Notes to Accounts of McLeod Russel (India) Ltd.

Mar 31, 2025

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or
constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a
reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating
losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.

Contingent liabilities are not recognised and disclosed by way of notes to the financial statements when there is a
possible obligation arising from past events, 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 when there is a
present obligation that arises from past events where it is either not probable that an outflow of resources will be
required to settle the same or a reliable estimate of the amount in this respect cannot be made.

When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no
provision or disclosure for contingent liability is made.

Contingent Assets are not recognized but disclosed in the financial statement by way of notes when inflow of
economic benefit is probable.

N. EMPLOYEE BENEFITS

Employee benefits are accrued in the year in which services are rendered by the employee.

Short-term Employee Benefits

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

Bonus

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where
contractually obliged or where there is a past practice that has created a constructive obligation.

Post Employment Benefits

The Company operates the following post employment schemes:

- Defined Benefit Plans

In case of Defined Benefit Plans, the cost of providing the benefit is determined using the Projected Unit
Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and
losses are recognised in Other Comprehensive Income for the period in which they occur. Past service cost
is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised
on a straight-line basis over the average period until the benefits become vested. The retirement benefit
obligation recognised in the Balance Sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost, if any, and as reduced by the fair value of plan
assets, where funded. Any asset resulting on account of this is limited to the present value of any
economic benefit available in the form of refunds from the plan or reductions in future contributions to
the plan.

- Defined Contribution Plan

Defined contribution plans such as provident fund etc. are charged to the statement of profit and loss as
and when incurred. Contribution to Superannuation fund and Provident Fund, a defined contribution
plan is made in accordance with the company''s policy and is recognised in the Statement of Profit and
Loss.

O. OPERATING AND OTHER INCOME

i. REVENUE FROM SALE OF PRODUCT

Revenue from contracts with customers is accounted for only when it has commercial substance, and all the
following criteria are met:

(i) parties to the contract have approved the contract and are committed to perform their respective
obligations;

(ii) each party''s rights regarding the goods or services to be transferred and payment terms there against can
be identified; and

(iii) consideration in exchange for the goods or service to be transferred is collectible and determinable.

Revenue from contract with customers is recognized on satisfaction of performance obligation, when control
over the goods or services has been transferred and/or goods/ services are delivered/ provided to the customer.
Delivery occurs when the goods have been sold or shipped or delivered to a specific location, and the customer
has either accepted the goods under the contract or the company has sufficient evidence that all the criteria
for acceptance have been satisfied.

Revenue is measured at the amount of transaction price (consideration specified with the customers)
allocated to that performance obligation. The transaction price of goods sold is net of variable consideration
on account of rebates, claims and discounts, returns, Goods and Service Tax (GST) and such other taxes
collected on behalf of third party not being economic benefits flowing to the company are excluded from
revenue. Accumulated experience is used to estimate and provide for the discounts/ right of return, using the
expected value method.

A refund liability is recognized for expected returns in relation to sales made and corresponding assets are
recognized for the products expected to be returned.

The company recognises as an asset, the incremental costs of obtaining a contract with a customer, if the
company expects to recover those costs. The said asset is amortised on a systematic basis consistent with the
transfer of goods or services to the customer.

ii. INTEREST, DIVIDEND AND CLAIMS

Dividend income is recognized when the right to receive payment is established. Interest has been accounted
using effective interest rate method. Insurance claims/ other claims are accounted as and when admitted /
settled.

iii. EXPORT BENEFITS

Export incentives are accounted for in the year of export if the entitlements and realisability thereof can be
estimated with reasonable accuracy and conditions precedent to claim is fulfilled.

P. BORROWING COST

Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All
borrowing costs general or specific are recognized in the Statement of Profit and Loss using the effective interest
method except to the extent attributable to qualifying Property Plant Equipment (PPE) which are capitalized to the
cost of the related assets. A qualifying PPE is an asset, that necessarily takes a substantial period of time to get ready
for its intended use or sale. Borrowing cost also includes exchange differences to the extent considered as an
adjustment to the borrowing costs.

Q. RESEARCH AND DEVELOPMENT

Research and development cost (other than cost of PPE and Intangible Assets acquired) are charged as an expense
in the year in which they are incurred.

R. GOVERNMENT GRANTS

Government grants are recognized on systematic basis when there is reasonable certainty of realization of the
same. Revenue grants including subsidy/rebates are credited to Statement of Profit and Loss Account under "Other
Operating Income" or deducted from the related expenses for the period to which these are related. Grants which
are meant for purchase, construction or otherwise to acquire non current assets are recognized as Deferred Income
and disclosed under Non Current Liabilities and transferred to Statement of Profit and Loss on a systematic basis
over the useful life of the respective asset. Grants relating to non-depreciable assets is transferred to Statement of
Profit and Loss over the periods as specified for meeting the obligations related to such grants.

S. TAXES ON INCOME

Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is
recognized in the statement of profit and loss except to the extent that it relates to items recognized directly in
equity or other comprehensive income.

Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or
recovered from the tax authorities, using the tax rates and tax laws that have been enacted by the end of the
reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized
for all deductible temporary differences with respect to carry forward of unused tax credits and any unused tax
losses/depreciation to the extent that it is probable that taxable profits will be available against which these
temporary differences can be utilized.

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

Deferred tax assets include Minimum Alternative Tax (MAT) measured in accordance with the tax laws in India,
which is likely to give future economic benefits in the form of availability of set off against future income tax liability
and such benefits can be measured reliably and it is probable that such benefit will be utilised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when these relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset
and settle the liability simultaneously.

Deferred tax items in correlation to the underlying transaction relating to Other comprehensive income and Equity
are recognised in Other comprehensive income and Equity, respectively

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

T. EARNINGS PER SHARE

Basic earnings per share are computed by dividing the net profit/(loss) attributable to the equity holders of the
company by the weighted average number of equity shares outstanding during the period. Diluted earnings per
share is computed by dividing the net profit/(loss) attributable to the equity shareholders of the company by the
weighted average number of equity shares considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

U. SEGMENT REPORTING

Operating segments are identified and reported taking into account the different risk and return, organisation
structure and in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker
(CODM). CODM is responsible for allocating resources and assessing performance of the operating segments,
financial results, forecasts, or plans for the segment and accordingly is identified as the chief operating decission
maker.

4 CRITICAL ACCOUNTING JUDGMENTS, ASSUMPTIONS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

The preparation of the financial statements in conformity with the measurement principle of Ind AS requires
management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the
application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets
and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period.
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate
changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates.
Differences between the actual results and estimates are recognized in the year in which the results are known /
materialized and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the
use of assumptions in the financial statements that have a significant risk of causing a material adjustment to the carrying
amount of assets and liabilities within the next financial year are discussed below. The notes dealt with in para 4(a) to 4(j)
below provide an overview of the areas that involved a high degree of judgement or complexity and of items which are
likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally
assessed.

a) Depreciation / amortisation and impairment on Property, Plant and Equipment / ROU/ Intangible
Assets.

Property, Plant and Equipment and Intangible Assets are depreciated/amortized on straight-line basis over the
estimated useful lives in accordance with Internal assessment and Independent evaluation carried out by technical
expert/ Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever
applicable. ROU are depreciated on a straight line basis over the shorter of the lease term and useful life of the
underlying asset. The Company reviews the estimated useful lives of the assets regularly in order to determine the
amount of depreciation/ amortization and amount of impairment if any to be recorded during any reporting
period. This reassessment may result in variation in the amount of depreciation and amortisation in future period.

The company reviews its carrying value of its Tangible and Intangible Assets whenever there is objective evidence
that the assets are impaired. In such situation Assets'' recoverable amount is estimated which is higher of asset''s or
cash generating units (CGU) fair value less cost of disposal and its value in use. In assessing value in use the
estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time
value of money. In determining fair value less cost of disposal, recent market realisations are considered or
otherwise in absence of such transactions appropriate valuations are adopted. The assumptions for cash flows and
fair valuation as required in this respect are dependent on resolution of company''s debt as dealt in Note no. 4(c)
below read with Note no. 58 or otherwise which may have significant impact in the subsequent period.

b) Right of Use Assets and Lease liabilities

Ind AS 116 requires lessee to determine the lease term as the non-cancellable period of a lease adjusted with any
option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an
assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably
certain that any option to extend or terminate the contract will be exercised. In evaluating the lease term, the
Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs
relating to the termination of the lease and the importance of the underlying asset to the company''s operations
taking into account among other things, the location of the underlying asset and the availability of suitable
alternatives. The lease terms and impact thereof are reassessed in each year to ensure that the lease term reflects the
current economic circumstances.

c) Going Concern assumption

As stated in Note no. 58, the financial statements of the company have been prepared on going concern
assumption based on managements assessment of the expected successful outcome of steps and measures taken
by the company and on resolution with respect to company''s borrowing currently under evaluation. In the event of
the managements expectation and estimate in this respect, not turing out to be feasible in future, validity of
assumption for going concern and possible impact thereof, even though presently not determinable are expected
to be material.

d) Fair valuation and Impairment of Loans

All financial instruments are required to be fair valued as at the balance sheet date, as provided in Ind AS 109-
Financial Instruments and Ind AS 113- Fair Value Measurement. In this respect, judgement is exercised to determine
the value at which such assets are to be recognised. This requires critical evaluation of the realisable value of assets
based on estimation and judgements which may not turn out to be true and may lead to significant adjustments in
value.

The above includes various loans and advances to companies which have been considered good and recoverable.
Recoverability of these and interest thereagainst and/or adjustments required as stated in Note no. 56 will be
determined based on the Resolution Plan as approved by Hon''ble NCLT currently under implementation in case of
one of the promoter group company which was under CIRP or otherwise on completion of the resolution with
respect to company''s borrowing.

e) Impairment of Investments in Subsidiaries and Associates

The company reviews its carrying value of investments in Subsidiaries and Associates carried at cost/ deemed cost
(net of impairment if any) annually or more frequently when there is an indication for impairment. If the recoverable
amount is less than its carrying amount the impairment loss is accounted for in the standalone statement of profit
and loss. As stated in Note no. 59, one of the step down subsidiary has been incurring cash losses and it''s current
liabilities are in excess of current assets and certain loans in respect of the said step down subsidiary has been
restructured. Financial position of the step down subsidiary even though improving subsequent to the
restructuring, status thereof are dependent on future uncertain event which may have a significant impact in the
carrying value of investments.

f) 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.

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.

g) Impairment Allowances on trade receivables

The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines
the amount of impairment allowance as a result of the inability of the customer to make required payments. The
Company bases the estimates on the ageing of the trade receivable, their credit-worthiness and historical write-off
experience. In case of variation in financial condition the amount of impairment as recognised may vary having a
significant impact on the Financial Statement.

h) Taxes on Income

Significant judgment is required in determination of taxability of certain income and deductibility of certain
expenses for estimation of the provision for income taxes including agricultural income. These are based on
assumption and inferences and are subject to final assessment by the taxation authorities. Also there are matters
pending before various judicial authorities outcome whereof are uncertain. Further, material judgement and
assumptions are involved for arriving at timing differences and consequential adjustments on account of deferred
taxation are given effect to wherever there are uncertainties leading to the variations in earlier assumptions

The Company has unused tax tax credits, unrecognised deferred tax assets and entitled to tax holiday in Assam and
West Bengal for which 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 profit together with future tax planning
strategies. The management has reviewed the rationale for recognition of Deferred Tax Assets and based on the likely
timing and level of profitability in future and expected utilisation of deferred tax thereagainst such recognition of
deferred tax assets has been carried out. The amount of deferred tax is dependent upon the resolution with respect to
company''s borrowing as referred to in Note no. 58 and therefore assumption for reversal/adjustment of deferred tax
is expected to be materially different upon completion of resolution with respect to company''s borrowings for which
required steps are being taken and effect will then be given on determination of amount thereof.

i) Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow
of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The
recognition and quantification of the liability requires the application of judgement to existing facts and
circumstances, which are subject to change in future.

Management uses in-house and external legal professional to make judgments for estimating the possible outflow
of resources, if any, in respect of contingencies/claim/litigations/ against the Company as it is not possible to predict
the outcome of pending matters with accuracy.

The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and
revised to consider changing facts and circumstances.

j) Defined benefit obligation (DBO)

The present value of the defined benefit obligations and long term employee benefits depends on a number of
factors that are determined on an actuarial basis using a number of assumptions. An actuarial valuation critical
estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation,
mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed
for this purpose by the Management. Due to the complexities involved in the valuation and being long-term in
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at every financial year end.

Nature and Purpose of Reserves

21.1 Capital Reserve

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

21.2 Securities Premium

Securities Premium represents the amount received in excess of par value of securities and is available for utilisation as specified
under Section 52 of Companies Act, 2013.

21.3 General Reserve

General reserve is a free reserve which is created by transfer of profits from retained earnings. As the general reserve is created by
a transfer from one component to another and is not an item of Other Comprehensive Income, items included in the general
reserve is generally not reclassified subsequently to Statement of Profit and Loss.

21.4 Other Reserves

Represents the balance amount of reserve which had arisen on transfer of Bulk Tea Division of Eveready Industries India Limited
pursuant to Scheme of Arrangement.

21.5 Retained Earnings

Retained earnings generally represents amount of accumulated surplus/deficit of the company. This includes Other
Comprehensive Income of (Rs. 7,402.90 lakhs) (31st March 2024: (Rs. 8,220.09 lakhs)) relating to remeasurement of defined
benefit plans (net of tax) which cannot be reclassified to Statement of Profit and Loss.

21.6 Revaluation Surplus

Represents differential arising on revaluation of Property, Plant and Equipment by the erstwhile Bulk Tea Division of Everready
Industries Limited demerged to the company with effect from 1st April 2004 pursuant to the Scheme of Arrangement. The said
reserve has been carried over being part of PPE, recognised at carrying value as per previous GAAP as deemed cost on the date of
transition to Ind AS. The amount of depreciation attributable to the said revaluation is transferred from the said reserve to
general reserve as per the practice followed in this respect.

21.7 Other Comprehensive Income (OCI)

The company has elected to recognise changes in the fair value of non-current investments in Equity Instruments (other than
Subsidiary and Associates) through OCI. This reserve represents the cumulative gains and losses arising on equity instruments
measured at fair value. The company transfers amounts from this reserve to retained earnings when the relevant equity
securities are disposed. This also includes gain/losses on re-measurement of defined benefit obligations which is transferred to
retained earnings as stated in Note 21.5 above.

22.4 As stated in Note no. 58 before assignment of the loan, the lenders have invited expression of interest for sale/assignment of the debts
aggregating to Rs. 1,10,469.00 lakhs representing the principal amount thereof following the Swiss Challenge Bid Process. Accordingly,
the differential amount of Rs. 4,276.11 lakhs as disclosed in the EOI and those being carried forward in the financial statement have
been adjusted against the finance cost for the year ended 31st March 2025.

22.5 The Security as disclosed above have been based on the charge documents filed with ROC. In respect of loans assigned as per Note no.
57, the charges have however been modifies as filed or yet to be filed in line with EOI for such assignment as stated in Note no. 58. These
loans being classified as Secured, Subservient or Unsecured has also been based on the said EOI. Therefore in certain cases where
charges or personal guarantee of managing director etc. in terms of original sanction letter pending execution as such have not been
further disclosed. Further certain security which has been disposed off by the lenders for recovering their dues and accordingly such
securities have not been disclosed herein above. As stated in the said note, resolution with respect to company''s borrowing is under
consideration and thereby terms and conditions including the period and amount of repayment etc. thereof and the security as given
herein above will accordingly be modified on completion of the said resolution.

22.6 The disclosure given herein above has been made on the basis mentioned in Note no. 60(a). The default and amount due are therefore
subject to confirmation and reconciliation with respective parties and on resolution of the company''s borrowing under consideration by
an ARC as stated in Note no. 58.

22.7 The company as agreed upon in various lenders meeting had been paying cut-back based on percentage of sales realisation as specified
and are being adjusted against the cash credit/ other facilities as advised from time to time leading to debit balances which has therefore
been netted off against Interest accrued and due as disclosed in Note no. 27.3.

22.8 Also Refer Note no. 57, 58, 60, 61 and 36.

25.3 The Board of Directors had in earlier years as well as in the current year has ratified the payment made by Individuals
amounting to Rs. 3,500.00 lakhs, from body corporates amounting to Rs. 4,100.00 lakhs and from related parties
amounting to Rs. 15,815.19 lakhs against settlements directly made by them for repayment of ICDs taken by the
company in earlier years and invocation of third party securities provided to one of the lender against borrowing made by
the company. Accordingly, disclosures in this respect have been made based on the terms and conditions as ratified and
approved by the Board of Directors. This however does not include the payments made as per Note no. 25.2 above.

25.4 During the year ended 31st March 2024, one of the unsecured lender (erstwhile lender) had assigned a part of its loan
amounting to Rs. 1,500.00 lakhs to one of the related party which had been taken on record and approved by the Board
of Directors along with the terms and conditions as applicable for erstwhile lender. The said amount has been shown as
unsecured loan from related party in these financial statements.

25.5 Borelli Tea Holdings Limited (''BTHL''), a wholly subsidiary of the company had entered into a capital contribution
agreement with TLK Agriculture Joint Stock Company (''TLK''), taking Phu Ben Tea Company Limited (''PBTCL'') (a Step
Down subsidiary of the company) as a party to the said agreement whereby BTHL had sold 100% of Capital Contribution
in PBTCL to TLK at a net consideration of USD 2,15,00,00. Consideration against these shares which were pledged to one
of the lender banks who assigned it''s loan to an ARC in earlier year, amounting to Rs. 1,920.66 lakhs as received in this
respect has been adjusted by them against their outstanding dues on May 03, 2024. Such amount as stated in Note 60(a)
has been adjusted against principal outstanding and an equivalent amount has been recognised as ICD from BTHL.

25.6 Pending completion of resolution with respect to company''s borrowings as stated in Note no. 58 any further charge or
satisfaction as such could not be filed with Registrar of Companies (ROC) and details of charges herein above are based
on filings done earlier.

25.7 Refer Note no. 22.5 for basis of the disclosure of securities against the borrowings as mentioned herein above.

25.8 Also refer Note no. 36, 57, 58 and 60.

29.1 Hon''ble Supreme Court vide its judgement dated 20th September 2017 held that the provisions of Rule 8 of Income Tax
Act, 1961 is not applicable while making payment of dividend distribution tax as per section 115-O of the Income Tax
Act, 1961. No fresh proceedings/ demands has been made by the tax authorities in response to the aforesaid judgement
passed by the Hon''ble Court. However, the Company has made full provision for tax in the financial statements in earlier
years.

29.2 Shortfall in value of investments held by Employee Provident Fund Trust covered under defined benefit plan, as
estimated and provided for in earlier years has been carried forward in these financial statements.

29.3 Provision for others include Rs. 105.00 lakhs (31st March 2024: Rs. 105.00 lakhs) which relates to various demands
raised by the buyer''s of Specified Assets of Tea Estates in respect of expenditure incurred by them in relation to period
prior to hand over of such tea estates, pending reconciliation and finalisation of the same with the books of accounts.
Further, provision of Rs. 1,500.00 lakhs (31st March 2024: Rs. 1,500.00 lakhs ) made in earlier year, being the estimated
cost to be incurred in relation to Sale of Specified Assets of Tea Estates as reviewed during the year has been carried
forward in these financial statements.

32.1 The company received request in earlier years as well as in current year from various bodies corporate to whom Loans were given and
outstanding as on 31st March 2025 for waiver of Interest. Interest on unsecured loan given to various companies as given in Note no.
56(a), considering the uncertainty with respect to recoverability thereof and also that companies have requested to waive the interest
pending finalisation of terms thereof has not been accrued. Such interest at the rate specified in earlier years works out to be Rs.
2,02,122.24 lakhs (including Rs. 33,131.52 lakhs for the year). As stated in Note no. 56(a), terms and conditions for repayment of loans
including interest thereon shall be specified and outstanding amount shall be recovered/adjusted and/or restructured depending upon
the outcome of the CIRP proceeding currently under implementation in case of one of the Group company where these loans have
mainly been advanced to provide financial support and the legal proceedings initiated by the company against the borrowing
companies or otherwise and/or on completion of the resolution of the company''s borrowing as stated in Note no. 58. Further, in
respect of interest accrued in earlier years and outstanding as on 31st March 2025, provision of Rs. 9,941.50 lakhs has been made and
adjustments if any needed in this respect will be given effect to on completion of the resolution as stated in the said note.

36.1 Pending resolution with respect to company''s borrowings, Interest on borrowings have been provided for as stated in Note no. 60(a).

36.2 Short term borrowings include unsecured loans of Rs. 30,500.06 lakhs taken/recognised by the company against which interest to the
extent of Rs. 12,453.63 Lakhs (including Rs. 222.37 Lakhs for the year) has not been recognised pending final settlement/ completion of
resolution of the company''s debt as stated in Note no. 58. Interest in this respect as stated in Note no. 36.1 above have been determined
on simple basis at stipulated rate or otherwise advised/considered for similar arrangements from time to time. This includes interest on
Rs. 7,084.86 lakhs (including Rs. 4,975.66 lakhs pertaining to the current year) against payment made by certain parties on behalf of
the company towards settlement of company'' debt and advances taken in earlier year, whereby pending finalisation of terms and
conditions, amount of interest thereagainst has been computed based on similar rate as considered in earlier years in other such cases.
This however does not include interest if any on outstanding advances of Rs. 3,600.00 lakhs (net of Rs. 1,400.00 lakhs repayment made
by third parties) from customers as stated in Note no. 28.2, pending recognition as Inter Corporate Deposits and finalisation of terms
and conditions thereof. Further, Interest including compound/ penal interest if any payable with respect to these are currently not
determinable and as such the amount in this respect have not been disclosed and included herein above.

39: SCHEMES OF AMALGAMATION/SCHEME OF ARRANGEMENT GIVEN EFFECT TO IN EARLIER YEARS

Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the Schemes,
such assets and liabilities remain included in the books of the Company under the name of the transferor companies (including
other companies which were amalgamated with the transferor companies from time to time). This is as per the practice
currently being followed and impacts if any arising in this respect will be recognised as and when determined.

40: EMPLOYEE BENEFITS

I. Defined Contribution Plan
Provident Fund:

The Company makes contributions to Provident Fund and Pension Scheme for eligible employees. Under the schemes, the
Company is required to contribute a specified percentage / fixed amount of the payroll costs to fund the benefits. The
contributions as specified under the law are paid to the respective fund set up by the government authority. Contributions
towards provident funds are recognised as an expense for the year. Further, the Company has also set up Provident Fund Trusts
in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make
monthly contributions to the Funds at specified percentage of the employee''s salary and aggregate contributions along with
interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trusts invest funds
following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not
lower than the rate of interest declared annually by the Government under The Employees'' Provident Funds and Miscellaneous
Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the balance sheet
date as per the principle laid down in Ind AS 19 issued by Ministry of corporate affairs and guidelines GN26 issued by the Institute
of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the
Company as at the balance sheet date. The Company''s contribution of Rs. 164.46 lakhs (31st March 2024: Rs.170.90 lakhs) to
the Provident Fund Trust in this respect has been expensed under the ''Contribution to Provident and Other Funds''.

II. Post Employment Defined Benefit Plans:

The Post Employment defined benefit scheme are managed by Life Insurance Corporation of India Limited/Trust is a defined
benefit plan. The present value of obligation is determined based on independent actuarial valuation using the Projected Unit
Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. Details of such fund are as follows:

a) Gratuity (Funded)

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 certain gratuity fund trusts. Such gratuity funds, whose investments are
managed by insurance companies/trustees themselves, 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 subject to a maximum limit of Rs. 20.00 lakhs. Vesting occurs upon completion of five years of
service. The amount of gratuity payable is the employees last drawn basic salary per month computed proportionately for
15 days salary multiplied for the number of years of service.

b) Superannuation (Funded)

The Company''s Superannuation scheme, a Defined Benefit plan, is administered through trust funds and covers certain
categories of employees. Investments of the funds are managed by insurance companies /trustees themselves. Benefits
under these plans had been frozen in earlier years with regard to salary levels then prevailing. Upon retirement, death or
cessation of employment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses
to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure of employment and
salary.

c) Staff Pension - (Unfunded)

The Company''s Staff Pension Scheme, a Defined Benefit plan, covers certain categories of employees. Pursuant to the
scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of
service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in
case of nominee. Vesting occurs upon completion of twenty years of service.

Plan assets represent investment in various categories. The return on amounts invested with LIC is declared annually by them.
Return on amounts invested with Insurance companies other than LIC is mostly by way of Net Asset Value declared on units
purchased with some schemes declaring returns annually. Investment in Bonds and Special Deposit carry a fixed rate of interest.
The expected return on plan assets is determined after taking into consideration composition of the plan assets held, assessed
risk of asset management and other relevant factors.

VIII. Sensitivity Analysis

The sensitivity analysis below is based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the
defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the defined benefit liability recognised in the balance sheet.

Note:

1. The above related party information is as identified by the management and relied upon by the auditor.

2. All transactions from related parties are made in ordinary course of business. For the year ended 31st March 2025, the
Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is
undertaken each financial year by reviewing the financial position of the related party and the market in which the related party
operates.

3. In respect of above parties, there is no provision for doubtful debts as on 31st March 2025 and no amount has been written
back or written off during the year.

4. Post-Employee benefits and other long-term employee benefits have been disclosed/paid on retirement/resignation of services
but does not include provision made on actuarial basis as the same is available for all the employees together.

5. Also refer Note no. 56(b).

The fair values of the financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values. These assumptions are subject to
resolution with respect to company''s debt and determination of terms and conditions of borrowings and amount given
as loans to various parties as stated in note no. 58 and 56 respectively:

a) The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets
and short term borrowings approximate their carrying amount largely due to the short-term nature of these
instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised
at cost in the financial statements other than dealt with hereunder approximate their fair values.

b) The Company''s long-term debt from Banks and financial institutions were originally contracted at floating rates of
interest. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made
for transaction cost. Terms and conditions of the borrowings are pending resolution as stated in Note no. 58 and there is
a uncertainty in this respect as on this date. Further, there are other unsecured borrowing as stated in note no. 25.2
terms and conditions whereof have not been decided.

c) The fair value of Inter-Corporate deposits given by the company and outstanding (net of provision) as on 31st March
2025 are based on management evaluation related to the credit and non-performance risks associated with the
counterparties which is dependent on the outcome of the CIRP proceeding currently under implementation in case of
one of the Group company where these loans have mainly been advanced to provide financial support and the legal
proceedings initiated by the company against the borrowing companies as stated in Note no. 56 or otherwise on
completion of the resolution of the company''s borrowing as stated in Note no. 58 and there is a uncertainty to the extent
as stated in the said note.

d) Interest on borrowings both Short term and Long term has been provided as stated in Note no. 60(a) which is subject to
confirmation and/or on resolution of company''s borrowing as stated in Note no. 58 and as such there is uncertainity in
this respect as on this date and amount finally payable in this respect as such is currently not determinable.

(a) Financial Instruments

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognised and measured at fair value (b) measured at amortised 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 the three levels prescribed under the Indian Accounting Standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that
have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing
price as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instruments is included in level 3.

During the year ended 31st March 2025 and 31st March 2024, there were no transfers between level 1, level 2 and level 3.

