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Notes to Accounts of Tata Coffee Ltd.

Mar 31, 2017

Trade Receivables hypothecated as Security for part of the Working Capital facilities.

The creditworthiness of trade debtors and the credit terms set are determined on a case to case basis. Adequate insurance cover has been taken on export debts. Based on the above, there is a low credit risk on trade receivables.

The fair values of trade receivables are not considered to be significantly different from their carrying values, given their generally short period to maturity, with impairment reviews considered on an individual basis rather than when they become overdue.

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 G.S.R. 308(E) dated March 30, 2017 on the details of Specified Bank Notes (SBNs) held and transacted during the period from November 8, 2016 to December 30 2016, the denomination wise SBNs and other notes as per the notification is given below:

E. Rights, Preferences and restrictions of Equity Shares:

The Company has one class of equity shares having a par value of Rs. 1 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding.

* The Board of Directors, in its meeting on May 18, 2017, have proposed a final dividend of Rs.1.75 per share (face value of Rs. 1/- each) for the year ended March 31, 2017, which includes a special dividend of Rs.0.25 per share to commemorate the completion of 25 years of a Tata Group Company acquiring controlling interest in Tata Coffee Limited (erstwhile Consolidated Coffee Limited). The proposal is subject to the approval of shareholders at the Annual General Meeting.

* Refer Note No. 42- First Time Adoption - Reconciliation of Equity and Total Comprehensive Income Nature and purpose of Reserves Capital Redemption Reserve Capital Redemption Reserve has been created in compliance with erstwhile Companies Act, 1956.

Securities Premium Reserve

Securities Premium Reserve relates to securities premium over face value for Equity Shares issued in FY 2006-07.

General Reserves II

Capital profits on sale value of own timber are transferred to General Reserve II through the Retained Earnings.

Amalgamation Reserves

Amalgamation Reserves pertains to the scheme of amalgamation of the Company with erstwhile Asian Coffee Limited, Coffee Lands Limited and SIFCO Limited.

1. External Commercial Borrowing is secured by first ranking exclusive charge over the land, building and plant & Machinery of a coffee estate and a pari-passu charge over immovable property situated at the Theni Plant. The Loan is repayable in sixteen equal quarterly installments commencing from September 3, 2013. The coupon rate is linked to Libor plus applicable spread.

2. Working Capital Facilities are secured by hypothecation of Coffee crop, inventories, finished/semi-finished goods/ receivables of the company. Part of the working capital facilities is also secured by deposit of title deeds of a coffee estate. The Working Capital is repayable on demand. The coupon rate is linked to Marginal Cost Fund based lending rates. (MCLR)

3. Unsecured Loans from Banks are towards Working Capital facilities and are repayable on demand. The coupon rate is based on MCLR linked rates.

$ includes amounts due beyond the applicable period of Rs. Nil (Rs. Nil) and no interest is paid or payable.

The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

$$ Financial year 2016-17 Other services includes services on Taxation & Other matters.

Note No. 4 - Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are Healthcare including Preventive healthcare, providing Safe drinking water, sanitation facility, promoting education, Old Age Home maintenance, Environmental sustainability and promotion and development of traditional art and handicrafts. A CSR committee has been formed by the company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

a) Gross amount required to be spent by the company during the year is Rs.217.83 Lakhs. (PY Rs.235 Lakhs)

b) Amount spent during the year on: Rs.221.29 Lakhs (PY Rs.247.67 lakhs)

Note No. 5 - Financial Risk Management

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit which regularly reviews risk management controls and procedures, the results of which are reported to the audit committee.

The Company has exposure to Credit, Liquidity and Market risks arising from financial instruments:

A. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

Trade and other receivables:

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the country in which customers operate.

The Risk Management Committee has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Credit limits are established for each customer and reviewed periodically.

As at March 31, 2017, the ageing of Trade Receivables and the maximum exposure to credit risk by geographic region was as follows:

At the end of the reporting period, there are no significant concentrations of credit risk for financial assets designated at FVTPL. The carrying amount reflected above represents the maximum exposure to credit risk for such financial assets.

Cash and cash equivalents

The Company held cash and cash equivalents of Rs.143.00 Lakhs at March 31, 2017 (March 31, 2016: Rs.2596.57 Lakhs).

B. LIQUIDITY RISKS

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to derivative financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity. The disclosure shows net cash flow amounts for derivatives that are net cash-settled and gross cash inflow and outflow amounts for derivatives that have simultaneous gross cash settlement.

C. MARKET RISKS:

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company''s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables.

