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Notes to Accounts of Joonktollee Tea & Industries Ltd.

Mar 31, 2016

1) The Company has only one class of issued shares i.e. Ordinary Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

2) The Company does not have any holding company or ultimate holding company.

3) No Ordinary Shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment as at the Balance Sheet date.

4) No Ordinary Shares have been bought back by the Company during the period of 5 years preceding the date as at which the Balance Sheet is prepared.

5) 30,46,213 (Previous year 30,46,213) Ordinary shares of Rs. 10/-each fully paid up have been issued pursuant to scheme of amalgamation and arrangement for consideration other than cash in immediately preceding five years.

6) No securities convertible into Ordinary/Preference shares have been issued by the Company during the year.

7) No calls are unpaid by any Director or Officer of the Company during the year.

Security and Repayment Terms :

8) Term Loan from a Bank amounting to Rs. 3,33,33,335/- together with working capital facility from the same Bank is secured by equitable mortgage of Jamirah and Pullikanam Tea Estate and also by way of hypothecation of current assets of Kerala Division. Loan is repayable in remaining 16 quarterly installments of Rs. 20,83,333/- .

9) Term Loan from a Bank amounting to Rs. 20,00,00,000/- together with working capital facility from the same Bank is secured / to be secured by exclusive charge on the title deeds of Goomankhan Tea Estate and also by way of hypothecation of Plant and Machinery of Goomankhan Tea Estate. Loan is repayable in 20 quarterly installments of Rs. 1,00,00,000/- after a moratorium of one year.

10) Term Loan from a Bank amounting to Rs. 7,50,00,000/- together with working capital facility from the same Bank is secured by exclusive charge on the title deeds of Nilmoni Tea Estate, current assets of Karnataka division both present and future . Out of the above loan, loan of Rs. 1,66,66,667/- is payable in remaining 4 quarterly installments and loan of Rs. 5,83,33,333/- is payable in remaining 7 quarterly installments.

Security and Charge :

11) Working Capital Loan of Rs. 14,51,93,950/- loan is secured by pledge of certain Fixed deposits.

12) Working Capital Loan of Rs. 7,00,00,000/- is secured by way of exclusive charge on the title deeds of Nilmoni Tea Estate and the Current Assets of the Karnataka Division, both present and future.

13) Working Capital Loan from ICICI Bank amounting to Rs. 24,60,210/- is secured by way of exclusive charge on the title deeds and entire movable fixed assets of Joonktollee Tea Estate & Factory, and hypothecation of entire stock, book debts and other current assets of Joonktollee Tea Estate, Nilmoni Tea Estate & Shreemoni Tea Factory.

14) Working Capital Loan from HDFC Bank is secured by equitable mortgage of Jamirah Tea Estate and Pullikanam Tea Estate and also by way of hypothecation of current assets of Kerala Division. Balance at the reporting date since being positive, is disclosed under Cash & Bank Balances (Ref. Note No. 2.14 ) instead of Short Term Borrowings.

In respect of above matters , future cash outflows in respect of contingent liabilities are determinable only on receipt of judgments pending at various forums/ authorities .

15. The Company''s entitlement of Rs. 17,560,442/- (Previous Year Rs. 17,560,442/-) under section 80-IC of the Income Tax Act, 1961 in respect of income generated from facilities situated in North East states is pending before Hon''ble High Court since assessment year 2004-05 to 2013-14. The management of the Company does not foresee any additional liability of the income tax at this point.

16. Estimated amount of contract remaining to be executed on capital account and not provided for Rs. 2,423,901/-(Previous Year Rs. 3,684,896/-) (Net of Advances).

17. Transfer of certain assets/liabilities from/to transferor companies/demerged units under the scheme of arrangement/amalgamations carried out in earlier years are still in the process of completion.

18. As reported in earlier years a special leave petition filed by the Company has been admitted before the Hon''ble Supreme Court in the matter of transfer of rights of legal proceedings of "Sampaji Rubber Estate", against the order passed by the Division Bench of Hon''ble High Court at Madras. The above rights was transferred to the Company under a Scheme in earlier years . The matter is subjudice and value of above rubber estate in the books of the company is Rs. Nil (Previous Year Rs. Nil )

19. The Pullikanam Tea Estate of the company had taken up in earlier years the task of replantation of substantial part of its tea estate which was abandoned in earlier years and the then existing tea plants could not be revived. As per the consistent accounting policy followed by the said estate, the replantation expenditure incurred on above specified area has been capitalized as the benefit of the same shall accrue over a period of time. A sum of Rs. 67,57,558/- (Previous Year Rs. 1,21,27,640/- ) has been incurred during the year on the above account.

20. The Company had entered into a share purchase agreement for acquiring 100% Equity Shares of Keshava Plantations Private Limited (KPPL). KPPL is having Azizbagh Tea Estate along with Tea Factory in Assam with a capacity of 5,50,000 kgs of made tea per annum . A sum of Rs. 2,75,00,000/- was paid during the year as an advance towards the purchase of Shares. KPPL became wholly owned subsidiary of the company w.e.f. 05th April,2016.

21. The Government of Kerala has proposed to revise the minimum wages of the workers of Rubber & Tea estates of Kerala division of the company w.e.f. 01st July 2015. The proposal to revise the minimum wages could not be finalized pending settlement between the members of the plantation association and trade unions. Had the proposal been finalized, the impact of the proposed increase in the wages w.e.f. 1st July,2015 to 31st March,2016 would have been Rs. 9,445,355/- . The proposed increase in the wages has not been considered in the financial statements for the aforesaid reasons. In lieu of the proposed increase in the wages, a sum of Rs. 3,320,485/- was paid to the workers as recoverable advance and the same shall be adjusted on completion of the settlement process.

