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Notes to Accounts of CCL Products India Ltd.

Mar 31, 2023

Rights attached to equity shares

The Company has only one class of equity shares having a face value of '' 2 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in indian rupees. Payment of dividend is also made in foreign currency to shareholders outside india. The final 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, all preferential amounts, if any, shall be discharged by the company. The remaining assets of the company shall be distributed to the holders of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date.

Final dividends on equity shares are recorded as a liability on the date of their approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the company’s board of directors. The details of dividends paid by the company are as follows:

Total term loan of Rs.90.00 Crs from HDFC Bank carrying floating interest rate of Monthly MCLR 5 bps repayable in sixteen quarterly installments at the end of each quarter commencing from June 29, 2020.

Term loans from HDFC Bank is secured by first pari passu charge on movable assets of the company and second pari passu charge on current assets of the Company.

External commercial borrowings from Citi bank is secured by first ranking exclusive charge over all the fixed assets EOU located at Duggirala, Guntur district and SEZ Unit located at kuvvakoli village, Chittoor district of Andhra Pradesh.The coupon for External Commercial Borrowings is linked to LIBOR plus applicable spread.

Working Capital Facilities (Packing credit) from State Bank of India, Citi Bank and ICICI Bank Limited under consortium are secured by way of first pari-passu charge on current assets and second pari-passu charge on fixed assets of the company . The Working Capital is repayable on demand.

Notes:

(i) The Code on Social Security, 2020 (‘Code'') relating to employee benefits received Presidential assent in September 2020. However, effective date and the final rules/interpretation have not yet been notified/issued. The Company is in the process of assessing the impact of the Code and will recognize the impact, if any, based on its effective date.

(ii) The Company operates defined benefit plan i.e., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees who is responsible for the administration of the plan assets and for the definition of the investment strategy.

Gratuity benefits

In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity payments (the “Gratuity Plan”) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation, based upon which the Company makes contributions to the Life Insurance Corporation of India (LIC).

Contribution to Superannuation schemes

Certain categories of employees of the Company participate in superannuation, a defined contribution plan administered by the Life Insurance Corporation of India. The Company makes annual contributions based on a specified percentage of each covered employee''s salary. The Company has no further obligations under the plan beyond its annual contributions. The Company contributed '' 225.35 Lakhs and '' 244.48 Lakhs to the superannuation Schemes during the years ended March 31,2023 and 2022, respectively.

Leave Encashment

The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry forward a portion of the unutilised compensated absences and utilise them in future periods or receive cash in lieu thereof as per the Company''s policy. The Company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement. The total liability recorded by the Company towards this obligation was '' 178.84 Lakhs and '' 200.44 Lakhs as at March 31,2023 and March 31,2022, respectively

2.33 Financial Risk Management:

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, trade and other receivables, cash and cash equivalents, bank balances, security deposits and derivatives that are out of regular business operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s risk management is carried out by a treasury department under policies approved by the Board of Directors. The Board of Directors provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

a. Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include borrowings, derivatives financial instruments and trade payables.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rate relates primarily to the Company''s borrowings with floating interest rates.

If interest rate had been 50 basis points higher/ lower in case of rupee borrowings and all other variables were held constant, the Company''s profit for the year ended March 31,2023 would decrease/increase by '' 10.55 lakhs (March 31,2022: '' 3.29 lakhs)

ii. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s foreign currency borrowings, trade payables and trade receivables

The functional currency of the Company is Indian Rupee. The Company uses forward exchange contracts to hedge its currency risk, mostly with a maturity of less than one year from the reporting date. The Company does not use derivative financial instruments for trading or speculative purposes. Following are the derivative financial instruments (forward contracts) to hedge the foreign exchange rate risk as of March 31,2023.

b. Credit Risk:

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. The Company''s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security deposits and bank deposits are mostly with government authorities and scheduled banks and hence, the Company does not expect any credit risk with respect to these financial assets.

Trade and other receivables - The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Financial assets that are neither past due nor impaired ('' in Lakhs)

None of the Company''s cash equivalents, including deposits with banks, were past due or impaired as at March 31,2023. Of the total trade and other receivables, impairment loss is provided for '' 38.65 Lakhs as at March 31,2023 and '' 36.65 Lakhs at March 31,2022.