46. FINANCIAL RISK MANAGEMENT

The company''s activities exposes it to a variety of financial risks. The key financial risks include Market risk, Credit risk and
Liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse
effects on its financial performance. The Board of Directors reviews and approves policy for managing these risks. The risks are
governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in
accordance with the Company''s policies and risk objectives. As stated in Note no. 58, the company has defaulted in repayment
of borrowings including interest accrued thereon due to non recovery of the amount outstanding in respect of ICD''s given by
the company and pending completion of the resolution with respect to company''s borrowing currently under consideration of
ARC. The company expects to restructure it''s borrowings and mitigate the related financial risk. Financial risk management as
stated below has been considered based on the assumption of successful outcome of the resolution of borrowing which is
under consideration of the ARC as stated in the said note. The risk envisaged can materially be different depending upon terms
and conditions specified in this respect.

(A) 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 and cash equivalents and financial
guarantees. Loans to group companies given has lead to material concentration of credit risks due to non-recoverability of
amount thereagainst including accrued interest.

Credit risk on trade receivables is minimum since sales through different mode (i.e. auction, consignment, private - both
domestic and export) are made after judging credit worthiness of the customers, advance payment, deposit from customers or
against letter of credit by banks. The history of defaults has been marginal and outstanding receivables are regularly monitored.
Credit risk on the loans to parties is significant since recoverability thereagainst has been a matter of concern due to non¬
payment by promoter group and other entities to whom amounts have been lent and in case of one of the promoter group
company which was under CIRP as given in Note no. 56 and implementation of resolution plan as approved by Hon''ble NCLT is
in process. The Company has initiated legal proceedings against one of the promoter group company and is in the process
against other entities. Further, the company in case of a promoter group company against which CIRP proceeding is under
implementation is expected to address the risk involved therein in due course of time on resolution with respect to the
company''s borrowing.

Credit risk with respect to the balances with banks and financial institutions is managed by the Company''s treasury department in
accordance with the Company''s policy. The company currently does not have surplus fund as such to make investments. However, in
the event of fund being so available, Investments will be 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 to mitigate financial loss due to
counterparty''s potential failure to make payments.

The Company establishes an allowance for impairment that represents its estimate of losses in respect of trade and other receivables.
Receivables are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery there
against has been considered to be remote.

The carrying value of the financial assets (net of impairment losses) 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 disclosed in Note no. 45.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with
banks are held with reputed and credit worthy banking institutions.

Financial assets that are past due but not impaired

Certain Trade receivables which are past due at the end of the reporting period, no credit losses there against are expected to arise
considering the steps being taken for realisation thereof. In case of Inter-Corporate Loans due to the reasons given in Note no. 56,
such losses are currently not being determinable and as such will be dealt with on determination thereof as stated in the said note.

(B) Liquidity risk

Liquidity risk refers to the risk that the Company fails to honour its financial obligations in accordance with terms of contract. Prudent
liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due and to close out market positions.

Management monitors rolling forecasts of the company''s liquidity position and cash and 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. The Company had in earlier years granted loans to Promoter Group and other entities which
created a mismatch in servicing its debt and other obligations. Further, the cash losses incurred and cut-back payment made in earlier
years as stated in Note no. 22.7 and Note no. 60(a) has further widened the gap of Current Assets vis-a-vis Current Liabilities leading
to insufficient resources for meeting company''s obligations including those related to Employees, statutory and other liabilities
causing accumulation of the amount lying unpaid against these liabilities to a significant extent at the end of the period. In this
regards resolution with respect to company''s borrowing is under consideration as detailed in Note no. 58 to improve the overall
liquidity over a period of time. Pending this, the company as stated in said note is passing through prolonged financial distress over a
considerable period of time.

Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

i all non-derivative financial liabilities, and

ii derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of
the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying
balances as the impact of discounting is not significant. The amount of borrowings and interest thereon has been computed on the
basis stated in Note no. 60(a) and amount finally payable and terms of repayment thereof will be determinable on resolution with
respect to company''s borrowing.

(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, EURO and GBP. Foreign exchange risk arises from future commercial transactions and
recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured
through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR
cash flows of highly probable forecast transactions.

The Company as per the risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews
periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

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. Financial Instruments at fixed rates of interest exposes the company to fair value interest rate risk as there is no risk of
interest rate volatility.

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. Considering the same, the carrying amount of said borrowings was considered to be at fair
value. During 31st March 2025 and 31st March 2024, 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 a change in market interest rates.

Increase of 50 basis points (holding all other variables constant) in interest rates at the balance sheet date would result in increase in
finance cost by Rs. 730.53 lakhs resulting in increase in loss (having an impact on the financial statements) for the year ended 31st
March 2025 and Rs. 761.59 for the year ended 31st March 2024. A decrease in 50 basis point would have an equal and opposite
effect on the Company''s financial statements. This should be read with Note no. 36.2 regarding non-recognition of interest in Inter
Corporate Deposits.

Interest risk on financial assets and liabilities as stated above has been considered based on the accounting followed in this respect as
stated in Note no. 56 and 60(a). The rate of interest and amount payable in this respect will finally be determinable on completion of
resolution of company''s borrowing which as stated in Note no. 58 is under consideration of ARC. The risk envisaged can materially be
different on completion of resolution and terms and conditions being specified in this respect.

(iii) Price risk

The Company is not an active investor in equity markets; it continues to hold certain investments in equity for long term strategic
purpose which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity
instruments as at 31st March 2025 is Rs. 5,834.72 lakhs (31st March 2024: Rs. 6,239.29 lakhs). Accordingly, fair value fluctuations
arising from market volatility is recognised in Other Comprehensive Income.

(D) Agricultural Risk

Cultivation of tea being an agricultural activity and highly labour intensive industry, where there are certain specific financial risks.
These financial risks arise mainly due to adverse weather conditions, salaries, wages and other benefits payable to workers, 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:

i Managing inventory levels of agro chemicals, fertilizers and other inputs to take care of adverse weather conditions.

ii Maintaining level of consumable stores viz packing materials, coal and HSD in order to mitigate financial risk arising from
logistics problems.

iii Forward contracts are made with overseas customers as well as domestic private customers, in order to mitigate the financial
risk in fluctuation of sel

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Mar 31, 2024

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Contingent liabilities are not recognised and disclosed by way of notes to the financial statements when there is a possible obligation arising from past events, 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 when there is a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.

When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.

Contingent Assets are not recognized but disclosed in the financial statement by way of notes when inflow of economic benefit is probable.

N. EMPLOYEE BENEFITS

Employee benefits are accrued in the year in which services are rendered by the employee.

Short-term Employee Benefits

Short term Employee benefits are recognised as an expense in the statement of profit and loss in the year in which services are rendered.

Bonus

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

Post-employment Benefit Plans

Contributions to Gratuity, Super annuation fund etc., under Defined Contribution Plans payable in keeping with the related schemes are recognised as expenditure for the year.

In case of Defined Benefit Plans, the cost of providing the benefit is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in Other Comprehensive Income for the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, if any, and as reduced by the fair value of plan assets, where funded. Any asset resulting on account ofthis is limited to the present value of any economic benefit available in the form of refunds from the plan or reductions in future contributions to the plan.

O. OPERATING AND OTHER INCOME

i. REVENUE FROM SALE OF PRODUCT

Revenue from contracts with customers is accounted for only when it has commercial substance, and all the following criteria are met:

(i) parties to the contract have approved the contract and are committed to perform their respective obligations;

(ii) each party''s rights regarding the goods or services to be transferred and payment terms there against can be identified;

(iii) consideration in exchange for the goods or service to be transferred is collectible and determinable.

Revenue from contract with customers is recognized on satisfaction of performance obligation, when control over the goods or services has been transferred and/or goods/ services are delivered/ provided to the customer. Delivery occurs when the goods have been sold or shipped or delivered to a specific location, and the customer has either accepted the goods under the contract or the company has sufficient evidence that all the criteria for acceptance have been satisfied.

Revenue is measured at the amount oftransaction price (consideration specified with the customers) allocated to that performance obligation. The transaction price of goods sold is net of variable consideration on account of rebates, claims and discounts, returns and value added tax. Goods and Service Tax (GST) and such other taxes collected on behalf of third party not being economic benefits flowing to the company are excluded from revenue. Accumulated experience is used to estimate and provide for the discounts/ right of return, using the expected value method.

iii. EXPORT BENEFITS

Export incentives are accounted for in the year of export if the entitlements and realisability thereof can be estimated with reasonable accuracy and conditions precedent to claim is fulfilled.

P. BORROWING COST

Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying Property Plant Equipment (PPE) which are capitalized to the cost of the related assets. A qualifying PPE is an asset, that necessarily takes a substantial period of time to get ready for its intended use or sale. Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.

Q. RESEARCH AND DEVELOPMENT

Research and development cost (other than cost of PPE acquired) are charged as an expense in the year in which they are incurred.

R. GOVERNMENTGRANTS

Government grants are recognized on systematic basis when there is reasonable certainty of realization ofthe same. Revenue grants including subsidy/rebates are credited to Statement of Profit and Loss Account under "Other Operating Income" or deducted from the related expenses for the period to which these are related. Grants which are meant for purchase, construction or otherwise to acquire non current assets are recognized as Deferred Income and disclosed under Non Current Liabilities and transferred to Statement of Profit and Loss on a systematic basis over the useful life ofthe respective asset. Grants relating to non-depreciable assets is transferred to Statement of Profit and Loss over the periods that bear the cost of meeting the obligations related to such grants.

S. TAXESONINCOME

Income tax expense representing the sum of current tax expenses and the net charge ofthe deferred taxes is recognized in the income statement except to the extent that it relates to items recognized directly in equity or other comprehensive income.

Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted pertaining to the reporting period.

Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences with respect to carry forward of unused tax credits and any unused tax losses/depreciation to the extent that it is probable that taxable profits will be available against which these can be utilized.

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

Deferred tax assets include Minimum Alternative Tax (MAT) measured in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability and such benefits can be measured reliably and it is probable that such benefit will be realized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities.

Deferred tax items in correlation to the underlying transaction relating to Other comprehensive income and Equity are recognised in Other comprehensive income and Equity, respectively.

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

T. EARNINGSPERSHARE

Basic earnings per share are computed by dividing the net profit attributable to the equity holders ofthe company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders of the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

U. SEGMENT REPORTING

Operating segments are identified and reported taking into account the different risk and return, organisation structure and the internal reporting provided to the chief-operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance ofthe operating segments, has been identified as the Segment manager who allocates resources and assess the operating activities, financial results, forecasts, or plans for the segment.

4. CRITICAL ACCOUNTING JUDGMENTS, ASSUMPTIONS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilitieswithin the next financial yearare discussed below. The notes dealtwith in 4(a) to 4(j) below provide an overview ofthe areas that involved a high degree of judgement or complexity and of items which are likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each ofthese estimates and judgements are included in the relevant notes together with information about basis of calculation of each affected line item in the financial statements.

a) Depreciation / amortisation of and impairment loss on Property, Plant and Equipment / ROU/ Intangible assets.

Property, Plant and Equipment and Intangible Assets are depreciated/amortized on straight-line basis over the estimated useful lives in accordance with Internal assessment and Independent evaluation carried out by technical expert/ Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever applicable. ROU are depreciated on a straight line basis over the shorter ofthe lease term and useful life ofthe underlying asset. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation/ amortization and amount of impairment if any to be recorded during any reporting period. This reassessment may result in variation in the amount of depreciation and amortisation in future period.

The company reviews its carrying value of its Tangible and Intangible Assets whenever there is objective evidence that the assets are impaired. The required level of impairment losses to be made is estimated by reference to the estimated value in use or recoverable amount. In such situation Assets'' recoverable amount is estimated which is higher ofasset''s or cash generating units (CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are considered or otherwise in absence of such transactions appropriate valuations areadopted.

The assumptions for cash flows and fair valuation as required in this respect are dependent on the completion of resolution of company''s borrowing which as dealt in Note no. 4(c) below read with Note no. 59(b) is under consideration of lenders and otherwise may have significant impact.

b) Arrangement containing leases and classification of leases

Ind AS 116 requires lessee to determine the lease term as the non-cancellable period of a lease adjusted with any option to

extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any option to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination ofthe lease and the importance ofthe underlying asset to the company''s operations taking into account among other things, the location of the underlying asset and the availability of suitable alternatives. The lease terms and impact thereof are reassessed in each yearto ensure that the lease term reflects the current economic circumstances.

c) Going Concern assumption

As stated in Note no. 59(a), the financial statements ofthe company have been prepared on going concern assumption based on managements assessment of the expected successful outcome of steps and measures taken by the company and on resolution with respect to company''s borrowing currently under evaluation and consideration ofthe lenders. In the event of the managements expectation and estimate in this respect, not turing out to be feasible in future, validity of assumption for going concern and possible impact thereof, even though presently not determinable are expected to be material.

d) Fair valuation and Impairment of Loans

All financial instruments are required to be fair valued as at the balance sheet date, as provided in Ind AS 109- Financial Instruments and Ind AS 113- Fair Value Measurement. In this respect, judgement is exercised to determine the value at which such assets are to be recognised. This requires critical evaluation of the realisable value of assets based on estimation and judgements which may not turn out to be true and may lead to significant adjustments in value.

The above includes various loans and advances to companies which have been considered good and recoverable. Recoverability of these and interest thereagainst and/or adjustments required as stated in Note no. 58 will be determinable on implementation of the Resolution Plan as approved by Hon''ble NCLT in case of one of the promoter group company which was under CIRP or otherwise on completion ofthe resolution with respect to company''s borrowing.

e) Impairment of Investments in Subsidiaries and Associates

The company reviews its carrying value of investments in Subsidiaries and Associates carried at cost/ deemed cost (net of impairment if any) annually or more frequently when there is an indication for impairment. If the recoverable amount is less than its carrying amount the impairment loss is accounted for in the standalone statement of profit and loss. Fair valuation in respect of company''s investment are being undertaken by the lenders as stated in Note no. 59(a) and otherwise may have significantimpact.

f) Fair ValueofBiologicalAssets

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

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations offuture events that may have a financial impact on the Company.

g) Impairment loss on trade receivables

The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment loss as a result ofthe inability ofthe debtors to make required payments. The Company bases the estimates on theageingofthecustomersbalance, theircredit-worthiness and historicalwrite-offexperience.

h) Taxes on Income

Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses for estimation ofthe provision for taxes on income including agricultural income. These are based on assumption and inferences and are subject to final assessment by the taxation authorities. Further judgement is involved in determining the deferred tax position as on the balance sheet date.

The Company has unused tax tax credits, unrecognised deferred tax assets and entitled to tax holiday in Assam and West Bengal for which management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likelytiming and the level offuturetaxable profittogetherwith futuretax planning strategies. The management has reviewed the rationale for recognition of Deferred Tax Assets and based on the likely timing and level of profitability in future and expected utilisation of deferred tax thereagainst such recognition of deferred tax assets has been carried out. The amount of deferred tax is dependent upon the completion of resolution with respect to company''s borrowing as referred to in Note no. 59(a) and therefore assumption for reversal/adjustment of deferred tax is expected to be materially different upon completion of resolution of company''s debt for which required steps are being taken and effect will then be given on determination of amountthereof.

i) Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which are subject to change in future.

Management also uses in-house and external legal professional to make judgments for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/ against the Company.

j) Defined benefit obligation (DBO)

The present value of the defined benefit obligations and long term employee benefits depends on a number of factors that are determined on an actuarial basis using a number of assumptions. An actuarial valuation involves making various assumptions that maydiffer based on actual developments in future. These include the determination ofthe discount rate, inflation, future salary increases and mortality rates. Due to the complexities involved in the valuation and being long-term in nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at every financial year end.

Nature and Purpose of Reserves

20.1 Capital Reserve

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

20.2 Securities Premium Reserve

Securities Premium represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013.

20.3 General Reserve

General reserve is a free reserve which is created by transfer of profits from retained earnings. As the general reserve is created by a transfer from one component to another and is not an item of Other Comprehensive Income, items included in the general reserve is generally not reclassified subsequently to Statement of Profit and Loss.

20.4 Other Reserves

Represents the balance amount of reserve which had arisen on transfer of BulkTea Division of Eveready Industries India Limited pursuant to Scheme ofArrangement.

20.5 Retained Earnings

Retained earnings generally represents amount of accumulated surplus/deficit of the company. This includes Other Comprehensive Income of (Rs. 8,220.09 lakhs) (31st March 2023: (Rs. 7,136.01 lakhs)) relating to remeasurement of defined benefit plans (net of tax) which cannot be reclassified to Statement of Profit and Loss.

20.6 Revaluation Surplus

Represents differential arising on revaluation of Property, Plant and Equipment by the erstwhile BulkTea Division of Everready Industries Limited demerged to the companywith effectfrom 1st April 2004 pursuantto the Scheme ofArrangement. The said reserve has been carried over being part of PPE, recognised at carrying value as per previous GAAP as deemed cost on the date of transition to Ind AS.

39.1 Exceptional Item include:

a) Provision of Rs. 91,942.16 lakhs during the year ended 31st March 2023 made against loans and Inter-Corporate Deposits (ICDs) including interest thereon given to Promoter group and certain other companies as stated in Note no. 58(a) and

b) Provision of Rs. 1,400.00 lakhs made during the year ended 31st March 2023 against advance to a body corporate given in earlier years and lying outstanding for a considerable period of time, recoverability whereof in absence of required details and confirmations etc., considered remote was fully provided for in that year.

40. Schemes Of Amalgamation/Scheme Of Arrangement Given Effect Toln Earlier Years

Pending completion ofthe relevant formalities oftransfer of certain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books ofthe Company under the name ofthe transferor companies (including other companies which were amalgamated with the transferor companies from time to time).

41. EMPLOYEE BENEFITS I. Defined Contribution Plan Provident Fund:

The Company makes contributions to Provident Fund and Pension Scheme for eligible employees. Under the schemes, the Company is required to contributeaspecified percentage/fixed amount ofthe payroll costs to fund the benefits. The contributionsas specified under the law are paid to the respective fund set up by the government authority. Contributions towards provident funds are recognised as an expense for the year. Further, the Company has also set up Provident Fund Trusts in respect of certain categories of employees which is administered byTrustees. Both the employees and the Company make monthly contributions to the Funds at specified percentage ofthe employee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, ifany, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the balance sheet date as per the principle laid down in Ind AS 19 issued by Ministry of corporate affairs and guidelines GN26 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation ofthe Company as at the balance sheet date. The Company''s contribution of Rs. 170.90 lakhs (31st March 2023: Rs. 184.11 lakhs) to the Provident Fund Trust in this respect has been expensed under the ''Contribution to Provident and Other Funds''.

II. Post Employment Defined Benefit Plans:

The Post Employment defined benefit scheme are managed by Life Insurance Corporation of India Limited/Trust is a defined benefit plan. The present value of obligation is determined based on independent actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Details of such fund are as follows:

a) Gratuity (Funded)

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 certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/trustees themselves, 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 subject to a maximum limit of Rs. 20.00 lakhs. Vesting occurs upon completion of five years of service. The amount of gratuity payable is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

b) Superannuation (Funded)

The Company''s Superannuation scheme, a Defined Benefit plan, is administered through trust funds and covers certain categories of employees. Investments of the funds are managed by insurance companies /trustees themselves. Benefits under these plans had been frozen in earlier years with regard to salary levels then prevailing. Upon retirement, death or cessation of employment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure of employment and salary.

c) Staff Pension - (Unfunded)

The Company''s Staff Pension Scheme, a Defined Benefit plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion oftwenty years ofservice.

d) Medical Insurance Premium Re-imbursement (Unfunded)

The Company had a scheme of re-imbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject to a monetary limit. The scheme has been discontinued w.e.f 19th December 2023 and the liability thereof have been written back during the year.

e) Expatriate Pension (Unfunded)

The Company had an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to their surviving spouses. The scheme has been discontinued w.e.f 1 st April 2023 and the liability thereof have been written back during the year.

(i) FAIR VALUATION TECHNIQUES:

The fair values of the financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values. These assumptions are subject to completion of resolution plan and determination of terms and conditions of borrowings and amount given as loans to various parties as stated in note no. 59 and 58 respectively:

a) The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets and short term borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at cost in the financial statements other than dealt with hereunder approximate their fair values.

b) The Company''s long-term debt from Banks and financial institutions were originally contracted at floating rates of interest. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. Terms and conditions of the borrowings are pending resolution as stated in Note no. 59(a) and there is a uncertainty in this respect as on this date. Further, there are other unsecured borrowing as stated in note no. 25.4 terms and conditions whereof have not been decided.

c) The fair value of Inter-Corporate deposits given by the company and outstanding (net of provision) as on31st March 2024 are based on management evaluation related to the credit and non-performance risks associated with the counterparties which is dependent ontheoutcome ofthe resolution plan in case of one ofthe promotergroupcompanywhich was underCIRPasapproved byHon''ble NCLT, Kolkata as stated in Note no. 58(a) or otherwise on completion ofthe resolution ofthe company''s borrowing as stated in Note no. 59(a) and there is a uncertainty to the extent as stated in the said note.

d) Interest on borrowings both Short term and Long term has been provided as stated in Note no. 59(c) which is subject to confirmation and/or on completion of resolution as stated in Note no. 59(a) and as such there is uncertainity in this respect as on this date and amount finally payable in this respect as such is currently not determinable.

(ii) FAIR VALUE HIERARCHY (a) Financial Instruments

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value (b) measured at amortised 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 the three levels prescribed under the Indian Accounting Standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. Ifall significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more ofthe significant inputs is not based on observable market data, the instruments is included in level 3.

During theyearended 31st March 2024and 31st March 2023,therewere no transfers between level 1, level 2 and level 3.

The company''s activities exposed it to a variety of financial risks. The key financial risks include Market risk, Credit risk and Liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors reviews and approves policy for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. As stated in Note no. 59(a), the company has defaulted in repayment of borrowings including interest accrued thereon due to non recovery oftheamountoutstanding in respect ofICD''sgiven bythecompanyand pending completion ofthe resolutionwith respect to company''s borrowing currently under consideration of lenders. The company expects to restructure it''s borrowings and mitigate the related financial risk. Financial risk management as stated below has been considered based on the assumption of successful outcome of the resolution of borrowing which is under consideration of the lenders as stated in the said note. The risk envisaged can materially be different depending upon terms and conditions specified in this respect.

(A) 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 and cash equivalents and financial guarantees. Loans to group companies given has lead to material concentration of credit risks due to non-recoverability of amount thereagainst including accrued interest.

Credit risk on trade receivables is minimum since sales through different mode (i.e. auction, consignment, private - both domestic and export) are made after judging credit worthiness of the customers, advance payment, deposit from customers or against letter of credit by banks. The history of defaults has been marginal and outstanding receivables are regularly monitored. Credit risk on the loans to parties is significant since recoverability thereagainst has been a matter of concern due to non-payment by promoter group and other entities to whom amounts have been lent and in case of one of the promoter group company which was under CIRP as given in Note no. 58(a) and implementation of resolution plan as approved by Hon''ble NCLT is in process. The Company is expecting to deal with the outstanding amounts and address the risk involved therein indue course of time on implementation of resolution plan as per the CIRP proceedings initiated against one of company to whom loan have been advanced by these Group companies and/or on completion of resolution ofthe company''s borrowing.

Credit risk with respect to the balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. The company currently does not have surplus fund as such to make investments. However, in the event offund being so available, Investments will be 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 establishes an allowance for impairment that represents its estimate of losses in respect of trade and other receivables. Receivables are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery there against has been considered to be remote.

The carrying value of the financial assets (net of impairment losses) represent the maximum credit exposure. The maximum exposure to credit riskatthe reporting date isthe carrying value ofeach class offinancial assets disclosed in Note no.47.

Financial assets that are neither past due nor impaired.

Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions.

Financial assets that are past due but not impaired.

Certain Trade receivables which are past due at the end of the reporting period, no credit losses there against are expected to arise considering the steps being taken for realisation thereof. In case of Inter-Corporate Loans due to the reasons given in Note no. 58(a), such losses are currently not being determinable and as such will be dealt with on determination thereofas stated in the said note.

(B) Liquidity risk

Liquidity risk refers to the risk that the Company fails to honour its financial obligations in accordance with terms of contract. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability offunding through an adequate amount of committed credit facilities to meet obligations when dueand to close out market positions.

Management monitors rolling forecasts of the company''s liquidity position and cash and 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. The Company had in earlier years granted loans to Promoter Group and other entities which created a mismatch in servicing its debt and other obligations. Further, the cash losses incurred and cut-back payment made as stated in Note no. 21.7 and Note no. 59(a) has further widened the gap of Current Assets vis-a-vis Current Liabilities. In this regards resolution with respect to company''s borrowing is under consideration as detailed in Note no. 59(a) to improve the overall liquidity over a period of time. Pending this, the company as stated in said note is passing through prolonged financial distress over a considerable period oftime.

Maturities offinancial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

i all non-derivative financial liabilities, and

ii derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. The amount of borrowings and interest thereon has been computed on the basis stated in Note no. 59(c) and amount finally payable and terms of repayment thereof will be determinable on resolution with respect to company''s borrowing.

(C) Market risk

(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, EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecasttransactions.

The Company as per the risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

10% appreciation of the respective foreign currencies with respect to functional currency (holding all other variables constant) of the Company would result in reduction of the Company''s loss (having an impact on the financial statements) by approximately Rs. 75.89 lakhs for financial assets. 10% depreciation ofINR would have an equal and opposite effect on the Company''s financial statements.

(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. Financial Instruments at fixed rates of interest exposes the company to fair value interest rate risk as there is no risk of interest rate volatility.

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. Considering the same, the carrying amount of said borrowings was considered to be at fair value. 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 a change in market interest rates.

The exposure of the Company''s financial assets and financial liabilities as at 31st March 2024 and 31st March 2023, to interest rate risk excluding certain ICD and Deposits as dealt in Note no. 25.4 is as follows:

Increase of 50 basis points (holding all other variables constant) in interest rates at the balance sheet date would result in increase in finance cost by Rs. 761.33 lakhs resulting in increase in loss (having an impact on the financial statements) for the year ended 31st March 2024 and Rs. 787.39 for the year ended 31st March 2023. A decrease in 50 basis point would have an equal and opposite effect on the Company''s financial statements. This should be read with Note no. 36.2 regarding non-recognition of interest in Inter Corporate Deposits.

Interest risk on financial assets and liabilities as stated above has been considered based on the accounting followed in this respect as stated in Note no. 58(a) and 59(c). The rate of interest and amount payable in this respect will finally be determinable on completion of resolution of company''s borrowing which as stated in Note no. 59(a) is under consideration of lenders. The risk envisaged can materially be different on completion of resolution and terms and conditions being specified in this respect.

(iii) Price risk

The Company is not an active investor in equity markets; it continues to hold certain investments in equity for long term strategic purpose which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity instruments as at 31st March 2024 is Rs 6,239.29 lakhs (31st March 2023: Rs. 5,212.91 lakhs). Accordingly, fair value fluctuations arising from market volatility is recognised in Other Comprehensive Income.

(D) Agricultural Risk

Cultivation of tea being an agricultural activity and highly labour intensive industry, where there are certain specific financial risks. These financial risks arise mainly due to adverse weather conditions, salaries, wages and other benefits payable to workers, logistic problems inherent to remote areas, and fluctuation of selling price offinished goods (tea) due to increase in supply/availability.

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

i) Managing inventory levels of agro chemicals, fertilizers and other inputs to take care of adverse weather conditions.

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

iiii Forward contracts are made with overseas customers as well as domestic private customers, in order to mitigate the financial risk in fluctuation ofselling price oftea.

iv Measures for rationalising the labour costs especially with possible variations of deployment thereof on casual basis.

v. Dat to day monitoring of the required liquidity in the system given the constraints currently faced by the company in this respect. Resolution of company''s borrowing as stated in Note no. 59(a) is under consideration and outcome thereof as expected is for ensuring sustainability of core agricultural operations ofthe company.

