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Notes to Accounts of Harrisons Malayalam Ltd.

Mar 31, 2023

Terms and rights attached to equity shares

1 The Company has only one class of shares referred to as equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

2 The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors does not propose any dividend during the current year. No dividend was declared in the preceding year.

3 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserve

a. Securities premium is used to record premium received on issues of shares. It is utilised in accordance with provisions of the Act.

b. General reserve is created out of profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up shares.

c. Retained earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend. It is utilised in accordance with the provisions of the Act.

d. Other comprehensive income represents fair value recognition and measurement of equity instruments through other comprehensive income.

Fair value measurement

The Company has an established control framework with respect to the measurement of fair values. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is required, the Company assesses the evidence obtained by the third parties to support the conclusions that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

a. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

b. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

c. Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The carrying amounts of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables are considered to be the same as their fair values, due to their short-term nature

Note 26: Segment reporting

The business of the Company mainly comprises of investments, which has been identified as a single reportable segment for the purpose of Ind AS 108 on ''Operating Segments''.

Note 29: Financial risk management

The Company is a core investment company which invests primarily into its group companies. On account of its business activities it is exposed to various financial risks associated with financials products such as credit or default risk, market risk, interest rate risk, liquidity risk and inflationary risk. However, the Company has a robust financial risk management system in place to identify, evaluate, manage and mitigate various risks associated with its financial products to ensure that desired financial objectives are met. The Company''s senior management is responsible for establishing and monitoring the risk management framework within its overall risk management objectives and strategies. Such risk management strategies and objectives are established to identify and analyse potential risks faced by the Company, set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and assess risk management performance.

(a) Credit risk:

This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation where a particular bond issuer is unable to make the expected principal payments, interest rate payments,or both. Similarly, a lender bears the risk that the borrower may default in the payment of contractual interest or principal on its debt obligations, or both. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Risk concentration is minimized by investing in highly rated, investment grade bonds and debt instruments, which has the least risk of default. The Company lends to borrowers with a good credit score. These investments and loans are reviewed by the Board of Directors on a regular basis.

(b) Market risk:

Market risk is a form of systematic risk associated with the day-to-day fluctuation in the market prices of shares and securities and such market risk affects all securities and investors in the same manner.These daily price fluctuations follows its own broad trends and cycles and are more news and transaction driven rather than fundamentals and many a times, it may affect the returns from an investment. Market risks majorly comprises of two types -interest rate risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risks include borrowings and investments.

(i) Price risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in equity instruments, bonds, mutual funds etc. The Company is exposed to price risk arising mainly from investments carried at fair value through FVTPL or FVOCI which are valued using quoted prices in active markets (level 1 investments). A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:

(c) Liquidity risk:

Liquidity refers to the readiness of the Company to sell and realise its financial assets. Liquidity risk is one of the most critical risk factors for Companies which is into the business of investments in shares and securities. It is the risk of not being able to realise the true price of a financial asset, or is not being able to sell the financial asset at all because of non-availability of buyers. Unwillingness to lend or restricted lending by Banks and Financial Institutions may also lead to liquidity concerns for the entities. The Company maintains a well-diversified portfolio of investments in shares and securities which are saleable at any given point of time. A dedicated team of market experts are monitoring the markets on a continuous basis, which advises the management for timely purchase or sale of securities. The Company is currently having a mix of both short-term and long-term investments. The management ensures to manage it''s cash flows and asset liability patterns to ensure that the financial obligations are satisfied in timely manner.

The following table shows the remaining contractual maturities of financial liabilities at the reporting date.

Note:30 Capital management

For the purpose of Company''s capital management, capital includes issued equity share capital, other equity reserves and borrowed capital less cash and cash equivalents. The primary objective of capital management is to maintain an efficient capital structure to reduce the cost of capital, support corporate expansion strategies and to maximize shareholder''s value.The entity 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 entity may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The entity monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Theentity''s policy is to keep an optimum gearing ratio. The entity includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.

Note 32: Previous year figures have been regrouped / reclassified wherever necessary to suit current year layout.


Mar 31, 2023

Terms and rights attached to equity shares

1 The Company has only one class of shares referred to as equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

2 The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors does not propose any dividend during the current year. No dividend was declared in the preceding year.

3 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserve

a. Securities premium is used to record premium received on issues of shares. It is utilised in accordance with provisions of the Act.

b. General reserve is created out of profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up shares.

c. Retained earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend. It is utilised in accordance with the provisions of the Act.

d. Other comprehensive income represents fair value recognition and measurement of equity instruments through other comprehensive income.