The Company''s credit period for customers generally ranges from 60-90 days. The ageing of Trade

Other than trade receivables, the Company has no significant class of financial assets that are past due or impaired as at March 31,2023.

On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate.

c. Liquidity Risks:

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of

2.34 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

2.35 Capital Management ('' in Lakhs)

For the purpose of the Company''s capital management, capital includes issued equity capital, convertible preference shares, securities premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations

2.38 Other statutory information:

a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b. The Company does not have any transactions with struck off companies.

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC 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 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:

• 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

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f. 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:

• 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

• provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g. The Company has not entered into any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

h. The Company has not been declared as willful defaulter by any bank or financial institution or other lender.

i. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

j. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year.

k. The Company has borrowings from banks against security of its current assets. The reports or statements of Current assets filed by the company with banks are in agreement with the books of accounts.

l. The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.

2.39 CCL Employee Stock Option Scheme, 2022 (CCL ESOP 2022 Plan):

The Company instituted the CCL ESOP 2022 Plan for eligible employees pursuant to the special resolution approved by the shareholders in the Annual General Meeting held on August 30, 2022. The CCL ESOP 2022 Plan covers eligible employees (excluding promoter directors) of the parent company and its subsidiaries (collectively, “eligible employees”).

The Nomination, Governance and Compensation Committee of the Board of the parent company (the “Committee”) administers the CCL ESOP 2022 Plan and grants stock options to eligible employees. The Committee determines which eligible employees will receive options, the number of options to be granted, the exercise price, the vesting period and the exercise period. The vesting period is determined for all options issued on the date of grant. The options issued under the CCL ESOP 2022 Plan vest in periods ranging between one and four years subject to a maximum period of five years from the date of grant of such options.


Mar 31, 2022

2.28 Segment Reporting:

The Company concluded that there is only one operating segment i.e, Coffee products. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable. Accordingly, the Company shall present entity-wide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108.

2.29 Employee benefits:Gratuity benefits

In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity payments (the “Gratuity Plan”) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation, based upon which the Company makes contributions to the Life Insurance Corporation of India (LIC).

Leave Encashment

The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry forward a portion of the unutilised compensated absences and utilise them in future periods or receive cash in lieu thereof as per the Company''s policy. The Company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement. The total liability recorded by the Company towards this obligation was '' 200.44 Lakhs and '' 154.84 Lakhs as at 31st March 2022 and 31st March 2021, respectively

Contribution to Provident Fund

The employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and employer each make monthly contributions to a government administered fund equal to 12% of the covered employee''s qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed '' 223.45 Lakhs and '' 195.63 Lakhs to the provident fund plan during the years ended 31st March 2022 and 31st March 2021, respectively.

Contribution to Superannuation schemes

Certain categories of employees of the Company participate in superannuation, a defined contribution plan administered by the Life Insurance Corporation of India. The Company makes annual contributions based on a specified percentage of each covered employee''s salary. The Company has no further obligations under the plan beyond its annual contributions. The Company contributed '' 244.48 Lakhs and '' 273.65 Lakhs to the superannuation Schemes during the years ended 31st March 2022 and 31st March 2021, respectively.

The Company''s activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market risk. The Company''s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors, risk management committee and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.

a. Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has the following categories of financial assets that are subject to credit risk evaluation:

Trade Receivables- The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Financial assets that are neither past due nor impaired - None of the Company''s cash equivalents, including deposits with banks, were past due or impaired as at 31st March 2022. Of the total trade and other receivables, impairment loss is provided for '' 36.65 Lakhs as at 31st March 2022 and '' 94.88 Lakhs at 31st March 2021.

Other than trade receivables, the Company has no significant class of financial assets that are past due or impaired as at 31st March, 2022.

On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate.

b. Liquidity Risks:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

As of 31st March 2022 and 2021, the Company has utilized working capital credit limits from banks for '' 27982.81 Lakhs and '' 19150.47 Lakhs respectively.

As of 31st March 2022, the Company had working capital (current assets less current liabilities) of '' 18371.64 Lakhs including cash and cash equivalents of '' 1949.93 Lakhs. As of 31st March 2021, the Company had working capital (current assets less current liabilities) of '' 17041.46 Lakhs including cash and cash equivalents of '' 6879.55 Lakhs.

c. Market Risks

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company''s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Coffee Industry is dependent on nature, making it susceptible to climate vagaries. The major weather factors that influence coffee yield are rainfall, temperature, light intensity and relative humidity.

