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Notes to Accounts of Harrisons Malayalam Ltd.

Mar 31, 2015

1. Rights, preferences and restrictions attached to Equity shares mentioned above :

The company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

Term loan from banks

a.Loan availed Rs.6,000.00 Lacs during 2010-11 and 2011-12 repayable in 17 quarterly instalments of Rs.333.30 Lacs commencing from September 2012 and final quarterly instalment of Rs.333.90 Lacs is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 3% per annum payable on a monthly basis from disbursement of the loan. During March 2014, the Company has revised the terms of repayment of the loan outstanding of Rs. 1,500 lacs (balance being paid) repayable in 5 quarterly instalments commencing from December 2015 of Rs. 166.67 Lacs and Rs. 333.33 Lacs for the balance 4 instalments upto December 2016. Year end balance is Rs. 1,500.01 Lacs (Previous year Rs. 1,500.01 Lacs).

b Loan availed of Rs.1,173.61 Lacs during 2012-2013 is repayable in 31 quarterly instalments of Rs.36.69 Lacs commencing from July 2014 and final quarterly instalment of Rs. 36.22 Lacs, is secured by equitable mortgage to be created on immovable property of the Company situated in Mayfield Estate. The loan carries an interest rate of base rate plus 2.75% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs. 1,063.58 Lacs (Previous year Rs. 1,173.61 Lacs)

c Loan availed of Rs. 4,000.00 Lacs during the year 2013-14 is repayable in 24 quarterly instalments repayable as 6 quarterly instalments of Rs. 50.00 Lacs commencing from June 2015 upto September 2016, 4 quarterly instalments of Rs. 100.00 Lacs from December 2016 to September 2017, 8 quarterly instalment of Rs. 200.00 Lacs from December 2017 to September 2019, 4 quarterly instalments of Rs. 250.00 Lacs from December 2019 to September 2020 and 2 quarterly final instalments of Rs. 350 Lacs from December 2020 to March 2021, is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 2% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs. 4,000.00 Lacs (Previous year Rs. 4,000.00 Lacs).

Term loan from others

d Term loan from others are secured by hypothecation of assets acquired out of these loans which are repayable in equated monthly instalments (ranging between 3 to 5 years) along with the applicable interest rates (ranging between 10.49% to 15.50%).

Secured by equitable mortgage of immovable properties of the Company situated in Arrapetta Estate, hypothecation of standing crop in Achoor, Arrapetta, Panniar, Mayfield , Lahai, Isfield and Nagamallay Estates and by hypothecation of stocks of tea, rubber, trading merchandise, stores and spares, book debts and other movable assets both present and future.

25.1 In keeping with the Company's gratuity scheme ( an unfunded defined benefit plan ), eligible employees are entitled for gratuity benefit (as per the The Payment of Gratuity Act, 1972 ) on retirement/death/incapacitation/ termination. Also refer note 1.11(ii)( c ) for accounting policy relating to gratuity. Following are the further particulars with respect to gratuity:-

As at March 31, As at March 31, 2015 2014 Rs. Lacs Rs. Lacs

2. Contingent Liabilities and commitments

Contingent Liabilities :

a) Claims against the Company not acknowledged as debt

i. Employee related 367.59 324.71

ii. Penalties under section 14B of Employees' Provident Fund 59.33 49.41 Miscellaneous Provisions Act 1952

iii. Disputed Income Tax matters 1,302.59 1,019.97

iv The Government of Kerala had issued a notification in February 2006, 205.47 348.49 enhancing the minimum wages of plantation workers which has been challenged by the Association of Planters of Kerala of which the Company was a member and an interim stay was granted by the High Court of Kerala. As the Company resigned from Association of Planters of Kerala with effect from 12.02.2007, a separate writ petition was filed and an interim stay of the Government Notification obtained.

b) Others

(i) Outstanding bills discounted with bank 77.78 -

3. Commitments :

Estimated amount of contracts remaining to be executed on Capital Account 1.53 121.94 and not provided for, net of advance payments of Rs.22.30 lacs (Previous year Rs.68.24 lacs)

