Notes to Accounts of Neelamalai Agro Industries Ltd.

Mar 31, 2025

3.11 Cash flow statement:

Cash flows are reported using the indirect method, whereby, profit before tax is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing and
financing activities.

3.12 Dividends:

Final Dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are
recorded as liability on the date of declaration by the Company’s Board of Directors.

3.13 Segment Reporting:

The Company identifies operating segments based on the internal reporting provided to the chief operating decision¬
maker.

The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors that makes strategic decisions.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment
revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their
relationship to the operating activities ofthe segment. The Company operates in a single Business segment namely Cultivation,
Manufacturing and Marketing of Tea. Accordingly, this is the only business segment to be reported and geographically
segment is considered as India and rest of the world.

As per records ofthe Company, including its register of shareholders/ members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

G. Equity shares movement during the 5 years preceding March 31, 2025
Equity shares extinguished on buy-back

The Company bought back 5,288 equity shares for an aggregate amount of Rs. 84.61 lakhs being 0.84% of the total paid up
equity share capital at Rs. 1,600 per equity share. The equity shares bought back were extinguished on March 19, 2021.

1. Capital Redemption Reserves - Capital Redemption Reserve was created for buy - back of shares and can be utilised for issuance
of fully paid up bonus shares.

2. General Reserve - General Reserve is created out of profits earned by the company by way of transfer from surplus in the
statement of profit and loss. The company can use the reserve for payment of dividend and issue of fully paid-up and not paid
up bonus shares.

3. Retained Earnings: Retained earnings are the profits that the company has earned till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders.

4. Equity investments through other comprehensive income: The fair value change of the equity instruments measured at fair
value through other comprehensive income is recognised in Equity instruments through other comprehensive income. Upon
derecognition, the cumulative fair value changes on the said instruments are not reclassified to statement of profit and loss.

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotions and
other relevant factors.

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality
of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan’s
liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan’s liability.

B. 2 Valuation inputs and relationship to fair value

''The fair value is determined based on valuation reports / recent transactions including potential transactions within a reasonable
period to the balance sheet date.

C. Fair value of Financial Instruments measured at amortised cost :

Due to the short-term nature of cash and cash equivalents and the short-term maturities of trade receivables, loans, other
financial liabilities and assets the management considers that the carrying amount of assets and liabilities recognised at amortised
cost in financial statements is approximate to their fair value.

The fair value of financial instruments as referred to in note (A) and (B) above have been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active
markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

NOTE 40

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The
main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations.
The Company’s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive
directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management
of these risks. The financial risk activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed by the senior management in accordance with the Company’s policies and risk objectives. All derivative
activities for risk management purposes are carried out by professionals who have the appropriate skills, experience and supervision.
It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.

(A) Market risk

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

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

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates
of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis
of hedge designations in place at 31 March 2025. The sensitivity analysis for equity price risk has been prepared on the basis
of the fair value of the equity investments carried as FVTPL (under current investments) and basis change in equity price.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post¬
retirement obligations; provisions; and the non-financial assets.

The following assumptions have been made in calculating the sensitivity analyses:

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

(d) Commodity price risk

The prices of agricultural commodities are subject to fluctuations due to various factors. In the ordinary course of
business, the company is exposed to commodity price risk to the extent its open sales are not balanced by inventory. The
company has in place in a risk management policy to manage such risk by having conscious limits on the sales committed
for future periods for which production is yet to be completed and inventory is in place.

(B) Credit risk

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

(a) Trade receivables

Customer credit risk is managed as per the Company’s established policy, procedures and control relating to customer
credit risk management. Credit limits are set with approvals on the basis of the defined policies. Outstanding customer
receivables are regularly monitored and exposures are kept within the credit limits fixed for each customer.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same
geographical region, or have economic features that would cause their ability to meet contractual obligations to be
similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of
the Company’s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to
focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed
accordingly.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large
number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation
is based on exchange losses historical data. The Company does not hold collateral as security. The Company evaluates the
concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and
industries and operate in largely independent markets.

(b) Financial instruments and cash deposits

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 Company’s maximum exposure to credit risk for the components of the balance sheet at 31 March 2025 and
31 March 2024 is the carrying amounts as mentioned in Notes.

CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves. The
primary objective of the Company’s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio,
which is net debt divided by fund attributable to Equity Shares Holders. The company includes within net debt, interest bearing
loans and borrowings less cash and short-term deposits, excluding discontinued operations.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and
31 March 2024.

NOTE 44

AUDIT TRAIL NOTE

The Company has implemented the new ERP system from 1st February 2024. The audit trail (edit logs) feature at both application

and database level are enabled and implemented since then.These audit trails were not tampered during this period and the logs are

also preserved. However, for legacy system as there was no audit trail enabled, question of preservation does not arise.