22. Trade Receivables, Loans & Advances and Deposits include certain overdue and unconfirmed balances. However, in the opinion of the management, these current assets would, in the ordinary course of business, realize the value stated in the accounts.

23. Miscellaneous Expenditure under Note No.2.22 includes revenue expenditure on research and development Rs. 4,42,783/- (Previous Year Rs. 4,14,400/-) incurred towards subscription to Tea Research Association.

24. There are no outstanding dues to suppliers/ service providers covered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED''). The disclosures as required under the said Act are as under :

25. The amount of borrowing cost capitalized during the year is Rs. Nil.

26. The exposure of the Company in foreign currency at the end of the year is Rs. Nil (Previous year Rs. Nil).

27. The Company has considered business segments as the primary segment for disclosure. The business segments of company are Tea, Coffee and Rubber which have been identified taking into account the organizational structure as well as the differing risks and returns of these segments. The segment wise revenue, assets and liabilities relate to the respective amounts directly identifiable with each other of the segments. There is no inter-segment revenue. The company does not have any secondary/ geographical segments :

28. As per the requirements of Accounting Standard - 28 on "Impairment of Assets", the Company has assessed the carrying amount of assets vis a vis their recoverable values and no impairment is envisaged at the balance sheet date.

29. Employee Benefits (Revised Accounting Standard 15)

30) Defined Contribution Plan

The Company makes contribution towards provident fund and superannuation fund to a defined contribution retirement plan for qualifying employees. The Provident fund plan is operated by statutory authorities. Under the said scheme the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

The Company operates a superannuation scheme for certain employees and contributions by the Company under the scheme, is charged against revenue every year.

During the year the company has contributed Rs. 33,796,235/- (Previous Year Rs. 31,688,741/-) for Provident Fund and Pension Fund and Rs. 3,633,775/-(Previous Year Rs. 4,175,955/-) for Superannuation Fund. The contributions payable to these plans by the Company are at the rates specified in the rules of the scheme.

31) Defined Benefit Plans

32) The Company makes annual contribution of gratuity to gratuity funds duly constituted and administered by independent trustees and funded with LIC/ Birla Sun Life Insurance Company Limited/ independent trust for the qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

33) The employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 120 days). The benefit obligation related to leave liability are funded with Life Insurance Corporation of India.

34) The present value of defined obligation and related current cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

(35) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(36) The Gratuity Scheme is invested in a Group Gratuity-Cum-Life Assurance Cum Accumulation Policy offered by Life Insurance Corporation of India and the Independent Administered Gratuity Fund. The information on the allocations of fund managed by LIC / Group Unit Linked Gratuity Plan by Birla Sun Life Insurance Company Limited into major assets classes and expected return on each major classes are not readily available. In case of company''s administered trust, 100% allocation of fund has been made towards government securities. The expected rate of return on plan assets is based on the assumed rate of return provided by Company''s actuary.

(37) The Company expects to contribute Rs. 132.00 lacs (Previous Year Rs. 40.00 lacs) to its gratuity fund in 2016-17.

Q. Related party disclosures as required by Accounting Standard - 18 "Related Party Disclosures" are given below :

Relationships:

(38) Subsidiaries of the Company :

Gloster Real Estate Private Limited. (GREPL)

Cowcoody Builders Private Limited (CBPL)

Pranav Infradev Company Private Limited (PICPL)

(39) Associate of the Company :

The Cochin Malabar Estates & Industries Limited (TCMEIL)

(40) Enterprises/Individual having control over the Company :

41) Gopal Das Bangur (upto 08.06.2015)

42) Pushpa Devi Bangur

43) Hemant Bangur

44) Vinita Bangur

45) Kettlewell Bullen & Company Limited (KBCL)

46) The Oriental Company Limited (TOCL)

47) Madhav Trading Corporation Limited (MTCL)

48) The Cambay Investment Corporation Limited (TCICL)

49) Credwyn Holdings (I) Private Limited (CHPL)

(50) Other Companies over which the Key Management Personnel are able to exercise a significant influence and with whom transactions took place during the year:

51) Gloster Ltd. (GL)

(52) Key Management Personnel :

53) Mr. Hemant Bangur - Executive Vice-Chairman (up to 12.08.2015)

54) Mr. K. C. Mohta - Executive Director & C.E.O.


Mar 31, 2015

1.1 SHARE CAPITAL

b) The Company has only one class of issued shares i.e. Ordinary Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

c) The Company does not have any holding company or ultimate holding company.

f) No Ordinary Shares have been bought back by the Company during the period of 5 years preceding the date as at which the Balance Sheet is prepared.

g) 30,46,213 (Previous year 30,46,213) Ordinary shares of Rs. 10/-each fully paid up have been issued pursuant to scheme of amalgamation and arrangement for consideration other than cash in immediately preceding five years.

h) No securities convertible into Ordinary/Preference shares have been issued by the Company during the year.

i) No calls are unpaid by any Director or Officer of the Company during the year.

i) Term Loan from a Bank amounting to Rs. 4,16,66,667/- together with working capital facility from the same Bank is secured by equitable mortgage of Jamirah and Pullikanam Tea Estate and also by way of hypothecation of current assets of Kerala Division. Loan is repayable in remaining 20 quarterly installments of Rs. 20,83,333/- .

ii) Term Loan from a Bank amounting to Rs. 12,50,00,000/- together with working capital facility from the same Bank is secured by exclusive charge on the title deeds of Nilmoni Tea Estate, current assets of Karnataka division both present and future. Out of the above loan, loan of Rs. 3,33,33,333/- is payable in remaining 8 quarterly installments and loan of Rs. 9,16,66,667/- is payable in remaining 11 quarterly installments.

i) Working Capital Loan of Rs. 11,84,01,389/- is secured by pledge of certain Fixed deposits.

ii) Working Capital Loan of Rs. 7,00,00,000/- is secured by way of exclusive charge on the title deeds of Nilmoni Tea Estate and the Current Assets of the Karnataka Division, both present and future.

iii) Working Capital Loan of Rs. 6,69,11,460/- is secured by equitable mortgage of Jamirah Tea Estate and Pullikanam Tea Estate and also by way of hypothecation of current assets of Kerala Division.

iv) Working Capital Loan from ICICI Bank is secured by way of exclusive charge on the title deeds and entire movable fixed assets of Joonktollee Tea Estate & Factory, and hypothecation of entire stock, book debts and other current assets of Joonktollee Tea Estate, Nilmoni Tea Estate & Shreemoni Tea Factory. Balance at the reporting date since being positive, is disclosed under Cash & Bank Balances (Ref.Note No.2.14 ) instead of Short Term Borrowings.

