Notes to Accounts of Kanco Tea & Industries Ltd.

Mar 31, 2025

3.14. Provisions, Contingent Liabilities and Contingent Assets

3.14.1. Provisions

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

3.14.2. Contingent Liabilities

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

3.14.3. Contingent Assets

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.

3.15. Intangible Assets

3.15.1. Recognition and Measurement

Software which is not an integral part of related hardware, is treated as intangible asset and are stated at cost
on initial recognition and subsequently measured at cost less accumulated amortization and accumulated
impairment loss, if any.

3.15.2. Subsequent Expenditure

Subsequent costs are included in the asset''s carrying amount, only when it is probable that future economic
benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured
reliably. All other expenditure is recognized in the Statement of Profit & Loss.

3.15.3. Amortization

> Intangible assets are amortized over their estimated useful lives.

> The amortization period and the amortization method are reviewed at least at the end of each financial
year. If the expected useful life of the assets is significantly different from previous estimates, the amor¬
tization period is changed accordingly.

3.15.4. Intangible Assets under Development

Intangible Assets under development is stated at cost which includes expenses incurred in connection with
development of Intangible Assets in so far as such expenses relate to the period prior to the getting the assets
ready for use.

3.16. Biological Assets and Agricultural Produce

3.16.1. Biological Assets

Biological assets of the company comprise of un-harvested green tea leaves that are classified as current bio¬
logical assets.

The Company recognizes biological assets when, and only when, the Company controls the assets as a result
of past events, it is probable that future economic benefits associated with such assets will flow to the compa¬
ny and the fair value or cost of the assets can be measured reliably. Expenditure incurred on biological assets
is measured on initial recognition and at the end of each reporting period at its fair value less costs to sell. The
gain or loss arising from a change in fair value less cost to sell of biological assets is included in Statement of
Profit and Loss for the period in which it arises.

3.16.2. Agricultural Produce

The Company recognizes agricultural produce when, and only when, the Company controls the assets as a
result of past events, it is probable that future economic benefits associated with such assets will flow to the
Company and the fair value or the cost of the assets can be measured reliably. Agricultural produce harvested
from the Company''s biological assets are valued at fair value less cost to sell at the point of harvest. A gain or
loss arising on initial recognition of agricultural produce at fair value less cost to sell shall be included in State¬
ment of Profit & Loss for the period in which it arises.

The Company''s agricultural produce comprises of green leaves plucked from its tea estate.

3.17. Operating Segment

Operating Segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker (CODM). The CODM, who is responsible for allocating resources and assessing per¬
formance of the operating segments, has been identified as the Board of Directors. Segments are organized
based on businesses which have similar economic characteristics as well as exhibit similarities in nature of
production processes, the type and class of customer and distribution methods. Accordingly, the company
has only one segment i.e., Manufacturing of Black Tea.

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

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

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

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

> Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuar¬
ial assumptions which include mortality and withdrawal rates as well as assumptions concerning future
developments in discount rates, medical cost trends, anticipation of future salary increases and the infla¬
tion rate. The Company considers that the assumptions used to measure its obligations are appropriate.
However, any changes in these assumptions may have a material impact on the resulting calculations.

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

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

> Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropri¬
ate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment
and estimates. Where the expectation is different from the original estimate, such difference will impact
the carrying value of the trade and other receivables and doubtful debts expenses in the period in which
such estimate has been changed.

> Fair value measurement of financial Instruments: When the fair values of financial assets and finan¬
cial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active mar¬
kets, their fair value is measured using valuation techniques including the Discounted Cash Flow model.
The input to these models are taken from observable markets where possible, but where this not feasi¬
ble, a degree of judgement is required in establishing fair values. Judgements include considerations of
inputs such as liquidity risk, credit risk and volatility.

> Fair Value of Biological Assets: The fair value of Biological Assets is determined based on recent trans¬
actions entered into with third parties or available market price.

18.4Terms/ Rights attached to Equity Shares :

The Company has only one class of Ordinary Equity Share having a face value of '' 10 per share and each holder
of Ordinary Equity Share is entitled to one vote per share. The Company declares and pays dividends in Indian
Rupees. The dividend proposed by the Board of Directors (except interim dividend) is subject to the approval of
the shareholders in the Annual General Meeting. The claim of Ordinary Equity Shareholders on earnings and on
assets in the event of liquidation, follows all others, in proportion to their shareholding.

18.5Shareholding Pattern with respect of Holding or Ultimate Holding Company

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

20.3 Details of Security Given for Loan

Term Loan from Punjab National Bank is secured by hypothecation of green tea leaves, before and after pluck¬
ing, teas in process, finished tea in stock/transit or tea lying with brokers , book debts (present and future) and
by way of equitable mortgage of immovable properties and machineries of Mackeypore & Lakmijan Tea Estate
as collateral security and further guaranteed by two directors of the Company.

20.4 Refer note no. 38 for information on the carrying amounts of financial and non-financial assets pledged as secu¬
rity for the non-current borrowings.

20.5 The statements of current assets filed by the Company with the bank are in agreement with the books of ac¬
counts.

20.7 The Company has not been declared as a wilful defaulter by any bank or other lender in accordance with the
guidelines on wilful defaulters issued by the Reserve Bank of India.

25.2Terms and conditions of Short Term Borrowings

a Cash Credit from Punjab National Bank is secured by hypothecation of green tea leaves, before and after pluck¬
ing, teas in process, finished tea in stock/transit, tea lying with brokers/agents awaiting sale, other tea stocks,
book debts (present and future) arising out of sale of teas, first charge over all current assets (both present and
future) pertaining to Mackeypore and Lakmijan Tea Estate and equitable mortgage of immovable properties
and machineries of Mackeypore and Lakmijan Tea Estate as collateral security and further guaranteed by two
directors of the Company.

b Interest on Cash Credit Loan @9% p.a. and the same is repayable on demand.

c The statements of current assets filed by the Company with the bank are in agreement with the books of ac¬
counts.

d The Company has not been declared as a wilful defaulter by any bank or other lender in accordance with the
guidelines on wilful defaulters issued by the Reserve Bank of India.

The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life
Insurance Corporation (LIC) of India . The information on the allocation of the fund into major asset classes and
expected return on each major class are not readily available. The expected rate of return on plan assets is based on
market expectations, at the beginning of the period, for returns over the entire life of the related obligation.

39.2.9 Asset-Liability Matching Strategy

The company ensures that the investment positions are managed within an asset-liability matching (ALM) framework
that has been developed to achieve long-term investments that are in line with the obligations under the employee
benefit plans. Within this framework, the company''s ALM objective is to match assets to the obligations under
Gratuity Scheme by investing the entire fund with LIC of India.

The Company actively monitors how the return on funds invested with LIC of India are matching the expected cash
outflows arising from the employee defined benefit obligation. The company has not changed the processes used to
manage its risks from previous periods.

