Notes to Accounts of The Peria Karamalai Tea & Produce Company Ltd.

Mar 31, 2025

21. Provisions and Contingencies

Provisions: Provisions are recognised when there is a present obligation or constructive obligation as a result
of a past event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of the time
value of money and the risks specific to the liability

Contingent Liabilities: Contingent liabilities are disclosed 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 a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate
of the amount cannot be made.

22. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

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

23. Segment Reporting

Segments are identified based on the manner in which the Company''s Chief Operating Decision Maker (''CODM'')
decides about resource allocation and reviews performance. Segment results that are reported to the CODM
include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment
and intangible assets other than goodwill.

The CODM (i.e Managing Director of the Company), who is responsible for allocating resources and assessing
performance of the operating segments.

24. Dividend to Shareholders

Final dividend distributed to equity shareholders is recognised in the period in which it is approved by the
members of the Company in the Annual General Meeting. Interim dividend is recognised when approved by the
Board of Directors at the Board meeting.

Dividend distributed (including interim dividend) is recognised in the Statement of changes in Equity.

C. Other Notes to Financial Statements

1. Transition to IND AS 116

Effective April 1, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to its lease contracts
existing on April 1,2019 using the modified retrospective approach under which the ROU Asset is measured at an
amount equal to lease liability, which in turn is measured based on the remaining lease payments. Consequently,
the Company recorded the lease liability at the present value of the lease payments discounted at the incremental
borrowing rate. The incremental borrowing rate applied is 9%.

Rental Expenses for short term leases recognised in the statement of profit and loss for the year ended
31.03.2025 is Rs.27.64 Lakhs (Previous year Rs. 31.44 lakhs.)

2. Contingent Liability and commitments to the extent not provided for:

Claims against the company not acknowledged as debts:

(i) Indirect tax matters:

The Company has obtained a stay of proceedings from the Honourable High Court of Madras on 24th
March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export
sales effected through auction centres. The matter is pending and is in common with the other tea planting
companies.

(ii) GST Matters:

During the year company has received a notice of show cause from GST department showing discrepancies
under few clauses with regard to input tax credit relating to financial year 2018-19 & raised a tax demand of
Rs 257.66 lakhs, excluding interest and penalty. The Company has preferred an appeal after a pre- deposit
of 10% of the tax demand Rs 25.77 lakhs. The company is of the view that the case is likely to be disposed
of in its favour and hence no provision is considered necessary therefor.

(iii) Income Tax Matters:

a) Tax assessments have been completed up to Assessment year 2023-24.

b) Disputed tax dues of Rs.20.82 lakhs pertaining to the Assessment year 2017-18 was appealed before
CIT (Appeals), Coimbatore, which was decided against the company. The Company has filed an appeal
with ITAT against the order of CIT (Appeals). ITAT allowed the appeal and ITAT directed to submit the
necessary papers and company in the process of submission of papers with Assessing Officer and the
company is of the view that the case is likely to be disposed of in its favour and hence no provision is
considered necessary therefor.

(iii) Labour Laws / Claims:

Labour disputes under adjudication relating to some workers - amount not ascertainable.

The Company''s pending litigations comprise of claims against the Company by employees and pertaining to
proceedings pending with various authorities/forums with respect to direct tax, indirect tax and others. The
Company has reviewed all its pending litigations and proceedings and it has been disclosed as contingent
liabilities since the company is of the view that the case is likely to be disposed of in its favour and hence no
provision is considered necessary therefor. The Company does not expect the outcome of these proceedings
to have a material adverse effect on its standalone financial statements.

6. Details of Dividend proposed and paid

Dividend for the year ended 31.03.2024 paid Re.1.00 per share : Rs.30.96 lakhs

Tax Deducted thereon : Rs.2.36 lakhs

In respect of current year, the Directors proposed Dividend of Re.1/- per share on equity shares of face value
Rs.10 each on 26.05.2025.

In terms of Sections 124 and 125 of the Companies Act, 2013, (“Act”) unclaimed or unpaid dividend relating to the
financial year 2016-17 is due for remittance to the Investor Education and Protection Fund (“IEPF”) established
by the Central Government.

Further, pursuant to Section 124(6) of the Act, read with IEPF Authority (Accounting, Audit, Transfer and Refund)
Rules, 2016, an amount of Rs 220769/- pertaining to financial year 2016-17 which remained unclaimed for a
period of 7 years have been transferred to the credit of demat account identified by the IEPF Authority during the
year under review.