NOTE 45

OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company
to holding any benami property.

(ii) The company has searched transactions with Struck-off companies by comparing company’s counter parties with publicly
available database of struck of companies through a manual name search. Based on such a manual search, no party identified to
be reported in the financial statements.

(iii) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind
of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party)
with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities
identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

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

(vi) The Company has in respect of the investments made, complied with no of layers as defined under section 2(87) of the
Companies Act, 2013.

(vii) The Company has nothing to report on compliance with approved Scheme(s) ofArrangements.

(viii) The Company has not taken loans and borrowings from lenders (Other than banks and Financial Institutions).

(ix) The company has done registration of charges or satisfaction, if any with ROC within the statutory period during the year.

NOTE 47
DIVIDENDS

Dividends paid during the year 2024-25 represent final dividend of 500% declared for the financial year 2023-24 amounting to
Rs.311.03 lakhs.

The dividends declared by the Company are in Indian Rupees and are based on the profits available for distribution as reported in
the statutory financial statements of the Company. Subsequent to March 31, 2025, the Board of Directors of Company have
proposed a final dividend of Rs. 30/- per share (300%) in respect of financial year 2024-25. The proposal is subject to the approval
of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately Rs. 186.62 Lakhs.

NOTE 48

EXCEPTIONAL ITEM

During the year ended 31st March 2025, Rs.95 lakhs of provision towards employee benefits for past periods has been recognised
based on regulatory decisions and disclosed as exceptional item. (For year ended 31st March 2024, gain on sale of land of
Rs. 1,773.60 Lakhs has been recognised and disclosed as exceptional item.)

NOTE 49

Figures for the previous periods have been regrouped / reclassified to conform to the classification of the current period.

As per our Report of even date attached ^{For and on behalf of the Board of Directors}

For PKF Sridhar & Santhanam LLP Shanthi Thomas Ajit Thomas

^{Chartered Accountants} Executive Director Chairman

^Firm’^{s Re}g^{istration N}°. ^{003990S/S200018} DIN : 00567935 DIN : 00018691

S Narasimhan

Parm_er Deepak G. Prabhu S. Lakshmi Narasimhan

Place : Chennai Membership No. 206047 Chief Financial Officer ^Compan^{y Secret}ary

Date : 30.05.2025 UDIN: 225206047BMOJHH2147 Membership No. A35541

---

Mar 31, 2024

3.5 Foreign currency

Initial Recognition

On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Subsequent Recognition

As at the reporting date, non-monetary items which are carried at historical cost and denominated in a foreign currency are reported using the exchange rate at the date of the transaction. All non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were fair value measured.

Monetary items denominated in foreign currency and outstanding at the Balance Sheet date are converted at the year-end exchange rates and the resultant loss or gain, is recognised as income or expense in the statement of the profit and loss.

3.6 Fair value measurement

The Company measures financial instruments, such as, investments or derivatives at fair value at each balance sheet date on a portfolio basis.

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

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

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

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

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

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

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

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

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

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

This note summaries accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

- Quantitative disclosures of fair value measurement hierarchy

- Financial instruments (including those carried at amortised cost)

3.7 Revenue recognition:

Revenue is recognised on their accrual and when no significant uncertainty on measurability or collectability exists. Expenditure is accounted for on their accrual.

Sale of Goods:

Revenue from the sale of goods is recognised when the performance obligations towards customers have been met at an amount that reflects the consideration to which the company believes it is entitled to in exchange for the transfer of goods to customers i.e. Transaction price, net ofany sales returns and GST. Performance obligations are deemed to have been met when the control of goods has been transferred to the customer, depending on the individual terms of the contract of sale. Considering the general terms of sales of goods, there is no significant financing element included in the sales consideration.

3.8 Finance Income and expense

Finance income comprises of interest income on funds invested, dividend income and fair value gains on financial assets at fair value through profit or loss. Interest income is recognized using effective interest method. Dividend income is recognized in statement of profit and loss on date when the company’s right to receive payment is established, which in the case of quoted securities is the ex-dividend date.

Finance expense comprises of interest expense on loans and borrowings recognised using effective interest method, unwinding of discount on provision and fair value losses on financial asset through FVTPL that are recognized in the statement of profit and loss.

3.9 Taxation

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.

(i) Current tax:

Current Tax expenses are accounted in the same period to which the revenue and expenses relate. Provision for current income tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the applicable tax rates and the prevailing tax laws.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

(ii) Deferred tax:

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred Income tax arises from the initial recognition of goodwill, an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred income tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

Deferred tax liabilities are generally recognized for all taxable temporary differences.

The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred income tax asset to be utilised.

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 Balance Sheet date.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

Minimum Alternative Tax

Minimum Alternative Tax (“MAT”) credit is recognized as an asset only when and to the extent there is reasonable certainty that the Company will pay normal income tax during the specified period in which such credit can be set off under the income tax law. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a reasonable certainty to the effect that the Company will pay normal income tax during the specified period.

