no overdue amounts due to suppliers under the Micro, Small, & Medium Enterprises Development Act, 2006 (MSMED) as at 31.03.2016. The disclosure as required under the said act is as under :-

I) i) The Company''s significant leasing agreements (as lessee) are in respect of lease for Land & Premises (residential, office, stores, godowns etc.). These Leasing arrangements which are non-cancellable ranging between one month and three years generally or longer and are usually renewable by mutual agreement. The aggregate lease rentals payable are charged as Rent.

ii) As per requirements of Accounting Standard-19 on leases, the following disclosures are furnished for significant operating leases as lessor. The property has been sold during the year.

iii) The Company has taken over the operation and management control of North Tukvar Tea Estate on leave & license basis till 31.03.2019 from its subsidiary North Tukvar Tea Company Limited at an yearly charge of '' 9.00. The annual lease charge has been waived by the subsidiary from the year 2013-2014. The results for the current financial year includes a loss of Rs.296.19 (P.Y. Rs.269.22) from the said tea estate.

J) i) During the year, the Company has sold out one of its Tea Factory "Parvati Tea Factory" having a production capacity of 7 lacs kgs approx. p.a.

ii) The scheme of demerger of Sugar Division of the Company with Majhaulia Sugar Industries Private Limited (subsidiary company) w.e.f. 1st April, 2016 has been filed with Hon''ble High Court at Calcutta. The approval for the same is awaited at the Balance Sheet date.

L) The Company uses forward contracts, swaps and other derivative contracts to hedge its risks relating to changes in exchange rates and interest rates. The use of such contract is consistent with the Company''s risk management policy. The Company does not use derivative contracts for speculation purposes.

N) Employee Benefits (Accounting Standard - 15)

i) Defined Contribution Plan:

During the year the company has recognized Rs.1478.43 (Previous Year Rs.1269.89) for provident fund contribution, Rs.20.34 (Previous Year Rs.25.60) for ESIC and Rs.86.73 (Previous Year Rs.85.29) for Superannuation Contribution. The Contribution payables to these plans by the Company are at the rates specified in the rules of the scheme.

ii) Defined benefit plans:

a) The Company makes contribution of gratuity to JSTI Gratuity Fund created for the purpose of qualifying employees. The scheme provides for payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

b) Certain employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 240 days).

Notes :

- The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply & demand in the employment market.

- The expected rate of return on Plan Assets is determined based on the portfolio of assets, existing investments along with the strategic changes in the portfolio and market scenario. The Plan Assets are diversified reasonable to maximize the return within acceptable risk parameters.

- The Company expects to contribute Rs.600.00 to its gratuity fund in 2016-17.

T) Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

Mar 31, 2014

(Rs. in Lacs) AS at As at 31st March, 2014 31st March, 2013 Contingent Liabilities not provided for in respect of :

A) Claims/Disputes/Demands not acknowledged as debts:

i) Demand from Sales Tax authority : 231.82 156.02

Certain disallowances of Sales Tax were demanded against the company and the appeals before the Commissioner/ Tribunal Appellate and revisional Board has been filed and the management is of the opinion that it will obtain full relief

ii) Income Tax demand under appeal 637.74 648.06

iii) Demand from a lessor for interest on differential rent 70.14 70.14

iv) Demand of Provident Fund Damages by the Provident Fund 24.39 24.39

Authorities, West Bengal

v) Electricity duty demanded by Government of Bihar appealed in 103.10 103.10

Hon''ble Supreme Court

vi) Demand of additional provident fund contribution on food grain 50.37 50.37 concession provided to daily rated plantation workers in Assam Tea estates till September 2012 against which stay has been obtained from Hon''ble High Court at Guwahati

B) i) Capital Commitments outstanding (Net of Advances) 858.49 86.24

ii) Bank Guarantees Outstanding (Pledge of Fixed Deposit of - 838.29

Rs. NIL) (Previous YearRs. 112.19)

iii) Corporate guarantee outstanding given to a Bank against loan 1917.44 3041.92 acquired by a subsidiary company from the bank (US$ 3.2 million) (previous year US$ 5.6 million)

iv) Corporate guarantee outstanding given to a Bank against banking 3553.26 3259.20 facility taken by a subsidiary and step down subsidiary from the bank (US$ 5.93 million) (previous year US$ 6.0 million)

C) Other Commitments

Letter of credit issued against Import of materials 11.20 301.59

D) Interest Income of Rs. 144.85 till this financial year (previous year Rs. 59.85) on an Inter-corporate Deposit of Rs. 500 has not been recognized in view of uncertainty in realization. Te Company is confident of recovering the principal.

E) i) Fringe Benefit Tax has been abolished from accounting year 2009-10. However in view of the interim stay granted by the Hon''ble High Court at Calcutta, no liability has been provided for earlier years.

ii) No provision for dividend and corresponding dividend distribution tax has been recognized in respect to 7135730 equity shares held by the beneficiary trusts in view of waiver letter received from them.

iii) During the year, the Company has further assessed the recoverability of Minimum Alternate Tax (MAT) for set off with future normal taxes and a sum of Rs. 418.43 (Previous year Rs. 418.43) have been carried forward. Based on projections made by the management and current trend of working of the Company the management is virtually certain of recovering the MAT credit entitlements.

F) In terms of the resolution passed by the shareholders on 22nd September 2011, the company has paid remuneration to Mrs. Jayashree Mohta as a Whole time Director. In view of inadequate profit during the current financial year, the said payment has exceeded the limits prescribed under Schedule XIII of the Companies Act 1956 by Rs. 42.00. An application has been made to the Central Government for necessary approval.

G) In respect to rent of a tenanted property, during the year the division bench of Hon''ble High Court at Kolkata upheld the decree awarded in favour of the landlord enhancing the rent with effect from April 2000 to March 2010. Te Special leave petition filed against the said order with the Hon''ble Supreme Court got rejected. Te Company has paid a sum of Rs. 372.54 (net of provision) towards rent and Rs. 281.35 towards interest thereupon have been charged to the statement of Profit & Loss Account in terms of decree.