2014-15 2013-14

A. Contingent Liability not provided for -

Claims against the Company not acknowledged as debts :

i) Income Tax under appeal * 15,599,345 20,354,935

* Rs. 9,239,139/- (Previous Year - Rs. 74,044/-) paid / adjusted.

ii) Sales Tax under appeal (Total amount paid under protest) 1,783,041 1,783,041

iii) Claims of Creditors & workers 2,039,725 2,039,725

iv) Seigniorage Charges (KERALA Forest Dept.) 17,702,033 17,702,033 (Total amount paid under protest)

v) Provident Fund Damages 6,951,579 6,241,601

vi) Lease Rent ** 7,486,535 6,086,645

**The Government of Kerala has increased the Lease Rent payable in respect of Chemoni and Pudukad Estates from Rs. 2/- per Acre to Rs. 1300/- per Hectare with effect from 25th November, 2009. The Company filed Writ Petition before the Hon'ble Court of Kerala challenging the increase and the case is subjudice. The Company has paid Rs. 60,86,645/- ( Previous Year Rs. 60,86,645/- ) on account of the increased Lease rental under protest.

In respect of above matters, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgements pending at various forums / authorities.

B. The Company's entitlement of Rs. 17,560,442/- (Previous Year Rs. 17,560,442/-) under section 80-IC of the Income Tax Act, 1961 in respect of income generated from facilities situated in North East states is pending before Hon'ble High Court since assessment year 2004-05 to 2014-15. The management of the Company does not foresee any additional liability of the income tax at this point.

C. Estimated amount of contract remaining to be executed on capital account and not provided for Rs. 3,684,896/- (Previous Year Rs. 24,333,147/-) (Net of Advances).

D. Transfer of certain assets/liabilities from/to transferor companies/demerged units under the scheme of arrangement/amalgamations carried out in earlier years are still in the process of completion.

E. As reported in earlier years a special leave petition filed by the Company has been admitted before the Hon'ble Supreme Court in the matter of transfer of rights of legal proceedings of "Sampaji Rubber Estate", against the order passed by the Division Bench of Hon'ble High Court at Madras. The above rights was transferred to the Company under a Scheme in an earlier year. The matter is subjudice and value of above rubber estate in the books of the company is Rs. Nil (Previous Year Rs. Nil )

F. The Pullikanam Tea Estate of the company had taken up in earlier years the task of replantation of substantial part of its tea estate which was abandoned in earlier years and the then existing tea plants could not be revived. As per the consistent accounting policy followed by the said estate, the replantation expenditure incurred on above specified area has been capitalized as the benefit of the same shall accrue over a period of time. A sum of Rs. 1,21,27,640/- (Previous Year Rs. 1,73,18,658/- ) has been incurred during the year on the above account.

G. Proceeds from JTIL Share Trust represents money remitted by the trust during the year to the Company in lieu of Dividend Rs. 3,21,546/- (Previous Year Rs. 1,117,655/-) and profit on sale of shares held by the Trust Rs. 2,18,69,399/- (Previous Year Rs. 7,312,332/-).

H. Trade Receivables, Loans & Advances and Deposits include certain overdue and unconfirmed balances. However, in the opinion of the management, these current assets would, in the ordinary course of business, realize the value stated in the accounts.

I. Miscellaneous Expenditure under Note No. 2.22 includes revenue expenditure on research and development Rs. 414,400/- (Previous Year Rs. 353,500/-) incurred towards subscription to Tea Research Association.

J. There are no outstanding dues to suppliers / service providers covered under Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED'). The disclosures as required under the said Act are as under :-

The above information has been determined to the extent such parties identified on the basis of information available with the Company.

K. The amount of borrowing cost capitalized during the year is Rs. Nil.

L. The exposure of the Company in foreign currency at the end of the year is Rs. Nil (Previous year Rs. Nil).

M. The Company has considered business segments as the primary segment for disclosure. The business segments of company are Tea, Coffee and Rubber which have been identified taking into account the organizational structure as well as the differing risks and returns of these segments. The segment wise revenue, assets and liabilities relate to the respective amounts directly identifiable with each other of the segments. There is no inter-segment revenue.

N. As per the requirements of Accounting Standard - 28 on "Impairment of Assets", the Company has assessed the carrying amount of assets vis a vis their recoverable values and no impairment is envisaged at the balance sheet date.

O. Employee Benefits (Revised Accounting Standard 15) a) Defined Contribution Plan

The Company makes contribution towards provident fund and superannuation fund to a defined contribution retirement plan for qualifying employees. The Provident fund plan is operated by statutory authorities. Under the said scheme the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

The Company operates a superannuation scheme for certain employees and contributions by the Company under the scheme, is charged against revenue every year.