For the following years, amount not transferred to the Investor Education and Protection Fund (“IEPF”) established
by the Central Government due to Pending court cases against the claim amount. The details are given below

FY 2009-10 Rs 7568/-, FY 2010-11 Rs 8820/-, FY 2011-12 Rs 3540/-, FY 2012-13 Rs 1416/-, FY 2013-14
Rs 1062/-, FY 2014-15 Rs 532, FY 2015-16 Rs 532, FY 2016-17 Rs 708/-

7. Employee Benefits:

a) Defined Contribution Plan:

The Company makes contribution towards employees'' provident fund and superannuation fund. 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.237.17 lakhs (Previous year Rs.198.45 lakhs) as expense towards
contribution to the Provident Fund.

The liability towards superannuation fund for the year ended 31st March 2025 amounting to Rs19.86 lakhs
(Previous year Rs.19.68 lakhs) has been charged to Statement of Profit and Loss.

The leave encashment for the year ended 31st March 2025 amounting to Rs.26.88 lakhs (previous year
Rs. 19.75 lakhs) has been charged to Statement of Profit and Loss and the net liability as on 31.03.2025 is
Rs.41.23 lakhs (previous year - Rs.43.14 lakhs).

I. Risk Exposure:

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

i. Interest rates risk: The defined benefit obligation calculated uses a discount rate based on government
bonds. If bond''s yield falls, the defined benefit obligation will tend to increase.

ii. Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

iii. Demographic risk: The risk of volatility of results due to unexpected nature of decrements that include
mortality attrition, disability and retirement. The effect of these decrements on the DBO depends upon the
combination of salary increase, discount rate and vesting criteria and therefore not very straightforward.
It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring
employees will be less compared to long service employees.

iv. Asset Liability mismatch: This will come into play unless the funds are invested in a term of the assets
replicating the term of the liability.

J. Expected contributions to the plan:

Expected contributions to the plan for the next annual reporting period is Rs. 126.64 lakhs.

Level 2 - Directly or indirectly observable market inputs, other than Level 1 inputs and
Level 3 - Inputs which are not based on observable market data

• Carrying amounts of trade receivables and trade payables, cash and cash equivalents, other financial assets
& other financial liabilities (current) are considered to be the same as their fair values due to their short-term
nature and categorized as level 3 hierarchies.

9. Financial risk management:

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

i. Credit risk:

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
Company is exposed to credit risk from its operating activities (primarily Trade Receivables) and from its
investing activities (primarily Deposits with Banks, Loans and advances to Corporates and Investments in
Shares and Mutual Funds).

Credit risk from balances with banks, term deposits, loans, investments are managed by Company''s finance
department.

Trade Receivables are typically unsecured and are derived from revenue earned from customers. Customer
credit risk is managed as per the Company''s policy and procedures which involve credit approvals,
establishing credit limits and continuously monitoring the credit worthiness of customers to which the
Company grants credit terms in the normal course of business. Outstanding customer receivables are
regularly monitored.

The Company''s maximum exposure to credit risk for the components of the Balance Sheet as of 31st March,
2025 and 31st March, 2024 is the carrying amounts as disclosed in Note 9.

ii. Market risk:

Market risk is the risk that changes in market prices - such as commodity prices, interest rates and equity
prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return. Further, the company is not exposed to any foreign currency exchange rate risk
which has an impact on the Income statement and Equity as it does not have transaction references with
other currencies.

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 interest rate risk can also impact the provision for
retirement benefits.

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 fixed rate borrowings are carried at amortised cost. They are therefore not subject to
interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of
changes in market interest rates.

b. Price Risk

Securities price risk is the risk that the fair value of a financial instruments will fluctuate due to changes
in market traded prices. The Company invests its surplus funds in various debt instruments and equity
instruments. These investments are susceptible to market price risk, mainly arising from changes in the
interest rates or market yields which may impact the return and value of such investments. To manage
its price risk arising from investments in mutual funds, the Company diversifies its portfolio.

c. 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, and fluctuation of selling price of finished goods
(tea) due to increase/(decrease) in the supply/availability. The Company manages these price fluctuations
by actively managing the sourcing of tea, and alternate blending strategies without impacting the quality
of the blend.

iii. Liquidity risk:

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain
optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its
liquidity position and maintains adequate sources of financing.

The tables below analyse the company''s financial liabilities into relevant maturity groupings based on their
contractual maturities. The company has only all non-derivative financial liabilities.

The amounts disclosed in the table are contracted undiscounted cash flows. Balances due within 12 months
equal their carrying balances as the impact of discounting is not significant. Balances due beyond 12 months
are carried at amortised cost.

(ii) Relative of KMP (Managing Director)

Ms. Sheetal Bangur
Shri. Yogesh Bangur

(iii) Enterprises over which KMP or Relatives of KMP exercises control or significant influence:

M.B.Commercial Company Ltd (Refer Note 27)

Amalgamated Development Ltd (Refer Note 27)

Maharaja Shree Umaid Mills Ltd
Placid Limited

The Marwar Textiles (Agency) Pvt.Ltd

Navjyoti Commodity Management Services Ltd

Samay Industries Limited

The General Investment Co. Ltd

Kiran Vyapar Limited

Soul Beauty & Wellness Centre LLP

Mugneeram Ramcoowar Bangur Charitable & Religious Co.

