Notes to Accounts of Tyroon Tea Company Ltd.

Mar 31, 2015

1. The Company has only one class of equity shares having a par value of R 10/- each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the shareholers are eligible to receive the remaining assets of the company, after distribution of all the preferential amounts, in proportion of their shareholding.

2. There is no movement in the number of shares outstanding at the beginning and at the end of the reporting period.

3. Term Loans from Banks are secured by hypothecation of crops, entire stocks, book debts and other current assets and Plant and Machineries, both present and future and equitable mortgage of Leasehold Land at Garden by deposit of Title Deeds and guaranteed by Srikrishna Arjun Trading & Investment Co. Private Limited and personal guarantee of two person, one of them is a Director. Term Loan carries interest of Base rate 5% and is repayable during the financial year 2015-2016.

4. Vehicle Loan is secured by hypothecation of vehicles acquired under Car Loan Scheme. Repayment details of Vehicle Finance Loan from Bank outstanding as on 31st March 2015 and repayable during the financial year 2015-2016.

5. The above loans are secured by hypothecation of crops, entire stocks, book debts and other current assets and Plant and machineries, both present and future and equitable mortgage of Leasedhold Land at Garden by deposit of Title Deeds and guaranteed by Srikrishna Arjun Trading & Investment Co. Private Limited and personal guarantee of two persons, one of them is a Director.

6. To the extent identified, the Company has no information from the suppliers under the Micro, Small and Medium Enterprise Development Act, 2006 and accordingly the disclosure as acquired in Section 22 of the said Act is not applicable.

7. Market quotation in respect of non traded shares are not available since long, therefore the market value of these investments has not been stated

8. The Company's investments of Rs. 14,000,000 in certain Non-Cumulative Redeemable Preference Shares in group/associated companies are strategic in nature. Considering the long term involvement and the intrinsic values of these companies, these investments have been carried at cost and based on the valuation by Independant experts, no provision is considered necessary in this respect.

9. Particulars of Investments as required in terms of Section 186(4) of the Companies Act, 2013 have been disclosed under Note No. 11 and 15.

10. Rs. 75,00,000 (Previous year Rs. 87,00,000/-) included under loans to others as above and Rs. 12,00,000 shown under loans and advances (Note 19) are being repaid in terms of the Order received from The Hon'ble High Court at Calcutta. Further, in terms of the said order interest of Rs. 96,96,000 accrued in earlier years on the above loan and shown under other non current assets (Note No. 14) is recoverable as per the settlement to be arrived at with the borrower. In view of the above, the amount outstanding in respect of Loans and interest thereon have been considered good and recoverable by the Management.

11. Represents loan granted for their business purposes.

a. Current Income tax has been computed considering that the benefits available under section 80I E of Income Tax Act, 1961 on substantial expansion is available on the entire profit and provision for tax has been made accordingly.

b. Current tax includes Rs. NIL (Previous year Rs. 15,79,725/-) of agricultural income tax payable under the Assam Agricultural Income Tax, 1939.

12. Contingent Liabilities and commitments (to the extent not provided for)

13. Commitments

Estimated amount of contract remaining to be executed on capital account (net of advance of Rs. 1,50,000/-) Rs. 1,79,550/- (Previous year Rs. NIL).

14. The Company has has no pending litigation with respect to claim against the company and proceedings pending with tax/statutory/Government Authorities.

15. Related Party disclosures as identified by the management in accordance with the Accounting Standard 18

List of related parties

a. Associates Srikrishna Arjun Trading & Investment Co. (P) Ltd.

b. Directors / Relatives having significant influence, directly or indirectly Mr. A. K. Jalan (Relative Director)

Mr. S. P. Jalan (Relative of Director)

Mr. Anirudha Jalan ( Director)

Mrs. Indra Jalan (Director)

c. Enterprises where Directors and relatives have significant influence Creative Services (P) Ltd.

Hasimara Industries Ltd.

James Alexander & Co. Ltd.

I. In respect of the above parties, there is no provision for doubtful debts as on 31.3.2015 and no amount has been written off or written back during the year in respect of debts due from/to them.

II. The above related party information is as identified by the management and relied upon by the auditors.

16. In the opinion of the Board, the assets other than fixed assets and non-current investments have a value on reaslisation in the ordinary course of business at least equal to the amount at which they are stated.

Defined Benefit Scheme :

The present value of obligation is determined based on actuarial valuation using the projected unit Credit, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to built up the final obligation.

a. Assumption relating to future salary increases, attrition, interest rate for discount & overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled.