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

39.2.12 At 31st March 2025, the weighted average duration of the defined benefit obligation was 5 years (previous
year 9 years). The distribution of the timing of benefits payment i.e., the maturity analysis of the benefit payments is
as follows:

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

43.3 For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair
values.

43.4 The fair value of the financial assets and financial liabilities is included at the amount at which the instruments
could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

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

44 Fair Value Hierarchy

The following are the judgements and estimates made in determining the fair values of the financial instru¬
ments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which
fair value are disclosed in the 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 of fair value
measurement as prescribed under the Ind AS 113"Fair Value Measurement". An explanation of each level follows
underneath the tables.

44.3 During the year ended March 31, 2025 and March 31,2024, there were no transfers between Level 1 and Level 2
fair value measurements, and no transfer into and out of Level 3 fair value measurements.

44.4Explanation to the fair value hierarchy

The Company measures financial instruments, such as, quoted investments at fair value at each reporting 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. All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within the fair value hierarchy as described in Note no. 2.7

45 Financial Risk Management

The Company measures financial instruments, such as, quoted investments at fair value at each reporting 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. 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.

45.1 Credit Risk

Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial
obligations as per the terms of contract. The Company is exposed to credit risk for receivables, Cash & Cash
equivalents, financial guarantees and derivative financial instruments. None of the financial instruments of the
Company result in material concentration of credit risks.

Credit risk on receivables is minimum since sales through different mode (auction, private ) are made after judg¬
ing credit worthiness of the customers or, advance payment. The history of defaults has been minimal and out¬
standing receivables are regularly monitored. For credit risk on the loans to parties, the Company is not expect¬
ing any material risk on account of non-performance by any of the parties.

For financial instruments, the Company manages its credit risks by dealing with reputable banks and financial
institutions. Credit risk from balances with banks and financial institutions is managed by the Company''s
treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with
approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimize
the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make
payments.

45.2 Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company monitors
rolling forecast of its liquidity position on the basis of expected cash flows. The Company''s approach is to ensure that
it has sufficient liquidity or borrowing headroom to meet its obligations at all point in time. The Company has
sufficient short-term fund based lines, which provides healthy liquidity and these carry highest quality credit rating
from reputed credit rating agency.

45.2.1 Fund Management

Management monitors rolling forecasts of the Company''s liquidity position (including the undrawn credit facilities
extended by banks and financial institutions) and Cash & Cash equivalents on the basis of expected cash flows. In
addition, the Company''s liquidity management policy involves projecting cash flows and considering the level
of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external reg¬
ulatory requirements and maintaining debt financing plans.

45.3 Market Risk

45.3.1 Foreign Exchange Risk

The Company operates in domestic market and it doesn''t have any foreign associate, subsidiary etc. The Company is

therefore not exposed to foreign exchange risk arising from foreign currency transactions.

a Exposure to Currency risk- Nil

b Sensitivity Analysis

Since, the Company doesn''t have material foreign currency operations, the analysis is not reported.

45.3.2 Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation, on the following:

a Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rate of interest.
However, Company does not have any interest bearing financial asset or liability at the end of the financial year
ended 31st March 2025.

b The interest rate risk can also impact the provision for retiral benefits. The Company generally utilizes variable
rate borrowings and therefore subject to interest rate risk, as both the carrying amount and the future cash flows
will fluctuate because of change in the market interest rates.

49 Capital Management

The Company''s objective for capital management is to maximize shareholder wealth, safeguard business conti¬
nuity and support the growth of the Company. The Company determines the capital management requirement
based on annual operating plans and long-term and other strategic investment plans. The funding requirements
are met through optimum mix of borrowed and own funds.

Notes-

(i) The change in ratio resulted from losses suffered by the company during the year under review.

51 On the basis or notification dated 28th June, 2023 by Govt of Assam providing 3 year tax holiday on Agricultural
Income Tax, no provision on agricultural income tax has been made for the year ended 31st March, 2025.

52 There are no transactions that have been surrendered or disclosed as income during the year In the tax assess¬
ments under the Income Tax Act,1961, which have not been recorded in the books of account.

53 The company does not have any transactions or relationships with any companies struck off under Section 248
of the Companies Act,2013 or Section 560 of the Companies Act,1956.

54 The other prescribed clauses as prescribed under other regulatory information for the year ended 31st March,
2025 being not applicable have not been given.

55 Previous year figures have been re-classified/re-grouped to confirm the presentation requirements under IND
AS and the requirements laid down in Division-II of the Schedule-III of the Companies Act, 2013.

The Notes are an integral part of the Financial Statements
As per our Report annexed of even date

For NKSJ & ASSOCIATES

Chartered Accountants

Firm Registration No. 329563E U. KANORIA

UDIN: 25234454BMLGZA4007 Chairman & Managing Director

(DIN: 00081108)

CA. Sneha Jain

Partner C. KABRA S. K. PARHI

Membership No. 234454 Company Secretary Chief Financial Officer

Kolkata

Dated the 30th day of May, 2025

---

Mar 31, 2024

3.14. Provisions, Contingent Liabilities and Contingent Assets

3.14.1. Provisions

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

3.14.2. Contingent Liabilities

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

3.14.3. Contingent Assets

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.

3.15. Intangible Assets

3.15.1. Recognition and Measurement

Software which is not an integral part of related hardware, is treated as intangible asset and are stated at cost on initial recognition and subsequently measured at cost less accumulated amortization and accumulated impairment loss, if any.

3.15.2. Subsequent Expenditure

Subsequent costs are included in the asset''s carrying amount, only when it is probable that future economic benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured reliably. All other expenditure is recognized in the Statement of Profit & Loss.

3.15.3. Amortization

> Intangible assets are amortized over their estimated useful lives.

> The amortization period and the amortization method are reviewed at least at the end of each financial year. If the expected useful life of the assets is significantly different from previous estimates, the amortization period is changed accordingly.

3.15.4. Intangible Assets under Development

Intangible Assets under development is stated at cost which includes expenses incurred in connection with development of Intangible Assets in so far as such expenses relate to the period prior to the getting the assets ready for use.

3.16. Biological Assets and Agricultural Produce 3.16.1. Biological Assets

Biological assets of the company comprise of un-harvested green tea leaves that are classified as current biological assets.

The Company recognizes biological assets when, and only when, the Company controls the assets as a result of past events, it is probable that future economic benefits associated with such assets will flow to the company and the fair value or cost of the assets can be measured reliably. Expenditure incurred on biological assets is measured on initial recognition and at the end of each reporting period at its fair value less costs to sell. The gain or loss arising from a change in fair value less cost to sell of biological assets is included in Statement of Profit and Loss for the period in which it arises.

3.16.2. Agricultural Produce

The Company recognizes agricultural produce when, and only when, the Company controls the assets as a result of past events, it is probable that future economic benefits associated with such assets will flow to the Company and the fair value or the cost of the assets can be measured reliably. Agricultural produce harvested from the Company''s biological assets are valued at fair value less cost to sell at the point of harvest. A gain or loss arising on initial recognition of agricultural produce at fair value less cost to sell shall be included in Statement of Profit & Loss for the period in which it arises.

The Company''s agricultural produce comprises of green leaves plucked from its tea estate.

3.17. Operating Segment

Operating Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors. Segments are organized based on businesses which have similar economic characteristics as well as exhibit similarities in nature of production processes, the type and class of customer and distribution methods. Accordingly, the company has only one segment i.e., Manufacturing of Black Tea.