(a) RiskManagement

The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximize shareholder value. The Company''s objective when managing capital is to safeguard its ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stakeholders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile ofthe Company.

In orderto maintain oradjustthe capital structure, the companydepending upon the outcome ofthe resolution ofthe borrowing as stated in Note no. 59(a) may issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company intends to monitors capital on the basis of net debt to equity ratio and maturity profile of overall debt portfolio ofthe Company.

Net debt implies total borrowings ofthe Company as reduced by Cash and Cash Equivalent and Equity comprises all components attributable to the owners ofthe Company.

The following table summarises the Net Debt to Equity Ratio which is subject to final determination of amount thereof on resolution with respect to company''s borrowing as stated in Note no. 59(a):

(v) Further to above, the Company has certain operating lease arrangements for office, transit houses, etc. on short-term leases. Expenditure incurred on account of rental payments under such leases during the year and recognized in the Statement of Profit and Loss amounts to Rs. 114.91 lakhs (31st March 2023: Rs. 253.76 lakhs). Also refer note no. (vi) below.

(vi) Lease Agreement in respect of premises having registered and corporate office of the company has expired on 31st August, 2022 and terms thereof are yet to be finalised by the lessor. Pending this, the amount of rent payable by the company being non-determinable as such has not been recognised in these financial statements. Adjustments, if any required in this respect will be recognised on determination thereofand will then be given effect to in the financial statement ofthe subsequent periods.

54. SALE OF SPECIFIED ASSETS OF CERTAIN TEA ESTATES

On 9th August, 2018, the shareholders ofthe Companyapproved to sell specified assets ofcertain tea estates. In continuation ofthe steps

initiated in this respect in earlier years:

a) The specified assets of one tea estate had been identified and approved for sale. Memorandum of Understanding/Term sheet with the proposed buyer for an aggregate consideration of Rs. 2,815.00 Lakhs, subject to due diligence and necessary approvals, etc. had also been entered by the company. Pending final binding agreement and completion of the transaction, such sales has not been recognised. Advance of Rs 550.00 Lakhs received from the proposed buyer against sale consideration has been shown under''Other Current Liabilities''.

b) Further, the Company had received advances against sale of estates and certain other assets amounting to Rs. 1,413.87 lakhs (including Rs. 550.00 lakhs dealt in (a) above). Due to reason given in (c) below, the sale of these specified assets have not been given effect to and these has been continued to be included under Property, Plant and Equipment (PPE) rather than as "Assets held for Sale" and have been depreciated in accordance with other items of PPE

c) The Hon''ble High Court of Delhi vide it''s ad-interim ex-partie order of injunction dated 13th December 2019 has restrained the company from selling, transferring, alienating, disposing, assigning, encumbering or creating third party rights on any of its assets and carrying out any changes in its capital structure or any corporate or debt restructuring and the matter is pending before Arbitral Tribunal.

56.1 Amount is below the rounding off norm adopted by the Company.

57 IL&FS INFRASTRUCTURE DEBT FUND (''ILFS-IDF'')

The company had given undertaking to IL&FS Infrastructure Debt Fund (''ILFS-IDF'') and Aditya Birla Finance Limited (''ABFL'') in connection

with borrowings and other facilities availed by the group entities. Pursuant to an agreement entered with ILFS-IDF and ABFL, the claims

made by them have been settled during the year for Rs. 4,967.00 lakhs and Rs. 3,200.00 lakhs respectively by Dufflaghur Investment Limited.

The company''s obligations in this respect and related terms and condition thereof and consequential impact if any in this respect have

presently not been determined and therefore has not been given effect to in these financial statements.

58 INTER CORPORATE LOANS GIVEN

a) In respect ofInter-Corporate Deposits (ICDs) given to Promoter group and certain other companies (''borrowing companies'') as given in Note no. 50(B), the amount outstanding aggregates to Rs. 2,76,108.95 Lakhs as at 31st March 2024 (31st March 2023: Rs. 2,76,173.95 Lakhs). Further, interest of Rs. 9,941.50 lakhs on these amounts were accrued upto 31st March 2019 are also outstanding as on this date. Interest on such ICDs considering the waiver sought by borrower companies and uncertainties involved with respect to recovery and determination of amount thereof, has not been accrued since 01 st April 2019. These borrowing companies which in turn advanced the amount so taken by them to Promoter Group and other entities including one ofthe promoter group company which was under Corporate Insolvencyand Resolution Process (''CIRP'') as perthe Insolvencyand Bankruptcy Code, 2016 (IBC) and in respect ofwhich the Resolution Plan as submitted and approved by Hon''ble National Company LawTribunal (''NCLT''), Kolkata pursuant to CIRP is under implementation. Provision of Rs. 1,01,039.50 lakhs (including Rs. 91,942.16 lakhs shown as exceptional items under Note no. 39) on lumpsum basis without prejudice to company''s legal right to recover the amounts given by it, has been carried forward in these financial statements. This includes Rs. 9,941.50 lakhs against interest accrued upto 31st March 2019 which were fully provided for in the earlier years. The amount finally recoverable against outstanding amounts net of provision thereagainst as mentioned is pending determination and consequential impact will be given effect to on ascertainment ofamount thereof. Pending this and the resolution with respect to company''s borrowing by the lenders as dealt with in Note no. 59(a) below, no further provision/adjustment at this stage has been made and recognised in the financial statement for the year ended 31st March, 2024.

b) In respect of the Inter-Corporate Deposits to companies as dealt herein above inNote no. 58(a), the predecessor auditors'' had issued an adverse opinion on the audited financial statement for the year ended 31st March 2019. Inter-Corporate Deposits to companies as dealt herein above include amounts reported upon by predecessor auditor being in the nature of book entries. This includes amounts given to group companies whereby applicability of Section 185 of the Companies Act, 2013 and related non-compliances, if any could not be ascertained and commented upon by them. Loan of Rs. 1,85,010.95 Lakhs (net of provision) given to various parties as given in Note no. 58(a) above are outstanding as on 31st March 2024. The issues raised including utilisation ofamount of these loans etc. are also being examined by relevant authorities. Replies to the queries sought and information and details required by the authorities have been provided and final outcome and/or directions if any are awaited as on this date.

59 GOING CONCERN AND DEFAULT IN BORROWINGS

a) The Company''s financial position is continued to be under stress and the operational performance has further deteriorated in the recent period primarily due to the increase in wage rate and decrease in the realisation against output. The Inter-Corporate Deposits (''ICDs'') given to various Promoter group and certain other entities in earlier years along with interest to the extent accrued earlier are lying outstanding. Considering the possibilities of recovery etc., Rs. 1,01,039.50 lakhs as stated in Note no. 58(a) were provided in the earlier year against the amount outstanding in respect of the above ICDs. Non-recovery of such ICDs coupled with current operational performance have caused financial constraints resulting in hardship in servicing ofthe short term and long-term debts and meeting other liabilities. Even though certain repayments have been made to lenders against borrowings apart from by invocation of securities etc. by them and through cut-back against tea sale proceeds, this along with the operational losses has resulted in insufficiency offund for making payment towards company''s obligations including those relating to Employees, statutory and other liabilities causing accumulation ofamounts being lying unpaid against these liabilities to a significant extent as on31st March, 2024.

The Resolution process of the company in terms of circular dated 07th June, 2019 issued by the Reserve Bank of India was initiated in earlier years. Inter-Creditor Agreement (''ICA'') for arriving at and implementing the resolution plan was signed by all the lenders (''bankers''). Moreover, the forensic audit for utilisation of funds borrowed in the past conducted on behest of the lenders, Techno Economic Viability (TEV), Valuation oftea estatesand otherassets and credit rating fordraft Resolution Plan prepared bySBI Capital Markets Limited, one ofthe leading investment banker were completed. Meanwhile, certain lender and creditor have filed petitions under Insolvencyand Bankruptcy Code, 2016 (''IBC'') with Hon''ble National Company LawTribunal, Kolkata (''NCLT'') which are pending as on this date. Pending these, even offer for One Time payment of Rs. 1,03,000.00 lakhs (''OTS'') in settlement of entire amount outstanding against their loans including interest thereon was made at the behest ofthe lenders by the company, the validity period ofwhich in absence of consensus among certain lenders has expired on 30th September, 2023. Consequent to this, the company on the request ofthe lenders has submitted a fresh resolution plan in the month of January 2024 and reports on the company''s valuation carried out by two Independent Valuers appointed by the lenders have been submitted to them. The lenders as confirmed by the management are considering the proposals including that submitted by the company with respect to the borrowings from them and necessary communication conveying their decision on the matter is awaited as on this date.

The management is confident that the lenders will arrive at a suitable resolution with respect to the company''s borrowings from them so as to facilitate in arriving at a sustainable amount in this respect along with related costs thereto and the period over which these are repayable.

Considering the lenders'' support in restructuring the debt as above and resultant rationalisation of costs and period of repayment of the company''s borrowing along with management''s continuous effort for rationalising operational costs as well and additional fund to be made available in the system or otherwise and other ameliorative measures taken and/or proposed to be taken in due course of time it is envisaged that the company will be able to generate sufficient cashflows to meet its obligations and strengthen its financial position over a period oftime.

In view of the measures dealt herein above being under active consideration as on this date pending final decision of the lenders on the matter, these financial statement have been prepared on going concern basis.

b) As stated in Note no. 59(a), the Company has incurred significant amount of losses and it''s current liabilities are in excess of the current assets. Considering these indicators and circumstances stated herein above in Note no. 59(a), fair Value of Property, Plant and Equipment, Capital Work in progress and other Intangible Assets (''CGU'') are required to be ascertained for testing of Impairment thereagainst. Further, the company has investment of Rs. 15,967.18 lakhs in Borelli Tea Holdings Limited which are also required to tested for impairmentas on31st March, 2024.Thevaluation exerciseas stated in Note no. 59(a) has been undertaken bythe lenders and outcome thereof is awaited as on this date. Pen

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Mar 31, 2023

1. "ROU Buildings" relates to building premises taken on lease and recognised as "Right of Use" in terms of Ind AS 116 on implementation with effect from 1 st April 2019 (Refer Note no. 53).

2. "ROU Building" includes Tea Factory taken on lease. In absence of break-up value of lease rental against different items of Property, Plant and Equipment, so acquired on lease, the rental capitalised in terms of Ind AS 116 had been categorised and depreciated

over the tenure of lease. The cost of upgradation of the said Tea Factory including installation of new Plant and Equipment had been classified under respective items of PPE and has been transferred to lessor during the year at the residual value as agreed in terms of the agreement on expiry of lease term.

3. The Company has 31 tea estate land in State of Assam for which lease(patta) has been granted for carrying out the plantation activity against payment of Land Revenue. The company has 2 tea estates land taken on lease for 30 years on renewal basis from Government of West Bengal which have been recognised and disclosed as ROU leasehold land. The Company''s right for plantation in the State of Assam is not for a specified lease term against lease payments (other than land revenue) and not expected to be withdrawn or discontinued in foreseeable future and as such perpetual in nature. Capitalisation of costs thereof as required in terms of Ind AS 116 and amortisation over the lease terms had therefore not been considered in this respect.

4. The Company doesn''t hold any Benami Property and there is no proceedings initiated or pending against the Company for holding any Benami Property under the Benami Transaction (Prohibition) Act, 1988 and rules made there under.

5. Refer note. no. 21 and 25 in respect of charge created against borrowings and note no. 54 referring restriction imposed by Hon''ble High Court of Delhi relating to disposal of assets.

6. During the year, BTHL has fully impaired it''s investment in Step down subsidiary i.e. Phu Ben Tea Company Limited (Vietnam) considering the operating losses incurred during the current and previous reporting years resulting in erosion of it''s entire net worth. Keeping in view thesame,an exercise to assess the impairment in respect of Investment in BTHL has been undertaken bythe management and no adjustment in carryingvalueofinvestments in BTHL has been considered necessary.The saidvaluation has been carried out byan Independent valuer appointed in this respect and as per the report received no provision for impairment is required against the carrying value of Investment in BTHL.

8.5 In connection withaTerm Loan from ICICI Bank Limited ofRs.5,000.00 lakhs (31st March, 2022: Rs.5,000.00 lakhs) taken byMcNally Bharat Engineering Company Limited (MBECL), the Company has furnished a Non-Disposal Undertaking of its present and future holding of shares in MBECL, which will remain valid as long as the said amount remains due and unpaid by MBECL (Also Refer Note no. 8.10).

7. Amount is below the rounding off norm adopted by the Company.

8. Shares of Eveready Industries India Limited were pledged to Housing Development Finance Corporation Limited against short-term loan of Rs. 7,500.00 lakhs (Balance Outstanding as on 31st March 2023: Nil) pending release of security by the lenders.

9. Shares of The Standard Batteries Limited are pledged to Aditya Birla Finance Limited against short-term loan of Rs. 1,000.00 lakhs (Balance Outstanding as on31st March 2023: Nil) pending release ofsecuritybythe lenders.

10. Trading of Kilburn Office Automation Limited Shares have been suspended on the stock exchange. Accordingly, for the purpose offair valuation ofthese shares have been derived based on the latest audited financial statement.

11. Consequenttothe initiation ofCorporate Insolvencyand Resolution Process (CIRP) andappointmentofResolution Professional in case ofMBECL,the company hasfairvalued it''s investment to nominal value of Re. 1 pending finalisation and approval ofresolution plan ofMBECLby the comittee of creditors.

8.11 In respect of Company''s investment in Suryachakra Seafood limited (SSL), purusant to the Scheme ofArrangment approved by Hon''ble High Court in earlieryears, thesaid companywas transferred to Arunodaya Green Fuels Limited (AGFL) and Shareholders ofSSL were alloted 1 equityshareofAGFLagainst3equitysharesofSSL.

9.1 Loans to employees included remuneration to the extent of Rs. 900.40 lakhs as on 31st March 2022 paid to Managing Director and Wholetime Director as decided by the Shareholders vide their special resolution in the Annual General Meeting (AGM) dated 30th December 2020. Pursuantto thecompany''sapplication forobtaining approval ofsuch paymentsfrom banksandfinancial institutions, as stated by the management in principle approval had since been granted by majority of the lenders in the previous year. These amounts were approved by the lender in the meeting dated 10th May 2022 of the banks and financial institutions received by the management in the month ofJune 2022 supported by legal advice in this respect have been charged to the Statement of Profit and Loss duringtheyear ended 31st March, 2023.

10.1 Margin money and Fixed deposits with banks represents the amount lying against bank guarantee issued by them under Non-Fund based facilities granted.

10.2 Receivable against Sale ofspecified assets of Tea Estates represents the amount receivable from buyers subject to fulfilment ofconditions in terms of Sales Agreement.

10.3 Interest subsidy receivable represent the amount receivable under Interest Subsidy 1997 Scheme for the period from 2007-08 to 200810 against which the claims has been recommended by DIC district to DIC Guwahati but the subsidy has not released due to letter dated 18th June 2014 from DIPP, New Delhi stating that the said Scheme is available for incremental borrowing. The company had preferred an appeal before Hon''ble High Courtat Delhi and thejudgement has been delivered in favourofthecompanyand therefore theamount has been considered good and recoverable. Pendingfinalisation ofthe matterand determination oftheamount thereof, claim for interest thereagainst for the subsequent period has not been recognised.

10.4 Includes Rs.1,051.99 lakhs, being the amount of tax deducted by the Bodies Corporate to whom Loans were granted and were not deposited by them. Such amounts remain provided for in the financial statement.

11.1 In connection with an overseasacquisition ofasubsidiaryin 2005,the IncomeTaxauthorityhad raised a demand ofRs.5,278.00 lakhs during theyear2009-10on theCompanyon account ofalleged non-deduction oftax at sourceand interest thereon pertaining to the transaction.TheCompanychallenged thesaid demand before theappropriate authorities and has obtained a stayagainst the same from the Hon''ble High Court ofCalcutta.The Companydeposited Rs. 700.00 lakhsduring theyear2011-12with Income Tax Authority under protest. In terms ofthe Share Purchase Agreement,Capital Gain orothertaxes, if any, relating to sale ofshares etc. is to be borne by the seller and not the Company. Under the Taxation Laws (Amendment) Act 2021 and the notification issued under Income-tax (31stAmendment) Rules 2021,theCompanyasdirected by IncomeTaxauthorities has withdrawn theappeal and the writ petition filed as mentioned above.Consequenttothis,theCommisionerofIncomeTax (IT&TP) has issued an orderon 14th February2022granting the relief in terms of the said amendment enabling the Company to claim the said amount of Rs. 700.00 lakhs deposited by it.

14.3 Trade Receivable secured represents amount secured against value of building available as security from a customer. Such building had been disposed off by the Liquidator of the said customer in earlier years. The sale proceeds thereof had been withheld by the liquidator and is expected to be realised on resolution of various cases concerning legal ownership of said building.

16.1 Amount is not duefortransferto Investor Education and Protection Fund.

16.2 The Company has entered into a Memorandum of Understanding with certain Tea Auction Brokers whereby the company receives advance againstfuture sales which is repaidfrom the said bankaccount on realisation ofsale proceed of Tea directly credited to the said account.

16.3 Refer Note no. 25 to thefinancial statements in respectofchargecreated against borrowings.

18.2 The proceedings initiated in the earlier year under “Insolvency and Bankruptcy Code, 2016" (IBC) pursuant to a petition filed by a corporate lender having an outstanding balance of Rs. 10,000.00 lakhs had been closed following a settlement arrived at towards the amount payable in this respect. Rs. 12,000.00 lakhs had been paid to said corporate lenderbycertain partieson behalfofthe company and differential of Rs. 2,000.00 lakhs pending paymentofentire amount and finalisation ofnecessaryterms etc. and non-recognition of interest as stated in Note no. 36.2 had been carried forward in the financial statement. During the year, as stated in Note no 36.3, consequent to the ratification of such payment by the Board of Directors, the amount paid over and above has been recognised as finance cost, pending discharge of the balance obligations and finalisation of the related terms and conditions of such settlement.

18.3 Includes Rs. 1,400.00 lakhs outstanding from a party against advance given in earlier years and lying outstanding for a considerable period of time, recoverability whereof in absence of required details and confirmations etc., being considered remote, has been fully provided for and shown as exceptional item in these financial statement.

18.4 Refer Note no. 25 to thefinancial statements in respectofchargecreated against borrowings.

19.2 Rights, preferences and restrictions attached to Shares

The Company has one class of shares referred to as Equity Shares having a par value of Rs. 5.00 each. Each Holder of Equity Shares is entitled to onevote per share. In theeventofliquidation ofthe Company,the equityshareholders will be entitled to receiveassets of the Company remaining after distribution of all preferential amounts, in proportion of their shareholding.

19.3 Buy Back of Shares

During the year ended 31st March, 2019, pursuant to the approval of the Board of Directors the Company had bought back 5,000,000 equity shares at an aggregate consideration of Rs. 6,901.28 Lakhs.

Nature and Purpose of Reserves20.1 Capital Reserve

Represents the amount transferred from the transferorcompany pursuant to Scheme ofArrangement effected in earlieryears.

20.2 Securities Premium Reserve

Securities Premium represents the amount received in excess ofparvalue ofsecurities and is available for utilisation as specified under Section 52ofCompanies Act, 2013.

20.3 General Reserve

General reserve is a free reserve which is created by transfer of profits from retained earnings. As the general reserve is created by a transferfrom one componentto anotherand is not an item ofOther Comprehensive Income, items included in the general reserve is generally not reclassified subsequently to Statement of Profit and Loss.

20.4 Other Reserves

Represents the balance amount of reserve which had arisen on transfer of BulkTea Division of Eveready Industries India Limited pursuant to Scheme of Arrangement.

20.5 Retained Earnings

Retained earnings generally represents amount of accumulated surplus/deficit of the company. This includes Other Comprehensive Income of (Rs. 7,136.01 lakhs) (31st March 2022: (Rs. 5,596.60 lakhs)) relating to remeasurement of defined benefit plans (net of tax) which cannot be reclassified to Statement of Profit and Loss.

20.6 Revaluation Surplus

Represents differential arising on revaluation of Property, Plant and Equipment by the erstwhile BulkTea Division of Everready Industries Limited demerged tothecompanywith effectfrom 1st April 2004pursuantto theSchemeofArrangement.Thesaid reserve has been carried over being part of PPE, recognised at carrying value as per previous GAAP as deemed cost on the date of transition to Ind AS. The amount ofdepreciation attributable to the said revaluation is transferred from the said reserve to general reserve as perthe practice followed in this respect.

20.7 Other Comprehensive Income

Thecompanyhas elected to recognise changes in thefairvalue ofnon-current investments in Equity Instruments (otherthan Subsidiary and Associates) through OCI. This reserve represents the cumulative gains and losses arising on equity instruments measured at fair value. The company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed. This also includes gain/losses on defined benefit obligations which is transferred to retained earnings as stated in Note 20.5 above.

21.2 During the year ended 31st March, 2020, Yes Bank Limited had recalled its entire loan outstanding including interest thereon. Accordingly, such loans had been considered as due for payment. Further during the year, Yes Bank Limited as informed to the company has assigned theentire loan facilities granted bythem tothe companyin favorofJ C Flowers Asset Reconstruction Private Limited and accordingly the same has been taken on the record by the company. Though the loans have been assigned, the charges/ security, amount, terms and conditions etc. are yet to be confirmed/ modified pending completion of the Resolution Process as stated in Note no. 59(a).

21.3 In terms ofagreement with lenders the above mentioned loans in certain cases were also required to be secured as stated in Note 25.2.

21.4 The Security as disclosed above have been based on the charge documents filed with ROC. Further certain security has been disposed off by the lenders for recovering their dues and accordingly such securities have not been disclosed herein above. As stated in Note no. 59, Resolution process is under consideration of lender and thereby terms and conditions including the period and amount of repayment etc. thereofand thesecurityasgiven herein above will accordingly be modified on completion ofthe Resolution Process.

21.5 Thedisclosuregiven herein above has been madeon the basis mentioned in note no.59(b).Thedefaultand amountduearetherefore subject to confirmation and reconciliation with respective parties and completion of resolution process under consideration by lenders as stated in Note no. 59(a).

21.6 Pending completion of resolution process as stated in Note no. 59(a) any further charge or satisfaction as such could not be filed with Registrar ofCompanies (ROC) and details ofcharges herein above are based on filings done earlier.

21.7 Also Refer Note no. 59 and 36.

23.1 The ultimate realisation of deferred tax assets, unused tax credit is dependent upon the future taxable income ofthe company. Deferred Tax Assets including MAT Credit entitlement has been recognised on management''s assessment of reasonable certainty for reversal/utilisation thereof against future taxable income.

Deferred tax assets in respect of MAT Credit Entitlement amounting to Rs. 2,834.61 lakhs and on provision of Rs. 13,046.99 lakhs created during the year against intercorporate deposits and other as detailed in Note no. 39 pending determination ofthe amount thereof considering the principle of prudence has not been recognised.

25.1 Refer Note no. 21.1 in respect ofdefault in borrowings

25.2 In terms of agreement with lenders the above mentioned loans in certain cases were also required to be secured against equitable mortgageofspecific tea estates ofthe companyalong with other lendersand pledgeofentireequityshares ofMcleod Russel Uganda Limited (MRUL). However, in viewofpending resolution process,such loan could not befullysecuritised as required in term ofagreement with lenders.

25.3 The Security as disclosed above has been based on the charge documents filed with ROC. Further certain security has been disposed offbythe lenders against repayments oftheirdues and accordinglysuch securities have not been disclosed herein above. Further, in certain cases Personal guaranteeofMr.Aditya Khaitan, Managing Directorwas pendingexecution.As stated in Note no. 59, Resolution process for restructuring the borrowing are under consideration of lenders and thereby terms and conditions thereof including the security as given herein above will accordingly be modified on sanction ofthe said plan.

25.4 Certain payments made by body corporates on behalf of the company amounting to Rs. 1,105.00 lakhs against settlements directly made by them for repayment of ICDs taken by the company in earlier year have been disclosed as short term borrowings. Pending finalisation of terms and conditions with respect to these loans, necessary disclosures in this respect have not been made in these financial statements.

25.5 During the year, the Board of Directors have ratified the payment made by Individuals amounting to Rs. 3,500.00 lakhs, from body corporatesamountingto Rs. 2,000.00 lakhsandfrom related partiesamountingto Rs. 10,520.19lakhsagainstsettlementsdirectlymade by them for repayment of ICDs taken by the company in earlier years and invocation of third party securities provided to one of the lender against borrowing made by the company. Accordingly, disclosures in this respect have been made based on the terms and conditions as ratified and approved by the Board of Directors. This however does not include the payments made as per Note no. 25.4 above.

25.6 In respect of unsecured loans as mentioned in Note no. 25.5, the company had requested to extend the date of payment/ settlement ofoutstanding amount to31st December 2023 which has been accepted bythe parties and approved bythe Board of Directors ofthe companyand thereforethereare no defaultas on 31st March 2023.

25.7 Pending completion of resolution process as stated in Note no. 59(a) any further charge or satisfaction as such could not be filed with Registrar ofCompanies (ROC) and details ofcharges herein above are based on filings done earlier.

25.8 Also refer Note no. 59 and 36.

27.1 There are no amounts due for payment to the Investor Education and Protection Fund as at the year end.

27.2 The liability in relation to borrowings have been stated based on the provisions and appropriations stated in Note no. 36.1 and 36.2, pending completion of resolution process and confirmation/reconciliation of balances etc. by the lenders (Refer Note no. 59(b)).

27.3 Interest accrued and due is net of Rs. 3,225.63 lakhs (31st March 2022: Rs. 2,893.59 lakhs) pertaining to certain debit balances lying with banks which had been appropriated against their outstanding dues pending confirmation and reconciliation as detailed in Note no. 59(b)

28.1 The company had received advance of Rs. 1,413.87 lakhs related toSale ofSpecified Assets of Boroi Tea Estates and Assam Valley School (Net book Value: Rs. 3,236.96 lakhs). However pursuant to the injunction imposed vide the order of Hon''ble High Court of Delhi as stated in Note no. 54(b), such transaction could not materialise and as such have been disclosed under Advance against Sale of Fixed Assets. Pending this, the related assets remain included and have been disclosed under respective heads of Property, Plant and Equipment. The possibilities ofsale etc, in this respectwill be reviewed and considered based on completion ofresolution process and consequential withdrawal ofinjunction.

28.2 Includes advance of Rs. 5,000.00 lakhs (31st March 2022: Rs. 5,000.00 lakhs) received in earlier years against sale of tea, pending finalisation of terms and conditions thereof (Also Refer Note no. 36.2).

29.1 The Hon''bleSupreme Courtvide itsjudgement dated 20th September 2017 held that the provisions ofRule 8 oflncomeTax Act, 1961 is not applicable while making payment of dividend distribution tax as per section 115-0 of the Income Tax Act, 1961. No fresh proceedings/ demands has been made by the tax authorities in response to the aforesaid judgement passed by the Hon''ble Court. However, the Company has made full provision for tax in the financial statements in earlier years. In earlier years, the tax authorities had appropriated the amount demanded against the refund order for Assessment year 2007-2008 against which the company has preferred an appeal. In the event of the said demand being quashed by taxation authorities following the order of Supreme court, Rs. 343.37 lakhs adjusted in this respect will be refunded to the company.

29.2 Shortfall in value of investments held by Employee Provident Fund Trust covered under defined benefit plan, as estimated by the management has been provided for in the financial statements.