H) i) The agreement with Assam Tea Corporation Ltd. (ATCL) for purchase of entire green leaves of Longai and Ishabheel Tea Estates and operating the Longai Tea Factory were further renewed for the season 2014 for a period of one year by bidding through tender. Further the company has also entered a similar agreement with ATCL for purchase of entire green leaves of Bidyanagar Tea Estate for the season 2014 by bidding through tender. A sum of Rs. 416.42 (previous year Rs. 281.20) is recoverable from ATCL which is being realized on a systematic basis from the proceeds of green leaf procured.

ii) The agreement in respect of operation of Amluckie Tea Factory and purchase of green leaf with ATCL could not be renewed for the season 2014 due to lack of economies. A sum of Rs. 80.32 (previous year Rs. 386.59) is outstanding on account of funds invested in earlier years and the same shall be refunded back and/or adjusted from the payments to be made on account of Longai, Ishabheel and Bidyanagar tea estates.

ii) The Net Worth of the subsidiary company M/s North Tukvar Tea Company Ltd. is negative. No provision in value of the investment amounting to Rs. 356.20 and for advances /security deposit of Rs. 277.45 is envisaged /provided, being strategic in nature.

Note : Loans to employees under various schemes of the Company (i.e. housing loan etc) is considered outside the purview of disclosure requirements.

J) As per the requirements of Accounting standard - 28 on "Impairment of Assets", the Company has assessed the carrying amount of the assets vis-a-vis their recoverable values and no impairment is envisaged at the balance sheet date.

K) The Company has no overdue amounts due to suppliers under the Micro, Small, & Medium Enterprises Development Act 2006 (MSMED) as at 31.03.2014. Te disclosure as required under the said act is as under :-

The above information has been determined to the extent such parties have been identified on the basis of information available with the company.

L) i) The Company''s significant leasing agreements (as lessee) are in respect of lease for Land & Premises (residential, office, stores, godowns etc). Tese Leasing arrangements which are non-cancellable ranging between one month and three years generally or longer and are usually renewable by mutual agreement. Te aggregate lease rentals payable are charged as Rent.

ii) Certain land and building has been given on operating lease to a society at a lease rental of Rs. 17.00 Per month (Previous Year Rs. 17.00 per month) for the building and Rs. 0.50 ( Previous Year Rs. 0.50) per annum for the land to be reviewed annually.

As per requirements of Accounting Standard-19 on leases, the following disclosures are furnished for significant operating leases as lessor :

iii) The Company has taken over the operation and management control of North Tukvar Tea Estate on leave & license basis till 31.03.2015 from its subsidiary North Tukvar Tea Company Limited at an yearly charge of Rs. 9.00. Te annual lease charge has been waived by the subsidiary from the year 2012-2013. Te results for the current financial year includes a loss of Rs. 77.55 (Previous year Rs. 21.84) from the said tea estate.

M) Disclosure as per Accounting Standard-29 "Provisions, Contingent Liabilities & Contingent Assets" :

The provisions for disputed statutory & obligatory liabilities are on account of cases pending with courts/concerned authorities based on estimates made by the Company considering the facts & circumstances.

N) The Company uses forward contracts, swaps and other derivative contracts to hedge its risks relating to changes in exchange rates and interest rates. Te use of such contract is consistent with the Company''s risk management policy. Te Company does not use derivative contracts for speculation purposes.

O) Employee Benefits (Accounting Standard - 15)

i) Defined Contribution Plan :

The Company makes contribution towards Provident Fund, ESIC and Superannuation Fund to a defined contribution benefit plan for qualifying employees. Te provident fund plan is operated partly by Regional Provident Fund Commissioner and partly by an independent Trust, ESIC by government agencies and Superannuation Fund by a trust created for the purpose. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognized Rs. 1185.77 (Previous Year Rs. 1097.80) for provident fund contribution, Rs. 28.81 (Previous Year Rs. 29.75) for ESIC and Rs. 78.86 (Previous Year Rs. 71.56) for Superannuation Contribution. Te Contribution payables to these plans by the Company are at the rates specified in the rules of the scheme.

In keeping with the Guidance on implementing Accounting Standard (AS) 15 on Employees Benefits issued by the Accounting Standards Board of the Institute of Chartered Accountants of India (ASB Guidance), employer-established provident fund trusts are treated as Defined Benefit Plans since the company is obligated to meet interest shortfall, if any, with respect to covered employees. In view of year-end position of the fund (for covered employees) and confirmation from the Trustees'' of such fund, there is no shortfall as at the year end.

ii) Defined benefit plans :

a) The Company makes contribution of gratuity to JSTI Gratuity Fund created for the purpose of qualifying employees. Te scheme provides for payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

b) Certain employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 240 days).

c) The present value of defined benefit obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date.

- The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply & demand in the employment market.

- The expected rate of return on Plan Assets is determined based on the portfolio of assets, existing investments along with the Strategic changes in the portfolio and market scenario. Te Plan Assets are diversified reasonable to maximize the return within acceptable risk parameters.

- The Company expects to contributeRs. 500.00 to its gratuity fund in 2014-15.

Q) Interest in Joint Venture :

The Company has 50% ownership interest in Tea Group Investment Company Limited. Te proportionate share in the assets, liabilities, income and expenses (each without elimination of the effect of transactions between the company and the joint venture) related to its in jointly controlled entity are given below:

U) Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

Mar 31, 2013

1) a) Land of Tribeni, West Bengal - Appeal for the fnal determination of compensation was decided

in favour of the Company by the District Court of Hooghly and fnal compensation determined at Rs.8.33 (Including interest Rs. 0.50) against which a sum of Rs. 2.05 was received in a previous year and credited to fxed assets. Rs. 6.28 including Rs. 1.50 released during the year 1967 against hypothecation of Khardah Land by the District Court has been shown in Current Liabilities. The Hon''ble High Court at Calcutta has decided the appeal against the Company in a previous year by reducing the amount of compensation for which an appeal before the Hon''ble Supreme Court of India was fled. Hon''ble Supreme Court has upheld the decision of the Hon''ble High Court and accordingly the adjustments will be carried out when the amount to be refunded is ascertained.

b) Land at Guwahati measuring 2 hectares and related building including furniture & fxture and related equipment has been given on registered lease to a Society for operating a School.

2) Includes estimated cost of New Extension of area under tea Rs. 27.56 (Previous Year Rs. 24.63) capitalized during the year as certifed.

3) Excluding Rs. 75.60 (Previous Year Rs. 73.44) on account of subsidy received from Tea Board under Tea Quality Upgradation & Product Diversifcation Scheme, Rs. 19.70 (Previous Year Rs. 15.42) on account of transport subsidy received against vehicles from Tea Board and Rs.285.23 (previous year Rs.NIL) on account of capital subsidy received from Cane Ministry, Bihar.

4) Land, Buildings and Plant& Machinery include Rs. 1.18, Rs. 6.43 and Rs. 0.81 respectively (Previous Year Rs. 1.18, Rs. 6.43, and Rs. 0.81 respectively) being 5.18% share of cost of Land, Buildings and Plant & Machinery held on co-ownership by the Company with other parties.

