Notes to the Financial Statements as at and for the year ended 31st March 2019
(All amounts in Rs. thousands unless otherwise stated)
Note 30. Segment Information
30.1 The Whole-time Directors of the Company have been identified as the Chief Operating Decision Makers (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company's performance and allocates resources based on an analysis of various performance indicators for business as a whole. The Company's main business is growing and manufacturing of tea and letting of Commercial Property. Income from investments and interest income are not allocated to segments as the related activities are carried out by the central treasury function which manages the cash position of the Company.
30.2 (a) The business operations are restricted in India. The Company operates in domestic and foregin markets. The Company has opted to disclose segment information using quantitative threshold as per Ind AS 108.
|
Description
|
31st March 2019
|
31st March 2018
|
Segment I
|
Segment II
|
Total
|
Segment I
|
Segment II
|
Total
|
Plantation
|
Commercial Property
|
Plantation
|
Commercial Property
|
Segment revenue
|
|
|
|
|
|
|
External sales
|
6,15,278
|
41,725
|
6,57,003
|
5,75,844
|
42,480
|
6,18,324
|
Inter-segment sales
|
-
|
-
|
-
|
-
|
-
|
-
|
Total Revenue
|
6,15,278
|
41,725
|
6,57,003
|
5,75,844
|
42,480
|
6,18,324
|
Segment results - Profit
|
1,25,077
|
28,035
|
1,53,112
|
1,12,254
|
27,372
|
1,39,626
|
Unallocated corporate expenses (HO expense)
|
|
|
13,314
|
|
|
9,635
|
Profit from operations
|
|
|
1,39,798
|
|
|
1,29,991
|
Investment income
|
|
|
30,926
|
|
|
23,700
|
Finance cost
|
|
|
714
|
|
|
683
|
I no me Taxes
|
|
|
26,287
|
|
|
31,504
|
Net Profit
|
|
|
1,43,723
|
|
|
1,21,504
|
Segment assets
|
3,47,679
|
2,08,075
|
5,55,754
|
3,58,980
|
1,76,639
|
5,35,619
|
Unallocated corporate assets
|
|
|
9,19,824
|
|
|
7,14,108
|
Total Assets
|
|
|
14,75,578
|
|
|
12,49,727
|
Segment liabilities
|
44,850
|
15,858
|
60,708
|
52,962
|
16,075
|
69,037
|
Unallocated corporate liabilities Total liabilities
|
|
|
21,208
|
|
|
15,257
|
81,916
|
84,294
|
30.2 (b) Segment Information - Geographical
|
Year ended March 31, 2019
|
Year ended March 31, 2018
|
(i) Revenue
|
|
|
India
|
2,76,919
|
3,08,469
|
Outside India
|
|
|
|
|
3,80,084
|
3,09,855
|
Total
|
|
|
|
|
6,57,003
|
6,18,324
|
(ii) Assets*
|
|
|
|
|
|
|
India
|
|
|
|
|
14,42,418
|
12,09,849
|
Outside India
|
|
|
|
|
33,160
|
39,878
|
Total
|
|
|
|
|
14,75,578
|
12,49,727
|
Trade receivable are disclosed on geographical locations of customers. Other assets are not identifiable separately to any reportable segments as these are used interchangeably between segments and are disclosed under "India".
|
Notes to the Financial Statements as at and for the year ended 31st March 2019 Note 31. Fair Value Measurements (All amounts in Rs thousands unless otherwise stated)
(a) Financial Instrument by category and hierarchy
Particulars
|
Hierarchy
|
Notes
|
31st March 2019
|
31st March 2018
|
FVTPL
|
FVOCI
|
Amortized cost
|
FVTPL
|
FVOCI
|
Amortized cost
|
Financial assets (i) Financial assets at fair value
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
|
|
Equity instruments - quoted
|
1
|
5a
|
-
|
34,171
|
-
|
-
|
40,310
|
-
|
Equity instruments - unquoted
|
3
|
5a
|
-
|
1,88,010
|
-
|
-
|
1,91,787
|
-
|
Mutual funds
|
2
|
5a
|
5,04,591
|
-
|
-
|
3,80,670
|
-
|
-
|
(ii) Financial assets at amortized cost
|
|
|
|
|
|
|
|
|
Trade receivables
|
3
|
5b
|
-
|
-
|
44,435
|
-
|
-
|
53,349
|
Cash and cash equivalents
|
3
|
5c
|
-
|
-
|
1,78,727
|
-
|
-
|
75,069
|
Other financial assets
|
3
|
5d
|
-
|
-
|
29,566
|
-
|
-
|
33,820
|
Financial liabilities
|
|
|
|
|
|
|
|
|
(i) Financial liabilities held at amortized cost
|
|
|
|
|
|
|
|
|
Trade payables
|
3
|
10b
|
-
|
-
|
14,791
|
-
|
-
|
12,114
|
Other financial liabilities
|
3
|
10a
|
-
|
-
|
23,062
|
-
|
-
|
31,301
|
Investment in the Associate was valued at cost and hence not considered for categorisation.