Shree Rama Vaikunth Trust
Shree Krishna Agency Ltd

LNB Realty Private Limited (formerly LNB Realty LLP)

Sidhidata Tradecomm Ltd
IOTA Mtech Ltd

LNB Renewable Energy Limited
LNB Group Foundation

(v) Post-Employment benefit Plans:

The Gratuity Fund of The Peria Karamalai Tea & Produce Company Limited

17. Disclosure on Crypto or virtual Currency:

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

18. Details of Benami property:

No proceedings have been initiated or are pending against the Company for holding any Benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

19. Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

20 Utilisation of borrowed funds and share premium:

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

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

b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

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

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

b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

21 Valuation of Property, Plant & Equipment, intangible asset and investment property:

The Company has not revalued its property, plant and equipment (including Right of Use Assets) or intangible
assets or both during the current or previous year

22 Wilful Defaulter:

The Company had not been declared as a wilful defaulter by any bank or financial institution or other lender
(as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.

23 The Company does not have Charges or Satisfaction which is yet to be registered with Registrar of
Companies(ROC) beyond the statutory period.

24 Audit Trail

The Company uses accounting software "Tally Prime" at Head office and accounting cum Payroll application
software "Plantex" at Estate for maintaining its books of accounts for the financial year ended March 31, 2025
which has a feature of recording audit trail (edit log) facility

26 Expenditure in Foreign Currency

During the year company incurred Rs. 31.08 Lakhs (Previous year Rs. Nil) towards ecological study relating to
Tea Plantation charges.

27 The Hon''ble National Company Law Tribunal, Kolkata Bench (“NCLT”) vide its order dated 23rd October, 2024 has
sanctioned the Scheme of Amalgamation (“Scheme”), whereby 33 group companies (“Transferor Companies”)
have merged with Maharaja Shree Umaid Mills Limited (''Transferee Company''), another group company. A
Certified Copy of the Order of NCLT under Section 230 to 232 and other applicable provisions of the Companies
Act, 2013, sanctioning the above Scheme, was issued on 2nd December, 2024, which was filed by the respective
Transferor Companies on 10th December, 2024 (''effective date'') with the Registrar of Companies, West Bengal
(“ROC”).

The following Promoter Group Transferor Company, was holding equity shares of the Company as detailed herein
below:

Consequent to the said Scheme becoming effective, the abovenamed Promoter Group Transferor Company has
been merged with the Transferee Company and therefore, 1,21,275 equity shares representing 3.92% of the
Company held by this Promoter Group Company stands transferred to Maharaja Shree Umaid Mills Limited.

Further, amongst 33 group companies of the said Scheme, M B Commercial Company Limited and Amalgamated
Development Limited with whom the Company has related party transactions during the year and previous year
under review have also merged with Transferee Company and ceased to exist with effect from the appointed date
of the scheme, i.e., 1st April, 2023.

28 Previous year''s figures have been regrouped / reclassified, to the extent necessary, to confirm to current year''s
classifications.

29 Unless otherwise stated, all the numbers have been rounded off to the nearest lakhs.

^In ternis o^f ou^{r R}e^port atta^checl For _and o_n behalf of the Board of Directors

Fo^r Jayara^man & Knshna Lakshmi Niwas Bangur Alka Devi Bangur

^{Chartered Accountants} Chairman Managing Director

^Reg. N°. 0¹¹¹8^5S DIN : 00012617 DIN : 00012894

S. Krishnamoorthy Sanjeev Kumar Singh M. Sreenivasan Saurav Singhania

^partnei-, Auchtoi- ^MNo. ²⁰⁰⁸²⁶ _chj_ef Executive Officer Chief Financial Officer Company Secretary

Coimbatore, 26th May 2025

Kolkata, 26th May 2025

---

Mar 31, 2024

2. Contingent Liability and commitments to the extent not provided for:

i. Claims against the company not acknowledged as debts:

The Company has obtained a stay of proceedings from the Honourable High Court of Madras on 24th March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export sales effected through auction centres. The matter is pending and in common with the other tea planting companies.

ii. Income Tax Matters:

a) Tax assessments have been completed up to Assessment year 2022-23.

b) For the Assessment year 2014-15, the tax authorities reopened the assessment under section 263 of the Income tax Act, 1961, deduction under 80IA wrongly claimed the assesse under faceless assessment scheme. The same issue was disallowed earlier and appeal filed by the company and the same was dismissed vide ITAT order dated 06.12.22 and stated in it that the AO is free to examine the aspect of the claim of deduction u/s 80IA of the Act, after allowing reasonable opportunity of being heard to the assesse and for the reason no provision has been made.

c) Disputed tax dues of Rs.20.82 lakhs pertaining to the Assessment year 2017-18 are appealed before CIT (Appeals), Coimbatore. During the year company received order against the company. Further company appeal with ITAT (Appeal). The company is advised that the cases are likely to be disposed of in its favour and hence no provision is considered necessary therefor.

