21. Provisions and Contingencies
Provisions: Provisions are recognised when there is a present obligation or constructive obligation as a result
of a past event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of the time
value of money and the risks specific to the liability
Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate
of the amount cannot be made.
22. Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of equity shares outstanding during the year are adjusted for
the effects of all potential equity shares.
23. Segment Reporting
Segments are identified based on the manner in which the Company's Chief Operating Decision Maker ('CODM')
decides about resource allocation and reviews performance. Segment results that are reported to the CODM
include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment
and intangible assets other than goodwill.
The CODM (i.e Managing Director of the Company), who is responsible for allocating resources and assessing
performance of the operating segments.
24. Dividend to Shareholders
Final dividend distributed to equity shareholders is recognised in the period in which it is approved by the
members of the Company in the Annual General Meeting. Interim dividend is recognised when approved by the
Board of Directors at the Board meeting.
Dividend distributed (including interim dividend) is recognised in the Statement of changes in Equity.
C. Other Notes to Financial Statements
1. Transition to IND AS 116
Effective April 1, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to its lease contracts
existing on April 1,2019 using the modified retrospective approach under which the ROU Asset is measured at an
amount equal to lease liability, which in turn is measured based on the remaining lease payments. Consequently,
the Company recorded the lease liability at the present value of the lease payments discounted at the incremental
borrowing rate. The incremental borrowing rate applied is 9%.
Rental Expenses for short term leases recognised in the statement of profit and loss for the year ended
31.03.2025 is Rs.27.64 Lakhs (Previous year Rs. 31.44 lakhs.)
2. Contingent Liability and commitments to the extent not provided for:
Claims against the company not acknowledged as debts:
(i) Indirect tax matters:
The Company has obtained a stay of proceedings from the Honourable High Court of Madras on 24th
March 2006 against a proposition notice from the Commercial Tax Department for levy of sales tax on export
sales effected through auction centres. The matter is pending and is in common with the other tea planting
companies.
(ii) GST Matters:
During the year company has received a notice of show cause from GST department showing discrepancies
under few clauses with regard to input tax credit relating to financial year 2018-19 & raised a tax demand of
Rs 257.66 lakhs, excluding interest and penalty. The Company has preferred an appeal after a pre- deposit
of 10% of the tax demand Rs 25.77 lakhs. The company is of the view that the case is likely to be disposed
of in its favour and hence no provision is considered necessary therefor.
(iii) Income Tax Matters:
a) Tax assessments have been completed up to Assessment year 2023-24.
b) Disputed tax dues of Rs.20.82 lakhs pertaining to the Assessment year 2017-18 was appealed before
CIT (Appeals), Coimbatore, which was decided against the company. The Company has filed an appeal
with ITAT against the order of CIT (Appeals). ITAT allowed the appeal and ITAT directed to submit the
necessary papers and company in the process of submission of papers with Assessing Officer and the
company is of the view that the case is likely to be disposed of in its favour and hence no provision is
considered necessary therefor.
(iii) Labour Laws / Claims:
Labour disputes under adjudication relating to some workers - amount not ascertainable.
The Company's pending litigations comprise of claims against the Company by employees and pertaining to
proceedings pending with various authorities/forums with respect to direct tax, indirect tax and others. The
Company has reviewed all its pending litigations and proceedings and it has been disclosed as contingent
liabilities since the company is of the view that the case is likely to be disposed of in its favour and hence no
provision is considered necessary therefor. The Company does not expect the outcome of these proceedings
to have a material adverse effect on its standalone financial statements.
6. Details of Dividend proposed and paid
Dividend for the year ended 31.03.2024 paid Re.1.00 per share : Rs.30.96 lakhs
Tax Deducted thereon : Rs.2.36 lakhs
In respect of current year, the Directors proposed Dividend of Re.1/- per share on equity shares of face value
Rs.10 each on 26.05.2025.
In terms of Sections 124 and 125 of the Companies Act, 2013, (“Act”) unclaimed or unpaid dividend relating to the
financial year 2016-17 is due for remittance to the Investor Education and Protection Fund (“IEPF”) established
by the Central Government.
Further, pursuant to Section 124(6) of the Act, read with IEPF Authority (Accounting, Audit, Transfer and Refund)
Rules, 2016, an amount of Rs 220769/- pertaining to financial year 2016-17 which remained unclaimed for a
period of 7 years have been transferred to the credit of demat account identified by the IEPF Authority during the
year under review.