3.10 Cash flow statement:

Cash flows are reported using the indirect method, whereby, profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing and financing activities.

3.11 Dividends:

Final Dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as liability on the date of declaration by the Company’s Board of Directors.

The Company identifies operating segments based on the internal reporting provided to the chief operating decisionmaker.

The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities ofthe segment. The Company operates in a single Business segment namely Cultivation, Manufacturing and Marketing of Tea. Accordingly, this is the only business segment to be reported and geographically segment is considered as India and rest of the world.

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

B. 2 Valuation inputs and relationship to fair value

''The fair value is determined based on valuation reports / recent transactions including potential transactions within a reasonable period to the balance sheet date.

C. Fair value of Financial Instruments measured at amortised cost :

Due to the short-term nature of cash and cash equivalents and the short-term maturities of trade receivables, loans, other financial liabilities and assets the management considers that the carrying amount of assets and liabilities recognised at amortised cost in financial statements is approximate to their fair value.

The fair value of financial instruments as referred to in note (A) and (B) above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

NOTE 40

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed by the senior management in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by professionals who have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.

(A) Market risk

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

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

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at 31 March 2024. The sensitivity analysis for equity price risk has been prepared on the basis of the fair value of the equity investments carried as FVTPL (under current investments) and basis change in equity price.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other postretirement obligations; provisions; and the non-financial assets.

The following assumptions have been made in calculating the sensitivity analyses:

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

(d) Commodity price risk

The prices of agricultural commodities are subject to fluctuations due to various factors. In the ordinary course of business, the company is exposed to commodity price risk to the extent its open sales are not balanced by inventory. The company has in place in a risk management policy to manage such risk by having conscious limits on the sales committed for future periods for which production is yet to be completed and inventory is in place.

(B) Credit risk

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

(a) Trade receivables

Customer credit risk is managed as per the Company’s established policy, procedures and control relating to customer credit risk management. Credit limits are set with approvals on the basis of the defined policies. Outstanding customer receivables are regularly monitored and exposures are kept within the credit limits fixed for each customer.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

(b) Financial instruments and cash deposits

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 Company’s maximum exposure to credit risk for the components of the balance sheet at 31 March 2024 and 31 March 2023 is the carrying amounts as mentioned in Notes.

NOTE 41

CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves. The primary objective of the Company’s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light ofchanges in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by fund attributable to Equity Shares Holders. The company includes within net debt, interest bearing loans and borrowings less cash and short-term deposits, excluding discontinued operations.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023.

The company’s borrowing facilities comprising overdraft facility ofRs. 100 Lakhs against stocks, standing crops and other machineries in Katary and Sutton estates of the company along with fixed deposit of 25 Lakhs.

NOTE 44

AUDIT TRAIL NOTE

The Company is in the process of implementing the new ERP system from 1st February 2024. The audit trail (edit logs) feature

will be reviewed and implemented from the next financial year.

NOTE 45

OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company to holding any benami property.

(ii) The company has searched transactions with Struck-off companies by comparing company’s counter parties with publicly available database of struck of companies through a manual name search. Based on such a manual search, no party identified to be reported in the financial statements.

(iii) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

(vi) The Company has in respect of the investments made, complied with no of layers as defined under section 2(87) of the Companies Act, 2013.

(vii) The Company has nothing to report on compliance with approved Scheme(s) ofArrangements.

(viii) The Company has not taken loans and borrowings from lenders (Other than banks and Financial Institutions).

(ix) The company has done registration of charges or satisfaction, if any with ROC within the statutory period during the year.

NOTE 47 DIVIDENDS

Dividends paid during the year 2023-24 represent final dividend of300% declared for the financial year 2022-23 amounting to Rs.186.62 lakhs.

The dividends declared by the Company are in Indian Rupees and are based on the profits available for distribution as reported in the statutory financial statements of the Company. Subsequent to March 31, 2024, the Board of Directors of Company have proposed a final dividend of Rs. 50 per share (500%) in respect of financial year 2023-24. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately Rs. 311.03 Lakhs.

NOTE 48

EXCEPTIONAL ITEM

During the year ended 31st March 2024, the company has sold land and building for Rs.1,774.00 Lakhs and the gain of Rs. 1,773.60 Lakhs has been recognised and disclosed as exceptional item.

NOTE 49

Figures for the previous periods have been regrouped / reclassified to conform to the classification of the current period.

