q) Provisions and contingencies
Provisions
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that
is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows at a pre-tax 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
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed 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 is not recognised because it is not probable that an outflow of resources will be required to settle
the obligation or it cannot be measured with sufficient reliability. The Company does not recognise a contingent liability
but discloses its existence in the Standalone financial statements.
r) Financial instruments
Financial assets
Initial recognition and measurement
Financial assets (other than trade receivables) are recognised when the Company becomes a party to the contractual
provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, except for
those carried at fair value through statement of profit and loss which are measured initially at fair value. Subsequent
measurement of financial assets is described below. Trade receivables are recognised at their transaction price as the
same do not contain significant financing component.
Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified and measured based on the entity's business
model for managing the financial asset and the contractual cash flow characteristics of the financial asset at:
a. Amortised cost
b. Fair value through other comprehensive income (FVTOCI) or
c. Fair value through profit or loss (FVTPL)
All financial assets are reviewed for impairment at least at each reporting date to identify whether there is any objective
evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are
applied for each category of financial assets, which are described below.
(i) Financial asset at amortised cost
Includes assets that are held within a business model where the objective is to hold the financial assets to collect
contractual cash flows and the contractual terms gives rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
These assets are measured subsequently at amortised cost using the effective interest method. The loss
allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit
risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal
to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since
initial recognition.
(ii) Financial assets at fair value through other comprehensive income (FVTOCI)
Includes assets that are held within a business model where the objective is both collecting contractual cash flows
and selling financial assets along with the contractual terms giving rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding. At initial recognition, the Company,
based on its assessment, makes an irrevocable election to present in other comprehensive income the changes
in the fair value of an investment in an equity instrument that is not held for trading. These elections are made on
an instrument-by instrument (i.e.., share-by-share) basis. If the Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the instrument, excluding dividends, impairment gains or losses
and foreign exchange gains and losses, are recognised in other comprehensive income. There is no recycling
of the amounts from OCI to profit or loss, even on sale of investment. The dividends from such instruments are
recognised in statement of profit and loss.
The fair value of financial assets in this category are determined by reference to active market transactions or
using a valuation technique where no active market exists.
The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months
and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an
amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased
significantly since initial recognition. The loss allowance shall be recognised in other comprehensive income and
shall not reduce the carrying amount of the financial asset in the balance sheet.
(iii) Financial assets at fair value through profit or loss (FVTPL)
Financial assets at FVTPL include financial assets that are designated at FVTPL upon initial recognition and financial
assets that are not measured at amortised cost or at fair value through other comprehensive income. All derivative
financial instruments fall into this category, except for those designated and effective as hedging instruments, for
which the hedge accounting requirements apply. Assets in this category are measured at fair value with gains or
losses recognised in statement of profit and loss. The fair value of financial assets in this category are determined
by reference to active market transactions or using a valuation technique where no active market exists.
The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months
and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an
amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased
significantly since initial recognition. The loss allowance shall be recognised in the statement of profit and loss.
De-recognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company's Standalone balance sheet) when:
a. The rights to receive cash flows from the asset have expired, or
b. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ‘pass-through' arrangement; and
either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has
neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of
the asset."
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset,
the Company continues to recognise the transferred asset to the extent of the Company's continuing involvement. In
that case, the Company also recognises an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Company could be required to
repay.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.
The Company's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts,
financial guarantee contracts and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative
financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships
as defined by Ind AS 109 Financial Instruments.
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 risk are recognised in OCI. These gains/ loss are not subsequently
transferred to P&L. 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. The Company has not designated any financial
liability as at fair value through profit and loss.
Loans and borrowings
"This is the category most relevant to the Company. 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. This
category generally applies to borrowings."
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in
the Statement of Profit and Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.
Derivative financial instruments
Initial recognition and subsequent measurement
The Company uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency
risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract
is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the
effective portion of cash flow hedges, which is recognised in OCI and later reclassified to profit or loss when the hedge
item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the
recognition of a non-financial asset or non-financial liability.
s) Impairment of financial assets
In accordance with Ind AS 109 Financial Instruments, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss for financial assets.