During the year the company has contributed Rs. 31,688,741/- (Previous Year Rs. 29,865,870/-) for Provident Fund and Pension Fund and Rs. 4,175,955/- (Previous Year Rs. 3,705,192/-) for Superannuation Fund. The contributions payable to these plans by the Company are at the rates specified in the rules of the scheme.

b) Defined Benefit Plans

i) The Company makes annual contribution of gratuity to gratuity funds duly constituted and administered by independent trustees and funded with LIC/independent trust for the qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

ii) The employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 120 days). The benefit obligation related to leave liability are funded with Life Insurance Corporation of India.

iii) The present value of defined obligation and related current cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

(a) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(b) The Gratuity Scheme is invested in a Group Gratuity - Cum- Life Assurance Cum Accumulation Policy offered by Life Insurance Corporation of India and the Independent Administered Gratuity Fund. The information on the allocations of fund managed by LIC into major assets classes and expected return on each major classes are not readily available. In case of company's administered trust, 100% allocation of fund has been made towards government securities. The expected rate of return on plan assets is based on the assumed rate of return provided by Company's actuary.

(c) The Company expects to contribute Rs. 40.00 lacs (Previous Year Rs. 46.38 lacs) to its gratuity fund in 2015-16.

(d) The table below illustrates experience adjustment disclosure as per Para 120 (n) (ii) of Accounting Standard 15 - Employee Benefits.

P. Related party disclosures as required by Accounting Standard - 18 "Related Party Disclosures" are given below :

Relationships:

(a) Subsidiaries of the Company :

Gloster Real Estate Private Limited. (GREPL)

Cowcoody Builders Private Limited (CBPL)

Pranav Infradev Company Private Limited (PICPL)

(b) Associate of the Company :

The Cochin Malabar Estates & Industries Limited (TCMEIL)

(c) Enterprises/Individual having control over the Company :

i) Gopal Das Bangur

ii) Pushpa Devi Bangur

iii) Hemant Bangur

iv) Vinita Bangur

v) Kettlewell Bullen & Company Limited (KBCL)

vi) The Oriental Company Limited (TOCL)

vii) Madhav Trading Corporation Limited (MTCL)

viii) The Cambay Investment Corporation Limited (TCICL)

ix) Credwyn Holdings (I) Private Limited (CHPL)

x) Wind Power Vinimay Private Limited (WPVPL)

(d) Other Companies over which the Key Management Personnel are able to exercise a significant influence and with whom transactions took place during the year:

i) Gloster Ltd. (GL)

(e) Key Management Personnel :

i) Mr. Hemant Bangur - Executive Vice-Chairman

ii) Mr. K. C. Mohta - Executive Director & C.E.O.

T. Previous year's figures have been regrouped / rearranged wherever necessary to make them comparable with that of current year.


Mar 31, 2014

A) The Company has only one class of issued shares i.e. Ordinary Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

b) The Company does not have any holding company or ultimate holding company.

c) No Ordinary Shares have been reserved for issue under options and contracts/commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

e) No Ordinary Shares have been bought back by the Company during the period of 5 years preceding the date as at which the Balance Sheet is prepared.

f) 30,46,213 (Previous year 30,46,213) Ordinary shares of Rs. 10/-each fully paid up have been issued pursuant to scheme of amalgamation and arrangement for consideration other than cash in immediately preceding five years.

g) No securities convertible into Ordinary/Preference shares have been issued by the Company during the year.

Security and Repayment Terms :

i) Term Loan from a Bank amounting to Rs. 8,54,16,669/- together with working capital facility from the same Bank is secured by equitable mortgage of Jamirah Tea Estate and Pullikanam Tea Estate and also by way of hypothecation of current assets of Kerala Division. Out of the above Rs. 3,54,16,669/- has been prepaid during April, 2014 and balance loan is repayable in remaining 24 quarterly installments of Rs. 20,83,333/-.

ii) Term Loan from a Bank amounting to Rs. 5,35,50,000/- is secured by hypothecation of immovable fixed assets of Shreemoni Factory. The loan has been repaid fully in April, 2014.

iii) Term Loan from a Bank amounting to Rs. 15,00,00,000/- together with working capital facility from the same Bank is secured by exclusive charge on the title deeds of Nilmoni Tea Estate, current assets of Karnataka division both present and future. Out of the above loan, loan of Rs. 5,00,00,000/- is payable in remaining 12 quarterly installments starting June, 2014 and loan of Rs. 10,00,00,000/- is payable in 12 quarterly installments starting March, 2015.

Security and Charge :

i) Working Capital Loan of Rs. 13,223/- is secured by way of hypothecation of entire movable Fixed Assets and Current Assets of Joonktollee Tea Estate and Factory and Current Assets of Nilmoni Tea Estate.

ii) Working Capital Loan of Rs. 9,92,75,961/- loan is secured by pledge of certain Fixed deposit.

iii) Working Capital Loan of Rs. 7,00,00,000/- is secured by way of exclusive charge on the title deeds of Nilmoni Tea Estate and the Current Assets of the Karnataka Division both present and future.

iv) Working Capital Loan of Rs. 2,22,434/- is secured by equitable mortgage of Jamirah Tea Estate and Pullikanam Tea Estate and also by way of hypothecation of current assets of Kerala Division.

(Amount in Rs.)

As at As at 31st March, 31st March, 2014 2013

A. Contingent Liability not provided for -

Claims against the Company not acknowledged as debts :

i) Income Tax under appeal * # * Rs. 74,044/- (Previous Year - 20,354,935 17,276,245 Rs. 74,044/-) paid under protest ii) Sales Tax under appeal (Total amount paid under protest) 1,783,041 1,783,041

iii) Claims of Creditors & workers 2,039,725 2,039,725

iv) Seigniorage Charges (KERALA Forest Dept.) 17,702,033 17,702,033 (Total amount paid under protest)

v) Provident Fund Damages 6,241,601 6,241,601

vi) Lease Rent ** 6,086,645 4,686,755

# The Company''s entitlement of Rs. 17,560,442/- (Previous Year Rs. 17,560,442/-) under Section 80-IC of the Income Tax Act, 1961 in respect of income generated from facilities situated in North East states is pending before Hon''ble High Court since assessment year 2004-05 to 2014-15. The management of the Company does not foresee any additional liability of the income tax at this point.

