Note 1:

(a) Corporate Information

B & A Limited is a public limited company incorporated and domiciled in India in 1915 under the provisions of the Companies Act and is principally engaged in the business of cultivation, manufacturing and sale of Black Tea. The registered office of the Company is located at Gariahabi Grant, Charingia, Jorhat-785006, Assam. The Equity shares of the company are listed on the Bombay Stock Exchange (BSE Ltd).These standalone financial statements were approved and authorised for issue in accordance with the resolution of the Company’s Board of Directors on 26th May, 2026.

(b) Basis of Preparation and Compliance with Ind AS

These financial statements comply, in all material aspects, with Indian Accounting Standards (Ind ASs) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

These financial statements have been prepared on accrual and going concern basis, in accordance with the generally accepted accounting principles in India under the historical cost convention, except for the following:

a. certain financial assets and liabilities which have been measured at fair value,

b. assets and liabilities acquired/ assumed in business combinations, which have been measured and recognised at fair value as on the date of acquisition or assumption,

c. biological assets, including unplucked green leaves which have been measured at fair value less cost to sell, if any and

d. employee benefit plans which have been measured at fair value.

Note 2: Summary of Material Accounting Policies

The material accounting policy information

related to preparation of standalone financial statements have been discussed in the respective notes.

2.1 Classification of Assets and Liabilities as Current and Non-Current

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is treated as Current when it is:

- expected to be realised or intended to be sold or consumed in normal operating cycle

- held primarily for the purpose of trading

- expected to be realised within twelve months after the reporting period, or

- cash and cash equivalent unless restricted from being exchanged or used to settle a liability for within twelve months after the reporting period.

A liability is treated as Current when it is :

- expected to be settled in normal operating cycle

- held primarily for the purpose of trading

- expected to be settled within twelve months after the reporting period, or

- there is no unconditional right to defer the settlement of the liability within twelve months after the reporting period. All other assets/liabilities are classified as non-current. Deferred tax assets and liabilities are classified as noncurrent assets/liabilities.

The operating cycle is the time between the acquisition of the assets for processing and their realisation in cash and cash equivalents.

The Company has ascertained the operating cycle as twelve months for the purpose of current and non current classification of assets and liabilities.

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 nonfinancial asset takes into account a market participant’s 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, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

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 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 ofeach 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.

(b) Financial Instruments :

The estimated fair value of the Company’s financial instruments is based on market prices and valuation techniques. Valuations are made with the objective to include relevant factors that market participants would consider in setting a price, and to apply accepted economic and financial methodologies for the pricing of financial instruments. References for less active markets are carefully reviewed to establish relevant and comparable data.

2.5 Financial Assets

(a) Classification :

The Company classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value (either through other comprehensive income or through profit or loss), and

- those to be measured at amortised cost.

The classification depends on the Company's business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt

instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. The Company reclassifies debt investments when and only when its business model for managing those assets changes.

(b) Measurement :

At initial recognition, the Company measures a financial asset at its fair value, plus in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Equity Instruments

The Company subsequently measures all equity investments (other than investments in subsidiaries, associate and joint ventures) at fair value. Where the Company’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Changes in the fair value of financial assets at fair value through Profit or Loss are recognised in 'Other Gain / (Losses)' in the Statement of Profit and Loss.

(c) Impairment of Financial Assets :

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at

amortised cost and FVOCI debt instruments, if any. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Loss on impairment is recognised in the year in which the impairment becomes certain beyond reasonable doubt.

For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward looking factors specific to the debtors and the economic environment.

(d) Modification of Financial Instruments :

The Company if renegotiates or otherwise modifies the contractual cash flows of financial instrument, the Company assesses whether or not the new terms are substantially different to the original terms.

If the terms are substantially different, the original financial instrument is derecognised and recognises a 'new' instrument at fair value and recalculates a new effective interest rate for the instrument. Differences in the carrying amount are also recognised in profit or loss as a gain or loss on derecognition.

If the terms are not substantially different, the renegotiation or modification does not result in derecognition, and the management recalculates the gross carrying amount based on the revised cash flows of the financial asset and recognises a

modification gain or loss in profit or loss. The new gross carrying amount is recalculated by discounting the modified cash flows at the original effective interest rate.

(e) Derecognition of Financial Assets :

A financial asset is derecognised only when

-- the Company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised.

Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

2.6 Financial Liabilities

(a) Initial Recognition and Measurement :

Financial liabilities are classified, at initial recognition, as financial liabilities

at fair value through profit or loss, amortised cost, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of amortised cost, net of directly attributable transaction costs.

(b) Subsequent Measurement :

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through profit or loss. Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risks are recognized in OCI. These

gains/losses are not subsequently transferred to Profit & Loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.

(c) De-recognition of financial liabilities

The company derecognises a financial liability when its contractual obligations are discharged or cancelled or expired.

2.7 Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

2.8 Impairment of Non-Financial Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. For the purposes of assessing impairment, assets are compared at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (cash-generating units).

2.9 Provisions

Provisions are recognised when the

Company has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as finance cost.

2.10 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 nonoccurrence of one or more uncertain future events not wholly within the control of the Company, or when a present obligation arises from past events where it is either not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or a reliable estimate of the amount cannot be made.

2.11 Contingent Assets

Contingent assets are not recognised but disclosed when an inflow of economic benefits is probable.

2.12 Claims not acknowledged as Debts

Claims against the Company not acknowledged as debts are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

2.13 Dividends

Interim dividend is recognised in the period in which it is approved by the Board of Directors and final dividend in the period in which it is approved by the Shareholders.