Commodity Price Risk

The Company exposure to Market risk for commodity prices can result in changes to realisation for its Cost of Production for its products. The company mitigates risk by entering into Coffee Future Contracts and with the natural hedge arising on export of Products vis a vis import of Coffee Beans.

Coffee Futures

The Company uses Coffee future contract to reduce its price risk associated with forecasted purchases of Coffee beans. Throughout the year, the company enters into coffee futures based on market price and anticipated production requirements.

Foreign currency risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The company mitigates the currency risk with natural hedge arising on export of Products vis a vis import of Coffee Beans.

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

2.34 Capital Management

The Company''s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity, borrowings and operating cash flows required.

2.35 Contingent Liabilities and Commitments:

The following are the details of contingent liabilities and commitments:

('' in Lakhs)

Particulars

As of

31st March 2022

As of

31st March 2021

Contingent Liabilities

a) Claims against the company/disputed liabilities

Income Tax*

4057.38

4057.38

Service Tax

995.92

995.92

Sales Tax

151.94

151.94

b) Guarantees

Bank Guarantee

1735.63

1516.12

6940.87

6721.36

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for

453.40

343.46

453.40

343.46

*Tax deposited under protest '' 2883.28 Lakhs .

2.37 Other statutory information:

a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b. The Company does not have any transactions with struck off companies.

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC 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 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:

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 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:

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. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g. The Company has not entered into any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

h. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

i. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

j. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year.

k. The Company has borrowings from banks against security of its current assets. The reports or statements of Current assets filed by the company with banks are in agreement with the books of accounts.

l. The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.


Mar 31, 2018

2.28 Related Parties List of Subsidiaries:

Subsidiaries including step down M/s. Jayanti Pte Ltd., Singapore M/s. Continental Coffee Pvt Ltd., India

M/s. Grandsaugreen SA, Switzerland (Subsidiary of Jayanti Pte. Ltd., Singapore),

M/s. Ngon Coffee Company Ltd., Vietnam (Subsidiary of Jayanti Pte. Ltd., Singapore)

In accordance with the provisions of Ind AS 24 “Related Party Disclosures” and the Companies Act, 2013, Company''s Directors, members of the Company''s Management Council and Company Secretary are considered as Key Management Personnel. List of Key Management Personnel of the Company is as below:

Mr. Challa Rajendra Prasad, Whole time Director Mr. Challa Srishant, Managing Director Mr. B.Mohan Krishna, Director Operations Mr. K.V.L.N.Sarma, Chief Financial Officer Mrs. Sridevi Dasari, Company Secretary

2.30 Segment Reporting:

The Company concluded that there is only one operating segment i.e, Coffee products. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable. Accordingly, the Company shall present entity-wide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108.

2.31 Employee benefits:

Gratuity benefits

In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity payments (the “Gratuity Plan”) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation, based upon which the Company makes contributions to the Life Insurance Corporation of India (LIC).

Leave Encashment

The Company accumulates of compensated absences by certain categories of its employees for one year. These employees receive cash in lieu thereof as per the Company''s policy. The Company records expenditure on payment basis.

Contribution to Provident Fund

The employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and employer each make monthly contributions to a government administered fund equal to 12% of the covered employee''s qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed Rs, 124.85 Lakhs and Rs, 104.40 Lakhs to the provident fund plan during the years ended 31st March 2018 and 2017, respectively._

Contribution to Superannuation schemes

Certain categories of employees of the Company participate in superannuation, a defined contribution plan administered by the Life Insurance Corporation of India. The Company makes annual contributions based on a specified percentage of each covered employee''s salary. The Company has no further obligations under the plan beyond its annual contributions. The Company contributed Rs, 222.12 Lakhs and Rs, 157.17 Lakhs to the superannuation Schemes during the years ended 31st March 2018 and 2017, respectively.

The Company''s average effective tax rate for the years ended 31st March, 2018 and 2017 were 34.50% and 33.96%, respectively.

2.35 Financial Risk Management:

The Company''s activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market risk. The Company''s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors, risk management committee and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.

Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments.

Trade Receivables-The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The total trade and other receivables impairment loss is provided Rs, 21.95 lakhs as at 31st March, 2018 and Rs, 39.29 lakhs at 31st March, 2017.