The Company tracks credit risk and changes thereon for each customer. For recognition of impairment loss on other
financial assets and risk exposure, the Company determines that whether there has been a significant increase in the
credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract
and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When
estimating the cash flows, an entity is required to consider:
- All contractual terms of the financial instrument over the expected life of the financial instrument. However, in rare
cases when the expected life of the financial instrument cannot be estimated reliably, then the entity uses the remaining
contractual term of the financial instrument.
- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
The Company uses default rate for credit risk to determine impairment loss allowance on portfolio of its trade receivables.
Trade receivables
The Company applies approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses
to be recognised from initial recognition of receivables.
Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there
has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly,
impairment loss is provided.
The presumption under Ind AS 109 with reference to significant increases in credit risk since initial recognition (when
financial assets are more than 30 days past due), has been rebutted and is not applicable to the Company, as the
Company is able to collect a significant portion of its receivables that exceed the due date."
Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market 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.
All assets and liabilities for which fair value is measured or disclosed in the Standalone financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the
fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable
| Segment reporting
The Company is engaged in plantations having tea and rubber estates. The business segments identified for segment
reporting are Tea, Rubber and Others as the Chief Operating Decision Maker (CODM) reviews business performance
at these levels. The Company has considered business segments as the primary segment. The business segments are
tea, rubber and others which have been identified taking into account the organisational structure as well as the differing
risks and returns of these segments.
I Earnings/ (loss) per share (EPS)
Basic EPS are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity
share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting
period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus
issue that have changed the number of equity shares outstanding, without a corresponding change in resources.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjusting for
interest on the convertible preference shares, if any) by the weighted average number of equity shares outstanding during
the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential
equity shares into equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
) Leases
"Effective from 1st April 2019, the Company adopted Ind AS 116 - Leases and applied the standard to all lease contracts
existing as on 1st April 2019 using the modified retrospective method on the date of initial application i.e. 1st April 2019.
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.
i. As a lessee
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any
lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate
of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is
located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date
to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated
useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment.
In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain
re-measurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's
incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.
Subsequently, the lease liability is measured at amortised cost using the effective interest method.
It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there
is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or
if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount
of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been
reduced to zero.
Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases of real
estate properties that have a lease term of 12 months. The Company recognises the lease payments associated
with these leases as an expense on a straight-line basis over the lease term.
Operating Lease
In the comparative period, leases in which a significant portion of the risks and rewards of ownership are not
transferred to the Company as lessee are classified as operating leases. Payments made under operating leases
(net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period
of the lease unless the payments are structured to increase in line with expected general inflation to compensate
for the lessor's expected inflationary cost increases."
ii. As a lessor
Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line
basis over the lease term unless the receipts are structured to increase in line with expected general inflation to
compensate for the expected inflationary cost increases. The respective leased assets are included in the balance
sheet based on their nature."
x) Cash and cash equivalents
Cash and cash equivalent in the statement of financial position comprises of cash at banks and on hand, demand
deposits, short-term deposits with an original maturity of three months or less and highly liquid investments that are
readily convertible into known amounts of cash, which are subject to an insignificant risk of changes in value.
y) Recent accounting pronouncements
Standards issued but not effective on Balance Sheet date:
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 31,2025, MCA has notified
Ind AS 117 - Insurance Contracts and amendments to Ind As 116 - Leases, relating to sale and lease back transactions,
applicable from April 1, 2024. The Company has assessed that there is no significant impact on its financial statements.
Ind AS 21 - Foreign Currency Reporting
The amendments gives clear guidance on how to estimate the 'spot exchange rate' when two currencies cannot be
exchanged easily. The new rules will be effective from April 2025. The Company does not expect this amendment to
have any significant impact in its financial statements.
(a) Title deeds of the immovable properties set out in the above table are in the name of Malayalam Plantations Limited (MPL)/
Harrisons and Crossfield Limited (HCL). The immovable properties of MPL got transferred to and vested in Malayalam
Plantations (India) Limited (MPIL) vide a Scheme of Arrangement and Amalgamation in 1978. Further, the immovable
properties of HCL got transferred and vested in MPIL vide a Scheme of Arrangement and Amalgamation in 1984. The name
of MPIL, Company incorporated in 1978, got changed to Harrisons Malayalam Limited in 1984.
