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Notes to Accounts of Neelamalai Agro Industries Ltd.

Mar 31, 2018

NOTES

1. GENERAL INFORMATION

Neelamalai Agro Industries Limited was incorporated on 21st April 1943 under the Indian Companies Act 1913. The Company is in Tea Plantation Business of cultivating Tea, its manufacturing and sale,both domestic and export. Its Registered Office and Principal place of business is at Katary Estate, Katary Post, Coonoor, Nilgiris, Tamil Nadu â 643213. The company is listed on the Bombay Stock Exchange (BSE Ltd.)

2. Critical judgements & Estimates in applying accounting policies

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent assets and contingent liabilities at the date of financial statements, income and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods which are affected.

Application of accounting policies that require critical accounting estimates and assumptions having the most significant effect on the amounts recognized in financial statements are as follows:

- Useful lives of property, plant and equipment and intangible assets:

The Company has estimated useful life of each class of assets based on the nature of assets, the estimated usage of the asset, the operating condition of the asset, past history of replacement, anticipated technological changes, etc. The Company reviews the carrying amount of property, plant and equipment and Intangible assets at the Balance Sheet date. This reassessment may result in change in depreciation expense in future periods.

- Taxation:

The company is engaged in the agricultural activities and also subject to Tax liability under CIT & MAT Provisions. Significant judgement is involved in determining the tax liability for the company which includes interpretation of tax legislation, developments in case law and the potential outcomes of tax audits and appeals which may be subject to significant uncertainty. Also, there are many transactions and calculation during the ordinary course of business for which the ultimate tax determination is uncertain. Therefore the actual results may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax assets, cash tax settlements and therefore the tax charge in the statement of profit or loss. Further judgement is involved in determining the deferred tax position on the balance sheet date.

- Defined benefit plans:

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases ,attrition rate and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each Balance Sheet date.

- Provisions & Contingencies:

Provisions and contingencies are based on the Company Managementâs best estimate of the liabilities based on the facts known at the balance sheet date.

From time to time, the Company is subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a payment will be made and the amount of the loss can be reasonably estimated. Significant judgment is made when evaluating, among other factors, the probability of unfavorable outcome and the ability to make a reasonable estimate ofthe amount of potential loss. Litigation provisions are reviewed at each accounting period and revisions made for the changes in facts and circumstances.

- FairValue of financial instruments and biological assets:

The fair value of financial instruments that are unlisted and not traded in active market and biological assets (including agricultural produce) is determined at value assessed based on recent transaction entered into with third party or based on the valuation done by the external appraisers. Where it is not possible to determine a reliable estimate of fair value, the carrying value is determined based on acquisition cost.

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors. The above information has been certified by the actuary and has been relied upon by the Auditors.

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the planâs liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the planâs liability.

NOTE NO. 3

RELATED PARTY TRANSACTIONS

A Details of related parties:

Directors who held the office during the year:

Mr. Ajit Thomas , Chairman

Mrs. Shanthi Thomas , Executive Director

Mr. A. D. Bopana

Mr. F. S. Mohan Eddy

Mr. Raghu Bhale Rao*

Mr. W. D. Nelson*

*For Part of the Year

Key Management Personnel (KMP)

Mr. T M Hari Kumar, Company Secretary & CFO

Associates & Joint Venture of the company :

AVT Natural Products Limited

Midland Corporate Advisory Services Pvt. Ltd.

AVT McCormick Ingredients Private Limited

Entities in which Directors are interested with whom transactions were carried out during the year:

A V Thomas & Co. Ltd.

The Midland Rubber & Produce Co. Ltd.

The Nelliampathy Tea & Produce Co. Ltd.

NOTE NO. 4 (a) GUARANTEE GIVEN BY THE COMPANY

Bank Guarantee of INR 809.58 lakhs (PY - INR 809.58 lakhs) have been given by the company to various authorities & other parties. These guarantees were issued against the margin money kept with bank of INR 86.35 lakhs (PY - INR 81.25 lakhs).

NOTE NO. 4 (b) OTHER REGULATORY MATTERS Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006:

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis ofinformation collected by the Management. This has been relied upon by the auditors.