Hierarchy
Level 1: Level 1 hierarchy includes 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 determined using the closing price as at the reporting period. Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use
of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.
(b) Valuation processes
The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team
the Companys policy.
(c) Fair value of financial assets and liabilities measured at amortised cost
The carrying amounts of trade receivables, trade payables, cash and cash equivalents, other financial assets and other financial liabilities(current) are considered to be the same as their fair values, due to their short-term nature and categorized as Level 3 hierarchy.
(d) Valuation techniques
(i) Quoted equity instruments are valued using quoted prices.
(ii) Open ended Mutual funds are valued at NAVs declared.
(iii) The fair value of non current financial liabilties is determined using discounted cash flow analysis.
Notes to the Financial Statements as at and for the year ended 31st March 2019
(All amounts in Rs. thousands unless otherwise stated)
Note 32. Financial Risk Management
The Company's activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.
Risk
|
Exposure arising from
|
Measurement
|
Management
|
Credit risk
|
Cash and cash equivalents, bank balances other than cash and cash equivalents, investments in equity instruments, trade receivables.
|
Ageing analysis, Credit ratings
|
Diversification of bank deposits, review of credit ratings, credit limits and letters of credit
|
Liquidity risk
|
Trade payables and other liabilities
|
Rolling cash flow forecasts
|
Availability of committed credit lines
|
Market risk -foreign exchange
|
Export trade receivables
|
Sensitivity analysis of exchange rates
|
Forward contracts and monitoring exchange rate movements
|
Market risk -security prices
|
Investment in equity instruments
|
Sensitivity analysis of the share prices
|
Portfolio Diversification
|
The Company's risk management is carried out by the treasury team under policies approved by the Board of Directors. The treasury identifies, evaluates and hedges financial risks in close co-operation with the company's operating units. The Board provides written policies for overall risk management, as well as policies covering specific areas, such as foreign exchange risk and credit risk.
Notes to the Financial Statements as at and for the year ended 31st March 2019
(All amounts in Rs. thousands unless otherwise stated)
32. Financial risk management - (Contd.) (A) Credit risk
Credit risk arises from cash and cash equivalents, bank balances other than cash and cash equivalents, financial assets measured at amortised cost and credit exposures to customers including outstanding receivables, advances given to vendors.
(i) Credit risk management
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with Nationalised / Scheduled Commercial banks. Investments in equity are made only in AA rated instruments. The board of directors periodically reviews the investment portfolio of the Company.Credit risk with respect to domestic and export trade receivables is managed by the Company through setting up credit limits for customers and also periodically reviewing their credit worthiness. The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available, reasonable and supportive forward-looking information. Based on the assessment made by the Company, credit risk increases significantly since the initial recognition if the financial assets are realised after three months from the due date. A default on a financial asset is when the counterparty fails to make contractual payments within six months from the due date. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.
(ii) Provision for expected credit losses
The Company provides for loss allowance based on 12 month expected credit loss except in the case of trade receivables which are provided based on life-time expected credit loss. For the assessment of 12 month or life-time expected credit loss, assets are classified into three categories as Standard, substandard and doubtful based on the counter-party's capacity to meet the obligations and provision is determined accordingly. Standard assets are those where the risk of default is negligible, sub-standard assets are those where the credit risk is significantly increased since inception and doubtful assets are those where the assets are impaired.