5) Land & Plantation include Rs. 29.28 (Previous year Rs. 29.28) and Building include Rs. 1.55 (Previous year Rs. 1.55) (being cost of foor of a leasehold building) in the name of the nominees of the Company on co- ownership basis, pending execution of conveyance deed.

6) Land & Plantation includes 2.431 Hectare of land at tea estates for which possession handed over for construction of schools and 6 hectares for which execution of conveyance deed in favour of the company is pending.

7) The Jayshree Sugar division of the company is holding 1070.57 acre of land which is in dispute under "Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act,1961 & Rules 1963. Vide order dated 29/12/2012, the Additional Collector,Bettiah had declared 970.57 acre of land as surplus and ordered for surrender of such land. The company has fled an appeal against the order of the collector and matter is subjudice. Further compensation of 146.92 acres of land which was surrendered under the above Act in earlier years is yet to be determined and shall be accounted for in the year of receipt.

8) Depreciation during the year includes of Rs. 0.43 (Previous year Rs. 1.15) towards assets of farm.

9) Borrowing cost capitalized in accordance with Accounting Standard (AS) - 16 is Rs. Nil (Previous Year Rs. Nil).

A) Interest Income of Rs.59.85 for the year (previous year- Rs.Nil) on an Intercorporate Deposit of Rs.500 has not been recognized in view of uncertainty in realization. The Company is confdent of recovering the principal and interest.

B) i) Fringe Beneft Tax has been abolished from accounting year 2009-10. However in view of the interim stay granted by the Hon''ble High Court at Calcutta, no liability has been provided for earlier years.

ii) No provision for dividend and corresponding dividend distribution tax has been recognized in respect to 7135730 equity shares held by the benefciary trusts in view of waiver letter received from them.

iii) During the year the Company has further assessed the recoverability of Minimum Alternate Tax (MAT) for set off with future normal taxes and a sum of Rs.45.65(net) have been further recognized. Based on projections made by the management and current trend of working of the Company the management is virtually certain of recovering the MAT credit entitlements and a sum of Rs.418.43 as on 31.03.2013 ( previous Year Rs.372.78 ) has been carried forward as MAT credit available for set off in future years.

iv) During the year the Company has further recognized deferred tax credit on capital losses amounting to Rs.112.78 (net of utilization) and the aggregate balance as at the year end is Rs.340.11. The management of the Company is confdent of realizing the same based on proft available in future years.

C) In view of clarifcation issued by the Ministry of Company Affairs vide its Circular No.25/2012 dated 09.08.2012 on Para 46A of Accounting Standard -11 on ''The Effects of Changes in Foreign Exchange Rates'', the Company has reversed fnance cost amounting to Rs.215.44 related to previous year and adjusted the same with ''Foreign Currency Monetary Item Translation Difference Account''. Out of which a sum of Rs.162.92 (including Rs.82.58 related to previous year) has been amortized during the year.

D) The Hon''ble High Court at Calcutta had passed an order in the year 2009-10 in favour of landlord of a tenanted property enhancing the rent w.e.f. from April 2000 over and above its interim order issued earlier, as a result of which an additional rent of Rs.410.82 and interest and cost thereon to the extent of Rs.182.59 accrues to the landlord. The Company has fled an appeal before the Division Bench of Hon''ble High Court at Calcutta and has obtained a stay on the execution of the decree awarded in favour of the landlord and furnished the bank guarantee for the additional rent and interest. However, in compliance to the earlier interim order the company has provided the enhanced rent and hence does not envisage any further liability on account of enhanced rent amounting to Rs.140.48 (previous year Rs.101.27) and interest thereon

E) i) The agreement with Assam Tea Corporation Ltd. (ATCL) for purchase of entire green leaves of Longai and Ishabheel tea estates and operating the Longai tea factory were renewed for (the season 2013) a period of one year by bidding through tender. A sum of Rs.281.20 (previous year Rs.350.11) is recoverable from ATCL which is being realized on a systematic basis from the proceeds of green leaf procured.

ii) During the year, the Company has entered into an agreement with Assam Tea Corporation Ltd. (ATCL) for operating Amluckie Tea Factory for the season 2013 and purchasing entire green leaves of Amluckie Tea Estate for the season 2013. The Company has funded Rs.386.59 towards working capital and capex, which will be recovered from the proceeds of green leaf to be procured and payable usage charges to Assam Tea Corporation Ltd. (ATCL) in an agreed manner.

ii) The Net Worth of the subsidiary company M/s North Tukvar Tea Company Ltd. is negative. No provision in value of the investment amounting to Rs.356.20 and for advances /security deposit of Rs.266.44 is envisaged /provided, being strategic in nature.

Note: Loans to employees under various schemes of the Company (i.e. housing loan etc) is considered outside the purview of disclosure requirements.

F) As per the requirements of Accounting standard -28 on "Impairment of Assets", the company has assessed the carrying amount of the assets vis-a-vis their recoverable values and no impairment is envisaged at the balance sheet date.

G) The Company has no overdue amounts due to suppliers under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED) as at 31.03.2013. The disclosure as required under the said act is as under :-

The above information has been determined to the extent such parties have been identifed on the basis of information available with the company.

L) i) The Company''s signifcant leasing agreements (as lessee) are in respect of lease for Land & Premises (residential, offce, stores, godowns etc). These Leasing arrangements which are non-cancellable ranging between one month and three years generally or longer and are usually renewable by mutual agreement. The aggregate lease rentals payable are charged as Rent.

ii) Certain land and building has been given on operating lease to a society at a lease rental of Rs.17.00 Per month (Previous Year Rs.17.00 per month) for the building and Rs.0.50 (Previous Year Rs.0.50) per annum for the land to be reviewed annually.

iii) The Company has taken over the operation and management control of North Tukvar Tea Estate on leave & license basis till 31.03.2015 from its subsidiary North Tukvar Tea Company Limited at an yearly charge of Rs.9.00. The annual lease charge has been waived by the subsidiary from the current year. The results for the current fnancial year include a loss of Rs.21.84 (Previous year Rs.106.78) from the said tea estate.

H) The Company uses forward contracts, swaps and other derivative contracts to hedge its risks relating to changes in exchange rates and interest rates. The use of such contract is consistent with the Company''s risk management policy. The Company does not use derivative contracts for speculation purposes.

I) Employee Benefts (Accounting Standard - 15)

i) Defned Contribution Plan:

The Company makes contribution towards Provident Fund, ESIC and Superannuation Fund to a defned contribution beneft plan for qualifying employees. The provident fund plan is operated partly by Regional Provident Fund Commissioner and partly by an independent Trust, ESIC by government agencies and Superannuation Fund by a trust created for the purpose. Under the said schemes the company is required to contribute a specifc percentage of pay roll costs in respect of eligible employees to the retirement beneft scheme to fund the benefts.