In respect of current year, the Directors proposed Dividend of Re.1/- per share on equity shares of face value Rs.10 each on 14/05/2024

There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. Except that an amount of Rs.7,568/-, Rs.8,820/-, Rs. 3,540, Rs. 1,416, Rs. 1,062 and Rs.532/-relating to the Dividend declared for the year 2009-10, 2010-11,2011-12, 2012-13, 2013-14 and 2014-15 respectively has been kept on hold due to court case.

7. Employee Benefits:

a) Defined Contribution Plan:

The Company makes contribution towards employees'' provident fund and superannuation fund. 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.198.45 lakhs (Previous year Rs.197.57 lakhs) as expense towards contribution to the Provident Fund.

The liability towards superannuation fund for the year ended 31st March 2024 amounting to Rs19.68 lakhs (Previous year Rs.20.28 lakhs) has been charged to Statement of Profit and Loss.

The leave encashment for the year ended 31st March 2024 amounting to Rs.19.75 lakhs (previous year Rs. 16.10) has been charged to Statement of Profit and Loss and the net liability as on 31.03.2024 is Rs.43.14 lakhs (previous year - Rs.30.25 lakhs).

H. Categories of plan assets:

All plan assets (100%) are held in ''Assets under Insurance schemes'' for the year ending 31.03.2024 and 31.03.2023.

I. Risk Exposure:

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

i. Interest rates risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond''s yield falls, the defined benefit obligation will tend to increase.

ii. Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

iii. Demographic risk: The risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effect of these decrements on the DBO depends upon the combination of salary increase, discount rate and vesting criteria and therefore not very straightforward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.

iv. Asset Liability mismatch: This will come into play unless the funds are invested in a term of the assets replicating the term of the liability.

J. Expected contributions to the plan:

Expected contributions to the plan for the next annual reporting period is Rs. 130.95 lakhs.

NOTE: Investments in subsidiaries are valued at cost and hence not considered for categorisation.

Fair value measurements are categorised into

Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 - inputs other than quoted prices included within level 1, that are observable for the assets and liabilities, either directly or indirectly;

Level 3 - unobservable inputs for the assets or liabilities.

• Fair value in respect of equity instruments is the quoted prices of those instruments in the stock exchanges at the measurement date.

• Fair value of Mutual funds is the NAV as on the measurement date.

• Fair value of unquoted equity instruments is at fair value measured as on measurement date. Fair value of such shares has been arrived based on methods which are combination of market, income and cost approaches.

• Carrying amounts of trade receivables and trade payables, cash and cash equivalents, other financial assets & other financial liabilities (current) are considered to be the same as their fair values due to their short-term nature and categorized as level 3 hierarchies.

9. Financial risk management:

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

i. Credit risk:

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk from its operating activities (primarily Trade Receivables) and from its investing activities (primarily Deposits with Banks, Loans and advances to Corporates and Investments in Shares and Mutual Funds).

Credit risk from balances with banks, term deposits, loans, investments is managed by Company''s finance department.

Trade Receivables are typically unsecured and are derived from revenue earned from customers. Customer credit risk is managed as per the Company''s policy and procedures which involve credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored.

The Company''s maximum exposure to credit risk for the components of the Balance Sheet as of 31st March, 2024 and 31st March, 2023 is the carrying amounts as disclosed in Note 9.

ii. Market risk:

Market risk is the risk that changes in market prices - such as commodity prices, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Further, the company is not exposed to any foreign currency exchange rate risk which has an impact on the Income statement and Equity as it does not have transaction references with other currencies.

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 interest rate risk can also impact the provision for retirement benefits.

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 fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of changes in market interest rates.

b. Price Risk

Securities price risk is the risk that the fair value of a financial instruments will fluctuate due to changes in market traded prices. The Company invests its surplus funds in various debt instruments and equity

instruments. These investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio.

c. 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, and fluctuation of selling price of finished goods (tea) due to increase in supply/availability. The Company manages these price fluctuations by actively managing the sourcing of tea, and alternate blending strategies without impacting the quality of the blend.

iii. Liquidity risk:

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and maintains adequate sources of financing.

The tables below analyse the company''s financial liabilities into relevant maturity groupings based on their contractual maturities. The company has only all non-derivative financial liabilities.