The Plantation Industry is dependent on nature, making it susceptible to climate vagaries. The major weather factors that influence coffee yield are rainfall, temperature, light intensity and relative humidity. To mitigate the risk of drought conditions, the Company has invested significantly on augmentation of irrigation capacities rain water harvesting to improve the water table and enhance the water storage capacity. With regard to Plantation Operations, borer infestation is a continuous threat being faced. The Company, in addition to regular tracing and chemical control, has taken rigorous initiatives to curb pest incidence. It is also working closely with various R&D cells for developing effective measures in this regard.

Commodity Price Risk

Tata Coffee exposure to Market risk for commodity prices can result in changes to realization for its Plantation products and Cost of Production for its value added products. The risk associated is actively monitored for mitigation options. The other mitigants includes strict implementation of Board mandated Commodity policy and also the natural hedge arising on export of Plantation produce vis a vis import of Coffee for value added segment.

Currency Risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date. The Company does not use derivative financial instruments for trading or speculative purposes. Following is the derivative financial instruments to hedge the foreign exchange rate risk as of March 31, 2017:

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. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Exposure to Interest Rate Risk

Company''s interest rate risk arises from borrowings. The interest rate profile of the Company is based on Libor linked rates for its External Commercial Borrowings and MCLR linked rates for its working capital.

The following table demonstrates the sensitivity on the Company''s profit before tax, to a reasonably possible change in interest rates on that portion of loans and borrowings affected, with all other variables held constant:

Capital Management

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

Note No. 6 - Employee Benefits Obligations

Post Retirement Employee Benefits:

a) Defined Contribution Plans:

The Company operates defined contribution schemes like provident fund and superannuation schemes. For these schemes contributions are made by the company, based on current salaries, to the recognized funds maintained by the company and for certain categories contributions are made to State Plans. In case of provident fund schemes, contributions are also made by employees. An amount of Rs.1444.08 Lakhs (previous year: Rs.1204.17 Lakhs) has been charged to the Statement of Profit and Loss towards defined contribution schemes.

b) Defined Benefit Plans:

i) Gratuity:

The Company has covered its gratuity liability by a Group Gratuity Policy named Employee Group Gratuity Assurance Scheme'' issued by LIC of India. The benefits are determined using the projected unit credit method with actuarial valuation being carried out at each Balance Sheet date.

ii) Post retirement Benefits:

The Company''s Retired/Continuing Whole time Directors are eligible for certain post retirement defined benefits on meeting the eligibility criteria and subject to the approval of the Board and is non-funded.

iii) Medical:

The Company''s retired staff/sub-staff, Junior Officers and Management staffs are eligible for Post-Retiral medical benefit subject to certain conditions and limits. This is recognized based on actuarial valuation and the plan is non-funded.

The table below outlines where the Company''s post employment amounts and activity are included in the financial instruments.

The key actuarial assumptions to which the defined benefit obligation results are particularly sensitive to , mainly Gratuity Fund, are discount rate and future salary escalation rate. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

If the discount rate increases (decreases) by 0.50%, the defined benefit obligation would decrease by Rs.254 Lakhs (increase by Rs.272 lakhs) as of March, 2017.

If the expected salary growth increases (decreases) by 0.50%, the defined benefit obligation would increase by Rs.269 lakhs (decrease by Rs.253 lakhs) as on March 31, 2017.

Note No. 7 - Fair Value Measurement

A. Fair Value Measurement-Agricultural Produce

Agricultural produce is the harvested produce of the entity''s Biological Assets (Bearer Plants) at the point of Harvest. Green Bean in Fruit form, Green Pepper and Green Tea at the point of plucking falls within the definition of Agricultural Produce at the point of Harvest.

The Company uses a Valuation technique that is appropriate in the circumstances and for which sufficient data are available to measure the fair value, maximizing the use of relevant observable inputs. Accordingly, the Company follows a Market Approach as permitted under Indian Accounting Standard Ind AS-113- ''Fair Value Measurement.

(i) Fair Valuation of Coffee:

The Coffee on reporting dates are available in (a) Fruit Form (b) Dried Uncured form and (c) at Cured Coffee level.

There is no active quoted market for Green Bean in Fruit Form. Hence, Level 1 inputs (unadjusted quoted prices in active markets for identical assets or liabilities) are not available for valuation.

The Coffee Board publishes Daily Market Prices of Arabica Parchment, Arabica Cherry, Robusta Parchment and Robusta Cherry at Dried Uncured Coffee level.

Based on the well established conversion norms and the Coffee Board prices, the cured equivalent of fair valuation of Fruit Coffee are arrived at based on Level 2 observable inputs.

The Valuation is carried out at the Fruit Coffee Level, while the quoted prices are available at the Dried Coffee level. Hence, the fair value measurement is satisfying the conditions for applying Level 2 of the Fair Value hierarchy.

Suitable adjustments based on conversion norms applicable for the dried uncured Coffee and cured Coffee are carried out to arrive at the corresponding Fair Value at these stages.