**The Government of Kerala has increased the Lease Rent payable in respect of Chemoni and Pudukad Estates from Rs. 2/- per Acre to Rs. 1300/- per Hectare with effect from 25th November, 2009. The Company filed Writ Petition before the Hon''ble Court of Kerala challenging the increase and the case is subjudice. The Company has paid the increased Lease rental under protest.

B. Estimated amount of contract remaining to be executed on capital account and not provided for Rs. 24,333,147/- (31.03.2013 - Rs. 1,084,686/-) (Net of Advances).

C. Transfer of certain assets/liabilities from/to transferor companies/demerged units under the scheme of arrangement/ amalgamations carried out in earlier years are still in the process of completion.

D. As reported in previous year the Company had filed a special leave petition before the Hon''ble Supreme Court in the matter of transfer of rights of legal proceedings of "Sampaji Rubber Estate", against the order passed by the Division Bench of Hon''ble High Court at Madras. The above rights was transferred to the Company under a Scheme in previous year. The matter is subjudice and value of above rubber estate in the books of the company is Rs. Nil.

E. The Pullikanam Tea Estate of the company had taken up in earlier year the task of replantation of substantial part of its tea estate which was abandoned in earlier years and the then existing tea plants could not be revived. As per the consistent accounting policy followed by the Cochin plantation division in earlier years, the replantation expenditure incurred above specified areas has been capitalized during the year as the benefit of the same shall accrue over a very long period of time. A sum of Rs. 17,318,658/- has been incurred during the year on the above account.

F. Proceeds from JTIL Share Trust represents money remitted by the trust during the year to the Company in lieu of Dividend Rs. 1,117,655/- and profit on sale of shares held by the Trust Rs. 7,312,332/-.

G. In view of withdrawal of its nominee directors from the board controlled subsidiary "The Cochin Malabar Estates & Industries Ltd. (CMEIL) has ceased to be a subsidiary of the Company during the year. Interest Income on Inter Corporate Deposit in Note No. 2.17 includes Rs. 112,141,212/- towards interest income from 1st October, 2008 till date of payment of secured loan obtained by CMEIL in earlier years and recognized during the year on triggering of the parameters prescribed in the revival agreement.

H. Trade Receivables, Loans & Advances and Deposits include certain overdue and unconfirmed balances. However, in the opinion of the management, these current assets would, in the ordinary course of business, realize the value stated in the accounts.

I. Miscellaneous Expenditure under Note No.2.22 includes revenue expenditure on research and development Rs. 353,500/- (Previous Year Rs. 295,268/-) incurred towards subscription to Tea Research Association.

K. The amount of borrowing cost capitalized during the year is Rs. Nil.

L. The exposure of the Company in foreign currency at the end of the year is Rs. Nil (Previous year Rs. Nil).

N. As per the requirements of Accounting Standard - 28 on "Impairment of Assets", the Company has assessed the carrying amount of assets vis a vis their recoverable values and no impairment is envisaged at the balance sheet date.

O. Employee Benefits (Revised Accounting Standard 15)

a) Defined Contribution Plan

The Company makes contribution towards provident fund and superannuation fund to a defined contribution retirement plan for qualifying employees. The Provident fund plan is operated by duly constituted and approved independents trustees/governments. Under the said scheme the Company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

The Company operates a superannuation scheme for certain employees and contributions by the Company under the scheme, is charged against revenue every year.

During the year the Company has contributed Rs. 29,865,870/- (Previous Year Rs. 22,028,286/-) for Provident Fund and Pension Fund and Rs. 3,705,192/- (Previous Year Rs. 3,197,280/-) for Superannuation Fund. The contributions payable to these plans by the Company are at the rates specified in the rules of the scheme.

b) Defined Benefit Plans

i) The Company makes annual contribution of gratuity to gratuity funds duly constituted and administered by independent trustees and funded with LIC/independent trust for the qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

ii) The employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 120 days). The benefit obligation related to leave liability are funded with Life Insurance Corporation of India.

iii) The present value of defined obligation and related current cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

P. Related party disclosures as required by Accounting Standard - 18 "Related Party Disclosures" are given below : Relationships :

(a) Subsidiaries of the Company :

Gloster Real Estate Private Limited. (GREPL)

Cowcoody Builders Private Limited (CBPL)

Pranav Infradev Company Private Limited (PICPL)

The Cochin Malabar Estates & Industries Limited (CMEI) (upto 07.10.2013)

(b) Enterprises/Individual having control over the Company :

i) Gopal Das Bangur

ii) Pushpa Devi Bangur

iii) Hemant Bangur

iv) Vinita Bangur

v) Kettlewell Bullen & Company Limited (KBCL)

vi) The Oriental Company Limited (TOCL)

vii) Madhav Trading Corporation Limited (MTCL)

viii) The Cambay Investment Corporation Limited (TCICL)

ix) Credwyn Holdings (I) Private Limited (CHPL)

x) Wind Power Vinimay Private Limited (WPVPL)

(c) Other Companies over which the Key Management Personnel are able to exercise a significant influence:

i) Gloster Ltd. (GL)

ii) PDGD Investments & Trading Private Limited (PDGD)

iii) Kherapati Vanijya Limited (KVL)

(d) Key Management Personnel :

i) Mr. Hemant Bangur - Executive Vice-Chairman

ii) Mr. K. C. Mohta - Executive Director & C.E.O.


Mar 31, 2013

A. Contingent Liability not provided for -

Claims against the Company not acknowledged as debts : (Amount in Rs.)