The amounts disclosed in the table are contracted undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. Balances due beyond 12 months are carried at amortised cost.

11. Capitalisation of Borrowing Costs:

The company has capitalized the following borrowing costs with eligible assets. Amount capitalised in Capital Work in progress was Sunil (Previous year Rs.Nil). No borrowing costs were capitalized to Property, plant and equipment (other than WIP) during the year ending 31.03.2024 and 31.03.2023.

12. Undisclosed Income:

There is no undisclosed income reported during the year.

13. Relationship with Struck of Companies:

During the year the Company has no transaction with the Struck of Companies

14. Disclosure under Section 186(4) of the Act:

The company has advanced loans to the following body corporates and the details of the loans are as under:

19. Previous year''s figures have been regrouped / reclassified, to the extent necessary, to confirm to current year''s classifications.

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Mar 31, 2023

19. Provisions and Contingencies

Provisions: Provisions are recognised when there is a present obligation or constructive obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the liability

Contingent Liabilities: Contingent liabilities are disclosed 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 a present obligation that arises from past

events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

20. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

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

21. Segment Reporting

Segments are identified based on the manner in which the Company''s Chief Operating Decision Maker (''CODM'') decides about resource allocation and reviews performance. Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets other than goodwill.

22. Dividend to Shareholders

Final dividend distributed to equity shareholders is recognised in the period in which it is approved by the members of the Company in the Annual General Meeting. Interim dividend is recognised when approved by the Board of Directors at the Board meeting.

Dividend distributed (including interim dividend) is recognised in the Statement of changes in Equity.

C. Other Notes to Financial Statements

1. Transition to IND AS 116

Effective April 1, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to it''s lease contracts existing on April 1,2019 using the modified retrospective approach under which the ROU Asset is measured at an amount equal to lease liability, which in turn is measured based on the remaining lease payments. . Consequently, the Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate. The incremental borrowing rate applied is 9%.

2. Contingent Liability and commitments to the extent not provided for:

i. Claims against the company not acknowledged as debts:

The Company has obtained a stay of proceedings from the Honourable High Court of Madras on 24th March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export sales effected through auction centres. The matter is pending and in common with the other tea planting companies.

ii. Income Tax Matters:

a) Tax assessments have been completed up to Assessment year 2022-23.

b) For the Assessment year 2014-15, the tax authorities reopened the assessment under section 263 of the Income tax Act, 1961, for deduction under 80IA wrongly claimed by the assessee under faceless assessment scheme. The same was disallowed earlier and appeal was filed by the company, and the same was dismissed vide ITAT order dated 08.12.22 and stated in it that the AO is free to examine the aspect of the claim of deduction u/s 80IA of the Act, after allowing reasonable opportunity of being heard to the assessee and for the reason no provision has been made.

6. Details of Dividend proposed and paid

Dividend for the year ended 31.03.2022 paid Re.1.50 per share : Rs.30.96 lakhs

Tax Deducted thereon : Rs.2.20 lakhs

In respect of current year, the Directors proposed Dividend of Rs.0.50 /- per share on equity shares of face value Rs.10 each on 17/05/2023

There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. Except that an amount of Rs.1,953/- , Rs.1,674/- and Rs.3,540/- relating to the Dividend declared for the year 2009-10, 2010-11 and 2011-12 respectively has been kept on hold due to court case.

7. Employee Benefits:

a) Defined Contribution Plan:

The Company makes contribution towards employees'' provident fund and superannuation fund. 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.197.57 lakhs (Previous year Rs.175.38 lakhs) as expense towards contribution to the Provident Fund.

The liability towards superannuation fund for the year ended 31st March 2023 amounting to Rs.20.28 lakhs (Previous year Rs.19.33 lakhs) has been charged to Statement of Profit and Loss.

The leave encashment for the year ended 31st March 2023 amounting to Rs.18.10 lakhs (previous year Rs. 14.62 lakhs) has been charged to Statement of Profit and Loss and the net liability as on 31.03.2023 is Rs.30.25 lakhs (previous year - Rs.25.71 lakhs).

H. Categories of plan assets:

All plan assets (100%) are held in ''Assets under Insurance schemes'' for the year ending 31.03.2023 and 31.03.2022.

I. Risk Exposure:

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

i. Interest rates risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond''s yield falls, the defined benefit obligation will tend to increase.

ii. Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

iii. Demographic risk: The risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effect of these decrements on the DBO depends upon the combination of salary increase, discount rate and vesting criteria and therefore not very straightforward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.

iv. Asset Liability mismatch: This will come into play unless the funds are invested in a term of the assets replicating the term of the liability.

J. Expected contributions to the plan:

Expected contributions to the plan for the next annual reporting period is Rs.118.04 lakhs.