The Company has applied the following exemptions :

a. Property, plant and equipment â Deemed Cost

Ind AS 101 permits a first time adoption 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 investment property covered by Ind AS 40 âInvestment Propertiesâ. Accordingly, the Company has elected to measure all of its property, plant and equipment and investment property at the carrying value, based on Indian GAAP

b. Measurement of financial assets and financial liabilities at fair value : Under Previous GAAP, all assets and liabilities that are now classified under the head financial assets and financial liabilities were carried at cost. Under Ind AS, however, certain financial assets and financial liabilities are subsequently measured at Fair Value which involves use of Fair Value Measurement hierarchy at the date of transition to Ind AS.

c. Fair valuation of Investments through profit and loss account: Under the Previous GAAP, short term investments in shares & mutual funds were measured at cost less diminution in value. Under the Ind AS, current investments are measured at fair value as at the transition date, the Company has made irrevocable choice to account for these investments at fair value through Profit & Loss (FVTPL).

d. Fair value changes with respect to investments in equity instruments designated at FVOCI (grouped under non-current investments) have been recognised in the other comprehensive income for the year ended 31st March 2017.

e. Under the previous GAAP there were no specific guidelines for accounting of standing crop. Under Ind AS 41, standing crop is required to be valued at fair value. The standing crop of tea as on a date is calculated based on the estimated yield applying a crop index. The crop index is based on the plucking interval recommended and the estimated number of days since the previous round of harvesting. Based on the above method quantity of standing crop is arrived. The derived quantity is multiplied by the fair value as per Ind AS 113.

f. Deferred Tax: Under Ind AS, Deferred tax has been recalculated in respect of above changes and the deferred tax impact as at the transition date has been recognised in opening reserves and for the year ended March 31, 2017.

g. Actuarial gain/ loss on defined benefit plans: Under Ind AS, re-measurements i.e. actuarial gain and losses and the return on plan assets, excluding amounts included in the net interest expenses on the net defined benefit liabilities are recognised in the other comprehensive income instead of Profit & Loss under previous GAAP all these re-measurements were forming part of the profit & loss for the year. There is no impact on the total equity. The current tax effect has been given adjustment to that extent.

h. Figures under previous GAAP have been regrouped/reclassified where ever required.

5.1 Reconciliation of total equity as at 31st March 2017 and 1st April 2016

a. Actuarial gain/ loss on defined benefit plans: Under Ind AS, re-measurements i.e. actuarial gain and losses and the return on plan assets, excluding amounts included in the net interest expenses on the net defined benefit liabilities are recognised in the other comprehensive income instead of Profit & Loss under previous GAAP, all these re-measurements were forming part of the profit & loss for the year. There is no impact on the total equity.

b. Under Ind AS, forex gains have been regrouped under Other Income from Revenue from Operations.

c. Current investments in the nature of shares and mutual funds have been fair valued and the gains have been considered in the profit & loss account under Other Income.

d. Fair value changes in equity instuments designated as FVTOCI have been recognised through the Other Comprehensive Income.

e. The tax effect on a, c and d have been adjusted against profit & loss / OCI as the case may be.

f. The company uses the tea leaves plucked from its estates for its captive use in the manufacture of tea. Under the previous GAAP, the cost of cultivation of tea leaves were taken as the cost of green leaf in the valuation of black tea. As per Ind AS 41, agricultural produce harvested from an entityâs biological asset is required to be measured at fair value less cost to sell at the point of harvest and such measurement is the cost when applying Ind AS 2 Inventories.

g. Under the previous GAAP, there were no specific guidelines for accounting of standing crop. Under Ind AS 41, standing crop is required to be valued at fair value. The standing crop of tea as on a date is calculated based on the estimated yield applying a crop index. The crop index is based on the plucking interval recommended and the estimated number of days since the previous round of harvesting. Based on the above method quantity of standing crop is arrived. The derived quantity is multiplied by the fair value as per Ind AS 113.

h. Figures under previous GAAP have been regrouped/reclassified where ever required.

NOTE NO. 6 FAIR VALUE MEASUREMENT Financial Instruments by category

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed.