Year ended March 31, 2019:
(a)
|
Expected credit loss for trade receivables under simplified approach:
|
|
Ageing
|
Less than six months
|
More than six months
|
Total
|
|
Gross carrying amount
|
44,435
|
-
|
44,435
|
|
Loss allowance rate
|
0%
|
0%
|
0%
|
|
Expected credit losses (Loss allowance provision)
|
-
|
-
|
-
|
|
Carrying amount of trade receivables (net of impairment)
|
44,435
|
-
|
44,435
|
(b) Expected credit loss for other financial assets
The other financial assets amounting to Rs. 29,566/- are classified as standard assets and hence no provision for expected credit loss has been made.
Year ended March 31, 2018:
(a)
|
Expected credit loss for trade receivables under simplified approach
|
|
Ageing
|
Less than six months
|
More than six months
|
Total
|
|
Gross carrying amount
|
53,349
|
-
|
53,349
|
|
Loss allowance rate
|
0%
|
0%
|
0%
|
|
Expected credit losses (Loss allowance provision)
|
-
|
-
|
-
|
|
Carrying amount of trade receivables (net of impairment)
|
53,349
|
-
|
53,349
|
(A) Credit risk - (Contd.)
(b) Expected credit loss for other financial assets
The other financial assets amounting to Rs.33,820/- are classified as standard assets and hence no provision for expected credit loss has been made.
(iii) Reconciliation of loss allowance provision- Trade receivables, loans and other financial assets
There is no loss allowance provision created for trade receivables and other financial assets.
During the years ended March 31, 2019 and March 31, 2018 the Company has not made any write offs of trade receivables.
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash equivalents, liquid mutual funds and the availability of funding through an adequate amount of internal financing by way of daily cash flow projection to meet obligations. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability of funds. Management monitors daily forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows.
(i) Financing arrangements
The Company does not have any borrowing facility at the end of the reporting period (ii) Maturities of financial liabilities
The tables below analyse the financial liabilities into relevant maturity groupings based on their contractual maturities. The Company has only non-derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. Balance due beyond 12 months are carried at amortised cost.
Contractual maturities of financial liabilities:
|
Less than 6 months
|
6 months to 1 year
|
More than 1 year
|
March 31, 2019
|
|
|
|
Non-derivatives
|
|
|
|
Trade payables
|
14,791
|
-
|
-
|
Other financial liabilities
|
8,398
|
-
|
15,910
|
Total non-derivative liabilities
|
23,189
|
-
|
15,910
|
|
Less than 6 months
|
6 months to 1 year
|
More than 1 year
|
March 31, 2018
|
|
|
|
Non-derivatives
|
|
|
|
Trade payables
|
12,114
|
-
|
-
|
Other financial liabilities
|
17,350
|
-
|
15,910
|
Total non-derivative liabilities
|
29,464
|
-
|
15,910
|
(C) Market risk
(i) Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions with respect to USD,EURO and GBP on account of sale of tea. Foreign exchange risk arises from recognised assets denominated in a currency that is not the Company's functional currency (Rs). The risk is measured through a forecast of foreign currency cash flows that would arise due to the underlying assets and liabilities held. The objective of the hedges is to minimise the volatility of the INR cash flows arising on account of the underlying assets.
The Company has not taken options, futures or any other derivative instruments other than foreign exchange forward contracts to manage the foreign currency risk. The strategy followed by the Company is tracking the foreign currency exchange rates.
Foreign currency exposure
The Company's exposure to foreign currency risk at the end of the reporting period expressed is as follows:
Trade Receivables
|
March 31, 2019
|
March 31, 2018
|
Particulars
|
|
|
USD [3,68,308 (March 31, 2018: 1,91,895)]
|
22,816
|
12,482
|
EURO [1,20,360 (March 31,2018 : 2,94,043)]
|
9,326
|
23,706
|
GBP [Nil (March 31 ,2018 : 73,688)]
|
-
|
6,800
|
AUD [20,635 (March 31 , 2018 : Nil)]
|
1,017
|
-
|
Total
|
33,159
|
42,988
|
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments:
The following table details Company's sensitivity to a 10% increase and decrease in the exchange rate. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their transition at the period end for 10% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the INR strengthens 10% against the relevant currency. For a 10% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity, and the balance would be negative.
|
Impact on Profit after tax
|
March 31, 2019
|
March 31, 2018
|
USD
|
2,282
|
1,248
|
EURO
|
933
|
2,371
|
GBP
|
-
|
680
|
AUD
|
102
|
-
|
(ii) Price risk
(a) Exposure: The Company has invested in equity instruments and the exposure is equity securities price risk from investments held by the Company and classified in the Balance Sheet as FVOCI.