4. No adjustment is required to be made in the accounts in respect of :

a An area of 807 hectares (approximately) [Previous Year 807 hectares (approximately)], which is on a leasehold tenure falls under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969. Company's appeal challenging the Order of the Settlement Officer rejecting its application for Patta is pending before the District Court, Ooty. The status quo Orders passed by the Madras High Court challenging the notification of 335 Hectares (Previous Year 335 hectares) out of this area as forest by the Government of Tamil Nadu is also in force.

b An area of 178 hectares (approximately) [Previous Year 125.80 hectares (approximately)] deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company's claim for the exclusion of the area from the purview of the Act is pending decision of the Forest Tribunal, Palghat and restoration by the Forest Department.

c An area of 2588 hectares (approximately) [Previous Year 2588 hectares (approximately)] liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending in the High Court of Kerala.

d The Vythiri Taluk Land Board's order directing the Company to surrender 707 hectares (approximately) [Previous Year 707 hectares (approximately)] as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythri Taluk Land Board for fresh consideration and disposal.

e An area of 415 hectares (approximately) [Previous Year 415 hectares (approximately)] held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

f An area of 1152 hectares (approximately) [Previous Year 1310 hectares (approximately)] in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta ,Sub-Court, Sulthan Bathery and High Court of Kerala.

g An area of 304 hectares (approximately) [Previous Year 304 hectares (approximately)] re-notified as vested forests by the Government of Kerala as the Company's writ petition challenging the notification is pending before the High Court of Kerala.

h An area of 1982.45 hectares (Previous Year 1982.45 hectares) of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

i An area of 336.64 hectares (Previous Year 336.64 hectares) of rubber field of Koney estate in respect of which the Writ Petition filed by the Company and the status quo order passed by the High Court of Kerala challenging the proceedings intiated by the Government of Kerala to resume such lands, is in force.

j An area of 12154 hectares (Previous Year Nil) in respect of which the Government of Kerala has issued order of resumption under the Kerala Land Conservancy Act claiming it to be Government Lands, the further proceedings of which has been prevented by High Court of Kerala, on a writ petition filed by the Company.

5. Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Clearing and Shipping, Fruits, Spices and others and Wyanaad Medical Fund. The geographical segments are identified on the basis of the location of customers.

6. Related Party Disclosures

a List of Related Parties where control exists (Wholly Owned Subsidiaries)

HML Engineering Company Limited (HECL)

Enchanting Plantations Limited (EPL)

Harmony Plantations Limited (HPL)

Malayalam Plantations Limited (MPL) (100% subsidiary of EPL)

b Key management personnel

Mr. V Venugopal (Manager)

Mr. Ashok Goyal (Whole Time Director) with effect from April 24, 2014 till July 24, 2014

Mr. N.Dharma raj (Whole Time Director) with effect from August 8, 2014

7. Taxation

a The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

b No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

c The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 "Accounting for Taxes on Income" in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realised.

d The company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realised.

8. The Company has entered into a composite scheme of arrangement and amalgamation amongst Harrisons Malayalam Limited (HML) and Enchanting Plantations Limited (100% subsidiary of HML) and Malayalam Plantations Limited (100% subsidiary of Enchanting Plantations Limited) and Harmony Plantations Limited (100% subsidiary of HML) and their respective shareholders and their creditors ("the Scheme"). The Scheme has been approved by the Board of Directors and sanctioned by the shareholders of the Company and the Company has intimated to the Stock Exchanges in which the Company's shares are listed. As per the Scheme interalia certain Tea and Rubber estates would be transferred/ demerged to its subsidiaries. The Scheme is now pending before the High Court of Kerala.

9. The Company in its Board meeting dated May 15, 2012 has approved the plan for transferring its Engineering division to its wholly owned subsidiary and has also obtained the consent of its shareholders by way of postal ballot. The Engineering division is a separate business segment as per AS 17 "Segment Reporting". The decision is consistent with the Company's long term strategy to focus on core plantation activity. The Board in its meeting of May 28, 2015, discussed on this to evalauate the modus operandi/ process of transfer.

10. Previous year's figures have been regrouped / rearranged wherever necessary to conform to the current year's presentation.