B.2 Valuation inputs and relationship to fair value

The fair value is determined based on valuation reports / recent transactions including potential transactions within a reasonable period to the balance sheet date.

C. Fair value of Financial Instruments measured at amortised cost :

Due to the short-term nature ofcash and cash equivalents and the short-term maturities oftrade receivables, loans, liabilities,other laibilities and assets the management considers that the carrying amount of assets and liabilities.

The fair value of financial instruments as referred to in note (A) above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

D. Valuation inputs and relationship to fair value

There are no material level 3 fair value measurements in respect of the financial assets and liabilities of the company.

NOTE NO. 7

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations and toprovide guarantees to support its operations. The Companyâs principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks. The financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed by the senior management in accordance with the Companyâs policies and risk objectives. All derivative activities for risk management purposes are carried out by professionals who have the appropriate skills, experience and supervision. It is the Companyâs policy that no trading in derivatives for speculative purposes may be undertaken.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types ofrisk: interest rate risk, foreign currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31 March 2018 and 31 March 2017.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at 31 March 2018. The sensitivity analysis for equity price risk has been prepared on the basis of the fair value of the equity investments carried as FVTPL (under current investments) and basis change in equity price.

The analysis exclude the impact ofmovements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2018 and 31 March 2017.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs short-term debt obligations with fixed & floating interest rates.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by using foreign currency forward contracts.

When a derivative is entered into for the purpose of being ahedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.

(2) Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities including non- designated foreign currency derivatives. The impact on the Companyâs pre-tax equity is due to changes in the fair value of forward exchange contracts designated as cash flow hedges and net investment hedges. The Companyâs exposure to foreign currency changes for all other currencies is not material.

The company carries a significant amount of investments held as FVTPL (under current investments) which are affected by swings in the equity price in the market. The risk of equity price changes are managed by the company by closely monitoring the market position and accodingly determining the entry and exit into the markets from time to time and also by having a diversified portfolio of investments.

(d) Commodity price risk

The prices ofagricultural commodities are subject to fluctuations due to various factors. In the ordinary course ofbusiness, the company is exposed to commodity price risk to the extent its open sales are not balanced by inventory. The company has in place in a risk management policy to manange such risk by having conscious limits on the sales committed for future periods for which production is yet to be completed and inventiory in place.

(B) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

(a) Trade receivables

Customer credit risk is managed as per the Companyâs established policy, procedures and control relating to customer credit risk management. Credit limits are set with approvals on the basis of the defined policies. Outstanding customer receivables are regularly monitored and exposures are kept with in the credit limits fixed for each customer.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Companyâs performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Companyâs policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the Companyâs policy. Investments of surplus funds are made only with approved counter parties and within credit limits assigned to each counter party.

The Companyâs maximum exposure to credit risk for the components of the balancesheet at 31 March 2018 and 31 March 2017 is the carrying amounts as mentioned in Notes.

The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of bank over drafts and bank loans. The Company assessed the concentration of risk with respect tore financing its debt and concluded it to below. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

The table below summarises the maturity profile of the Companyâs financial liabilities based on contractual undiscounted payments.

NOTE NO. 8 CAPITAL MANAGEMENT

For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Companyâs capital management is to maximise the shareholder value.

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

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2018 and 31 March 2017.

The companyâs borrowing facilities comprising cash credit facility of Rs.275 Lakhs - Cash credit & Export Packing Credit in foreign currency which is secured by hypothecation of stock-in-trade, standing crops book debts, vehicles and also equitable mortgage of Katary Estate with Buildings thereon.

NOTE NO. 9 DIVIDENDS

Dividends paid during the year 2017-18 represent Final Dividend of 20% declared in the financial year 2016-17 (Rs.151.02 lakhs inclusive of DDT).

The dividends declared by Neelamalai Agro Industries Limited are in Indian Rupees and are based on the profits available for distribution as reported in the statutory financial statements of Neelamalai Agro Industries Limited. Subsequent to March 31, 2018, the Board of Directors of Neelamalai Agro Industries Limited have proposed a dividend of Rs.20 per share (200 percent) in respect of financial year 2017-18. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately INR Rs.151.02 lakhs, inclusive ofcorporate dividend tax.