(b) Also refer note 42 for ongoing land litigations.
(iii) Property, plant and equipment pledged as security
Details of properties pledged are as per note 37.
(iv) Capital work in progress (CWIP)
Capital work in progress mainly represents the immature bearer plants awaiting capitalisation. The capitalised portion of the
same is disclosed separately in the above table.
(a) Details of the Company’s CWIP ageing as on 31 March 2025 are as follows:
The Company has unabsorbed depreciation and carry forward losses of earlier years and certain exempt income included
in the total income. Accordingly the tax expenses is nil in the current and previous years. Deferred tax assets on unabsorbed
depreciation and carry forward losses have been recognized to the extent of deferred tax liability / assets on temporary
differences in accordance with Ind AS 12 “Income Taxes”.
i) The Company has unabsorbed business loss of ' 1,901.23 under the provision of Income Tax Act, 1961 and ' 7,412.54
under the provision of Kerala Agricultural Income Tax Act, 1991 which expires on the 8th year from the end of the
relevant assessment year.
ii) The Company has unabsorbed depreciation loss under the provisions of Income-tax Act, 1961 amounting to ' 3,178.43,
which has no limit for expiry.
iii) The Company elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961, as introduced
by the Taxation Laws (Amendment) ordinance 2019. Hence the Company has not accounted for MAT liability
Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate
37 Details of security, repayment terms, applicable interest rates
Term loan from banks - Non Current
a. Loan availed of ' 1,223.48 during 2017-18 and ' 1776.52 during 2018 - 19 is repayable in 24 equal quarterly
instalments commencing from June 2019, is secured by equitable mortgage created on immovable properties of the
Company situated in Kollam, Fort Kochi and Coimbatore. The loan carries an interest rate of MCLR plus applicable
spread payable on a monthly basis from disbursement of the loan. Year end balance of the loan is nil net of processing
fees (As at 31 March 2024 : ' 673.23)
b. Loan availed of ' 3,000.00 during 2018 - 19 is repayable in 20 quarterly instalments repayable as 8 quarterly instalments
of ' 25.00 commencing from September 2019 up to December 2021, 8 quarterly instalments of ' 225.00 from March
2023 up to December 2023 and 4 quarterly final instalments of ' 250.00 from March 2024 up to December 2024, is
secured by a charge created on immovable property of the Company situated at Kumbazha rubber estate, Kerala. The
loan carries an interest of MCLR plus applicable spread payable on a monthly from the disbursement of the loan. Year
end balance of the loan is nil net of processing fee (As at 31 March 2024 : ' 715.20 )
c. Loan availed of ' 3000 during 2021-22 is repayable in 20 quarterly instalments repayable as 8 quarterly instalments
of ' 75.00 commencing from June 2023 up to March 2025, 12 quarterly instalments of ' 200 from June 2025 up
to March 2028, is secured by a charge created on immovable property of the company situated at Kumbazha rubber
estate, Kerala. The loan carries an interest of MCLR plus applicable spread payable on a monthly from the disbursement
of the loan. Year end balance of the loan is ' 2,375.62 net of processing fee (As at 31 March 2024 : ' 2,700.00 )
d. Agri Infra Loan availed of ' 175.50 during 2021-22 is repayable in 57 monthly instalments repayable as 56 monthly
instalments of ' 3.09 commencing from April 2022 up to November 2026 and one monthly instalment of ' 2.46 in
December 2026, is secured by first and exclusive charge on assets created out of bank finance. The loan carries an
interest of MCLR plus applicable spread with an interest subvention payable on a monthly from the disbursement of the
loan. Year end balance of the loan is ' 62.61 (As at 31 March 2024 : ' 101.34 )
e. The Company has availed the moratorium on term loan facilities offered by banks as part of COVID-19 regulatory
package announced by RBI vide Circular DOR.No.BPBC.47/21.04.048/2019-20 dated March 27, 2020 and Circular
DOR.No.BPBC.63/21.04.048/2019-20 dated April 17, 2020. The interest accrued during the moratorium period was
converted in to a deferred interest term loan and is repayable over the balance tenure of the term loans. The amount
outstanding as on 31st March 2025 is nil (As on 31 March 2024: ' 42.20 ) .