NOTE: Investments in subsidiaries are valued at cost and hence not considered for categorisation.

Fair value measurements are categorised into

Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 - inputs other than quoted prices included within level 1, that are observable for the assets and liabilities, either directly or indirectly;

Level 3 - unobservable inputs for the assets or liabilities.

• Fair value in respect of equity instruments is the quoted prices of those instruments in the stock exchanges at the measurement date.

• Fair value of Mutual funds is the NAV as on the measurement date.

• Fair value of unquoted equity instruments is at fair value measured as on measurement date. Fair value of such shares has been arrived based on methods which are combination of market, income and cost approaches.

• Carrying amounts of trade receivables and trade payables, cash and cash equivalents, other financial assets & other financial liabilities (current) are considered to be the same as their fair values due to their short-term nature and categorized as level 3 hierarchies.

9. Financial risk management:

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

i. Credit risk:

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk from its operating activities (primarily Trade Receivables) and from its investing activities (primarily Deposits with Banks, Loans and advances to Corporate and Investments in Shares and Mutual Funds).

Credit risk from balances with banks, term deposits, loans, investments is managed by Company''s finance department.

Trade Receivables are typically unsecured and are derived from revenue earned from customers. Customer credit risk is managed as per the Company''s policy and procedures which involve credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored.

The Company''s maximum exposure to credit risk for the components of the Balance Sheet as of 31st March, 2023 and 31st March, 2022 is the carrying amounts as disclosed in Note 9.

ii. Market risk:

Market risk is the risk that changes in market prices - such as commodity prices, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Further, the company is not exposed to any foreign currency exchange rate risk which has an impact on the Income statement and Equity as it does not have transaction references with other currencies.

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 interest rate risk can also impact the provision for retirement benefits.

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 fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of changes in market interest rates.

b. Price Risk

Securities price risk is the risk that the fair value of a financial instruments will fluctuate due to changes in market traded prices. The Company invests its surplus funds in various debt instruments and equity instruments. These investments are susceptible to market price risk, mainly arising from changes in the

11. Capitalisation of Borrowing Costs:

The company has capitalized the following borrowing costs with eligible assets. Amount capitalised in Capital Work in progress was nil (Previous year Rs.Nil). No borrowing costs were capitalized to Property, plant and equipment (other than WIP) during the year ending 31.03.2023 and 31.03.2022.

12. Undisclosed Income:

There is no undisclosed income reported during the year.

13. Relationship with Struck of Companies:

During the year the Company has no transaction with the Struck of Companies

14. Disclosure under Section 186(4) of the Act:

The company has advanced loans to the following body corporates and the details of the loans are as under:

18. Disclosure on Crypto or virtual currency:

The is not transacted on crypto or virtual currency during the year and there is no outstanding crypto or virtual currency at the end of the year

19. Previous year''s figures have been regrouped / rearranged to the extent necessary to confirm to current year''s classifications.

Unless otherwise stated, all the numbers have been rounded off to the nearest lakhs.

In ternis °^f °u^r Re^p°rt ^att^achecl For and on behalf of the Board of Directors

For Jayaraman & Krishna Lakshmi Niwas Bangur Alk_a D_evi B_ang_ur Shreeyash Bangur

Ctiart^ered A^cc°unt^ant^s Chairman Managing Director Dy. Managing Director

Reg. No. 011185S DIN : 00012617 DIN : 00012894 DIN : 00012825

^S. ^{Krishnamoorthy} Sanjeev Kumar Singh K. Ashokan Saurav Singhania

P^artn^er, ^{Auditor M No}. ²⁰⁰⁸²⁶ chief Executive Officer Chief Financial Officer Company Secretary

^Coimbatore, ^{17th Ma}y ²⁰²³ Kolkata, 17th May 2023

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Mar 31, 2015

1. No amount is due and payable to any micro, small and medium enterprises as defined under MSME Development Act, 2006. No interest is due and / or has been paid or is payable to such parties.

2. The Company has carried out an exercise to ascertain the impairment, if any in the carrying value of fixed assets. The exercise has not revealed any impairment of assets during the year under review.

3. Employee Benefits

a) Defined Contribution Plan :

The Company makes contribution towards employees' provident fund and superannuation fund. 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. 1,51,86,350/-(Previous year Rs.1,62,47,747/-) as expense towards contribution to the Provident Fund.

Out of the total contribution made for employees' provident fund, Rs.13,16,431/-(previous year Rs.10,63,149/-) is made to the PL Planting Provident Fund while the reminder contribution is made to Provident Fund Plan operated by the Regional Provident Fund Commissioner.

The liability towards superannuation fund for the year ended 31st March 2015 amounting to Rs 18,29,545/- (Previous year Rs.17,43,813/-) has been charged to Statement of Profit and Loss.