Mar 31, 2017

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognized.

NOTE: 1

EXIT OFFER FROM DISSEMINATION BOARD OF NSE

The Board of Directors the Company in its meeting held on 10 February 2017 has decided to participate as promoter in the Exit Offer as per SEBI Circular Number SEBI/HO/MRD/DSA/CIR/P/2016/110 dated October 10, 2016 of certain Group Companies namely A. V. Thomas & Co. Ltd., The Midland Rubber & Produce Co. Ltd and The Nelliampathy Tea & Produce Co. Ltd., The cost incurred till 31-March-2017 towards the same will be capitalized along with the purchase of shares. The cost till 31-March-2017 amounts to Rs. 6, 85,868/- which has been shown under the head "Short Term Loans and Advances". Further the company is maintaining a margin money deposit of Rs. 81, 25,303/- for the said purpose. In addition to that company has given a bank guarantee for Rs. 8, 09, 58,400/- to National Stock Exchange of India Ltd.

NOTE: 2

DISCLOSURE ON SPECIFIED BANK NOTES (SBNs)

During the year, the company had specified bank notes or other denomination note as defined in the MCA notification GSR 308 (E) dated March 31, 2017 on the details of Specified Bank Notes (SBNs) held and transacted during the period from 8th November, 2016 to 30th December, 2016, the denomination wise SBNs and other notes as per the said notification is given below.

* For the purpose of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance. Department of Economic Affairs number SO 340E, dated the 8th November, 2016.

EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company''s defined benefit plan:

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

i) Defined Contribution Plans:

The Company makes contribution towards employees'' provident fund, family pension fund, super annotation fund and employees'' state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 97, 51,980/- as expense towards contributions to these plans.

NOTE : 34
RELATED PARTY TRANSACTIONS
Following associate companies are related to the Company
on account of common control through Constitution of
Board / Shareholdings
- A. V. Thomas & Co. Ltd.	- AVT Holdings Private Ltd.
- A. V. Thomas International Ltd.	^- A. V. Thomas Leather and Allied Products Pvt. Ltd.
- L. J. International Ltd.	^- A. V. Thomas Exports Ltd.
- A. V. Thomas Investments Company Ltd.	^- Midland Latex Products Ltd.
- The Nelliampathy Tea & Produce Co. Ltd.	- Sermatech Private Ltd.
. - The Midland Rubber & Produce Co. Ltd.	- Aspera Logistics Private Ltd.
- A V T Natural Products Ltd.	- Midland Corporate Advisory Services (P) Ltd.
- AVT McCormick Ingredients Private Ltd.	- AVT Gavia Foods Private Ltd.
- J. Thomas Educational & Benevolent Trust	- Midland Charitable Trust
- AVT Tea Service North America LLC, USA	- AVT Tea Services Ltd. UK
- Madura Micro Finance Ltd.
Key Managment Personnel :	Mr. Ajit Thomas, Chairman
	Mrs. Shanthi Thomas, Executive Director
	Mr. T. M. Harikumar, Company Secretary & CFO

Mar 31, 2016

NOTE : 1

SEGMENT REPORTING

The Companyâs operations relate only to Plantation Crops in the domestic as well as export markets and accordingly primary segment reporting disclosure for business segments, as envisaged in Accounting Standard 17 on âSegment Reporting (AS 17)â issued by The Institute of Chartered Accountants of India, are not applicable. The Companyâs operations relating to Secondary segment reporting has been confined to sales in India and export outside India.

Fixed Assets used in the Companyâs business and liabilities contracted in respect of its sole manufacturing facilities are not identifiable in line with the following reportable segments as the fixed assets and liabilities contracted are used interchangeably between two segments. Accordingly only figures for debtors have been given Secondary Segment Reporting

NOTE : 2

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognized.

NOTE : 3. EMPLOYEE BENEFITS

4. Defined Benefit Plans

5. Description of the Companyâs defined benefit plan :

6. Gratuity Scheme

7. Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

8. Defined Contribution Plans:

The Company makes contribution towards employeesâ provident fund, family pension fund, super annuation fund and employeesâ state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 89,58,897/- as expense towards contributions to these plans.