(ii) Fair Valuation of Pepper:

The Spices Board of India publishes the average market rates for Pepper MG1 Grade. Since the Company produces and markets Pepper in various grades, apart from MG1, the quoted Prices for MG1 are considered as Level 2 inputs being quoted prices of Various Grades. The MG1 rate is applied to the Company''s estimated grade % for black pepper production and the composite weighted average fair value is arrived at and after making adjustments for subsequent processes.

The fair value so arrived at becomes the Ind AS 2 Inventory rate /value and thereafter regular inventory accounting process is followed.

(iii) Fair Valuation of Tea:

The tea leaves at the point of plucking are designated as Agricultural Produce at the point of harvest. The fair valuations are based on the market rate applicable for the Green Leaf Component which forms a Level 1 Valuation input with corresponding conversion charges.

B. Fair Value of Equity

The Fair value of equity investments except investments in subsidiaries are based on Quoted prices available on last reporting rate which is a Level 1 input.

Note No. 8 - First Time Adoption

The Stand Alone financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended, read with relevant rules issued there under in terms of the SEBI LODR, as modified by Circular No. CIR/ CFD/FAC/62/2016 dated July 5, 2016.

For periods up to and including the year ended March 31, 2016, the Company prepared its financial statements in accordance with the then applicable Accounting Standards in India (''previous GAAP''). The adoption of Ind AS was carried out in accordance with Ind AS 101, considering April 1, 2015 as the transition date. Pursuant to adoption of Ind AS, the differences in the carrying amounts of assets and liabilities on the transition date under the previous GAAP and the balances on adoption of Ind AS have been recognized directly in equity. The financial statements for the year ended March 31, 2016 and the Balance Sheet as at the transition date and as at March 31, 2016 have been presented under Ind AS for comparative purposes. Accounting policies have been applied consistently to all periods presented in these Stand alone Financial Results.

Exemptions and exceptions availed

(I) Optional Exemptions

Ind AS 101 - First-time adoption of Ind AS permits certain optional exemptions from full retrospective application of Ind AS accounting policies and the following options have been adopted as at the date of transition:

(a) The Company has elected to measure all of its Property, Plant and Equipment, Investment Property and Intangible Assets at their previous GAAP carrying value as at the transition date of April 1, 2015 in terms of Para D7AA of Ind AS-101 and considered the same to be deemed cost.

(b) The Company has designated equity investments in its subsidiary Consolidated Coffee Inc. to be held at cost, being the previous GAAP carrying value as at the transition date.

(c) The Company has designated long term equity instruments held at 1 April 2015 as fair value through Other Comprehensive Income in terms of Para D19B of Ind AS-101.

(d) The Company has elected to apply the exemption provided by Para D13AA of Ind AS-101 to its External Commercial Borrowings as at the transition date and any exchange differences arising from translation of External Commercial Borrowings will continue to be capitalized in terms of Para 13AA of Ind AS-101.

(e) Business combinations prior to the date of transition have not been restated based on Ind AS principles.

9. Property, Plant and Equipment:- During the financial year 2015-16, the Company had aligned its policy of providing depreciation on fixed assets with effect from April 1, 2015. by providing on a straight line basis for all assets as against the policy of providing on written down value basis for certain assets and straight line basis for others. As prescribed by Para 21 of erstwhile Accounting Standard 6-''Depreciation Accounting, depreciation had been recomputed from the date of the asset coming into use. The adoption of new policy resulted in write back of depreciation, relating to periods prior to March 31, 2015. The retrospective recomputation of Depreciation is not permitted under Ind AS-16, ''Property, Plant and Equipment'' and the Exceptional item, pertaining to the period prior to financial Year 2015-16, has therefore been reversed in the Ind AS Balance Sheet.

10. Capital Work in Progress:- Ind AS Adjustments represents Bearer Plants in Progress, which is eligible for capitalization under the provisions of Ind AS-16.

11. Investment Property:- Ind AS Adjustments represents depreciation on investment property under Straight Line Method over the residual estimated useful life of Investment Property of 50 years.

12. Investment:- Ind AS Adjustments represents fair value movement for Equity Investments designated as Fair Valued through Other Comprehensive Income.

13. Inventories:- Ind AS Adjustments represents fair valuation of Agricultural Produce.

14. Deferred Tax Liabilities :- Ind AS Adjustments represents deferred Tax impact of Ind AS Adjustments during the year.

15. Provisions:- Ind AS Adjustment represents Dividend and Dividend Tax payable which cannot be provided before being approved by the General Body Meeting and hence Previous GAAP provision is being reversed.

16. As required by Ind AS-109, the Loans and Advances and Other Liabilities has been grouped under Financial Assets/Financial Liabilities.