2.14 Employee Benefits

Short Term Employee Benefits

Short-term employee benefits are recognised as an expense in the Statement of Profit and Loss for the period in which the related services are rendered. The liabilities for such benefits are measured at the undiscounted amount expected to be paid in exchange for such services.

Post-Employment Benefit Plans

The Company operates both defined contribution as well as defined benefit plans for its employees.Contributions to defined contribution plans, including provident fund, are recognised as an expense in the Statement of Profit and Loss in the period in which the employees render the related services.

The Company's gratuity obligation, other than in respect of employees covered under the Assam Gratuity Fund Scheme, constitutes a defined benefit plan. Under this plan, the cost of providing gratuity benefits is determined by an independent actuary using the Projected Unit Credit Method. Re-measurements comprising actuarial gains and losses are recognised immediately in Other Comprehensive Income and are not reclassified to the Statement of Profit and Loss in subsequent periods. Service cost and net interest cost on the net defined benefit liability are recognised in the Statement of Profit and Loss. The Company's plantation workers engaged in Assam are covered under the Assam Gratuity Fund Scheme notified by

the Government of Assam under the Assam Gratuity Act, 1992. Accordingly, gratuity benefits in respect of such employees are administered under the said scheme.

2.15 Government Grants

Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received, and the Company will comply with the conditions attached.

Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the cost that they are intended to compensate, and presented within other operating income.

Government grants relating to the acquisition or construction of Property, plant and equipment are included in the Balance Sheet as deferred income and recognised as income in the Statement of Profit and Loss over the useful life of the related item of Property, plant and equipment and presented within other non-operating income.

2.16 Research and Development

Contribution to Tea Research Association is charged to revenue.

2.17 Earnings per Share

Basic earnings per share is computed by dividing:

- the profit / loss attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account:

- the after-income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

2.18 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included under “Unallocated revenue/ expenses/assets/liabilities’’.

2.19 Rounding Off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh or decimals thereof as per the requirement of Division II of Schedule III to the Companies Act, 2013, unless otherwise stated.

2.20 Critical Estimates and Judgements

Information about the judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements have been given below:

Classification of financial assets: assessment of business model within which the assets are held and assessment of whether the contractual terms of the financial asset are solely payments of principal and interest on the principal amount outstanding.

The areas involving critical estimates and judgements are :

(a) Taxation

The Company is engaged in agricultural activities and is subject to tax liability both under the provisions of the Income Tax Act, 1961 and Assam Agricultural Income Tax Act, 1939. Significant judgement is involved in determining the tax liability for the Company. Further, there are many transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain. Further judgement is involved in determining the deferred tax position on the balance sheet date.

(b) Depreciation and amortisation

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

(c) Actuarial Valuation for Employee Benefits

The determination of Company’s liability towards defined benefit obligation to employees (except employees covered under Assam Gratuity Fund Scheme notified under the Assam Gratuity Act, 1992) is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in Other Comprehensive Income. Such valuation depends upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors. Information about such valuation is provided in notes to the financial statements.

(d) Provisions and Contingencies

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

Note 3 : Property, Plant & Equipment

Accounting Policy:

(i) Recognition and Measurement :

Property, plant and equipment (PPE) are measured at cost of acquisition, less accumulated depreciation and accumulated impairment loss, if any. Initial cost of PPE comprises of purchase price, non-refundable taxes, any directly attributable cost of bringing the asset to its working condition for its intended use, including borrowing costs in case of qualifying assets. The present value of the expected cost for decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for such is met. Material items such as spare parts, stand-by equipment and service equipment are classified as PPE when they meet the definition of PPE as specified in Ind AS 16 - Property, Plant and Equipment.

Bearer Plants which is used in the production or supply of agriculture produce and expected to bear produce for more than a period of twelve months are capitalized as a part of Property, Plant & Equipment. The cost of Bearer Plant includes all cost incurred till the plants are ready for commercial harvest.

(ii) Subsequent Measurement :

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other expenses for repairs and maintenance are charged to the Statement of Profit and Loss during the period in which they are incurred.

(iii) Depreciation :

Depreciation is provided on a straight-line basis over the estimated useful lives of the assets as prescribed under Schedule II to the Companies Act, 2013, except for certain assets where different useful lives have been determined based on a technical evaluation:-

a. buildings are depreciated over a range of 3 to 65 years,

b. plant and machineries are depreciated over a range of 15 to 35 years,

c. electrical installations are depreciated over a period of 10 years,

d. vehicles are depreciated over a range of 5 to 8 years,

e. computers are depreciated over a range of 3 to 5 years and

f. furniture & fittings are depreciated over a period of 10 years,

Depreciation on bearer plants is provided under straight line method based on an estimated life of 80 years. Such life is estimated by the management based on previous experience. Bearer plants are depreciated from the date they are ready for commercial harvest, pending which they are accounted for under Capital Work-inProgress.

Freehold land is not depreciated. Leasehold land is also not depreciated as the lease is renewed upon expiry of the lease period. Ind AS 116 “Lease” is not applicable to the Company in as much as the lease in respect of its leasehold-land is perpetual in nature.

(iv) De-recognition :

An item of property, plant and equipment is de-recognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognised in the Statement of Profit & Loss. The residual values and useful lives of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(v) Advances paid towards the acquisition of Property, plant and equipment outstanding at each Balance Sheet date is classified as ‘Capital Advances’ under ‘Other Non-Current Assets’.