Fair value measurement

The Company has an established control framework with respect to the measurement of fair values. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is required, the Company assesses the evidence obtained by the third parties to support the conclusions that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

a. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

b. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

c. Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The carrying amounts of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables are considered to be the same as their fair values, due to their short-term nature

Note 26: Segment reporting

The business of the Company mainly comprises of investments, which has been identified as a single reportable segment for the purpose of Ind AS 108 on ''Operating Segments''.

Note 29: Financial risk management

The Company is a core investment company which invests primarily into its group companies. On account of its business activities it is exposed to various financial risks associated with financials products such as credit or default risk, market risk, interest rate risk, liquidity risk and inflationary risk. However, the Company has a robust financial risk management system in place to identify, evaluate, manage and mitigate various risks associated with its financial products to ensure that desired financial objectives are met. The Company''s senior management is responsible for establishing and monitoring the risk management framework within its overall risk management objectives and strategies. Such risk management strategies and objectives are established to identify and analyse potential risks faced by the Company, set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and assess risk management performance.

(a) Credit risk:

This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation where a particular bond issuer is unable to make the expected principal payments, interest rate payments,or both. Similarly, a lender bears the risk that the borrower may default in the payment of contractual interest or principal on its debt obligations, or both. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Risk concentration is minimized by investing in highly rated, investment grade bonds and debt instruments, which has the least risk of default. The Company lends to borrowers with a good credit score. These investments and loans are reviewed by the Board of Directors on a regular basis.

(b) Market risk:

Market risk is a form of systematic risk associated with the day-to-day fluctuation in the market prices of shares and securities and such market risk affects all securities and investors in the same manner.These daily price fluctuations follows its own broad trends and cycles and are more news and transaction driven rather than fundamentals and many a times, it may affect the returns from an investment. Market risks majorly comprises of two types -interest rate risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risks include borrowings and investments.

(i) Price risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in equity instruments, bonds, mutual funds etc. The Company is exposed to price risk arising mainly from investments carried at fair value through FVTPL or FVOCI which are valued using quoted prices in active markets (level 1 investments). A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:

(c) Liquidity risk:

Liquidity refers to the readiness of the Company to sell and realise its financial assets. Liquidity risk is one of the most critical risk factors for Companies which is into the business of investments in shares and securities. It is the risk of not being able to realise the true price of a financial asset, or is not being able to sell the financial asset at all because of non-availability of buyers. Unwillingness to lend or restricted lending by Banks and Financial Institutions may also lead to liquidity concerns for the entities. The Company maintains a well-diversified portfolio of investments in shares and securities which are saleable at any given point of time. A dedicated team of market experts are monitoring the markets on a continuous basis, which advises the management for timely purchase or sale of securities. The Company is currently having a mix of both short-term and long-term investments. The management ensures to manage it''s cash flows and asset liability patterns to ensure that the financial obligations are satisfied in timely manner.

The following table shows the remaining contractual maturities of financial liabilities at the reporting date.

Note:30 Capital management

For the purpose of Company''s capital management, capital includes issued equity share capital, other equity reserves and borrowed capital less cash and cash equivalents. The primary objective of capital management is to maintain an efficient capital structure to reduce the cost of capital, support corporate expansion strategies and to maximize shareholder''s value.The entity 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 entity may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The entity monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Theentity''s policy is to keep an optimum gearing ratio. The entity includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.

Note 32: Previous year figures have been regrouped / reclassified wherever necessary to suit current year layout.


Mar 31, 2023

Terms and rights attached to equity shares

1 The Company has only one class of shares referred to as equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

2 The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors does not propose any dividend during the current year. No dividend was declared in the preceding year.

3 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserve

a. Securities premium is used to record premium received on issues of shares. It is utilised in accordance with provisions of the Act.

b. General reserve is created out of profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up shares.

c. Retained earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend. It is utilised in accordance with the provisions of the Act.

d. Other comprehensive income represents fair value recognition and measurement of equity instruments through other comprehensive income.

Fair value measurement

The Company has an established control framework with respect to the measurement of fair values. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is required, the Company assesses the evidence obtained by the third parties to support the conclusions that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

a. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

b. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

c. Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The carrying amounts of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables are considered to be the same as their fair values, due to their short-term nature

Note 26: Segment reporting

The business of the Company mainly comprises of investments, which has been identified as a single reportable segment for the purpose of Ind AS 108 on ''Operating Segments''.