2011-2012

i) Income Tax under appeal* 17,276,245 12,865,495

* Rs. 74,044/- (Previous Year - Rs. 74,044/-) paid under protest.

ii) Sales Tax under appeal (Total amount paid under protest) 1,783,041 1,783,04

iii) Claims of Creditors & workers 2,039,725

iv) Seigniorage Charges (KERALA Forest Dept.) 17,702,033

(Total amount paid under protest)

v) Provident Fund Damages 6,241,601

vi) Lease Rent** 4,686,755

-The Government of Kerala has increased the Lease Rent payable in respect of Chemoni and Pudukad Estates from Rs. 2/- per Acre to Rs. 1,350/- per Hectare with effect from 25th November, 2009. The Company filed Writ Petition before the Hon''ble Court of Kerala challenging the increase and the case is subjudice. The Company has paid the increased Lease rental under protest.

B. Estimated amount of contract remaining to be executed on capital account and not provided for Rs. 1,084,68&/- (31.03.2012 -Rs. 263,234/-) (Net of Advances).

C. Pursuant to the Scheme of Arrangement (the Scheme) between "Joonktollee Tea and Industries Limited" (herein after referred as Company) and "The Cochin Malabar Estates & Industries Limited" (herein after referred as CMEIL) as approved by Shareholders of the respective Companies on 5th April, 2012 and sanctioned by the Hon''ble High Court at Calcutta on 3rd December, 2012 under the provisions of The Companies Act, 1956, the Cochin Plantation Division of CMEIL (herein after referred as CPD) been demerged from CMEIL and merged with the Company w.e.f. 01.04.2011 (the appointed date)

The Certified copy of the order of Hon''ble High Court at Calcutta was filed with the Registrar of the Companies, West Bengal on 15th January, 2013. The accounts of the Company for the year have been prepared by giving the effect of the scheme. According to the scheme, with effect from the appointed date, CMEIL have carried out CPD related business activities in trust till the scheme becomes effective.

The Salient Features of the scheme are as under:

I. CMEIL is a subsidiary of the Company and engaged mainly in the business of cultivation & manufacture of Rubber and Tea. The CPD of CMEIL is consisting of Chemoni, Pudukad & Eichipara Rubber Estate & Factory, Sampaji Rubber Estate (under legal proceedings) and Pullikanam Tea Estate & Factory. From appointed date all the assets and liabilities of CPD have been incorporated in the books of the Company at their respective books values, as segregated by the management, on the basis of the audited accounts of CMEIL.

II. In terms of the Scheme, the Company had issued 1 (one) ordinary share of Rs. 10/- (ten) each fully paid up, ranking pari passu, for 2 (two) equity shares of Rs. 10/- (ten) each fully paid up held by the shareholders in CMEIL.

III. In respect of the equity shares held by the Company in CMEIL, the shares which are required to be issued by the Company in terms of II supra, has been allotted to the Board of the Trustees of "JTIL Share Trust" to have and to hold such shares in trust exclusively for the benefit of the Company and deal with same as they deem fit. For the purpose of ascertaining acquisition cost of shares held in trust provisions of Income Tax Act, 1961 has been applied. Being negative net worth of CMEIL, no cost has been allocated to the newly issued shares held in trust.

IV. In terms of Accounting Standard 14 "Accounting for Amalgamation" and based on Expert Advisory Committee opinion of ICAI, the difference between the purchase consideration and value of net assets acquired of CPD after carrying out necessary amendments and/or adjustments, an amount of Rs. 69,839,106/- has been treated as Share Premium in the nature of capital reserve being amalgamation in the nature of Merger. As per the scheme the Company has issued 21.39% of its post amalgamated equity base to the shareholders of CMEIL.

V. In view of the scheme, the Company has issued and allotted 885,954 ordinary share of Rs. 10/- each and these shares shall be entitled to a dividend @ Rs. 2.50 each per share as approved by the Board of directors at their meeting dated 28th January, 2013.

VI. As per the scheme a sum of Rs. 2,214,885/- and Rs. 143,724/- respectively has been provided as proposed dividend and corporate dividend tax respectively for the year 2011-12 for the shares issued in lieu of scheme.

VII. In the above financial statement, impact has been given for all the transactions of CPD during the period from 01.04.2012 to 31.03.2013. The net accounting impact for all the transactions of CPD during the period from 01.04.2011 to 31.03.2012 has been carried as on 01.04.2012. In view of the above a sum of Rs. 60,805,938/- (after impact of current tax of Rs. 2,000,000/- and deferred tax of Rs. 966,600/-) has been adjusted with the balance of surplus account as on 01.04.2012.

VIII. Pending completion of the relevant formalities of transfer in/out of certain assets and liabilities of CPD, such assets and liabilities remain to be transferred in the name of the Company.

IX. Transfer of certain assets/liabilities from/to transferor companies/demerged units under the scheme of arrangement/ amalgamations carried out in earlier years are still in the process of completion.

D. During the year the Company has filed a special leave petition before the Hon''ble Supreme Court in the matter of transfer of rights of legal proceedings of "Sampaji Rubber Estate", an erstwhile property of The Cochin Malabar Estates and Industries Ltd., against the order passed by the Division Bench of Hon''ble High Court at Madras. The above rights has been transferred to the Company under the Scheme as above. The matter is subjudice and value of above rubber estate in the books of the company isRs. Nil.

E. The Pullikanam Tea Estate of the Company (previously part of Cochin Plantation Division) had taken up in earlier year the task of replantation of substantial part its tea estate which was abandoned in earlier years and the then existing tea plants could not be revived. As per the consistent accounting policy followed by the Cochin Plantation Division in earlier years, the replantation expenditure incurred above specified areas has been capitalized during the year as the benefit of the same shall accrue over a very long period of time. A sum of Rs. 18,444,751/- has been incurred during the year on the above account.