17. The Company's main business is growing and manufacturing Tea. As such there is no separate reportable segments as per the Accounting Standard 17 "Segment reporting". Further, as the Company operates entirely in India, no secondary segment has been identified.

18. Previous year figures has been regrouped / reclassified to conform with current year presentation, wherever considered necessary.

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Mar 31, 2014

1.1 The Company has only one class of equity shares having a par value of 10/- each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the shareholers are eligible to receive the remaining assets of the company, after distribution of all the preferential amounts, in proportion of their shareholding. During the year ended 31st March 2014, Board of Directors have proposed a dividend of 1 per share, as distribution to equity shareholders. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing annual general meeting.

1.2 There is no movement in the number of shares outstanding at the beginning and at the end of the reporting period.

2.1 Market quotation in respect of non traded shares are not available since long, therefore the market value of these investments has not been stated

2.2 The decline in the market value of long term investments to the extent of 15,97,439/- (Previous year 19,02,300/-) in respect of actively traded securities has been considered to be temporary in nature and accordingly provision for such decline has not been considered necessary by the Management.

2.3. The Company''s investments of 2,00,00,000 in certain Non-Cumulative Redeemable Preference Shares and Long Term loans and advances of 1,75,00,000 (Note 13) in group/associated companies are strategic in nature. Considering the long term involvement and the intrinsic values of these companies, these investments and balances have been considered good and fully recoverable.

2.4 Consequent upon amalgamation of JSW Ispat Steel Ltd. with JSW Steel Ltd. the Company has received 41 Equity Shares of 10/- each of JSW Steel Limited.

3.1 87,00,000 (Previous year 1,08,00,000/-) included under loans to others as above and 12,00,000 shown under loans and advances (Note 19) are being repaid in terms of the Order received from The Hon''ble High Court at Calcutta. Further, in terms of the said order interest of 96,96,000 accrued in earlier years on the above loan and shown under other non current assets (Note No. 14) is recoverable as per the settlement to be arrived at with the borrower. In view of the above, the amount outstanding in respect of Loans and interest thereon have been considered good and recoverable by the Management.

4. RELATED PARTY DISCLOSURES required by Accounting Standard 18 "Related Party Disclosure" as specified in the Companies (Accounting Standard Rules, 2006 prescribed by the Central Government are as follows :

List of related parties a. Associates

Srikrishna Arjun Trading & Investment Co. (P) Ltd.

b. Directors / Relatives having significant influence, directly or indirectly

Mr. A. K. Jalan (Director)

Mr. S. P. Jalan (Relative of Director)

Mr. Anirudha Jalan (Relative of Director)

c. Enterprises where Directors and relatives have significant influence

Creative Services (P) Ltd. Hasimara Industries Ltd. James Alexander & Co. Ltd.

5. DISCLOSURE UNDER ACCOUNTING STANDARD - 15

EMPLOYEE BENEFITS

The disclosure required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below :

Defined Benefit Scheme :

The present value of obligation is determined based on actuarial valuation using the projected unit Credit, which recognises each period of service as giving rise to additional unit employee benefit entitlement and measures each unit separately to built up the final obligation.

6. The Company''s main business is growing and manufacturing Tea. As such there is no separate reportable segments as per the Accounting Standard 17 "Segment reporting". Further, as the Company operates entirely in India, no secondary segment has been identified.

7. Previous year figures has been regrouped / reclassified to conform with current year presentation, wherever considered necessary.

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Mar 31, 2013

1. The Company''s main business is growing and manufacturing Tea. As such there is no separate reportable segments as per the Accounting Standard 17 "Segment reporting". Further, as the Company operates entirely in India, no secondary segment has been identified.

2. Previous year figures has been regrouped / reclassified to conform with current year presentation, wherever considered necessary.

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Mar 31, 2012

Note :

a. Term Loans are secured by hypothecation of crops, entire stocks, book debts and other current assets and Plant and machinery, both present and future and equitable mortgage of Leasedh old Land at Garden by deposit of Title Deeds and guaranteed by Srikrishna Arjun Trading & Investment Co. Private Limited and personal guarantee of one of the Directors.

b. Vehicle Loan is secured by hypothecation of vehicles acquired under Car Loan Scheme.