There was no liability towards leave encashment for the year ended 31st March 2015 as it was adequately funded and no amount (previous year Rs. Nil has been charged to Statement of Profit and Loss.

4. Related Party Disclosures

Name of Related Parties and nature of relationship where control exists are as under :

Shri L.N. Bangur

Key Managerial Personnel Smt. Alka Bangur

Shri Shreeyash Bangur

M.B.Commercial Company Ltd.

Amalgamated Development Ltd.

Maharaja Shree Umaid Mills Ltd.

Placid Limited

The Marwar Textiles (Agency) Pvt.Ltd.

Mugneeram Ramcoovar Bangur Charitable & Religious Co.

Group Companies

Sree Rama Vaikunth Trust

Commodity Management Services Ltd.

Samay Industries Limited The General Investment Co.Ltd Kiran Vyapar Limited Soul Beauty & Wellness Centre PKT Plantations Limited

Wholly owned Subsidiary Companies

Shivphal Vinimay Private Limited Shri L.N.Bangur

Relatives of Key Managerial Personnel Ms.Sheetal Bangur

Shri.Yogesh Bangur

5. Previous year's figures have been reclassified wherever necessary to conform to this year's classification.

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Mar 31, 2014

A) The Company has obtained a stay of proceedings from the Honorable High Court of Madras on 24th March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export sales effected through auction centers. The matter is pending and in common with the other tea planting companies, no account has been taken of the contingent liability.

b) No amount is due and payable to any micro, small and medium enterprises as defined under MSME Development Act, 2006. No interest is due and / or has been paid or is payable to such parties.

c) The Company has carried out an exercise to ascertain the impairment, if any in the carrying value of fixed assets. The exercise has not revealed any impairment of assets during the year under review.

d) Deferred Tax:

Deferred tax liability as at 31st March 2014 comprises of:

f) Employee Benefits

a) Defined Contribution Plan :

The Company makes contribution towards employees'' provident fund and superannuation fund. 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.1,62,47,747/-. (Previous year Rs.1,41,99,705/-) as expense towards contribution to the Provident Fund.

Out of the total contribution made for employees'' provident fund, Rs. 10,63,149/- (previous year Rs.10,49,894/-) is made to the P L Planting Provident Fund while the reminder contribution is made to Provident Fund Plan operated by the Regional Provident Fund Commissioner.

The liability towards superannuation fund for the year ended 31st March 2014 amounting to Rs. 17,43,813/- (Previous year Rs. 19,79,823/-) has been charged to Statement of Profit and Loss.

There was no liability towards leave encashment for the year ended 31st March 2014 as it was adequately funded and no amount (previous year '' Nil has been charged to Statement of Profit and Loss.

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Mar 31, 2013

A) No provision is considered necessary for excise duty demands relating to earlier years under appeal/stay: Rs. 1,50,940/- (Previous year Rs. 1,50,940/-) paid under protest is grouped under loans and advances.

b) The Company has obtained a stay of proceedings from the Honorable High Court of Madras on 24th March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export sales effected through auction centers. The matter is pending and in common with the other tea planting companies, no account has been taken of the contingent liability.

c) Contingent Liabilities and commitments i) Contingent Liabilities : Nil

ii) Commitments

With respect to the divestment of the shares in The Andhra Pradesh Paper Mills Limited during the year under the Share Purchase Agreement (SP Agreement) and Indemnity Agreement between all the sellers including the Company, IP Holding Asia Singapore Pte. Ltd and International Paper Company, the sellers including the company have agreed to indemnify and hold free harmless to IP Holding Asia Singapore Pte. Ltd. and International Paper Company from losses incurred or suffered in terms of indemnification clause(s) of the said SP Agreement and Indemnity Escrow Agreement. Further, as per the aforesaid agreements, term deposits under escrow account with Citibank is Rs. 2,43,27,000/- as on 31st March 2013.

d) No amount is due and payable to any micro, small and medium enterprises as defined under MSME Development Act, 2006. No interest is due and / or has been paid or is payable to such parties.

e) The Company has carried out an exercise to ascertain the impairment, if any in the carrying value of fixed assets. The exercise has not revealed any impairment of assets during the year under review.

f) Deferred Tax:

Deferred tax liability as at 31st March 2013 comprises of:

g) Employee Benefits

a) Defined Contribution Plan :

The Company makes contribution towards employees'' provident fund and superannuation fund. Under the rules of these schemes, the company is required to contribute a specified percentage of payroll costs. The company during the year recognized ^ 1,41,99,705/-. (Previous year Rs. 1,58,41,260/-) as expense towards contribution to the Provident Fund.

Out of the total contribution made for employees'' provident fund, Rs. 10,49,894/- (previous year Rs. 9,38,918/-) is made to the PL Planting Provident Fund while the reminder contribution is made to Provident Fund Plan operated by the Regional Provident Fund Commissioner.