For the following years, amount not transferred to the Investor Education and Protection Fund (“IEPF”) established
by the Central Government due to Pending court cases against the claim amount. The details are given below
FY 2009-10 Rs 7568/-, FY 2010-11 Rs 8820/-, FY 2011-12 Rs 3540/-, FY 2012-13 Rs 1416/-, FY 2013-14
Rs 1062/-, FY 2014-15 Rs 532, FY 2015-16 Rs 532, FY 2016-17 Rs 708/-
7. Employee Benefits:
a) Defined Contribution Plan:
The Company makes contribution towards employees' provident fund and superannuation fund. Under the
rules of these schemes, the company is required to contribute a specified percentage of payroll costs. The
company during the year recognized Rs.237.17 lakhs (Previous year Rs.198.45 lakhs) as expense towards
contribution to the Provident Fund.
The liability towards superannuation fund for the year ended 31st March 2025 amounting to Rs19.86 lakhs
(Previous year Rs.19.68 lakhs) has been charged to Statement of Profit and Loss.
The leave encashment for the year ended 31st March 2025 amounting to Rs.26.88 lakhs (previous year
Rs. 19.75 lakhs) has been charged to Statement of Profit and Loss and the net liability as on 31.03.2025 is
Rs.41.23 lakhs (previous year - Rs.43.14 lakhs).
I. Risk Exposure:
The gratuity scheme is a final salary defined benefit plan, that provides for a lump sum payment at the time
of separation; based on scheme rules and benefits are calculated on the basis of last drawn salary and the
period of service at the time of separation and paid as lump sum. There is a vesting period of 5 years. The
design entitles the following risks that affect the liabilities and cash flows,
i. Interest rates risk: The defined benefit obligation calculated uses a discount rate based on government
bonds. If bond's yield falls, the defined benefit obligation will tend to increase.
ii. Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.
iii. Demographic risk: The risk of volatility of results due to unexpected nature of decrements that include
mortality attrition, disability and retirement. The effect of these decrements on the DBO depends upon the
combination of salary increase, discount rate and vesting criteria and therefore not very straightforward.
It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring
employees will be less compared to long service employees.
iv. Asset Liability mismatch: This will come into play unless the funds are invested in a term of the assets
replicating the term of the liability.
J. Expected contributions to the plan:
Expected contributions to the plan for the next annual reporting period is Rs. 126.64 lakhs.
Level 2 - Directly or indirectly observable market inputs, other than Level 1 inputs and
Level 3 - Inputs which are not based on observable market data
• Carrying amounts of trade receivables and trade payables, cash and cash equivalents, other financial assets
& 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 hierarchies.
9. Financial risk management:
The Company's activities expose it to credit risk, market risk and liquidity risk. In order to minimise any adverse
effects on the financial performance of the Company, the company has risk management policies as described
below
i. Credit risk:
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
Company is exposed to credit risk from its operating activities (primarily Trade Receivables) and from its
investing activities (primarily Deposits with Banks, Loans and advances to Corporates and Investments in
Shares and Mutual Funds).
Credit risk from balances with banks, term deposits, loans, investments are managed by Company's finance
department.
Trade Receivables are typically unsecured and are derived from revenue earned from customers. Customer
credit risk is managed as per the Company's policy and procedures which involve credit approvals,
establishing credit limits and continuously monitoring the credit worthiness of customers to which the
Company grants credit terms in the normal course of business. Outstanding customer receivables are
regularly monitored.
The Company's maximum exposure to credit risk for the components of the Balance Sheet as of 31st March,
2025 and 31st March, 2024 is the carrying amounts as disclosed in Note 9.
ii. Market risk:
Market risk is the risk that changes in market prices - such as commodity prices, interest rates and equity
prices - will affect the Company's income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return. Further, the company is not exposed to any foreign currency exchange rate risk
which has an impact on the Income statement and Equity as it does not have transaction references with
other currencies.
a. Interest Rate Risk
Interest rate risk 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 interest rate risk can also impact the provision for
retirement benefits.
The Company's main interest rate risk arises from short term and long-term borrowings with variable
rates, which expose the Company to cash flow interest rate risk.
The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to
interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of
changes in market interest rates.
b. Price Risk
Securities price risk is the risk that the fair value of a financial instruments will fluctuate due to changes
in market traded prices. The Company invests its surplus funds in various debt instruments and equity
instruments. These investments are susceptible to market price risk, mainly arising from changes in the
interest rates or market yields which may impact the return and value of such investments. To manage
its price risk arising from investments in mutual funds, the Company diversifies its portfolio.
c. Agricultural Risk
Cultivation of tea being an agricultural activity, there are certain specific financial risks. These financial
risks arise mainly due to adverse weather conditions, and fluctuation of selling price of finished goods
(tea) due to increase/(decrease) in the supply/availability. The Company manages these price fluctuations
by actively managing the sourcing of tea, and alternate blending strategies without impacting the quality
of the blend.
iii. Liquidity risk:
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain
optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its
liquidity position and maintains adequate sources of financing.
