b) As at 31 March 2025, the fair value of investment properties is Rs. 1585.05 Lakhs (P.Y. Rs. 1629.70 Lakhs).These valuations are based on the valuations performed by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation Rules, 2017. Fair value is based on market value approach. The fair value measurement is categorised in Level 3 of fair value hierarchy. The main input considered by the valuer are govt. rates, property location market reserch as trend comparable value as appropriates.
c) The Company has no restriction on realisability of it's Investment Properties or the remittance of income and proceeds of disposal. There are no contractual obligations to purchase, construct or develop Investment Property or for repairs, maintenance or enhancement as at the year end.
d) Rights, preferences and restrictions attached to shares : The company has only one class of equity shares having par value of ? 10/-.The holders of equity shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.
e) The Company does not have any Holding or Ultimate Holding Company.
h) No Equity Shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.
i) There is no shares issued for consideration other than cash during the period of five years immediately preceding the reporting date.
j) No securities convertible into Equity/ Preference shares have been issued by the Company during the year.
k) No calls are unpaid by any Director or Officer of the Company during the year.
B. Nature and Purpose of Reserve :
1. Securities Premium
Securities Premium is used to record the premium on issue of shares. The reserve is available for utilisation in accordance with the provisions of the Act.
2. Capital Reserve
Capital reserve includes Compensation received from government for compulsory acquisition of certain piece of leasehold Land of tea estates of the Company.
3. General Reserve
The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
4. Retained Earning
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders and Other Comprehensive Income arising from remeasurement of Defined Benefit Obligation net of tax.
5. FVOCI Equity Instrument Reserve
The Company has elected to recognise changes in the fair value of certain investments in equity instruments through other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
Nature of securitie
i) Term Loans :
(a) Federal Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 7.90% p.a. (P.Y. 7.90% p.a.).
(b) HDFC Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 8.50% p.a. (P.Y. 8.50% p.a.).
(c) Punjab National Bank is secured by way of hypothecation of Plant & Machinery and other equipments procured out of the term loan being discharged. Interest rate for PNB term loan is RLLR BSP - 0.50% i.e. 8.75%..
ii) Terms of repayments
i) The outstanding amount of car loan with Federal Bank is repayable in 7 monthly installments starting from Apr, 2025 and the last installment is due in the month of October, 2025.
ii) The outstanding amount of car loan with HDFC Bank is repayable in 15 monthly installments starting from April, 2025 and the last installment is due in the month of June, 2026.
iii) The outstanding amount of term loan with Punjab National Bank is repayable in 13 equal quarterly installments starting from June, 2025 and the last installment is due in the month of June, 2028.
a) Nature of securities
i) Term Loans from :
(a) Federal Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 7.90% p.a. (P.Y. 7.90% p.a.).
(b) HDFC Bank is secured by way of hypothecation of car purchased during the financial year 2022-23. The loan carries interest @ 8.50% p.a. (P.Y. 8.50% p.a.).
(c) Punjab National Bank is secured by way of hypothecation of Plant & Machinery and other equipments procured out of the term loan being discharged. Interest rate for PNB term loan is RLLR BSP - 0.50% i.e. 8.75%.
ii) Cash Credit with Punjab National Bank is secured by hypothecation of tea, prompts, receivables, other current assets both present and future and equitable mortage of the company's Kanu, Teen Ali, Doyang and Dessoie Tea Estate and also secured against personal gurantee of two Directors of the Company.
iii) Overdraft Facility with HDFC Bank is secured by pledged of Fixed Deposit of Rs. 256.68 Lakhs with HDFC Bank .
b) Terms of repayments
i) The outstanding amount of car loan with Federal Bank is repayable in 7 monthly installments starting from Apr, 2025 and the last installment is due in the month of October, 2025.
ii) The outstanding amount of car loan with HDFC Bank is repayable in 15 monthly installments starting from April, 2025 and the last installment is due in the month of June, 2026.
iii) The outstanding amount of term loan with Punjab National Bank is repayable in 13 equal quarterly installments starting from June, 2025 and the last installment is due in the month of June, 2028.
c) The Company has filed quarterly returns or statements with the Banks in lieu of the sanctioned working capital facilities, which are in agreement with the Books of Accounts.
d) The Company has not been declared as willful defaulter by any Bank or Financial Institutions.
The amounts shown above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately. The Company does not expect any reimbursements in respect of the above contingent liabilities.
In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.
(ii) During the year 2019-20, the Company had given a Performance Bank Guarantee of Rs 34.35 Lakhs to PSU against sale of LED Street light .The said Bank Guarantee shall continue to be enforceable till 21/05/2027.