As per our Report of even date attached ^{For and on behalf of the Board of Directors}

For PKF Sridhar & Santhanam LLP Shanthi Thomas Ajit Thomas

^{Chartered Accountants} Executive Director Chairman

^Firm’^{s Re}g^{istration N}°. ^{003990S/S200018} DIN : 00567935 DIN : 00018691

T. V. Balasubramanian

Parm_er Deepak G. Prabhu S. Lakshmi Narasimhan

Place : Chennai Membership No. 027251 Chief Financial Officer ^Compan^{y Secret}ary

Date : 29.05.2024 UDIN: 24027251BKDHHJ2882 Membership No. A35541

---

Mar 31, 2018

NOTES

1. GENERAL INFORMATION

Neelamalai Agro Industries Limited was incorporated on 21st April 1943 under the Indian Companies Act 1913. The Company is in Tea Plantation Business of cultivating Tea, its manufacturing and sale,both domestic and export. Its Registered Office and Principal place of business is at Katary Estate, Katary Post, Coonoor, Nilgiris, Tamil Nadu — 643213. The company is listed on the Bombay Stock Exchange (BSE Ltd.)

2. Critical judgements & Estimates in applying accounting policies

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent assets and contingent liabilities at the date of financial statements, income and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods which are affected.

Application of accounting policies that require critical accounting estimates and assumptions having the most significant effect on the amounts recognized in financial statements are as follows:

- Useful lives of property, plant and equipment and intangible assets:

The Company has estimated useful life of each class of assets based on the nature of assets, the estimated usage of the asset, the operating condition of the asset, past history of replacement, anticipated technological changes, etc. The Company reviews the carrying amount of property, plant and equipment and Intangible assets at the Balance Sheet date. This reassessment may result in change in depreciation expense in future periods.

- Taxation:

The company is engaged in the agricultural activities and also subject to Tax liability under CIT & MAT Provisions. Significant judgement is involved in determining the tax liability for the company which includes interpretation of tax legislation, developments in case law and the potential outcomes of tax audits and appeals which may be subject to significant uncertainty. Also, there are many transactions and calculation during the ordinary course of business for which the ultimate tax determination is uncertain. Therefore the actual results may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax assets, cash tax settlements and therefore the tax charge in the statement of profit or loss. Further judgement is involved in determining the deferred tax position on the balance sheet date.

- Defined benefit plans:

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases ,attrition rate and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each Balance Sheet date.

- Provisions & Contingencies:

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

From time to time, the Company is subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a payment will be made and the amount of the loss can be reasonably estimated. Significant judgment is made when evaluating, among other factors, the probability of unfavorable outcome and the ability to make a reasonable estimate ofthe amount of potential loss. Litigation provisions are reviewed at each accounting period and revisions made for the changes in facts and circumstances.

- FairValue of financial instruments and biological assets:

The fair value of financial instruments that are unlisted and not traded in active market and biological assets (including agricultural produce) is determined at value assessed based on recent transaction entered into with third party or based on the valuation done by the external appraisers. Where it is not possible to determine a reliable estimate of fair value, the carrying value is determined based on acquisition cost.

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors. The above information has been certified by the actuary and has been relied upon by the Auditors.

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

NOTE NO. 3

RELATED PARTY TRANSACTIONS

A Details of related parties:

Directors who held the office during the year:

Mr. Ajit Thomas , Chairman

Mrs. Shanthi Thomas , Executive Director

Mr. A. D. Bopana

Mr. F. S. Mohan Eddy

Mr. Raghu Bhale Rao*

Mr. W. D. Nelson*

*For Part of the Year

Key Management Personnel (KMP)

Mr. T M Hari Kumar, Company Secretary & CFO

Associates & Joint Venture of the company :

AVT Natural Products Limited

Midland Corporate Advisory Services Pvt. Ltd.

AVT McCormick Ingredients Private Limited

Entities in which Directors are interested with whom transactions were carried out during the year:

A V Thomas & Co. Ltd.

The Midland Rubber & Produce Co. Ltd.

The Nelliampathy Tea & Produce Co. Ltd.

NOTE NO. 4 (a) GUARANTEE GIVEN BY THE COMPANY

Bank Guarantee of INR 809.58 lakhs (PY - INR 809.58 lakhs) have been given by the company to various authorities & other parties. These guarantees were issued against the margin money kept with bank of INR 86.35 lakhs (PY - INR 81.25 lakhs).

NOTE NO. 4 (b) OTHER REGULATORY MATTERS Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006:

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis ofinformation collected by the Management. This has been relied upon by the auditors.