During the year the company has recognized Rs.1091.32 (Previous Year Rs.1004.06) for provident fund contribution, Rs.29.75 (Previous Year Rs.29.72) for ESIC and Rs.63.46 (Previous Year Rs.57.47) for Superannuation Contribution. The Contribution payables to these plans by the Company are at the rates specifed in the rules of the scheme.

In keeping with the Guidance on implementing Accounting Standard (AS) 15 on Employees Benefts issued by the Accounting Standards Board of the Institute of Chartered Accountants of India (ASB Guidance), employer-established provident fund trusts are treated as Defned Beneft Plans since the company is obligated to meet interest shortfall, if any, with respect to covered employees. In view of year-end position of the fund (for covered employees) and confrmation from the Trustees'' of such fund, there is no shortfall as at the year end.

ii) Defned beneft plans:

a) The Company makes annual contribution of gratuity to JSTI Gratuity Fund & other private administrated Gratuity Fund schemes created for the purpose of qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

b) Certain employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 240 days).

c) The present value of defned beneft obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date.

J) Previous year''s fgures have been regrouped / reclassifed wherever necessary to correspond with the current year''s classifcation / disclosure.

Mar 31, 2012

Security:

i) Working Capital Loan, Packing Credit in Foreign Currency and Rupee Loan from Banks of Rs 2250.00 are secured /to be secured by current assets namely stock of raw materials, work-in-progress, semi finished and finished goods, stores & spares not related to plant and machinery, bills and book debts and other movable both present and future of the company and deposit of title deeds of certain tea estates as collateral security.

ii) Rupee Loan from a bank of Rs 1000.00 is secured /to be secured by subservient charge on current assets of the company.

iii) Jay Shree Sugar division has a sanctioned working capital loan against :

(i) Hypothecation of Stocks of Sugar, Stock in process ,Stores and Spares at Majhaulia.

(ii) Second Charge on immovable properties situated at Majhaulia, as collateral security. There is no outstanding at the year end.

Note No-1 :- Fixed Assets (Contd.)

1) a) Land of Tribeni, West Bengal - Appeal for the final determination of compensation was decided in favor of the Company by the District Court of Hooghly and final compensation determined at Rs 8.33 (Including interest Rs 0.50) against which a sum of Rs 2.05 was received in a previous year and credited to fixed assets. Rs 6.28 including Rs 1.50 released during the year 1967 against hypothecation of Khardah Land by the District Court has been shown in Current Liabilities. The Hon'ble High Court at Calcutta has decided the appeal against the Company in a previous year by reducing the amount of compensation for which an appeal before the Hon'ble Supreme Court of India was filed. Hon'ble Supreme Court has upheld the decision of the Hon'ble High Court and accordingly the adjustments will be carried out when the amount to be refunded is ascertained.

b) Land at Guwahati measuring 2 hectares and related building including furniture & fixture and related equipment has been given on registered lease to a Society for operating a School.

2) Includes estimated cost of New Extension of area under tea Rs 24.63 (Previous year 1.69) capitalized during the year as certified.

3) Excluding Rs 73.44 (Previous year 93.79) on account of subsidy received from Tea Board under Tea Quality Up gradation & Product Diversification Scheme and Rs 15.42 (Previous year Rs Nil) on account of transport subsidy received against vehicles from Tea Board.

4) Land, Buildings and Plant& Machinery include Rs 1.18, Rs 6.43 and Rs 0.81 respectively (Previous year Rs 1.18,Rs 6.43, and Rs 0.81 respectively) being 5.18% share of cost of Land, Buildings and Plant & Machinery held on co-ownership by the Company with other parties.

5) Land & Plantation include Rs 29.28 (Previous year Rs 29.28) and Building include Rs 1.55 (Previous year Rs 1.55) (being cost of floor of a leasehold building) in the name of the nominees of the Company on co-ownership basis, pending execution of conveyance deed.

6) Land & Plantation includes 2.431 Hectare of land at tea estates for which possession handed over for construction of schools and 6 hectares for which execution of conveyance deed in favor of the company is pending.

7) Agricultural Land of sugar unit is under Land Ceiling dispute since 1968-69 and the matter is subjoined.

8) The entire land owned by the Sugar division is KAST KAMI Land for which, usual rent is being paid to the Bihar Govt.

9) Depreciation during the year includes Rs 1.15, (Previous year Rs 0.10) towards assets of farm.

10)Borrowing cost capitalized in accordance with Accounting Standard (AS) - 16 is Rs Nil (Previous year Rs Nil).

As at As at

2: Notes 31.03.2012 31.03.2011

A) Contingent Liabilities not provided for in respect of:- Claims/Disputes/Demands not acknowledged as debts:

i) Demand from Sales Tax authority : 184.59 260.97

Certain disallowances in the Sales Tax were confirmed against the company and an appeal before the Commissioner/ Tribunal Appellate and revisional Board has been filed and the management is of the opinion that it will obtain full relief

ii) Income Tax demand under appeal 198.17 107.82

iii) Demand from a less or for interest on differential rent 70.14 70.14

IV) Demand of Provident Fund Damages by the Provident Fund Authorities, 24.39 24.39

West Bengal

v) Electricity duty demanded by Government of Bihar appealed in Supreme 103.10 103.10 Court

vi) Demand from Custom Authorities for non fulfillments of export obligations 105.00 105.00 in respect of an erstwhile unit

vii) Demand of additional provident fund contribution on food grain concession 30.34 - provided to daily rated plantation workers in Assam Tea estates against

which stay has been obtained from Hon'ble High Court at Guwahati.

B) i) Capital Commitments outstanding (Net of Advances) 612.41 242.58

(Including shares of Joint Venture Rs 484.94(Previous year Rs Nil))

ii) Bank Guarantees Outstanding (Pledge of Fixed Deposit of Rs 111.28) 773.73 724.60 (Previous year Rs 34.62)

iii) Corporate guarantee given to a Bank against loan acquired by a subsidiary 4070.40 3568.40 company from the bank (US$ 8 million)

C) Other Commitments

Letter of credit issued against Import of materials 220.81

D) In view of initiation of recovery of outstanding dues, the company has recognized a sum of Rs 181.25 lacs (including Rs 36.25 lacs related to current year) as interest income on an inter corporate deposit which was hitherto not recognized in the books till previous year. The management is confident of recovery the entire principal of Rs 250.00 (Previous year 250.00) and interest of Rs 169.17 (Previous year 145).