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

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

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

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

> Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

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

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

> Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

> Fair value measurement of financial Instruments: 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 including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this 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.

> Fair Value of Biological Assets: The fair value of Biological Assets is determined based on recent transactions entered into with third parties or available market price.s

20.4 Details of Security Given for Loan

Term Loan from Punjab National Bank is secured by hypothecation of green tea leaves, before and after plucking, teas in process, finished tea in stock/transit or tea lying with brokers , book debts (present and future) and by way of equitable mortgage of immovable properties and machineries of Mackeypore & Lakmijan Tea Estate as collateral security and further guaranteed by two directors of the Company.

20.5 Refer note no. 38 for information on the carrying amounts of financial and non-financial assets pledged as security for the non-current borrowings.

20.6 The statements of current assets filed by the Company with the bank are in agreement with the books of accounts.

20.7 The Company has not been declared as a wilful defaulter by any bank or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

25.2 Terms and conditions of Short Term Borrowings

a Cash Credit from Punjab National Bank is secured by hypothecation of green tea leaves, before and after plucking, teas in process, finished tea in stock/transit, tea lying with brokers/agents awaiting sale, other tea stocks, book debts (present and future) arising out of sale of teas, first charge over all current assets (both present and future) pertaining to Mackeypore and Lakmijan Tea Estate and equitable mortgage of immovable properties and machineries of Mackeypore and Lakmijan Tea Estate as collateral security and further guaranteed by two directors of the Company.

b Interest on Cash Credit Loan @9.25% p.a. and the same is repayable on demand.

c The statements of current assets filed by the Company with the bank are in agreement with the books of

accounts.

d The Company has not been declared as a wilful defaulter by any bank or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

39.2 Defined Benefit Plan:

The following are the types of defined benefit plans

39.2.1 Gratuity Plan

The Company''s gratuity scheme, a defined benefit plan is as per the Payment of Gratuity Act, 1972, covers the eligible employees and is administered through a gratuity fund trust. Such gratuity fund, whose investments are managed by LIC of India, make payments to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment, of an amount based on the respective employee''s salary and tenure of employment. Vesting occurs upon completion of five years of continuous service. The amount of gratuity payable is the proportionate salary for 15 days multiplied for the number of years of service based on the 26 days average salary computed on the basis of last drawn basic salary per month.

44.4 Explanation to the fair value hierarchy

The Company measures financial instruments, such as, quoted investments at fair value at each reporting 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. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy as described in Note no. 2.7.

45 Financial Risk Management

The Company measures financial instruments, such as, quoted investments at fair value at each reporting 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. 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.

45.1 Credit Risk

Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial obligations as per the terms of contract. The Company is exposed to credit risk for receivables, Cash & Cash equivalents, financial guarantees and derivative financial instruments. None of the financial instruments of the Company result in material concentration of credit risks.

Credit risk on receivables is minimum since sales through different mode (auction, private ) are made after judging credit worthiness of the customers or, advance payment. The history of defaults has been minimal and outstanding receivables are regularly monitored. For credit risk on the loans to parties, the Company is not expecting any material risk on account of non-performance by any of the parties.

For financial instruments, the Company manages its credit risks by dealing with reputable banks and financial institutions. Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments. The carrying value of the financial assets represent the maximum credit exposure. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

45.2 Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company monitors rolling forecast of its liquidity position on the basis of expected cash flows. The Company''s approach is to ensure that it has sufficient liquidity or borrowing headroom to meet its obligations at all point in time. The Company has sufficient short-term fund based lines, which provides healthy liquidity and these carry highest quality credit rating from reputed credit rating agency.

45.2.1 Fund Management

Management monitors rolling forecasts of the Company''s liquidity position (including the undrawn credit facilities extended by banks and financial institutions) and Cash & Cash equivalents on the basis of expected cash flows. In addition, the Company''s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans. .

45.2.2 Maturity Analysis for financial liabilities

The following are the remaining contractual maturities of financial liabilities as at 31st March 2024. The amounts are gross and undiscounted and include estimated interest payments and exclude the impact of netting agreements.

49 Capital Management

The Company''s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through optimum mix of borrowed and own funds.

Notes-

(i) The change in ratio resulted from decrease in earnings.

(ii) The change in ratio resulted from increase in turnover.

(iii) The change in ratio resulted from decrease in value of purchase due to lower production of made tea during the year under review.

(iv) The change in ratio resulted from gain on sale of investments made during the year.

51 On the basis or notification dated 28th June, 2023 by Govt of Assam providing 3 year tax holiday on Agricultural Income Tax, no provision on agricultural income tax has been made for the year ended 31st March, 2024.

52 There are no transactions that have been surrendered or disclosed as income during the year In the tax assessments under the Income Tax Act,1961, which have not been recorded in the books of account.

53 The company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act,2013 or Section 560 of the Companies Act,1956.

54 The other prescribed clauses as prescribed under other regulatory information for the year ended 31st March, 2024 being not applicable have not been given.

55 Previous year figures have been re-classified/re-grouped to confirm the presentation requirements under IND AS and the requirements laid down in Division-II of the Schedule-III of the Companies Act, 2013.

The Notes are an integral part of the Financial Statements

As per our Report annexed of even date For NKSJ & ASSOCIATES

Chartered Accountants Firm Registration No. 329563E UDIN: 24234454BKCISS5451

U. Kanoria

CA. Sneha Jain Chairman & Managing Director

Partner (DIN: 00081108)

Membership No. 234454

Kolkata C. Kabra S. K. Parhi

Dated the 30th day of May, 2024 Company Secretary Chief Financial Officer

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Mar 31, 2017

Terms and rights attached to Equity Shares

The Company has only one class of Equity Share having par value of Rs. 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of Equity Share will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

Terms and rights attached to Preference Shares

During the year ended 31st March, 2004, the Company had issued 40,000 7% Non Cumulative Redeemable Preference Shares of Rs. 100/- each fully paid up. Preference Shares carry a dividend of 7%, only when it is declared by the Company. The dividend is paid by the Company in Indian Rupees only. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Each holder of Preference Share is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to Preference Shares.

The 7% Non Convertible Preference Shares will be redeemed in the year ended 31st March, 2023 at par value only. In the event of liquidation of the company before redemption of Preference Shares, the holder of Preference Shares will have priority over Equity Shares in the payment of dividend and repayment of capital.

1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

2. Contingent Liabilities

Claims, disputes and demands not acknowledged as debts:

3. Demand of Rs.7,94,960/- (P.Y. Rs.7,94,960/-) for F.Y. 2009-10 has been raised under West Bengal Value Added Tax Rules, 2005 by Joint Commissioner of Commercial Taxes, for which an appeal has been filed on 18/03/2014 before the West Bengal Commercial Taxes Appellate & Revision Board, West Bengal.

4. Income Tax demand of Rs. 1,24,257/- for the A.Y. 2010-11 has been raised by the I.T.O. Ward 4(4) after giving effect to the order of CIT (Appeals)-IV passed under section 250 of the Income Tax Act, 1961 against which the Company has filed a rectification application.