The Company has applied the following exemptions :

a. Property, plant and equipment — Deemed Cost

Ind AS 101 permits a first time adoption to elect to continue with the carrying value for all of its property, plant and equipment as recognised 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. This exemption can also be used for investment property covered by Ind AS 40 ‘Investment Properties’. Accordingly, the Company has elected to measure all of its property, plant and equipment and investment property at the carrying value, based on Indian GAAP

b. Measurement of financial assets and financial liabilities at fair value : Under Previous GAAP, all assets and liabilities that are now classified under the head financial assets and financial liabilities were carried at cost. Under Ind AS, however, certain financial assets and financial liabilities are subsequently measured at Fair Value which involves use of Fair Value Measurement hierarchy at the date of transition to Ind AS.

c. Fair valuation of Investments through profit and loss account: Under the Previous GAAP, short term investments in shares & mutual funds were measured at cost less diminution in value. Under the Ind AS, current investments are measured at fair value as at the transition date, the Company has made irrevocable choice to account for these investments at fair value through Profit & Loss (FVTPL).

d. Fair value changes with respect to investments in equity instruments designated at FVOCI (grouped under non-current investments) have been recognised in the other comprehensive income for the year ended 31st March 2017.

e. Under the previous GAAP there were no specific guidelines for accounting of standing crop. Under Ind AS 41, standing crop is required to be valued at fair value. The standing crop of tea as on a date is calculated based on the estimated yield applying a crop index. The crop index is based on the plucking interval recommended and the estimated number of days since the previous round of harvesting. Based on the above method quantity of standing crop is arrived. The derived quantity is multiplied by the fair value as per Ind AS 113.

f. Deferred Tax: Under Ind AS, Deferred tax has been recalculated in respect of above changes and the deferred tax impact as at the transition date has been recognised in opening reserves and for the year ended March 31, 2017.

g. Actuarial gain/ loss on defined benefit plans: Under Ind AS, re-measurements i.e. actuarial gain and losses and the return on plan assets, excluding amounts included in the net interest expenses on the net defined benefit liabilities are recognised in the other comprehensive income instead of Profit & Loss under previous GAAP all these re-measurements were forming part of the profit & loss for the year. There is no impact on the total equity. The current tax effect has been given adjustment to that extent.

h. Figures under previous GAAP have been regrouped/reclassified where ever required.

5.1 Reconciliation of total equity as at 31st March 2017 and 1st April 2016

a. Actuarial gain/ loss on defined benefit plans: Under Ind AS, re-measurements i.e. actuarial gain and losses and the return on plan assets, excluding amounts included in the net interest expenses on the net defined benefit liabilities are recognised in the other comprehensive income instead of Profit & Loss under previous GAAP, all these re-measurements were forming part of the profit & loss for the year. There is no impact on the total equity.

b. Under Ind AS, forex gains have been regrouped under Other Income from Revenue from Operations.

c. Current investments in the nature of shares and mutual funds have been fair valued and the gains have been considered in the profit & loss account under Other Income.

d. Fair value changes in equity instuments designated as FVTOCI have been recognised through the Other Comprehensive Income.

e. The tax effect on a, c and d have been adjusted against profit & loss / OCI as the case may be.

f. The company uses the tea leaves plucked from its estates for its captive use in the manufacture of tea. Under the previous GAAP, the cost of cultivation of tea leaves were taken as the cost of green leaf in the valuation of black tea. As per Ind AS 41, agricultural produce harvested from an entity’s biological asset is required to be measured at fair value less cost to sell at the point of harvest and such measurement is the cost when applying Ind AS 2 Inventories.

g. Under the previous GAAP, there were no specific guidelines for accounting of standing crop. Under Ind AS 41, standing crop is required to be valued at fair value. The standing crop of tea as on a date is calculated based on the estimated yield applying a crop index. The crop index is based on the plucking interval recommended and the estimated number of days since the previous round of harvesting. Based on the above method quantity of standing crop is arrived. The derived quantity is multiplied by the fair value as per Ind AS 113.

h. Figures under previous GAAP have been regrouped/reclassified where ever required.

NOTE NO. 6 FAIR VALUE MEASUREMENT Financial Instruments by category

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

B.2 Valuation inputs and relationship to fair value

The fair value is determined based on valuation reports / recent transactions including potential transactions within a reasonable period to the balance sheet date.

C. Fair value of Financial Instruments measured at amortised cost :

Due to the short-term nature ofcash and cash equivalents and the short-term maturities oftrade receivables, loans, liabilities,other laibilities and assets the management considers that the carrying amount of assets and liabilities.

The fair value of financial instruments as referred to in note (A) above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

D. Valuation inputs and relationship to fair value

There are no material level 3 fair value measurements in respect of the financial assets and liabilities of the company.

NOTE NO. 7

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and toprovide guarantees to support its operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed by the senior management in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by professionals who have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.

(A) Market risk

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

The sensitivity analysis in the following sections relate to the position as at 31 March 2018 and 31 March 2017.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at 31 March 2018. The sensitivity analysis for equity price risk has been prepared on the basis of the fair value of the equity investments carried as FVTPL (under current investments) and basis change in equity price.

The analysis exclude the impact ofmovements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets.

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

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2018 and 31 March 2017.

(a) Interest rate risk

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

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by using foreign currency forward contracts.

When a derivative is entered into for the purpose of being ahedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.