On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate.

Financial assets that are neither past due nor impaired - None of the Company''s cash equivalents, including deposits with banks, were past due or impaired as at 31st March, 2018

Liquidity Risks:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

As of 31st March, 2018 and 2017, the Company had not utilized any credit limits from banks.

As of 31st March, 2018, the Company had working capital (current assets less current liabilities) of Rs, 19367.59 Lakhs including cash and cash equivalents of Rs, 802.97 Lakhs. As of 31st March, 2017, the Company had working capital of Rs, 16479.75 Lakhs, including cash and cash equivalents of Rs, 556.13 Lakhs and investments in FVTPL financial assets of Rs, 3.05 Lakhs *Note: The Bank Overdraft and other liabilities are payable on demand.

Market Risks

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company''s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Coffee Industry is dependent on nature, making it susceptible to climate vagaries. The major weather factors that influence coffee yield are rainfall, temperature, light intensity and relative humidity.

Commodity Price Risk

Generally The Company exposure to Market risk for commodity prices can result in changes in its Cost of Production. The company mitigates this risk by entering into fixed price contracts for purchase of it''s raw materials on back to back basis for each of it''s sale contract of its finished products.

Currency Risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The company mitigates the currency risk with natural hedge arising on export of Products vis a vis import of Coffee Beans both of which are in same currency viz USD.

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.

2.36 CAPITAL MANAGEMENT

The Company''s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity, borrowings and operating cash flows required.


Mar 31, 2017

1 Rights attached to equity shares

The Company has only one class of equity shares having a face value of '' 2 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees.

In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 In the period of five years immediately preceding March 31,2017:

The company has alloted 6,65,13,960 fully paid up equity shares of face value Rs.2/- each on 21st August, 2013, pursuant to bonus issue approved by the shareholders.

3 Dividend

The Board of Directors, in its meeting on May 22nd, 2017 have proposed a final dividend of '' 2.50/-per equity share for the financial year ended March 31st, 2017. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on July 11th, 2017 and if approved would result in a cash outflow of Rs.4002.75 Lakhs including corporate dividend tax.

4 Details of security:

Working Capital Facilities from State Bank of India, State Bank of Hyderabad and ICICI Bank Limited under consortium are secured by way of first pari-passu charge on current assets and second pari-passu charge on fixed assets of the company. Security creation in favour of Citibank N.A.is pending.

5 During the year the company has transferred unclaimed dividend of Rs.1.39 Lakhs (Previous Year Rs.2.37 Lakhs ) to Investor Education and Protection Fund

* Tax deposited under protest Rs.2883.28 Lakhs (Previous year Rs.2827.57)

** Corporate Guarantees of Rs. Nil (Previous Year Rs.9750.94 lakhs) given to subsidiary - Ngon Coffee Company, Vietnam

6 Corporate Social Responsibility (CSR) Expenditure

a) Gross amount required to be spent by the company during the year Rs.232.47 Lakhs (Previous year Rs.202.31 Lakhs)

7 Remittance in foreign currency on account of Dividend

The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. The exact amount of dividend remitted in Foreign Currency cannot be ascertained. The total amount remittable in this respect is given herein below :

8 Segment Reporting

The entire operations of the company relate to only one segment viz., Coffee and Coffee related products. Hence, segmental reporting as per AS-17 is not made.

9 Related Party disclosures as per AS-18 read with the Companies Act, 2013

The disclosures of transactions with the related parties are given below:

10 Previous Year’s figures are regrouped/rearranged wherever considered necessary to conform to the current year figures.


Mar 31, 2015

1 Rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs. 2 /- each (Previous Year Rs. 2 /-). Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend of Rs. 1.50/- per share (Previous Year Rs.1.20/- per share) proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2 On account of depreciation adjustment in compliance with Schedule II of the Companies Act, 2013

Details of security:

Working Capital Facilities by State Bank of India, State Bank of Hyderabad, ICICI Bank Limited and Kotak Mahindra Bank Ltd under consortium are secured by way of first pari-passu charge on current assets and second pari-passu charge on fixed assets of the Company.

3 There are no transactions with Micro and Small enterprises, hence disclosures are not given as required under MSMED Act, 2006.

4 During the year the Company has transferred unclaimed dividend of Rs.2.14 Lakhs pertaining to Financial Year 2006-07 to Investor Education and Protection Fund on expiry of 7 Years.