5 The Company has paid Rs.24,72,214/- as interim measure as per order of Hon’ble High Court at Guwahati against debit note raised by GAIL (India) Limited for Rs. 68,80,820/- (P.Y. Rs.68,80,820/-). Matter is now pending with Hon’ble Supreme Court.

6. Demand of Rs.35,684/- has been raised vide order u/s 143(3) of the Income Tax Act,1961 for the A.Y 2012-13 dated 13/06/2014 and an appeal against the same has been filed with CIT (Appeal)-2, Kolkata.

7. Demand of Rs.100/- has been raised vide order u/s 143(3) of the Income Tax Act,1961 for the A.Y 2013-14 dated 20/01/2016 and an appeal against the same has been filed with CIT (Appeal)-2, Kolkata.

The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

8. Commitments

Outstanding commitment in respect of Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. Rs.22,07,139/- (Previous Year Rs.22,68,177/-).

9. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for amount to Rs. 51,48,910/-/- (Previous Year Rs. 3,60,000/-)

10. Sundry Creditors do not include any amount due (Previous Year Rs. Nil) from suppliers as defined under the “Micro Small & Medium Enterprises Development Act, 2006” as per the information available with the Company. Hence disclosures regarding a) Amount due and outstanding to suppliers as at the accounting period, b) Interest paid during period, c) Interest payable at the end of the accounting period and d) Interest accrued at the end of the accounting period has not been disclosed or provided.

The Estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in employment market.

The past service cost has been recognized as Rs.71,67,366/- as Ryam Commerce & Plantations Limited has transferred Rs. 63,00,000/- as current liabilities on account of Gratuity in terms of Business Transfer Agreement dated 29th March, 2017. The said Rs. 63,00,000/- has been subtracted from the total purchase consideration payable to Ryam Commerce & Plantations Limited.

11. Amount recognized as an expense in respect of Compensated Leave Absences is Rs.2,37,113/- and (Previous Year Rs. 3,52,711/-) based on actuarial valuation. During the year ended 31st March, 2017 the Company has paid Rs. 1,64,545/- and (Previous Year Rs. 1,55,890/-) as actual leave encashment.

Note: Encashment of leave is payable on death whilst in service, withdrawal from service or from retirement from services. In the view of salary growth rates have been used to project the salary at the time when encashment of leave is assumed to take place. While making actuarial valuations certain assumptions, such as mortality rates, withdrawal rates, retirement age, etc. have been taken into consideration by the actuarial valuer. The Method used for such valuation is projected Unit Credit Method, which are in compliance with AS-15 (Revised 2005) as issued by ICAI and Guidance Note 26 issued by Institute of Actuaries of India.

12. SEGMENT REPORTING

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 “Segment Reporting” are not attracted.

13. The Company has made a provision of Rs.6,03,759/- (Previous Year Rs.7,92,306/- in its books of accounts towards contribution for Corporate Social Responsibility under Section 135 of the Companies Act, 2013. Out of Rs.10,11,802/- earmarked for CSR activities in F.Y. 2016-2017 and F.Y. 2015-2016, Rs.8,08,000/- has been incurred for activities specified in Schedule VII of the Companies Act, 2013 in the financial year 2016-2017 through “Kanco CSR Trust”.

14. CORPORATE INFORMATION

Kanco Tea & Industries Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed at ‘‘The Calcutta Stock Exchange Limited’’ and permitted to be traded at the ‘‘Bombay Stock Exchange’’. The Company is engaged in the manufacturing and selling of black tea. The Company caters to only the domestic market. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirement of HACCP (Hazard Analysis and Critical Point), ISO 22000 Food Safety Management. The quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirements of ISO 9001:2008. Mackeypore Tea Estate & Lakmijan Tea Estate has been issued verification certificate under trusttea code for sustainable tea in India.

15. During the year, the Company has acquired Bamonpookrie Tea Estate from Ryam Commerce & Plantations Limited (herein after referred as Seller) in terms of Business Transfer Agreement dated 29th March, 2017 executed between the Company and Seller at a purchase consideration of Rs.28,50,00,000/-(Rupees Twenty Eight Crores Fifty Lakhs Only) and the undernoted assets have been shown as addition to Property, Plant & Equipments in Notes on Financial Statements No.11 as given below: -

16. In accordance with revised accounting standard AS-10 on “Property, Plant & Equipment (PPE)” effective from 1st April, 2016, Bearer Plants have been recognized as an item of PPE and has been depreciated over their useful life resulting an additional depreciation amounting to Rs.10,81,363/- for the year ended 31st March, 2017. Expenditure on replanting of old tea bushes have been capitalized to the tune of Rs.47,03,805/- during the year ended 31st March, 2017 to comply with the requirements of revised AS-10, which was hitherto charged to Statement of Profit & Loss.

During the year due to change in accounting policy in respect of Property, Plant & Equipment, corresponding changes as depreciation, profit for the year has been affected as below: -

17. During the year, profit has increased by Rs. 47,03,805/- on account of replanting expenses, capitalized due to change in AS-10 on “Property, Plant & Equipment (PPE)” effective from 1st April, 2016

18. During the year, profit has decreased by Rs.10,81,363/- on account of depreciation on bearer plants as per revised AS-10 on “Property, Plant & Equipment (PPE)” effective from 1st April, 2016.

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Mar 31, 2016

Terms and rights attached to Equity Shares

The company has only one class of Equity Share having par value of '' 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of Equity Share will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

Terms and rights attached to Preference Shares

During the year ended 31st March, 2004, The Company had issued 40,000 7% Non Cumulative Redeemable Preference Shares of '' 100/- each fully paid up. Preference Shares carry a dividend of 7% ,only when it is declared by the company. The dividend is paid by the company in Indian Rupees only. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Each holder of Preference share is entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to Preference Shares.

The 7% Non Convertible Preference Shares will be redeemed in the year ended 31st March,2023 at par value only. In the event of liquidation of the company before redemption of Preference Shares, the holder of Preference Shares will have priority over Equity Shares in the payment of dividend and repayment of capital.

Nature of security

Term Loan from Bank is secured by hypothecation of green tea leaves, before and after plucking, teas in process, finished tea in stock/transit or tea lying with brokers, book debts (present and future) and by way of equitable mortgage of immovable properties and machineries of tea estates as collateral security and further guaranteed by a director.

Term Loan in the nature of Car Loan is secured by Hypothecation of Motor Cars.

Loan from Tea Board is secured by hypothecation of tea crops and mortgage of title deeds of Tea Estates in favour of Tea Board ranking subsequent to charge created in favor of Punjab National Bank.

Notes on Unsecured Loans

Unsecured Loan from the related parties are outstanding for a period of more than twelve months. Repayment of these loans will be made beyond 12 months from the date of reporting.

Cash credit from bank is secured by hypothecation of green tea leaves, before and after plucking, teas in process, finished tea in stock/transit or tea lying with brokers, book debts (present and future) and by way of equitable mortgage of immovable properties and machineries of tea estates as collateral security and further guaranteed by a director.