Mar 31, 2014

1 Share Capital

As at March 31, As at March 31, 2014 2013 Rs. Lacs Rs. Lacs

(i) Authorised:

3,00,00,000 Equity Shares 3,000.00 3,000.00 of Rs.10 each

(ii) Issued, Subscribed and Paid up:

1,84,55,405 Equity Shares 1,845.54 1,845.54 of Rs.10 each fully paid up

Less: Allotment Money in Arrears 0.11 0.11

1,845.43 1,845.43

(iii) Rights, preferences and restrictions attached to Equity shares mentioned above :

The company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

Term loan from banks

a) Loan availed Rs.6,000.00 Lacs during 2010-11 and 2011-12 repayable in 17 quarterly instalments of Rs.333.30 Lacs commencing from September 2012 and final quarterly instalment of Rs.333.90 Lacs is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 3% per annum payable on a monthly basis from disbursement of the loan. During March 2014, the Company has revised the terms of repayment of the loan outstanding of Rs 1,500 lacs (balance being paid) repayable in 5 quarterly instalments commencing from December 2015 of Rs 166.67 Lacs and Rs 333.33 Lacs for the balance 4 instalments upto December 2016. Year end balance is Rs.1,500.01 Lacs (Previous year Rs.5,000.01 Lacs).

b) Loan availed of Rs.1,173.61 Lacs during 2012-2013 is repayable in 31 quarterly instalments of Rs.36.69 Lacs commencing from July 2014 and final quarterly instalment of Rs. 36.22 Lacs, is secured by equitable mortgage to be created on immovable property of the Company situated in Mayfield Estate. The loan carries an interest rate of base rate plus 2.75% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs 1,173.61 Lacs (Previous year Rs 1,173.61 Lacs)

c) Loan availed of Rs 4,000.00 Lacs during the year is repayable in 24 quarterly instalments repayable as 6 quarterly instalments of Rs. 50.00 Lacs commencing from September 2015 upto December 2016, 4 quarterly instalments of Rs 100.00 Lacs from March 2017 to December 2017, 8 quarterly instalment of Rs 200.00 Lacs from March 2018 to December 2019, 4 quarterly instalments of Rs 250.00 Lacs from March 2020 to December 2020 and 2 quarterly final instalments of Rs. 350 Lacs from March 2021 to June 2021, is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 2% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs.4,000.00 Lacs (Previous year Rs. Nil).

Term loan from others

d) Term loan from others are secured by hypothecation of assets acquired out of these loans which are repayable in equated monthly instalments (ranging between 3 to 5 years) along with the applicable interest rates (ranging between 10.49 to 15.50 % ).

As at March 31, 2014 As at March 31, 2013 Rs. Lacs Rs. Lacs

2 Contingent Liabilities and commitments

2.1 Contingent Liabilities :

Claims against the Company not acknowledged as debt

i. Employee related 324.71 560.03

ii. Penalties under section 49.41 93.49 14B of Employees'' Provident Fund Miscellaneous Provisions Act 1952

iii. Disputed Income Tax matters 1,019.97 674.10

iv The Government of Kerala had 348.49 348.49 issued a notification in February 2006, enhancing the minimum wages of plantation workers which has been challenged by the Association of Planters of Kerala of which the Company was a member and an interim stay was granted by the High Court of Kerala. As the Company resigned from Association of Planters of Kerala with effect from 12.02.2007, a separate writ petition was filed and an interim stay of the Government Notification obtained.

2.2 Commitments :

Estimated amount of contracts 121.94 19.89 remaining to be executed on Capital Account and not provided for, net of advance payments of Rs.68.24 lacs (Previous year Rs.35.12 lacs)

3 No adjustment is required to be made in the accounts in respect of :

a) An area of 807 hectares (approximately) [Previous Year 807 hectares (approximately)], which is on a leasehold tenure falls under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969. Company''s appeal challenging the Order of the Settlement Officer rejecting its application for Patta is pending before the District Court, Ooty. The status quo Orders passed by the Madras High Court challenging the notification of 335 Hectares out of this area as forest by the Government of Tamil Nadu is also in force.

b) An area of 125.80 hectares (approximately) [Previous Year 889 hectares (approximately)] deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company''s claim for the exclusion of the area from the purview of the Act is pending decision of the Forest Tribunal, Palghat and restoration by the Forest Department.

c) An area of 2588 hectares (approximately) [Previous Year 2588 hectares (approximately)] liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending in the High Court of Kerala.