5 Deposits with Statutory Authorities of Rs.2729.35 Lakhs represents amount paid to Income Tax Authorities under protest.

2015 2014

(I) Contingent Liabilities

(A) Claims against the Company/ disputed liabilities not acknowledged as debts :

* Excise & Customs 31.76 31.76

* Service Tax 550.66 550.66

* Income Tax - -

(B) Guarantees

- Bank Guarantees (includes Corporate Guarantees)* 14,992.55 18,874.84

(II) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 344.70 23.54

* Corporate Guarantees of Rs.13832.57 lakhs (Previous Year Rs.17729.44 lakhs) given to subsidiary - Ngon Coffee Company, Vietnam

6 Segment Reporting

Based on the guiding principles given in Accounting Standard on ''Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India the Company''s primary business segment is Instant Coffee.

Segment accounting policies

In addition to the significant accounting policies applicable to the business segment as set out in Note 1 to the Financial Statements the accounting policies in relation to segment accounting are as under:

a) Segment assets and liabilities

All segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include investments, inter corporate deposits, reserves and surplus, borrowings, provision for contingencies and income tax (both current and deferred).

b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to the segment. Segment revenue and expenses do not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax.

7 Related Party disclosures as per (AS-18) read with Companies Act, 2013

The disclosures of transactions with the related parties are given below:

(i) Names of related parties and description of their relationship:

1. Key Managerial Personnel Mr. Challa Rajendra Prasad, Whole time Director

Mr. Challa Srishant, Managing Director

Mr. K.V.L.N. Sarma, Chief Financial Officer

Ms. Sridevi Dasari, Company Secretary

2. Non-whole time Directors Mr. I.J. Rao, Non-Executive Director

Mr. Zafar Saifullah, (upto 25.07.2014) Non-Executive Director

Mr. Vipin K.Singal, Non-Executive Director

Mr. K. Chandrahas, Non-Executive Director

Mr. J. Rambabu, Non-Executive Director

Mr. B. Mohan Krishna, Non-Executive Director

Mr. K.K. Sarma, Non-Executive Director

Mr. G.V. Krishna Rau, Non-Executive Director

Ms. Kulsoom Noor Saifullah, Non-ExecutiveDirector

Mr. Jonathan T. Feuer, (upto 16.03.2015) Non-Executive Director

3. Relatives of Key Managerial Personnel Ms. Challa Shantha Prasad (Spouse of Mr. Challa Rajendra Prasad, Executive Chairman)

Ms. Challa Soumya (Daughter of Mr. Challa Rajendra Prasad, Executive Chairman)

4. Subsidiary Companies M/s. Jayanti Pte Ltd., Singapore

M/s. Continental Coffee Pvt.Ltd., India

M/s. Grandsaugreen SA, Switzerland (Subsidiary of Jayanti Pte. Ltd., Singapore)

M/s. Ngon Coffee Company Ltd., Vietnam (Subsidiary of Jayanti Pte. Ltd., Singapore)

8 Previous Year''s figures are regrouped/rearranged wherever considered necessary to conform the current year figures .


Mar 31, 2014

1.1 Segment Reporting

Based on the guiding principles given in Accounting Standard on `Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India the Company''s primary business segment is Instant Coffee.

Segment accounting policies

In addition to the significant accounting policies applicable to the business segment as set out in Note 1 of the notes to the Financial Statements the accounting policies in relation to segment accounting are as under:

a) Segment assets and liabilities

All segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include investments, inter corporate deposits, reserves and surplus, borrowings, provision for contingencies and income tax (both current and deferred).

b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to the segment. Segment revenue and expenses do not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax.

(ii) Names of related parties and description of their relationship:

1. Key Management Personnel Mr.Challa Rajendra Prasad, Executive Chairman

Mr.Challa Srishant, Managing Director

2. Relatives of Key Management Personnel Mrs.Challa Shantha Prasad

(Spouse of Mr.Challa Rajendra Prasad, Executive Chairman)

Ms.Challa Soumya

(Daughter of Mr.Challa Rajendra Prasad, Executive Chairman)

3. Subsidiary Companies M/s. Jayanti Pte Ltd., Singapore

M/s. Continental Coffee Pvt Ltd., India M/s. Grandsaugreen SA, Switzerland (Subsidiary of Jayanti Pte. Ltd., Singapore) M/s. Ngon Coffee Company Ltd., Vietnam (Subsidiary of Jayanti Pte. Ltd., Singapore)

1.2 Previous Year''s figures are regrouped/rearranged/recasted wherever considered necessary to conform the current year figures.