1. Contingent Liabilities and Commitments (To the extent not provided for)

a) Contingent Liabilities

Claims, disputes and demands not acknowledged as debts:

i) Demand of Rs, 7,94,960/- (P.Y. Rs, 7,94,960/-) for F.Y. 2009-10 has been raised under West Bengal Value Added Tax Rules,2005 by Joint Commissioner of Commercial Taxes,for which an appeal has been filed on 18/03/ 2014 before the West Bengal Commercial Taxes Appellate & Revision Board, West Bengal.

ii) Income Tax demand of Rs, 1,24,257/- for the A.Y. 2010-11has been raised by the I.T.O. Ward 4(4) after giving effect to the order of CIT (Appeals)-IV passed under section 250 of the Income Tax Act, 1961 against which the Company has filed a rectification application.

(iii) The Company has paid Rs, 24,72,214/- as interim measure as per order of Hon’ble High Court at Guwahati against debit note raised by GAIL (India) Limited for Rs, 68,80,820/- (P.Y. Rs, 68,80,820/-). Matter is now pending with Hon’ble Supreme Court.

(iv) Demand of Rs, 35,684/- has been raised u/s 143(3) of The Income Tax Act,1961 for the A.Y 2012-13 on date 13/06/2014 and an appeal against the same has been filed with CIT (Appeal)-2, Kolkata.

(v) Demand of Rs, 100/- has been raised u/s 143(3) of The Income Tax Act,1961 for the A.Y 2013-14 on date 20/ 01/2016 and an appeal against the same has been filed with CIT (Appeal)-2, Kolkata.

The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

b) Commitments

Outstanding commitment in respect of Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. Rs, 22,68,177/- (Previous Year Rs, 5,34,325/-).

2. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for amount to Rs, 3,60,000/- (Previous Year Rs, Nil)

3. Sundry Creditors do not include any amount due (Previous Year Rs, Nil/-) from suppliers as defined under the “Micro Small & Medium Enterprises Development Act,2006” as per the information available with the Company. Hence disclosures regarding a) Amount due and outstanding to suppliers as at the accounting period, b)Interest paid during period, c) Interest payable at the end of the accounting period and d) Interest accrued at the end of the accounting period has not been disclosed or provided.

4. Disclosure pursuant to Accounting Standard -15 (Revised) “Employee Benefits”

a. Defined Contribution Plans :

Contribution to Defined Contribution Plans, recognized as expense for the year included in “Employee Benefit Expense” in Note-24 to the statement of Profit & Loss Account is as under :

The Estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in employment market. vi. Amount recognized as an expense in respect of Compensated Leave Absences is Rs, 3,52,711/- and [Previous Year Rs, 1,50,592/-] based on actuarial valuation. During the year ended 31st March,2016 the company has paid Rs, 1,55,890/- and (Previous Year Rs, 2,78,209/-) as actual leave encashment.

Note: Encashment of leave is payable on death whilst in service, withdrawal from service or from retirement from services. In the view of salary growth rates have been used to project the salary at the time when encashment of leave is assumed to take place. While making actuarial valuations certain assumptions, such as mortality rates, withdrawal rates and retirement age etc . have been taken into consideration by the actuarial value. The Method used for such valuation is projected Unit Credit Method, which are in compliance with AS-15 (Revised 2005) as issued by ICAI and Guidance Note 26 issued by Institute of Actuaries of India.

5. Segment Reporting

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 “Segment Reporting” are not attracted.

6. Related Party Disclosures

Related party disclosures, as required by AS-18 “Related Party Disclosures” are given below :-

7. Relationships :

(i) Key Management Personnel and their relatives :

Mrs. Anuradha Kanoria

Mr. Umang Kanoria Ms. Stuti Kanoria Mr. Satvik Kanoria Stuti Welfare Trust Satvik Welfare Trust Umang Kanoria H.U.F.

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence :

B. T. Investments Private Limited

Cosmos Resources Private Limited E. T. Resources Private Limited Faction Investments Private Limited Innova Properties Private Limited Kanco Enterprises Limited Milan Agencies Private Limited Nidhi Private Limited

S. T. Investment Private Limited Suryasakti Commodities Private Limited Kanco CSR Trust

(iii) Subsidiary

Winnow Investments and Securities Private Limited

8. The following transactions were carried out with the related parties in the ordinary course of business. Details relating to parties referred to in item 1(i), 1(ii) and 1(iii) above:

9. The company has assessed the carrying amount of the assets vis a vis their recoverable values and no impairment has been envisaged at the balance sheet date as per the requirements of Accounting Standard -28 on “Impairment of Assets”.

10. In terms of Accounting Standard 22, Deferred Tax Liability reversed and recognized during the year is Rs,4,65,245 (Previous Year DTL reversed is Rs,10,72,782). Consequently, the net DTL as the Year end stands Rs,19,64,505 (Previous Year Rs,24,29,750).

11. Effective from April 01, 2014, the Company has changed Depreciation rates on various fixed assets as per the remaining useful lives specified in Part C of Schedule II to the Companies Act,2013. Based on the current estimate, the carrying value, net of residual value as at April 01, 2014 of Rs,20,21,285/- on account of the fixed assets whose useful life is already exhausted as on April 01, 2014 has been adjusted to Retained Earnings. Had there not been any change in useful lives of the assets, depreciation for the year ended March 31, 2015, would have been lower by Rs,64,19,779/-.

12. The Company has made a provision of Rs,7,92,306/- (Previous Year Rs,8,86,737/- in its books of accounts towards contribution for Corporate Social Responsibility under section 135 of the Companies Act, 2013. Out of Rs,16,79,043/- earmarked for CSR activities in F.Y. 2014-2015 and F.Y. 2015-2016, Rs,12,74,000/- has been incurred for activities specified in Schedule VII of the Companies Act,2013 in the financial year 2015-2016 through “Kanco CSR Trust”.

13. Corporate Information

Kanco Tea & Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of black tea. The company caters to only the domestic market. The food safety system and the quality management system of Mackey pore Tea Estate has been assessed and found to meet the requirement of HACCP (Hazard Analysis and Critical Point), ISO 22000 Food Safety Management. The quality management system of Mackey pore Tea Estate has been assessed and found to meet the requirements of ISO 9001:2008. Mackeypore Tea Estate & Lakmijan Tea Estate has been issued verification certificate under trust tea code for sustainable tea in India.

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Mar 31, 2015

1. Corporate Information

Kanco Tea & Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of black tea. The company caters to only the domestic market. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirement of HACCP (Hazard Analysis and Critical Point), ISO 22000 Food Safety Management. The quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirements of ISO 9001:2008. Mackeypore Tea Estate & Lakmijan Tea Estate has been issued verification certificate under trusttea code for sustainable tea in India.

Terms and rights attached to Equity Shares

The company has only one class of Equity Share having par value of Rs 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of Equity Share will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

Terms and rights attached to Preference Shares

During the year ended 31st March, 2004, The Company had issued 40,000 7% Non Cumulative Redeemable Preference Shares of Rs100/- each fully paid up. Preference Shares carry a dividend of 7% ,only when it is declared by the company. The dividend is paid by the company in Indian Rupees only. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.Each holder of Preference share is entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to Preference Shares.

