Mar 31, 2018
NOTES TO STANDALONE FINANCIAL STATEMENTS FDR THE YEAR ENDED 31ST MARCH 2018
(Rs. in lakhs)
48. The Company has concluded the buyback of 27,00,000 equity shares as approved by the Board of Directors on 18th November 2017. This has resulted in a total cash outflow of Rs. 3483. In line with the requirement of Companies Act 2013, an amount of Rs. 3213 has been utilized from General Reserve. Further, Capital Redemption Reserve of Rs. 270 (representing the nominal value of shares bought back) has been created as an apportionment from General Reserve. Consequent to such buy back, share capital has been reduced to Rs. 930.08.
49. Financial Instruments and Related Disclosures
a. Fair Value of Financial Assets and Financial Liabilities (Non-Current and Current):
As at 31st March, 2018 |
As at 31st March, 2017 |
As at 1st April, 2016 |
|||||||
Particulars |
FVTPL |
FVOCI |
Amortised Cost |
FVTPL |
FVOCI |
Amortised Cost |
FVTPL |
FVOCI |
Amortised Cost |
Financial Assets |
|||||||||
Investments |
|||||||||
-Joint Ventures & Associates |
- |
- |
1118.83 |
- |
- |
1118.83 |
- |
- |
- |
-Equity Instruments |
- |
110.32 |
- |
1,530.74 |
- |
- |
717.31 |
- |
|
-Mutual Fund |
4,101.69 |
- |
- |
5,697.27 |
- |
- |
8,292.82 |
- |
- |
-Bonds and Debentures |
- |
- |
1,373.31 |
- |
- |
1,373.31 |
- |
- |
1,373.31 |
Security Deposits |
- |
- |
1,163.72 |
- |
- |
1,154.13 |
- |
- |
749.02 |
Loans Given |
- |
- |
4.03 |
- |
- |
6.93 |
- |
- |
10.04 |
Trade Receivables |
- |
- |
74.12 |
- |
- |
390.70 |
- |
- |
57.77 |
Cash and Cash Equivalents |
- |
- |
237.99 |
- |
- |
374.03 |
- |
- |
662.16 |
Deposits with Nabard |
- |
- |
0.01 |
- |
- |
168.75 |
- |
- |
490.82 |
Interest Accured on Deposits |
- |
- |
40.01 |
- |
- |
55.42 |
- |
- |
60.55 |
Other Financial Assets |
- |
- |
0.28 |
- |
- |
4.65 |
- |
- |
54.27 |
Total Financial Assets |
4,101.69 |
110.32 |
4,012.30 |
5,697.27 |
1,530.74 |
4,648.75 |
8,292.82 |
717.31 |
3,457.94 |
Financial Liabilities |
|||||||||
Short Term Borrowings |
- |
- |
- |
- |
- |
- |
- |
- |
500.14 |
Trade Payables |
- |
- |
1,061.68 |
- |
- |
971.70 |
- |
- |
959.79 |
Employee Benefits Payable |
- |
- |
159.22 |
- |
- |
169.01 |
- |
- |
305.51 |
Total Financial Liabilities |
- |
- |
1,220.90 |
- |
- |
1,140.71 |
- |
- |
1,765.44 |
b. Financial risk management objectives
The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company continues to focus on a system-based approach to business risk management. The Company''s financial risk management process seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong internal control systems, the current Risk Management System rests on policies and procedures issued by appropriate authorities; process of regular reviews / audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation for the same.
I. Market risk
The Company''s business primarily agricultural in nature, exposes it to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of adverse weather conditions and lack of future markets. The Company closely monitors the changes in market conditions and select the sales strategies to mitigate its exposure to risk.
i. Foreign currency risk
The Company undertakes transactions denominated in foreign currency which results in exchange rate fluctuations. Such exchange rate risk primarily arises from transactions made in foreign exchange and reinstatement risks arising from recognised assets and liabilities, which are not in the Company''s functional currency (Indian Rupees). A significant portion of these transactions are in US Dollar, euro, etc.
The carrying amounts of the Company''s foreign currency denominated financial assets and financial liabilities, at the end of the reporting period are as follows:
USD |
INR (Rs.) |
EURO |
INR(Rs.) |
|
As at 31st March. 2018 |
||||
Financial Assets |
||||
Trade Receivables |
- |
- |
- |
- |
Cash and Cash Equivalents |
122,348 |
79.58 |
- |
- |
Financial Liabilities |
- |
- |
- |
- |
As at 31st March, 2017 |
||||
Financial Assets |
||||
Trade Receivables |
68,145 |
44.18 |
- |
- |
Cash and Cash Equivalents |
180,714 |
117.17 |
30,360 |
21.02 |
Financial Liabilities |
- |
- |
- |
- |
As at 1st April, 2016 |
||||
Financial Assets |
||||
Trade Receivables |
- |
- |
- |
- |
Cash and Cash Equivalents |
- |
- |
- |
- |
Financial Liabilities |
- |
- |
- |
- |
Foreign currency sensitivity
The impact of sensitivity analysis arising on account of outstanding foreign currency denominated assets and liabilities is insignificant.
ii. Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The objectives of the Company''s interest rate risk management processes are to lessen the impact of adverse interest rate movements on its earnings and cash flows and to minimise counter party risks.