Note : 9. Previous Yearâs figures have been re-grouped wherever necessary

Mar 31, 2015

NOTE:1

DUE TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Company, the Principal amount due to Micro and Small enterprises as on 31.03.2015 is Nil (Previous year Rs. Nil). There are no overdue principal amounts and therefore no interest is paid or payable.

Year ended Year ended 31.03.2015 31.03.2014 Rs. Rs.

NOTE : 2

CONTINGENT LIABILITY

Contracts remaining to be executed on Capital Account --- ---

NOTE : 3

SEGMENT REPORTING

The Company's operations relate only to Plantation Crops in the domestic as well as export markets and accordingly primary segment reporting disclosure for business segments, as envisaged in Accounting Standard 17 on "Segment Reporting (AS 17)" issued by The Institute of Chartered Accountants of India, are not applicable. The Company's operations relating to Secondary segment reporting has been confined to sales in India and export outside India.

Fixed Assets used in the Company's business and liabilities contracted in repect of its sole manufacturing facilities are not identifiable in line with the following reportable segments as the fixed assets and liabilities contracted are used interchangeably between two segments. Accordingly only figures for debtors have been given Secondary Segment Reporting

NOTE : 4

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognised.

NOTE : 5

ACCOUNTING FOR TAXES ON INCOME

The company has adopted the useful life of Fixed Assets Prescribed under Part C of schedule II of the Companies Act 2013 for providing depreciation from 1st April 2014. As a result of this depreciation for the year ended 31.03.2015 is higher by Rs. 29,99,247/- with consequential effect on statement of profit and loss before tax by this amount.

For the Tangible Fixed Assets that had completed useful life as on 01.04.2014, the carrying amount of Rs. 2,45,651/- has been adjusted against the opening balance of retained earings as per Note 7 of Part C of Schedule II of the Companies Act 2013

NOTE : 6

EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company's defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

Note : 7 Previous Year's figures have been re-grouped wherever necessary

Mar 31, 2014

NOTE : 1

DUE TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Company, the Principal amount due to Micro and Small enterprises as on 31.03.2014 is Nil (Previous year Rs. Nil). There are no overdue principal amounts and therefore no interest is paid or payable.

NOTE : 2

CONTINGENT LIABILITY

Contracts remaining to be executed on Capital Account - 15,52,315

NOTE : 3

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognised.

NOTE : 4 EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company''s defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

5. The estimates of future salary increases, considered in acturial valuation, take account of inflation, seniority, promotion and other relevent factors such as demand and supply in the employment market.

The Company expects to fund Rs. 49/- lakhs towards it Gratuity Plan during the year 2014 - 2015.

6. i) Defined Contribution Plans:

The Company makes contribution towards employees'' provident fund, family pension fund, super annuation fund and employees'' state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognised Rs. 76,04,137/- as expense towards contributions to these plans.

Note

7. Previous Year''s figures have been re-grouped wherever necessary

Mar 31, 2013

NOTE : 1

CONTINGENT LIABILITY

Contracts remaining to be executed on Capital Account 15,52,315 Nil

NOTE : 2 SEGMENT REPORTING

The Company''s operations relate only to Plantation Crops in the domestic as well as export market and accordingly primary segment reporting disclosure for business segments, as envisaged in Accounting Standard 17 on "Segment Reporting (AS 17)" issued by The Institute of Chartered Accountants of India, are not applicable.

The Company''s operations relating to Secondary segment reporting has been confined to sales in India and export outside India.

Fixed Assets used in the Company''s business and liabilities contracted in repect of its sole manufacturing facilities are not identifiable in line with the following reportable segments as the fixed assets and liabilities contracted are used interchangeably between two segments. Accordingly only figures for debtors have been given

NOTE : 3

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognised.

NOTE : 4 EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company''s defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

The Company expects to fund Rs. 82/- lakhs towards it Gratuity Plan during the year 2013 - 2014.

ii) Defined Contribution Plans:

The Company makes contribution towards employees'' provident fund, family pension fund, super annuation fund and employees'' state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognised Rs. 54,45,050/- as expense towards contributions to these plans.