f. Loan availed of ' 249.97 during 2022-23 and ' 26.01 during 2023-24 is repayable in 60 equal monthly instalments
commencing from the date of availment, is secured by a charge created on assets created out of bank finance. The loan
carries an interest of MCLR plus applicable spread payable on a monthly from the disbursement of the loan. Year end
balance of the loan is ' 153.39 net of processing fees (As at 31 March 2024 : ' 211.74).
g. Loan availed of ' 178.21 during 2022-23 and ' 119.03 during 2023-24 is repayable in 60 equal monthly instalments
commencing from the date of availment. The loan carries an interest of MCLR plus applicable spread payable on a
monthly from the disbursement of the loan. Year end balance of the loan is ' 183.50 net of processing fees (As at 31
March 2024 : ' 243.40).
h. Loan availed of ' 23.60 during 2022-23 is repayable in 60 equal monthly instalments commencing from the date of
availment, is secured by a charge created on assets created out of bank finance. The loan carries an interest of MCLR
plus applicable spread payable on a monthly from the disbursement of the loan. Year end balance of the loan is ' 14.67
net of processing fees (As at 31 March 2024 : ' 18.99).
i. Loan availed of ' 27.83 during 2023-2024 is repayable in 60 monthly instalments commencing from the date of
availment, is secured by a charge created on assets created out of bank finance. The loan carries an interest of MCLR
plus applicable spread payable on a monthly from the disbursement of the loan. Year end balance of the loan is ' 20.34
net of processing fees (As at 31 March 2024 : ' 25.27).
j. Agri Infra Loan availed of ' 148.00 during 2023-24 is repayable in 60 monthly instalments repayable as 59 monthly
instalments of ' 2.47 commencing from October 2023 up to August 2028 and one monthly instalment of ' 2.27 in
September 2028, is secured by first and exclusive charge on assets created out of bank finance. The loan carries an
interest of MCLR plus applicable spread with an interest subvention payable on a monthly from the disbursement of the
loan. Year end balance of the loan is ' 68.95 (As at 31 March 2024 : ' 91.53)
k. Loan availed of ' 103.00 during 2023-24 is repayable in 57 monthly instalments of ' 1.80 commencing from the date
of availment. The loan carries an interest of MCLR plus applicable spread payable on a monthly from the disbursement
of the loan. Year end balance of the loan is ' 65.42 (As at 31 March 2024 : ' 87.84).
l. Loan availed of ' 750.00 during 2023-24 is repayable in 51 equal monthly instalments of ' 15.00 commencing after 9
months from the date of availment. The loan carries an interest of MCLR plus applicable spread payable on a monthly
from the disbursement of the loan. Year end balance of the loan is ' 544.12 (As at 31 March 2024 : ' 720.59).
m. Loan availed of ' 2,861 during 2024-25 is repayable in 12 equal monthly instalments of ' 7 commencing from April
2025 up to March 2026, 24 monthly equal instalments of ' 13 from April 2026 up to March 2028, 36 monthly equal
instalments of ' 50 from April 2028 up to March 2031, 23 monthly equal instalments of ' 54 from April 2031 up
to February 2033 and 1 final instalments of ' 62.00 in March 2033., is secured by a charge created on immovable
property of the Company situated at Coimbatore, Tamil Nadu and assets created out of bank finance. The loan carries
an interest of repo plus applicable spread payable on a monthly from the disbursement of the loan. Year end balance of
the loan is ' 2,861 net of processing fee (As at 31 March 2024 : ' nil )
n. Agri Infra Loan availed of ' 109 during 2024-25 is repayable in 60 monthly instalments of ' 1.81 commencing from
June 2024 up to May 2029 , is secured by first and exclusive charge on assets created out of bank finance. The
loan carries an interest of MCLR plus applicable spread with an interest subvention payable on a monthly from the
disbursement of the loan. Year end balance of the loan is ' 78.17 (As at 31 March 2024 : ' nil)
o. Agri Infra Loan availed of ' 136 during 2024-25 is repayable in 60 monthly instalments of ' 2.26 commencing from July
2024 up to June 2029 , is secured by first and exclusive charge on assets created out of bank finance. The loan carries
an interest of MCLR plus applicable spread with an interest subvention payable on a monthly from the disbursement of
the loan. Year end balance of the loan is ' 101.20 (As at 31 March 2024 : ' nil)
p. Loan availed of ' 42.56 during 2024-2025 is repayable in 60 monthly instalments commencing from the date of
availment, is secured by a charge created on assets created out of bank finance. The loan carries an interest of MCLR
Derivative financial instruments
The forward contracts in the financial year 2024-25 or 2023-24 are nil.