(iii) During the Financial Year 2018-19 ,the Company has given a 10 year standard warranty to different buyers on sale of LED street light units amounting to Rs. 272.84 Lakhs.
(b) Defined Benefit Plan :
The Company provides for gratuity as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.
34. Disclosure pursuant to Indian Accounting Standard - 19 'Employee Benefits' as notified u/s 133 of the Companies Act, 2013. (contd.)
The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Life Insurance Corporation of India (LIC). The Employees Leave Encashment Scheme , which is a defined benefit plan is unfunded.
The present value of the obligation is determined based on acturial valuation using Projected Units/Credit Method, which recognised each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to build up the final obligations.
The following table sets out the details of amount recognised in the financial statements in respect of employee benefit schemes.
(ix) Risk exposure
These plans are exposed to the actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.
Investment risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.
Market/Interest risk: :
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.
Longevity risk:
The impact of longevity risk will depend on whether the benefits are paid before retirement age or after. Typically for the benefits paid on or before the retirement age, the longevity risk is not very material.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. Actual Salary increase that are higher than the assumed salary escalation, will result in increase to the Obligation at a rate that is higher than expected.
Attrition/Withdrawal Assumption
If actual withdrawal rates are higher than assumed withdrawal rates, the benefits will be paid earlier than expected. Similarly if the actual withdrawal rates are lower than assumed, the benefits will be paid later than expected. The impact of this will depend on the demography of the company and the financials assumptions.
Regulatory Risk
Any Changes to the current Regulations by the Government, will increase (in most cases) or Decrease the obligation which is not anticapated. Sometimes, the increase is many fold which will impact the financials quite significantly.
(c) There is no balalnce outstanding in respect of amount due from or due to relted parties.
(d) There is no provision for doubtful debt and no amount has been written off/ written back during the year in respect of amount due from or due to related parties.
(e) The transactions with related parties are inclusive of taxes (i.e. GST) and have been entered at an amount which are not materially different from those on normal commercial terms.
The Cost of unquoted equity investment has been considered as appropriate estimate of fair value because of a wide range of possible fair value measurements & cost represents the best estimate of fair value within that range.
In respect of financial instruments, measured at amortised cost, the fair value approximated their carrying value largely due to short term maturities of these instruments.
Biological Assets other than Bearer Plants :
This section explains the judgement and estimates made in determining the fair value of the biological assets other than bearer plants that are recognised at fair value in the financial statement . The Company has classified its biological assets other than bearer plants into Level 2 in the fair value hierarchy, since their is no active market, the fair value is arrived at based on the observable market prices of Green Leaf adjusted for plucking cost.
(b) Measurement of fair values
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique :
Level 1: Financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting date.
Level 2: Biological Asset other than Bearer plant is measured at fair value which is arrived at based on the observable market prices of Green Leaf adjusted for estimated plucking cost.
Level 3: If one or more of the significant inputs is not based on observable market data, the instruments is included in level 3.
(c) Valuation technique used to determine fair value of Financial Instruments
Specific valuation techniques used to value financial instruments include:
(i) the use of quoted market prices or dealer quotes for similar instruments
(ii) If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant input being the discount rate that reflects the credit risk of counterparty. This is the case with listed instruments where market is not liquid and for unlisted instruments.
37. FINANCIAL RISK MANAGEMENT
The Company's activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, the company has risk management policies as described below :-
(a) Credit Risk
Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial obligations as per the terms of contract. The Company is exposed to credit risk for receivables, cash and cash equivalents. None of the financial instruments of the Company result in material concentration of credit risks.
Credit risk on receivables is minimum since sales through different mode (eg. auction, private ) are made after judging credit worthiness of the customers, advance payment etc.
Credit risk from balances with banks and financial institutions is managed by the Company's in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
(b) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flows. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
(c) Market Risk
(i) Interest rate risk : Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The Company's does not have significant exposure to Long Term Borrowing and also does not have a significant cash flow interest rate risk. Similarly Short term borrowing do not have any significant fair value or interest rate risk due to short term tenure.
(ii) Price risk : The Company invest its surplus fund primarily in debt mutual funds measured at FVTPL and in fixed deposit of Banks,accordingly these do not pose any price risk..Further, Equity price risk is related to change in market reference price of investment in quoted shares. The exposure to equity price risk arises from Investment held and classified in Balance Sheet as FVTOCI. In general the investments are strategic investment and do not held for trading purpose so there is no material equity risk relating to Company's equity investment which are detailed in note no 4 of financial statements.