The Company is exposed to interest rate volatilities primarily with respect to its short terms borrowings from banks as well as Financial Institutions. Such volatilities primarily arise due to changes in money supply within the economy and/or liquidity in banking system due to asset/liability mismatch, poor quality assets etc. of banks. The Company manages such risk by operating with banks having superior credit rating in the market as well as Financial Institutions.
Interest rate sensitivity
Since there is no borrowings being availed during the current year as well as in the previous year, hence no sensitivity analysis is done.
iii. Price risk
The Company invests its surplus funds primarily in equity shares and mutual funds measured at fair value.
Aggregate value of such investments as at 31st March, 2018 is Rs. 4,212.01 (31st March, 2017 -Rs. 7,228.01, 1st April, 2016-Rs. 9010.13).
Increase/ decrease of 5% would result in an impact (increase/ decrease) by Rs. 210.60 and Rs. 361.40 on total profit for the year ended 31st March 2018 and 31st March 2017 respectively.
II. Liquidity risk
Liquidity risk is the risk that the Company may encounter difficulty including seasonality in meeting its obligations. The Company mitigates its liquidity risks by ensuring timely collections of its trade receivables, close monitoring of its credit cycle and ensuring optimal movements of its inventories.
The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date.
Carrying Value |
On Demand |
Less than 1 year |
Beyond 1 year |
Total |
|
As at 31st March. 2018 |
|||||
Trade Payables |
1,061.68 |
1,061.68 |
- |
- |
1,061.68 |
Other Financial Liabilities |
159.22 |
159.22 |
- |
- |
159.22 |
Total |
1,220.90 |
1,220.90 |
- |
- |
1,220.90 |
As at 31st March, 2017 |
|||||
Trade Payables |
971.70 |
971.70 |
- |
- |
971.70 |
Other Financial Liabilities |
169.01 |
169.01 |
- |
- |
169.01 |
Total |
1,140.71 |
1,140.71 |
- |
- |
1,140.71 |
As at 1st April, 2016 |
|||||
Borrowings |
500.14 |
- |
500.14 |
- |
500.14 |
Trade Payables |
959.79 |
959.79 |
- |
- |
959.79 |
Other Financial Liabilities |
305.51 |
305.51 |
- |
- |
305.51 |
Total |
1,765.44 |
1,265.30 |
500.14 |
- |
1,765.44 |
I. Credit risk
Credit risk is the risk that counter party will not meet its obligations leading to a financial loss.
The Company has its policies to limit its exposure to credit risk arising from outstanding receivables. Management regularly assess the credit quality of its customer''s basis which, the terms of payment are decided. Credit limits are set for each customer which are reviewed on periodic intervals. The credit risk of the Company is low as the Company largely sells its teas through the auction system which is on cash and carry basis and through exports which are mostly backed by letter or credit or on advance basis.
The movement of the expected loss provision made by the Company are as under:
Particulars Expected Loss Provision |
As at 31st March, 2018 |
As at 31st March, 2017 |
As at 1st April, 2016 |
Opening Balance |
4.44 |
3.12 |
- |
Add: Provisions Made |
(1.38) |
1.32 |
3.12 |
Closing Balance |
3.06 |
4.44 |
3.12 |
c. Capital Management
The Company aims at maintaining a strong capital base maximizing shareholders'' wealth safeguarding business continuity and augments its internal generations with a judicious use of borrowing facilities to fund spikes in working capital that arise from time to time as well as requirements to finance business growth.
d. Fair value hierarchy
The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:
Particulars |
Fair Value Hierarchy (level) |
Fair Value |
||
31st March 2018 |
As at 31st March, 2017 |
As at 1st April, 2016 |
||
Financial Assets |
||||
Measured at Fair value through Profit or Loss |
||||
-Mutual Fund (Quoted) |
Level 1 |
1,847.42 |
1,032.00 |
934.31 |
-Mutual Fund (Unquoted) |
Level 2 |
2,254.27 |
4,665.27 |
7,358.51 |
Measured at Fair value through FVTOCI |
||||
-Equity Instruments (Quoted) |
Level 1 |
110.31 |
1,530.73 |
713.37 |
-Equity Instruments (Unquoted) |
Level 3 |
0.01 |
0.01 |
3.94 |
50. Fair value measurements for biological assets other than bearer plants:
The following table gives the information about how the fair value of the biological assets are determined:
Biological Asset |
31st March, 2018 |
As at 31st March, 2017 |
As at 1st April, 2016 |
Fair Value Hierarchy |
Valuation techniques and key Inputs |
Unharvested tea leaves |
66.91 |
57.72 |
59.63 |
Level 2 |
Fair value is being arrived at based on the observable market prices of made tea adjusted for manufacturing costs. The same is applied on quantity of the tea leaves unharvested using plucking averages of various fields. |
51. First-time adoption of Ind AS Transition to Ind AS
These are the Company''s first financial statements prepared in accordance with Ind AS.
An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.
a. Exemptions and Exceptions availed Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
a.1 Ind AS optional exemptions a.1.1 Business Combinations
Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.
The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated. The Company has applied same exemption for investment in associate.
a.1.2 Deemed Cost
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Asset.
Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.
a.1.3 Designation of previously recognised financial instruments
Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.
The Company has elected to apply this exemption for its investment in equity instruments. a.1.4 Measurement of Investment in Joint Venture
Ind AS 101 allows a first time adopter to measure investment in joint venture at cost determined in accordance with Ind AS 27 or at deemed cost i.e. fair value of such investments at the entity''s date of transition or previous GAAP carrying amount at the date of transitions.
Accordingly, the Company has adopted previous GAAP carrying amount of investment in joint venture at cost. The Company has elected to apply this exemption for its investment in joint venture.
a.2 Ind AS mandatory exceptions a.2.1 Estimates
An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:
i. Investment in equity instruments carried at FVOCI; ii. Investment in debt instruments carried at FVPL; and iii. Biological asset measured at fair value less cost to sell. a.2.2 Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
(Rs. in lakhs) b. Reconciliation of items of Balance sheet as at 1st April, 2016 (Transition Date) and as at 31st March, 2017
Particulars |
Notes |
As at 31st March, 2017 |
As at 1st April, 2016 |
||||
Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS Balance Sheet |
Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS Balance Sheet |
||
ASSETS |
|||||||
NON-CURRENT ASSETS |
|||||||
Property, Plant and Equipment |
V |
4,412.09 |
73.54 |
4,485.63 |
4,409.23 |
46.70 |
4,455.93 |
Capital Work-in-Progress |
543.07 |
- |
543.07 |
11.67 |
- |
11.67 |
|
Other Intangible Assets |
3.89 |
- |
3.89 |
7.83 |
(0.01) |
7.82 |
|
Financial Assets |
|||||||
i) Investments |
i |
4,222.84 |
562.17 |
4,785.01 |
2,677.83 |
100.11 |
2,777.94 |
ii) Loans |
153.63 |
- |
153.63 |
148.44 |
- |
148.44 |
|
Non-Current Tax Assets |
310.59 |
- |
310.59 |
308.32 |
- |
308.32 |
|
Deferred Tax Assets(Net) |
vi |
- |
- |
- |
6.97 |
(6.97) |
- |
Other Non-Current Assets |
45.28 |
- |
45.28 |
39.77 |
- |
39.77 |
|
9,691.39 |
635.71 |
10,327.10 |
7,610.06 |
139.83 |
7,749.89 |
||
CURRENT ASSETS |
|||||||
Inventories |
ii |
702.22 |
(17.21) |
685.01 |
881.99 |
(68.92) |
813.07 |
Biological Assets other than Bearer Plants |
iii |
- |
57.72 |
57.72 |
- |
59.63 |
59.63 |
Financial Assets |
|||||||
i) Investments |
i |
4,794.89 |
140.25 |
4,935.14 |
7,424.59 |
180.91 |
7,605.50 |
ii) Trade Receivables |
iv |
395.14 |
(4.44) |
390.70 |
60.89 |
(3.12) |
57.77 |
iii) Cash and Cash Equivalents |
374.03 |
- |
374.03 |
662.16 |
- |
662.16 |
|
iv) Loans |
1,007.43 |
- |
1,007.43 |
610.62 |
- |
610.62 |
|
v) Other Financial Assets |
228.83 |
(0.01) |
228.82 |
605.64 |
- |
605.64 |
|
Other Current Assets |
340.81 |
- |
340.81 |
297.54 |
- |
297.54 |
|
7,843.35 |
176.31 |
8,019.66 |
10,543.43 |
168.50 |
10,711.93 |
||
Total Assets |
17,534.74 |
812.02 |
18,346.76 |
18,153.49 |
308.33 |
18,461.82 |
|
EQUITY AND LIABILITIES |
|||||||
EQUITY |
|||||||
Equity Share Capital |
1,200.08 |
- |
1,200.08 |
1,200.08 |
- |
1,200.08 |
|
Other Equity |
12,778.65 |
667.37 |
13,446.02 |
12,171.30 |
206.65 |
12,377.95 |
|
13,978.73 |
667.37 |
14,646.10 |
13,371.38 |
206.65 |
13,578.03 |
||
LIABILITIES |
|||||||
NON-CURRENT LIABILITIES |
|||||||
Provisions |
953.94 |
- |
953.94 |
996.71 |
- |
996.71 |
|
Deferred Tax Liabilities (Net) |
vi |
189.52 |
67.57 |
257.09 |
- |
53.45 |
53.45 |
Other Non Current Liabilities |
V |
- |
70.63 |
70.63 |
- |
44.47 |
44.47 |
1,143.46 |
138.20 |
1,281.66 |
996.71 |
97.92 |
1,094.63 |
(Rs. in lakhs) |
|||||||
Particulars |
Notes |
As at 31st March, 2017 |
As at 1st April, 2016 |
||||
Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS Balance Sheet |
Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS Balance Sheet |
||
CURRENT LIABILITIES |
|||||||
Financial Liabilities |
|||||||
i) Borrowings |
- |
- |
- |
500.14 |
- |
500.14 |
|
ii) Trade Payables |
971.70 |
- |
971.70 |
959.79 |
- |
959.79 |
|
iii) Other Financial Liabilities |
169.01 |
- |
169.01 |
305.51 |
- |
305.51 |
|
Provisions |
1,165.55 |
- |
1,165.55 |
1,888.78 |
- |
1,888.78 |
|
Current Tax Liabilities(Net) |
- |
- |
- |
- |
- |
- |
|
Other Current Liabilities |
ix |
106.29 |
6.45 |