29.3 Provision for others include Rs. 105.00 lakhs (31st March 2022: Rs. 105.00 lakhs) which relates to various demands raised by the buyer''s ofSpecified Assets of Tea Estates in respectofexpenditure incurred bythem in relation to period priorto hand overofsuch tea estates, pending reconciliation andfinalisation ofthesame with the books ofaccounts. Further, provision ofRs. 1,500.00 lakhs (31st March 2022: Rs. 1,915.36 lakhs) made in earlieryear, being the estimated cost to be incurred in relation to Sale ofSpecified Assets of Tea Estates as reviewed during the year has been carried forward in these financial statements.

30.1 Provision for taxation and advance payment thereagainst are reviewed and adjusted on assessment by the tax authorities. Unresolved matterscontested unprovidedforaredisclosed as contingent liabilities depending upon thepast trend,judicial pronouncements and amount involved therein.

31.1 Government grant relates to incentives and assistances provided against replantation, production of orthodox tea, duty exemption, transportation and otherexport benefits made availabletoTea IndustryundervariousTea Development and promotion Schemes by Government of India. There are no unfulfilled conditions or other contingencies attached to these grants.

32.1 Thecompanyreceived request in earlieryears aswell as in currentyearfrom various bodies corporatetowhom Loansweregiven and outstanding as on 31st March 2023 forwaiverof Interest. Intereston unsecured loan given tovariouscompanies asgiven in Note no. 58(a), considering the uncertainty with respect to recoverability thereof and also that companies have requested to waive the interest pending finalisation of terms thereof has not been accrued. Such interest at the rate applicable for the previous period works out to be Rs. 135,728.41 lakhs (including Rs. 33,101.76 lakhs for the year). As stated in Note no. 58(a), terms and conditions for repayment of loans including interest thereon shall be specified and outstanding amount shall be recovered/adjusted and/or restructured depending upon the outcome ofthe recovery proceedings ofthose companies pursuant to CIRP or otherwise and completion ofthe resolution process ofthecompany. Further, in respectofinterest accrued in earlieryears and outstanding as on31st March 2023, provision ofRs. 9,941.50 lakhs (including Rs. 1,942.16 lakhs created during theyear) has been madeand adjustments ifanyneeded in this respect will be given effect to on completion ofthe resolution process ofthe company.

35.1 "Employee Benefit Expensesfortheyearended 31st March 2023 include:

a) Rs.735.60lakhs pertaining totheperiodfrom01stApril 2021 to31stMarch 2022and Rs.78.42 Lakhsfortheperiodfrom 1stJanuary 2022 to 31st March 2022 provided (since paid) pursuant to revision madeduring theyearin respect ofremuneration payableto Staff in tea estates ofAssam and Workers in tea estate of West Bengal respectively.

b) Rs. 900.40 lakhsforthe periodfrom 1st April 2020 to31st March 2022 beingtheamount paid to Managing Directorand Wholetime Director on account of their remuneration and carried forward earlier as advance. These amounts on being approved in the meeting dated 10th May 2022 of the banks and financial institutions based on legal advice have been charged during the year to the Statement of Profit and Loss."

36.1 Pending completion ofdebt restructuring process, Interest on borrowings have been providedforasstated in Note no. 59(b).

36.2 Short term borrowings includes unsecured loans ofRs 21,375.19 lakhs taken by the company against which interest to the extent of Rs. 9,185.82 Lakhs (including Rs. 2,469.03 Lakhs (net of provision) for the year) has not been recognised pending final settlement/ completion ofresolution processas stated in Note no.59(b).This includes Rs. 1,105.00 lakhs in respectofwhich, pendingfinalisation of terms and conditions, amount of interest thereagainst has been computed based on similar rate as ratified by the Board of Directors during the year in other such cases. Interest in this respect as stated in Note no. 36.1 above have been determined on simple basis at stipulated rate orotherwise advised from time to time. This however does not include interest ifany on outstanding advances of Rs. 5,000.00 lakhs from customers as stated in Note no. 28.2, pending acceptance as InterCorporate Deposits and finalisation ofterms and conditions thereof. Further, Interest including compound/ penal interest if any payable with respect to these are currently not determinable and as such the amount in this respect have not been disclosed and included in the above amount

36.3 Finance Cost includes Rs. 2,000.00 lakhs being the amount paid by a third party on behalf of the company in settlement of the dues ofacorporatelenderin earlieryearas stated in Noteno. 18.2.This representsdifferential amountoverandabovethe principleamount so farpaidin terms of the said settlement. Pending discharge of balance obligations and finalisation of related terms and conditions, further adjustments required ifany in this respect are presently not ascertainable.

39.1 Exceptional Item includes:

a) Provision of Rs. 91,942.16 lakhs made against Inter-Corporate Deposits (ICDs) including interest thereon given to Promotergroup and certain other companies as stated in Note no. 58(a) and

b) Provision ofRs. 1,400.00 lakhs madeagainst advancegiven to a bodycorporateasstated in Note no. 18.3

NOTE: 40: SCHEMES OF AMALGAMATION/SCHEME OF ARRANGEMENT GIVEN EFFECT TO IN EARLIER YEARS

Pending completion ofthe relevantformalities oftransferofcertain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books ofthe Company under the name ofthe transferor companies (including othercompanies which were amalgamated with the transferor companies from time to time).

NOTE 41: EMPLOYEE BENEFITS

I. Defined Contribution Plan Provident Fund:

The Company makes contributions to Provident Fund and Pension Scheme for eligible employees. Under the schemes, the Company is required to contributeaspecified percentage/fixed amountofthe payroll costs tofund the benefits.The contributions as specified under the law are paid to the respective fund set up by the government authority. Contributions towards provident funds are recognised as an expense for the year. Further, the Company has also set up Provident Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both theemployees and theCompany make monthly contributions to the Funds at specified percentage ofthe employee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation ofemployment. The Trusts investfundsfollowing a pattern ofinvestments prescribed bythe Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees'' Provident Fundsand Miscellaneous ProvisionsAct, 1952 and shortfall, ifany,on accountofinterest is to be made good bytheCompany.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the balance sheet date as per the principle laid down in Ind AS19 issued by Ministry of corporate affairs and guidelines GN26 issued bythe Institute of Actuaries of India. Based on suchvaluation, there is nofutureanticipatedshortfall with regardto interestrateobligation ofthe Companyas atthebalance sheet date.The Company''s contribution of Rs. 184.11 lakhs (31st March 2022: Rs. 172.87 lakhs) to the Provident FundTrust in this respect has been expensed under the''Contribution to Provident and Other Funds''.

II. Post Employment Defined Benefit Plans:

The Post Employment defined benefit scheme are managed by Life Insurance Corporation of India Limited/Trust is a defined benefit plan.The presentvalue ofobligation is determined based on independent actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separatelyto build up the final obligation. Details ofsuch fund areasfollows:

a) Gratuity (Funded)

The Company''sgratuityscheme,adefined benefit plan is as perthe PaymentofGratuityAct, 1972, covers the eligible employees and is administered through certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/trustees themselves, make payments to vested employees ortheir nominees upon retirement, death, incapacitation orcessation ofemployment, ofan amount based on the respective employee''s salaryand tenure ofemployment subject to a maximum limit of Rs. 20.00 lakhs. Vesting occurs upon completion offiveyears ofservice.The amount ofgratuity payable is the employees last drawn basic salary per month computed proportionatelyfor 15 days salarymultiplied forthe numberofyears of service.

b) Superannuation (Funded)

The Company''s Superannuation scheme, a Defined Benefit plan, is administered through trust funds and covers certain categories ofemployees. Investments ofthe funds are managed by insurance companies /trustees themselves. Benefits under these plans had been frozen in earlieryearswith regard to salarylevelsthen prevailing. Upon retirement,death orcessation ofemployment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure ofemployment and salary.

c) Staff Pension - (Unfunded)

The Company''s Staff Pension Scheme, a Defined Benefit plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure ofemployment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion oftwentyyears ofservice.

d) Medical Insurance Premium Re-imbursement (Unfunded)

The Company has a scheme of re-imbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject toa monetarylimit.Thescheme is in the natureofDefined Benefit plan.

e) Expatriate Pension (Unfunded)

The Company has an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to theirsurviving spouses. Thescheme is in the natureof Defined Benefit plan.

Plan assets represent investment in various categories. The return on amounts invested with LIC is declared annually by them. Return on amounts invested with Insurance companies, other than LIC, is mostly by way of Net Asset Value declared on units purchased, with some schemes declaring returns annually. Investment in Bonds and Special Deposit carry a fixed rate of interest. The expected return on plan assets is determined after taking into consideration composition of the plan assets held, assessed risk of asset management and other relevant factors.

VIII. SensitivityAnalysis

The sensitivity analysis below is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur,and changes in some oftheassumptions may be correlated. When calculating thesensitivityofthedefined benefitobligation to significant actuarial assumptions, the same method (present value ofthe defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

IX Risk Exposure

Through its defined benefit plans, theCompany isexposed to a numberofrisks, the mostsignificant ofwhich aredetailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yield: If plan assets underperform

this yield, it will create a deficit. The plan asset investments is in bonds, special deposit, LIC and other insurance companies. The Company has a risk management strategy where the aggregate amount of risk exposure ona portfolio is maintained at a fixed range. Any deviation from the range are corrected by rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.

Changes in yields: A decrease in yields will increase plan liabilities.

Life Expectancy: The pension and medical plan obligations areto provide benefitsforthe life ofthe member,so increases in life

expectancy will result in the increase in the plans liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows

arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods.

Investmentsarewell diversified, such that thefailureofanysingle investmentwould not haveamaterial impacton theoverall level ofassets.

43. CONTINGENT LIABILITIES (to the extent not provided for) in respect of:

a) Various show cause notices/ demands issued/ raised, which in the opinion ofthe management are not tenable and are pending with various forums / authorities: (? in Lakhs)
Particulars	Asat	Asat
	31st March 2023	31st March 2022
Electricity Dues- Inappropriate Electricity Withdrawal bytheTea Estatesfrom Assam	53.38	53.38
Power Distribution Company Limited Excise Duty- Availment of refund was erroneous and to be recovered under Section 11A	42.99	42.99
oftheCentral ExciseAct, 1944 Income Tax- matters in respect ofvarious exempted incomeand otherdisallowances	1,780.34	2,937.12
Service Tax- Demand ofService tax under reverse charge mechanism for royalty,	527.59	583.72
license fee and consultancy fees Land Revenue- Fine for Encroachment of Land declared and finalised as Ceiling Surplus in 2010	9.65	9.65

b) TheCompanyhas issued various“LetterofComfort" to lenders against loanstaken bypromotergroup and certain othercompanies. The aggregate amount of Comfort Letter issued and outstanding ason31st March 2023 is Rs. 1,13,599.78 Lakhs (31st March, 2022: Rs. 1,13,599.78 Lakhs).Theaggregateamountofborrowings bythese companies (otherthan oneofthegroup-companies in respect ofwhich pending CIRP proceedingsamountofborrowings pertaining to theyearended 31st March 2023 is not determinable) ason 31st March 2023 is Rs.52,477.53 Lakhs (31st March, 2022: Rs. 69,139.34 Lakhs).

c) The Company''s pending litigations comprises of claim against the company and proceedings pending with Taxation/ Statutory/ Government Authorities. This includes income tax matter pending before Appellate Authorities where issues involved are similar in natureand in viewofthe managementthere is remote possibilityforcrystalisation ofsuch liabilities.The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, and disclosed contingent liabilities, where applicable, in itsfinancial statements. Thecompanydoes notexpect theoutcomeofthese proceedings to havea material impact on itsfinancial position. Future cash outflows, if any is dependent upon the outcome of judgments / decisions which is not practicable to be determined pending resolution ofthe same.

Note:

1. The above related party information is as identified by the management and relied upon by the auditor.

2. All transactionsfrom related parties are made in ordinarycourseofbusiness. Fortheyearended 31st March 2023,theCompanyhas not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year by reviewing the financial position of the related party and the market in which the related party operates.

3. In respectofabove parties,there is no provision fordoubtful debts as on31st March 2023 and no amount has been written backor written offduring theyearother than those disclosed above in respect ofdebts duefrom/to them.

4. Post-Employee benefits and other long-term employee benefits have been disclosed/paid on retirement/resignation ofservices but does not include provision made on actuarial basis as the same is available for all the employees together.

46. SEGMENT INFORMATION

(a) TheCompany is primarilyengaged in the business ofcultivation, manufactureand saleoftea acrossvarious geographical location. In term of Ind AS 108 "Operating Segment", the Company has one business segment i.e. Manufacturing and Selling of Tea. Further, in terms of Indian Accounting Standard (Ind AS) 108 on ''Operating Segment'' notified in the Act, segment information has been presented in theConsolidated Financial Statements, prepared pursuantto Ind AS110on ''Consolidated Financial Statements''and Ind AS 28 on ''Investments in Associates andJoint Ventures'' notified in theAct, included in theAnnual Reportfortheyear.

(i) FAIR VALUATION TECHNIQUES:

The fair values of the financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values. These assumptions are subject to finalisation of resolution plan and determination of terms and conditions of borrowings and amount given as loans to various parties as stated in note no.59and58:

a) The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets and short term borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at cost in the financial statements other than dealtwith hereunderapproximate theirfairvalues.

b) TheCompany''s long-term debtfrom Banks andfinancial institutionswereoriginallycontracted atfloating ratesofinterest. Fairvalue of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. Terms and conditions ofthese loan pending completion ofresolution process areyet to befinalised (Note no. 59(a)) and there is a uncertainty inthis respect as on this date. Further, there are other unsecured borrowing as stated in note no. 25.4 terms and conditions whereof have not been decided.

c) The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currencyvolatilityetc.The said valuation are carried out bythe counter party with whom the contract has been entered with. Management has evaluated the credit and non-performance risks associated with the counterparties and found them to be insignificant and not requiring any credit adjustments.

d) The fairvalue of Inter-Corporate deposits based on management evaluation related to the credit and non-performance risks associated with the counterparties is dependent on the outcome of the recovery proceedings pursuant to CIRP as stated in Note no. 58(a) or otherwise on completion ofthe resolution process ofthe companyas stated in Note no. 59(a) and there is a uncertainty to the extent as stated in the said note.

(ii) FAIR VALUEHIERARCHY(a) Financial Instruments

This section explains the judgements and estimates made in determining the fair values ofthe financial instruments that are (a) recognised and measured atfair value (b) measured at amortised cost andforwhichfairvalueare disclosed in the financial statements. To provide an indication about the reliability ofthe inputs used in determining fair value. The Company has classified its financial instruments into the three levels prescribed under the Indian Accounting Standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. Thefairvalueofall equity instruments which aretraded in thestockexchanges isvalued using theclosing price as at the reporting date.

Level 2: The fairvalue of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use ofobservable market data and rely as little as possible on entity-specific estimates. If all significant inputs required tofairvaluean instrumentareobservable,the instrument is included in level 2.

Level 3: Ifoneormoreofthesignificant inputs is not based on observable market data,the instruments is included in level 3.

During the previous year, the company had changed its valuation technique in respect of Kilburn Office Automation Limited for reasons stated in Note no. 8.9 ofthe financial statements. Accordingly such shares had been valued as per Level 3 Technique whereby the said valuation had been arrived at based on the latest audited financial statements.This however did not have any material impact on thefinancial statement.Otherthan this,therearenotransfers between level 1, level 2and level 3 during thecurrentand previous year.

(b) Biological assets other than bearer plants

This section explains the judgements and estimates made in determining the fair values of the biological assets other than bearer plants that are recognised and measured atfairvalue in thefinancial statements. To providean indication aboutthe 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.

48. FINANCIAL RISK MANAGEMENT

The company''s activitiesexposed it toavarietyoffinancial risks. The keyfinancial risks include Market risk, Credit riskand liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors reviews and approves policyfor managing these risks.The risks aregoverned byappropriate policies and procedures and accordinglyfinancial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. As stated in Note no. 59(a), the company has defaulted in repayment of borrowings including interest accrued thereon due to low recovery of the amount outstanding in respect of ICD''s given by the company and restructuring/ other proposals/ settlement of loans etc.are under consideration oflenders.The companyexpects to restructure it''s borrowings and mitigate the relatedfinancial risk. Financial risk management as stated below has been considered based on the assumption of successful outcome of the restructuring/ other proposals which is under consideration ofthe lendersas stated in thesaid note.The riskenvisaged can materially bedifferenton approval ofthe said plan and terms and conditions specified in this respect.

(A) Credit risk

Credit riskrefers to the riskoffinancial loss arisingfrom default/failure bythecounterpartyto meetfinancial obligationsas perthe terms ofcontract. The Company is exposed to credit riskfor receivables, cash and cash equivalents, financial guarantees and derivative financial instruments. Loans to group companies given has lead to material concentration of credit risks due to non-recoverability of amount thereagainst including accrued interest.

Credit risk on trade receivables is minimum since sales through different mode (i.e. auction, consignment, private - both domestic and export) are made afterjudging credit worthiness ofthe customers, advance payment, deposit from customers oragainst letter ofcredit by banks. The historyofdefaults has been minimal and outstanding receivables are regularlymonitored. For credit riskon the loans to parties since recoverability thereagainst has been a matter of concern due to non-payment by group and other companies to whom amounts have been lentand wherein oneofthe caseCIRPasgiven in Note no.58(a) has been initiated. The Company isexpecting to recover/adjust/restructure theoutstanding amounts and address the riskinvolved therein in due course oftime on outcomeoftheCIRP proceedings initiated against oneofcompanyto whom loan have been advanced bytheseGroupcompanies and on completion ofresolution process ofthecompany.

For derivative and financial instruments, the Company manage 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 limitsareset to minimise theconcentration ofrisksand therefore mitigatefinancial loss through counterparty''s potential failure to make payments.

The Company establishes an allowance for impairment that represents its estimate of losses in respect of trade and other receivables. Receivables are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery there against has been considered to be remote.

The carrying value of the financial assets (net of impairment losses) represent the maximum credit exposure. The maximum exposure to credit riskatthe reporting date isthe carryingvalue ofeach class offinancial assetsdisclosed in Note no. 47.

Financial assets that are neither past due nor impaired.

Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions.

Financial assets that are past due but not impaired.

Certain Trade receivables and Inter-Corporate Loans which are past due at the end of the reporting period, no credit losses there against are expected to arise considering the steps being taken for realisation thereof.

(B) Liquidity risk

Liquidity risk refers to the risk that the Companyfails to honour its financial obligations in accordance with terms of contract. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability offunding through an adequate amount ofcommitted credit facilities to meet obligations when due and to close out market positions.

Management monitors rolling forecasts of the company''s liquidity position and cash and 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.The Companyhad in earlieryears granted loans to Group Companies which created a mismatch in servicing its debt obligations. In this regards necessary restructuring and other proposals are under consideration as detailed in Note no. 59(a) to make these debt sustainable so that the liquidity required in the system does not get affected materially.

Maturities offinancial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

i all non-derivative financial liabilities, and

ii derivative financial instruments for which the contractual maturities are essential for an understanding of thetiming of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal theircarrying balances as the impact ofdiscounting is not significant. The amount of borrowings and interest thereon has been computed on the basis stated in Note no.59(b) and amountfinally payableand terms ofrepayment thereofwill be determinableon completion ofresolution process.

(i) Foreign currency risk

Foreign currency risk is the riskthatthefairvalueorfuturecash flows of a financial instrumentwill fluctuate because ofchanges 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, EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility ofthe INR cash flows of highly probable forecast transactions.

The Company as per the risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

10% appreciation ofthe respective foreign currencies with respect to functional currency (holding all other variables constant) ofthe Company would result in increase in the Company''s profit before tax (having an impact on the financial statements) by approximately Rs. 75.89 lakhsforfinancial assets. 10%depreciation ofINR would havean equal and oppositeeffecton theCompany''sfinancial statements.

10% appreciation ofthe respective foreign currencies with respect to functional currency (holding all other variables constant) ofthe Company would result in increase in the Company''s profit before tax (having an impact on the financial statements) by approximately Rs. 137.58 lakhsforfinancial assets. 10%depreciation ofINRwould have an equal and oppositeeffect on theCompany''sfinancial statements.

"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. Financial Instruments at fixed rates of interest exposes the company to fairvalue interest rate risk as there is no risk of interest rate volatility.

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. Considering the same, the carrying amount ofsaid borrowings was considered to be atfairvalue. During 31st March 2023 and 31st March 2022, theCompany''s borrowings atvariable ratewere mainlydenominated in INR.

The Company''sfixed rate borrowings arecarried at amortised cost.Theyaretherefore not subject to interest rate riskas defined in Ind AS 107, since neither the carrying amount northefuturecash flows will fluctuate because ofachange in market interest rates.

Increase of50 basis points (holding all othervariables constant) in interest rates at the balance sheet date would result in decrease in net income of Rs. 787.39 lakhs on profit before tax (having an impact on the financial statements) for the year ended 31st March 2023 and Rs. 834.94 for the year ended 31st March 2022. A decrease in 50 basis point would have an equal and opposite effect on the Company''s financial statements. This should be read with Note no. 36.2 regarding non-recognition of interest in Inter Corporate Deposits.

Interest riskon financial liabilities as stated above has been considered based on theaccounting followed in this respect as stated in Note no.58(a) and 59(b). The rateofinterestand amount payable in this respect will finally be determinableon completion ofresolution process which as stated in Note no. 59(a) is underconsideration oflenders.Theriskenvisaged can materially bedifferent on completion ofresolution process and terms and conditions being specified in this respect.

(iii) Pricerisk

The Company is not an active investor in equity markets; it continues to hold certain investments in equityfor long term strategic purpose which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity instruments as at 31st March 2023 is Rs 5,212.91 lakhs (31st March 2022: Rs. 6,189.19 lakhs).Accordingly, fairvalue fluctuations arising from market volatility is recognised in Other Comprehensive Income.

(D) 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:

i) Sufficient inventorylevelsofagro chemicals,fertilizersand other inputsare maintained so thattimelycorrectiveaction can betaken in case of adverse weather conditions.

ii) Slightlyhigherlevel ofconsumablestoresvizpacking materials,coal and HSDaremaintained in orderto mitigatefinancial riskarising from logistics problems.

iiii Forward contracts are made with overseas customers as well as domestic private customers, in order to mitigate the financial risk in fluctuation ofselling price oftea.

iv Sufficient liquidity kept in the system through fund arrangements from banks etc. in such a way that cultivation, manufacture and sale oftea is not adverselyaffected even in times ofadverse conditions. Restructuring and other proposals as stated in Note no. 59(a) is under consideration and outcome thereofasexpected isforensuring sustainabilityofcoreagricultural operations ofthe company.

49. CAPITALMANAGEMENT

(a) RiskManagement

The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its businessand maximizeshareholdervalue.TheCompany''s objectivewhen managingcapital is to safeguard itsabilityto continueasagoing concern so that they can continue to provide returns for shareholders and benefits for other stakeholders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile ofthe Company.

In orderto maintain oradjust the capital structure, the companymayadjust theamount ofdividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistentwith others in the industry,theCompany monitorscapital on the basis ofnet debt to equityratioand maturityprofileofoverall debt portfolio ofthe Company.

Net debt implies total borrowings ofthe Company as reduced by Cash and Cash Equivalent and Equity comprises all components attributable to the owners of the Company.

Under the terms of the major borrowing facilities, the Company has not complied with some of the financial covenants as imposed by the bankandfinancial institutions.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March 2023 considering pending outcome of the restructuring and other proposals under consideration of lenders (Refer Note no. 59(a)).

(i) The tax rate used in the corporate tax payable on taxable profits under the Income Tax Act''1961.

(ii) The Company''s agriculture income is subject to lower tax rates @ 30% under the respective state tax laws. Further, considering the tax holiday granted by the State Government, effect of Deferred Tax reversal during the said tax holiday period has been considered for computing Deferred Tax Assets.

(iii) The Company has not exercised the option for paying income tax at concessional rates in accordance with the provisions/conditions as specified underSection 115BAAofthe Income-taxAct, 1961 as introduced bytheTaxation Laws

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Mar 31, 2021

Freehold Land included cost of proportionate share of undivided land pertaining to certain portion of a office building. During the year ended 31st March, 2020, such land including Office building has been taken over by the Lenders as detailed in Note no. 54 and given to the company on Lease basis which has been accounted for in accordance with Ind AS 116.

"ROU Buildings" relates to building premises taken on lease and recognised as "Right of Use" in terms of Ind AS 116 on implementation with effect from 1st April 2019 (Refer Note no. 52).

"ROU Building" includes Tea Factory taken on lease. In absence of break-up value of lease rental against different items of Property, Plant and Equipment, so acquired on lease, the rental capitalised in terms of Ind AS 116 had been categorised and depreciated over the tenure of lease. The cost of upgradation of the said Tea Factory including installation of new Plant and Equipment had been classified under respective items of PPE and will be transferred to lessor at the residual value as agreed in terms of the agreement on expiry of lease term.

The Company has 31 tea estate land in State of Assam for which lease(patta) has been granted for carrying out the plantation activity against payment of Land Revenue. The company has 2 tea estates land taken on lease for 30 years on renewal basis from Government of West Bengal which have been recognised and disclosed as Right of Use Assets. The Company''s Lease right for plantation is not for a specified lease term against lease payments (other than land revenue) and not expected to be withdrawn or discontinued in foreseeable future and as such perpetual in nature. Capitalisation of costs thereof as required in terms of Ind AS 116 and amortisation over the lease terms had therefore not been considered in this respect.

Adjustments/ Re-classiiication during the year pertain to realignment of various items of PPE with corresponding items as per fixed asset register. This however, does not have any impact on carrying value of these assets.

Refer note. No. 21 and 25 in respect of charge created against borrowings.

Represents the net carrying amount of Property, Plant and Equipment including Capital Work in Progress held for Sale in terms of Memorandum of Understanding (MOU) with the buyer [Refer Note 5].

As per the MOU with the buyer, certain Specified Assets of Tea Estates were classified as Assets held for Sale. Certain tea estates were sold on 8th April 2020 as disclosed in Note no. 53(a). However, the sale of balance specified assets of Tea Estates could not be completed consequent to the temporary injunction imposed vide the order of Hon''ble NCLT, Kolkata. Accordingly, these assets had been transferred and reclassified as Property, Plant and Equipment and depreciation on the said assets have been provided based on the useful life of respective assets. The possibilities of sale etc, in this respect will be reviewed and considered based on necessary approval of resolution plan and consequential withdrawal of injunction by NCLT.

Also Refer Note no. 28.1 and 53(c).

In connection with a Term Loan from ICICI Bank Limited of Rs. 5,000.00 lakhs (31st March, 2020 - Rs. 5,000.00 lakhs) outstanding amount as on 31st March 2021 Rs. 487.39 lakhs (31st March, 2020- Rs. 499.66 lakhs) taken by McNally Bharat Engineering Company Limited (MBECL), the Company has furnished a Non-Disposal Undertaking of its present and future holding of shares in MBECL, which will remain valid as long as the said amount remains due and unpaid by MBECL.

Amount is below the rounding off norm adopted by the Company.

Shares of Eveready Industries India Limited were pledged to Housing Development Finance Corporation Limited against short-term loan of Rs. 7,500.00 lakhs (Balance Outstanding as on 31st March 2021: Rs. Nil) (Refer Note no: 25) pending release of security by the lenders.

Shares of The Standard Batteries Limited are pledged to Aditya Birla Finance Limited against short-term loan of Rs. 1,000.00 lakhs (Balance Outstanding as on 31st March 2021: Rs. 250.00 lakhs).