The 7% Non Convertible Preference Shares will be redeemed in the year ended 31st March,2023 at par value only. In the event of liquidation of the company before redemption of Preference Shares, the holder of Preference Shares will have priority over Equity Shares in the payment of dividend and repayment of capital.

Nature of security

Term Loan from Bank is secured by hypothecation of green tea leaves, before and after plucking, teas in process, finished tea in stock/transit or tea lying with brokers, book debts (present and future) and by way of equitable mortgage of immovable properties and machineries of tea estates as collateral security and further guaranteed by a director.

Term Loan in the nature of Car Loan is secured by Hypothecation of Motor Cars.

Loan from Tea Board is secured by hypothecation of tea crops and mortgage of title deeds of Tea Estates in favour of Tea Board ranking subsequent to charge created in favour of Punjab National Bank.

Notes on Unsecured Loans

Unsecured Loan from the related parties are outstanding for a period of more than twelve months. Repayment of these loans will be made beyond 12 months from the date of reporting.

Deposits have been repaid on their due date and those deposits whose due dates were after 31st March,2015 have also been repaid on 31st March,2015 in accordance with section 74 (1) (a) of Companies Act, 2013 read with rule 20 of the Companies (Acceptance of Deposits Rules) 2014.

2. Contingent Liabilities and commiments (To the extent not provided for)

a) Contingent Liablilities

Claims, disputes and demands not acknowledged as debts:

i) Demand of Rs 7,94,960/- (P.Y Rs7,94,960/-) for F.Y 2009-10 has been raised under West Bengal Value Added Tax Rules,2005 by Joint Commissioner of Commercial Taxes,for which an appeal has been filed on 18/03/2014 before the West Bengal Commercial Taxes Appellate & Revision Board, West Bengal.

ii) Demand of Rs5,62,917/- (P.Y Nil) for A.Y 2011-2012 has been raised on 07/07/2014 under The Central Sales Tax (West Beangal) Rules, 1958 and against which, the Company has filed an Appeal with JCCT, West Bengal, Kolkata (South Circle) on 11/09/2014.

(iii) Demand of Rs2,99,714/- (P.Y. Nil) for A.Y 2011-2012 has been raised on 07/07/2014 under The West Bengal Value Added Tax Rules, 2005 and against which, the Company has filed an Appeal with JCCT, West Bengal, Kolkata (South Circle) on 11/09/2014.

(iv) Income Tax demand of Rs1,24,257/- has been raised by the I.T.O. Ward 4(4) after giving effect to the order of CIT (Appeals)-IV passed under section 250 of the Income Tax Act, 1961 against which the Company has filed a rectification application.

(v) The Company has paid Rs Nil (P.Y. Rs24,72,214/-) as interim measure as per order of Hon''ble High Court at Guwahati against debit note raised by GAIL (India) Limited for Rs68,80,820/- (P.Y. Rs68,80,820/-). Matter is now pending with Hon''ble Supreme Court.

(vi) Demand of Rs4,58,943/- (P.Y.Rs4,58,943/-) & Rs5,39,698/- (P.Y.Rs5,39,698/-) for A.Y. 2009-10 & 2010-11 respectively has been raised for Assam Agricultural Income Tax. The Company has filed an appeal and Rs Nil (P.Y. Rs1,14,736/-) & RsNil (P.Y. Rs1,34,925/-) for A.Y. 2009-10 & 2010-11 respectively has been paid.

(vii) Demand of Rs35,684/- has been raised u/s 143(3) of The Income Tax Act,1961 for the A.Y 2012-13 on date 13/06/2014 and an appeal against the same has been filed with CIT (Appeal), Kolkata.

The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

b) Commitments

Outstanding commitment in respect of Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. Rs5,34,325/- (Previous Year Rs8,74,910/-).

3. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to RsNil (P.Y. Rs1,73,250 /-)

4. Sundry Creditors do not include any amount due (Previous Year Rs Nil) from suppliers as defined under the "Micro Small & Medium Enterprises Development Act,2006" as per the information available with the Company.Hence disclosures regarding a) Amount due and outstanding to suppliers as at the accounting period, b)Interest paid during period, c) Interest payable at the end of the accounting period and d) Interest accrued at the end of the accounting period has not been disclosed or provided.

vi. Amount recognised as an expense in respect of Compensated Leave Absences is Rs 1,50,592/- and (Previous Year Rs 2,82,996/-) based on actuarial valuation. During the year ended 31st March, 2015 the company has paid Rs 2,78,209/- and (Previous Year Rs 1,23,981/-) as actual leave encashment.

Note: Encashment of leave is payable on death whilst in service, withdrawal from service or from retirement from services.In the view of salary growth rates have been used to project the salary at the time when encashment of leave is assumed to take place. While making actuarial valuations certain assumptions, such as mortality rates, withdrawal rates and retirement age etc . have been taken into consideration by the actuarial valuer. The Method used for such valuation is projected Unit Credit Method, which are in compliance with AS-15 (Revised 2005) as issued by ICAI and Guidance Note 26 issued by Institute of Actuaries of India.

5. Segment Reporting

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 "Segment Reporting" are not attracted.

6. Related Party Disclosures

Related party disclosures, as required by AS-18 "Related Party Disclosures" are given below 1. Relationships :

(i) Key Management Personnel and their relatives :

Mrs. Anuradha Kanoria

Mr. Umang Kanoria

Ms. Stuti Kanoria

Mr. Satvik Kanoria Stuti Welfare Trust Satvik Welfare Trust Umang Kanoria H. U.F.

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence : B. T. Investments Private Limited

Cosmos Resources Private Limited E. T. Resources Private Limited Facitcon Investments Private Limited Innova Properties Private Limited Kanco Enterprises Limited Milan Agencies Private Limited Nidhi Private Limited OCL Investments & Leasing Limited S. T. Investment Private Limited Suryasakti Commodities Private Limited

7. A company namely Winnow Investments & Securities Pvt Ltd. has been incorporated on 30th March, 2015 and a sum of Rs2,83,770/- has been incurred on incorporation, which has been shown as an advance in Schedule 19 "Short Term Loans and Advance". The wholly owned subsidiary did not commence business within 31st March,2015 and therefore the Consolidated Financial Statements as required under Accounting Standard - 21 "Consolidated Financial Statement" has not been prepared.

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

9. In terms of Accounting Standard 22, Deferred Liability Tax Liablity reversed and recognised during the year is Rs10,72,782 (Previous Year DTL charged is Rs9,26,986). Consequently, the net DTL as the Year end stands Rs24,17,892 (Previous Year Rs34,90,674).

10. Effective from April 01,2014, the Company has changed Depreciation rates on various fixed assets as per the remaining useful lives specified in Part C of Schedule II to the Companies Act,2013. Based on the current estimate, the carrying value, net of residual value as at April 01, 2014 of Rs20,21,285/- on account of the fixed assets whose useful life is already exhausted as on April 01, 2014 has been adjusted to Retained Earnings. Had there not been any change in useful lives of the assets, depreciation for the year ended March 31, 2015, would have been lower by Rs64,19,779/-.