The liability towards superannuation fund for the year ended 31st March 2013 amounting to Rs. 19,79,823/- (Previous year Rs. 16,38,355/-) has been charged to Statement of Profit and Loss.

There was no liability towards leave encashment for the year ended 31st March 2013 as it was adequately funded and no amount (previous year Rs. 5,47,961/-) has been charged to Statement of Profit and Loss.

h) Previous year''s figures have been reclassified wherever necessary to conform to this year''s classification.

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Mar 31, 2012

A) No provision is considered necessary for excise duty demands relating to earlier years under appeal/stay: Rs 1,50,940/- (Previous year Rs 1,50,940/-) paid under protest is grouped under loans and advances.

b) The Company has obtained a stay of proceedings from the Honorable High Court of Madras on 24th March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export sales effected through auction centers. The matter is pending and in common with the other tea planting companies, no account has been taken of the contingent liability.

a) For the year under audit, the company has two reportable segment viz. Tea and Wind Energy Generation..

b) Employee Benefits

a) Defined Contribution Plan :

The Company makes contribution towards employees' provident fund and superannuation fund. 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 1,58,41,260/- (Previous year Rs 1,03,64,701/-) as expense towards contribution to the Provident Fund.

Out of the total contribution made for employees' provident fund, Rs 9,38,918/- (previous year Rs 7,79,105/-) is made to the PL Planting Provident Fund while the reminder contribution is made to Provident Fund Plan operated by the Regional Provident Fund Commissioner.

The liability towards superannuation fund for the year ended 31st March 2012 amounting to Rs 16,38,355/- (Previous year Rs 13,81,395/-) has been charged to the Statement of Profit & Loss.

The liability towards leave encashment for the year ended 31st March 2012 amounting to Rs 5,47,961/- (previous year Rs 6,33,750/-) has been charged to Statement of Profit and Loss.

Note : Figures in bracket represents previous year's amount.

c) Previous year's figures have been reclassified wherever necessary to conform to this year's classification.

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Mar 31, 2010

A) No provision is considered necessary for excise duty demands relating to earlier years under appeal/stay: Rs. 1,50,940 (Previous year Rs. 1,50,940) paid under protest is grouped under loans and advances.

b) The Company has obtained a stay of proceedings from the Honble High Court of Madras on 24th March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export sales effected through auction centres. The matter is pending and in common with the other tea planting companies, no account has been taken of the contingent liability.

c) No amount is due and payable to any micro, small and medium enterprises as defined under MSME Development Act, 2006. No interest is due and / or has been paid or is payable to such parties.

d) The company has carried out an exercise to ascertain the impairment, if any in the carrying value of Fixed assets. The exercise has not revealed any impairment of assets during the year under review.

e) Deferred Tax:

Deferred Tax liability as at 31st March 2010 comprise the following :

B) Employee Benefits

a) Defined Contribution Plan :

The Company makes contribution towards employees provident fund and superannuation fund. 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. 1,00,94,809 (previous year Rs. 94,03,577) as expense towards contribution to the Provident Fund.

Out of the total contribution made for employees provident fund, Rs. 6,29,600 (previous year Rs.5,86,028) is made to the PL Planting Provident Fund while the reminder contribution is made to Provident Fund Plan operated by the Regional Provident Fund Commissioner.

The liability towards superannuation fund for the year ended 31st March 2010 amounting to Rs. 10,79,410 (previous year Rs. 10,06,369) has been charged to the Profit & Loss Account. The liability towards leave encashment for the year ended 31st March 2010 amounting to Rs.4,51,590 (previous year Rs.39,79,956) has been charged to Profit & Loss Account.

C) The Company has taken office building on lease and the lease rent amounts to Rs.3,36,086 (previous year Rs.2,62,800) has been charged to Profit & Loss Account. Assets are taken on lease over a period of three years. Future minimum lease payments are as under:

D) Related Party Disclosures

Name of Related Parties and nature of relationship where control exists are as under:

Key Management Personnel

Shri L.N. Bangur - Chairman

Smt. Alka Bangur - Managing Director

Shri Prakash Parasher - Executive Director

Associate Companies

Digvijay Investments Ltd.

M.B. Commercial Company Ltd.

Amalgamated Development Ltd.

Maharaja Shree Umaid Mills Ltd.

The Andhra Pradesh Paper Mills Ltd.

The Marwar Textiles (Agency) Pvt. Ltd.

Placid Ltd.

Sree Rama Vaikunth Trust

Subsidiary Company Peria Karamalai Tea (India) Limited

Relatives of Key Managerial Personnel

Ms. Sheetal Bangur

Shri Shreeyash Bangur

Shri Yogesh Bangur