F. During the year the Company has acquired a tea factory "Shreemoni Tea Factory "having a tea manufacturing capacity of 12,00,000 Kgs. The production in the above factory was started on 1st April, 2013. The title deeds of the immoveable properties to above factory is in the process of transfer in the name of the Company.

G. Trade Receivables, Loans & Advances and Deposits include certain overdue and unconfirmed bal ances. However, in the opinion of the management, these current assets would, in the ordinary course of business, realize the value stated in the accounts.

H. Miscellaneous Expenditure under Note No. 2.22 includes revenue expenditure on research and development Rs. 295,268/- (Previous Year Rs. 361,511/-) incurred towards subscription to Tea Research Association.

I. There are no outstanding dues to suppliers/service providers covered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED''). The disclosures as required under the said Act are as under:-

J. As per the requirements of Accounting Standard - 28 on "Impairment of Assets", the Company has assessed the carrying amount of assets vis a vis their recoverable values and no impairment is envisaged at the balance sheet date.

K. Employee Benefits (Revised Accounting Standard 15)

a) Defined Contribution Plan:

The Company makes contribution towards provident fund and superannuation fund to a defined contribution retirement plan for qualifying employees. The Provident fund plan is operated by duly constituted and approved independents trustees /governments. Under the said scheme the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

The Company operates a superannuation scheme for certain employees and contributions by the Company under the scheme, is charged against revenue every year.

During the year the company has contributed Rs. 22,028,286/- (Previous Year Rs. 13,084,772/-) for Provident Fund and Pension Fund and Rs. 3,197,280/- (Previous Year Rs. 1,703,156/-) for Superannuation Fund. The contributions payable to these plans by the Company are at the rates specified in the rules of the scheme.

b) Defined Benefit Plans:

i) The Company makes annual contribution of gratuity to gratuity funds duly constituted and administered by independent trustees and funded with LIC/independent trust for the qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

ii) The employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 120 days). The benefit obligation related to leave liability are funded with Life Insurance Corporation of India.

iii) The present value of defined obligation and related current cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.


Mar 31, 2010

1. Contingent Liability not provided for -

Claims against the Company not acknowledged as debts: (Amount in Rs.)

2009-10 2008-09

i) Consent fee under Water (Prevention & Control of Pollution) Act, 1974 and Air (Prevention & Control Board of Pollution) Act,1981 - 312,000

ii) Income Tax under appeal

A.Y. 2003-04* 74,044 74,044

A.Y. 2006-07 1,754,026 1,754,026

A.Y. 2007-08 680,965 -

*Rs. 74,044 paid under protest

iii) Sales Tax under appeal

P.Y. 2003-04 369,000 -

2. Estimated amount of contract remaining to be executed on Capital Account and not provided for Rs. 6,435,309/- (31.03.2009- Rs. 551,308/-) (Net of Advances).

3. "Debts of a subsidiary acquired" of Rs. 524.27 lacs in Schedule 9 represents debts of The Cochin Malabar Estates & Industries Limited (CMEI) acquired in previous year. As reported last year, the Company has entered into an revival agreement with The Cochin Malabar Estates & Industries Limited which interalia provides the Companys right to recompense the benefits of debt acquisition and prescribes certain parameters for interest accrual on such debt. Considering the revival status of The Cochin Malabar Estates & Industries Limited and debt acquisition being strategic in nature no interest accrual has been deemed necessary in the current year by the management of the Company.

4. Pursuant to the scheme of amalgamation (the Scheme) between Jamirah Tea Company Limited (hereinafter referred as Jamirah) and the Company as approved by shareholders of the respective companies on 29th January, 2010 and sanctioned by the Honble High Court at Kolkata on 29th March, 2010, under the provisions of The Companies Act, 1956, Jamirah has been merged with the Company w.e.f. appointed date i.e. 01.04.2009.

The Certified copy of the order of Honble Court has been filed with the Registrar of the Companies on 21 st May, 2010. The accounts for the year have been prepared by giving the effect of the scheme.

The Salient Features of the scheme are as under:

a) All the assets and liabilities of Jamirah as on the appointed date have been incorporated in the books of the company at their respective books values on the basis of their audited books as on 31.03.2009 except the carrying value of Land and plantation has been considered at Rs. 31.40 crores as per approved scheme.

In terms of the Scheme, the following equity shares, ranking parripassu, are to be issued to the share holders of the Jamirah. The equity shares held by the Company in the capital of the Jamirah have been cancelled.

b) The accounting treatment as set out in the aforesaid scheme has been done as per the purchase method of accounting as per Accounting Standard 14 "Accounting for Amalgamation". The difference of Rs. 19,97,37,780/- between the consideration and value of net assets as stated in note no (a) above has been treated as capital reserve. The Company will be issuing 0.69% of its post amalgamated equity base for entire share capital of Transferor Company after considering the elimination of its own holding in Jamirah.

c) Shares Suspense represents 22,600 shares of Rs. 10/- each to be issued to the shareholders of the Transferor Company which will rank parri passu with the shareholders of the Company as per the scheme with effective from appointed date. The shares will be allotted on completion of necessary formalities under the Companies Act and Listing agreements. Such dividend shall be payable to them upon allotment of shares and provided in the accounts of the current year.

d) Pursuant to the scheme, the authorized share capital of Transferor Companies shall be added to the authorized capital of the Company and the increase in the authorized share capital in the current year represents the same.

e) Pending completion of the relevant formalities of transfer of certain assets and liabilities of Transferor Company pursuant to scheme as mentioned in point (a) above, such assets and liabilities remain included in the books of the Company under the name of Transferor Company.

f) The financial statement of Jamirah has been audited by erstwhile auditors of Jamirah and approved by erstwhile board of Jamirah on 20th May, 2010. The same financial statements have been incorporated in the current year financial results of the Company after giving impact of amalgamation.