(ii) Interest rate risk
The Company's fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk
as defined in Ind AS 107, ‘Financial Instruments' - Disclosures. As neither the carrying amount nor the future cash flows
will fluctuate because of a change in market interest rates.
41 Employee benefit obligations
The Company has provided for the gratuity liability and leave encashment liability (defined benefit plan), as per actuarial
valuation carried out by an independent actuary on the Balance Sheet date.
a) Defined contribution plan
The company makes contribution to statutory provident fund as per Employees Provident Fund and Miscellaneous
Provision Act, 1952 for its employees. Also the company makes contribution to superannuation fund for its employees.
This is a defined contribution plan as per Ind AS 19, Employee benefits. Total contribution made during the year
' 1,647.56 (31 March 2024: ' 1,680.90).
b) Defined benefit plans
The company has provided for gratuity and leave encashment liability, for its employees as per actuarial valuation carried
out by an independent actuary on the Balance Sheet date. The valuation has been carried out using the Project Unit
Credit Method as per Ind AS 19 to determine the present value of Defined Benefit Obligations and the related current
service cost. This is a defined benefit plan as per Ind AS 19.
The gratuity plan is governed by the provisions of the Payment of Gratuity Act, 1972 (as amended from time to time).
Employees are entitled to all the benefits enlisted under this Act.
c) Sensitivity analysis
Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which
may vary overtime. Thus, the company is exposed to various risks in providing the above benefit which are as
follows:
i) Interest rate risk
The present value of the defined benefit liability is calculated using a discount rate determined by reference to
market yields of Government bonds. The estimated term of the bonds is consistent with the estimated term of the
defined benefit obligation (DBO) and it is denominated in INR. A decrease in market yield on government bonds
will increase the Company's defined benefit liability.
ii) Liquidity risk
This is the risk when the Company is not able to meet the short-term gratuity payouts. This may arise due to non
availability of enough cash/cash equivalents to meet the liabilities or holding of illiquid assets not being sold in
time.
iii) Salary escalation risk
The present value of the defined benefit plan is calculated with the assumption of salary increase rate of employees
in future. Deviation in the rate of interest in future for employees from the rate of increase in salary used to
determine the present value of obligation will have a bearing on the plan's liability.
iv) Demographic risk
The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is
exposed to the risk of actual experience turning out to be worse compared to the assumption.
v) Regulatory risk
Gratuity benefits are paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended
from time to time). There is a risk of change in regulations requiring higher gratuity payouts.
d. An area of 3123 hectares (31 March 2024: 3123 hectares) in respect of which a civil suit filed by Government of Kerala
seeking declaration of title and recovery of possession of Kumbazha, Koney and Lahai rubber estates in Pathanamathitta
district is currently pending consideration before the Subordinate Judges Court, Pathanamthitta.
e. An area of 2554 hectares (31 March 2024: 2554 hectares) in respect of which a civil suit filed by Government of Kerala
seeking declaration of title and recovery of possession in respect of Isfield, Venture and Nagamallay rubber estates in
Kollam district is currently pending consideration before Subordinate Judges Court, Punalur.
f. An area of 572 hectares (31 March 2024: 572 hectares) in respect of which a civil suit filed by Government of Kerala
seeking declaration of title and recovery of possession of Mundakayam rubber estate in Kottayam district is currently
pending consideration before Subordinate Judges Court, Pala.
g. An area of 992 hectares in respect of which a civil suit filed by Government of Kerala seeking declaration of title and
recovery of possession of Upper Surianalle tea estate in Idukki District is currently pending consideration before the
Subordinate Judges Court Devikulam.