Note 29: Financial risk management

The Company is a core investment company which invests primarily into its group companies. On account of its business activities it is exposed to various financial risks associated with financials products such as credit or default risk, market risk, interest rate risk, liquidity risk and inflationary risk. However, the Company has a robust financial risk management system in place to identify, evaluate, manage and mitigate various risks associated with its financial products to ensure that desired financial objectives are met. The Company''s senior management is responsible for establishing and monitoring the risk management framework within its overall risk management objectives and strategies. Such risk management strategies and objectives are established to identify and analyse potential risks faced by the Company, set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and assess risk management performance.

(a) Credit risk:

This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation where a particular bond issuer is unable to make the expected principal payments, interest rate payments,or both. Similarly, a lender bears the risk that the borrower may default in the payment of contractual interest or principal on its debt obligations, or both. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Risk concentration is minimized by investing in highly rated, investment grade bonds and debt instruments, which has the least risk of default. The Company lends to borrowers with a good credit score. These investments and loans are reviewed by the Board of Directors on a regular basis.

(b) Market risk:

Market risk is a form of systematic risk associated with the day-to-day fluctuation in the market prices of shares and securities and such market risk affects all securities and investors in the same manner.These daily price fluctuations follows its own broad trends and cycles and are more news and transaction driven rather than fundamentals and many a times, it may affect the returns from an investment. Market risks majorly comprises of two types -interest rate risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risks include borrowings and investments.

(i) Price risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in equity instruments, bonds, mutual funds etc. The Company is exposed to price risk arising mainly from investments carried at fair value through FVTPL or FVOCI which are valued using quoted prices in active markets (level 1 investments). A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:

(c) Liquidity risk:

Liquidity refers to the readiness of the Company to sell and realise its financial assets. Liquidity risk is one of the most critical risk factors for Companies which is into the business of investments in shares and securities. It is the risk of not being able to realise the true price of a financial asset, or is not being able to sell the financial asset at all because of non-availability of buyers. Unwillingness to lend or restricted lending by Banks and Financial Institutions may also lead to liquidity concerns for the entities. The Company maintains a well-diversified portfolio of investments in shares and securities which are saleable at any given point of time. A dedicated team of market experts are monitoring the markets on a continuous basis, which advises the management for timely purchase or sale of securities. The Company is currently having a mix of both short-term and long-term investments. The management ensures to manage it''s cash flows and asset liability patterns to ensure that the financial obligations are satisfied in timely manner.

The following table shows the remaining contractual maturities of financial liabilities at the reporting date.

Note:30 Capital management

For the purpose of Company''s capital management, capital includes issued equity share capital, other equity reserves and borrowed capital less cash and cash equivalents. The primary objective of capital management is to maintain an efficient capital structure to reduce the cost of capital, support corporate expansion strategies and to maximize shareholder''s value.The entity 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 entity may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The entity monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Theentity''s policy is to keep an optimum gearing ratio. The entity includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.

Note 32: Previous year figures have been regrouped / reclassified wherever necessary to suit current year layout.


Mar 31, 2023

Terms and rights attached to equity shares

1 The Company has only one class of shares referred to as equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

2 The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors does not propose any dividend during the current year. No dividend was declared in the preceding year.

3 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserve

a. Securities premium is used to record premium received on issues of shares. It is utilised in accordance with provisions of the Act.

b. General reserve is created out of profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up shares.

c. Retained earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend. It is utilised in accordance with the provisions of the Act.

d. Other comprehensive income represents fair value recognition and measurement of equity instruments through other comprehensive income.

Fair value measurement

The Company has an established control framework with respect to the measurement of fair values. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is required, the Company assesses the evidence obtained by the third parties to support the conclusions that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

a. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

b. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

c. Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The carrying amounts of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables are considered to be the same as their fair values, due to their short-term nature

Note 26: Segment reporting

The business of the Company mainly comprises of investments, which has been identified as a single reportable segment for the purpose of Ind AS 108 on ''Operating Segments''.

Note 29: Financial risk management

The Company is a core investment company which invests primarily into its group companies. On account of its business activities it is exposed to various financial risks associated with financials products such as credit or default risk, market risk, interest rate risk, liquidity risk and inflationary risk. However, the Company has a robust financial risk management system in place to identify, evaluate, manage and mitigate various risks associated with its financial products to ensure that desired financial objectives are met. The Company''s senior management is responsible for establishing and monitoring the risk management framework within its overall risk management objectives and strategies. Such risk management strategies and objectives are established to identify and analyse potential risks faced by the Company, set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and assess risk management performance.