(2) Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities including non- designated foreign currency derivatives. The impact on the Company’s pre-tax equity is due to changes in the fair value of forward exchange contracts designated as cash flow hedges and net investment hedges. The Company’s exposure to foreign currency changes for all other currencies is not material.

(c) Equity price risk

The company carries a significant amount of investments held as FVTPL (under current investments) which are affected by swings in the equity price in the market. The risk of equity price changes are managed by the company by closely monitoring the market position and accodingly determining the entry and exit into the markets from time to time and also by having a diversified portfolio of investments.

(d) Commodity price risk

The prices ofagricultural commodities are subject to fluctuations due to various factors. In the ordinary course ofbusiness, the company is exposed to commodity price risk to the extent its open sales are not balanced by inventory. The company has in place in a risk management policy to manange such risk by having conscious limits on the sales committed for future periods for which production is yet to be completed and inventiory in place.

(B) Credit risk

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

(a) Trade receivables

Customer credit risk is managed as per the Company’s established policy, procedures and control relating to customer credit risk management. Credit limits are set with approvals on the basis of the defined policies. Outstanding customer receivables are regularly monitored and exposures are kept with in the credit limits fixed for each customer.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(b) Financial instruments and cash deposits

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 counter parties and within credit limits assigned to each counter party.

The Company’s maximum exposure to credit risk for the components of the balancesheet at 31 March 2018 and 31 March 2017 is the carrying amounts as mentioned in Notes.

(C) Liquidity risk

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank over drafts and bank loans. The Company assessed the concentration of risk with respect tore financing its debt and concluded it to below. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

NOTE NO. 8 CAPITAL MANAGEMENT

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by fund attributable to Equity Shares Holders. The company includes within net debt, interest bearing loans and borrowings less cash and short-term deposits, excluding discontinued operations.

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

The company’s borrowing facilities comprising cash credit facility of Rs.275 Lakhs - Cash credit & Export Packing Credit in foreign currency which is secured by hypothecation of stock-in-trade, standing crops book debts, vehicles and also equitable mortgage of Katary Estate with Buildings thereon.

NOTE NO. 9 DIVIDENDS

Dividends paid during the year 2017-18 represent Final Dividend of 20% declared in the financial year 2016-17 (Rs.151.02 lakhs inclusive of DDT).

The dividends declared by Neelamalai Agro Industries Limited are in Indian Rupees and are based on the profits available for distribution as reported in the statutory financial statements of Neelamalai Agro Industries Limited. Subsequent to March 31, 2018, the Board of Directors of Neelamalai Agro Industries Limited have proposed a dividend of Rs.20 per share (200 percent) in respect of financial year 2017-18. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately INR Rs.151.02 lakhs, inclusive ofcorporate dividend tax.

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Mar 31, 2017

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognized.

NOTE: 1

EXIT OFFER FROM DISSEMINATION BOARD OF NSE

The Board of Directors the Company in its meeting held on 10 February 2017 has decided to participate as promoter in the Exit Offer as per SEBI Circular Number SEBI/HO/MRD/DSA/CIR/P/2016/110 dated October 10, 2016 of certain Group Companies namely A. V. Thomas & Co. Ltd., The Midland Rubber & Produce Co. Ltd and The Nelliampathy Tea & Produce Co. Ltd., The cost incurred till 31-March-2017 towards the same will be capitalized along with the purchase of shares. The cost till 31-March-2017 amounts to Rs. 6, 85,868/- which has been shown under the head "Short Term Loans and Advances". Further the company is maintaining a margin money deposit of Rs. 81, 25,303/- for the said purpose. In addition to that company has given a bank guarantee for Rs. 8, 09, 58,400/- to National Stock Exchange of India Ltd.

NOTE: 2

DISCLOSURE ON SPECIFIED BANK NOTES (SBNs)

During the year, the company had specified bank notes or other denomination note as defined in the MCA notification GSR 308 (E) dated March 31, 2017 on the details of Specified Bank Notes (SBNs) held and transacted during the period from 8th November, 2016 to 30th December, 2016, the denomination wise SBNs and other notes as per the said notification is given below.

* For the purpose of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance. Department of Economic Affairs number SO 340E, dated the 8th November, 2016.

EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company''s defined benefit plan:

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

i) Defined Contribution Plans:

The Company makes contribution towards employees'' provident fund, family pension fund, super annotation fund and employees'' state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 97, 51,980/- as expense towards contributions to these plans.