5.Transfer of certain assets/liabilitiesfrom/to Transfer or Companies/ demergedunitsundertheschemeofarrangement/amalgamationscarried out in earlieryears are still in the process of completion.

The above information has been determined to the extent such parties identified on the basis of information available with the Company.

6. The Company is mainly engaged in the production of Tea, Coffee and Minor Produces. In the opinion of the management the above product relate to plantation activities only and therefore do not form separate Segment for the purpose of Segment Reporting under Accounting Standard - 17 on Segment Reporting as notified underThe Companies Accounting Standard Rule 2006". None of the income from other sources falls underthe criteria of reportable segment as perthe relevant provision of the Accounting Standard.

7. The amount of borrowing cost capitalized during the year is Rs. Nil.

8. The exposure of the Company in foreign currency at the end of the year is Rs. Nil (Previous year - Rs. Nil).

9. Employee Benefits (Revised Accounting Standard -15)

a) Defined Contribution Plan

The Company makes contribution towards Provident Fund and Superannuation Fund to a defined contribution retirement plan for qualifying employees. The Provident Fund plan is operated by duly constituted and approved Independents Trustees/Governments. Under the said scheme the Company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

The Company operates a Superannuation Scheme for certain employees and contributions by the Company underthe scheme, is charged against revenue every year.

During the year the Company has recognised Rs.10,276,795/- (Previous Year Rs. 7,191,308/-) for Provident Fund contribution and Rs. 2,209,555/- (Previous Year Rs. 1,482,197/-) for superannuation fund contribution. The contributions payable to these plans by the Company are at the rates specified in the rules of the scheme.

b) Defined Benefit Plans

i) The Company makes annual contribution of gratuity to gratuity funds duly constituted and administered by independent trustees and funded with LIC/independent trust for the qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

ii) The employees of the Company are also eligible for encashment of leave upon retirement up to 30 days for each year (maximum 120 days). The company does not maintain any fund to pay for compensated absences.

iii) The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date.

(a) Amount not recognised as an asset, because of the limit prescribed to Accounting Standard -15 (Revised 2005) i.e. Employees Benefits is Rs. Nil.

(b) There is no reimbursement right at the balance sheet date.

(c) Fair value of plan assets does not include any amount for Companies own financial instruments or any property occupied by, or other assets used by, the Company.

(d) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(e) The Gratuity Scheme is invested in a Group Gratuity - Cum- Life Assurance Cum Accumulation Policy offered by Life Insurance Corporation of India and the Independent Administered Gratuity Fund. The information on the allocations of fund managed by LIC into major assets classes and expected return on each major classes are not readily available. In case of Companys administered trust, 100o/0 allocation of fund has been made towards government securities. The expected rate of return on plan assets is based on the assumed rate of return provided by Companys actuary.

(f) The Company expects to contribute Rs. 178.81 lacs to its gratuity fund in 2010-11.

(g) The disclosure as required by Para 120 (b) of Accounting Standard -15 have been made to the extent applicable to the Company.

10. As reported last year, the Company has realised Rs. 25.97 lacs out of overdue outstanding of Rs. 78.36 lacs due from a debtors.The management is hopeful of recovering the balance amount also and considering the positive outcome of talks with the debtor, the balance amount has been considered good for recovery.

11. The Companys entitlement to deduction under section 80-IC of the Income Tax Act, 1961 in respect of income generated from facilities situated in North East states is pending before Appellate tribunal since assessment year 04-05. Pending disposal of appeal by the Appellate tribunal, the Company continues to claim benefit under section 80-IC which for the year amounts to Rs. 58.06 lacs. The management of the Company does not foresee any additional liability of the income tax at this point.

12. Related Party Disclosures as required by AS - 18"Related Party Disclosures-are given below: Relationships

(a) Subsidiaries of the Company

Gloster Real Estate Private Limited (GREPL) Cowcoody Builders Private Limited (CBPL) Pranav Infradev Company Private Limited (PICPL)

The Cochin Malabar Estate & Industries Limited (CMEI)

(b) Enterprises/Individual having control over the Company

i) Purushottam Das Bangur

ii) Purushottam Das Bangur (HUF)

iii) Gopal Das Bangur

iv) Gopal Das Bangur (HUF)

v) Mungneeram Bangur & Company

vi) Pushpa Devi Bangur

vii) Hemant Bangur

viii) Hemant Bangur (HUF)

ix) Vinita Bangur

x) The Cochin Malabar Estate & Industries Limited (CMEI)

xi) Kettlewell Bullen & Company Limited (KBCL)

xii) The Oriental Company Limited (TOCL)

xiii) MadhavTrading Corporation Limited (MTCL)

xiv) The Cambay Investment Corporation Limited (TCICL)

xv) Credwyn Holdings (I) Private Limited (CHPL)

xvi) Wind PowerVinimay Private Limited (WPVPL)

(c) Other Companies over which the Key Management Personnel are able to exercise a significant influence Gloster Jute Mills Ltd. (GJML)

The Phosphate Company Limited*

Port Shipping Company Limited*

The Kamala Company Limited*

Laxmi Asbestos Products Limited*

MarwarTextile (Agency) Limited*

PD GD Investments &Trading Private Limited (PDGD)

Jagdishpur Company Limited*

Bombay Agency Company Private Limited*

KherapatiVanijya Limited (KVL)

* No transactions during the year

(d) Key Management Personnel

Mr. Hemant Bangur-Executive Vice-Chairman Mr. K. C. Mohta - Executive Director & C.E.O.

13. Due effect of scheme of amalgamation during the year, the current years figures are not comparable with previous year figures. Previous year figures have been arranged/regrouped wherever necessary.

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