(a) Credit risk:

This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation where a particular bond issuer is unable to make the expected principal payments, interest rate payments,or both. Similarly, a lender bears the risk that the borrower may default in the payment of contractual interest or principal on its debt obligations, or both. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Risk concentration is minimized by investing in highly rated, investment grade bonds and debt instruments, which has the least risk of default. The Company lends to borrowers with a good credit score. These investments and loans are reviewed by the Board of Directors on a regular basis.

(b) Market risk:

Market risk is a form of systematic risk associated with the day-to-day fluctuation in the market prices of shares and securities and such market risk affects all securities and investors in the same manner.These daily price fluctuations follows its own broad trends and cycles and are more news and transaction driven rather than fundamentals and many a times, it may affect the returns from an investment. Market risks majorly comprises of two types -interest rate risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risks include borrowings and investments.

(i) Price risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in equity instruments, bonds, mutual funds etc. The Company is exposed to price risk arising mainly from investments carried at fair value through FVTPL or FVOCI which are valued using quoted prices in active markets (level 1 investments). A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:

(c) Liquidity risk:

Liquidity refers to the readiness of the Company to sell and realise its financial assets. Liquidity risk is one of the most critical risk factors for Companies which is into the business of investments in shares and securities. It is the risk of not being able to realise the true price of a financial asset, or is not being able to sell the financial asset at all because of non-availability of buyers. Unwillingness to lend or restricted lending by Banks and Financial Institutions may also lead to liquidity concerns for the entities. The Company maintains a well-diversified portfolio of investments in shares and securities which are saleable at any given point of time. A dedicated team of market experts are monitoring the markets on a continuous basis, which advises the management for timely purchase or sale of securities. The Company is currently having a mix of both short-term and long-term investments. The management ensures to manage it''s cash flows and asset liability patterns to ensure that the financial obligations are satisfied in timely manner.

The following table shows the remaining contractual maturities of financial liabilities at the reporting date.

Note:30 Capital management

For the purpose of Company''s capital management, capital includes issued equity share capital, other equity reserves and borrowed capital less cash and cash equivalents. The primary objective of capital management is to maintain an efficient capital structure to reduce the cost of capital, support corporate expansion strategies and to maximize shareholder''s value.The entity 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 entity may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The entity monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Theentity''s policy is to keep an optimum gearing ratio. The entity includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.

Note 32: Previous year figures have been regrouped / reclassified wherever necessary to suit current year layout.


Mar 31, 2023

Terms and rights attached to equity shares

1 The Company has only one class of shares referred to as equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

2 The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors does not propose any dividend during the current year. No dividend was declared in the preceding year.

3 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserve

a. Securities premium is used to record premium received on issues of shares. It is utilised in accordance with provisions of the Act.

b. General reserve is created out of profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up shares.

c. Retained earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend. It is utilised in accordance with the provisions of the Act.

d. Other comprehensive income represents fair value recognition and measurement of equity instruments through other comprehensive income.

Fair value measurement

The Company has an established control framework with respect to the measurement of fair values. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is required, the Company assesses the evidence obtained by the third parties to support the conclusions that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

a. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

b. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

c. Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The carrying amounts of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables are considered to be the same as their fair values, due to their short-term nature

Note 26: Segment reporting

The business of the Company mainly comprises of investments, which has been identified as a single reportable segment for the purpose of Ind AS 108 on ''Operating Segments''.

Note 29: Financial risk management

The Company is a core investment company which invests primarily into its group companies. On account of its business activities it is exposed to various financial risks associated with financials products such as credit or default risk, market risk, interest rate risk, liquidity risk and inflationary risk. However, the Company has a robust financial risk management system in place to identify, evaluate, manage and mitigate various risks associated with its financial products to ensure that desired financial objectives are met. The Company''s senior management is responsible for establishing and monitoring the risk management framework within its overall risk management objectives and strategies. Such risk management strategies and objectives are established to identify and analyse potential risks faced by the Company, set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and assess risk management performance.

