1.22 Provisions and contingent liabilities:
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pretax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.
1.23 Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
(A) Rights , preferences and restrictions attached to Shares
The Company has only one class of shares referred to as Equity Shares having a par value of Rs.10/- per share. Each shareholder is entitled for one vote per share held and is entitled to participate in dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Nature and Purpose of Other Reserves
(A) Securities Premium Reserve
Securities Premium Reserve is used to record the premium on issue of shares. The reserve is available for utilization in accordance with the provisions of the Act.
(B) General Reserve
General Reserve is created and utilized in compliance with the provisions of the Act.
(C) Retained Earnings
Retained Earnings represent accumulated profits earned by the Company and the remaining undistributed as on date.
36. EMPLOYEE BENEFITS
As required by Ind AS 19, "Employee Benefits", the disclosures regarding defined benefits is given
below:
a) Provident Fund and Pension Fund are defined contribution schemes and the contribution thereto are charged to Statement of Profit and Loss for the year when the contributions to the respective funds are paid/due.
b) Gratuity
b) Group Gratuity Fund is defined benefit plan and the cost of providing the benefit is determined using the Projected Unit Credit Method (PUCM) with actuarial valuation being carried out at each reporting date.
38. SEGMENT INFORMATION
In accordance with Accounting Standard Ind As 108 'Operating Segment' are:
a. Domestic
b. International
Identification of segments:
The chief operational decision maker monitors the operating results of its business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of Geographical Area of operations and other quantitative criteria specified in the the Ind AS 108.
Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of allocable income).
Segment assets and Liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipments, trade receivables, inventory and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common assets and liabilities which cannot be allocated to any of the business segment are shown as unallocable assets / liabilities.
Inter Segement transfer:
Profit or loss on inter segment transfers are eliminated at company level.
39. FINANCIAL INSTRUMENTS
(i) Fair value hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are
classified into three Levels of a fair value hierarchy. The three Levels are defined based on the
observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3
(ii) Valuation processes
The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. Discussions of valuation processes and results are held between the CFO and the valuation team at least once every three months, in line with the company's quarterly reporting periods.
40. FINANCIAL RISK MANAGEMENT
The Company's activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, the company has risk management policies as described below:-
(A) Credit risk
Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial obligations as per the terms of contract. The Company is exposed to credit risk for receivables, cash and cash equivalents and financial guarantees. None of the financial instruments of the Company result in material concentration of credit risks.
Credit risk on receivables is minimum since sales are made after judging credit worthiness of the customers, advance payment or against letter of credit by banks. The history of defaults has been minimal and outstanding receivables are regularly monitored. Before giving loans to parties including subsidiary, the Company assesses the material risk on account of non-performance by any of the parties.
For derivative and financial instruments, the Company manage its credit risks by dealing with reputable banks and financial institutions.
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
(B) Liquidity risk
Liquidity risk refers to the risk that the Company fails to honour its financial obligations in accordance with terms of contract. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Management monitors rolling forecasts of the company's liquidity position (including the undrawn credit facilities extended by banks and financial institutions) and cash and cash equivalents on the basis of expected cash flows. In addition, the Company's liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Maturities of financial liabilities
The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
(C) Market risk
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company's functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.
"The Company, as risk management policy, hedges foreign currency transactions to mitigate the risk exposure and reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed."
(ii) Price risk
The Company's exposure to equity securities price risk arises from unquoted investments held and classified in the balance sheet as Cost. The Company is not expecting high risk exposure from its investment in securities.
(D) Agricultural Risk
Cultivation of tea being an agricultural activity, there are certain specific financial risks. These financial risks arise mainly due to adverse weather conditions, logistic problems inherent to remote areas, and fluctuation of selling price of finished goods (tea) due to increase in supply/availability.
The Company manages the above financial risks in the following manner:
Sufficient inventory levels maintained so that timely corrective action can be taken in case of adverse weather conditions.
Slightly higher level of consumable stores are maintained in order to mitigate financial risk arising from logistics problems.
Sufficient working-capital-facility is obtained from banks in such a way that procurement and sale of tea is not adversely affected even in times of adverse conditions.
41. CAPITAL MANAGEMENT
(a) Risk Management
The Company's objectives when managing capital are to
(a) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
(b) Maintain an optimal capital structure to reduce the cost of capital
In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Company monitors capital on the basis of net debt to equity ratio and maturity profile of overall debt portfolio of the Company.
Net debt implies total borrowings of the Company as reduced by Cash and Cash Equivalent and Equity comprises all components attributable to the owners of the Company The following table summarises the Net Debt, Equity and Ratio thereof.
44. Title Deeds of Immovable Property not held in the name of the Company
The company does not have any Immovable property.
45. Details of Benami Property held
The company is not holding any Benami Property under the Benami Transactions (Prohibition) Act 1998
46. Wilful Defaulter
The company has not been declared a wilful defaulter by any Bank or Financial Institution or any other lender.
47. Relationship with Struck of Companies.
The company does not have any transactions with companies struck off under section 248 of the Companies Act 2023
48. Registration of charges or satisfaction with Registrar of Companies
The company does not have any charges or satisfaction that is yet to be registered with Registrar of Companies
49. Utilization of Borrowed Fund and Share Premium
The company has not advances or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity (ies)
50. Undisclosed Income
As per management the company does not have any transactions which were not recorded in the books of accounts.
51. Corporate Social Responsibility (CSR)
The company is not covered under section 135 of the Companies Act, 2013. Hence, this clause in not applicable.
52. Details of Crypto Currency or Virtual Currency
The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
53. Other figures of the previous years have been regrouped/reclassified/ or rearranged wherever necessary.
54. The information as required to be furnished pursuant to the General instructions to Part I & part II of the Schedule III to the Companies Act, 2013 have been given to extent applicable.
In terms of our report of even date Signature to Note "1" to "54"
For Agarwal Kejriwal & Co. For & on behalf of the Board Firm
Chartered Accountants Registration No. 316112E
Sd/- Sd/- Sd/-
(M. Agarwal) (Hariram Garg) (Sunil Garg)
Partner Managing Director Director
Membership No. : 052474 DIN: 00216053 DIN: 00216155
UDIN: 24052474BKBOUO1625
Sd/- Sd/-
(Rajesh Garg) (Anjali Shaw)
Place: Kolkata Chief Financial Officer Company Secretory
Date: 30/05/2024 M.No. A48857
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