E) i) Fringe Benefit Tax has been abolished from accounting year 2009-10. However in view of the interim stay granted by the Hon'ble High Court at Calcutta, no liability has been provided for earlier years.

ii) In view of the favorable order from the Hon'ble Supreme Court, the liability of dividend tax has been provided to the extent of 40% of the proposed dividend. Furthermore provision of dividend tax amounting to Rs 215.63 in excess of 40% of the proposed dividend as made in earlier years has been reversed during the year.

iii) During the year the Company has further assessed the recoverability of Minimum Alternate Tax (MAT) for set off with future normal taxes and a sum of Rs 230.16 for earlier year have been reversed. Based on projections made by the management and current trend of working of the Company the management is virtually certain of recovering the MAT credit entitlements and a sum of Rs 372.78 as on 31.03.2012 ( Previous year 407.01 ) has been carried forward as MAT credit available for set off in future years.

iv) Deferred Tax Assets has been recognized on capital loss incurred based on the profit available in future as ascertained by the management.

v) No provision for dividend and corresponding dividend distribution tax has been recognized in respect to 71,35,730 equity shares held by the beneficiary trusts in view of waiver letter received from them.

F) During the year , the Company has exercised the option under paragraph 46A(1) of Accounting Standard - 11 'The Effects of Changes in Foreign Exchange Rates' as notified by Ministry of Company Affairs vide notification dated 29/12/2011. Consequently the foreign exchange loss arising on reporting / settlement of long term foreign currency monetary items (other than related to acquisition of depreciable fixed assets) amounting to Rs 375.80 for the year ended 31st March 2012 has been accumulated in "Foreign Currency Monetary Translation Difference Account", out of which Rs 230.22 remains to be amortized as at 31.3.2012.

G) i) The Hon'ble High Court at Calcutta had passed an order in the year 2009-10 in favour of landlord of

a tenanted property enhancing the rent w.e.f. from April 2000 over and above its interim order issued earlier, as a result of which an additional rent of Rs 410.82 and interest and cost thereon to the extent of Rs 182.59 accrues to the landlord. The Company has filed an appeal before the Division Bench of Hon'ble High Court at Calcutta and has obtained a stay on the execution of the decree awarded in favour of the landlord. However, in compliance to the earlier interim order the company has paid the enhanced rent and hence does not envisage any further liability.

ii) A matter of industrial dispute against a unit with regard to 12 workers is sub juice. The company has provided an estimated liability of Rs 12.00 and does not anticipate any further liability in this regard.

iii) In earlier years 146.92 acres of land around Majhaulia related to Sugar division has been surrendered to the Government of Bihar "The Bihar Land Reforms (fixation of ceiling area and acquisition of surplus land) Act and Rules, 1961". Since the compensation in this respect has not been determined, the same will be accounted upon receipt.

H) During the year , the agreement with Assam Tea Corporation Ltd. (ATCL) for purchase of Green Leaf of Longai and I shabheel tea estates and operating the Longai tea factory was renewed for a further period of one year. The company had also agreed to fund the Working Capital and Capital Expenditure requirement. For the season 2012, the company is now required to pay to ATCL, Rs 2.55 (full figure) per kg. of made tea towards usage charges for operating the longai factory and disbursement of Rs 50 as interest free security deposit. Accordingly a sum of Rs 350.11 (previous year Rs 382.99) is recoverable from ATCL which is being realized on a systematic basis from the proceeds of green leaf procured. A sum of Rs 7.02 (Previous year 5.07) has been paid as usage charge as per the agreement.

** The Net Worth of the subsidiary company M/s North Tukvar Tea Company Ltd. is negative. No provision in value of the investment amounting to Rs 356.20 and for advances and security deposit of Rs 292.63 is envis- aged /provided, being strategic in nature.

## Repayable on demand

J) As per the requirements of Accounting standard -28 on "Impairment of Assets", the company has assessed the carrying amount of the assets vis a vis their recoverable values and no impairment is envisaged at the balance sheet date.

L) i) The Company's significant leasing agreements (as lessee) are in respect of lease for Land & Premises (residential, office, stores, godowns etc). These Leasing arrangements which are non-cancellable ranging between one month and three years generally or longer and are usually renewable by mutual agreement. The aggregate lease rentals payable are charged as Rent.

ii) Certain land and building has been given on operating lease to a society at a lease rental of Rs 17.00 per month (Previous Year Rs 15.00 per month) for the building and Rs 0.50 (Previous Year Rs 0.50) per annum for the land to be reviewed annually.

iii) The Company has taken over the operation and management control of North Tukvar Tea Estate on leave & license basis till 31.03.2015 from its subsidiary North Tukvar Tea Company Limited at an yearly charge of Rs 9.00. The lease charge for the year 2011-12 has been waived by the subsidiary. The results for the current financial year include a loss of Rs 106.78 (Previous year 76.54) from the said tea estate. The disclosures of lease rental as required under Accounting Standard-19 as lessee are:

N) The Company uses forward contracts, swaps and other derivative contracts to hedge its risks relating to changes in exchange rates and interest rates. The use of such contract is consistent with the Company's risk management policy. The Company does not use forward contracts for speculation purposes.

O) Employee Benefits (Accounting Standard - 15) i) Defined Contribution plan:

The Company makes contribution towards Provident Fund, ESIC and Superannuation Fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated partly by Regional Provident Fund Commissioner and partly by an independent Trust, ESIC by government agencies and Superannuation Fund by a trust created for the purpose. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognized Rs 954.59 (Previous year Rs707.23) for provident fund contribution, Rs 29.72 (Previous year Rs 27.51) for ESIC and Rs 64.22 (Previous year Rs 55.69) for Superannuation Contribution. The Contribution payables to these plans by the Company are at the rates specified in the rules of the scheme.

In keeping with the Guidance on implementing Accounting Standard (AS) 15 on Employees Benefits issued by the Accounting Standards Board of the Institute of Chartered Accountants of India (ASB Guidance), employer-established provident fund trusts are treated as Defined Benefit Plans since the company is obligated to meet interest shortfall, if any, with respect to covered employees. In view of year-end position of the fund (for covered employees) and confirmation from the Trustees' of such fund, there is no shortfall as at the year end.

ii) Defined benefit plans:

a) The Company makes annual contribution of gratuity to JSTI Gratuity Fund & other private administrated Gratuity Fund schemes created for the purpose of qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

b) Certain employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 240 days).

c) The present value of defined benefit obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date.

Notes :

- The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply & demand in the employment market.

