The material accounting policies adopted in the preparation of these standalone financial statements are stated below. These
policies have been consistently applied, unless otherwise stated.
a) Basis for preparation
(i) Compliance with Ind AS
These standalone financial statements comply in all material respects with the Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013 (the 'Act') [Companies (Indian Accounting Standards) Rules, 2015] (as
amended from time to time) and other relevant provisions of the Act. These standalone financial statements has also been
prepared in compliance with presentation requirement of Division II of Schedule III of the Companies Act, 2013 (IND AS
Compliant Schedule III) as applicable to the standalone financial statements.
These standards and policies have been consistently applied to all the years presented, unless otherwise stated. The
standalone financial statements are presented in Indian Rupees (Rs.), which is the Company's functional and presentation
currency.
(ii) Historical cost convention
The standalone financial statements have been prepared under the historical cost convention with the exception of certain
assets and liabilities that are required to be carried at fair values by Ind AS.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
b) Property, plant and equipment
(i) Property, plant and equipment are stated either at deemed cost as considered on the date of transition to Ind AS or
at acquisition/construction cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost
comprises of purchase cost, borrowing costs if capitalization criteria are met and other directly attributable cost of bringing
the assets to its working condition for intended use. Any trade discounts and rebates are deducted in arriving at the
purchase price.
(ii) Bearer plants comprising of mature tea bushes are stated at cost less accumulated depreciation and accumulated
impairment losses, if any.
(iii) Immature bearer plants, including the cost incurred for procurement of new seeds/plants and maintenance of nurseries,
are carried at cost less any recognized impairment losses under capital work-in-progress. Cost includes the expenditure for
uprooting, land preparation, new planting and maintenance of newly planted bushes until maturity. On maturity, these costs
are classified under bearer plants. Bearer Plants are depreciated from the date when they are ready for commercial harvest.
(iv) Subsequent expenditure related to an item of property, plant and equipment is added to its carrying amount only if it
increases the future benefits from the existing assets beyond its previously assessed standard of performance.
(v) Capital work in progress is stated at cost incurred during construction/installation period relating to items or projects in
progress.
(vi) Losses arising from the retirement of and gains or losses arising from disposal of property, plant and equipment are
recognized in the Statement of Profit and Loss.
(vii) Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their useful
lives as estimated by management that are in line with those prescribed by the Schedule II of the Companies Act, 2013.
The useful lives of property, plant and equipment have been considered as per Schedule II, except in case of Bearer Plants
for which the useful life have been considered on the basis of technical evaluation.
Estimate of remaining useful life are reviewed every year.
Leasehold lands for Tea Estates are granted/allotted/settled/extended by the government with a right of renewal. The
government extends the lease renewals by way of general notifications at regular intervals. These leasehold lands are
considered as long term and perpetual leases.
c) Investment Properties
Property (Land or a Building- or part of a Building or both) that is held for long-term rental yields or for capital appreciation
or both, rather than for use in production or supply of goods or for administrative purposes or sale in the ordinary course of
business by the Company, is classified as investment property. Investment property is measured initially at its cost, including
related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalized to the asset's carrying
amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the
cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of
an investment property is replaced, the carrying amount of the replaced part is derecognized.
Investment properties are depreciated using the straight-line method over their estimated useful lives. The investment properties
held by the Company comprise only of freehold land, hence there is no depreciation.
d) Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction
rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying
amount and fair value less cost to sell.
An impairment loss is recognized for any initial or subsequent write-down of the asset to fair value less cost to sell. A gain
is recognized for any subsequent increases in fair value less cost to sell of an asset, but not in excess of any cumulative
impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset
is recognized at the date of de-recognition.
Non-current asset classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities
of a Non-current asset classified as held for sale are presented separately from other liabilities in the balance sheet.
e) Impairment of non-financial assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets
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. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessment of the time value of money and the risks specific to the asset. In determining fair value less
costs of disposal, recent market transactions are taken into account. For the purpose of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash
inflows from other assets or groups of assets (cash-generating units).
An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment
losses no longer exist or have decreased. A previously recognised impairment loss is reversed only if there has been a change in
the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised. The reversal
is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount
that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
f) Financial Instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of
the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities
at fair value through profit and loss) are added to or deducted from the fair value measured on initial recognition of financial
asset or financial liability. The transaction costs directly attributable to the acquisition of financial assets and financial liabilities
at fair value through profit and loss are immediately recognized in the Statement of Profit and Loss.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest
income or expense over the relevant period. The effective interest rate is the rate that exactly discounts future cash receipts or
payments through the expected life of the financial instrument, or where appropriate, a shorter period.