d) The Vythiri Taluk Land Board''s order directing the Company to surrender 707 hectares (approximately) [Previous Year 707 hectares (approximately)] as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythri Taluk Land Board for fresh consideration and disposal.

e) An area of 415 hectares (approximately) [Previous Year 415 hectares (approximately)] held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

f) An area of 1310 hectares (approximately) [Previous Year 1460 hectares (approximately)] in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta, Sub-Court, Sulthan Bathery and High Court of Kerala.

g) An area of 22.45 hectares (approximately) [Previous Year 22.45 hectares (approximately)] resumed by the Government of Kerala, as the Government''s writ appeal challenging the High Court judgement directing to return the land to the Company is pending before the High Court of Kerala.

h) An area of 304 hectares (approximately) [Previous Year 304 hectares (approximately)] re-notified as vested forests by the Government of Kerala as the Company''s writ petition challenging the notification is pending before the High Court of Kerala.

i) An area of 1982.45 hectares (Previous Year 1982.45 hectares) of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

j) An area of 336.64 hectares (Previous Year 336.64 hectares) of rubber field of Koney estate in respect of which the Writ Petition filed by the Company and the status quo order passed by the High Court of Kerala challenging the proceedings intiated by the Government of Kerala to resume such lands, is in force.

k) Guarantee of Rs. Nil (Previous Year Rs. 1,800 Lacs), provided to the Registrar General, High Court of Kerala for commencing the felling of trees in litigated lands as indicated interalia in points a to j above is secured by equitable mortgage of property situated at Mumbai and Coimbatore.

4 Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Clearing and Shipping, Fruits, Spices and others and Wyanaad Medical Fund. The geographical segments are identified on the basis of the location of customers.

5 Earnings Per Share

Particulars 2013-14 2012-13 Rs. Lacs Rs. Lacs

a) Profit after tax 441.50 229.76 (including extraordinary item) (Rs in lacs )

b) Profit after tax 439.77 229.76 (excluding extraordinary item) (Rs in lacs )

c) Number of equity shares at the beginning of the year 18,455,405 18,455,405

d) Number of equity shares 18,455,405 18,455,405 at the end of the year

e) Weighted average number 18,455,405 18,455,405 of equity shares outstanding

f) Nominal Value of each 10.00 10.00 equity share (Rs.)

g) Basic and diluted earnings 2.39 1.24 per share (including extraordinary item) (Rs.) (a/e)

h) Basic and diluted earnings 2.38 1.24 per share (excluding extraordinary item) (Rs.) (b/e)

6 Taxation

a) The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

b) No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

c) The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 "Accounting for Taxes on Income" in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realised.

d) The company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realised.

7 The Company has entered into a composite scheme of arrangement and amalgamation amongst Harrisons Malayalam Limited (HML) and Enchanting Plantations Limited (100% subsidiary of HML) and Malayalam Plantations Limited (100% subsidiary of Enchanting Plantations Limited) and Harmony Plantations Limited (100% subsidiary of HML) and their respective shareholders and their creditors ("the Scheme"). The Scheme has been approved by the Board of Directors and sanctioned by the shareholders of the Company and the Company has intimated to the Stock Exchanges in which the Company''s shares are listed. As per the Scheme interalia certain Tea and Rubber estates would be transferred/ demerged to its subsidiaries. The Scheme is now pending before the High Court of Kerala.

8 The Company in its Board meeting dated May 15, 2012 has approved the plan for transferring its Engineering division to its wholly owned subsidiary and has also obtained the consent of its shareholders by way of postal ballot. The Engineering division is a separate business segment as per AS 17 "Segment Reporting". The decision is consistent with the Company''s long term strategy to focus on core plantation activity.

The operating activities of the Company''s discontinuing operations are summarised as follows:

9 Previous year''s figures have been regrouped / rearranged wherever necessary to conform to the current year''s presentation.


Mar 31, 2013

1.1 Certain employees of the Company were members of the Provident Fund Trust set up by the Company and the Company had an obligation to fund any shortfall in return on plan asset over the interest rate prescribed by the authorities from time to time. In view of Company''s obligation to meet the shortfall, it was a defined benefit plan.