- The expected rate of return on Plan Assets is determined based on the portfolio of assets, existing investments along with the Strategic changes in the portfolio and market scenario. The Plan Assets are diversified reasonable to maximize the return within acceptable risk parameters.

- Fair value of plan assets does not include any amount for companies own financial instruments or any property occupied by, or other assets used by, the company.

- The Company expects to contribute Rs 250.00 lacs to its gratuity fund in 2012-13.

R) Interest in Joint Venture:

The Company has 50% ownership interest in Tea Group Investment Company Limited.

The proportionate share in the assets, liabilities, income and expenses (each without elimination of the effect of transactions between the company and the joint venture) related to its interest in jointly controlled entity are given below:

V) The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements. Furthermore during the previous year, M.P.Chini Industries Limited was merged with the company w.e.f.01.10.2010, hence current year figures are not comparable with that of previous year.

Mar 31, 2011

As at As at

31.03.2011 31.03.2010

A) Contingent Liabilities not provided for in respect of :-

i) Outstanding Bills Discounted with Banks - 349.05

ii) Outstanding Letter of Credit 9.53 5.50

iii) Demand from Sales Tax authority:

a) Certain disallowances in the Sales Tax were confirmed 243.64 204.93 against the company and an appeal before the Appellate and Revisional Board has been filed and the management is of the opinion that it will obtain full relief.

b) Sales Tax appeal pending before Appellate Commissioner 17.33 413.76

iv) Income Tax demand under appeal 107.82 34.33

v) Demand from a lessor for interest on differential rent 70.14 70.14

vi) Refund of excise duty under appeal by the Department - 16.10

vii) Demand of Provident Fund Damages by the 24.39 24,39 Provident Fund Authorities, West Bengal

viii) Electricity duty demanded by Govt, of Bihar, Govt, appealed 103.10 - in Supreme Court

ix) Demand from custom authorities for non fulfilment of export 105.00 105.00 obligation in respect of an erstwhile unit

B) i) Capital Commitments outstanding 242.58 58.25 (net of advances Rs.100.55) (Previous year Rs.35.54)

ii) Bank Guarantees Outstanding 724.60 224.29 (Pledge of Fixed Deposit of Rs.34.62) (Previous year Rs.30.58)

iii) Corporate guarantee outstanding given to a Bank against load acquired 3568.40 - by a subsidiary company from the bank (US$8 million)

C) Interest income of Rs.36.25 for the year (till date Rs.145.00) on an Inter Corporate Deposit of Rs. 250.00 (previous year Rs.250.00) has not been recognised in view of non recovery of earlier interest. The Company is confident of recovering the principal and interest of Rs.27.21 recognised in earlier years.

D) i) Fringe Benefit Tax has been abolished from current year 2009-10. However in view of the interim stay

granted by the Hon'ble High Court at Calcutta, no liability has been provided for earlier years.

ii) In view of the favourable order from the Hon'ble Supreme Court in respect of dividend tax, the Company is depositing dividend tax to the extent of 40% of the applicable rates. However identical matter in respect of other companies are pending before the Hon'ble Supreme Court. The Company is continuing to provide dividend tax at applicable rates.

iii) During the year the Company has assessed the recoverability of Minimum Alternate Tax (MAT) for set off with future normal taxes and a sum of Rs. 241.81 for earlier year have been reversed. Based on projections made by the management and current trend of working of the Company the management is virtually certain of recovering the MAT credit entitlements and a sum of Rs.407.01 as on 31.03.2011 has been carried forward as MAT credit available for set off in future years.

iv) Deferred Tax Assets has been recognised as capital loss incurred during the year based on the profit available in future as ascertained by the management.

v) No provision for dividend and corresponding dividend distribution tax has been recognized in respect to 7135730 equity shares held by the beneficiary trusts in view of waiver letter received from them.

E) i) The Hon'ble High Court at Calcutta had passed an order in the year 2009-10 in favour of landlord of

a tenanted property enhancing the rent w.e.f. from April 2000 over and above its interim order issued earlier, as a result of which an additional rent of Rs.410.82 and interest and cost thereon to the extent of Rs. 182.59 accrues to the landlord. The Company has filed an appeal before the Division Bench of Hon'ble High Court at Calcutta and has obtained a stay on the execution of the decree awarded in favour of the landlord. However, in compliance to the earlier interim order the company has paid the enhanced rent and hence does not envisage any further liability.

ii) A matter of industrial dispute against a unit with regard to 12 workers is subjudice. The company has provided an estimated liability of Rs.12.00 and does not anticipate any more liability.

iii) In earlier years 146.92 acres of land around Majhaulia related to Sugar division has been surrendered to the Government of Bihar "The Bihar Land Reforms (fixation of ceiling area and acquisition of surplus land) Act and Rules, 1961". Since the compensation in this respect has not been determined, the same will be accounted upon receipt.

F) The Net Worth of the subsidiary company M/s North Tukvar Tea Company Ltd. is negative. No provision in value of the investment amounting to Rs.356.20 and for advances and security deposit of Rs.258.63 is envisaged/provided, being strategic in nature.

G) As reported in previous year the Company had entered into an agreement with Assam Tea Corporation Ltd. (ATCL) for purchase of green leaf of Longai and Ishabheel tea estates and operating the Longai Tea factory for the season 2010 to 2012 with effect from 01.03.2010. The company is required to pay to ATCL Re.1/- per kg. of made tea towards usage charges for operating the said factory. The Company has agreed to fund the working capital and capex requirements. Accordingly a sum of Rs.382.99 (previous year Rs.341.86) is recoverable from ATCL which is recovered on systematic basis from the proceed of green leaf procured. A sum of Rs.5.07 has been paid as usage charge as per agreement.

H) Pursuant to the Scheme of Amalgamation and Arrangement (the Scheme) between M. P. Chini Industries Limited (herein after referred as MPCIL), Parvati Tea Company Private Limited (herein after referred as PTCPL) and the Company as approved by Shareholders of the respective companies on 8th June, 2011 and sanctioned by the Hon'ble High Court at Calcutta on 10th August, 2011 under the provisions of the Companies Act, 1956;

Ã MPCIL has been merged with the Company w.e.f 01.10.2010 (being appointed date in case of MPCIL amalgamation),

Ã The Parvati tea factory (herein after referred as factory) of PTCPL has been demerged from PTCPL and merged with the Company w.e.f 01.04.2010 (being appointed date in case of PTCPL),

Ã The strategic investment division of the Company has been demerged from the Company and merged with PTCPL w.e.f. 01.04.2010 (being appointed date in case of demerger of strategic investment division),

Till the date of finalization of financial statements, the Certified copy of the order of Hon'ble High Court could not be obtained and thus not filed with the Registrar of the Companies. The accounts of the Company for the year have been prepared by giving the effect of the scheme. According to the scheme, with effect from the respective appointed dates, MPCIL, factory as well the demerged strategic investment division have carried out all their business activities in trust till the scheme becomes effective.