112.74 |
131.18 |
3.76 |
134.94 |
2,412.55 |
6.45 |
2,419.00 |
3,785.40 |
3.76 |
3,789.16 |
||
Total Equity and Liabilities |
17,534.74 |
812.02 |
18,346.76 |
18,153.49 |
308.33 |
18,461.82 |
c. Reconciliation of Statement of Profit & Loss for the year ended 31st March, 2017
Particulars |
Notes |
Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS |
Income |
||||
Revenue from Operations |
V |
12,128.64 |
7.81 |
12,136.45 |
Other Income |
i, iii, vii |
618.28 |
16.86 |
635.14 |
Total Revenue |
12,746.92 |
24.67 |
12,771.59 |
|
Expenses |
||||
Purchase of Stock - in trade |
1.95 |
- |
1.95 |
|
Changes in Inventories of Finished Goods |
ii |
138.42 |
(51.71) |
86.71 |
Employee Benefits Expense |
vii |
7,129.16 |
754.10 |
7,883.26 |
Finance Costs |
0.14 |
- |
0.14 |
|
Depreciation and Amortisation Expense |
V |
297.24 |
9.82 |
307.06 |
Other Expenses |
iv |
4,420.57 |
1.32 |
4,421.89 |
Total Expenses |
11,987.48 |
713.53 |
12,701.01 |
|
Profit/(Loss) before Exceptional Item & Tax |
759.44 |
(688.86) |
70.58 |
|
Exceptional Item |
134.40 |
- |
134.40 |
|
Profit before Tax |
893.84 |
(688.86) |
204.98 |
|
Tax Expense |
||||
Current Tax |
vi |
90.00 |
(89.90) |
0.10 |
Deferred Tax |
vi |
196.49 |
7.15 |
203.64 |
Profit/(Loss) for the Year |
607.35 |
(606.11) |
1.24 |
|
Other Comprehensive Income |
||||
(i) Items that will not be reclassified to profit or loss |
Particulars |
Notes |
Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS |
a. Remeasurements of the defined benefit plans |
- |
754.10 |
754.10 |
|
b. Equity Instruments through Other Comprehensive Income |
- |
402.63 |
402.63 |
|
c. Income tax relating to items that will not be reclassified to profit or loss |
- |
(89.90) |
(89.90) |
|
Total Other Comprehensive Income for the Year |
viii |
- |
1,066.83 |
1,066.83 |
Total Comprehensive Income for the Year |
607.35 |
460.72 |
1,068.07 |
d. Reconciliation of equity as reported under previous GAAP is summarized as follows:
Particulars |
Notes |
As at 31st March, 2017 |
As at 1st April, 2016 |
Total Equity (shareholder''s funds) under previous GAAP |
13,978.73 |
13,371.38 |
|
Adjustments: |
|||
Gain/(Loss) on fair valuation of Investments |
i |
702.42 |
281.02 |
Adjustment for changes in Inventory |
ii |
(17.21) |
(68.92) |
Adjustment of changes in Biological Asset |
iii |
57.72 |
59.63 |
Provision for expected credit loss |
iv |
(4.44) |
(3.12) |
Adjustment for Asset related to Government Grants with Property, Plant & Equipment and Depreciation thereon |
V |
(3.55) |
(1.54) |
Deferred Tax Impact on Ind AS adjustments |
vi |
(67.57) |
(60.42) |
Total adjustment to Equity |
667.37 |
206.65 |
|
Total Equity under Ind AS |
14,646.10 |
13,578.03 |
e. Effect of Ind AS adoption on the statement of cash flows for the year ended 31st March, 2017:
Particulars |
Notes |
Previous GAAP |
Effect of transition to Ind AS |
Ind AS |
Net cash flows from operating activities |
(787.80) |
36.69 |
(751.11) |
|
Net cash flows from investing activities |
999.95 |
(36.69) |
963.26 |
|
Net cash flows from financing activities |
(500.28) |
- |
(500.28) |
|
Net increase (decrease) in cash and cash equivalents |
(288.13) |
- |
(288.13) |
|
Cash and cash equivalents at the beginning of the period |
662.16 |
- |
662.16 |
|
Cash and cash equivalents at the end of the period |
374.03 |
- |
374.03 |
f. Notes to first-time Adoption
Note i: Fair valuation of Investments
Under the Indian GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and readability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March 2017.
Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognised in FVOCI - Equity investments reserve as at the date of transition and subsequently in the other comprehensive income for the year ended 31st March 2017.
Note ii: Inventories
Finished Goods : Under previous GAAP, tea stock has been valued at the lower of cost and net realizable value. Cost of inventories comprise all costs of purchase/production of green leaf, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Under Ind AS, cost of inventories comprise cost of purchase of green leaf, fair value of green leaf at the time of harvest less cost to sell, conversion cost (i.e 40 % of factory cost) and other costs incurred in bringing the inventories to their present location and condition.