The trading of shares of Kilburn Chemicals Limited and Kilburn Office Automation Limited have been suspended on the stock exchange. Accordingly, for the purpose of fair valuation of these shares have been derived based on the last traded price.

Remuneration to the extent of Rs. 339.20 Lakhs (net of recovery of Rs. 358.13 lakhs thereagainst) paid to Managing Director for the period from 1st April, 2016 to 31st March, 2017 and 1st April, 2018 to 31st March, 2020 which had become in excess of the limit laid down under the Companies Act, 2013, since required shareholders'' approval could not be obtained. Further, during the year the company has paid Remuneration of Rs. 441.20 lakhs to Managing Director and Wholetime Director as decided by the Shareholder vide their special resolution in the Annual General Meeting (AGM) dated 2nd December, 2020. The company prior to the AGM as required has made Application to the banks and public financial institution for their approval and the same is awaited as on this date. However the amount paid as above are ''held in trust'' (as per Section 197(9) of the Companies Act, 2013) and has been included under "Loans and Advances to Employees" pending adjustment or regularisation thereof in due course of time.

Margin money and Fixed deposits with banks represents the amount lying against bank guarantee issued by them under NonFund based facilities granted.

Receivable against Sale of specified assets of Tea Estates represents the amount receivable from buyers subject to fulfilment of conditions in terms of Sales Agreement.

Interest subsidy receivable represent the amount receivable under Interest Subsidy 1997 Scheme for the period from 2007-08 to 2008-10 against which the claims has been recommended by DIC district to DIC Guwahati but the subsidy has not released due to letter dated 18th June 2014 from DIPP, New Delhi stating that the said Scheme is available for incremental borrowing.

The company had preferred an appeal before Hon''ble High Court at Delhi and the judgement has been delivered in favour of the company and therefore the amount has been considered good and recoverable. Pending finalisation of the matter and determination of the amount thereof, claim for interest thereagainst for the subsequent period has not been recognised.

This includes Rs.1,051.99 lakhs, being the amount of tax deducted by the Bodies Corporate to whom Loans were granted and were not deposited by them. Such amount remain provided for in the financial statement.

In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority had raised a demand of Rs. 5,278.00 lakhs during the year 2009-10 on the Company on account of alleged non-deduction of tax at source and interest thereon pertaining to the transaction. The Company challenged the said demand before the appropriate authorities and the matter is pending as on this date. Further, the Company has obtained a stay against the said demand from the Hon''ble High Court of Calcutta. The Company deposited Rs. 700.00 lakhs during the year 2011-12 with Income Tax Authority under protest. This however should not have any impact on financial statements, since as per the related Share Purchase Agreement, Capital Gain or other taxes, if any, relating to sale of shares etc. is to be borne by the seller and not the Company.

Trade Receivable secured represents amount secured against value of building available as security from a customer. Such building had been disposed off by the Liquidator of the said customer in earlier years. The sale proceeds thereof had been withheld by the liquidator and is expected to be realised on resolution of various cases concerning legal ownership of said building.

Refer Note no. 25 to the financial statements in respect of charge created against borrowings.

Rights, preferences and restrictions attached to Shares

The Company has one class of shares referred to as Equity Shares having a par value of Rs. 5.00 each. Each Holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the Company, the equity shareholders will be entitled to receive assets of the Company remaining after distribution of all preferential amounts, in proportion of their shareholding.

Buy Back of Shares

During the year ended 31st March, 2019, pursuant to the approval of the Board of Directors the Company had bought back 5,000,000 equity shares at an aggregate consideration of Rs. 6,901.28 Lakhs.

Capital Reserve

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

Securities Premium represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013.

General Reserve

General reserve is a free reserve which is created by transfer of profits from retained earnings. As the general reserve is created by a transfer from one component to another and is not an item of Other Comprehensive Income, items included in the general reserve is generally not reclassified subsequently to Statement of Profit and Loss.

Other Reserves

Represents the balance amount of reserve which had arisen on transfer of Bulk Tea Division of Eveready Industries India Limited pursuant to Scheme of Arrangement.

Retained Earnings

Retained earnings generally represents amount of accumulated surplus/deicit of the company. This includes Other Comprehensive Income of (Rs. 4,768.86 lakhs) (31st March 2020: (Rs. 3,568.64 lakhs)) relating to remeasurement of defined benefit plans (net of tax) which cannot be reclassified to Statement of Profit and Loss.

Revaluation Surplus

Represents differential arising on revaluation of Property, Plant and Equipment by the erstwhile Bulk Tea Division of Everready Industries Limited demerged to the company with effect from 1st April 2004 pursuant to the Scheme of Arrangement. The said reserve has been carried over being part of PPE, recognised at carrying value as per previous GAAP as deemed cost on the date of transition to Ind AS. The amount of depreciation attributable to the said revaluation is transferred from the said reserve to general reserve as per the practice followed in this respect.

Other Comprehensive Income

The company has elected to recognise changes in the fair value of non-current investments in Equity Instruments (other than Subsidiary and Associates) through OCI. This reserve represents the cumulative gains and losses arising on equity instruments measured at fair value. The company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed. This also includes gain/losses on defined benefit obligations which is transferred to retained earnings as stated in Note 20.5 above.

! During the year ended 31st March, 2020, Yes Bank Limited had recalled its entire loan outstanding including interest thereon. Accordingly, such loans had been considered as due for payment.

In terms of agreement with lenders the above mentioned loans in certain cases were also required to be secured as stated in Note 25.2.

I The Security as disclosed above has been based on the charge documents filed with ROC. Further certain security has been disposed off by the lenders against repayments of their dues and accordingly such securities have not been disclosed herein above. As stated in Note no. 58, Resolution Plan for restructuring the borrowing are under consideration of lender and thereby terms and conditions including the period and amount of repayment etc. thereof including the security as given herein above will accordingly be modified on sanction of the said plan.

i Also Refer Note no. 58 and 36.1.

Refer Note no. 21.1 in respect of default in borrowings.

In terms of agreement with lenders the above mentioned loans in certain cases were also required to be secured against equitable mortgage of specific tea estates of the company along with other lenders, pledge of entire equity shares of Mcleod Russel Uganda Limited (MRUL), Mortgage of a property of Seajuli Developers & Finance Limited located at 4, Sunny Park, Kolkata -700 019 and Pledge of entire equity shares of Phuben Tea Company Limited (PBTC) Vietnam (Shares handed over to Yes Bank in the year 2019-20 and pledge created by BTHL during the year). However, in view of pending resolution plan, such loan could not be fully securitised as required in term of agreement with lenders.

The Security as disclosed above has been based on the charge documents filed with ROC. Further certain security has been disposed off by the lenders against repayments of their dues and accordingly such securities have not been disclosed herein above. Further, in certain cases Personal guarantee of Mr. Aditya Khaitan, Managing Director was pending execution. As stated in Note no. 58, Resolution Plan for restructuring the borrowing are under consideration of lender and thereby terms and conditions thereof including the security as given herein above will accordingly be modified on sanction of the said plan.

Also refer Note no. 58 and 36.1

I There are no amounts due for payment to the Investor Education and Protection Fund as at the year end.

I The liability in relation to borrowings have been stated based on the provisions and appropriations stated in Note no. 36.1, pending finalisation of resolution plan and confirmation/reconciliation of balances etc. by the lender (Refer Note no. 58(b)).

3 Represents amount payable to the buyers of Speciied assets of certain tea estates sold in terms of agreement in this respect.

1 Interest accrued and due is net of Rs. 2,536.90 lakhs (March 31, 2020: Rs. 2,411.04 lakhs) pertaining to certain debit balances lying with banks which had been appropriated against their outstanding dues pending conirmation and reconciliation as detailed in Note no. 58(b).

28.1 The company had received advance of Rs. 1,413.87 lakhs related to Sale of Specified Assets of Boroi Tea Estates and Assam Valley School (Net book Value: Rs. 3,268.33 lakhs). However pursuant to the injunction as stated in Note no. 7.2 such transaction could not materialise and as such have been disclosed under Advance against Sale of Fixed Assets. Pending this, the related assets remain included and have been disclosed under respective heads of Property, Plant and Equipment.

29.1 The Hon''ble Supreme Court vide its judgement dated 20th September 2017 held that the provisions of Rule 8 of Income Tax Act, 1961 is not applicable while making payment of dividend distribution tax as per section 115-O of the Income Tax Act, 1961. No fresh proceedings/ demands has been initiated/raised by the tax authorities in response to the aforesaid judgement passed by the Hon''ble Court. However, the Company has made full provision in the financial statements in earlier years. During the year, the tax authorities have appropriated such demand against the refund order for Assessment year 2007-2008 against which the company has preferred a further appeal. In the event of the said demand being quashed by taxation authorities following the order of Supreme court, the said amount so adjusted will be refunded to the company.

29.2 Shortfall in value of investments held by Employee Provident Fund Trust covered under defined benefit plan, as estimated by the management has been provided for in the financial statements.

29.3 Other provisions includes Rs. 105.00 lakhs (31st March 2020: Nil) which relates to various demands raised by the buyer''s of Specified Assets of Tea Estates in respect of expenditure incurred by them in relation to period prior to hand over of such tea estates, pending reconciliation and finalisation of the same with the books of accounts. Further, provision of Rs. 416.01 lakhs (31st March 2020: Nil) made in respect of various unreconciled differences relating to earlier years.

31.1 Government grant relates to incentives and assistances provided against replantation, production of orthodox tea, duty exemption, transportation and other export benefits made available to Tea Industry under various Tea Development and promotion Schemes by Government of India. There are no unfulfilled conditions or other contingencies attached to these grants. The Company did not benefit directly from any other forms of government assistance.

32.1 Sundry Income includes Rs. 156.41 lakhs ( 31st March 2020: Nil) being the net gain against Investment of funds lying in the Escrow account with Solicitors pertaining to the tea estates sold in earlier years.

32.2 The company received request in the previous year as well as in this year from various bodies corporate to whom Loans were given and outstanding as on 31st March 2021 for waiver of Interest. Interest on unsecured loan given to various companies as given in Note no. 57(a), considering the uncertainty with respect to recoverability thereof and also that companies have requested to waive the interest pending finalisation of terms thereof has not been accrued during the year. Such interest at the rate applicable for the previous period works out to be Rs. 68,388.52 lakhs (including Rs. 34,112.29 lakhs for the year). As stated in Note no. 57(a), terms and conditions for repayment of loans including interest thereon will be decided in line with the resolution plan under consideration with lenders and interest as decided will be accrued and recovered on determination of amount. Further, in respect of interest accrued in earlier years and outstanding as on 31st March 2021, provision of Rs.7,999.34 lakhs had been made and adjustments if any needed in this respect will be given effect to on finalisation of the resolution plan.

NOTE 40: SCHEMES OF AMALGAMATION/SCHEME OF ARRANGEMENT GIVEN EFFECT TO IN EARLIER YEARS

Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books of the Company under the name of the transferor companies (including other companies which were amalgamated with the transferor companies from time to time).

NOTE 41: EMPLOYEE BENEFITS

I. Defined Contribution Plan Provident Fund:

The Company makes contributions to Provident Fund and Pension Scheme for eligible employees. Under the schemes, the Company is required to contribute a specified percentage / fixed amount of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the respective fund set up by the government authority. Contributions towards provident funds are recognised as an expense for the year. Further, the Company has also set up Provident Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make monthly contributions to the Funds at specified percentage of the employee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company. The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the balance sheet date as per the principle laid down in Ind AS 19 issued by Ministry of corporate affairs and guidelines GN26 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the Company as at the balance sheet date. The Company''s contribution of Rs. 160.43 lakhs (31st March 2020 - Rs. 189.56 lakhs) to the Provident Fund Trust in this respect has been expensed under the ''Contribution to Provident and Other Funds''.

II. Post Employment Defined Benefit Plans:

The Post Employment defined benefit scheme are managed by Life Insurance Corporation of India Limited/Trust is a defined benefit plan. The present value of obligation is determined based on independent actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Details of such fund are as follows:

a) Gratuity (Funded)

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 certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/trustees themselves, 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 subject to a maximum limit of Rs. 20.00 lakhs. Vesting occurs upon completion of five years of service. The amount of gratuity payable is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

(Rs. In Lakhs)

b) Superannuation (Funded)

The Company''s Superannuation scheme, a Defined Benefit plan, is administered through trust funds and covers certain categories of employees. Investments of the funds are managed by insurance companies /trustees themselves. Benefits under these plans had been frozen in earlier years with regard to salary levels then prevailing. Upon retirement, death or cessation of employment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure of employment and salary.

c) Staff Pension - (Unfunded)

The Company''s Staff Pension Scheme, a Defined Benefit plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

d) Medical Insurance Premium Re-imbursement (Unfunded)

The Company has a scheme of re-imbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject to a monetary limit. The scheme is in the nature of Defined Benefit plan.

e) Expatriate Pension (Unfunded)

The Company has an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to their surviving spouses. The scheme is in the nature of Defined Benefit plan.

Plan assets represent investment in various categories. The return on amounts invested with LIC is declared annually by them. Return on amounts invested with Insurance companies, other than LIC, is mostly by way of Net Asset Value declared on units purchased, with some schemes declaring returns annually. Investment in Bonds and Special Deposit carry a fixed rate of interest. The expected return on plan assets is determined after taking into consideration composition of the plan assets held, assessed risk of asset management and other relevant factors.

VIII. Sensitivity Analysis

The sensitivity analysis below is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

b) Guarantees given on behalf of a subsidiary in order to secure the loan availed by them outstanding amount as on 31 st March 2021 Nil (31st March 2020 - Rs. 126.12 lakhs).

c) The Company has issued various "Letter of Comfort" to lenders against loans taken by promoter Group Companies. The aggregate amount of Comfort Letter issued and outstanding as on 31 st March 2021 is Rs. 1,46,099.78 Lakhs (31st March, 2020 - Rs. 1,46,099.78 Lakhs). The aggregate amount of borrowings of group-companies as on 31st March 2021 is Rs. 70,259.47 Lakhs (31st March, 2020 -Rs. 86,294.03 Lakhs).

d) The Company''s pending litigations comprises of claim against the company and proceedings pending with Taxation/ Statutory/ Government Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, and disclosed contingent liabilities, where applicable, in its financial statements. The company does not expect the outcome of these proceedings to have a material impact on its financial position. Future cash outflows, if any is dependent upon the outcome of judgments / decisions which is not practicable to be determined pending resolution of the same.

1. The above related party information is as identified by the management and relied upon by the auditor.

2. All transactions from related parties are made in ordinary course of business. For the year ended 31st March 2021, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year by reviewing the financial position of the related party and the market in which the related party operates.

3. In respect of above parties, there is no provision for doubtful debts as on 31st March 2021 and no amount has been written back or written off during the year other than those disclosed above in respect of debts due from/ to them.

4. Post-Employee benefits and other long-term employee benefits have been disclosed/paid on retirement/resignation of services but does not include provision made on actuarial basis as the same is available for all the employees together.

(a) The Company is primarily engaged in the business of cultivation, manufacture and sale of tea across various geographical location. In term of Ind AS 108 "Operating Segment", the Company has one business segment i.e. Manufacturing and Selling of Tea. Further, in terms of Indian Accounting Standard (Ind AS) 108 on ''Operating Segment'' notified in the Act, segment information has been presented in the Consolidated Financial Statements, prepared pursuant to Ind AS 110 on ''Consolidated Financial Statements'' and Ind AS 28 on ''Investments in Associates and Joint Ventures'' notified in the Act, included in the Annual Report for the year.

The fair values of the financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values:

a) The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets and short term borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at cost in the financial statements approximate their fair values.

b) The Company''s long-term debt has been contracted at floating rates of interest. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. In respect of fixed interest rate borrowings, fair value is determined by using discount rates that reflects the present borrowing rate of the company.

c) The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc. The said valuation has been carried out by the counter party with whom the contract has been entered with. Management has evaluated the credit and non-performance risks associated with the counterparties and found them to be insignificant and not requiring any credit adjustments.

d) The fair value of Inter-Corporate deposits based on management evaluation related to the credit and non-performance risks associated with the counterparties have been estimated to be insignificant and not requiring any credit adjustments. Such evaluation has been supported with the group level restructuring in progress which as per the management''s estimate will lead to realisation value at least equal to the carrying value. The fair value determination is dependent upon approval of the resolution plan as given in Note no. 58(a) and there is uncertainity to that extent as stated in said note.

(ii) FAIR VALUE HIERARCHY (a) Financial Instruments

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value (b) measured at amortised 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 the three levels prescribed under the Indian Accounting Standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instruments is included in level 3.

There are no transfers between level 1, level 2 and level 3 during the year.

The company''s activities exposed it to a variety of financial risks. The key financial risks include Market risk, Credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors reviews and approves policy for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. As stated in Note no. 58(a), the company has defaulted in repayment of borrowings including interest accrued thereon due to mismatch with respect to amount recoverable in respect of ICD''s given by the company and resolution plan is under progress being under consideration of lenders. The company expects to restructure it''s borrowings and mitigate the related financial risk. Financial risk management as stated below has been considered based on the assumption of successful outcome of the resolution plan which is under consideration of the lenders as stated in Note no. 58(a). The risk envisaged can materially be different on approval of the said plan and terms and conditions specified in this respect.

(A) 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 and cash equivalents, financial guarantees and derivative financial instruments. Loans to group companies given has lead to material concentration of credit risks due to non-recoverability of amount thereagainst including accrued interest.

Credit risk on trade receivables is minimum since sales through different mode (eg. auction, consignment, private - both domestic and export) are made after judging credit worthiness of the customers, advance payment or against letter of credit by banks. The history of defaults has been minimal and outstanding receivables are regularly monitored. For credit risk on the loans to parties since recoverability thereagainst has been a matter of concern due to non-performance of group and other companies to whom amounts have been lent and for which restructuring as given in Note no. 57(a) is under consideration. The Company is expecting to control the risk involved therein in due course of time on approval of resolution plan.

For derivative and financial instruments, the Company manage 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 minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

The Company establishes an allowance for impairment that represents its estimate of losses in respect of trade and other receivables. Receivables are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery there against has been considered to be remote.

The carrying value of the financial assets (net of impairment losses) 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 disclosed in Note no. 47.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions.

Financial assets that are past due but not impaired

Trade receivables and Inter-Corporate Loans which are past due at the end of the reporting period, no credit losses there against are expected to arise.

(B) Liquidity risk

Liquidity risk refers to the risk that the Company fails to honour its financial obligations in accordance with terms of contract. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of

funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.

Management monitors rolling forecasts of the company''s liquidity position and cash and 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. The Company had in earlier years granted loans to Group Companies which created a mismatch in servicing its debt obligations. In this regards necessary debt restructuring process is in progress as detailed in Note no. 58(a) to make these debt sustainable so that the liquidity required in the system does not get affected materially.

Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

i all non-derivative financial liabilities, and

ii derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. The amount has been computed on the basis stated in Note no. 58(b).

(C) Market risk

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash lows 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, EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash lows. The objective of the hedges is to minimise the volatility of the INR cash lows of highly probable forecast transactions.

The Company, as risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash lows of a financial instrument will fluctuate because of changes in market interest rates. Financial assets bear fixed rates of interest, wherever applicable.Therefore,there is no risk of interest rate volatility. The Company''s main interest rate risk arises from short term and long-term borrowings with variable rates, which expose the Company to cash low interest rate risk. The Company''s policy is to maintain most of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. During 31st March 2021 and 31st March 2020, 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 lows will fluctuate because of a change in market interest rates.

Increase/ decrease of 50 basis points (holding all other variables constant) in interest rates at the balance sheet date would result in an impact (decrease/(increase) in case of net income) of Rs. 916.42 lakhs and Rs. 963.82 lakhs on profit before tax for the year ended 31 March 2021 and 31 March 2020 respectively.

Interest risk on financial liabilities as stated above has been considered based on the accounting followed in this respect as stated in Note no. 57(a) and 58(b). The rate of interest and amount payable in this respect is subject to approval of resolution plan which as stated in Note no. 58(a) is under consideration of lenders. The risk envisaged can materially be different on approval of the said plan and terms and conditions specified in this respect.

(iii) Price risk

The Company is not an active investor in equity markets; it continues to hold certain investments in equity for long term strategic purpose which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity instruments as at 31st March 2021 is Rs 5,302.71 lakhs (31st March 2020- Rs. 1,081.27 lakhs). Accordingly, fair value fluctuations arising from market volatility is recognised in Other Comprehensive Income.

(D) 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:

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

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

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

iv Sufficient liquidity kept in the system through fund arrangements from banks etc. in such a way that cultivation, manufacture and sale of tea is not adversely affected even in times of adverse conditions. The Resolution Plan as stated in Note no. 58(a) is under consideration and outcome thereof as expected is for ensuring sustainability of core agricultural operations of the company.

(a) Risk Management

The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximize shareholder value. The Company''s objective when managing capital is to safeguard its ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stakeholders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of net debt to equity ratio and maturity profile of overall debt portfolio of the Company.

Net debt implies total borrowings of the Company as reduced by Cash and Cash Equivalent and Equity comprises all components attributable to the owners of the Company.

Under the terms of the major borrowing facilities, the Company has not complied with some of the financial covenants as imposed by the bank and financial institutions.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March 2021 considering expected outcome of the resolution plan under consideration of lenders (Refer Note no. 58(a)).

NOTE 53: SALE OF SPECIFIED ASSETS OF CERTAIN TEA ESTATES

On 09th August, 2018, the shareholders of the Company approved to sell specified assets of certain tea estates. In continuation of the steps initiated in this respect in earlier years:

a) The company sold specified assets of 3 Tea Estates for an aggregate consideration of Rs 15,045.00 Lakhs. Profit on sale of such assets amounting to Rs. 4,003.96 Lakhs has been included under Exceptional items for year ended 31st March 2020.

b) The specified assets of one another tea estate had been identified and approved for sale. Memorandum of Understanding/ Term sheet with the proposed buyer for an aggregate consideration of Rs. 2,815.00 Lakhs, subject to due diligence and necessary approvals, etc. had also been entered by the company. Pending final binding agreement and completion of the transaction, such sales has not been recognised. Advance of Rs 550.00 Lakhs received from the proposed buyer against sale consideration has been shown under ''Other Financial Liabilities''.

c) The Company has received advances against sale of estates and certain other assets amounting to Rs. 1,413.87 lakhs (including Rs. 550.00 lakhs dealt in (b) above) which could not crystalise on account of stay imposed by Hon''ble NCLT. Accordingly, such assets pending final decision of Hon''ble NCLT has been continued to be included under Property, Plant and Equipment (PPE) rather than as "Assets held for Sale" and have been depreciated in accordance with other items of PPE.

NOTE 54: SALE OF OTHER ASSETS

During the year ended 31st March 2020, part of a building belonging to the Company was sold to a financial institution at a consideration of Rs. 4,477.00 Lakhs, which was adjusted against their outstanding dues. Loss of Rs. 237.21 Lakhs arising in this respect had been shown under exceptional items.

NOTE 55: BUYBACK OF SHARES BY SUBSIDIARY

During the year ended 31st March 2019, the company''s subsidiary Borelli Tea Holdings Limited (UK) (BTHL) had agreed to buy back 60,000 shares (out of total 3,62,000 shares held by the company) for an aggregate consideration of GBP 93,00,000, and Rs. 8,390.93 Lakhs received in this respect had been shown as advance from subsidiaries. During the year ended 31st March 2020, the said buy-back after obtaining necessary clearances and completion of related formalities has been given effect to and profit of Rs. 4,440.21 Lakhs arising in this respect had been included under exceptional items. Further, BTHL vide it''s Board Resolution dated 1st July 2019 had agreed to buy back 50,000 shares for a consideration of GBP 77,50,000 (Rs. 6,581.41 Lakhs). This transaction has also been concluded during the said year and profit of Rs 3,562.32 Lakhs arising in this respect had been included under exceptional items.

NOTE 56: COVID 19

The Company has taken into account all the possible impacts of COVID-19 in preparation of these financial statement, including but not limited to its assessment of, liquidity and going concern assumption, the recoverability of property, plant and equipments, receivables, intangible assets, cash and cash equivalents and investments. The Company has carried out this assessment based on available internal and external sources of information upto the date of approval of these financial statements and believes that no adjustment in the carrying amount of assets and liabilities is expected to arise. The Company continues to monitor future economic conditions and its consequent impact on the business operations, given the uncertain nature of the pandemic.

NOTE 57: INTER-CORPORATE LOANS GIVEN

a) In respect of Inter-Corporate Deposits (ICDs) given to Promoter group and certain other companies as given in Note no. 50(B), the amount outstanding aggregates to Rs. 2,82,383.08 Lakhs as at 31st March, 2021 (31st March 2020: Rs.

2,84,596.66 Lakhs) (net of provision of Rs. 1,098.00 Lakhs). Interest accrued upto 31st March 2019 and remaining unpaid as on 31 st March, 2021 aggregates to Rs. 1,958.32 lakhs (31st March 2020: Rs. 2,336.78 Lakhs) (net of provision of Rs. 7,999.34 Lakhs). Interest on such ICDs as stated in Note no. 32.2, considering the waiver sought by borrower companies and uncertainties involved with respect to their repayment capabilities and pending finalisation of terms and conditions on approval of the resolution plan and determination of amount thereof, has not been accrued in the previous as well as in the current year. Over and above, the company has issued letters of comfort to lenders of these companies as given in Note no. 43(C). Steps are being taken to restructure the borrowings and related financial obligations of the company and necessary resolution plan as stated in Note no. 58(a) in this respect is under consideration of the lenders. The company expects to workout a plan for restructuring the amount of loan given and interest thereon including reducing/liquidating such outstanding amount and other obligations in sync with the proposed restructuring of borrowing in terms of the resolution plan under consideration of lenders as stated herein above. The management believes that the outstanding dues, net of provision for amount considered doubtful, as mentioned above, shall be recovered/ adjusted and/or restructured considering the outcome of the Resolution Plan under consideration as above and no further provision/adjustment is required at this stage. Any adjustments required consequent to finalisation of resolution plan will be given effect to on determination of the amount thereof.

b) Inter-Corporate Deposits to companies as dealt herein above in Note no. 57(a) include amounts reported upon by predecessor auditor including Rs. 77,575.00 lakhs which were considered by the predecessor auditor in the nature of book entries. This includes amounts given to group companies whereby applicability of Section 185 and related noncompliances, if any could not be ascertained and commented upon by them. The issues raised are also being examined by relevant authorities including Registrar of Companies, outcome of which are awaited as on this date. Information required by the authorities have been provided and/or directions, if any are awaited as on this date.

NOTE 58: GOING CONCERN AND DEFAULT IN BORROWINGS

a) Operational earnings and performance of the company even though has improved over the period, the Company''s financial position continues to be under stress. The Inter-Corporate Deposits (ICDs) given to various group companies to provide them funds for strategic reasons for meeting their various obligations along with interest to the extent applicable are outstanding as on this date. These have resulted in mismatch of company''s resources vis-a-vis it''s commitments and obligations and financial constraints, causing hardship in servicing the short term and long-term debts and meeting other liabilities.

Various measures to overcome the financial constraints, which inter-alia include reduction in operational costs, monetising the Company''s/group''s assets including equity holding in other group companies and also proposal for restructuring/reducing the borrowings so that to make them sustainable and rationalising the costs thereof and infusing liquidity in the system over a period of time have been continued during the year.