During the year the Company on obtaining necessaray approvals from the Employees Provident Fund Organisation transferred the corpus of the aforesaid Trust to the Regional Provident Fund and discontinued making contribution to the said Trust and is contributing to the Regional Provident Fund effective January 1, 2013. Pursuant to above, all contributions to Provident Fund effective January 1, 2013 are defined contribution plan.

1.2 Commitments :

Estimated amount of contracts remaining to be executed on Capital Account and not provided for, net of advance payments of Rs. 35.12 lacs (Previous year Rs.75.68 lacs) 19.89 80.37

2 No adjustment is required to be made in the accounts in respect of:

a An area of 807 hectares (approximately), which is on a lease hold tenure falling under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969. Company''s appeal challenging the order of the Settlement Officer rejecting its application for patta is pending before the District Court,Ooty. The status quo orders passed by the Madras High Court challenging the notification of vesting of 335 hectares out of the aforesaid area as forest lands by the Government of Tamil Nadu are also in force.

b An area of 889 hectares (approximately) deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company''s claim for the exclusion of the area from the purview of the Act has been upheld by the Forest Tribunal, Palghat.

c An area of 2588 hectares (approximately) liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending in the High Court of Kerala.

d The Vythiri Taluk Land Board''s order directing the Company to surrender 707 hectares (approximately) as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythri Taluk Land Board for fresh consideration and disposal.

e An area of 415 hectares (approximately) held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

f An area of 1460 hectares (approximately) in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta ,Sub-Court, Sulthan Bathery and High Court of Kerala.

g An area of 22.45 hectares (approximately) resumed by the Government of Kerala, as the Government''s writ appeal challenging the High Court judgement directing to return the land to the Company is pending before the High Court of Kerala.

h An area of 304 hectares (approximately) re-notified as vested forests by the Government of Kerala as the Company''s writ petition challenging the notification is pending before the High Court of Kerala.

i An area of 1982.45 hectares of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

j An area of 336.64 hectares of rubber field of Koney estate in respect of which the Writ Petition filed by the Company and the status quo order passed by the High Court of Kerala challenging the proceedings intiated by the Government of Kerala to resume such lands, is in force.

k Guarantee of Rs. 1,800 lacs, provided to the Registrar General, High Court of Kerala for commencing the felling of trees in litigated lands as indicated interalia in points a to j above is secured by equitable mortgage of property situated at Mumbai and Coimbatore.

3 Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Clearing and Shipping, Fruits, Spices and others and Wyanaad Medical Fund. The geographical segments are identified on the basis of the location of customers.

(a) Primary Segment Information - By Business Segments *

4 Related Party Disclosures

a List of Related Parties where control exists (Wholly Owned Subsidiaries)

HML Engineering Company Limited (HECL) effective June 6, 2011

Enchanting Plantations Limited (EPL) effective February 8, 2012

Harmony Plantations Limited (HPL) effective February 12, 2012

Malayalam Plantations Limited (MPL) effective November 11, 2011 ( 100% subsidiary of EPL)

b Key management personnel

Mr. Pankaj Kapoor (Managing Director) upto June 30, 2012. Mr. V Venugopal (Manager) with effect from August 14, 2012

5 Taxation

a The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

b No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

c The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 "Accounting for Taxes on Income" in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realised.

d The Company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realised.

6 The Company has entered into a composite scheme of arrangement and amalgamation amongst Harrisons Malayalam Limited (HML) and Enchanting Plantations Limited (100% subsidiary of HML) and Malayalam Plantations Limited (100% subsidiary of Enchanting Plantations Limited) and Harmony Plantations Limited (100% subsidiary of HML) and their respective shareholders and their creditors ("the Scheme"). The Scheme has been approved by the Board of Directors and sanctioned by the shareholders of the Company and the Company has intimated to the Stock Exchanges in which the Company''s shares are listed. As per the Scheme interalia certain Tea and Rubber estates would be transferred/ demerged to its subsidiaries. The Scheme is now pending before the High Court of Kerala.

7 The Company in its Board meeting dated May 15, 2012 has approved the plan for transferring its Engineering division to its wholly owned subsidiary and has also obtained the consent of its shareholders by way of postal ballot. The Engineering division is a separate business segment as per AS 17 "Segment Reporting". The decision is consistent with the Company''s long term strategy to focus on core plantation activity.

8 Previous year''s figures have been regrouped / rearranged wherever necessary to confrom to the current year''s presentation.