The tables below analyse the company's financial liabilities into relevant maturity groupings based on their
contractual maturities. The company has only all non-derivative financial liabilities.
The amounts disclosed in the table are contracted undiscounted cash flows. Balances due within 12 months
equal their carrying balances as the impact of discounting is not significant. Balances due beyond 12 months
are carried at amortised cost.
(ii) Relative of KMP (Managing Director)
Ms. Sheetal Bangur
Shri. Yogesh Bangur
(iii) Enterprises over which KMP or Relatives of KMP exercises control or significant influence:
M.B.Commercial Company Ltd (Refer Note 27)
Amalgamated Development Ltd (Refer Note 27)
Maharaja Shree Umaid Mills Ltd
Placid Limited
The Marwar Textiles (Agency) Pvt.Ltd
Navjyoti Commodity Management Services Ltd
Samay Industries Limited
The General Investment Co. Ltd
Kiran Vyapar Limited
Soul Beauty & Wellness Centre LLP
Mugneeram Ramcoowar Bangur Charitable & Religious Co.
Shree Rama Vaikunth Trust
Shree Krishna Agency Ltd
LNB Realty Private Limited (formerly LNB Realty LLP)
Sidhidata Tradecomm Ltd
IOTA Mtech Ltd
LNB Renewable Energy Limited
LNB Group Foundation
(v) Post-Employment benefit Plans:
The Gratuity Fund of The Peria Karamalai Tea & Produce Company Limited
17. Disclosure on Crypto or virtual Currency:
The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
18. Details of Benami property:
No proceedings have been initiated or are pending against the Company for holding any Benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
19. Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
20 Utilisation of borrowed funds and share premium:
A) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a) 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
b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a) 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
b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
21 Valuation of Property, Plant & Equipment, intangible asset and investment property:
The Company has not revalued its property, plant and equipment (including Right of Use Assets) or intangible
assets or both during the current or previous year
22 Wilful Defaulter:
The Company had not been declared as a wilful defaulter by any bank or financial institution or other lender
(as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.
23 The Company does not have Charges or Satisfaction which is yet to be registered with Registrar of
Companies(ROC) beyond the statutory period.
24 Audit Trail
The Company uses accounting software "Tally Prime" at Head office and accounting cum Payroll application
software "Plantex" at Estate for maintaining its books of accounts for the financial year ended March 31, 2025
which has a feature of recording audit trail (edit log) facility
26 Expenditure in Foreign Currency
During the year company incurred Rs. 31.08 Lakhs (Previous year Rs. Nil) towards ecological study relating to
Tea Plantation charges.
27 The Hon'ble National Company Law Tribunal, Kolkata Bench (“NCLT”) vide its order dated 23rd October, 2024 has
sanctioned the Scheme of Amalgamation (“Scheme”), whereby 33 group companies (“Transferor Companies”)
have merged with Maharaja Shree Umaid Mills Limited ('Transferee Company'), another group company. A
Certified Copy of the Order of NCLT under Section 230 to 232 and other applicable provisions of the Companies
Act, 2013, sanctioning the above Scheme, was issued on 2nd December, 2024, which was filed by the respective
Transferor Companies on 10th December, 2024 ('effective date') with the Registrar of Companies, West Bengal
(“ROC”).
The following Promoter Group Transferor Company, was holding equity shares of the Company as detailed herein
below:
Consequent to the said Scheme becoming effective, the abovenamed Promoter Group Transferor Company has
been merged with the Transferee Company and therefore, 1,21,275 equity shares representing 3.92% of the
Company held by this Promoter Group Company stands transferred to Maharaja Shree Umaid Mills Limited.
Further, amongst 33 group companies of the said Scheme, M B Commercial Company Limited and Amalgamated
Development Limited with whom the Company has related party transactions during the year and previous year
under review have also merged with Transferee Company and ceased to exist with effect from the appointed date
of the scheme, i.e., 1st April, 2023.
28 Previous year's figures have been regrouped / reclassified, to the extent necessary, to confirm to current year's
classifications.
29 Unless otherwise stated, all the numbers have been rounded off to the nearest lakhs.
In ternis of our Report attachecl For and on behalf of the Board of Directors
For Jayaraman & Knshna Lakshmi Niwas Bangur Alka Devi Bangur
Chartered Accountants Chairman Managing Director
Reg. N°. 011185S DIN : 00012617 DIN : 00012894
S. Krishnamoorthy Sanjeev Kumar Singh M. Sreenivasan Saurav Singhania
partnei-, Auchtoi- MNo. 200826 chjef Executive Officer Chief Financial Officer Company Secretary
Coimbatore, 26th May 2025
Kolkata, 26th May 2025
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