NOTE : 34
RELATED PARTY TRANSACTIONS
Following associate companies are related to the Company
on account of common control through Constitution of
Board / Shareholdings
- A. V. Thomas & Co. Ltd.	- AVT Holdings Private Ltd.
- A. V. Thomas International Ltd.	- A. V. Thomas Leather and Allied Products Pvt. Ltd.
- L. J. International Ltd.	- A. V. Thomas Exports Ltd.
- A. V. Thomas Investments Company Ltd.	- Midland Latex Products Ltd.
- The Nelliampathy Tea & Produce Co. Ltd.	- Sermatech Private Ltd.
. - The Midland Rubber & Produce Co. Ltd.	- Aspera Logistics Private Ltd.
- A V T Natural Products Ltd.	- Midland Corporate Advisory Services (P) Ltd.
- AVT McCormick Ingredients Private Ltd.	- AVT Gavia Foods Private Ltd.
- J. Thomas Educational & Benevolent Trust	- Midland Charitable Trust
- AVT Tea Service North America LLC, USA	- AVT Tea Services Ltd. UK
- Madura Micro Finance Ltd.
Key Managment Personnel :	Mr. Ajit Thomas, Chairman
	Mrs. Shanthi Thomas, Executive Director
	Mr. T. M. Harikumar, Company Secretary & CFO

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Mar 31, 2016

NOTE : 1

SEGMENT REPORTING

The Company’s operations relate only to Plantation Crops in the domestic as well as export markets and accordingly primary segment reporting disclosure for business segments, as envisaged in Accounting Standard 17 on “Segment Reporting (AS 17)” issued by The Institute of Chartered Accountants of India, are not applicable. The Company’s operations relating to Secondary segment reporting has been confined to sales in India and export outside India.

Fixed Assets used in the Company’s business and liabilities contracted in respect of its sole manufacturing facilities are not identifiable in line with the following reportable segments as the fixed assets and liabilities contracted are used interchangeably between two segments. Accordingly only figures for debtors have been given Secondary Segment Reporting

NOTE : 2

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognized.

NOTE : 3. EMPLOYEE BENEFITS

4. Defined Benefit Plans

5. Description of the Company’s defined benefit plan :

6. Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

7. Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

8. Defined Contribution Plans:

The Company makes contribution towards employees’ provident fund, family pension fund, super annuation fund and employees’ state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 89,58,897/- as expense towards contributions to these plans.

Note : 9. Previous Year’s figures have been re-grouped wherever necessary

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Mar 31, 2015

NOTE:1

DUE TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Company, the Principal amount due to Micro and Small enterprises as on 31.03.2015 is Nil (Previous year Rs. Nil). There are no overdue principal amounts and therefore no interest is paid or payable.

Year ended Year ended 31.03.2015 31.03.2014 Rs. Rs.

NOTE : 2

CONTINGENT LIABILITY

Contracts remaining to be executed on Capital Account --- ---

NOTE : 3

SEGMENT REPORTING

The Company's operations relate only to Plantation Crops in the domestic as well as export markets and accordingly primary segment reporting disclosure for business segments, as envisaged in Accounting Standard 17 on "Segment Reporting (AS 17)" issued by The Institute of Chartered Accountants of India, are not applicable. The Company's operations relating to Secondary segment reporting has been confined to sales in India and export outside India.

Fixed Assets used in the Company's business and liabilities contracted in repect of its sole manufacturing facilities are not identifiable in line with the following reportable segments as the fixed assets and liabilities contracted are used interchangeably between two segments. Accordingly only figures for debtors have been given Secondary Segment Reporting

NOTE : 4

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognised.

NOTE : 5

ACCOUNTING FOR TAXES ON INCOME

The company has adopted the useful life of Fixed Assets Prescribed under Part C of schedule II of the Companies Act 2013 for providing depreciation from 1st April 2014. As a result of this depreciation for the year ended 31.03.2015 is higher by Rs. 29,99,247/- with consequential effect on statement of profit and loss before tax by this amount.

For the Tangible Fixed Assets that had completed useful life as on 01.04.2014, the carrying amount of Rs. 2,45,651/- has been adjusted against the opening balance of retained earings as per Note 7 of Part C of Schedule II of the Companies Act 2013

NOTE : 6

EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company's defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

Note : 7 Previous Year's figures have been re-grouped wherever necessary

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Mar 31, 2014

NOTE : 1

DUE TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Company, the Principal amount due to Micro and Small enterprises as on 31.03.2014 is Nil (Previous year Rs. Nil). There are no overdue principal amounts and therefore no interest is paid or payable.

NOTE : 2

CONTINGENT LIABILITY

Contracts remaining to be executed on Capital Account - 15,52,315

NOTE : 3

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognised.

NOTE : 4 EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company''s defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

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

The Company expects to fund Rs. 49/- lakhs towards it Gratuity Plan during the year 2014 - 2015.

6. i) Defined Contribution Plans:

The Company makes contribution towards employees'' provident fund, family pension fund, super annuation fund and employees'' state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognised Rs. 76,04,137/- as expense towards contributions to these plans.