1. DEFERRED TAX LIABILITIES (NET)

In accordance with Accounting Standard - 22 Accounting for Taxes on Income the Company has accounted for deferred tax. The tax authorities have disputed the claims made by the Company seeking tax benefits on non moving interest receivable. Further interest to the extent not provided in the books as the possibility of recoverability being doubtful has also been added in various assessment years while computing taxable income by the tax authorities. As a matter is at various stages of dispute with tax authorities neither deferred tax assets nor tax assets nor deferred tax liability has been considered in this respect. Considerable amount of gratuity provided in the books has remained unpaid. In the absence of any future plan of payment Deferred tax Assets in this respect has been considered only to the extent of Deferred Tax Liability.

Note :

The above loans are secured by hypothecation of crops, entire stocks, book debts and other current assets and Plant and machinery, both present and future and equitable mortgage of Leased hold Land at Garden by deposit of Title Deeds and guaranteed by Srikrishna Arjun Trading & Investment Co. Private Limited and personal guarantee of one of the Directors.

Note :

The Company is in the process of compiling information with regards to suppliers covered under Micro, Small and Medium Enterprise Development Act, 2006. To the extent indentified, the Company has no information from the suppliers under the Act and accordingly the disclosure as acquired in Section 22 of the said Act could not be given in said accounts.

Note :

a. Market quotation in respect of non traded shares are not available since long, therefore the market value of these investments has not been stated

b. The decline in the market value of long term investments to the extent of Rs. 15,89,526 (Previous year Rs. 15,51,760/-) in respect of actively traded securities has been considered to be temporary in nature and accordingly provision for such decline has not been considered necessary by the Management.

c. The Company's investments of Rs. 2,00,00,000 in certain Non-Cumulative Redeemable Preference Shares and loans and advances of Rs. 1,50,00,000 in group/associates companies are strategic in nature. Considering the long term involvement and the intrinsic values of these companies, these investments and balances have been considered good and fully recoverable.

Note :

Loans of Rs. 2,23,71,813/- (including interest amounting to Rs. 1,03,71,813/-) recoverable from certain parties which have become overdue. The Company has filed suits for the recovery of the loan amounts together with interest due. Interest on these loans considering the uncertainty as to the realisation will be accounted for as and when realised/settled.

b. Electricity charges are being provided as per the bill raised by CESC Ltd. The amount receivable from CESC Ltd. on account of excess electricity charges for the earlier years will be recognised as and when adjusted in future bills.

c. Expenditure in Foreign currency Travelling Expenses

Note :

a. Current tax has been computed considering that the benefits available under section 80I E of Income Tax Act, 1961 on substantial expansion is available on the entire profit. Accordingly, no tax has been considered under current tax.

b. Current tax includes Rs. 2,28,070/- (Previous year Rs. 37,86,381/-) of agricultural income tax payable under the Assam Agricultural Income Tax, 1939.

Figures in bracket represents previous year's amount

Note :

I. In respect of the above parties, there is no provision for doubtful debts as on 31.3.2012 and no amount has been written off or written back during the year in respect of debts due from / to them.

II. The above related party information is as identified by the management and relied upon by the auditors.

III. There are no transaction with Associate Company.

Notes :

Assumption relating to future salary increases, attrition, interest rate for discount & overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled.

2. The Company's main business is growing and manufacturing Tea. As such there is no separate reportable segments as per the Accounting Standard 17 Segment reporting. Further, as the Company operates entirely in India, no secondary segment has been identified.

3. Previous year figures has been regrouped / reclassified to conform with current year presentation, wherever considered necessary.

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Mar 31, 2010

As on 31.03.10 As on 31.03.09

1. Capital commitment Rs. 3,47,500 Rs. 49,766

2. In respect of 4995.07 bighas of land acquired by Assam Government under the Land Ceiling Act, the Company received an ad-hoc payment of Rs.15,200 as the compensation. Pending ascertainment of the overall compensation to be received as well as cost of such undeveloped Land acquired out of total 11,829 bighas of land included under the Land (Leasehold) and Development, the said compensation remains included in liabilities ami necessary adjustment in respect of cost of land and profit/loss on such acquisition, if any has not been considered.

3. Certain balances under current liabilities, sundry debtors and advances are subject to confirmation and reconciliation thereof.

4. Loans and Advances include (a) Loan of Rs. 3,76,55,603/- (including interest amounting to Rs. 1,25,55,683) recoverable from certain parties which have become overdue. The Company has filed suits for the recovery of the loan amounts together with interest due. Interest on these loans considering the uncertainty as to the realisation will be accounted for as and when realised/settled, (b) Overdue Loan of Rs. 47,74,290 (including interest amounting to Rs.22,74,290) recoverable from a body corporate for which persuasive and other steps have been taken for recovery and in the opinion of the Management no provision is necessary in this regard. However, considering uncertainty as to realization, interest amounting to Rs. 15,54,000 due from a Company (including Rs. 12,54,000 due for previous year) as mentioned in (b) above has not been recognised in the accounts.