Note iii: Biological Assets (i.e. unplucked leaf on tea bushes)
Under previous GAAP, biological assets i.e. unplucked leaf on tea bushes has neither been valued nor recognised in the financial statements. Under Ind AS, unplucked leaf on tea bushes has been measured at its fair value less cost to sell.
Note iv: Expected Credit Loss Model
Ind-AS 109 requires to recognize loss allowances on trade receivable and other financial assets of the Company, at an amount equal to the lifetime expected credit loss or the 12 month expected credit loss based on the increase in the credit risk.
Note v: Deferred Revenue
Under Indian GAAP, grants received from government agencies against specific fixed assets (Property, Plant and Equipment) are adjusted to the cost of the assets. Under IND AS the same has been presented as deferred revenue being amortised in the statement of profit & loss on a systematic basis.
Note vi: Deferred Tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.
Note vii: Re-Classifications
The Company has done the following rectifications as per the requirements of Ind-AS:
a. Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset/ liability.
b. Remeasurement gain/loss on long term employee defined benefit plans are re-classified from statement of profit and loss to OCI.
Note viii: Other Comprehensive Income
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.
52. Previous GAAP figures have been reclassified/regrouped to confirm the presentation requirements under IND AS and the requirements laid down in Division-ll of the Schedule-Ill of the Companies Act, 2013.
As per our Report of even date |
For and on behalf of the Board of Directors |
|
For Singhi & Co. |
Sd/- |
Sd/- |
Chartered Accountants |
Akhil Kumar Ruia |
Arup Kumar Chowdhuri |
Firm Registration Number- 302049E |
Wholetime Director |
Independent Director |
Sd/- |
DIN : 03600526 |
DIN: 00997826 |
Pradeep Kumar Singhi |
||
Partner |
Sd/- |
Sd/- |
(Membership Number - 050773) |
Vikram Saraogi |
Gyanendra Singh |
Kolkata, the 17th day of May, 2018 |
Chief Financial Officer |
Company Secretary |
Mar 31, 2016
In respect of the above contingent liabilities, future cash flows are determinable only on receipt of judgments pending at various forums/ authorities, which in the opinion of the Company is not tenable.
1. Pursuant to an agreement dated 8th October, 2002, Tippuk Tea Estate located in Doom Dooma (Assam) was acquired by Warren Tea Limited with effect from 1st October, 2002. The above tea estate has been transferred to the Company under the Scheme of arrangement between the company and Warren Tea Limited. The conclusion of the deed of conveyance for agreement dated 8th October, 2002 is in process.
2. Under the Assam Fixation of Ceiling of Land Holding Act, 1956, undeveloped lands, approximately 1600 (P.Y-1600) hectares of the Company have been vested in the State Government. Necessary adjustments in respect of land compensation will be made in the accounts on settlement of the same.
3. Details of Employee Benefits as required by Accounting Standard -15, "Employee Benefits" are as follows-
The Company operates defined Benefit Schemes like Gratuity, Superannuation, Pension and Additional Retiral Benefit Plans based on current salaries in accordance with the Rules of the Funds/Plans.
In terms of Accounting Policies enumerated in Note no. 1 the following Table sets forth the particulars in respect of Defined Benefit
Plans of the Company for the year ended 31st March, 2016 arising out of actuarial valuations:
A) Funded and Unfunded Plans
Reconciliation of opening and closing balances of the present value of the Defined Benefit Obligation
4. Information in accordance with the requirement of the Accounting Standard -17 on ''Segment Reporting''
a. The Company is mainly engaged in the cultivation, manufacturing and selling of Tea. Accordingly, the Company is a single business segment Company.
b. Geographical Segments of the Company has been identified on the basis of location of customers for generating revenue from operation as follows - (Rs. in Lakhs)
5. Disclosure as required under the micro, small and medium enterprises development act, 2006, to the extent ascertained, and as per notification number GSR 679 (E) dated 4th September, 2015
S. No |
Particulars |
2015-16 |
2014-15 |
a. |
the principal amount and the interest due thereon remaining unpaid to any supplier at the end of each financial year. |
|
|
b. |
the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year. |
|
|
c. |
the amount of interest due and payable for the period of delay in making payment but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006. |
|
|
d. |
the amount of interest accrued and remaining unpaid at the end of each accounting year |
- |
- |
e. |
the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006. |
|
|
6. Warren Steels Private Limited is an associate of the company by virtue of shareholding, however, the same has been held by the company exclusively with a view to its subsequent disposal in the near future and hence the same is not required to be consolidated with the accounts of the Company.
7. Operating Lease Commitments
The Company''s leasing agreements (as lessee) in respect of lease for office accommodation & guest house, which are on periodic renewal basis. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit & Loss amounts to Rs. 160.61 lakhs (P.Y. - Rs. 100.86 lakhs)
8. Foreign Currency Exposure- Hedged
The company uses forward contracts to hedge its risk relating to foreign currency exposures. At the year ended 31st March, 2016, the outstanding forward contracts for firm commitments of future sales are Rs. Nil (P.Y- 184.25 lakhs).