17. Revenue from Operations :- Under Ind AS, Revenue from Operations is recognized on the basis of the net economic benefit flowing to the Company. Accordingly, Revenue from Operations is net off Stockiest incentive. Excise Duty Component should be included in revenue and shown separately as an expense. The Profit on sale of Timber Biological Asset earlier recognized under Revenue from Operations has been presented under Other Income.

18. Changes in inventories of finished goods, work-in-progress and stock-in-trade :- Ind AS Adjustments represents fair value movement on account of fair valuation of agricultural produce.

19. Employee benefit expense :- Ind AS Adjustments represents expenses on account of replanting eligible for capitalization under Ind AS-16 and remeasurement of the Defined Benefit Plans being designated at fair valued through Other Comprehensive Income.

20. Depreciation and Amortization expense :- Ind AS Adjustments of represents depreciation of on Investment Property and write back of depreciation on account of change in method of providing depreciation from WDV to SLM.

21. Exceptional Items:- During the financial year 2015-16, the Company had aligned its policy of providing depreciation on fixed assets with effect from April 1, 2015, by providing on a straight line basis for all assets as against the policy of providing on written down value basis for certain assets and straight line basis for others. As prescribed by Para 21 of erstwhile Accounting Standard 6- ''Depreciation Accounting, depreciation had been recomputed from the date of the asset coming into use. The adoption of new policy resulted in write back of depreciation relating to periods prior to 31st March, 2015. The retrospective recomputation of Depreciation is not permitted under Ind AS-16, ''Property, Plant and Equipment''.

22. Deferred Tax:- Ind AS Adjustments represents deferred Tax impact of Ind AS Adjustments during the year.

Cash Flows:

There were no significant reconciliation items between cash flows prepared under previous GAAP and those prepared under Ind AS except an amount of Rs.338.61 Lakhs which has been reclassified from Operating Activities to Investing Activities.


Mar 31, 2016

1. CHANGE IN ACCOUNTING POLICY

The Company had been providing depreciation up to 31st March, 2015 on the Written Down Value Method for all its assets in Coffee Estates and Tea Estates in Coorgand Hassan and part of Curing Works and on straight line method for all other assets.

The Company, in order to bring uniformity in depreciation policy, has aligned its policy of providing depreciation on fixed assets on Straight Line basis for all assets with effect from 1st April, 2015. This has resulted in Depreciation charge for the year lower by Rs, 261.00 Lakhs, the Profit before Tax for the year and the Written Down Value as at the end of the year being higher by Rs,1958.15 Lakhs.

2. DISCLOSURE REGARDING DERIVATIVE INSTRUMENTS:

A. The Company uses foreign currency hedges to manage its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecasted transactions. The company does not use derivative instruments for speculative purposes.

3. DISCLOSURE AS PER ACCOUNTING STANDARD

4. - EMPLOYEE BENEFITS:

Post Retirement Employee Benefits:

a) Defined Contribution Plans:

The Company operates defined contribution schemes like provident fund and defined contribution superannuation schemes. For these schemes contributions are made by the company, based on current salaries, to the recognized funds maintained by the company and for certain categories contributions are made to State Plans. In case of provident fund schemes, contributions are also made by employees. An amount of Rs, 1204.17 Lakhs (previous year: Rs,1105.29 Lakhs) has been charged to the Profit and Loss Statement towards defined contribution schemes.

b) Defined Benefit Plans: i) Gratuity:

The Company has covered its gratuity liability by a Group Gratuity Policy named Employee Group Gratuity Assurance Scheme'' issued by LIC of India. The benefits are determined using the projected unit credit method with actuarial valuation being carried out at each Balance Sheet date.

ii) Post retirement Benefits:

The Company''s Retired / Continuing Whole time Directors are eligible for certain post retirement defined benefits on meeting the eligibility criteria and subject to the approval of the Board and is non-funded.

iii) Medical:

The Company''s retired staff/sub-staff. Junior Officers and Management staffs are covered by a Post-Retrial medical benefit which is being valued based on actuarial valuation and the plan is non-funded.

5. Advertisement and Sales promotion Expenses for the financial year includeRs, 477 Lakhs towards share of cost for Brand Development, Sales Promotion and Marketing expenses of Tata Coffee Grand ''which is an Instant Coffee product, jointly developed by the Company with its Holding Company, Tata Global Beverages Limited under a provisional agreement. The Company is in the process of finalizing the definitive agreements pertaining to Tata Coffee Grand''.

Names of related parties and description of relationship

1. Holding Company Tata Global Beverages Limited

2. Subsidiaries Consolidated Coffee Inc.

Eight O'' Clock Holdings Inc. Eight O'' Clock Coffee Company

3 Key Management Personnel Mr. Sanjiv Sarin, Managing Director & CEO (from 25.04.2015)

Mr. Chacko Purackal Thomas, Executive Director and Deputy CEO (from 04.08.2015)

Mr. KVenkataramanan, Executive Director (Finance) &CFO

Mr. T Radhakrishnan, Executive Director

Mr. N. S. Suryanarayanan, Company Secretary

4 Fellow Subsidiaries/JVs OOOSuntyLLC

Tata Global Beverages GB Ltd

Tata Starbucks Private Limited

Tata Global Beverages Australia Pty. Ltd.