(a) Credit risk:

This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation where a particular bond issuer is unable to make the expected principal payments, interest rate payments,or both. Similarly, a lender bears the risk that the borrower may default in the payment of contractual interest or principal on its debt obligations, or both. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Risk concentration is minimized by investing in highly rated, investment grade bonds and debt instruments, which has the least risk of default. The Company lends to borrowers with a good credit score. These investments and loans are reviewed by the Board of Directors on a regular basis.

(b) Market risk:

Market risk is a form of systematic risk associated with the day-to-day fluctuation in the market prices of shares and securities and such market risk affects all securities and investors in the same manner.These daily price fluctuations follows its own broad trends and cycles and are more news and transaction driven rather than fundamentals and many a times, it may affect the returns from an investment. Market risks majorly comprises of two types -interest rate risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risks include borrowings and investments.

(i) Price risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in equity instruments, bonds, mutual funds etc. The Company is exposed to price risk arising mainly from investments carried at fair value through FVTPL or FVOCI which are valued using quoted prices in active markets (level 1 investments). A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:

(c) Liquidity risk:

Liquidity refers to the readiness of the Company to sell and realise its financial assets. Liquidity risk is one of the most critical risk factors for Companies which is into the business of investments in shares and securities. It is the risk of not being able to realise the true price of a financial asset, or is not being able to sell the financial asset at all because of non-availability of buyers. Unwillingness to lend or restricted lending by Banks and Financial Institutions may also lead to liquidity concerns for the entities. The Company maintains a well-diversified portfolio of investments in shares and securities which are saleable at any given point of time. A dedicated team of market experts are monitoring the markets on a continuous basis, which advises the management for timely purchase or sale of securities. The Company is currently having a mix of both short-term and long-term investments. The management ensures to manage it''s cash flows and asset liability patterns to ensure that the financial obligations are satisfied in timely manner.

The following table shows the remaining contractual maturities of financial liabilities at the reporting date.

Note:30 Capital management

For the purpose of Company''s capital management, capital includes issued equity share capital, other equity reserves and borrowed capital less cash and cash equivalents. The primary objective of capital management is to maintain an efficient capital structure to reduce the cost of capital, support corporate expansion strategies and to maximize shareholder''s value.The entity 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 entity may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The entity monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Theentity''s policy is to keep an optimum gearing ratio. The entity includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.

Note 32: Previous year figures have been regrouped / reclassified wherever necessary to suit current year layout.


Mar 31, 2023

Terms and rights attached to equity shares

1 The Company has only one class of shares referred to as equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

2 The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors does not propose any dividend during the current year. No dividend was declared in the preceding year.

3 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserve

a. Securities premium is used to record premium received on issues of shares. It is utilised in accordance with provisions of the Act.

b. General reserve is created out of profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up shares.

c. Retained earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend. It is utilised in accordance with the provisions of the Act.

d. Other comprehensive income represents fair value recognition and measurement of equity instruments through other comprehensive income.

Fair value measurement

The Company has an established control framework with respect to the measurement of fair values. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is required, the Company assesses the evidence obtained by the third parties to support the conclusions that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

a. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

b. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

c. Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The carrying amounts of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables are considered to be the same as their fair values, due to their short-term nature

Note 26: Segment reporting

The business of the Company mainly comprises of investments, which has been identified as a single reportable segment for the purpose of Ind AS 108 on ''Operating Segments''.

Note 29: Financial risk management

The Company is a core investment company which invests primarily into its group companies. On account of its business activities it is exposed to various financial risks associated with financials products such as credit or default risk, market risk, interest rate risk, liquidity risk and inflationary risk. However, the Company has a robust financial risk management system in place to identify, evaluate, manage and mitigate various risks associated with its financial products to ensure that desired financial objectives are met. The Company''s senior management is responsible for establishing and monitoring the risk management framework within its overall risk management objectives and strategies. Such risk management strategies and objectives are established to identify and analyse potential risks faced by the Company, set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and assess risk management performance.

(a) Credit risk:

This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation where a particular bond issuer is unable to make the expected principal payments, interest rate payments,or both. Similarly, a lender bears the risk that the borrower may default in the payment of contractual interest or principal on its debt obligations, or both. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Risk concentration is minimized by investing in highly rated, investment grade bonds and debt instruments, which has the least risk of default. The Company lends to borrowers with a good credit score. These investments and loans are reviewed by the Board of Directors on a regular basis.

(b) Market risk:

Market risk is a form of systematic risk associated with the day-to-day fluctuation in the market prices of shares and securities and such market risk affects all securities and investors in the same manner.These daily price fluctuations follows its own broad trends and cycles and are more news and transaction driven rather than fundamentals and many a times, it may affect the returns from an investment. Market risks majorly comprises of two types -interest rate risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risks include borrowings and investments.