11. The Company has made a provision of Rs8,86,737/- in its books of accounts towards contribution for Corporate Social Responsibility under section 135 of the Companies Act, 2013. The company has formed "Kanco CSR Trust" , which got resgistered on 31st March, 2015. The amount earmarked for CSR activities in F.Y. 2014-2015 will be incurred in the financial year 2015-2016 through "Kanco CSR Trust" for activities specified in Schedule VII of the Companies Act,2013 in local areas in which tea estates of the Company are located.

12. The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

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

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Mar 31, 2014

Terms and rights attached to Equity Shares

The company has only one class of Equity Share having par value of Rs.10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of Equity Share will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders

Terms and rights attached to Preference Shares

During the year ended 31st March, 2004, The Company had issued 40,000 7% Non Cumulative Redeemable Preference Shares of "100/- each fully paid up. Preference Shares carry a dividend of 7% ,only when it is declared by the company. The dividend is paid by the company in Indian Rupees only. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.Each holder of Preference share is entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to Preference Shares.

The 7% Non Convertible Preference Shares will be redeemed in the year ended 31st March,2023 at par value only. In the event of liquidation of the company before redemption of Preference Shares, the holder of Preference Shares will have priority over Equity Shares in the payment of dividend and repayment of capital.

2. Contingent Liabilities not provided for in respect of following:

a) Claims, disputes and demands not acknowledged as debts: i) Demand of Rs.7,94,960/- (P.Y. Rs.1,15,28,196/-) for F.Y. 2009-10 has been raised under West Bengal Value Added Tax Rules,2005 by Joint Commissioner of Commercial Taxes,for which an appeal has been filed on 18/03/2014 before the West Bengal Commercial Taxes Appellate & Revision Board, West Bengal.

ii) Demand of Rs.16,243/- (P.Y. Rs.Nil) has been raised by Deputy Commissioner Commercial Taxes, Park Street Range, Kolkata under Central Sales Tax Act for the F.Y. 2010-11 and Company has filed an appeal before Joint Commissioner of Commercial Taxes, South Circle, Kolkata.

iii) Income Tax demand for Rs.2,48,520/- (P.Y. Rs.2,48,520/-) for A.Y. 2010-11, for which an amount of Rs.1,24,260/- (P.Y. Rs.Nil) has been deposited Under protest. The Company has filed an appeal before Commissioner of Income Tax (Appeals).

iv) Debit note raised by GAIL (India) Limited Rs.68,80,820/- (P.Y. Rs.68,80,820/-). Against this the Company has paid Rs.24,72,214/- (P.Y.Rs. Nil) as interim measure as per order of Hon''ble High Court at Guwahati. Matter is now pending with Hon''ble Supreme Court.

(v) Demand of Rs.4,58,943/- (P.Y. Rs.Nil) & Rs.5,39,698/- (P.Y. Rs.Nil) for A.Y. 2009-10 & 2010-11 respectively has been raised for Assam Agricultural Tax. The Company has filed an appeal and Rs.1,14,736/- (P.Y. Rs.Nil) & Rs.1,34,925/- (P.Y. Rs.Nil) for A.Y. 2009-10 & 2010-11 respectively has been paid.

The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

b) Outstanding commitment in respect of Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. Rs.8,74,910/- (Previous Year Rs.7,19,950/-).

3. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs. 1,73,250/- (P.Y. Rs.4,81,783 /-)

4. Sundry Creditors do not include any amount due (Previous Year Rs. Nil/-) from suppliers as defined under the "Micro Small & Medium Enterprises Development Act,2006" as per the information available with the Company.Hence disclosures regarding a) Amount due and outstanding to suppliers as at the accounting period, b)Interest paid during period, c) Interest payable at the end of the accounting period and d) Interest accrued at the end of the accounting period has not been disclosed or provided.

vi. Amount recognised as an expense in respect of Compensated Leave Absences is Rs.2,82,996/- and (Previous Year Rs.3,69,415/-) based on actuarial valuation. During the year ended 31st March, 2014 the company has paid Rs.1,23,981/- and (Previous Year Rs.1,01,922/-) as actual leave encashment.

Note: Encashment of leave is payable on death whilst in service, withdrwal from service or from retirement from services.In the view of salary growth rates have been used to project the salary at the time when encashment of leave is assumed to take place. While making actuarial valuations certain assumptions, such as mortality rates, withdrawal rates and retirement age etc . have been taken into consideration by the actuarial valuer. The Method used for such valuation is projected Unit Credit Method, which are in compliance with AS-15 (Revised 2005) as issued by ICAI and Guidance Note 26 issued by Institute of Actuaries of India.

5. Segment Reporting

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 "Segment Reporting" are not attracted.

35. Related Party Disclosures

Related party disclosures, as required by AS-18 “Related Party Disclosures” are gives below :- 1. Relationships :

(i) Key Management Personnel and their relatives : Mrs. Anuradha Kanoria Mr. Umang Kanoria Ms. Stuti Kanoria Master Satvik Kanoria Stuti Welfare Trust Satvik Welfare Trust Umang Kanoria H.U.F.

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence : B. T. Investments Private Limited Cosmos Resources Private Limited E. T. Resources Private Limited Facitcon Investments Private Limited Innova Properties Private Limited Kanco Enterprises Limited Milan Agencies Private Limited Nidhi Private Limited OCL Investments & Leasing Limited S. T. Investment Private Limited Suryasakti Commodities Private Limited

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

7. Corporate Information

Kanco Tea & Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of black tea. The company caters to only the domestic market. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirement of HACCP (Hazard Analysis and Critical Point), ISO 22000 Food Safety Management and ISO 9001:2008.

8. The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

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

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Mar 31, 2013

1. Contingent Liabilities not provided for in respect of following:

a) Claims, disputes and demands not acknowledged as debts: i) Sales Tax demand of Rs. 1,15,28,196/- (Previous Year Rs. Nil). The Company has filed an appeal before the Joint Commissioner of Sales Tax.

ii) Income Tax demand Rs. 2,48,520/- (Previous Year Rs. Nil). Against this the Company has deposited Rs. 1,24,260/- under protest. The Company has filed an appeal before Commissioner of Income Tax (Appeals)

iii) Debit note raised by GAIL (India) Limited Rs. 68,80,820/- (Previous Year Rs. 49,44,429/-). Against this the Company has paid Rs. 24,72,214 (Previous Year Rs. 7,99,000/- )as interim measure as per order of Hon''ble High Court at Guwahati.

The amounts shown in the item (a) reprsent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

b) Outstanding commitment in respect of Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. Rs. 7,19,958/- (Previous Year Rs. 7,43,699/-).

2. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs. 4,81,783/- (Previous Year Rs. 5,76,912/-)

3. Sundry Creditors do not include any amount due (Previous Year Rs. Nil/-) from suppliers as defined under the "Micro Small & Medium Enterprises Development Act,2006" as per the information available with the Company. Further no interest has been paid/payable to such Enterprises.

The Estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in employment market.

vi. Amount recognised as an expense in respect of Compensated Leave Absences is Rs. 3,69,415/- and (Previous Year Rs. 4,24,998/-) based on actuarial valuation. During the year ended 31st March, 2013 the company has paid Rs. 1,01,922/- and (Previous Year Rs. 90,957/-) as actual leave encashment.