The Salient Features of the scheme are as under:

I. In respect of MPCIL:

(a) MPCIL is a wholly owned subsidiary of the Company and engaged in the business of cultivation of sugarcane and manufacture & sale of sugar. All the assets and liabilities of MPCIL as on the appointed date have been incorporated in the books of the Company at their respective book values on the basis of the audited accounts except the value of land, agriculture farms, buildings and plant & machinery which have been taken as Rs.11200.00 being the market value thereof and value of investment amounting to Rs.575.15 in few unlisted entities have been written off as per the scheme.

(b) In terms of the Scheme, the Company shall issue 3(three) equity shares of Rs.5(five) each fully paid up, ranking pari passu, for 1(one) equity share of Rs.10(ten) each fully paid up held by the shareholders in MPCIL.

(c) In respect of the equity shares held by the company in MPCIL, the shares which are required to be issued by the Company in terms of (b) supra shall be allotted to the Board of the Trustees of Jay Shree Beneficiary Trust to have and to hold such shares in trust exclusively for the benefit of the Company and deal with same as they deem fit. These shares have been recorded at original acquisition cost of shares of MPCIL. The difference between the consideration and value of net assets acquired amounting to Rs.9443.16 has been adjusted with capital reserve.

(d) The difference between the purchase consideration and value of net assets acquired of MPCIL, after carrying out necessary amendments and /or adjustments as per point no.(c) supra, an amount of Rs.9443.16 has been treated as capital reserve in terms of Accounting standard 14 "Accounting for Amalgamation" being amalgamation in the nature of purchase.

II. In respect to Merger of Factory and demerger of Strategic Investment Division:

(a) PTCPL is a wholly owned subsidiary of the Company and having a tea factory in the name of "Parvati Tea Factory". PTCPL is engaged in business of manufacture and sales of tea w.e.f. appointed date all the assets and liabilities of "Parvati Tea Factory" have been incorporated in the books of the Company at their respective book values on the basis of the audited accounts except the value of fixed assets which have been taken as Rs.300.00 being the market value thereof. Further as on appointed date all the assets and liabilities of Strategic investment division of the Company has been demerged and incorporated in the books of the PTCPL at their respective book values as per the scheme.

(b) In terms of the scheme, PTCPL shall issue 5,00,000 equity shares of 10(ten) each fully paid up, ranking pari passu, to the Company in consideration of above.

(c) The difference between the purchase consideration as given by PTCPL and value of net assets transferred to PTCPL, after carrying out necessary amendments and /or adjustments as per point no. (a) supra, an amount of Rs.726.25 has been treated as investment in PTCPL as prescribed under the scheme in terms of "Accounting Standard" 14 accounting for Amalgamation being amalgamation in nature of purchase.

III. Other Conditions:

(a) Shares Suspense represents 65,28,810 Equity shares of Rs.5(five) each fully paid to be issued in terms of point no. I (b) above which will rank parri passu with the existing shareholders of the Company as per the scheme with effective from appointed date. The shares will be allotted on completion of necessary formalities under the Companies Act and Listing agreement.

(b) The income accruing and expenses incurred by MPCIL, factory and strategic investment division from respective appointed date to 31.3.2011 have been properly dealt in these accounts.

(c) Pursuant to the scheme, the authorized share capital of MPCIL shall be added to the authorized capital of the Company and the increase in the authorized share capital in the current year represents the same.

(d) Pending completion of the relevant formalities of transfer of certain assets and liabilities of MPCIL & factory and strategic investment division pursuant to scheme, such assets and liabilities remain to be transferred in the name of the Company.

K) i) The Company's significant leasing agreements (as lessee) are in respect of lease for Land & Premises (residential, office, stores, godowns etc.). These Leasing arrangements which are non-cancellable ranging between one month and three years generally, or longer, and are usually renewable by mutual agreement. The aggregate lease rentals payable are charged as Rent under Schedule 20.

ii) Certain land and building has been given on operating lease to a society at a lease rental of Rs.15.00 per month (previous year Rs.15.00 per month) for the building and Rs. 0.50 (previous year Rs. 0.50) per annum for the land to be reviewed annually.

The provisions for disputed statutory & obligatory liabilities are on account of cases pending with courts/concerned authorities based on estimates made by the Company considering the facts & circumstances.

M) The Company uses forward contracts, swaps and other derivative contracts to hedge its risks relating to changes in exchange rates and interest rates. The use of such contract is consistent with the Company's risk management policy. The Company does not use forward contracts for speculation purposes.

N) Employee Benefits (Accounting Standard 15)

a) Defined Contribution Plan:

The Company makes contribution towards Provident Fund, ESIC and Superannuation Fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated partly by Regional Provident Fund Commissioner and partly by an independent Trust, ESIC by government agencies and Superannuation Fund by a trust created for the purpose. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognised Rs.707.23 for provident fund contribution (previous year Rs. 636.05), Rs.27.51 for ESIC (previous year Rs. 21.18) and Rs.55.69 for Superannuation Contribution (previous year Rs. 42.28). The Contribution payables to these plans by the Company are at the rates specified in the rules of the scheme.

In keeping with the Guidance on implementing Accounting Standard (AS) 15 on Employees Benefits issued by the Accounting Standards Board of the Institute of Chartered Accountants of India (ASB Guidance), employer-established provident fund trusts are treated as Defined Benefit Plans since the company is obligated to meet interest shortfall, if any, with respect to covered employees. According to the management, in consultation with Actuary, actuarial valuation cannot be applied to reliably measure provident fund liabilities in absence of guidance from Actuarial Society of India. Accordingly, the Company is currently not in a position to provide other related disclosures as required by the aforesaid AS 15 read with the ASB Guidance, however, having regard to the position of the fund (for covered employees) and confirmation from the Trustees' of such Fund there is no shortfall as at the year end.

b) Defined benefit plans:

i) The Company makes annual contribution of gratuity to JSTI Employees Gratuity Fund & other private administrated Gratuity Fund schemes created for the purpose of qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continous service.

ii) Certain employees of the Company are also eligible for encashment of leave upon retirement upto 30 days for each year (maximum 240 days).

iii) The present value of defined benefit obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date.