9. Confirmations for the balances shown under long term and short term loans & advances, current liabilities, Trade payables, subsidy & Incentive Receivables and other current assets have been sought from the respective parties. Consequential adjustments shall be done on the receipt of the same. In the opinion of the management, the value of current assets, loans and advances on realization in the ordinary course of business, will not be less than the value at which these are stated in the balance sheet.
10. As per the requirements of Accounting Standard -28 on "Impairment of Assets", the Company has assessed the carrying amount of the assets vis-a-vis their recoverable values and no impairment is envisaged at the balance sheet date.
11. Miscellaneous Expenditure under Note No.26 includes revenue expenditure on research and development Rs. 14.78 lakhs (P.Y- Rs. 14.61 lakhs) incurred towards subscription to Tea Research Association.
12. A CSR committee has been formed by the company as per provisions of Section 135 of the Companies Act, 2013. The areas of CSR activities areas are as prescribed under Schedule VII of the Companies Act, 2013.
Gross amount required to be spent by the company during the year was Rs. 29.08 lakhs (P.Y. - 29.86 lakhs).
13. Comparative financial information (i.e. the amounts and other disclosure for the preceding year presented above, is included as an integral part of the current year''s financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to the figure of current year.
14 Ceased to be the member of the Committee w.e.f. March 31, 2016.
c) Nomination & Remuneration Committee
The Nomination & Remuneration Committee was constituted on October 25, 2013.
15 Resigned from directorship of the Company w.e.f. March 31, 2016.
16 Resigned from directorship of the Company w.e.f. June 30, 2015.
17 Appointed as the Whole time Director of the Company w.e.f July 8, 2015.
The remuneration of the Whole time Directors, includes basic salary, rent free accommodation, allowances, medicals, insurance, contribution to the provident fund, superannuation and gratuity funds and perquisites (including monetary value of taxable perquisites) etc. The appointment of all the Whole time Directors can be terminated by giving notice of such period, by either party, as mentioned in their respective appointment letters.
c) Stakeholders'' Relationship Committee
The ''Stakeholders'' Relationship Committee'' was constituted on December 27, 2013. The said committee was reconstituted on March 31, 2016. The term of reference of the said Committee was also revised on February 12, 2016.
18 Ceased to be the member of the Committee w.e.f March 31, 2016.
19 Ceased to be the member of the Committee w.e.f June 30, 2015.
20. Appointed as the member of the Committee w.e.f July 08, 2015.
Compliance Officer
Ms. Surbhi Shah, Company Secretary of the Company was appointed as the Compliance Officer of the Company w.e.f February 12, 2016.
Mar 31, 2015
1) The above Cash Flow Statement has been prepared under the Indirect
Method as set out in the Accounting Standard - 3 on Cash Flow Statement
2) Previous year figures have been regrouped and rearranged, wherever
considered necessary The accompanying notes are an integral part of the
financial statements
SHARE CAPITAL
c) Rights, preferences and restrictions attached to shares
The Company has only one class of shares being Equity Shares having a
par value of Rs. 10/- each. Each holder of the Equity Share is entitled
to one vote per share. The Company declares and pays dividend in Indian
Rupees. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of Equity
Shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of Equity Shares held by the
shareholders.
d) The Company does not have any Holding or Ultimate Holding Company.
e) No Equity Shares have been reserved for issue under options and
contracts/ commitments for the sale of shares/ disinvestment as at the
Balance Sheet date.
g) No securities convertible into Equity/ Preference shares have been
issued by the Company during the year.
h) No calls are unpaid by any Director or Officer of the Company during
the year.
As at 31st March As at 31st March
Particulars 2015 2014
a.) Contingent Liabilities not
provided for in respect of
i. Claim not acknowledged as debts 6.00 6.00
ii. Sales Tax Demand in dispute
(Under Appeal) 60.06 60.06
b) Commitments 51.19 36.71
Estimated amount of contracts remaining to be executed on Capital
Account and not provided for [net of advance Rs 77.69 (Rs 141.35)]
Note:
In respect of the above contingent liabilities, future cash flows are
determinable only on receipt of judgments pending at various forums/
authorities, which in the opinion of the Company is not tenable.
3. Pursuant to an agreement dated 8th October, 2002, Tippuk Tea Estate
located in Doom Dooma (Assam) was acquired by Warren Tea Limited with
effect from 1st October, 2002. The above tea estate has been
transferred to the Company under the Scheme of arrangement between the
company and Warren Tea Limited. The conclusion of the deed of
conveyance for agreement dated 8thOctober, 2002 is in process.
4. Under the Assam Fixation of Ceiling of Land Holding Act, 1956,
undeveloped lands, approximately 1600 (P.Y-1600) hectares of the
Company have been vested in the State Government. Necessary adjustments
in respect of land compensation will be made in the accounts on
settlement of the same.
5. Information in accordance with the requirement of the Accounting
Standard -17 on 'Segment Reporting'
a. The Company is mainly engaged in the cultivation, manufacturing and
selling of Tea. Accordingly the Company is a single business segment
Company.
6. Details of Employee Benefits as required by Accounting Standard
-15, "Employee Benefits" are as follows-
The Company operates defined Benefit Schemes like Gratuity,
Superannuation, Pension and Additional Retiral Benefit Plans based on
current salaries in accordance with the Rules of the Funds/Plans.