Earth Rules Pty.Ltd.

Comparative figures relating to the previous year have been reclassified wherever necessary to conform to the classification adopted this year.


Mar 31, 2015

NOTE NO. 1.01:

1. General Information

Tata Coffee Limited ("the Holding Company") and its subsidiaries (together "the Group") are engaged in the production, trading and distribution of Coffee, Tea and Allied products. The Company owns Coffee and Tea Plantations and Instant Coffee manufacturing facilities in India. The Company exports Coffee to many countries including CIS countries, Europe and Africa. The Group has presence in USA through its overseas subsidiary Consolidated Coffee Inc.

2.1 AMALGAMATION OF COMPANIES:-

I. During the year under review, the Honourable High Court of Karnataka approved the Scheme of amalgamation of Alliance Coffee Ltd. (ACL) the Company''s wholly owned subsidiary with the Company with effect from 1st April 2013; consequently the Assets and Liabilities of ACL stand vested with the Company from the effective date and ACL stands dissolved without undergoing the process of winding up.

II. ACL was engaged in the Marketing of Instant Coffee.

III. As a consequence of the amalgamation;

a. The Assets and Liabilities of erstwhile ACL with effect from 1st April 2013, have been incorporated in the Books of Accounts of the Company as per "Pooling of Interest Method" as prescribed by AS 14 specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

b. The shares held by the Company in ACL stands cancelled. The difference between the Net Asset value of ACL (Rs.93.31 Lakhs and Cost of Investment of the Company in ACL of Rs. 45.51 Lakhs) is adjusted against the Reserves and Surplus in Statement of Profit and Loss of the Company as provided in the Scheme.

c. As the effective date of Amalgamation is after the year ended 31.03.2014, the Profit After Tax of ACL for the Financial Year ended 2013-14 amounting to Rs. 5.37 Lakhs is adjusted against the Reserves and Surplus in Statement of Profit and Loss of the Company.

d. The Financial Results of the Company for the year ended 31.03.2015 are inclusive of the figures of erstwhile ACL.

2.2 CHANGE IN ACCOUNTING POLICY

The Company, in the current year has accounted for the value of the wind fallen/extracted timber based on Management estimate. This has resulted in the Profit Before Tax for the Year being higher by Rs.8.30 crores.

2.3 DISCLOSURE REGARDING DERIVATIVE INSTRUMENTS:

i. The Company uses foreign currency hedges to manage its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecasted transactions. The Company does not use derivative instruments for speculative purposes.

ii. The following are outstanding Currency Option contracts and other Hedging instruments, which have been designated as Cash flow Hedges as per the provisions of Hedge Accounting in Accounting Standard -30.

The Foreign Currency exposures that are not hedged by a derivatives instrument or otherwise, aggregates to uSD 6.065 million towards payable (Previous year USD 8.125 million) and uSD 0.08 million (Previous year USD 6.10 million) towards receivables as at the Balance Sheet date.

2.4 DISCLOSURE AS PER AS 15 - RETIREMENT BENEFITS:

Post Retirement Employee benefits:

a) defined Contribution plans:

The Company operates defined contribution schemes like provident fund and defined contribution superannuation schemes. For these schemes contributions are made by the Company, based on current salaries, to the recognised funds maintained by the Company and for certain categories contributions are made to State Plans. In case of provident fund schemes, contributions are also made by employees. An amount of Rs.1,105.29 Lakhs (Previous Year : Rs.923.61 Lakhs) has been charged to the Profit and Loss Statement towards defined contribution schemes.

b) defined benefit plans:

i) Gratuity:

The Company has covered its gratuity liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued by LIC of India. The benefits are determined using the projected unit credit method with actuarial valuation being carried out at each Balance Sheet date.

ii) Post retirement Benefits:

The Company''s Retired/Continuing Whole time Directors are eligible for certain post retirement defined benefits on meeting the eligibility criteria and subject to the approval of the Board and is non-funded.

iii) Medical:

The Company''s retired staff/sub-staff, Junior Officers and Management staffs are covered by a Post-Retiral medical benefit which is being valued based on actuarial valuation and the plan is non-funded.

With effect from 27th January, 2015 , the face value of the Company''s shares has been subdivided from Rs. 10 per share to Rs. 1 per share. Earnings per share for previous year have been computed based on the revised number of shares.

Names of related parties and description of relationship

1. Holding Company :

Tata Global Beverages Limited

2. Subsidiaries/JVs :

Consolidated Coffee Inc.