(i) Price risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in equity instruments, bonds, mutual funds etc. The Company is exposed to price risk arising mainly from investments carried at fair value through FVTPL or FVOCI which are valued using quoted prices in active markets (level 1 investments). A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:

(c) Liquidity risk:

Liquidity refers to the readiness of the Company to sell and realise its financial assets. Liquidity risk is one of the most critical risk factors for Companies which is into the business of investments in shares and securities. It is the risk of not being able to realise the true price of a financial asset, or is not being able to sell the financial asset at all because of non-availability of buyers. Unwillingness to lend or restricted lending by Banks and Financial Institutions may also lead to liquidity concerns for the entities. The Company maintains a well-diversified portfolio of investments in shares and securities which are saleable at any given point of time. A dedicated team of market experts are monitoring the markets on a continuous basis, which advises the management for timely purchase or sale of securities. The Company is currently having a mix of both short-term and long-term investments. The management ensures to manage it''s cash flows and asset liability patterns to ensure that the financial obligations are satisfied in timely manner.

The following table shows the remaining contractual maturities of financial liabilities at the reporting date.

Note:30 Capital management

For the purpose of Company''s capital management, capital includes issued equity share capital, other equity reserves and borrowed capital less cash and cash equivalents. The primary objective of capital management is to maintain an efficient capital structure to reduce the cost of capital, support corporate expansion strategies and to maximize shareholder''s value.The entity 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 entity may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The entity monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Theentity''s policy is to keep an optimum gearing ratio. The entity includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.

Note 32: Previous year figures have been regrouped / reclassified wherever necessary to suit current year layout.


Mar 31, 2018

1. Background

Harrisons Malayalam Limited (“the Company”) is a Public Company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. It''s shares are listed in two recognised stock exchanges in India. The registered office of the Company is located at 24/1624, Bristow Road, Willingdon Island, Cochin. The Company is principally engaged in plantations having tea and rubber estates in Kerala and Tamil Nadu.

Notes

1 Land and development includes certain leasehold lands the value of which is not separately ascertainable.

Also refer Note 44 to the Standalone Financial Statements

2 Title deeds of the immovable properties set out in the above table are in the name of Malayalam Plantations Limited (MPL)/ Harrisons Cross field Ltd (HCL) except as set out below which are in the name of the Company. Interalia, the immovable properties of MPL got transferred to and vested in Malayalam Plantations (India) Limited (MPIL) vide a Scheme of Arrangement and Amalgamation in 1978. Further, interalia the immovable properties of Harrisons Cross field (India) Limited got transferred and vested in MPIL vide a Scheme of Arrangement and Amalgamation in 1984. The name of MPIL a Company incorporated in 1978 got changed to Harrisons Malayalam Limited in 1984.

3 Deemed carrying cost

For property, plant and equipment and intangible assets existing as on the date of transition to Ind AS, i.e., 1 April 2016, the Company has used previous GAAP carrying value as deemed costs.

4 Property, plant and equipment pledged as security

Details of properties pledged are as per Note 40.

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial assets, trade payables and working capital loans approximate the carrying amount largely due to short-term maturity of this instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

(ii) Fair value of financial assets and liabilities measured at amortised cost

The management assessed that for amortised cost instruments, fair value approximate largely to the carrying amount.

(iii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(iv) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the fair value of foreign exchange forward contracts is determined using market observable inputs, including prevalent forward rates for the maturities of the respective contracts and interest rate curves as indicated by banks and third parties.

2 Scheme of Amalgamation (‘Scheme’)

The Company has entered into a composite scheme of arrangement and amalgamation amongst Harrisons Malayalam Limited (HML) and Enchanting Plantations Limited (100% subsidiary of HML) and Malayalam Plantations Limited (100% subsidiary of Enchanting Plantations Limited) and Harmony Plantations Limited (100% subsidiary of HML) and their respective shareholders and their creditors (“the Scheme”). The Scheme has been approved by the Board of Directors and sanctioned by the shareholders of the Company and the Company has intimated to the Stock Exchanges in which the Company''s shares are listed. As per the Scheme interalia certain Tea and Rubber estates would be transferred/ demerged to its subsidiaries. The Scheme was pending before the High Court of Kerala and now before the National Company Law Tribunal, Chennai, as directed vide order dated 9 March 2017.