(d) Agriculture risk :
Cultivation of tea being an agriculture activity, there are certain specific financal risk. These financial risk arise mainly due to adverse weather condition, fluctuation of selling price of finished goods and increase in input cost. The Company manges the above financial risks in the following manner :
- Adequate level of inventory of chemicals, fertilisers and other inputs are maintained so that timely corrective action can be taken in case of adverse weather condition.
- Sufficient level of consumables stores like packing material, coal HSD etc are maintained in order to mitigate financial risk.
- Sufficient working capital facility is obtained from banks so that cultivation and manufacturing and sale of tea is not adversely affected in times of adverse condition.
(e) Other Risk :
Based on a detailed assessment of the recoverability and carrying values of inventories, intangible assets, trade receivables, investments and other financial assets,it has been concluded that no material adustments are required in the financial statements.
38. CAPITAL MANAGEMENT
The Company manges its capital to ensure that the Company will be able to continue as going concern while maximising the return to all stakeholders through optimisation of debt and equity balances. The capital structure of the Company consist of net debt and total equity of the Company.
Net debt implies total borrowing of the Company as reduced by Cash and Cash Equivalent and Equity comprises all component attributable to the owners of the Company.
43. DISCLOSURE UNDER SCHEDULE V TO THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
There are no transaction (other than transactions with related parties as given in Note No. 35 which are required to be disclosed under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
44. Micro and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined based on the information available with the Company and accordingly, there is no due outstanding to Micro and Small Enterprises as on 31st March 2025 and 31st March, 2024.
No interest in terms of section 16 of Micro, Small & Medium Enterprises Development Act, 2006 or otherwise has either been paid or payable or accrued and remaining unpaid as at 31st March 2025
45. CORPORATE SOCIAL RESPONSIBILITY
Gross amount required to be spent by the company in the year towards Corporate Social Responsibility (CSR) as per the provision of section 135 of the Companies Act, 2013 amounts to Rs. NIL (P.Y. Rs. NIL).
46. Details of Loan given,Investments made, guarantee given or security provided covered under section 186 (4) of the Companies Act, 2013 -
(a) The particulars of loans given are stated under "Financial Assets - Loans" in Note No. 11. All these loans are repayable on demand and all the loans have been utilised for general corporate purpose by the recipents.
(b) The relevant details of investments are given in Note Nos. 4.
(c) The Company has not given any guarantee or provided any security.
(d) During the financial year the Company has not granted any loans and advances to any promoter Directors,Key Managerial Persons and related parties.
47. DISCLOSURE UNDER IND AS- 115 REVENUE FROM CONTRACT WITH CUSTOMER -
The Company is engaged into the business of Cultivation and Manufacturing of Tea and trading of LED lights and all related products. During the financial year 2024-25, there is no material impact on Company revenue on applying the said Ind As - 115.
48. The Company's leasing agreements (as lessee) in respect of lease for housing and warehouse, which are on periodic renewal basis. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit & Loss amounts to Rs. 11.41 Lakhs (P.Y. Rs 15.36 Lakhs).
49. OTHER DISCLOSURES :
(a) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.
(b) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.
(c) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
(d) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(e) The Company have not advanced or loaned or invested funds, during the year, to any other person(s) or entity(ies), including foreign entititie (Intermediaries) with the understanding 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 company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(f) The Company have not received funds, during the year, from any person(s) or entity(ies), including foreign entitities (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 company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(g) The company has utilised the Borrowings from Banks and Financial Institutions for the purpose for which it was taken.
(h) During the year the company did not provide any loans or advances (repayable on demand or without specifying any term or period of repayment) to promoters, directors, KMP's and related parties (as defined under Companies Act, 2013,) either severally or jointly with any other persons.
50. SUBSEQUENT EVENT -
The Board of Directors at its meeting held on 22nd May 2025, has recommended a dividend of Rs. 3/- per Equity Share held subject to the shareholders approval at Annual General Meeting.
51. The financial statements were approved for issue by the Board of Directors on 22nd May, 2025.
52. The Company has used accounting software for maintaining its books of account, which has a feature of recording audit trail (edit log) as perthe requirement of the Companies (Accounts) Rules, 2014 as amended by Ministry of Corporate Affairs (MCA) notification dated 24th March 2021. This feature was enabled and operated throughout the year for all relevant transactions, with the following exceptions where the company is still in the process of implementing the audit trail for its books of accounts:
(a) During the year the audit trail feature was not enabled for certain modules, viz., Inventory, Field. Labour and Employee.
(b) The accounting software lacks a feature to track whether the audit trail was enabled continuously throughout the year.
(c) The audit trail feature, where applied, only records the date and the person responsible for the modification.
53. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures to the current year .
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