Eight O'' Clock Holdings Inc.

Eight O'' Clock Coffee Company

3. Key Management Personnel :

Mr. Hameed Huq, Managing Director (till 31.03.2015)

Mr. M. Deepak Kumar, Executive Director (till 24.10.2014)

Mr. K. Venkataramanan, Executive Director (from 25.10.2014)

Mr. T. Radhakrishnan, Executive Director

Mr. N. S. Suryanarayanan, Company Secretary

4. Fellow Subsidiary :

Sunty LLC

TGBL GB Ltd.

Tata Starbucks Private Limited

Tata Global Beverages Australlia Pty Ltd.

Comparative figures relating to the previous year have been reclassified wherever necessary to conform to the classification adopted this year.


Mar 31, 2014

1. The Company has fled for merger of its wholly owned subsidiary Alliance Coffee Ltd with the Honourable High Court of Karnataka. Pending approval of the Scheme of merger, the corresponding scheme of entries have not been given effect in the current year standalone financial statements.

2. Disclosure Regarding Derivative Instruments:

i. The Company uses foreign currency hedges to manage its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecasted transactions. The Company does not use derivative instruments for speculative purposes.

ii. The following are outstanding Currency Option contracts and other Hedging instruments, which have been designated as Cash fow Hedges as per the provisions of Hedge Accounting in Accounting Standard -30.

The Foreign Currency exposures that are not hedged by a derivatives instrument or otherwise, aggregates to USD 8.125 million towards payable (Previous year USD 10.00 million) and USD 6.10 million (Previous year USD 5.60 million) towards receivables as at the Balance Sheet date.

3. Disclosure as per AS 15 - Retirement Benefits:

Post Retirement employee Benefits:

The Company operates defined contribution schemes like provident fund and defined contribution superannuation schemes. For these schemes contributions are made by the Company, based on current salaries, to the recognized funds maintained by the Company and for certain categories contributions are made to State Plans. In case of provident fund schemes, contributions are also made by employees. An amount of Rs.923.61 Lakhs (Previous year : Rs.759.37 Lakhs) has been charged to the Profit and Loss Statement towards defined contribution schemes.

a) Description of Plan:

i) Gratuity:

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

ii) Post retirement Benefits:

The Company''s Retired/Continuing Whole time Directors are eligible for certain post retirement defined benefits on meeting the eligibility criteria and subject to the approval of the Board.

iii) Post Retirement Medical Benefit:

The Company''s retired staff/sub-staff, Junior Officers and Management staffs are covered by a medical insurance policy. The Medical Insurance scheme is a defined benefit plan and is non-funded. Hence, there are no plan assets attributable to the obligation.

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

Rs. in lakhs Rs. in Lakhs

4. Contingent liabilities:

Estimated amounts of contracts remaining to be executed on capital 56.95 1,215.84 account and not provided for

Claims under adjudication not acknowledged as debts:

i) Demands raised by Income Tax, Excise & Sales Tax Authorities 1,434 1,588.95

ii) Labour disputes under adjudication 82.37 296.06

iii) Claims by Customers/Suppliers 637.24 1,647.41

iv) For Bank & other Guarantees 918.50 809.87

Names of related parties and description of relationship

1. Holding Company Tata Global Beverages Limited

2. Subsidiaries/ JVs Consolidated Coffee Inc., Eight O Clock Holdings Inc Eight O Clock Coffee Company Alliance Coffee Limited



3 Associates The Rising Beverages Company LLC (wound up during the year) RBC Hold Co. LLC

4 Key Management Personnel Mr.Hameed Huq, Managing Director

Mr M Deepak Kumar, Executive Director Mr T Radhakrishnan, Executive Director

5 Fellow Subsidiary/(s) OOO Sunty LLC TGBL GB Ltd Tata Starbucks Limited

Comparative figures relating to the previous year have been reclassified wherever necessary to conform to the classification adopted this year.


Mar 31, 2012

1.1. Disclosure Regarding Derivative Instruments:

i. The Company uses foreign currency hedges to manage its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecasted transactions. The Company does not use derivative instruments for speculative purposes.

ii. The following are outstanding Currency Option contracts and other Hedging instruments, which have been designated as Cash flow Hedges as per the provisions of Hedge Accounting in Accounting Standard -30.

The Foreign Currency exposures that are not hedged by a derivatives instrument or otherwise, aggregates to USD 4.75 million towards payable (Previous year USD 7.29 million towards receivable and USD 4.83 million and Euro 0.01 million towards payable) as at the Balance Sheet date.