One of the banker had issued a notice of default and recalled the amount granted under various facilities and had commenced the proceeding before Debt recovery Tribunal (DRT) for realisation of their debt to the company. The said banker and one other lender had filed petitions under Insolvency and Bankruptcy Code, 2016 (IBC) with Hon''ble National Company Law Tribunal, Kolkata (NCLT). These petitions and consequential proceedings under IBC are however yet to be admitted by NCLT. Further, certain lenders including those concerning another group company have obtained injunction against disposal of the Company''s assets, pending settlement of their dues.

Meanwhile, lenders initiated the Resolution process of the company in terms of circular dated 07th June 2019 issued by the Reserve Bank of India. Pursuant to such resolution process, Techno Economic Viability (TEV) study and valuation of the company have been carried out by Independent professional. Further, SBI Capital Markets Limited, one of the leading investment banker has prepared the plan and submitted it''s recommendations concerning the resolution plan and the same is under consideration of the lenders as on this date. The forensic audit for utilisation of funds borrowed in the past, conducted by an Independent firm of Chartered Accountants on behest of lenders has been completed and finding on utilisation of funds borrowed have been accepted by the lenders during the year. Inter-Creditor Agreement (ICA) for arriving at and implementing the resolution plan has been confirmed and signed by certain lenders and is in the process of being approved by remaining lenders. The lenders prior to finalisation and approving the resolution plan are in process of re-vetting of the TEV Study and also obtaining the possible credit rating of the company subsequent to the resolution plan being implemented as recommended by SBI Capital Markets Limited.

The management is confident that with the lenders support in restructuring their debt to a sustainable level and rationalisation of cost of borrowing and other cost reductions, induction of additional fund in the system etc. and other ameliorative measures taken and/or proposed to be taken and with restructuring/reducing the outstanding amount of loan receivable in line with the same, the company will be able to generate sufficient cashflow to meet it''s obligations and strengthen it''s financial position over a period of time. Considering that these measures are under implementation and/or under active consideration and proactive steps are being taken by lenders for approving the resolution plan, these financial results have been prepared on going concern basis.

b) Pending completion of debt restructuring process and consequential adjustment in this respect as per Note No. 58(a) above, Interest on borrowings have been provided on simple interest at the rates specified in term sheet or otherwise stipulated/advised from time to time and penal/compound interest if any has not been considered. Further, pending such restructuring, amount repaid to lenders and/or recovered by them by execution of securities etc. have been adjusted against principal of their outstanding amount. The amount payable to the lenders in respect of outstanding amount including interest thereagainst is subject to confirmation and determination and consequential reconciliation thereof in terms of final decision to be arrived at in this respect. Adjustments, if any required in this respect will be recognised on determination thereof and given effect to on finalisation of resolution plan.

59. Certain debit and credit balances including borrowings dealt with in Note no. 58(b) and inter-unit and other clearing balances, other receivables/ Payables including identification of MSME, advances from customers, loans and advances, other current assets and certain other liabilities including those relating to tea estates are subject to reconciliation with individual details and balances and confirmation thereof. Adjustments/ Impact in this respect are currently not ascertainable.

60. These financial statements have been approved by the Board of Directors of the Company on 23rd June 2021, for issue to the shareholders for their adoption.

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Mar 31, 2018

1. CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of the financial statements require the use of accounting estimates which, by definition, will seldom equal the actual result. Management also needs to exercise judgment in applying the Company''s accounting policies.

This note provides an overview of the areas that involved a high degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments’ is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

Critical estimates and judgments The areas involving critical estimates and judgments are:

i. Taxation

The Company is engaged in agricultural activities and accordingly, significant judgment is involved in determining the tax liability for the Company. Also there are many transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain. Further judgment is involved in determining the deferred tax position on the balance sheet date.

ii. Depreciation and amortization

Depreciation and amortization is based on management estimates of the future useful lives of the property, plant and equipment and intangible assets. Estimates may change due to technological developments, competition, changes in market conditions and other factors and may result in changes in the estimated useful life and in the depreciation and amortization charges.

iii. Impairment of property, plant and equipment

An impairment exists when the carrying value of an asset exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use.

iv. Employee Benefits

The present value of the defined benefit obligations and long term employee benefits depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact the carrying amount of defined benefit obligations. The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the obligations. In determining the appropriate discount rate, the Company considers the interest rates of Government securities that have terms to maturity approximating the terms of the related defined benefit obligation. Other key assumptions for obligations are based in part on current market conditions.

v. Provisions and Contingencies

Provisions and contingencies are based on Management''s best estimate of the liabilities based on the facts known at the balance sheet date.

vi. 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.

Estimates and judgments’ 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.

(B) Rights, preferences and restrictions attached to Shares

The Company has only one class of shares referred to as Equity Shares having a par value of Rs. 5/- per share. Each shareholder is eligible for one vote per share held and is entitled to participate in Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and Purpose of Other Reserves

a) Capital Reserve

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

b) Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is available for utilization in accordance with the provisions of the Companies Act, 2013.

c) General Reserve

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

d) Other Reserves

Represents the balance amount of reserve which had arisen on transfer of Bulk Tea Division of Eveready Industries India Limited pursuant to scheme of arrangement.

e) Retained Earnings

Retained earnings represent accumulated profits earned by the Company and remaining undistributed as on date and remeasurement of defined benefit plans.

f) Revaluation Surplus

Revaluation Surplus, being the excess of market value over the carrying value of certain assets is transferred from the transferor companies pursuant to the Schemes of Arrangement. The said reserve is utilized for adjustment of depreciation attributable to such excess amount and is credited to general reserve.

g) Equity Investments through FVTOCI

The Company has elected to recognize changes in the fair value of certain investments in equity instruments through other comprehensive income. These changes are accumulated within the Equity Investments through FVTOCI. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognized.

2. SCHEMES OF AMALGAMATION/SCHEME OF ARRANGEMENT GIVEN EFFECT TO IN EARLIER YEARS

Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books of the Company under the name of the transferor companies (including other companies which were amalgamated with the transferor companies from time to time).

3. EMPLOYEE BENEFITS

I. Provident Fund and and Other Plans

During the year an amount of Rs. 6561.77 lakhs (31st March 2017 - Rs. 6025.69 lakhs) has been recognized as expenditure towards Defined Contribution plans of the Company.

Provident Fund:

Contributions towards provident funds are recognized as an expense for the year. The Company has set up Provident Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make monthly contributions to the Funds at specified percentage of the employee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the balance sheet date as per the principle laid down in Ind AS19 issued by Ministry of corporate affairs and guidelines GN26 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the Company as at the balance sheet date. Further during the year, the Company''s contribution of Rs. 393.37 lakhs (31st March 2017 - Rs. 366.44 lakhs) to the Provident Fund Trust has been expensed under the ''Contribution to Provident and Other Funds''. Disclosures given hereunder are restricted to the information available as per the Actuary''s report.

II. Post Employment Defined Benefit Plans:

a) Gratuity (Funded)

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 certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/ trustees themselves, 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 subject to a maximum limit of Rs. 20.00 lakhs. Vesting occurs upon completion of five years of service. The amount of gratuity payable is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

b) Superannuation (Funded)

The Company''s Superannuation scheme, a Defined Benefit plan, is administered through trust funds and covers certain categories of employees. Investments of the funds are managed by insurance companies /trustees themselves. Benefits under these plans had been frozen in earlier years with regard to salary levels then prevailing. Upon retirement, death or cessation of employment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure of employment and salary.

c) Staff Pension - Type A (Funded)

The Company''s Staff Pension Scheme - Type A, a Defined Benefit plan, is administered through a trust fund and covers certain categories of employees. Investments of the fund are managed by Life Insurance Corporation of India. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

d) Staff Pension - Type B (Unfunded)

The Company''s Staff Pension Scheme - Type B, a Defined Benefit plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

e) Medical Insurance Premium Reimbursement (Unfunded)

The Company has a scheme of re-imbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject to a monetary limit. The Company has introduced a scheme of re-imbursement of medical expenses to a certain category of employees up to a certain monetary limit. The scheme is in the nature of Defined Benefit plan.

f) Expatriate Pension (Unfunded)

The Company has an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to their surviving spouses. The scheme is in the nature of Defined Benefit plan.

Plan assets represent investment in various categories. The return on amounts invested with LIC is declared annually by them. Return on amounts invested with Insurance companies, other than LIC, is mostly by way of Net Asset Value declared on units purchased, with some schemes declaring returns annually. Investment in Bonds and Special Deposit carry a fixed rate of interest. The expected return on plan assets is determined after taking into consideration composition of the plan assets held, assessed risk of asset management and other relevant factors.

VIII. Sensitivity Analysis

The sensitivity analysis below is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Risk Exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility The plan liabilities are calculated using a discount rate set with reference to bond yields: if plan assets underperform this yield, this will create a deficit. The plan asset investments is in bonds, special deposit, LIC and other insurance companies. The Company has a risk management strategy where the aggregate amount of risk exposure on a portfolio is maintained at a fixed range. Any deviation from the range are corrected by rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.

Changes in yields A decrease in yields will increase plan liabilities.

Life Expectancy The pension and medical plan obligations are to provide benefits for the life of the member, so increases in life expectancy will result in the increase in the plans liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets.

(b) Non-cancellable operating leases

The Company has entered into non-cancellable operating lease agreements for a plot of land for a period of 30 years with option for renewal on mutually agreed terms and a tea-manufacturing factory for the period from 1st January, 2013 to 31st December, 2017 (Renewed with effect from 1st January 2018 for 5 years). The aggregate lease rentals payable are charged as ''Lease Rent'' under Note 35.

b) Guarantees given on behalf of a subsidiary in order to secure the loan availed by them - Rs.21509.40 lakhs (31st March 2017 - Rs. 21400.50 lakhs); Year-end balance of loan Rs. 8009.54 lakhs (31st March 2017 - Rs. 10563.95 lakhs).

c) Bank Guarantees Rs.181.33 lakhs (31st March 2017 - Rs. 164.46 lakhs)

It is not practicable for the Company to estimate the timings of the cash outflows, if any, in respect of the above pending resolution of the same.

The Company does not expect any reimbursement in respect of the above contingent liabilities.

NOTE 4: RELATED PARTY DISCLOSURES AS PER IND AS-24

(a) Subsidiaries

Borelli Tea Holdings Limited (BTHL)

(b) Step Down Subsidiaries

Phu Ben Tea Company Limited (PBTCL)

McLeod Russel Uganda Limited (MRUL)

Gisovu Tea Company Limited (GTCL)

McLeod Russel Middle East DMCC (MRME)

McLeod Russel Africa Limited (MRAL)

Pfunda Tea Company Limited (PTCL)

(c) Associate

D1 Williamson Magor Bio Fuel Limited

(d) Key Management Personnel

Mr. Brij Mohan Khaitan (BMK) Chairman

Mr. Aditya Khaitan (AK) Managing Director

Mr. Rajeev Takru (RT) Whole time Director

Mr. Azam Monem (AM) Whole time Director

Mr. Kamal Kishore Baheti (KKB) Whole time Director

Mr. Amritanshu Khaitan (AAK) Non-Executive Director

Dr. Raghavachari Srinivasan (RAS) Non-Executive Director

Mr. Bharat Bajoria (BB) Non-Executive Director

Mr. Ranabir Sen (RS) Non-Executive Director

Mr. Utsav Parekh (UP) Non-Executive Director

Mrs. Ramni Nirula (RN) Non-Executive Director

Mr. Padam Kumar Khaitan (PKK) Non-Executive Director

(e) Relatives of Key Management Personnel with whom transations took place during the year.

Mr. Deepak Khaitan (DK) (died on 9th march 2015) Brother of Mr. Aditya Khaitan Mrs. Kavita Khaitan (KK) Wife of Mr. Aditya Khaitan

Mrs. Zubeena Monem (ZM) Wife of Mr. Azam Monem

(*) In view of inadequacy of profit during the year 2016-17, the Department of Company Affairs (Government Of India) in response to Company''s application, vide its letter dated 15th May 2018 has sanctioned remuneration of Rs. 133.88 lakhs for the Managing Director. The Company vide it''s letter dated 23rd May 2018 has made a representation to the Government to reconsider the sanctioned remuneration stating that a special resolution was passed by the shareholders on 9th August 2017 approving the remuneration paid to him as well as waiving recovery for the excess remuneration. Pending disposal of the Company''s appeal by the Central Government, the amount paid in excess over the sanctioned amount is being ''held in trust'' [as per section 197(9) of the Companies Act 2013] by him and will be adjusted / recovered accordingly.

(**) In view of inadequacy of profit during the year 2015-16, the Department of Company Affairs (Government Of India) had passed order to recover the amount of Rs 375.18 lakhs which was subsequently recovered in 2016-17.

(i) Fair value hierarchy

(a) Financial Instruments

This section explains the judgments’ and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value (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 the three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instruments is included Level 3:.

(b) Biological assets other than bearer plants

This section explains the judgements and estimates made in determining the fair values of the biological assets other than bearer plants that are recognized 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.

NOTE 5 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, the company has risk management policies as described below :-

(A) 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 and cash equivalents, other bank balances, 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 (eg. auction, consignment, private - both domestic and export) are made after judging credit worthiness of the customers, advance payment or against letter of credit by banks. The history of defaults has been minimal and outstanding receivables are regularly monitored. For credit risk on the loans to parties including subsidiary, the Company is not expecting any material risk on account of non-performance by any of the parties.

For derivative and financial instruments, the Company manage 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 disclosed in Note 46.

(B) Liquidity risk

Liquidity risk refers to the risk that the Company fails to honour its financial obligations in accordance with terms of contract. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.

Management monitors rolling forecasts of the company''s liquidity position (including the undrawn credit facilities extended by banks and financial institutions) and cash and 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.

Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

i all non-derivative financial liabilities, and

ii derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(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, EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company''s functional currency(INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

The Company, as risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

10% appreciation / depreciation of the respective foreign currencies with respect to functional currency (holding all other variables constant) of the Company would result in increase / decrease in the Company''s profit before tax by approximately Rs. 25.51 lakhs for financial assets and decrease / increase in the Company''s profit before tax by approximately Rs.41.77 lakhs for financial liabilities.

10 % appreciation / depreciation of the respective foreign currencies with respect to functional currency (holding all other variables constant) of the Company would result in increase / decrease in the Company''s profit before tax by approximately Rs. 9.66 lakhs for financial assets and decrease / increase in the Company''s profit before tax by approximately Rs. 32.63 lakhs for financial liabilities.

(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. Financial assets bear fixed rates of interest, wherever applicable. Therefore, there is no risk of interest rate volatility.

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. The Company''s policy is to maintain most of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. During 31st March 2018 and 31st March 2017, the Company''s borrowings at variable rate were mainly denominated in INR.

The Company''s fixed rate borrowings are carried at amortized 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 a change in market interest rates.

Increase/ decrease of 50 basis points (holding all other variables constant) in interest rates at the balance sheet date would result in an impact (decrease/increase in case of net income) of Rs. 487.29 lakhs and Rs. 395.31 lakhs on profit before tax for the year ended 31st March 2018 and 31st March 2017 respectively.

(iii) Price risk

The Company is not an active investor in equity markets; it continues to hold certain investments in equity for long term stragic purpose which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity instruments as at 31st March, 2018 is Rs. 9,610.06 lakhs (2017 - Rs. 7,224.99 lakhs). Accordingly, fair value fluctuations arising from market volatility is recognized in Other Comprehensive Income.

(D) 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:

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

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

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

iv 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 6: CAPITAL MANAGEMENT (a) Risk Management

The Company''s objectives when managing capital are to

(a) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(b) Maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell asssets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of net debt to equity ratio and maturity profile of overall debt portfolio of the Company.

Net debt implies total borrowings of the Company as reduced by Cash and Cash Equivalent and Equity comprises all components attributable to the owners of the Company

Under the terms of the major borrowing facilities, the Company has complied with the financial covenants as imposed by the bank and financial institutions.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March 2018 and 31st March 2017.

NOTE 7

Revenue Expenditure on Research and Development Rs. 204.74 lakhs (31st March 2017 - Rs. 177.30 lakhs) represent subscription to Tea Research Association.

NOTE 8

There are no outstanding dues of Micro and Small Enterprises (MSEs) based on information available with the Company.

The Company had given Guarantee of USD 33 million (equivalent Rs.21509.40 lakhs) to a bank in respect of loans availed / to be availed by Borelli Tea Holdings Ltd. (wholly owned subsidiary) for its business purpose. The guarantee would continue till full repayment of the loans by the subsidiary. Refer to Note 40(b).

NOTE 9: CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

(a) Gross amount required to be spent by the Company during the year : Rs. Nil (31.03.2017 - Rs. 196.22 lakhs)

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Mar 31, 2017

Note 1: Schemes of Amalgamation/Scheme of Arrangement gives effect to in earlier years

Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books of the Company under the name of the transferor companies (including other companies which were amalgamated with the transferor companies from time to time).

Note 2: Employee Benefits

I. Provident Fund and Other Plans:

During the year an amount of Rs 6025.69 lakhs (31st March 2016 - Rs. 5357.60 lakhs) has been recognized as expenditure towards Defined Contribution plans of the Company.

Provident Fund:

Contributions towards provident funds are recognized as expense for the year. The Company has set up Provident Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make monthly contributions to the Funds at specified percentage of the employee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the balance sheet date as per the principle laid down in AS19 (2015) issued by Ministry of corporate affairs and guidelines GN26 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the Company as at the balance sheet date. Further during the year, the Company''s contribution of Rs. 366.44 lakhs (31st March 2016 - Rs. 332.10 lakhs) to the Provident Fund Trust has been expensed under the ''Contribution to Provident and Other Funds''. Disclosures given hereunder are restricted to the information available as per the Actuary''s report.

II. Post Employment Defined Benefit Plans:

a) Gratuity (Funded)

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 certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/trustees themselves, 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 subject to a maximum limit of Rs. 10.00 lakhs. Vesting occurs upon completion of five years of service. The amount of gratuity payable is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

b) Superannuation (Funded)

The Company''s Superannuation scheme, a Defined Benefit plan, is administered through trust funds and covers certain categories of employees. Investments of the funds are managed by insurance companies /trustees themselves. Benefits under these plans had been frozen in earlier years with regard to salary levels then prevailing. Upon retirement, death or cessation of employment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure of employment and salary.

c) Staff Pension - Type A (Funded)

The Company''s Staff Pension Scheme - Type A, a Defined Benefit plan, is administered through a trust fund and covers certain categories of employees. Investments of the fund are managed by Life Insurance Corporation of India. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

d) Staff Pension - Type B (Unfunded)

The Company''s Staff Pension Scheme -Type B, a Defined Benefit plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

e) Medical Insurance Premium Reimbursement (Unfunded)

The Company has a scheme of reimbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject to a monetary limit. The Company has introduced a scheme of re-imbursement of medical expenses to a certain category of employees up to a certain monetary limit. The scheme is in the nature of Defined Benefit plan.

f) Expatriate Pension (Unfunded)

The Company has an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to their surviving spouses. The scheme is in the nature of Defined Benefit plan.

The following tables set forth the particulars in respect of aforesaid Defined Benefit plans of the Company for the year ended 31st March 2017 and corresponding figures for the previous year:

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period

The estimates of rate of inflation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment sphere.

Plan assets represent investment in various categories. The return on amounts invested with LIC is declared annually by them. Return on amounts invested with Insurance companies, other than LIC, is mostly by way of Net Asset Value declared on units purchased, with some schemes declaring returns annually. Investment in Bonds and Special Deposit carry a fixed rate of interest.

The expected return on plan assets is determined after taking into consideration composition of the plan assets held, assessed risk of asset management and other relevant factors.

Company''s best estimate of contribution expected to be paid to the Funds in the next year

Risk Exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility The plan liabilities are calculated using a discount rate set with reference to bond yields: if plan assets underperform this yield, this will create a deficit. The plan asset investments is in bonds, special deposit, LIC and other insurance companies. The company has a risk management strategy where the aggregate amount of risk exposure on a portfolio is maintained at a fixed range. Any deviation from the range are corrected by rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.

Changes in yields A decrease in yields will increase plan liabilities.

Life Expectancy The pension and medical plan obligations are to provide benefits for the life of the member, so increases in life expectancy will result in the increase in the plans liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

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 benefits plans. Within this framework, the Company''s ALM objective is to match assets to the pension obligations by investing in long-term securities with maturities that match the benefit payments as they fall due.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The company has not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets.

(b) In connection with a Term Loan of Rs.5000.00 lakhs (31st March 2016 - Rs. 5000.00 lakhs, 1st April 2015 - Rs 5000.00 lakhs) taken by McNally Bharat Engineering Company Limited (MBECL) from one of its Bankers, the Company has furnished a Non-Disposal Undertaking in respect of its present and future holding of shares in MBECL to remain valid so long as any monies remain due by MBECL in respect of the said loan to the said bank.

(c) The Company has undertaken to continue to directly hold 100% ( 31st March 2016 - 100%, 1st April 2015 -100%) of the shares in the share capital of Borelli Tea Holdings Limited (BTHL) in connection with the Senior Term Loan facility of USD 20.50 million (31st March 2016 - EURO 6.00 million; 1st April 2015 - EURO 6.00 million) obtained by BTHL from ICICI Bank UK PLC, Frankfurt.

(d) Non-cancellable operating leases

The Company has entered into non-cancellable operating lease agreements for a plot of land for a period of 30 years with option for renewal on mutually agreed terms and a tea-manufacturing factory for the period from 1st January, 2013 to 31st December, 2017. The Lease Rent is charged in the Statement of Profit and Loss and future lease commitments are:

b) Guarantees given on behalf of a subsidiary in order to secure the loan availed by them - Rs. 21400.50 lakhs (31st March 2016 - Rs. 26616.63 lakhs, 1st April 2015 - Rs. 24658.50 lakhs); Year-end balance of loan Rs. 10563.95 lakhs (31st March 2016 - Rs. 15268.87 lakhs, 1st April 2015 - Rs. 15947.08 lakhs).

c) Bank Guarantees Rs. 164.46 lakhs (31st March 2016 - Rs. 158.01 lakhs, 1st April 2015 - Rs. 123.96 lakhs)

It is not practicable for the Company to estimate the timings of the cash outflows, if any, in respect of the above pending resolution of the same.

The Company does not expect any reimbursement in respect of the above contingent liabilities.

Note 41: Events occurring after the reporting period

Refer to Note 48(b) for the final dividend recommended by the directors which is subject to the approval of shareholders in the ensuing Annual General Meeting.

Note 3: Related Party Disclosures as per Ind AS-24

(a) Subsidiaries

Borelli Tea Holdings Limited (BTHL)

Phu Ben Tea Company Limited (PBTCL)

Rwenzori Tea Investments Limited (RTI) (amalgamated with McLeod Russel Uganda Limited)

McLeod Russel Uganda Limited (MRUL)

Gisovu Tea Company Limited (GTCL)

McLeod Russel Middle East DMCC (MRME)

McLeod Russel Africa Limited (MRAL)

Pfunda Tea Company Limited (PTCL)

(b) Associate

D1 Williamson Magor Bio Fuel Limited

(c) Key Management Personnel

Mr. Aditya Khaitan (AK) Managing Director

Mr. Rajeev Takru (RT) Wholetime Director

Mr. Azam Monem (AM) Wholetime Director

Mr. Kamal Kishore Baheti (KKB) Wholetime Director

Mr. Brij Mohan Khaitan (BMK) Non-Executive Director

Mr. Amritanshu Khaitan (AAK) Non-Executive Director

Dr. Raghavachari Srinivasan (RAS) Non-Executive Director

Mr. Bharat Bajoria (BB) Non-Executive Director

Mr. Ranabir Sen (RS) Non-Executive Director

Mr. Utsav Parekh (UP) Non-Executive Director

Mrs. Ramni Nirula (RN) Non-Executive Director

Mr. Padam Kumar Khaitan (PKK) Non-Executive Director

(d) Relatives of Key Management Personnel with whom transactions took place during the year.

Mr. Brij Mohan Khaitan (BMK) Father of Mr. Aditya Khaitan

Mrs. Shanti Khaitan (SK) (died on 25th February, 2016) Mother of Mr. Aditya Khaitan

Mrs. Kavita Khaitan (KK) Wife of Mr. Aditya Khaitan

Mr. Deepak Khaitan (DK) (died on 9th March, 2015) Brother of Mr. Aditya Khaitan

Mrs. Zubeena Monem (ZM) Wife of Mr. Azam Monem

Remuneration for 2016-17 includes Rs. 396.89 lakhs paid/payable to Managing Director in accordance with Shareholders'' approval obtained at the Sixteenth AGM of the Company held on 23rd July, 2014. However, due to inadequacy of profit of the Company during the year 2016-17, the said remuneration has exceeded the limit by Rs 266.40 Lakhs prescribed under Section 197 of the Companies Act, 2013 read with Schedule V of the Companies Act, 2013 in anticipation of which the Company has applied to the Central Government seeking its approval to the said remuneration.

Note 4: Segment Information

In terms of Indian Accounting Standard (Ind AS) 108 on ''Operating Segment'' notified in the Act, segment information has been presented in the Consolidated Financial Statements, prepared pursuant to Indian Accounting Standard (Ind AS) 110 on ''Consolidated Financial Statements'' and Indian Accounting Standard (Ind AS) 28 on ''Investments in Associates and Joint Ventures'' notified in the Act, included in the Annual Report for the year.

(i) Fair value hierarchy

(a) Financial Instruments

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value (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 the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

(b) Biological assets other than bearer plants

This section explains the judgments and estimates made in determining the fair values of the biological assets other than bearer plants that are recognized 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.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instruments is included in level 3. This is the case for unlisted equity securities and Other Long Term Receivable.

There are no transfers between level 1, level 2 and level 3 during the year.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

i the use of quoted market prices or dealer quotes for similar instruments

ii Forward exchange contracts and interest rate swap are calculated based on mark-to-market valuation by the bank.

iii the fair value of the unquoted equity instruments and remaining financial instrument is determined using discounted cash flow analysis.

All of the resulting fair value estimates are included in level 2 except for unlisted equity securities and Other Long Term Receivable.

(iii) Valuation inputs and relationships to fair value

The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements. See (iii) above for the valuation techniques adopted.

(iv) Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. Discussions of valuation processes and results are held between the CFO and the valuation team at least once every three months, in line with the company''s quarterly reporting periods.

The carrying amounts of other financial assets and financial liabilities are considered to be the same as their fair values, due to their short term in nature.

Significant Estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgment that are mainly based on market conditions existing at the end of each reporting period. For details of the key assumptions used and the impact of changes to these assumptions see (ii) and (iii) above.

(vi) Equity Instruments carried at fair value through other comprehensive income.

These investments in equity instruments are not held for trading. Instead, they are held for long term strategic purpose. The Company has chosen to designate these investments in equity instruments FVOCI since, it provides a more meaningful presentation.

(vii) During the year, the Company has sold certain shares for strategic purpose.

Note 47: Financial risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, the company has risk management policies as described below :-

(A) 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 and 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 (eg. auction, consignment, private - both domestic and export) are made after judging credit worthiness of the customers, advance payment or against letter of credit by banks. The history of defaults has been minimal and outstanding receivables are regularly monitored. For credit risk on the loans to parties including subsidiary, the Company is not expecting any material risk on account of non-performance by any of the parties.

For derivative and financial instruments, the Company manage 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 disclosed in Note 46.

(B) Liquidity risk

Liquidity risk refers to the risk that the Company fails to honor its financial obligations in accordance with terms of contract. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.

Management monitors rolling forecasts of the company''s liquidity position (including the undrawn credit facilities extended by banks and financial institutions) and cash and 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.

Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

- all non-derivative financial liabilities, and

- derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(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, EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company''s functional currency(INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

The Company, as risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

(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. The Company''s policy is to maintain most of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. During 31st March 2017, 31st March 2016 and 1st April 2015, the Company''s borrowings at variable rate were mainly denominated in INR.

The Company''s fixed rate borrowings are carried at amortized 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 a change in market interest rates.

The exposure of the Company''s financial assets and financial liabilities as at 31st March 2017, 31st March 2016 and 1st April 2015 to interest rate risk is as follows:

Increase /decrease of 50 basis points (holding all other variables constant) in interest rates at the balance sheet date would result in an impact (decrease/increase in case of net income) of Rs. 395.31 lakhs and Rs. 324.74 lakhs on profit before tax for the year ended 31 March 2017 and 31 March 2016 respectively.

(iii) Price risk

The Company''s exposure to equity securities price risk arises from investments held - both quoted and unquoted and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. The Company is not expecting high risk exposure from its investment in securities.

The table below sets forth the fair value of quoted and unquoted investments in securities of listed companies .

Sensitivity analysis for quoted equity investments

The impact of increases/decreases of the index on the Company''s quoted equity investments for the period is based on the assumption that the equity index had increased/ decreased with all other variables held constant, and that all the Company''s equity investments moved as per the market index.

Increase /decrease of 1000 basis points of index would result in an impact (increase/ decrease) by Rs. 722.43 lakhs and Rs. 734.57 lakhs on other comprehensive income for the year ended 31st March 2017 and 31st March 2016 respectively.

(D) Agricultural Risk

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

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

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

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

- 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

- 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 48: Capital Management (a) Risk Management

The Company''s objectives when managing capital are to

(a) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(b) Maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of net debt to equity ratio and maturity profile of overall debt portfolio of the Company.

Note 5: In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority had raised a demand of Rs.5278 lakhs during the year 2009-10 on the Company on account of alleged non-deduction of tax at source and interest thereon pertaining to the transaction. The Company challenged the said demand before the appropriate authorities and the matter is pending. Further, the Company has obtained a stay against the said demand from the Hon''ble High Court of Calcutta. The Company deposited Rs. 700.00 lakhs during the year 2011-12 with Income Tax Authority under protest (Refer Note 15). In any event, as per the related Share Purchase Agreement, Capital Gain tax or other tax, if any, relating to sale of shares etc. is to be borne by the seller and not the Company.

Note 6: Revenue Expenditure on Research and Development Rs. 177.30 lakhs (31st March 2016 - Rs. 132.67 lakhs) represent subscription to Tea Research Association.

Note 7: There are no outstanding dues of Micro and Small Enterprises (MSEs) based on information available with the Company.

Note 8: Salaries and Wages

Salaries and Wages excludes Rs. 1104.31 lakhs (31st March 2016 - Rs. 801.57 lakhs) and Stores and Spares consumed excludes Rs. 3552.68 lakhs (31st March 2016 - Rs. 3268.47 lakhs) debited to other accounts.

Note 9: Details of Loans and Guarantees given covered under section 186(4) of the Companies Act, 2013

During the year, the Company has given Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans to certain parties for their business purposes, which is repayable on demand;

- Williamson Magor & Co. Ltd. - Nil (31st March 2016 - Rs. 4875 lakhs, 1st April 2015 - Nil) at the year end and maximum amount outstanding during the year Rs. 22700 lakhs (31st March 2016 - Rs. 18125 lakhs, 1st April 2015 - Rs. 14400 lakhs).

- Babcock Borsig Ltd. - Rs. 12550 lakhs (31st March 2016 - Rs. 3950 lakhs, 1st April 2015 - Nil) at the year end and maximum amount outstanding during the year Rs. 22450 lakhs (31st March 2016 - Rs. 19700 lakhs, 1st April 2015 - Rs. 11300 lakhs).

- Borelli Tea Holdings Ltd. - Rs. 5300 lakhs (31st March 2016 -Rs. 3100 lakhs, 1st April 2015 - Rs. 4400 lakhs) at the year end and maximum amount outstanding during the year Rs. 5300 lakhs (31st March 2016 - Rs. 4900 lakhs, 1st April 2015 - Rs. 4400 lakhs).

- Williamson Financial Services Ltd. - Rs. 7350 lakhs (31st March 2016 - Rs. 5100 lakhs, 1st April 2015 - Rs. 3800 lakhs) at the year end and maximum amount outstanding during the year Rs. 22300 Lakhs (31st March 2016 -Rs. 19650 lakhs, 1st April 2015 - Rs. 9250 lakhs).

- McNally Bharat Engg. Co. Ltd. - Rs. 3405 lakhs (31st March 2016 - Rs. 7225 lakhs, 1st April 2015 - Nil) at the year end and maximum amount outstanding during the year Rs. 39121 lakhs (31st March 2016 -Rs. 20179 lakhs, 1st April 2015 - Nil).

- Seajulie Developers & Finance Ltd. - Rs. 4840 lakhs (31st March 2016 - Nil, 1st April 2015 - Nil) at the year end and maximum amount outstanding during the year Rs. 5620 lakhs (31st March 2016 - Nil, 1st April 2015 - Nil).

During the year 2014-15, the Company had given Guarantee of USD 33 million (equivalent Rs.20628.30 lakhs) to a bank in respect of loans availed / to be availed by Borelli Tea Holdings Ltd. (wholly owned subsidiary) for its business purpose. The guarantee would continue till full repayment of the loans by the subsidiary. Refer to Note 40(b).

Note 9: First-time adoption of Ind AS Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31st March 2017, the comparative information presented in these financial statements for the year ended 31st March 2016 and in the preparation of an opening Ind AS balance sheet at 1st April 2015 (the Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and Exceptions availed

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.1 Ind AS optional exemptions A.1.1 Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated. The Company has applied same exemption for investment in associate.

A.1.2 Prospective application of Ind AS 21 to business combinations

The Company has elected to apply this exemption.

A.1.3 Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Asset.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value. The Company does not have any de-commissioning liabilities as on the date of transition and accordingly no adjustment have been made for the same.

A.1.4 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption for its investment in equity instruments.

A.1.5 Measurement of Investment in subsidiaries and associate

Ind AS 101 allows a first time adopter to measure investment in subsidiaries and associate at cost determined in accordance with Ind AS 27 or at deemed cost i.e. fair value of such investments at the entity''s date of transition or previous GAAP carrying amount at the date of transitions. Accordingly, the Company has adopted previous GAAP carrying amount of investment in subsidiary at cost. However, in respect of associate deemed cost is the fair value at the entity''s date of transition.

The Company has elected to apply this exemption for its investment in subsidiary and associate.

A.2 Ind AS mandatory exceptions A.2.1 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 1st April 2015 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:

i Investment in equity instruments carried at FVOCI;

ii Investment in debt instruments carried at FVPL; and

iii Biological asset measured at fair value less cost to sell.

A.2.2 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Notes to first-time Adoption Note 1: Replanting Cost

Under the previous GAAP, replanting cost was charged off to profit and loss account as and when incurred. Under Ind AS, such cost is being considered as bearer plant within the ambit of Ind AS 16 "Property, Plant and Equipment". Accordingly, replanting cost incurred after the transition date has been shown under Capital Work in Progress till the time it is ready for commercial production and capitalized under bearer plants when it is ready for commercial production. Consequent to the above change profit for the year ended 31st March 2016 has increased by Rs 1685.94 lakhs with corresponding increase in Capital work-in-progress..

Note 10: Depreciation on Bearer Plants

Underthe previous GAAP, neither the depreciation has been charged on bearer plants nor loss on disposal has been recognized. Under Ind AS, since bearer plants comes within the ambit of Ind AS 16 "Property, Plant and Equipment" depreciation and loss on disposal is being provided on bearer plants. Consequent to the above change profit for the year ended 31st March 2016 has decreased by Rs 2362.97 lakhs with corresponding decrease in balance of bearer plants.

Note 11: Investment in Subsidiary and Associate

The carrying value of investments in equity instruments in subsidiary and fair value of equity instruments in associate as on transition date have been considered as deemed cost. Fair value of equity instruments in associate has been considered as Rs. Nil as on the date of transition.

Consequent to above change, the total equity as on 1st April, 2015 and 31st March, 2016 has been reduced by Rs. 94.35 lakhs and Rs. 34.35 lakhs respectively.

Note 12: Fair valuation of Investments

Under the previous GAAP, investments in equity instruments were classified as long-term investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, these investments are required to be measured at fair value (except for Investments in subsidiary and associates for which exemption with regard to deemed cost is adopted).

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognized in FVOCI - Equity Investments (net of tax) as at the date of transition and subsequently in the other comprehensive income for the year ended 31st March 2016. This has increased FVOCI Equity Investments by Rs 6890.57 lakhs as at 31st March 2016 (1st April 2015- Rs 7550.00 lakhs).

Consequent to the above, the total equity as at 31st March 2016 increased by Rs 6890.57 lakhs (1st April 2015- Rs 7550.00 lakhs) and other comprehensive income for the year ended 31st March 2016 decreased by Rs 659.43 lakhs, respectively.

Note 13: Subsidies Receivable from Government

Under the previous GAAP, amount receivable as subsidy are recorded at their transaction value. Under Ind AS, such assets are measured at amortized cost . Difference between the amortized cost and the transaction value has been adjusted against Profit and Loss. Consequent to this change, the subsidy receivable has decreased by Rs 570.15 lakhs as at 1st April 2015 and 31st March 2016. Total equity decreased by Rs 570.15 lakhs as on 1st April 2015 and 31st March 2016.

Note 14: Other Long Term Receivable

Under the previous GAAP, amount receivable for sale of tea estates are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued the amount receivable for sale of tea estates. Difference between the fair value and the transaction value has been adjusted against Profit and Loss. Consequent to this change, the amount receivable for sale of tea estates decreased by Rs 89.69 lakhs as at 1st April 2015 and 31st March 2016. Total equity decreased by Rs 89.69 lakhs as on 1st April 2015 and 31st March 2016.

Note 15: Inventories

(a) Raw Materials : 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 Raw Materials.

Consequent to this change, inventory of raw materials has increased by Rs 158.64 lakhs and Rs 265.80 lakhs as at 1st April 2015 and 31st March 2016 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 (i.e 40 % of factory cost) and other costs incurred in bringing the inventories to their present location and condition.

Consequent to this change, inventory of finished goods as on 1st April 2015 has increased by Rs 209.57 lakhs with corresponding increase in equity. However, Inventories as on 31st March 2016 had decreased by Rs 235.96 lakhs with corresponding decrease in equity.

Note 16: 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 recognized 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 1st April 2015 has increased by Rs. 314.17 lakhs with corresponding increase in equity. However, inventory of biological assets as on 31st March, 2016 has increased by Rs. 393.58 lakhs with corresponding increase in equity.

Note 17: Derivative Financial Asset

Under previous GAAP, mark to market gains in respect of outstanding foreign currency derivative contracts are not recognized in the financial statements in accordance with ICAI Announcement on Accounting for Derivatives. Under Ind AS, such gains are accounted for in the financial statements. Consequent to the above change Derivative Financial Asset as on 1 April, 2015 and 31 March, 2016 have been increased by Rs. 96.95 lakhs and Rs. 275.74 lakhs respectively with corresponding increase in equity.

Note 17: 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 recognized 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 31st March 2016 have been reduced by Rs 94.49 lakhs (1st April 2015- Rs 22.33 lakhs) with a corresponding adjustment to retained earnings. The total equity increased by an equivalent amout. The profit for the year ended 31st March 2016 increased by Rs 72.16 lakhs as a result of reversal of excess charge on account of interest expenses.

Note 18: Deferred Tax

Under previous GAAP, no deferred tax asset/ liability was recognized on revalued amount of Property, Plant and Equipment since this was considered as permanent difference. Under Ind AS, deferred tax liability was recognized on such revalued amount, with tax base being Rs. NIL.

Consequent to above change, deferred tax liability has increased by Rs. 22696.98 lakhs as on 1st April, 2015 and by Rs. 22571.19 lakhs as on 31st March, 2016 with corresponding decrease in equity for respective period.

Note 18: Proposed Dividend and Tax on Proposed Dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements and applicable dividend tax thereon were considered as adjusting events. Accordingly, provision for proposed dividend and dividend tax thereon was recognized as a liability. Under Ind AS, such dividend and tax thereon are recognized when the dividend is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend and dividend tax thereon aggregating Rs 2634.76 lakhs as at 31st March 2016 (1st April 2015 - Rs 3952.15 lakhs) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note 19: Remeasurements of postemployment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized 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, the profit for the year ended 31 March, 2016 has decreased by Rs. 602.88 lakhs (net of tax Rs.281.67 lakhs). There is no impact on the total equity as at 31st March 2016.

Note 20: Retained Earnings

Retained earnings as at 1st April, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

Note 21: Other Comprehensive Income

Under Ind AS, all items of income and expense recognized 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 recognized 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.

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Mar 31, 2016

1. SCHEMES OF AMALGAMATION/SCHEME OF ARRANGEMENT GIVEN EFFECT TO IN EARLIER YEARS

Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books of the Company under the name of the transferor companies (including other companies which were amalgamated with the transferor companies from time to time).

2. EMPLOYEE BENEFITS:

I. Post Employment Defined Contribution Plans:

During the year an amount of Rs 5357.60 lakhs (31st March 2015 - Rs. 4421.04 lakhs) has been recognized as expenditure towards Defined Contribution plans of the Company.

II. Post Employment Defined Benefit Plans:

a) Gratuity (Funded)

The Company''s gratuity scheme, a defined benefit plan, covers the eligible employees and is administered through certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/trustees themselves, 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 subject to a maximum limit of Rs. 10.00 lakhs. Vesting occurs upon completion offiveyears ofservice.

b) Superannuation (Funded)

The Company''s Superannuation scheme, a Defined Benefit plan, is administered through trust funds and covers certain categories of employees. Investments of the funds are managed by insurance companies /trustees themselves. Benefits under these plans had been frozen in earlier years with regard to salary levels then prevailing. Upon retirement, death or cessation of employment, Superannuation Funds purchase annuity policies in favor of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure of employment and salary.

c) StaffPension-TypeA(Funded)

The Company''s Staff Pension Scheme - Type A, a Defined Benefit plan, is administered through a trust fund and covers certain categories of employees. Investments of the fund are managed by Life Insurance Corporation of India. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

d) Staff Pension - Type B (Unfunded)

The Company''s Staff Pension Scheme - Type B, a Defined Benefit plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

e) Medical Insurance Premium Re-imbursement (Unfunded)

The Company has a scheme of re-imbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject to a monetary limit. The Company has introduced a scheme of re-imbursement of medical expenses to a certain category of employees up to a certain monetary limit. The scheme is in the nature of Defined Benefit plan.

f) Expatriate Pension (Unfunded)

The Company has an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to their surviving spouses. The scheme is in the nature of Defined Benefit plan.

The estimates of rate of inflation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment sphere.

Plan assets represent investment in various categories. The return on amounts invested with LIC is declared annually by them. Return on amounts invested with Insurance companies, other than LIC, is mostly by way of Net Asset Value declared on units purchased, with some schemes declaring returns annually. Investment in Bonds and Special Deposit carrya fixed rate ofinterest.

The expected return on plan assets is determined after taking into consideration compositionof theplan assets held, assessed risk of asset management and other relevant factors.

g) Provident Fund:

Contributions towards provident funds are recognized as expense for the year. The Company has set up Provident Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make monthly contributions to the Funds at specified percentageof theemployee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

In terms of the Guidance on implementing Accounting Standard 15 (Revised 2005) on Employee Benefits issued by the Accounting Standard Board of The Institute of Chartered Accountants of India (ICAI), a provident fund set up by the Company is defined benefit plan in view of the Company''s obligation to meet shortfall, if any, on account of interest.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the balance sheet date using Project Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the Company as at the balance sheet date. Further during the year, the Company''s contribution of Rs. 332.10 lakhs (31st March 2015 -Rs. 386.59 lakhs) to the Provident Fund Trust has been expensed under the ''Contribution to Provident and Other Funds''. Disclosures given hereunder are restricted to the information available as per the Actuary''s report.

b) Guarantees given on behalf of a subsidiary - Rs. 26616.63 lakhs (31st March 2015 - Rs. 24658.50 lakhs); Year-end balance of loan Rs. 15268.87 lakhs (31st March 2015 - Rs. 15947.08 lakhs).

c) Bank Guarantees - Rs. 158.01 lakhs (31st March 2015 - Rs. 123.96 lakhs)

d) Bills Discounted - Rs. 1719.04 lakhs (31st March 2015- Rs. 1203.58 lakhs)

It is not practicable forthe company to estimate the timingsof thecash outflows, ifany, in respect oftheabove pending resolution of the same.

The company does not expect any reimbursement in respect of the above contingent liabilities.

3. COMMITMENTS

a) Estimated Capital Commitment on account of contracts remaining to be executed and not provided for at the year-end is Rs. 1116.75 lakhs (31st March 2015 - Rs. 2670.27 lakhs). Such commitment, net of advances, is Rs. 352.52 lakhs (31st March 2015 - Rs. 779.23 lakhs).

b) The Company has undertaken to continue to directly hold 100% (31st March 2015 - 100%) of the shares in the share capital of Borelli Tea Holdings Limited (BTHL) in connection with the Senior Term Loan facility of EURO 6.00 million (31st March 2015 - EURO 6.00 million) obtained by BTHL from ICICI Bank UK PLC, Frankfurt.

c) In connection with a Term Loan of Rs. 5000.00 lakhs (31st March 2015 - Rs. 5000.00 lakhs) taken by McNally Bharat Engineering Company Limited (MBECL) from one of its Bankers, the Company has furnished a Non-Disposal Undertaking in respect of its present and future holding of shares in MBECL to remain valid so long as any monies remain due by MBECL in respect of the said loan to the said bank.

4. BUSINESS SEGMENT

The Company is primarily engaged in the business of cultivation, manufacture and sale of tea and is managed organizationally as a single unit. Accordingly, the Company is a single business segment company.

Geographical (Secondary) Segments

The geographical segments have been identified as follows:

5. Information given in accordancewith the requirementofAccountingStandard 18on Related Party Disclosures prescribed under the Act : -a) List of Related Parties Where control exists:

- Subsidiaries:

Borelli Tea Holdings Limited (BTHL)

Phu Ben Tea Company Limited (PBTCL)

Rwenzori Tea Investments Limited (RTI)

McLeod Russel Uganda Limited (MRUL)

Gisovu Tea Company Limited (GTCL)

McLeod Russel Middle East DMCC (MRME)

McLeod Russel Africa Limited (MRAL)

Pfunda Tea Company Limited (PTCL)

Others: - Associates:

D1 Williamson Magor Bio Fuel Limited (D1)

- Key Management Personnel

Managing Director Mr. AdityaKhaitan (AK)

Wholetime Directors Mr. Rajeev Takru (RT)

Mr. AzamMonem (AM)

Mr. Kamal Kishore Baheti (KKB)

- Relatives of Key Management Personnel with whom transactions took place during the year.

Mr. Brij Mohan Khaitan (BMK) Father of Mr. AdityaKhaitan

Mrs. Shanti Khaitan (SK) (died on 25th February, 2016) Mother of Mr. AdityaKhaitan

Mrs. KavitaKhaitan (KK) Wife of Mr. AdityaKhaitan

Mr. Deepak Khaitan (DK) (died on 9th March, 2015) Brother of Mr. AdityaKhaitan

Mrs. ZubeenaMonem (ZM) Wife of Mr. AzamMonem

The above remuneration of Managing Director (AK) and Whole time directors (RT, AM, KKB) is in accordance with the Shareholders'' approval obtained at the Sixteenth AGM of the Company held on 23rd July, 2014 together with special resolution passed by way of Postal Ballot on 1st October, 2015.

However, due to inadequacy of profit of the Company during the year 2015-16, the above remuneration has exceeded the limit prescribed under section 197 of the Companies Act, 2013 in anticipation of which the Company has applied to the Central Government seeking its approval to the above remuneration.

6. In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority had raised a demand of Rs.5278 lakhs during the year 2009-10 on the Company on account of alleged non-deduction of tax at source and interest thereon pertaining to the transaction. The Company challenged the said demand before the appropriate authorities and the matter is pending. Further, the Company has obtained a stay against the said demand from the Hon''ble High Court of Calcutta. The Company deposited Rs. 700.00 lakhs during the year 2011-12 with Income Tax Authority under protest (Refer Note 19). In any event, as per the related Share Purchase Agreement, Capital Gain tax or other tax, if any, relating to sale of shares etc. is to be borne by the seller and not the Company.

7. Revenue Expenditure on Research and Development Rs. 132.67 lakhs (31st March 2015 - Rs. 131.90 lakhs) represent subscription to Tea Research Association.

8. There are no outstanding dues of Micro and Small Enterprises (MSEs) based on information available with the Company.

9. Salaries and Wages excludes Rs. 801.57 lakhs (31st March 2015 - Rs. 915.06 lakhs) and Stores and Spares consumed excludes Rs. 3268.47 lakhs (31st March 2015 - Rs. 3499.44 lakhs) debited to other accounts.

10. DetailsofLoansand Guaranteesgiven covered under section 186(4)ofthe CompaniesAct, 2013

During the year, the Company has given Interest bearing (which is not lower than prevailing yield of related Government Security

close to the tenure of respective loans) loans to certain parties for their business purposes, which is repayable on demand ;

- Williamson Magor& Co. Ltd. - Rs. 4875 lakhs (31st March 2015 - Nil) at the year end and maximum amount outstanding during the year Rs. 18125 lakhs (31st March 2015 - Rs. 14400 lakhs).

- Babcock Borsig Ltd. - Rs. 3950 lakhs (31st March 2015 - Nil) at the year end and maximum amount outstanding during the year Rs. 19700 lakhs (31st March 2015 - Rs. 11300 lakhs).

- Borelli Tea Holdings Ltd. - Rs. 3100 lakhs (31st March 2015 - 4400 lakhs) at the year end and maximum amount outstanding during the year Rs. 4900 lakhs (31st March 2015 - Rs. 4400 lakhs).

- Williamson Financial Services Ltd. - Rs. 5100 lakhs (31st March 2015 - Rs. 3800 lakhs) at the year end and maximum amount outstanding during the year Rs. 19650 Lakhs (31st March 2015 - Rs. 9250 lakhs).

- McNally Bharat Engg. Co. Ltd. - Rs.7225 lakhs (31st March 2015 - Nil) at the year end and maximum amount outstanding during the year Rs. 20179 lakhs (31st March 2015 - Nil).

During the year 2014-15, the company had given Guarantee of USD 33 million (equivalent Rs.20628.30 lakhs) to a bank in respect of loans availed / to be availed by Borelli Tea Holdings Ltd. (wholly owned subsidiary) for its business purpose. The guarantee would continue till full repayment of the loans by the subsidiary.

11. Corporate Social Responsibility Expenditure

(a) Gross amount required to be spent by the company during the year : Rs. 366.19 lakhs

(b) Amount spent during the year on :

12. Previous yearfigures have been reclassified to conform to this year’s classification.

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Mar 31, 2014

1. Schemes of Amalgamation/Scheme of Arrangement given effect to in earlier years

Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books of the Company under the name of the transferor companies (including other companies which were amalgamated with the transferor companies from time to time).

2. Employee Benefits:

I. Post Employment Defined Contribution Plans:

During the year an amount of Rs.3900.82 lakhs (31st March 2013 - Rs.3602.80 lakhs) has been recognised as expenditure towards Defined Contribution plans of the Company.

II. Post Employment Defined Benefit Plans:

a) Gratuity (Funded)

The Company''s gratuity scheme, a Defined Benefit Plan, covers the eligible employees and is administered through certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/trustees themselves, 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 subject to a maximum limit of Rs.10.00 lakhs. Vesting occurs upon completion of five years of service.

b) Superannuation (Funded)

The Company''s Superannuation scheme, a Defined Benefit Plan, is administered through trust funds and covers certain categories of employees. Investments of the funds are managed by insurance companies/ trustees themselves. Benefits under these plans had been frozen in earlier years with regard to salary levels then prevailing. Upon retirement, death or cessation of employment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure of employment and salary.

c) Staff Pension-Type A (Funded)

The Company''s Staff Pension Scheme - Type A, a Defined Benefit Plan, is administered through a trust fund and covers certain categories of employees. Investments of the fund are managed by Life Insurance Corporation of India. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

d) Staff Pension- Type B (Unfunded)

The Company''s Staff Pension Scheme - Type B, a Defined Benefit Plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

e) Medical Insurance Premium Reimbursement (Unfunded)

The Company has a scheme of reimbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject to a monetary limit. The Company has introduced a scheme of reimbursement of medical expenses to a certain category of employees up to a certain monetary limit. The scheme is in the nature of Defined Benefit Plan.

f) Expatriate Pension (Unfunded)

The Company has an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to their surviving spouses. The scheme is in the nature of Defined Benefit Plan.

g) Provident Fund:

Contributions towards provident funds are recognised as expense for the year. The Company has set up Provident Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make monthly contributions to the Funds at specified percentage of the employee''s salary and aggregate contributions along with interest thereon are paid to the employees/ nominees at retirement, death or cessation of employment. The Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

In terms of the Guidance on implementing Accounting Standard 15 (Revised 2005) on Employee Benefits issued by the Accounting Standard Board of The Institute of Chartered Accountants of India (ICAI), a provident fund set up by the Company is defined benefit plan in view of the Company''s obligation to meet shortfall, if any, on account of interest.

The Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the balance sheet date using Project Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the Company as at the balance sheet date. Further during the year, the Company''s contribution of Rs.282.70 lakhs (31st March 2013 - Rs.284.90 lakhs) to the Provident Fund Trust has been expensed under the "Contribution to Provident and Other Funds". Disclosures given hereunder are restricted to the information available as per the Actuary''s report.

3. Contingent liabilities

a) Claims against the Company not acknowledged as debts : -

31st March 2014 31st March 2013 Rs. Lakhs Rs. Lakhs

Sales Tax - 52.14

Electricity Dues 45.17 29.27

Excise Duty 10.75 -

Provident Fund 68.43 68.43

Income Tax 1272.57 150.10

Service Tax 70.13 70.13

b) Guarantees given on behalf of a subsidiary - Rs.4947.27 lakhs (31st March 2013 - Rs.12213.00 lakhs); Year end utilisation Rs.4947.27 lakhs (31st March 2013 - Rs.4094.58 lakhs).

c) Bank Guarantees Rs.86.58 lakhs (31st March 2013 - Rs.117.58 lakhs)

d) Bills Discounted - Rs.8057-93 lakhs (31st March 2013- Rs.9490.76 lakhs)

4. TAXATION

Current Tax charge for the year has been reckoned after taking into account, benefit under Section 33AB of the Income Tax Act, 1961 (which are available on timely deposit of required amount with development bank).

5.COMMITMENTS

a) Estimated Capital Commitment on account of contracts remaining to be executed and not provided for at the year-end is Rs.1625.26 lakhs (31st March 2013 - Rs.1431.11 lakhs). Such commitment, net of advances, is Rs.1163.65 lakhs (31st March 2013 - Rs.731.97 lakhs).

b) The Company has undertaken to continue to directly hold 10096 of all the shares in the share capital of Borelli

Tea Holdings Limited (BTHL) in connection with the Senior Term Loan facility of EURO 6.00 million obtained by BTHL from ICICI Bank UK PLC, Frankfurt.

c) In connection with a Term Loan of Rs.5000.00 lakhs taken by McNally Bharat Engineering Company Limited (MBECL) from one of its Bankers, the Company has furnished a Non-Disposal Undertaking in respect of its present and future holding of shares in MBECL to remain valid so long as any monies remain due by MBECL in respect of the said loan to the said bank.