3 Discontinuing operations

The Company in its Board meeting dated 15 May 2012 had approved the plan for transferring its Engineering division to one of its wholly owned subsidiary and had also obtained the consent of its shareholders by way of postal ballot. The Engineering division is a separate segment as per Ind AS 108 “Operating Segments”. The decision was consistent with the Company''s long term strategy to focus on core plantation activity. The Company has stopped quoting for new projects and the existing projects are nearing completion. During the financial year 2015-16, the Board in its meeting held on 28 September 2015 had decided to discontinue the engineering business itself and the aforesaid transfer was no longer warranted.

4 Deferred/Current tax

(i) No provision towards agricultural income tax has been considered necessary in view of the carry forward losses.

(ii) The Company has not recognised any deferred tax asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Ind AS 12 “Income Taxes” in the absence of virtual/ reasonable certainty that probable taxable profit will be available against which the deductable temporary difference can be utilised.

(iii) The Company has not recognised MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realised.

Unused tax losses for which no deferred tax asset has been recognised:

The Company has unabsorbed business loss of Rs. 1,109.61 lakhs under the provisions of Income-tax Act, 1961 and Rs. 9,914.57 lakhs the provisions of Kerala Agricultural Income Tax Act, 1991 which expires on the 8th year from the end of the relevant assessment year.

The Company has unabsorbed depreciation loss under the provisions of Income-tax Act, 1961 amounting to Rs. 1,832.21 lakhs, which has no limit for expiry.

5 Details of security, repayment terms, applicable interest rates

Term loan from banks

a Loan availed Rs.6,000.00 lakhs during 2010 - 11 and 2011 - 12 repayable in 17 quarterly instalments of Rs.333.30 lakhs commencing from September 2012 and final quarterly instalment of Rs.333.90 lakhs is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 3% per annum payable on a monthly basis from disbursement of the loan. During March 2014, the Company has revised the terms of repayment of the loan outstanding of Rs.1,500 lakhs (balance being paid) repayable in 5 quarterly instalments commencing from December 2015 of Rs.166.67 lakhs and Rs.333.33 lakhs for the balance 4 instalments upto December 2016. Year end balance is Rs.Nil (as at 31 March 2017 Rs.Nil , as at 31 March 2016 Rs.1,000.00 lakhs).

b Loan availed of Rs.1,173.61 lakhs during 2012 - 13 is repayable in 31 quarterly instalments of Rs.36.69 lakhs commencing from July 2014 and final quarterly instalment of Rs.36.22 lakhs, is secured by equitable mortgage to be created on immovable property of the Company situated in Mayfield Estate. The loan carries an interest rate of base rate plus 2.75% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs.Nil (as at 31 March 2017 Rs.770.18 lakhs, as at 31 March 2016 Rs.916.89 lakhs)

c Loan availed of Rs.4,000.00 lakhs during the 2013 - 14 is repayable in 24 quarterly instalments repayable as 6 quarterly instalments of Rs.50.00 lakhs commencing from June 2015 upto September 2016, 4 quarterly instalments of Rs.100.00 lakhs from December 2016 to September 2017, 8 quarterly instalment of Rs.200.00 lakhs from December 2017 to September 2019, 4 quarterly instalments of Rs.250.00 lakhs from December 2019 to September 2020 and 2 quarterly final instalments of Rs.350 lakhs from December 2020 to March 2021, is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 2% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs.2,900.00 lakhs (as at 31 March 2017 Rs.3,500.00 lakhs, as at 31 March 2016 Rs.3,800.00 lakhs).

d Loan availed of Rs.1,163.70 lakhs net of processing fee during 2017 - 18 is repayable in 24 equal quarterly instalments commencing from June 2019, is secured by equitable mortgage to be created on immovable properties of the Company situated in Kollam, Fort Kochi and Coimbatore. The loan carries an interest rate of 1 year McLr plus 1.45% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs.1163.70 lakhs (as at 31 March 2017 Rs.Nil, as at 31 March 2016 Rs.Nil )

Term loan from others

e Term loan from others are secured by hypothecation of assets acquired out of these loans which are repayable in equated monthly instalments (ranging between 3 to 5 years) along with the applicable interest rates (ranging between 10.75% to 13.00%).

6 Financial risk management

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on it''s financial performance. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

The risk management activity focuses on actively securing the Company''s short to medium-term cash flows by minimising the exposure to volatile financial markets.