1.2. Disclosure as per AS 15 - Retirement Benefits:

Post Retirement Employee Benefits:

The Company operates defined contribution schemes like provident fund and defined contribution superannuation schemes. For these schemes contributions are made by the company, based on current salaries, to the recognized funds maintained by the Company and for certain categories contributions are made to State Plans. In case of provident fund schemes, contributions are also made by employees. An amount of Rs 746.40 lakhs (Rs 652.30 lakhs) has been charged to the Profit and Loss Statement towards defined contribution schemes.

a) Description of Plan

i) Gratuity :

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

ii) Post Retirement Medical Benefit:

The Company's retired staff/sub-staff, Junior Officers and Management staffs are covered by a medical insurance policy. The Medical Insurance scheme is a defined benefit plan and is non-funded. Hence, there are no plan assets attributable to the obligation.

1.3 Rights issue of Partly Convertible Debentures

The Company had raised Rs 24,833.32 lakhs by way of Rights issue of Partly Convertible Debentures in 2006-07. Against this, the Company had utilized Rs 23,587.98 lakhs as per the Objects of the Issue. The balance amount of Rs 1,245.34 lakhs meant for projects have been used for reducing the Company's working capital borrowings and will made be available when needed for the projects.

As at As at 31st March, 2012 31st March, 2011

Rs.in Lakhs Rs. in Lakhs

1.4 Contingent Liabilities:

Estimated amounts of contracts remaining to be executed on capital 2,615.42 113.66 account and not provided for

Claims under adjudication not acknowledged as debts:

i) Demands raised by Income Tax, Excise & Sales Tax Authorities 1,505.42 999.65

ii) Labour disputes under adjudication 239.42 302.61

iii) Claims by Customers/ Suppliers 1,664.25 408.17

Contingent Liabilities:

i) Bank and other Guarantees 896.57 1,000.81

ii) Bills discounted - 137.36

Exchange difference in respect of forward exchange contracts to be - - charged or capitalised in the subsequent accounting period

1.5 Segmental Reporting

The Company's operations predominantly relate to Coffee and Other Produce comprising of growing of Coffee, Pepper, Tea and other plantation crops and conversion of Coffee into Value added products such as Roast and Ground Coffee and Instant Coffee. The Company is also in the business of Curing operations of Coffee and trading of items required for Coffee plantations. Accordingly the revenue from Coffee and Other produce, Trading and curing (others) comprise the primary basis of segmental information set out in these financial statements. Secondary segmental reporting is performed on the basis of geographical locations of the customers. The accounting principles consistently used for the preparation of Financial statements are also applied to record Income and Expenditure in individual segments. These are set out on the note as significant accounting policies. Fixed assets used in Company's business and liabilities contracted have been identified to the reportable segments. Inter unit transfers have been made at market prices.

# After considering impairment of Plant and Machinery of Rs Nil Lakhs (Previous Year Rs 226.17 Lakhs)

The previous year's figures are regrouped wherever necessary.

Geographical revenues are segregated based on the locations of the customers who are invoiced or in relation to which the revenues is otherwise recognised.

The Company's exports are made to two major geographical areas in the world. In India its home country the Company sells Coffee, Pepper, Tea, Roast, Ground Coffee and Instant Coffee. The Plantation and Manufacturing facilities of the Company are located in India.The Trading and Curing (others) are carried out exclusively in India.


Mar 31, 2011

1. a) Contingent Liabilities:

As at 31st As at 31st March, 2011 March, 2010 Rs. in Lakhs Rs. in Lakhs

i) Bank Guarantees 1,000.81 897.95

ii) Bills discounted 137.36 -

2. Micro enterprises and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined based on the confirmations received in response to intimation in this regard sent by the Company to the suppliers. Interest Accrued but not paid as at 31st March, 2011 is Rs 0.05 Lakhs (Previous Year Rs 0.07 Lakhs)

3. Segmental Reporting:

The Companys operations predominantly relate to Coffee & Other Produce comprising of growing of Coffee, Pepper, Tea and other plantation crops and conversion of Coffee into Value added products such as Roast and Ground Coffee and Instant Coffee. The Company is also in the business of Curing operations of Coffee and trading of items required for Coffee plantations. Accordingly the revenue from Coffee & Other produce, Trading and Curing (others) comprise the primary basis of segmental information set out in these financial statements. Secondary segmental reporting is performed on the basis of geographical locations of the customers.The accounting principles consistently used for the preparation of Financial statements are also applied to record Income and Expenditure in individual segments. These are set out on the note as significant accounting policies. Fixed assets used in Companys business and liabilities contracted have been identified to the reportable segments. Inter unit transfers have been made at market prices.

PRIMARY SEGMENT

Geographical revenues are segregated based on the locations of the customers who are invoiced or in relation to which the revenues is otherwise recognised. The Companys exports are made to two major geographical areas in the world. In India its home country the Company sells Coffee, Pepper, Tea, Roast, Ground Coffee and Instant Coffee. The Plantation and Manufacturing facilities of the Company are located in India. The Trading and Curing (others) are carried out exclusively in India.