6. BUSINESS SEGMENT

The Company is primarily engaged in the business of cultivation, manufacture and sale of tea and is managed organisationally as a single unit. Accordingly, the Company is a single business segment company.

7. Information given in accordance with the requirement of Accounting Standard 18 on Related Party Disclosures prescribed under the Act: - a) list of Related Parties Where control exists:

- Subsidiaries:

Borelli Tea Holdings Limited (BTHL)

Phu Ben Tea Company Limited (PBTCL)

Rwenzori Tea Investments Limited (RTI)

McLeod Russel Uganda Limited (MRUL)

Gisovu Tea Company Limited (GTCL)

McLeod Russel Middle East DMCC (MRME)

McLeod Russel Africa Limited (MRAL) (w.e.f. 20th May 2013)

Others:

- Associates:

Dl Williamson Magor Bio Fuel Limited (Dl)

- Key Management Personnel

Managing Director Mr. Aditya Khaitan (AK)

Wholetime Directors Mr. Rajeev Takru (RT)

Mr.AzamMonem(AM) Mr.KamalKishoreBaheti(KKB)

- Relatives of Key Management Personnel with whom transactions took place during the year.

Mr. Brij Mohan Khaitan (BMK) Father of Mr. Aditya Khaitan

Mr. Deepak Khaitan (DK) Brother of Mr. Aditya Khaitan

8. In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority had raised a demand of Rs.5278 lakhs during the year 2009-10 on the Company on account of alleged non-deduction of tax at source and interest thereon pertaining to the transaction. The Company challenged the said demand before the appropriate authorities and the matter is pending. Further, the Company has obtained a stay against the said demand from the Hon''ble High Court of Calcutta. The Company deposited Rs.700.00 lakhs during the year 2011-12 with Income Tax Authority under protest (Refer Note 19). In any event, as per the related Share Purchase Agreement, Capital Gain tax or other tax, if any, relating to sale of shares etc. is to be borne by the seller and not the Company.

9. Revenue Expenditure on Research and Development Rs.109.49 lakhs (31st March 2013 - Rs.110.43 lakhs) represent subscription to Tea Research Association.

10. There are no outstanding dues of Micro and Small Enterprises (MSEs) based on information available with the Company.

11. Salaries and Wages excludes Rs.825.78 lakhs (31st March 2013 - Rs.782.67lakhs) and Stores and Spares consumed excludes Rs.3ii3.55 lakhs (31st March 2013 - Rs.2712.46 lakhs) debited to other accounts.

12. There are certain overdue loans and advances, interest accrued on loans and other recoverable items aggregating Rs.4351.42 lakhs and as a measure of prudence and in the management''s best judgement, the same amount was also held in provision for contingency as on 31st March 2013. After continued persuasion for recovery of aforesaid dues, the management has considered that possibility of recovery is doubtful and accordingly, the said contingency provision has been made as specific provision to the extent of respective overdue balances as on 31st March, 2014.

13. Previous year figures have been reclassified to conform to this year''s classification.

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Mar 31, 2013

1. Schemes of Amalgamation/Scheme of Arrangement given eff ect to in earlier years

Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books of the Company under the name of the transferor companies (including other companies which were amalgamated with the transferor companies from time to time).

2. Employee Benefi ts :

I. Post Employment Defi ned Contribution Plans:

During the year an amount of Rs. 3602.80 lakhs (31st March 2012 - Rs. 3239.20 lakhs) has been recognised as expenditure towards Defi ned Contribution plans of the Company.

II. Post Employment Defi ned Benefi t Plans:

a) Gratuity (Funded)

T e Company''s gratuity scheme, a defi ned benefi t plan, covers the eligible employees and is administered through certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/trustees themselves, 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 subject to a maximum limit of Rs. 10.00 lakhs. Vesting occurs upon completion of fi ve years of service.

b) Superannuation (Funded)

T e Company''s Superannuation scheme, a Defi ned Benefi t plan, is administered through trust funds and covers certain categories of employees. Investments of the funds are managed by insurance companies / trustees themselves. Benefi ts under these plans had been frozen in earlier years with regard to salary levels then prevailing with the exception of a few employees. Upon retirement, death or cessation of employment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefi ts are based on respective employee''s tenure of employment and salary.

c) Staff Pension – Type A (Funded)

T e Company''s Staff Pension Scheme – Type A, a Defi ned Benefi t plan, is administered through a trust fund and covers certain categories of employees. Investments of the fund are managed by Life Insurance Corporation of India. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

d) Staff Pension – Type B (Unfunded)

T e Company''s Staff Pension Scheme – Type B, a Defi ned Benefi t plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee''s salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

e) Medical Insurance Premium Re-imbursement (Unfunded)

T e Company has a scheme of re-imbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject to a monetary limit. T e Company has introduced a scheme of re-imbursement of medical expenses to a certain category of employees up to a certain monetary limit. T e scheme is in the nature of Defi ned Benefi t plan.

f) Expatriate Pension (Unfunded)

T e Company has an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to their surviving spouses. T e scheme is in the nature of Defi ned Benefi t plan.

T e following Tables sets forth the particulars in respect of aforesaid Defi ned Benefi t plans of the Company for the year ended 31st March 2013 and corresponding fi gures for the previous year.

g) Provident Fund:

Contributions towards provident funds are recognised as expense for the year. T e Company has set up Provident Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make monthly contributions to the Funds at specifi ed percentage of the employee''s salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. T e Trusts invest funds following a pattern of investments prescribed by the Government. T e interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under T e Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

In terms of the Guidance on implementing Accounting Standard 15 (Revised 2005) on Employee Benefi ts issued by the Accounting Standard Board of T e Institute of Chartered Accountants of India (ICAI), a provident fund set up by the Company is defi ned benefi t plan in view of the Company''s obligation to meet shortfall, if any, on account of interest.

T e Actuary has carried out actuarial valuation of plan''s liabilities and interest rate guarantee obligations as at the balance sheet date using Project Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the Company as at the balance sheet date. Further during the year, the Company''s contribution of Rs. 284.90 lakhs (31st March 2012 – Rs. 237.07 lakhs) to the Provident Fund Trust has been expensed under the "Contribution to Provident and Other Funds''. Disclosures given hereunder are restricted to the information available as per the Actuary''s report.

3. T ere are certain overdue loans and advances, interest accrued on loans and other recoverable items aggregating Rs. 4351.42 lakhs (31st March 2012 - Rs. 4351.42 lakhs). T ese advances became overdue on account of the sluggish market conditions and the resultant diffi culty in liquidating the assets by these parties. T e management is actively continuing to pursue options for recovery of these loans and advances. As a measure of prudence, and in the management''s best judgement Rs. 4351.42 lakhs (31st March 2012 - Rs. 4351.42 lakhs) is being held in provision for contingency, for overdue loans and advances etc. at the year end. (Refer Note 6).

4. Contingent Liabilities

a) Claims against the Company not acknowledged as debts : -

31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs

Sales Tax 52.14 26.37

Electricity Dues 29.27 29.27

Assam Pollution Control Board 7.41

Provident Fund 68.43 68.43

Income Tax 150.10 247.65

Service Tax 70.13 75.48

Others 0.86

b) Guarantees given on behalf of a subsidiary - Rs. 12213.00 lakhs (31st March 2012 - Rs. 11445.75 lakhs); Year end utilisation Rs. 4094.58 lakhs (31st March 2012 – Rs. 7089.93 lakhs).

c) Bank Guarantees Rs. 117.58 lakhs (31st March 2012 - Rs. 102.94 lakhs)

d) Bills Discounted – Rs. 9490.76 lakhs (31st March 2012– Rs. 1014.45 lakhs)

5. TAXATION

Current Tax charge for the year has been reckoned after taking into account, benefi t under Section 33AB of the Income Tax Act, 1961 (which are available on timely deposit of required amount with development bank).

6. COMMITTMENTS

Estimated Capital Commitment on account of contracts remaining to be executed and not provided for at the year-end is Rs. 1431.11 lakhs (31st March 2012 - Rs. 3230.22 lakhs). Such commitment, net of advances, is Rs. 731.97 lakhs (31st March 2012 - Rs. 1515.42 lakhs).

7. BUSINESS SEGMENT

T e Company is primarily engaged in the business of cultivation, manufacture and sale of tea and is managed organisationally as a single unit. Accordingly, the Company is a single business segment company.

Geographical (Secondary) Segments

T e geographical segments have been identifi ed as follows :

8. Information given in accordance with the requirement of Accounting Standard 18 on Related Party Disclosures prescribed under the Act : - a) List of Related Parties Where control exists:

- Subsidiaries :

Borelli Tea Holdings Limited (BTHL) Phu Ben Tea Company Limited (PBTCL) Rwenzori Tea Investments Limited (RTI) McLeod Russel Uganda Limited (MRUL) Olyana Holdings LLC (Olyana) (upto 25th June 2012) Gisovu Tea Company Limited (GTCL) McLeod Russel Middle East (MRME) Others:

- Associates :

D1 Williamson Magor Bio Fuel Limited (D1)

- Key Management Personnel

Managing Director Mr. Aditya Khaitan (AK)

Wholetime Directors Mr. R. Takru (RT)

Mr. A. Monem (AM)

Mr. K. K. Baheti (KKB)

- Relatives of Key Management Personnel with whom transactions took place during the year.

Mr. B. M. Khaitan (BMK) Father of Mr. A. Khaitan Mr. D. Khaitan (DK) Brother of Mr. A. Khaitan

9. During the year 2012-13, a tea-manufacturing factory has been taken on non-cancellable operating lease for period from 1st January 2013 to 31st December 2017. T e Lease Rent charged in Profi t & Loss Statement and future lease commitments are:

10. In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority had raised a demand of Rs.5278 lakhs during the year 2009-10 on the Company on account of alleged non-deduction of tax at source and interest thereon pertaining to the transaction. T e Company has challenged the said demand before the appropriate authorities and the matter is pending. Further, the Company has obtained a stay against the said demand from the Hon''ble High Court of Calcutta. T e Company has deposited Rs. 700.00 lakhs during the year 2011-12 with Income Tax Authority under protest (Refer Note 19). In any event, as per the related Share Purchase Agreement, Capital Gain tax or other tax, if any, relating to sale of shares etc. is to be borne by the seller and not the Company.

11. Revenue Expenditure on Research and Development Rs. 110.43 lakhs (31st March 2012 - Rs. 113.89 lakhs) represent subscription to Tea Research Association.

12. T ere are no outstanding dues of Micro and Small Enterprises (MSEs) based on information available with the Company.

13. Salaries and Wages excludes Rs. 782.67 lakhs (31st March 2012 - Rs. 1080.81 lakhs) and Stores and Spares consumed excludes Rs. 2712.46 lakhs (31st March 2012 - Rs. 2532.97 lakhs) debited to other accounts.

14. Items of Expenditure in the Profi t and Loss Statement include reimbursements to and by the Company.

15. Previous year fi gures have been reclassifi ed to conform to this year''s classifi cation.

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Mar 31, 2012

Rights, preferences and restrictions attached to Shares

(a) The Company has only one class of shares referred to as Equity Shares having a par value of Rs. 5/- per share. Each shareholder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(b) Details of Equity Shares held by shareholders holding more than 5 per cent of the Equity Shares in the Company

(a) Represents a free reserve not meant for any specific purpose.

(b) Represents the balance amount of reserve which had arisen on transfer of Bulk Tea Division of Eveready Industries India Limited.

(a) Conveyance deed is pending execution for Jaibirpara Tea estate for Rs. 293 lakhs (31.03.11 - Rs. 293 lakhs)

(c) Represents cost of proportionate share of undivided land pertaining to certain portion of multistoried building

(a) The above represents the trade mark (Brand - WM logo) acquired in January 2005 and the same is being amortised under straight line method over a working life of 20 years on prudent basis based on the valuation obtained by the management, considering the factors like effective life/utility.

1. Schemes of Amalgamation/Scheme of Arrangement given effect to in earlier years Pending completion of the relevant formalities of transfer of certain assets and liabilities acquired pursuant to the Schemes, such assets and liabilities remain included in the books of the Company under the name of the transferor companies (including other companies which were amalgamated with the transferor companies from time to time).

2. Employee Benefits :

I. Post Employment Defined Contribution Plans:

During the year an amount of Rs. 3239.20 lakhs (31st March 2011 - Rs. 2738.73 lakhs) has been recognised as expenditure towards Defined Contribution plans of the Company.

II. Post Employment Defined Benefit Plans:

(a) Gratuity (Funded)

The Company's gratuity scheme, a defined benefit plan, covers the eligible employees and is administered through certain gratuity fund trusts. Such gratuity funds, whose investments are managed by insurance companies/trustees themselves, 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 subject to a maximum limit of Rs. 10.00 lakhs. Vesting occurs upon completion of five years of service.

(b) Superannuation (Funded)

The Company's Superannuation scheme, a Defined Benefit plan, is administered through trust funds and covers certain categories of employees. Investments of the funds are managed by insurance companies /trustees themselves. Benefits under these plans had been frozen in earlier years with regard to salary levels then prevailing with the exception of a few employees. Upon retirement, death or cessation of employment, Superannuation Funds purchase annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee's tenure of employment and salary.

(c) Staff Pension – Type A (Funded)

The Company's Staff Pension Scheme – Type A, a Defined Benefit plan, is administered through a trust fund and covers certain categories of employees. Investments of the fund are managed by Life Insurance Corporation of India. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee's salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

(d) Staff Pension – Type B (Unfunded)

The Company's Staff Pension Scheme – Type B, a Defined Benefit plan, covers certain categories of employees. Pursuant to the scheme, monthly pension is paid to the vested employee or his/her nominee upon retirement, death or cessation of service based on the respective employee's salary and tenure of employment subject to a limit on the period of payment in case of nominee. Vesting occurs upon completion of twenty years of service.

(e) Medical Insurance Premium Re-imbursement (Unfunded)

The Company has a scheme of re-imbursement of medical insurance premium to certain categories of employees and their surviving spouses, upon retirement, subject to a monetary limit. The Company has introduced a scheme of re-imbursement of medical expenses to a certain category of employees up to certain monetary limit. The scheme is in the nature of Defined Benefit plan.

(f) Expatriate Pension (Unfunded)

The Company has an informal practice of paying pension to certain categories of retired expatriate employees and in certain cases to their surviving spouses. The scheme is in the nature of Defined Benefit plan.

The following Tables sets forth the particulars in respect of aforesaid Defined Benefit plans of the Company for the year ended 31st March 2012 and corresponding figures for the previous year.

The estimates of rate of inflation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment sphere.

Plan assets represent investment in various categories. The return on amounts invested with LIC is declared annually by them. Return on amounts invested with Insurance companies, other than LIC, is mostly by way of Net Asset Value declared on units purchased, with some schemes declaring returns annually. Investment in Bonds and Special Deposit carry a fixed rate of interest.

The expected return on plan assets is determined after taking into consideration composition of the plan assets held, assessed risk of asset management and other relevant factors.

(g) Provident Fund:

Contributions towards provident funds are recognised as expense for the year. The Company has set up Provident Fund Trusts in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make monthly contributions to the Funds at specified percentage of the employee's salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

In terms of the Guidance on implementing Accounting Standard 15 (Revised 2005) on Employee Benefits issued by the Accounting Standard Board of The Institute of Chartered Accountants of India (ICAI), a provident fund set up by the Company is defined benefit plan in view of the Company's obligation to meet shortfall, if any, on account of interest.

Unlike in earlier years, the Actuary has carried out actuarial valuation of plan's liabilities and interest rate guarantee obligations as at the balance sheet date using Project Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the Company as at the balance sheet date. Further during the year, the Company's contribution of Rs. 237.07 lakhs (31st March 2011 – Rs. 189.10 lakhs) to the Provident Fund Trust has been expensed under the "Contribution to Provident and Other Funds". Disclosures given hereunder are restricted to the information available as per the Actuary's report.

3. There are certain overdue loans and advances, interest accrued on loans and other recoverable items aggregating Rs. 4351.42 lakhs (31st March 2011 - Rs. 4351.42 lakhs). These advances became overdue on account of the sluggish market conditions and the resultant difficulty in liquidating the assets by these parties. The management is actively continuing to pursue options for recovery of these loans and advances. As a measure of prudence, and in the management's best judgement Rs. 4351.42 lakhs (31st March 2011 - Rs. 4351.42 lakhs) is being held in provision for contingency, for overdue loans and advances etc. at the year end. (Refer Note 6).

4. Contingent Liabilities

(a) Claims against the Company not acknowledged as debts : -

31st March 2012 31st March 2011 Rs. Lakhs Rs. Lakhs

Sales Tax 26.37 26.37

Electricity Dues 29.27 32.47

Assam Pollution Control Board 7.41 7.41

Provident Fund 68.43 68.43

Income Tax 247.65 79.49

Service Tax 75.48 75.48

Others 0.86 4.95

(b) Guarantees given on behalf of a subsidiary - Rs. 11445.75 lakhs (31st March 2011 - Rs. 11745.46 lakhs); Year end utilisation Rs. 7089.93 lakhs (31st March 2011 – Rs. 7938.19 lakhs).

(c) Bank Guarantees Rs. 102.94 lakhs (31st March 2011 - Rs. 83.28 lakhs)

(d) Bills Discounted – Rs. 1014.45 lakhs (31st March 2011– Rs. 2445.65 lakhs)

5. TAXATION

Current Tax charge for the year has been reckoned after taking into account, benefit under Section 33AB of the Income Tax Act, 1961 (which are available on timely deposit of required amount with development bank).

6. COMMITTMENTS

Estimated Capital Commitment on account of contracts remaining to be executed and not provided for at the year-end is Rs. 3230.22 lakhs (31st March 2011 - Rs. 1030.07 lakhs). Such commitment, net of advances, is Rs. 1515.42 lakhs (31st March 2011 - Rs. 494.44 lakhs).

7. Business Segment

The Company is primarily engaged in the business of cultivation, manufacture and sale of tea and is managed organisationally as a single unit. Accordingly, the Company is a single business segment company.

8. Information given in accordance with the requirement of Accounting Standard 18 on Related Party Disclosures prescribed under the Act : -

(a) List of Related Parties Where control exists:

- Subsidiaries :

Borelli Tea Holdings Limited (BTHL)

Phu Ben Tea Company Limited (PBTCL)

Rwenzori Tea Investments Limited (RTI)

McLeod Russel Uganda Limited (MRUL)

Olyana Holdings LLC (OLYANA)

Gisovu Tea Company Limited (GTCL) (w.e.f. 23rd February 2011)

McLeod Russel Middle East [MRME (DMCC)] (w.e.f. 9th May 2011)

Others:

- Associates :

D1 Williamson Magor Bio Fuel Limited (D1) Babcock Borsig Limited (BBL) (upto 28th March 2012)

9. In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority had raised a demand of Rs.5278 lakhs during the year 2009-10 on the Company on account of alleged non-deduction of tax at source and interest thereon pertaining to the transaction. The Company has challenged the said demand before the appropriate authorities and the matter is pending. Further, the Company has obtained a stay against the said demand from the Hon'ble High Court of Calcutta. The Company has deposited Rs. 700.00 lakhs (31st March 2011 – Rs. Nil) during the year with Income Tax Authority under protest (Refer Note 19). In any event, as per the related Share Purchase Agreement, Capital Gain tax or other tax, if any, relating to sale of shares etc. is to be borne by the seller and not the Company.

10. Intangible Assets under Development

This represents Computer Software (acquired) which is under development.

11. Salaries and Wages excludes Rs. 1080.81 lakhs (31st March 2011 - Rs. 1003.02 lakhs) and Stores and Spares consumed excludes Rs. 2532.97 lakhs (31st March 2011 - Rs. 2396.75 lakhs) debited to other accounts.

12. Items of Expenditure in the Profit and Loss Statement include reimbursements to and by the Company.

13. Exceptional Items comprise provision for diminution in carrying amount other than temporary Rs. 1500 lakhs (2010-11 – Rs. Nil) of long – term investments in respect of an associate of the Company and profit on disposal of investments Rs. 118.03 lakhs (2010-11 – Rs. Nil) in respect of another associate.

14. The financial statements for the year ended 31st March, 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 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

a) The above Cash Flow Statement has been prepared under the indirect method as set out in the Accounting Standard 3 on Cash Flow Statement prescribed under the Companies Act, 1956.

b) Also refer Note 53 to the Financial Statements.

c) Notes referred to above form an integral part of the Cash Flow Statement.

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Mar 31, 2011

1. Contingent Liabilities

1.1 Claims against the Company not acknowledged as debts :

31st March 2011 31st March 2010

Rs. Lakhs Rs. Lakhs

Sales Tax : 26.37 27.53

Electricity Dues 32.47 29.27

Assam Pollution Control Board 7.41 9.92

Provident Fund 68.43 68.43

Income Tax 79.49 84.59

Service Tax 75.48 -

Others 4.95 12.84

1.2 (a) Guarantees given on behalf of other companies to bank, Financial institutions etc. -

limit Rs. Nil (31st March 2010 - Rs. 1000.00 lakhs); Year end utilisation Rs.Nil (31st March 2010 - Rs. Nil)

(b) Guarantees given on behalf of a subsidiary - Rs. 11745.46 lakhs (31st March 2010 - Rs. 11935.94 lakhs); Year end utilisation Rs. 7938.19 lakhs (31st March 2010 - Rs. 10306.47 lakhs).

1.3 Bank Guarantees Rs. 83.28 lakhs (31st March 2010 - Rs. 89.04 lakhs)

1.4 Bills Discounted - Rs. 2445.65 lakhs (31st March 2010- Rs. 6452.41 lakhs)

2. TAXATION

2.1 Current Tax charge for the year has been reckoned after taking into account, benefit under Section 33AB of the Income Tax Act, 1961 (which are available on timely deposit of required amount with development bank).

3. Estimated Capital Commitment on account of contracts remaining to be executed and not provided for at the year-end is Rs. 1030.07 lakhs (31st March 2010 - Rs. 904.63 lakhs). Such commitment, net of advances, is Rs. 494.44 lakhs (31st March 2010 - Rs. 313.77 lakhs).

4. Advances include :-

Loan to directors Rs. 10.16 lakhs (31st March 2010 - Rs. 13.46 lakhs) [Maximum amount due during the year Rs. 13.46 lakhs (31st March 2010 - Rs. 16.76 lakhs)] being originally initiated as advances to employees in the books of Eveready Industries India Limited, taken over in terms of a Scheme of Arrangement in 2004-05.

5. Business Segment

The Company is primarily engaged in the business of cultivation, manufacture and sale of tea and is managed organisationally as a single unit. Accordingly, the Company is a single business segment company.

6. Information given in accordance with the requirement of Accounting Standard 18 on Related Party Disclosures prescribed under the Act: -

(A) List of Related Parties

Where control exists:

- Subsidiaries:

Borelli Tea Holdings Limited (BTHLJ

Phu Ben Tea Company Limited (PBTCL)

Rwenzori Tea Investments Limited (RTI)

McLeod Russel Uganda Limited (MRULJ formerly known as James Finlay (Uganda) Limited (JFUL)

Olyana Holdings LLC (OLYANA)

7. In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority had raised a demand of Rs.5278 lakhs during the year 2009-10 on the Company on account of alleged non- deduction of tax at source and interest thereon pertaining to the transaction. The Company has challenged the said demand before the appropriate authorities and the matter is pending. Further, the Company has obtained a stay against the said demand from the Honble High Court of Calcutta. In any event, as per the related Share Purchase Agreement, Capital Gain tax or other tax, if any, relating to sale of shares etc. is to be borne by the seller and not the Company.

b) Green Leaf plucked (being raw material consumed) were harvested in the Companys own estates as agricultural produce involving integrated activities of nursery, cultivation, growth etc., and utilised in the manufacture of tea and its value at the intermediate stage is not readily ascertainable.

8. Salaries, Wages and Bonus excludes Rs. 1003.02 lakhs (31st March 2010 - Rs. 891.51 lakhs) and Stores and Spares consumed excludes Rs. 2396.75 lakhs (31st March 2010 - Rs. 1927.23 lakhs) debited to other accounts.

9. Items of Expenditure in the Profit and Loss Account include reimbursements to and by the Company.

10. Previous years figures have been rearranged / regrouped wherever necessary to make comparable with current years figures.

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Mar 31, 2010

1. Contingent Liabilities

1.1 Claims against the Company not acknowledged as debts : -

31st March 2010 31st March 2009

Rs. Lakhs Rs. Lakhs

Sales Tax : 27.53 27.53

Electricity Dues : 29.27 29.27

Assam Pollution Control Board : 9.92 47.00

Provident Fund : 68.43

Income Tax : 84.59 124.62

Others : 12.84 1.83

1.2 (a) Guarantees given on behalf of other companies to bank, Financial institutions etc.limit Rs. 1000.00 lakhs (31st March 2009 - Rs. 9450.00 lakhs); Year end utilisation Rs. Nil (31st March 2009 - Rs. 2662.72 lakhs).

(b) Guarantees given on behalf of a subsidiary - Rs. 11935.94 lakhs (31st March 2009 - Rs. Nil); Year end utilisation Rs. 10306.47 lakhs (31st March 2009 - Rs. Nil).

1.3 Bank Guarantees Rs. 89.04 lakhs (31st March 2009 - Rs. 127.71 lakhs)

1.4 Bills Discounted - Rs. 6452.41 lakhs (31st March 2009- Rs. 2460.05 lakhs)

2. Estimated Capital Commitment on account of contracts remaining to be executed and not provided for at the year-end is Rs. 904.63 lakhs (31st March 2009 - Rs. 186.69 lakhs). Such commitment, net of advances, is Rs. 313.77 lakhs (31st March 2009 - Rs. 106.43 lakhs).

3. Advances include :-

Loan to directors Rs. 13.46 lakhs (31st March 2009 - Rs. 16.76 lakhs) [Maximum amount due during the year Rs. 16.76 lakhs (31st March 2009 - Rs. 20.06 lakhs)] being originally initiated as advances to employees in the books of Eveready Industries India Limited, taken over in terms of a Scheme of Arrangement in 2004-05.

4. Business Segment

The Company is primarily engaged in the business of cultivation, manufacture and sale of tea and is managed organisationally as a single unit. Accordingly, the Company is a single business segment company.

5. Information given in accordance with the requirement of Accounting Standard 18 on Related Party Disclosures prescribed under the Act : -

(A) List of Related Parties

Where control exists:

Subsidiaries :

Borelli Tea Holdings Limited (BTHL)

Phu Ben Tea Company Limited (PBTCL)

Rwenzori Tea Investments Limited (RTI) (acquired during the year by BTHL)

James Finlay (Uganda) Limited (JFUL) (acquired during the year by BTHL)

Olyana Holdings LLC (OLYANA) (acquired during the year by BTHL)

14. In connection with an overseas acquisition of a subsidiary in 2005, the Income Tax authority has raised a demand of Rs.5278 lakhs during the year on the Company on account of alleged non- deduction of tax at source and interest thereon pertaining to the transaction. The Company has challenged the said demand before the appropriate authorities and the matter is pending. Further, the Company has obtained a stay against the said demand from the Honble High Court of Calcutta. In any event, as per the related Share Purchase Agreement, Capital Gain tax or other tax, if any, relating to sale of shares etc. is to be borne by the seller and not the Company.

6. Items of Expenditure in the Profit and Loss Account include reimbursements to and by the Company.

7. Previous years figures have been rearranged / regrouped wherever necessary to make comparable with current years figures.