Mar 31, 2012

NOTE : 1 DUE TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Company, the Principal amount due to Micro and Small enterprises as on 31.03.2012 is Nil (Previous year Rs. Nil). There are no overdue principal amounts and therefore no interest is paid or payable.

NOTE : 2 SEGMENT REPORTING

The Companys operations relate only to Plantation Crops in the domestic as well as export market and accordingly primary segment reporting disclosure for business segments, as envisaged in Accounting Standard 17 on ÃSegment Reporting (AS 17)Ã issued by The Institute of Chartered Accountants of India, are not applicable.

The Companys operations relating to Secondary segment reporting has been confined to sales in India and export outside India.

Fixed Assets used in the Companys business and liabilities contracted in repent of its sole manufacturing facilities are not identifiable in line with the following reportable segments as the fixed assets and liabilities contracted are used interchangeably between two segments. Accordingly only figures for debtors have been given

Secondary Segment Reporting

NOTE : 3

ACCOUNTING FOR TAXES ON INCOME

The impact of Deferred Tax on Income for the year is considered not material and hence not recognized.

NOTE : 4 EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Companys defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encashment scheme for its employees.

ii) Defined Contribution Plans:

The Company makes contribution towards employees provident fund, family pension fund, super annotation fund and employees state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 50,45,807/- as expense towards contributions to these plans.

Mar 31, 2011

1. CONTINGENT LIABILITY

Claims against the company not acknowledged as debts Nil 5,28,000

2. TAXES ON INCOME

The impact of deferred tax on income for the year is considered not material and hence not recognised.

3. EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Company's defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encahsment scheme for its employees.

ii) Defined Contribution Plans:

The Company makes contribution towards employees' provident fund, family pension fund, super annuation fund and employees' state insurance scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognised Rs. 40,60,462/- as expense towards contributions to these plans.

4. RELATED PARTY TRANSACTIONS

Following associate companies are related to the Company on account of common control through Constitution of Board / Shareholdings

- A. V. Thomas & Company Ltd. - Midland Latex Products Ltd.

- A. V. Thomas International - Sermatech Private Ltd. Ltd.

- L. J. International Ltd. - Midland Corporate Advisory Services Pvt. Ltd. - A. V. Thomas Investments (Formerly ST Holding Private Ltd. Company Ltd.

- The Midland Rubber & Produce - AVT Natural Pte Ltd. Co. Ltd.

- The Nelliampathy Tea & - Heilongjiang AVT Bio-Products Ltd. Produce Co. Ltd.

- A V T Natural Products Ltd. - (Formerly Tonghe AVT Natural Ltd.)

- Ajit Thomas Holdings Private - AVT Gavia Foods Private Ltd.

- A. V. Thomas Exports Ltd. - J. Thomas Educational & Benevolent Limited Trust

- AVT McCormick Ingredients - Midland Natural Pte. Ltd.

- Teleflex Medical Private - Midland Charitable Trust Ltd.

- A. V. Thomas Leather and - AVT Infotech Allied Products Pvt.Ltd. Private Ltd.

Key Managment Personnel: Mr. Ajit Thomas, Chairman Mr. S. Rajasekar, Director

5. Previous Year's figures have been re-grouped wherever necessary

Mar 31, 2010

1. DUE TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Company, the principal amount due to Micro and Small Enterprises as on 31.03.2010 is Nil. There are no overdue principal amounts and therefore no interest is paid or payable.

2. CONTINGENT LIABILITY Year ended Year ended 31.03.2010 31.03.2009

Claims against the company not acknowledged as debts 5,28,000 5,28,000

3. TAXES ON INCOME

The impact of deferred tax on income for the year is considered" not material and hence not recognised.

4. EMPLOYEE BENEFITS

i) Defined Benefit Plans

a) Description of the Companys defined benefit plan :

i) Gratuity Scheme

This is a funded defined benefit plan for qualifying employees for which, the Company makes contribution to the Gratuity Fund managed by the Life Insurance Corporation of India. The Scheme provides for a lumps 1m payment to vested employees at reurement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

ii) Leave Encashment

The company also operates a non funded leave encahsment scheme for its employees.

5. Previous Years figures have been re-grouped wherever necessary

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