h. An area of 297.17 hectares in respect of which a civil suit filed by Government of Kerala seeking declaration of title
and recovery of possession of part of Arrapetta tea estate in Wayanad district is currently pending consideration before
Subordinate Judges Court, Sultan Bathery.
i. An area of 184.40 hectares in respect of which a civil suit filed by Government of Kerala seeking declaration of title
and recovery of possession of Touramulla tea estate in Wayanad district is currently pending consideration before
Subordinate Judges Court, Sultan Bathery.
j. An area of 3,683.19 hectares in respect of which a civil suit filed by Government of Kerala seeking declaration of title
and recovery of possession of Moongalaar, Wallardie, Pattumallay and Panniar tea estates in Idukki district is currently
pending consideration before Subordinate Judges Court, Kattapana.
k. An area of 1982.45 hectares (31 March 2024: 1982.45 hectares) of Mooply Valley estates notified by the Government
of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court,
Irinjalakuda.
The above litigations are considered as Key audit matter.
42 (B) Land litigations not considered as Key audit matter
a. The Government by order dated 04 January 2008 directed the Company to remit an amount ' 96.84 lakhs alleging
violation of lease condition in Mooply Valley Estates. The said order has been challenged before the Sub Court,
Irinjalakuda and by order dated 08.04.2008 granted temporary prohibitory injunction restraining Government from
taking any further action. On appeal filed by the Government, the Hon'ble High Court by judgment dated 04 August
2008 sustained the order of injunction and directed the Company to furnish security for ' 96.84 lakhs and accordingly
the Company has furnished bank guarantee for the said amount and the suit is still pending.
b. An area of 1074.18 hectares (approximate) [31 March 2024: 1074.18 hectares (approximate)] in respect of which
cases filed by “Janmies” (original owners) of Koney, Kaliyar and Arrapetta Estates challenging the validity of the lease is
pending before the Sub-Court, Pathanamthitta, Sultan Bathery, Thodupuzha and High Court of Kerala.
c. An area of 178 hectares (approximately) [31 March 2024: 178 hectares (approximate)] deemed to have been vested
with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company's
claim for the exclusion of the area from the purview of the Act is pending decision of the Forest Tribunal, Palghat and
restoration by the Forest Department.
d. The Vythiri Taluk Land Board's order directing the Company to surrender 707 hectares (approximately) [31 March 2024:
707 hectares (approximate)] as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High
Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythiri Taluk Land
Board for fresh consideration and disposal.
e. An area of 415 hectares (approximately) [31 March 2024: 415 hectares (approximate)] held to be surplus under the
Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded
the matter for fresh consideration by the Authorised Officer, Coimbatore.
f. The Government of Kerala vide G.O dated 27 June 2018 waived the levy of Seigniorage on rubber trees cut and removed
from the rubber plantations. A writ petition has been filed before the Hon'ble High Court of Kerala challenging the said
Government Order and the Hon'ble Court by interim order dated 18 February 2019 has permitted felling of trees on
condition that a bond, undertaking to pay Seigniorage is furnished to the Government of Kerala, if ultimately the writ
petition is allowed. The matter is pending consideration.
g. An extent of approximately 142 Hectares of rubber planted area in Kumbazha Estate has been encroached by the
members of Sadhu Jana Vimochana Samyuktha Vedi in 2007 and the Company filed a writ petition seeking eviction
of the encroachers and Police protection to its property. By judgment dated 24 August 2007, the Hon'ble High Court
directed the Government to evict the encroachers. However, the said direction was not complied with and a contempt
case in this connection is still pending consideration before the Hon'ble High Court.
h. The Special Officer appointed by the Government had issued a notice under the Kerala Land Conservancy Act, for
inspecting the properties of the company in Wayanad District. The company challenged the notice before the Hon'ble
High Court of Kerala and by judgment dated 11 April 2018 the said notice was set aside by the Hon'ble Court. The
Government filed a review petition in the matter and by order dated 06 August 2018 the Hon'ble Court directed the
Company to file its objections to the inspection notice. Accordingly the Company has filed its detailed objection with
relevant documents with the Special Officer, who has intimated that since Government is filing a civil suit no further
action is being initiated against the Company under Land Conservancy Act.
i. An area of 2.36 Hectares in respect of which a civil suit filed by Government of Kerala seeking declaration of title
and recovery of possession of property in Mundakkal in Kollam District is currently pending consideration before the
Subordinate Judges Court Kollam.