(b) Sensitivity: An increase in the price risk by 100 basis points would increase the impact in the other comprehensive income by Rs.342/- as on March 31, 2019 and Rs. 403 as on March 31, 2018. Acorresponding reduction in the other comprehensive income would be noted upon decreasing the market index levels.
33. Capital management
(a) Risk management
The Company has equity share capital and other reserves attributable to the equity shareholders, as the only source of capital and the Company does not have any interest bearing borrowings/debts.
The Company is cash surplus and has no capital other than Equity. The Company is not exposed to any regulatory imposed capital requirements. The cash surpluses are currently invested in income generating equity instruments and debt instruments (through mutual funds) and in bank deposits depending on economic conditions in line with the guidelines set out by the Management. Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.
The Company does not have any borrowings and does not borrow funds unless circumstances require.
|
Particulars
|
March 31, 2019
|
March 31, 2018
|
|
Equity
|
13,93,662
|
11,65,433
|
|
Less : Tangible and other assets (net)
|
3,85,799
|
3,74,336
|
|
Working capital
|
1,18,876
|
1,04,658
|
|
Investment in the associate
|
-
|
20,889
|
|
Investment in equity instruments, debt instruments and bank deposits
|
8,88,987
|
6,65,550
|
(b) Dividends
|
|
Particulars
|
March 31, 2019
|
March 31, 2018
|
|
(i) Dividends recognised on equity shares
|
|
|
|
Final dividends for the year ended 31st March 2018 of Rs. 1.70 (31st March 2017 - Rs.1.70) per fully paid-up share
|
10,240
|
10,223
|
|
Interim dividend for the year ended 31st March 2019 of Re 1.00 (31st March 2018 - Re. 1.00) per fully paid share
|
6,024
|
6,014
|
|
(ii) Dividends not recognised at the end of the reporting period
|
|
|
|
In addition to the above dividends, since year end the Directors have recommended a final dividend of Rs. 1.70 per fully paid equity share (31 March 2018 - Rs.1.70). This proposed final dividend is subject to the approval of shareholders in the ensuing Annual General Meeting. The proposed dividend including distribution tax thereon when approved by the shareholders will be met out of suplus in the retained earings in the Balance Sheet.
|
10,240
|
10,223
|
34. Events occuring after the reporting period
(a) Final dividend
Refer note 33 above for the final dividend recommended by the Directors, which is subject to the approval of shareholders in the ensuing Annual General Meeting.
(b) Transfer of profits to General Reserve
The transfer of profits to General Reserve recommended by Directors after the end of reporting period which have not been recognised at the end of the reporting period is as follows :
Particulars
|
31st March 2019
|
31st March 2018
|
Transfer of profits to general reserve not recognised as at the end of the reporting period
|
3,30,000
|
75,000
|
(c) The financial statements for the year ended March 31, 2019 were approved by the Board of Directors and authorised for issuance on May 29, 2019.
35. Previous year figures have been re-grouped wherever necessary to conform to current year's presentation.
As per our Report of even date attached
|
For and on behalf of the Board of Directors
|
For K. S. Aiyar & Co.
|
|
|
|
Chartered Accountants
|
MALLIKA SRINIVASAN
|
SANKAR DATTA
|
D.HEGDE
|
Firm Registration No.100186W
|
(DIN:00037022)
|
(DIN : 00025380)
|
(DIN: 00025468)
|
S. KALYANARAMAN
|
Chairman
|
Director
|
Director
|
Partner
|
|
|
|
Membership No.200565
|
|
|
|
Place : Chennai
|
S. RAGHURAMAN
|
R. V. SRIDHARAN
|
Place : Chennai
|
Date : 29th May 2019
|
Chief Financial Officer
|
Company Secretary
|
Date : 29th May 2019
|
|