In terms of Accounting Policies enumerated in Note no. 1 the following
Table sets forth the particulars in respect of Defined Benefit
Plans of the Company for the year ended 31st March, 2015 arising out of
actuarial valuations:
C) Other Disclosure : I. Funded Plans
D) The company expects to contribute Rs. 100.00 (100.00) to its Gratuity
fund and Superannuation fund in 2015-16.
E) Plan Assets are being managed by Warren Tea Limited. Due to
non-availability of complete information from the said company post
demerger with the company, with respect to the Plan Assets, the same
has been considered based on the rate of return assumed by the Actuary
and other information as available with the company.
Post Employment Contribution Plan
During the year an aggregate amount of Rs. 525.15 (Previous Year - Rs.
486.96 ) has been recognised as expenditure towards Provident Fund,
defined contribution plan of the Company.
7. Operating Lease Commitments
The Company's leasing agreements (as lessee) in respect of lease for
office accommodation & guest house, which are on periodic renewal
basis. Expenditure incurred on account of rent during the year and
recognized in the Statement of Profit & Loss amounts to Rs. 109.86 lakhs
(P.Y - Rs. 76.86 lakhs)
8. Foreign Currency Exposure- Hedged
The company uses forward contracts to hedge its risk relating to
foreign currency exposures. At the year ended 31st March, 2015, the
outstanding forward contracts for firm commitments of future sales are
Rs. 184.25 lakhs (P.Y- Nil).
9. Certain balances of Trade Receivable, Loans & Advances and Trade
Payable are subject to confirmation and reconciliations, if any.
10. As per the requirements of Accounting Standard -28 on "Impairment
of Assets", the Company has assessed the carrying amount of the assets
vis-a-vis their recoverable values and no impairment is envisaged at
the balance sheet date.
11. Miscellaneous Expenditure under Note No.26 includes revenue
expenditure on research and development Rs. 14.61 lakhs (P.Y- Rs. 11.63
lakhs) incurred towards subscription to Tea Research Association.
12. The company has charged depreciation based on revised remaining
useful life of the assets as per the requirement of Schedule II of the
Companies Act, 2013 effective from 1st April, 2014. Due to this,
depreciation charge for the year ended 31st March, 2015 is lower by Rs.
60.98 lakhs. Further, based on transitional provisions provided in note
no. 7(b) of Schedule II of the Companies Act,2013 read with
notification no. 456 dated 29th August 2014, an amount of Rs. 430.88
Lakhs and deferred tax thereon of Rs. 134.54 lakhs has been charged/
reversed respectively in the statement of profit & loss.
13. A CSR committee has been formed by the company as per provisions of
Section 135 of the Companies Act, 2013. The areas of CSR activities
areas are as prescribed under Schedule VII of the Companies Act, 2013.
Gross amount required to be spent by the company during the year was Rs.
29.86 lacs.
14. Previous year's figures have been regrouped/reclassified wherever
necessary to confirm with the current year's classification /
disclosure..
Mar 31, 2014
1. a) Rights, preferences and restrictions attached to shares
The Company has only one class of shares being Equity Shares having a
par value of Rs 10/- each. Each holder of the Equity Share is entitled
to one vote per share. The Company declares and pays dividend in Indian
Rupees. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of Equity
Shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of Equity Shares held by the
shareholders.
b) The Company does not have any Holding or Ultimate Holding Company.
c) No Equity Shares have been reserved for issue under options and
contracts/ commitments for the sale of shares/ disinvestment as at the
Balance Sheet date.
d) Aggregate no. of shares issued for consideration other than cash
during the period of five years immediately preceeding the reporting
date
e) No securities convertible into Equity/ Preference shares have been
issued by the Company during the year.
f) No calls are unpaid by any Director or Officer of the Company during
the year.
2. Contingent Liabilities & Commitments
( Rs in lakhs)
As at 31st March As at 31st March
Particulars 2014 2013
a) Contingent Liabilities
not provided for in
respect of
i. Claim not acknowledged
as debts 6.00 -
ii. Sales Tax Demand in
dispute (Under Appeal) 60.06 -
b) Commitments
Estimated amount of
contracts remaining to
be executed on Capital 36.71 -
Account and not
provided for
[net of advance Rs
141.35 (Previous
Year nil )]
Note :
In respect of the above contingent liabilities, future cash flows are
determinable only on receipt of judgments pending at various forums/
authorities, which in the opinion of the Company is not tenable.
3. Scheme of Arrangement
a) Pursuant to the Scheme of Arrangement (the Scheme) between James
Warren Tea Limited (formerly James Warren Tea Private Limited)
(hereinafter referred as Company) and Warren Tea Limited (hereinafter
referred as WTL) as approved/consented by the Shareholders of the
respective companies at a meeting held on 20th June 2013 and 13th
September 2013 respectively and subsequently sanctioned by the Hon''ble
High Court at Guwahati on 16th December 2013, the Demerged Undertaking
of WTL (hereinafter referred to as James Warren Tea Division)
comprising of Balijan (H), Deamoolie, Dhoedhaam, Rajah Ali, Thowra,
Tippuk and Zaloni tea estates have been transferred to and vested in
the Company retrospectively with effect from April 01, 2011 (the
appointed date).