In the opinion of the management the outcome of above litigations will be in favour of the Company and there is no
financial impact.
Segment information
The company's core business is production of natural rubber and tea. The operations are conducted through plantation
estates and factories based in Kerala and Tamil Nadu. The company has considered business segments as the primary
segment. The business segments are tea, rubber and others which have been identified taking into account the organisational
structure as well as differing risks and returns of these segments. The results for rubber segment includes income from sale
of rubber trees.
Other Segment comprise of Fruits, Spices and others and Wayanad Medical Fund.
Segment information for the reporting period is as follows:
46 Other regulatory disclosures
a) As per the information available with the Company, the Company has no transactions with the companies struck off
under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
b) There has been no charges or satisfaction yet to be registered with ROC beyond the statutory period.
c) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding
(whether recorded in writing or otherwise) that the intermediary shall :
i) 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).
ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
d) The Company has not received any fund from any persons or entities, including foreign entities (funding party) with the
understanding (whether recorded in writing or otherwise) that the company shall :
i) 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
ii) provided any guarantee, security or the like on behalf of the ultimate beneficiaries.
e) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended 31
March 2025.
f) The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013
read with Companies (Restriction on number of layers) Rules, 2017.
g) No loans or advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined
under Companies Act, 2013) either severally or jointly with any other person, that are repayable on demand or without
specifying any terms or period of repayment, except as disclosed below:
j) The Company does not have any surrendered or undisclosed income during the year in the tax assessments under the
Income Tax Act, 1961.
k) There are no approved scheme of arrangements as on the balance sheet date.
47 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of
the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies
which uses accounting software for maintaining its books of account, shall use only such accounting software which has a
feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account
along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company uses a legacy accounting software to process the payrolls of estate workers and also to maintain the fixed
asset records. Since this is an age-old software and is at the risk of obsolescence, the Company is currently in the process of
migrating the books of accounts related to estate workers and fixed assets completely to MS Dynamics 365 and hence audit
trail feature was not there in such accounting software.
The Company uses SaaS based accounting software for maintaining its accounting records. The ‘Independent Service
Auditor's Assurance Report on the Description of Controls, their Design and Operating Effectiveness' (‘Type 2 report' issued
in accordance with ISAE 3402, Assurance Reports on Controls at a Service Organisation) does not include details on the
existence on audit trail feature and for record retention at the database level . However, the audit trail (edit log) feature at the
application level was operating for all relevant transactions recorded in such accounting software.
The Company uses another SaaS based accounting software for maintaining employee records and processing the paysheets
of executives and staff. The said accounting software is operated by a third-party software service provider. The ‘Independent
Service Auditor's Report on a Description of the Service Organization's System and the Suitability of the Design and Operating
Effectiveness of Controls' (based on the criteria for a description of a service organization's system as set forth in DC Section
200, 2018 Description Criteria for a Description of a Service Organization's System in a SOC 2 Report, in AICPA Description
criteria), does not provide information on retention of audit trail (edit logs) for any direct changes made at the database level.
However, the audit trail (edit log) feature at the application level was operating for all relevant transactions recorded in the
software.
48 Prior year comparatives
Prior year comparatives have been regrouped / reclassified where necessary to conform with the current period / year
classification. The impact of such restatements / regroupings is not material to Standalone financial statements.
This is the notes forming part of the Standalone financial statements referred to in our report of even date.
For and on behalf of the Board of Directors of Harrisons Malayalam Limited
For Walker Chandiok & Co LLP Santosh Kumar Cherian M. George
Chartered Accountants Whole Time Director Whole Time Director
Firm’s Registration No.: 001076N/N500013 DIN: 08167332 DIN: 07916123
Rrajesh Raghvan Sajish George Binu Thomas
Partner Chief Financial Officer Company Secretary
Membership No.: 400510 M. No. 11208
Kochi Kochi
23 May 2025 23 May 2025
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