Mar 31, 2012

(i) Rights, preferences and restrictions attached to Equity shares mentioned above :

The company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

Term loan from banks

a Loan availed Rs.5,800 Lacs during financial years 2008-09 and 2009-10 repayable in 17 quarterly instalments of Rs.322.23 Lacs repayable from April 2009 and final instalment of Rs.322.09 Lacs along with interest of BPLR minus 1.25% is secured by equitable mortgage of immovable properties of the Company situated in Wentworth Estate and Coimbatore factory and also by a charge on the movable assets of the Company situated in the above properties. Year end balance is Rs Nil Lacs (previous year Rs.3,122.16 Lacs).

b Loan availed Rs. 883.54 Lacs during financial years 2009-10 and 2010-11 repayable in 32 quarterly instalments of Rs.23.80 Lacs commencing from June 2014 and 4 quarterly instalments of Rs.30.485 Lacs commencing from 2022-23 is secured on a pari passu basis by equitable mortgage of immovable property of the Company situated in Mayfield Estate and also by a charge on the movable assets of the Company situated in the above estate. The loan carries an interest rate of 0.75% above SBAR payable on a monthly basis from disbursement of the loan. Year end balance is Rs. 883.54 Lacs (previous year Rs.883.54 Lacs).

c Loan availed Rs.290.07 Lacs during financial years 2009-10 and 2010-11 repayable in 35 quarterly instalments of Rs.8.06 Lacs commencing from June 2014 and final quarterly instalment of Rs.7.97 Lacs is secured on a pari passu basis by equitable mortgage of immovable property of the Company situated in Mayfield Estate and also by a charge on the movable assets of the Company situated in the above estate. The loan carries an interest rate of 12.50% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs.290.07 Lacs (previous year Rs.290.07 Lacs).

d Loan availed Rs.6,000.00 Lacs during 2010-11 and 2011-12 repayable in 17 quarterly instalments of Rs.333.30 Lacs commencing from September 2012 and final quarterly instalment of Rs.333.90 Lacs is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 3% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs.6,000.00 Lacs (previous year Rs.4,000.00 Lacs).

Term loan from others

e Term loan from others are secured by hypothecation of assets acquired out of these loans which are repayable in equated monthly instalments (ranging between 3 to 4 years) along with the applicable interest rates (ranging between 10.49 to 15.50 % ).

Secured by equitable mortgage of immovable properties of the Company situated in Arrapetta Estate, hypothecation of standing crop in Achoor, Arrapetta, Panniar, Mayfield , Lahai, Isfield and Nagamallay Estates and by hypothecation of stocks of tea, rubber, trading merchandise, stores and spares, book debts and other movable assets both present and future. Cash credit carries an interest within the range of 13 - 18 % p.a.

1. Land and development includes

a) Certain leasehold lands the value of which is not separately ascertainable

b) Rs. 13,957.19 Lacs added on revaluation during 1990-1991 and credited to Fixed Assets Revaluation Reserve.

c) Rs. 22,739.61 Lacs added on revaluation during 2009-2010 and credited to Fixed Assets Revaluation Reserve. The credit to Fixed Assets Revaluation Reserve has been adjusted against the excess of liabilities over the assets taken over (Rs.21,233.80 lacs) and the carrying value of investments in the shares of the wholly owned subsidiary companies (Rs. 1,218.91 lacs) and the balance amount of Rs.286.90 Lacs was transferred to Capital Reserve arising from amalgamation as per the scheme.

2. Plant and Machinery

Additions to Plant and Machinery is net of capital subsidy of Rs.72.30 lacs ( Previous year Rs. 17.92 lacs)

1.1 In keeping with the Company's gratuity scheme ( an unfunded defined benefit plan ), eligible employees are entitled for gratuity benefit (as per the Payment of Gratuity Act, 1972) on retirement/death/incapacitation/ termination. Also refer note 1.11 (ii) (c) for accounting policy relating to gratuity. Following are the further particulars with respect to gratuity:-

The estimation of future salary increase considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in employment market.