Mar 31, 2013

1.1 Segment Reporting

Based on the guiding principles given in Accounting Standard on ''Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India the Company''s primary business segment is Instant Coffee.

Segment accounting policies

In addition to the significant accounting policies applicable to the business segment as set out in Note 1 of the notes to the Financial Statements the accounting policies in relation to segment accounting are as under:

a) Segment assets and liabilities

All segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include investments, inter corporate deposits, reserves and surplus, borrowings provision for contingencies and income tax (both current and deferred).

b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to the segment. Segment revenue and expenses do not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax.

1.2 Related Party disclosures

As per AS-18, the disclosures of transactions with the related parties are given below: (i) Details of the related party transactions

(ii) Names of related parties and description of their relationship:

1. Key Management Personnel Mr.Challa Rajendra Prasad, Chairman & Managing Director

Mr.Challa Srishant, Executive Director

2. Relatives of Key Management Personnel Mrs.Challa Shantha Prasad

(Spouse of Mr.Challa Rajendra Prasad, C.M.D.)

Ms.Challa Soumya

(Daughter of Mr.Challa Rajendra Prasad, C.M.D.)

3. Subsidiary Companies M/s. Jayanti Pte Ltd., Singapore

(Subsidiary of CCL Products (India) Limited - India) M/s. Grandsaugreen SA, Switzerland (Subsidiary of Jayanti Pte. Ltd., Singapore) M/s. Ngon Coffee Company Ltd., Vietnam (Subsidiary of Jayanti Pte. Ltd., Singapore)

1.3 Previous Year''s figures are regrouped/rearranged/recasted wherever considered necessary to conform the current year figures


Mar 31, 2012

A) Details of security:

The Term Loans are secured by Paripassu Charge on all the Fixed Assets of the Company by way of deposit of title deeds in respect of Factory and Land admeasuring Acr.19.3475 Cents situated at Duggirala Mandal, Guntur District. The said facility is further secured by way of second charge on the current assets of the company both present and future. The Term Loans availed by the company are also secured by the personal guarantee of the Chairman & Managing Director.

b) Deferred payment liabilities represent sales tax deferment. This loan is interest free and repayable as Rs. 11.71 lakh in the year 2012-13, Rs. 8.48 lakh in the year 2013-14 and Rs.13.40 lakh in the year 2014-15 respectively.

Details of security:

Working Capital Facilities by State Bank of India, State Bank of Hyderabad, ICICI Bank Limited and Kotak Mahindra Bank Ltd under consortium are secured by way of first paripassu charge on Hypothecation of stocks of raw materials, semi finished, finished goods consumables, stores, book debts and such movable assets present and future and second charge on all fixed assets of the Company.

# Withholding and other taxes payable include Sales Tax deferment amounting to Rs. 11.71 Lakh (Previous Year Rs. 15.99 lakh) {refer note 2.3 ( c ) }

## These Figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund

1.1 Contingent Liabilities and Commitments

2011-12 2010-11

(I) Contingent Liabilities

(A) Claims against the company/ disputed liabilities not acknowledged as debts :

- Income Tax 2,942.11 2,942.11

- Excise & Customs 31.76 31.76

- Service Tax 550.66 -

(B) Guarantees

- Bank Guarantees (includes Corporate Guarantees) 15,144.78 10,818.80

(II) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 404.91 -

(*) No provision was made in the books as the fair value of plan assets are more than the present value of obligations.

1.2 Remittance in foreign currency on account of Dividend

The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. The exact amount of dividend remitted in Foreign Currency cannot be ascertained. The total amount remittable in this respect is given herein below :

1.3 Segment Reporting

Based on the guiding principles given in Accounting Standard on 'Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India, the Company's primary business segment is Instant Coffee.

Segment accounting policies

In addition to the significant accounting policies applicable to the business segment as set out in Note 1 of the notes to the Financial Statements, the accounting policies in relation to segment accounting are as under:

a) Segment assets and liabilities

All segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include investments, inter corporate deposits, reserves and surplus, borrowings provision for contingencies and income tax (both current and deferred).

b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to the segment. Segment revenue and expenses do not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax.