5. Cash Credit loans are secured by hypothecation of crops, entire stocks, book debts and other current assets and Plant & machinery, both present and future and equitable mortgage of Leasehold Land at Garden by deposit of Title Deeds and guaranteed by Srikrishna Arjun Trading & Investment Co. Private Limited and personal guarantee of one of the Director). However the positive balance there against has been included in cash and bank balance account.

6. (i) Current income tax has been computed considering that the benefits available under 80IE of Income Tax Act, 1961 on substantial expansion is available on the entire profit. Accordingly no tax has been considered under same and provision of Minimum Alternate Tax (MAT) has been included under "current tax. Further, while computing the MAT certain adjustments have been considered based on an opinion received by the Company.

(ii) Current tax includes Rs. 8,58,000 of agricultural income tax payable under the Assam Agricultural Income Tax, 1939.

7, In accordance with Accounting Standard - 22 "Accounting for Taxes on Income" the Company has accounted for deferred tax. The tax authorities have disputed the claims made by the company seeking tax benefit on non moving interest receivable. Further interest to the extent not provided in the books as the possibility of recoverability being doubtful has also been added in various assessment years while computing taxable income by the tax authorities. As the matter is at various stages of dispute with tax authorities neither ¦¦¦¦ deferred tax assets nor deferred tax liability has been considered in this respect, Considerable amount of gratuity provided in the books has remained unpaid. In the absence of any future plan of payment Deferred tax Assets in this respect has been considered only to the extent of Deferred Tax Liability.

8. The decline in the market value of long term investments lo the extent of Rs. 8,65,427 (Rs. 20,57,426) in respect of actively traded securities has been considered to be temporary in nature and accordingly provision for such decline has not been considered necessary by the Management.

9. The Companys investment of Rs. 2,00,00,000 in certain Non-Cumulative Redeemable Preference Shares and Loans & Advances of Rs. 1,71,70,000 in group/associated companies are strategic in nature. Considering the long term involvement and the intrinsic values of these companies, these investments and balances have been considered good and fully recoverable.

10. Total salaries, wages and bonus included under various heads of accounts Rs. 5,97,91,256/- (Rs. 4,47,54,782)

11. Stores and spare parts consumed (all indigenous) included under various heads of accounts Rs. 1,33;80,152/- (Rs. 1,07,24,110).

12. The Company is in the.process of compiling information with regards to suppliers covered under Micro, Small and Medium Enterprise Development Act, 2006. To the extent identified, the Company has no information from the suppliers under the Act and accordingly the disclosure as acquired in Section 22 of the said Act could not be given in said account.

13. Employee Benefits

The disclosure required under Accounting Standard 15 "Employee Benefits notified in the Companies (Accounting Standards) Rules 2006 are given below :

b) Defined Benefit Scheme

The,present value of obligation is determined based on aciurial valuation using the projected unit Credit, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement anqi measures each unit separately to built up the final obligation.

14. Electricity charges are being provided as per the bill raised by CESC Ltd. The amount receivable from CESC Ltd. on account of excess electricity charges for the earlier years wil be recognised as and when adjusted in future bills.

15. The Companys main business is growing and manufacturing Tea. As such there is no separate reportable segments as per the Accounting Standard 17 " Segment reporting". Further, as the company operates entirety in India no secondary segment has been identified.

16. Related party disclosure as identified by the Management in accordance with the Accounting Standard 18 "Related Party Disclosure" are as given below : -

A. List of related Parties :

i. Companies where control exists None

ii. Associates Srikrishna Arjun Trading & Investment Co. (P) Ltd.

iH. Directors/Relatives having

significant influence, directly or Mr. A. K. Jalan (Director)

indirectly Mr. S. P. Jalan (Relative of Director)

iv. Enterprises where Directors and Creative Services (P) Ltd.

relatives have Significant influence Hasimara Industries Ltd.

James Alexander & Co. Ltd.

17. Expenditure and Income in foreign Currency :

a. Travelling Expenses Rs. 74,511 (Rs. 1,70,896)

b. Income in Foreign Currency : NIL

18. Previous years figures have been re-arranged and / or regrouped wherever considered necessary. Nolo : All figures given in brackets are for the previous year unless otherwise stated.