1.2 Contributions towards provident funds are recognised as expense for the year. The Company has set up Provident Fund Trust in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make monthly contributions to the Funds at specified percentage of the employee's salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trust invests funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of tthe Trust is not lower than the rate of interest declared annually by the Government under The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

In terms of the Guidance on implementing Accounting Standard 15 (Revised 2005) on Employee Benefits issued by the Accounting Standard Board of The Institute of Chartered Accountants of India (ICAI), a provident fund set up by the Company is defined benefit plan in view of the Company's obligation to meet shortfall, if any, on account of interest.

Unlike in earlier years, the Actuary has carried out actuarial valuation of plan's liabilities and interest rate guarantee obligations as at the balance sheet date using Project Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the Company as at the balance sheet date. Further during the year, the Company's contribution of Rs.15.75 lacs ( Previous year - Rs.12.71 lacs) to the Provident Fund Trust has been expensed under the "Contribution to Provident Fund'. Disclosures given hereunder are restricted to the information available as per the Actuary's report.

2 Contingent Liabilities and commitments

Contingent Liabilities :

2.1 Claims against the Company not acknowledged as debt

i. Employee related 468.19 352.38

ii. Penalties under section 14B of Employees'

Provident Fund Miscellaneous Provisions Act 1952 146.04 95.59

iii. Disputed Income Tax matters 469.14 323.67

iv. Disputed Sales Tax matters - 61.53

v. Customs duty payable pending fulfillment of export obligation - 23.50

vi. The Government of Kerala had issued a notification in February 2006, enhancing the minimum wages of plantation workers which has been challenged by the Association of Planters of Kerala of which the Company was a member and an interim stay was granted by the High Court of Kerala. As the Company resigned from Association of Planters of Kerala with effect from 12.02.2007, a separate writ petition was filed and an interim stay of the Government Notification obtained. 348.49 382.75

2.2 No adjustment has been made in the accounts in respect of :

a An area of 335 hectares (approximately) declared to be vested with the Government of Tamil Nadu under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969 as this has been disputed by the company.

b An area of 1050 hectares (approximately) deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company's claim for the exclusion of the area from the purview of the Act has been upheld by the Forest Tribunal, Palghat.

c An area of 2588 hectares (approximately) liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending before High Court of Kerala.

d The Vythiri Taluk Land Board's order directing the Company to surrender 707 hectares (approximately) as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Taluk Land Board, Vythiri for fresh consideration and disposal.

e An area of 415 hectares (approximately) held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

f An area of 1460.101 hectares (approximately) in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta and Sub-Court, Sulthan Bathery.

g An area of 22.45 hectares (approximately) resumed by the Government of Kerala, as the Company's Writ Petition challenging the resumption order is pending before the High Court of Kerala.

h An area of 304 hectares (approximately) re-notified as vested forests by the Government of Kerala as the Company's Writ Petition challenging the notification is pending before the High Court of Kerala.

i An area of 4896.65 acres of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

3 Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Clearing and Shipping, Fruits, Spices and others and Wyanaad Medical Fund. The geographical segments are identified on the basis of the location of customers.

(a) Primary Segment Information - By Business Segments *

All operating facilities are located in India.

* Figures in bracket represent previous year's figures

4 Related Party Disclosures

a List of Related Parties where control exists (Wholly Owned Subsidiaries)

HML Engineering Company Limited (HECL) effective June 6, 2011 Enchanting Plantations Limited (EPL) effective February 8, 2012 Harmony Plantations Limited (HPL) effective February 12, 2012 Malayalam Plantations Limited (MPL) effective November 11, 2011

b Key management personnel

Mr. Pankaj Kapoor (Managing Director)

5. Change in Accounting Estimate

During the year the Company has reassessed the useful life of depreciable fixed assets based on economic benefits derived from these assets. Based on this reassessment, depreciation rate for Furniture and Fittings has been revised from 18.10% to 33.33% (under written down value method). As a result of this change, the depreciation charge has increased by Rs.9.28 lacs with corresponding impact on the profit for the year.

6. Taxation

a The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

b No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

c The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 "Accounting for Taxes on Income" in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realised.

d The company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realised.

7. The Company in its Board meeting dated May 15, 2012 has decided to obtain the consent of its shareholders by way of postal ballot for transferring its Engineering Division to its wholly owned subsidiary HML Engineering Company Limited and the same has been subsequently sanctioned by the shareholders. Also refer note 37 for results and capital employed of the Engineering Division.