Note

7. Previous Year''s figures have been re-grouped wherever necessary

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Mar 31, 2013

NOTE : 1

CONTINGENT LIABILITY

Contracts remaining to be executed on Capital Account 15,52,315 Nil

NOTE : 2 SEGMENT REPORTING

The Company''s operations relate only to Plantation Crops in the domestic as well as export market and accordingly primary segment reporting disclosure for business segments, as envisaged in Accounting Standard 17 on "Segment Reporting (AS 17)" issued by The Institute of Chartered Accountants of India, are not applicable.

The Company''s operations relating to Secondary segment reporting has been confined to sales in India and export outside India.

Fixed Assets used in the Company''s business and liabilities contracted in repect of its sole manufacturing facilities are not identifiable in line with the following reportable segments as the fixed assets and liabilities contracted are used interchangeably between two segments. Accordingly only figures for debtors have been given

NOTE : 3

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognised.

NOTE : 4 EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company''s defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

The Company expects to fund Rs. 82/- lakhs towards it Gratuity Plan during the year 2013 - 2014.

ii) Defined Contribution Plans:

The Company makes contribution towards employees'' provident fund, family pension fund, super annuation fund and employees'' state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognised Rs. 54,45,050/- as expense towards contributions to these plans.

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Mar 31, 2012

NOTE : 1 DUE TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Company, the Principal amount due to Micro and Small enterprises as on 31.03.2012 is Nil (Previous year Rs. Nil). There are no overdue principal amounts and therefore no interest is paid or payable.

NOTE : 2 SEGMENT REPORTING

The Companys operations relate only to Plantation Crops in the domestic as well as export market and accordingly primary segment reporting disclosure for business segments, as envisaged in Accounting Standard 17 on “Segment Reporting (AS 17)” issued by The Institute of Chartered Accountants of India, are not applicable.

The Companys operations relating to Secondary segment reporting has been confined to sales in India and export outside India.

Fixed Assets used in the Companys business and liabilities contracted in repent of its sole manufacturing facilities are not identifiable in line with the following reportable segments as the fixed assets and liabilities contracted are used interchangeably between two segments. Accordingly only figures for debtors have been given

Secondary Segment Reporting

NOTE : 3

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognized.

NOTE : 4 EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Companys defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

ii) Defined Contribution Plans:

The Company makes contribution towards employees provident fund, family pension fund, super annotation fund and employees state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 50,45,807/- as expense towards contributions to these plans.

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Mar 31, 2011

1. CONTINGENT LIABILITY

Claims against the company not acknowledged as debts Nil 5,28,000

2. TAXES ON INCOME

The impact of deferred tax on income for the year is considered not material and hence not recognised.

3. EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company's defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encahsment scheme for its employees.

ii) Defined Contribution Plans:

The Company makes contribution towards employees' provident fund, family pension fund, super annuation fund and employees' state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognised Rs. 40,60,462/- as expense towards contributions to these plans.

4. RELATED PARTY TRANSACTIONS

Following associate companies are related to the Company on account of common control through Constitution of Board / Shareholdings

- A. V. Thomas & Company Ltd. - Midland Latex Products Ltd.

- A. V. Thomas International - Sermatech Private Ltd. Ltd.

- L. J. International Ltd. - Midland Corporate Advisory Services Pvt. Ltd. - A. V. Thomas Investments (Formerly ST Holding Private Ltd. Company Ltd.

- The Midland Rubber & Produce - AVT Natural Pte Ltd. Co. Ltd.

- The Nelliampathy Tea & - Heilongjiang AVT Bio-Products Ltd. Produce Co. Ltd.

- A V T Natural Products Ltd. - (Formerly Tonghe AVT Natural Ltd.)

- Ajit Thomas Holdings Private - AVT Gavia Foods Private Ltd.

- A. V. Thomas Exports Ltd. - J. Thomas Educational & Benevolent Limited Trust

- AVT McCormick Ingredients - Midland Natural Pte. Ltd.

- Teleflex Medical Private - Midland Charitable Trust Ltd.

- A. V. Thomas Leather and - AVT Infotech Allied Products Pvt.Ltd. Private Ltd.

Key Managment Personnel: Mr. Ajit Thomas, Chairman Mr. S. Rajasekar, Director

5. Previous Year's figures have been re-grouped wherever necessary

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Mar 31, 2010

1. DUE TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Company, the principal amount due to Micro and Small Enterprises as on 31.03.2010 is Nil. There are no overdue principal amounts and therefore no interest is paid or payable.

2. CONTINGENT LIABILITY Year ended Year ended 31.03.2010 31.03.2009

Claims against the company not acknowledged as debts 5,28,000 5,28,000

3. TAXES ON INCOME

The impact of deferred tax on income for the year is considered" not material and hence not recognised.

4. EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Companys defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumps 1m payment to vested employees at reurement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encahsment scheme for its employees.

5. Previous Years figures have been re-grouped wherever necessary