Note: Encashment of leave is payable on death whilst in service, withdrawal from service or from retirement from services.In the view of salary growth rates have been used to project the salary at the time when encashment of leave is assumed to take place. While making actuarial valuations certain assumptions, such as mortality rates, withdrawal rates and retirement age etc . have been taken into consideration by the actuarial valuer. The Method used for such valuation is projected Unit Credit Method, which are in compliance with AS-15 (Revised 2005) as issued by ICAI and Guidance Note 26 issued by Institute of Actuaries of India.

4. Segment Reporting

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 "Segment Reporting" are not attracted.

5. Related Party Disclosures

Related party disclosures, as required by AS-18 "Related Party Disclosures" are gives below :- 1. Relationships :

(i) Key Management Personnel and their relatives : Mrs. Anuradha Kanoria Mr. Umang Kanoria Miss Stuti Kanoria Master Satvik Kanoria Stuti Welfare Trust Satvik Welfare Trust Umang Kanoria H.U.F.

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence : B. T. Investments Private Limited Cosmos Resources Private Limited E. T. Resources Private Limited Facitcon Investments Private Limited Innova Properties Private Limited Kanco Enterprises Limited Milan Agencies Private Limited Nidhi Private Limited OCL Investments & Leasing Limited S. T. Investment Private Limited Suryasakti Commodities Private Limited

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

7 Corporate Information

Kanco Tea & Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of black tea. The company caters to only the domestic market. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirement of HACCP (Hazard Analysis and Critical Point and ISO 9001:2008)

8. The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

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

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Mar 31, 2012

Terms and rights attached to Equity Shares

The company has only one class of Equity Shares having par value of Rs.10/- per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of Equity Shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

Terms and rights attached to Preference Shares

During the year ended 31st March, 2004, The Company had issued 40,000 7% Non Cumulative Redeemable Preference Shares of Rs.100/- each fully paid up. Preference Shares carry a dividend of 7%, only when it is declared by the company. The dividend is paid by the company in Indian Rupees only. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Each holder of Preference share is entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to Preference Shares.

The 7% Non Convertible Preference Shares will be redeemed in the year ended 31st March, 2023 at par value only. In the event of liquidation of the company before redemption of Preference Shares, the holder of Preference Shares will have priority over Equity Shares in the payment of dividend and repayment of capital.

Notes on Unsecured Loans

Unsecured Loan from the related parties are outstanding for a period of more than twelve months. Repayment of these loans will be made beyond 12 months from the date of reporting.

The maturity period of deposits taken from related parties varies from 12 months and 36 months from the date of their acceptance. All these deposits are renewed by the company on the date of maturity subject to applicable terms & conditions.

Particulars 31.03.2012 (Rs.) 31.03.2011 (Rs.)

1. Contingent Liabilities not provided for :

Irrecvocable Stand by Revolving Letter of Credit issued in favour of 7,43,699 3,84,593

GAIL (India) Ltd.

Bank Guarantee issued in favour of Sales Tax Authorities, West Bengal 5,62,500

7,43,699 9,47,093

2. Estimated amount of contracts remaining to be executed on capital account for Rs. 5,76,912/- (P. Y. Rs. Nil) but not provided for.

3. Sundry Creditors do not include any amount due (Previous Year Rs. Nil) from suppliers as defined under the 'Micro Small & Medium Enterprises Development Act, 2006" as per the information available with the Company.

4. Amount recognised as an expense in respect of Compensated Leave Absences is Rs. 4,24,998/- (Previous Year Rs. 6,06,817/-) based on actuarial valuation.

5. Segment Reporting

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 'Segment Reporting" are not attracted.

6. Related Party Disclsoures

Related party disclosures, as required by AS-18 'Related Party Disclosures" are given below.

1. Relationships :

(i) Key Management Personnel and their relatives

Mrs. Anuradha Kanoria

Mr. Umang Kanoria

Miss Stuti Kanoria

Master Satvik Kanoria

Stuti Welfare Trust

Satvik Welfare Trust

Umang Kanoria H.U.F.

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence :

B. T. Investments Private Limited

Cosmos Resources Private Limited

E. T. Resources Private Limited

Facitcon Investments Private Limited

Innova Properties Private Limited

Kanco Enterprises Limited

Milan Agencies Private Limited

Nidhi Private Limited

OCL Investments & Leasing Limited

S. T. Investment Private Limited

Suryasakti Commodities Private Limited

7. Corporate Information

Kanco Tea & Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of black tea. The company caters to only the domestic market. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirements of HACCP (Hazard Analysis and Critical Point and ISO 9001:2008.

8. The financial statements for the year ended 31st March,2012 has been prepared as per Notification on Revised Schedule - VI under the Companies Act,1956 and accordingly, the previous year figures have also been rear- ranged/reclassified to confirm to this years classification.

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

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Mar 31, 2011

31st March, 31st March, 2011 2010 Rs. Rs.

1. Contingent liabilities not provided for :

Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. 3,84,593 4,01,746

Bank Guarantee issued in favour of Sales Tax Authorities,West Bengal 5,62,500 -

2. Estimated amount of contracts remaining to be executed on capital account for Rs.Nil (P.Y. Rs.1,28,900/-) but not provided for.

3. Sundry Creditors do not include any amount due (Previous Year Rs. Nil/-) from suppliers as defined under the "Micro Small & Medium Enterprises Development Act, 2006" as per the information available with the Company.

4. Prior period adjustments represent a sum of Rs. 3,63,303 (net credit) [Previous Year Rs. 2,114 (net debit)] shown under "OTHER INCOME" in Schedule '14'.

5. 27050 units of shares costing Rs. 90,60,774 was purchased and 27050 units of shares were sold for Rs. 94,23,092 during the year

6. Additional Information pursuant to the provisions of Part II of the Schedule VI of the Companies Act, 1956 :

7. Details of Raw Materials Consumed :

Green Tea Leaves Consumed (Raw Materials) 85,43,819 Kgs. (P.Y. 88,30,761 Kgs) of which 20,07,459 Kgs. (P.Y. 14,01,537 Kgs) Purchased - Value Rs. 3,62,41,647/- (P.Y.Rs.2,52,05,914/-)

vi. Amount recognised as an expense in respect of Compensated Leave Absences is Rs.6,06,817/- [P.Y. Rs.(73,601/-)] based on acturial valuation.

vii. Current year figures are not comparable with that of previous year in view of creation of new fund with LIC of India consequent to Scheme of Arrangement.

8. Related Party Disclosures

Related party disclosures, as required by AS-18 "Related Party Disclosures" are given below:

1. Relationships :

(i) Key Management Personnel and their relatives: Mrs. A. Kanoria Mr. U. Kanoria Miss S. Kanoria Master S. Kanoria

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence : B.T.Investments Pvt. Ltd Cosmos Resources Pvt. Ltd E.T.Resources Pvt. Ltd Facitcon Investments Private Limited Innova Properties Pvt. Ltd. Kanco Enterprises Limited Milan Agencies Pvt. Ltd. Nidhi Pvt Limited OCL Investments & Leasing Ltd. S.T.Investment Pvt. Ltd. Suryasakti Commodities Pvt. Ltd.