Financial assets
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, demand deposits with banks, other short-term highly liquid investments with
original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.
Other bank balances
Other bank balances include deposits with maturity less than twelve months but greater than three months and balances and
deposits with banks that are restricted for withdrawal and usage.
Financial assets at amortized cost
Financial assets in the nature of Trade Receivables, Loans, Security Deposits, Advances, Fixed Deposits, etc., are subsequently
measured at amortized cost if these financial assets are held within a business model whose objective is to hold these assets
in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets measured at fair value
Financial assets are measured at 'Fair value through other comprehensive income' (FVOCI) if these financial assets are held within
a business model whose objective is to hold these assets in order to collect contractual cash flows or to sell these financial
assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
The Company in respect of equity investments (other than Investment in subsidiaries which are accounted for at cost) which are
not held for trading has made an irrevocable election to present in other comprehensive income subsequent changes in the fair
value of such equity instruments. Such an election is made by the Company on an instrument by instrument basis at the time of
initial recognition of such equity investments.
Financial asset not measured at amortized cost or at fair value through other comprehensive income is carried at 'Fair value
through the Statement of Profit and Loss' (FVPL).
Impairment of financial assets
The Company assesses on a forward looking basis the 'Expected credit losses' (ECL) associated with its assets carried at
amortized cost and FVOCI debt instruments. The Company recognizes loss allowance for expected credit losses on financial
asset including towards time value of money.
For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which
requires expected lifetime losses to be recognized from initial recognition of the receivables.
De-recognition of financial assets
The Company de-recognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or it
transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity. If the Company
neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset,
the Company recognizes its retained interest in the assets and an associated liability for amounts it may have to pay.
If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company
continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.
Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its
liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at
amortized cost, using the effective interest rate method where the time value of money is significant.
Interest bearing bank loans, overdrafts and issued debt are initially measured at fair value and are subsequently measured at
amortized cost using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and
the settlement or redemption of borrowings is recognized over the term of the borrowings in the Statement of Profit and Loss.
De-recognition of financial liabilities
The Company de-recognizes financial liabilities when, and only when, the Company's obligations are discharged, cancelled or
they expire.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable
right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
g) Inventories
Finished Goods and Stores and Spare parts are stated at lower of cost and net realizable value. Cost of Finished Goods
comprise direct material [cost of green leaf harvested from own gardens ("agricultural produce”) / purchased green leaves]
and appropriate portion of variable and fixed overhead expenditure. Cost of inventories also include all other costs incurred in
bringing the inventories to their present location and condition. Costs are assigned to individual items of inventory on the basis
of weighted average method. Agricultural produce (being green leaf harvested from own gardens) is measured at the fair value
less cost to sell at the point of harvest of tea leaves.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and
the estimated costs necessary to make the sale.
h) Biological assets (Other than bearer plant)
Tea leaves growing on tea bushes are measured at fair value less cost to sell with changes in fair value recognized in Statement
of profit and loss.
i) Employee Benefits
(i) Short term employee benefits
The undiscounted amount of Short-term Employee Benefits expected to be paid in exchange for the services rendered by
employees is recognized during the period when the employee renders the service. This benefit includes salary, wages,
short term compensatory absences, bonus and other short term benefits.
(ii) Long term compensated absences
Long term compensated absence is provided for on the basis of an actuarial valuation, using the Projected Unit Credit
Method as at the date of Balance Sheet. Actuarial loss/gains are recognized in the Statement of Profit and Loss in the year
in which they arise. The Company presents the entire leave as a current liability in the Balance Sheet, since it does not have
an unconditional right to defer its settlement for twelve months after the reporting date.
(iii) Post employment benefit plans
For Defined Benefit Plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial
valuations being carried out at each Balance Sheet date. Re-measurement gains and losses of the net defined benefit
liability/ (asset) are recognized immediately in other comprehensive income. The service cost and net interest on the net
defined benefit liability/ (asset) is treated as a net expense within employment costs.
Past service cost is recognized as an expense when the plan amendment or curtailment occurs or when any related
restructuring costs or termination benefits are recognized, whichever is earlier.
The retirement benefit obligation recognized in the Balance Sheet represents the present value of the defined benefit
obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets.
Any asset resulting from this calculation is limited to the present value of any economic benefit available in the form of
refunds from the plan or reductions in future contributions to the plan.