Mar 31, 2010

As at As at

1. Notes 31.03.2010 31.03.2009

A) Contingent Liabilities not provided for in respect of :-

i) Outstanding Bills Discounted with Banks 3,49,05 4,64,67

ii) Outstanding Letter of Credit 5,50 5,50

iii) Demand from Sales Tax authority:

a) Certain disallowances in the Sales Tax were confirmed against the company and an appeal before the Appellate and Revisional Board has been filed and the Management is of the opinion that it will obtain full relief. 2,04,93 1,71,10

b) Sales Tax appeal pending before Appellate Commissioner 4,13,76 92,04

iv) Income Tax demand under appeal 34,33 40,15

v) Demand from a lessor for interest on differential rent 70,14 70,14

vi) Refund of excise duty under appeal by the Department 16,10 16,10

vii) Demand of Provident Fund Damages by the Provident Fund Authorities, West Bengal 24,39 24,39

viii) Demand from custom authorities for non fulfilment of export obligation in respect of an erstwhile unit 1,05,00 1,05,00

C) Interest income of Rs.36,25 for the year (till date Rs.108,75) on an Inter Corporate Deposit of Rs. 2,50,00 (previous year Rs.2,50,00) has not been recognised in view of non recovery of earlier interest. The Company is confident of recovering the principal and interest of Rs.27,21 recognised in earlier years.

D) i) Fringe Benefit Tax has been abolished from current year. However in view of the interim stay granted

by the Honble High Court at Calcutta, no liability has been provided for earlier years.

ii) In view of the favourable order from the Honble Supreme Court in respect of dividend tax, the Company is depositing dividend tax to the extent of 40% of the applicable rates. However identical matter in respect of other companies are pending before the Honble Supreme Court the Company is continuing to provide dividend tax at applicable rates.

iii) During the year the Company has assessed the recoverability of Minimum Alternate Tax (MAT) for set off with future normal taxes. Based on projections made by the management and current trend of working in tea industry the management is virtually certain of recovering the MAT with the normal taxes payable in the future years, hence a credit for Rs.3,54,11 (including Rs. 1,00,58 for earlier years) has been taken in the accounts of current year.

E) The Honble High Court at Calcutta has passed an order in favour of land lord of a tenanted property enhancing the rent w.e.f. from April 2000 over and above its interim order issued earlier, as a result of which an additional rent of Rs.4,10,82 and interest and cost thereon to the extent of Rs. 1,82,59 accrues to the land lord. The Company has filed an appeal before the Division Bench of Honble High Court at Calcutta and has obtained a stay on the execution of the decree awarded in favour of the landlord. However, in compliance to the earlier interim order the company has paid the enhanced rent and hence does not envisage any further liability.

F) The Net Worth of the subsidiary company M/s North Tukvar Tea Company Ltd. is negative. The Holding Company has taken various measures to revive the company, hence no provision in value of the invesment amounting to Rs.3,56,20 and for advance of Rs. 1,39,62 is envisaged/provided, being strategic in nature.

G) Pursuant to the scheme of amalgamation of Jayantika Tea Co. Ltd. 4,60,460 shares were allotted to a beneficiary trust which has been allotted during the year. Dividend on these shares @ Rs.3/- per share amounting to Rs.13,81 declared for 2008-09 has been subsequently waived by the trust, accordingly reversed during the year alongwith dividend tax of Rs.2,35 written back.

H) i) During the year, the Company has established a wholly owned subsidiary in U.A.E. in the name of Birla Holdings Ltd. to explore various acquisition opportunities.

ii) The Company has entered into a consortium agreement with Rwanda Mountain Tea SARL , Rwanda to form a joint venture company Tea Group Investment Co.Ltd. at Dubai on 50:50 sharing ratio to own and operate tea gardens at Rwanda.

I) The Company is in the process of acquiring 100% shares of M.RChini Industries Ltd. at a total consideration of Rs.100,23,36 w.e.f. 01.04.2010 and has paid Rs.54,00,00 on account towards their stock of sugar and settlement of liabilities and Rs.15,00,00 paid as advance to the promoter group for acquiring shares of the said company.

J) i) The Company has entered into an agreement to acquire 100% of the shares of Parvati Tea Co. Ltd. w.e.f. 01.04.2010 having a tea factory in Tinsukia , Assam at a consideration of Rs.3,00,00 and an additional sum of Rs.25,00 on account of settlement of liabilities.

ii) The Company has entered into an agreement with Assam Tea Corporation Ltd. (ATCL) for purchase of green leaf of Longai and Ishabheel tea estates and operating the Longai Tea factory for the season 2010 to 2012 with effect from 01.03.2010. The company is required to pay to ATCL Re.1/- per kg. of made tea towards usage charges for operating the said factory . The Company has agreed to fund the working capital and Capex requirements. Accordingly the company has funded Rs.3,41,86 which will be recovered from the proceeds of green leaf to be procured in an agreed manner. The factory is likely to commence its operations shortly upon completion of renovation, hence no lease rental has accrued during the period.

M) i) The Companys significant leasing agreements (as lessee) are in respect of lease for Land & Premises (residential, office, stores, godowns etc.). These leasing arrangements which are non-cancellable ranging between one month and three years generally, or longer, and are usually renewable by mutual agreement. The aggregate lease rentals payable are charged as Rent under Schedule 20.

ii) Certain land and building has been given on operating lease to a society at a lease rental of Rs.15,00 per month (previous year Rs.14,50 per month) for the building and Rs.50 (previous year Rs.50) per annum for the land to be reviewed annually.

0) The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of such contracts is consistent with the companys risk management policy. The Company does not use forward contracts for speculative purposes.

P) Employee Benefits ( Revised Accounting Standard 15)

a) Defined Contribution Plan:

The Company makes contribution towards Provident Fund, ESIC and Superannuation Fund to a defined contribution retirement benefit plan for qualifying employees. The Provident fund plan is operated partly by Regional Provident Fund Commissioner and partly by an independent Trust, ESIC by government agencies and Superannuation Fund by a trust created for the purpose. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognised Rs.7,36,05 for provident fund contribution (previous year 6,43,11), Rs.21,18 for ESIC (previous year 20,63) and Rs.42,28 for Superannuation Contribution (previous year 36,17). The Contribution payable to these plans by the Company are at the rates specified in the rules of the scheme.

b) Defined benefit plans:

i) The Company makes annual contribution of gratuity to JSTI Employees Gratuity Fund & Group Gratuity cum Life assurance Policy with Birla Sun Life Insurance Co. Ltd. a scheme created for the purpose of qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continous service.

ii) Certain employees of the Company are also eligible for encashment of leave upon retirement upto 30 days for each year (maximum 240 days).

iii) The present value of defined benefit obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article