1.4 Related Party disclosures

As per AS-18, the disclosures of transactions with the related parties are given below:

(i) Details of the related party transactions

(ii) Names of related parties and description of their relationship:

1. Key Management Personnel Mr.Challa Rajendra Prasad, Chairman & Managing Director

Mr.Challa Srishant, Executive Director

2. Relatives of Key Management Personnel Mrs.Challa Shantha Prasad

(Spouse of Mr.Challa Rajendra Prasad, C.M.D.)

Ms.Challa Soumya

(Daughter of Mr.Challa Rajendra Prasad, C.M.D.)

3. Subsidiary Companies M/s. Jayanti Pte Ltd., Singapore

(Subsidiary of CCL Products (India) Limited - India)

M/s. Grandsaugreen SA, Switzerland (Subsidiary of Jayanti Pte. Ltd., Singapore)

M/s. Ngon Coffee Company Ltd., Vietnam (Subsidiary of Jayanti Pte. Ltd., Singapore)

1.5 Previous Year's figures are regrouped/rearranged/recasted wherever considered necessary to conform the current year figures


Mar 31, 2011

1 Contingent Liabilities:

As on Balance sheet date existing contingent liablities are Bank Guarantees including Corporate Guarantees Rs. 10,818.80 lakhs (Previous Year: Rs. 4,112.53 lakhs); disputed taxes/ duties Rs. 2,973.87 lakhs (Previous Year: Rs. 31.76 lakhs) aggreegating to Rs. 13,792.67 lakhs (Previous Year: Rs. 4,144.29 lakhs)

2 Loans, Advances & Debtors:

Loans, advances and debtors as stated in the Balance Sheet are, in the opinion of the Management, realizable in the ordinary course of business.

3 Secured Loans:

i) The Term Loans, including the Rs. 25 Crores availed during the year, are secured by Paripassu Charge on all the Fixed Assets of the Company by way of deposit of title deeds in respect of Factory and Land admeasuring Acr.19.3475 Cents situated at Duggirala Mandal, Guntur District. The said facility is further secured by way of second charge on the current assets of the company both present and future. The Term Loans availed by the company are also secured by the personal guarantee of the Chairman & Managing Director.

ii) Working Capital Facilities by State Bank of India, State Bank of Hyderabad and ICICI Bank Limited under consortium are secured by way of first paripassu charge on Hypothecation of stocks of raw materials, semi finished, finished goods, consumables, stores, book debts and such movable assets present and future and second charge on all fixed assets of the Company.

4 As per the Certificate given by the Management, there is no delay in making payments to Micro, Small and Medium Enterprises attracting the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.

5 Disclosure as per AS 15:

a) Gratuity:

The Company has covered its gratuity liability by a Group Gratuity Scheme issued by LIC of India. Under the plan the eligible employees are entitled to Gratuity under a defined benefit plan.

b) Leave Encashment:

The Company has made provision for leave encashment of Rs. 4,22,558/- based on actuarial valuation. Since actuarial valuation is done first time, previous year figures are not given.

6. Quantitative & Other Information:

F) Details required under Clause C of Para 4D in Part II of Schedule VI pertaining to percentage and value of Imported Raw Materials, Spare Parts and components has not been provided as this information is confidential and market sensitive.

7. Segment Reporting:

Based on the guiding principles given in Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India the Company's primary business segment is Instant Coffee.

Segment accounting policies:

In addition to the significant accounting policies applicable to the business segment as set out in Note 1- Schedule 14 of the Notes to the Accounts, the accounting policies in relation to segment accounting are as under:

a. Segment revenue and expenses:

Segment revenue and expense are directly attributable to the segment. Segment revenue and expense do not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax.

b. Segment assets and liabilities:

All segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include investments, inter corporate deposits, reserves and surplus, borrowings, provision for contingencies and income tax (both current and deferred)

8 Reporting on related parties : In accordance with the Accounting standard 18, Name of related Parties and description of relationship is as under:

1 Key Management Personnel Mr. Challa Rajendra Prasad, Chairman & Managing Director

Mr. Challa Srishant, Executive Director

2 Relative of Key Management Personnel Mrs. Challa Shantha Prasad - (Spouse of Mr. Challa Rajendra Prasad C.M.D.)

Ms. Challa Soumya - (Daughter of Mr. Challa Rajendra Prasad C.M.D.)