8. The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per the Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for the previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2011

As at As at

March 31,2011 March 31,2010

Rs. Lacs Rs. Lacs 1. Contingent Liabilities

i. Claims against the Company not acknowledged as debt

A Employee related 352.38 206.21

B Interest @12% on Levy of damages under section 14B of Employees' Provident Fund Miscellaneous Provisions Act 1952. 95.59 81.50

ii. Disputed Sales Tax/ Income Tax demands 385.20 69.53

iii. Customs Duty payable, pending fulfillment of export obligation 23.50 23.50

iv. The Government of Kerala had issued a notification in February 2006, enhancing the minimum wages of plantation workers which has been challenged by the Association of Planters of Kerala of which the Company was a member and an interim stay was granted by the High Court of Kerala. As the Company resigned from Association of Planters of Kerala with effect from 12.02.2007, a separate writ petition was filed and an interim stay of the Government Notification obtained. The possible impact would be Rs. 822.75 Lacs (Previous year Rs.822.75 Lacs), against which an amount of Rs 489.04 Lacs has been paid as advance which has not been expensed as the Company has been legally advised that the claim is not maintainable.

2. No adjustment has been made in the accounts in respect of:

(a) An area of 398 hectares (approximately) declared to be vested with the Government of Tamil Nadu under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969 as this has been disputed by the company.

(b) An area of 1050 hectares (approximately) deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company's claim for the exclusion of the area from the purview of the Act has been upheld by the Forest Tribunal, Palghat.

(c) An area of 2588 hectares (approximately) liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending before Supreme Court of India.

(d) The Vythiri Taluk Land Board's order directing the Company to surrender 707 hectares (approximately) as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Taluk Land Board, Vythiri for fresh consideration and disposal.

(e) An area of 415 hectares (approximately) held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

(f) An area of 1435 hectares (approximately) in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta and Sub-Court, Sulthan Bathery.

(g) An area of 22.45 hectares (approximately) resumed by the Government of Kerala, as the Company's Writ Petition challenging the resumption order is pending before the High Court of Kerala

(h) An area of 304 hectares (approximately) re-notified as vested forests by the Government of Kerala as the Company's Writ Petition challenging the notification is pending before the High Court of Kerala.

(i) An area of 4896.65 acres of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

3. Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisation structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture and Clearing and Shipping. The geographical segments are identified on the basis of location of customers.

4. Related Party Disclosures

a) Key management personnel

Mr. Sanjiv Goenka (Chairman)

Mr. Pankaj Kapoor (Managing Director)

b) The above information regarding related parties have been determined to the extent such parties have been identified on the basis of information available with the Company.

5. Taxation

(a) The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

(b) No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

(c) The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 'Accounting for Taxes on Income" in the absence of virtual certainty that sufficient future taxable income will be available against which such asset could be realised.

(d) The company has not recognized MAT credit in the absence of reasonable certainty that sufficient future tax profit will be available against which such credit could be adjusted.

6. Previous year's figures have been regrouped/ reclassified wherever necessary to conform to the current year's presentation.


Mar 31, 2010

1.1 Contingent Liabilities

1.1.1 1,623,734 shares of CESC Ltd., having a cost of Rs. 353,811,639/- is pledged with IDBI Trusteeship Services Limited as a borrowing arrangement of CESC Ltd.

1.1.2 Disputed income tax dues relating to AY 1999 - 00 amounting to Rs. 8,680 for which a rectification application is still pending before the assessing authority

1.2 Segment Reporting

The Companys income for the year consisted of dividend income and accordingly there are no reportable segments.

1.3 Related Party Transactions

Disclosure of Related Party Transaction in accordance with Accounting Standard (AS-18) "Related Party Disclosures" issued by the Institute of Chartered Accountants of India:

Name of the Company Relationship

Harrisons Malayalam Ltd. Holding Company (Till April 1, 2009) Associate (From April 2, 2009)

1.4 Deferred Tax

Deferred tax asset on account of unabsorbed tax losses is not recognized during the year since there is no virtual certainty of taxable profits in the foreseeable future which would offset the asset as the Company.has mainly one source of income being dividend which is exempt under Income Tax Act.

1.5 Previous years figures have been regrouped / reclassified wherever necessary to conform to the classification for the year.

 
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