Names of related parties and description of relationship

1. Holding Company Tata Global Beverages Limited

2. Subsidiaries/JVs Consolidated Coffee Inc., Eight OClock Coffee Company Alliance Coffee Limited Tata Coffee (Uganda) Ltd.

3 Key Management Personnel Mr. Hameed Huq, Managing Director Mr. M. Deepak Kumar, Executive Director (w.e.f. 25.10.2010)

4 Fellow Subsidiary Tata Russia (Grand JV) Tata Global Beverages Overseas Ltd.

The remuneration and commission to key management personnel is disclosed in Note No. B16 and B17 of Schedule No. 13

4. Comparative figures relating to the previous year have been reclassified wherever necessary to conform to the classification adopted this year.


Mar 31, 2010

A) Assets and Liabilities are recorded at cost to the Company.

b) Fixed Assets are stated at cost less depreciation. Interest on qualifying assets (i.e. Assets that take substantial time to be ready for intended use) is capitalized at the applicable borrowing cost on the funds used for acquiring such assets. Roll over charges, and exchange differences, relating to foreign currency borrowings attributable to Fixed Assets are capitalized upto 31.03.2007 and charged to P&L Account afterwards. The Fixed assets are tested for impairment and wherever required, provision is made.

c) Investments of long-term nature are stated at cost. A provision for diminution in value is made to recognize a decline, other than temporary. Current investments are stated at lower of cost and market value.

d) Valuation of Stock is dealt as under: -

1. Disclosure regarding Derivative instruments :

(i) The Company uses foreign currency hedges to manage its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecasted transactions. The Company does not use derivative instruments for speculative purposes.

Against the Mark to Market loss of Rs. 1232.55 (Previous Year 5883.45 lakhs) a sum of Rs. 226.08 lakhs (Previous year 727.89 lakhs) has been recognized in the Profit & Loss account and Rs. 1006.45 lakhs (Previous year 5155.56 lakhs) has been debited to the Hedging Reserve account as per the provisions of Hedge Accounting cf Accounting Standard - 30.

The Foreign Currency exposures that are not hedged by a derivatives instrument or otherwise, aggregates to USD 0.050 million (Previous year Euro 0.506 million) payable as at the Balance Sheet date.

2. Rights issue of Partly Convertible Debentures

The Company had raised Rs.24,833.32 lakhs by way of Rights issue of Partly Convertible Debentures in 2006-07. Against this, the Company had utilized Rs.23,587.98 lakhs as per the Objects of the Issue. The balance amount of Rs.1,245.34 lakhs meant for projects have been used for reducing the Companys working capital borrowings and will made be available when needed for the projects.

3. Disclosure as per AS 15 - Retirement Benefits: Post Retirement Employee Benefits :

a) Description of Plan

i) Gratuity

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

ii) Post Retirement Medical Benefit:

The Companys retired staff/sub-staff, Junior Officers and Management staffs are covered by a medical insurance policy. The Medical Insurance scheme is a defined benefit plan and is non-funded. Hence, there are no plan assets attributable to the obligation.

iii) Pension:

The Companys retired Management Staffs pension, except periodicaljncreases, are met through annuity issued by LIC of India. The pension increase component which has become applicable from the current year onwards, is a non-funded scheme and hence there are no plan assets attributable to the obligation.

4. Segmental Reporting:

The Companys operations predominantly relate to Coffee & Other Produce comprising of growing of Coffee, Pepper, Tea and other plantation crops and conversion of Coffee into Value added products such as Roast and Ground Coffee and Instant Coffee. The Company is also in the business of Curing operations of Coffee and trading of items required for Coffee plantations. Accordingly, the revenue from Coffee & Other produce, Trading and curing (others) comprise the primary basis of segmental information set out in these financial statements. Secondary segmental reporting is performed on the basis of geographical locations of the customers. The accounting principles consistently used for the preparation of Financial statements are also consistently applied to record Income and Expenditure in individual segments. These are set out on the note as significant accounting policies. Fixed assets used in Companys business and liabilities contracted have been identified to the reportable segments. Inter unit transfers have been made at market prices and has been consistently followed.

Geographical revenues are segregated based on the locations of the customers who are invoiced or in relation to which the revenues is otherwise recognised. The Companys exports are made to two major geographical areas in the world. In India its home country the Company sells Coffee, Pepper, Tea, Roast, Ground Coffee and Instant Coffee. The Plantation and Manufacturing facilities of the Company are located in India. The Trading and Curing (others) are carried out exclusively in India.

The remuneration and commission to key management personnel is disclosed in Note No. B17 and B18 of Schedule No. 12 22. Comparative figures relating to the previous year have been reclassified wherever necessary to conform to the classification adopted this year.

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