3 Subsidiaries M/s. Jayanti Re Ltd., Singapore (Subsidiary of CCL Products (India) Limited - India)

M/s. Grandsaugreen SA, Switzerland (Subsidiary of Jayanti Pte. Ltd., Singapore)

M/s. Ngon Coffee Company, Vietnam (Subsidiary of Jayanti Pte. Ltd., Singapore)

Note:

1. Figures in brackets indicate corresponding previous year figures.

2. During the year the Company has made disinvestment of shares in M/s.Associated Coffee Merchants (International) Limited - UK. Hence, transactions upto the date of disinvestment is disclosed.

9 Previous Year's figures are regrouped/rearranged/recasted wherever considered necessary to conform the current year figures


Mar 31, 2010

(Rs. in Lakhs)

1 Contingent Liabilities: 2009-2010 2008-2009

Guarantees 4,112.53 4,717.64

Others* 31.76 31.76

* This amount represent disputed Custom Duty Liability relating to FY 1996-97, pending before CEGAT

2 LOANS, ADVANCES & DEBTORS

Loans, advances and debtors as stated in the Balance Sheet are, in the opinion of the management, realizable in the ordinary course of business.

3 SECURED LOANS:

i) The Term Loans are secured by Paripassu Charge on all the Fixed Assets of the Company by way of deposit of title deeds in respect of Factory and Land admeasuring Acr.19.3475 Cents situated at Duggirala Mandal, Guntur District. The said facility is further secured by way of second charge on the current assets of the Company both present and future. The Term Loans availed by the Company are also secured by the personal guarantee of the Chairman & Managing Director.

ii) Working Capital Facilities by State Bank of India, State Bank of Hyderabad and ICICI Bank Limited under consortium are secured by way of frst paripassu charge on Hypothecation of stocks of raw materials, semi fnished, fnished goods, consumables, stores, book debts and such movable assets present and future and second charge on all fixed assets of the Company.

4 As per the Certifcate given by the Management there is no delay in making payments to Micro, Small and Medium Enterprises attracting the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.

5 Disclosure as per AS 15 – Gratuity

The Company has covered its gratuity liability by a Group Gratuity Scheme issued by LIC of India. Under the plan the eligible employees are entitled to Gratuity under a defned benefit plan.

6. Segment Reporting

Based on the guiding principles given in Accounting Standard on `Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India the Companys primary business segment is Instant Coffee.

Segment Accounting Policies

In addition to the signifcant accounting policies applicable to the business segment as set out in Note 1– Schedule 14 of the Notes to the Accounts, the accounting policies in relation to segment accounting are as under:

Segment assets and liabilities :

All segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include investments, inter corporate deposits, reserves and surplus, borrowings, provision for contingencies and income tax (both current and deferred).

Segment revenue and expenses:

Segment revenue and expense are directly attributable to the segment. Segment revenue and expenses do not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax

1 Key Management Personnel

Mr.Challa Rajendra Prasad, Chairman & Managing Director Mr.Challa Srishant, Executive Director

2 Relative of Key Management Personnel

Mrs.Challa Shantha Prasad - (Spouse of Mr.Challa Rajendra Prasad C.M.D.)

3 Subsidiaries

M/s.Associated Coffee Merchants (International) Limited – uK

(Subsidiary of CCL Products (India) Limited – India)

M/s.Complete Coffee Ltd. London (Subsidiary of Associated Coffee

Merchants (International) Limited - ACMIL)

M/s.The Priory Tea and Coffee Co.Ltd (Subsidiary of Associated Coffee

Merchants (International) Limited - ACMIL)

M/s.Ridge Futures Limited (Subsidiary of Associated Coffee

Merchants (International) Limited - ACMIL)

M/s.CCL Products (uK) Ltd (Subsidiary of Associated Coffee

Merchants (International) Limited - ACMIL)

M/s.Ernest A Breminer (Subsidiary of Associated Coffee

Merchants (International) Limited - ACMIL)

M/s. Jayanti Pte Ltd., Singapore

(Subsidiary of CCL Products (India) Limited – India)

M/s. Grandsaugreen SA, Switzerland

(Subsidiary of Jayanti Pte. Ltd., Singapore)

7 Previous Years figures are regrouped/rearranged/recasted wherever considered necessary to conform the current year figures

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