(iv) Defined contribution plans
Payments to defined contribution plans are charged as an expense as they fall due. Payments made to state managed
retirement benefit schemes are dealt with as payments to defined contribution schemes where the Company's obligations
under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.
j) Foreign currency transactions
Functional and presentation currency
The financial statements of the Company are presented in Indian Rupees (Rs.), which is the functional currency of the Company
and the presentation currency for the financial statements.
Transactions and balances
Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transactions. Monetary assets
and liabilities related to foreign currency are restated at the year-end at the exchange rate prevailing on the Balance Sheet date.
Foreign currency non-monetary items carried in terms of historical cost are reported using the exchange rate on the date of
transactions. Exchange differences arising on restatement or settlement are recognized in the Statement of Profit and Loss in
the period in which they arise.
k) Revenue Recognition
Revenue is measured at fair value of consideration received or receivable, net of discounts and taxes and duties collected on
behalf of the government, taking into account the contractually defined terms.
Sale of goods
The Company is in the business of cultivation, manufacturing and selling of tea in the market. Under Ind AS 115 sales are
recognized when control of the products has transferred to the customer. The transfer of control occurs when the products has
been shipped to the specific location as the case may be, the risks of obsolescence and loss have been transferred, and either
the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that
the goods are in control of the customer.
No element of financing is deemed present as the sales are made with a credit term which is consistent with market practice
for the industry.
Interest income
Interest income is accrued on a time proportion basis, by reference to the principle outstanding and the effective interest rate
applicable.
Dividend income
Dividend income from investments is recognized when the shareholder's rights to receive payment have been established.
Rental income
Rental income from investment properties and subletting of properties is recognized on straight line basis over the term of the
relevant leases.
l) Borrowing costs
Borrowing costs include interest, other costs incurred in connection with borrowing and exchange differences arising from
foreign currency borrowings to the extent that they are regarded as an adjustment to the interest cost. General and specific
borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale. Premium in the form of fees paid
on refinancing of loans are accounted for as an expense over the life of the loan using effective interest rate method. All other
borrowing costs are recognized in the Statement of Profit and Loss in the period in which they are incurred.
m) Taxes on income
Taxes on income comprises of current taxes and deferred taxes. Current tax in the Statement of Profit and Loss is provided as
the amount of tax payable in respect of taxable income for the period using tax rates and tax laws enacted during the period,
together with any adjustment to tax payable in respect of previous years.
Deferred tax is recognized on temporary differences between the carrying amounts of assets (including capital work in progress
towards bearer plants) and liabilities and the amounts used for taxation purposes (tax base), at the tax rates and tax laws
enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognized for the future tax
consequences to the extent it is probable that future taxable profits will be available against which the deductible temporary
differences can be utilized.
Deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss).
Income tax and deferred tax, in so far as it relates to items disclosed under other comprehensive income or equity, are disclosed
separately under other comprehensive income or equity, as applicable.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on net basis, or to realize the asset and settle the
liability simultaneously.
n) Leases
The Company as lessee
The Company's lease asset classes primarily consist of leases for plant & machinery, buildings and furniture and fixtures. The
Company assesses whether a contract contains a lease, at the inception of a contract.
At the date of commencement of the lease, the Company recognizes a right of use asset (ROU) and a corresponding lease
liability for all lease arrangements, in which it is a lessee, except for leases with a term of twelve months or less (short-term
leases), non-lease components (like maintenance charges, etc.) and leases of low value assets.
For these short-term leases, non-lease components and lease of low value assets, the Company recognizes the lease rental
payments as an operating expense.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets
and lease liabilities includes these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any
lease payments made at or prior to the commencement date of the lease plus any initial direct costs. They are subsequently
measured at cost less accumulated depreciation and impairment losses, if any. An impairment loss is recognized where
applicable, when the carrying value of ROU assets of cash generating units exceeds it fair value or value in use, whichever is
higher.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the lease term.
Lease liabilities are initially measured at the present value of the future lease payments. After the commencement date, the
amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.
The Company as lessor
Leases in which the company does not transfer substantially all the risks and rewards incidental to ownership of an asset are
classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Contingent
rents are recognised as revenue in the period in which they are earned.
o) Government Grants
(i) Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be
received and the Company will comply with all attached conditions.
(ii) Government grants relating to income are deferred and recognized in the profit or loss over the period necessary to match
them with the costs that they are intended to compensate and presented within other income.
(iii) Government grants relating to the purchase of property, plant and equipment are included in other liabilities as deferred
income and are credited to Statement of Profit and Loss on a straight-line basis over the expected lives of the related assets
and presented within other income.
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