b) The certified copy of the Order of Hon''ble High Court at Guwahati
was filed with the Registrar of the Companies, Shillong on 9th January
2014. The financial statements of the Company for the year have been
prepared by giving the effect of the Scheme.
c) The operations of James Warren Tea Division mainly include growing
and manufacturing of tea.
d) The Salient Features of the Scheme are as under :
i. From the appointed date all the assets and liabilities of James
Warren Tea Division have been incorporated in the books of the Company
at their respective books values, as segregated by the management of
WTL, on the basis of the audited accounts of WTL as on the appointed
date.
ii. In terms of scheme, the company has issued 99.58% of its post
scheme share capital base to the shareholders of WTL. Each shareholder
of WTL has received has received 1 (one) equity shares of Rs 10 (Ten)
each fully paid up against 1(One) equity share of Rs. 10 (ten) each
fully paid up held in WTL.
iii. 1,19,50,804 equity shares of Rs. 10 (Ten) each fully paid has been
allotted on 14th February, 2014 in terms of point no. II above which
rank pari passu with the existing shareholders of the Company as per
the Scheme.
iv. In terms of the Scheme, the difference between the amount of
equity share capital issued under the scheme and value of net assets
acquired of James Warren Tea Division after carrying out necessary
amendments and /or adjustments, an amount of Rs. 2,000 lakhs and Rs.
3,821.70 lakhs has been adjusted as Surplus and General Reserve
respectively in the books of the Company as on 1st April, 2013 being
amalgamation in the nature of merger as per the pooling of interest
method.
v. The income accruing and expenses incurred by James Warren Tea
Division from the appointed date till 31st March 2014 have been
properly dealt in these accounts. According to the Scheme, with effect
from the appointed date, WTL has carried out all its business
activities in relation to James Warren Tea Division in trust till the
Scheme becomes effective.
e) Pending completion of the relevant formalities of transfer in/out of
certain assets and liabilities of Tea Division, such assets and
liabilities remain to be transferred in the name of the Company.
Further the charges created in favour of secured lenders are in the
process of modification for the assets transferred. Provision for
statutory liabilities on the transfer of immoveable properties shall be
made on completion of transfer formalities.
f) Pursuant to an agreement dated 8th October, 2002, Tippuk Tea Estate
located in DoomDooma (Assam) was acquired by WTL with effect from 1st
October 2002. The above tea estate has been transferred to the Company
under the Scheme of arrangement. The conclusion of the deed of
conveyance for agreement dated 8th October, 2002 is in process.
4. In view of approval from Registrar of Companies, Shillong, the
name of the Company has been changed to James Warren Tea Limited w.e.f.
19th June 2013.
5. Under the Assam Fixation of Ceiling of Land Holding Act, 1956,
undeveloped lands, approximately 1600 (P.Y-nil) hectares of the Company
have been vested in the State Government. Necessary adjustments in
respect of land compensation will be made in the accounts on settlement
of the same.
6. Information in accordance with the requirement of the Accounting
Standard -17 on ''Segment Reporting''
a. The Company is mainly engaged in the cultivation, manufacturing and
selling of Tea. Accordingly the Company is a single business segment
Company.
7. Operating Lease Commitments
The Company''s leasing agreements (as lessee) in respect of lease for
office accommodation & guest house, which are on yearly renewal basis.
Expenditure incurred on account of rent during the year and recognized
in the Statement of Profit & Loss amounts to Rs. 76.86 lakhs (P.Y -nil)
Note : All the above transactions were done at arm/s length. Figures in
bracket indicate for previous year.
8. Details of Employee Benefits as required by Accounting Standard
-15, "Employee Benefits" are as follows :
The Company operates defined Benefit Schemes like Gratuity,
Superannuation, Pension and Additional Retiral Benefit Plans based on
current salaries in accordance with the Rules of the Funds/Plans.
In terms of Accounting Policies enumerated in Note no. 1 the following
Table sets forth the particulars in respect of Defined Benefit Plans of
the Company for the year ended 31st March, 2014 arising out of
actuarial valuations:
A) The company expects to contribute Rs. 100.00 to its Gratuity fund
and Superannuation fund in 2014-15.
B) In the absence of any employee''s benefit in previous years, figures
are not provided for previous year.
Post Employment Contribution Plan
During the year an aggregate amount of Rs. 486.96 (Previous Year - Rs.
nil) has been recognised as expenditure towards Provident Fund, defined
contribution plan of the Company.
9. Certain balances of Trade Receivable, Loans & Advances and Trade
Payable are subject to confirmation and reconciliations, if any.
10. As per the requirements of Accounting Standard -28 on "Impairment
of Assets", the Company has assessed the carrying amount of the assets
vis-a-vis their recoverable values and no impairment is envisaged at
the balance sheet date.
11. Miscellaneous Expenditure under Note No. 25 includes revenue
expenditure on research and development Rs. 11.63 lakhs (P.Y- nil)
incurred towards subscription to Tea Research Association.
12. Consequent to the effect of the Scheme of Arrangement, the current
year''s figures are not comparable with the previous year''s figures.
Previous year''s figures have been regrouped/reclassified wherever
necessary to conform with the current year''s classification /
disclosure.