A1 Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers located in India and outside India. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain. The provision for expected credit loss takes into account available external and internal credit risk factors including the credit ratings of the various customers and Company''s historical experience for customers.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, loans and advances to employees and other financial assets are neither past due nor impaired.

Financial assets that are past due but not impaired

There are no other classes of financial assets that is past due but not impaired.

(B) Liquidity risk

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows on a day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.

(C) Market risk

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risk, which result from both its operating and investing activities.

(i) Foreign currency sensitivity

The Company operates internationally and has transactions in USD, Euro and GBP currency and consequently the Company is exposed to foreign exchange risk through its sales to overseas customers. The exchange rate between the rupee and foreign currencies may fluctuate substantially in the future. Consequently, the results of the Company''s operations are adversely affected as the rupee appreciates/ depreciates against these currencies.

(ii) Sensitivity

The following table details the Company''s sensitivity to a 1% increase and decrease in the Rs. against the relevant foreign currencies net of forward contracts. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates, with all other variables held constant. A positive number below indicates an increase in profit or equity where Rs. weakens 1% against the relevant currency. For a 1% strengthening of Rs. against the relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.

(iii) Interest rate risk

The Company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, Financial Instruments - Disclosures, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

7 Employee benefit obligations

The Company has provided for the gratuity liability and leave encashment liability (defined benefit plan), as per actuarial valuation carried out by an independent actuary on the Balance Sheet date.

a) Defined contribution Plan

The Company makes contribution to statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act, 1952 for its employees. Also the Company makes contribution to superannuation fund for its employees. This is a defined contribution plan as per Ind AS 19, Employee benefits. Contribution made during the year Rs.1,401.48 lakhs (31 March 2017: Rs.1,383.89 lakhs).

b) Defined benefit plans

The Company has provided for gratuity and leave encashment liability, for its employees as per actuarial valuation carried out by an independent actuary on the Balance Sheet date. The valuation has been carried out using the Project Unit Credit Method as per Ind AS 19 to determine the present value of Defined Benefit Obligations and the related current service cost. This is a defined benefit plan as per Ind AS 19.

The gratuity plan is governed by the provisions of the Payment of Gratuity Act, 1972 (as amended from time to time). Employees are entitled to all the benefits enlisted under this Act.

c) Sensitivity analysis

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

i) Interest rate risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability as shown in financial statements.

ii) Liquidity risk

This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non availability of enough cash/ cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

iii) Salary escalation risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of employees in future. Deviation in the rate of interest in future for employees from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

iv) Demographic risk

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

v) Regulatory risk

Gratuity benefits are paid in accordance with the requirements of the Payment of Gratuity Act,1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts.

The estimates of rate of escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.

The significant actuarial assumptions for the determination of the defined benefit obligation are the attrition rate, discount rate and the long-term rate of compensation increase. The calculation of the net defined benefit liability is sensitive to these assumptions. The following table summarises the effects of changes in these actuarial assumptions on the defined benefit liability as at 31 March 2018.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as and when calculating the defined benefit liability recognised in the balance sheet.

The method and type of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

8 No adjustment is required to be made in the accounts in respect of :

a. An area of 807 hectares (approximately) [31 March 2017: 807 hectares (approximate)], which is on a leasehold tenure falls under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969. Company''s appeal challenging the Order of the Settlement Officer rejecting its application for Patta was allowed by the District Court, Ooty and the matter is now remanded for de novo enquiry and is pending. Meanwhile, Madras High Court held that out of this area, the notification of 335 Hectares (31 March 2017: 335 Hectares) as forest by the Settlement Officer is valid and has directed that in the event of patta being granted in respect of the notified areas the same will stand modified to that extent.

b. An area of 178 hectares (approximately) [31 March 2017: 178 hectares (approximate)] deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company''s claim for the exclusion of the area from the purview of the Act is pending decision of the Forest Tribunal, Palghat and restoration by the Forest Department.

c. An area of 2588 hectares (approximately) [31 March 2017: 2588 hectares (approximate)] liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending in the High Court of Kerala.

d. The Vythiri Taluk Land Board''s order directing the Company to surrender 707 hectares (approximately) [31 March 2017: 707 hectares (approximate)] as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythri Taluk Land Board for fresh consideration and disposal.

e. An area of 415 hectares (approximately) [31 March 2017: 415 hectares (approximate)] held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

f. An area of 1722 hectares (approximate) [31 March 2017: 1187 hectares (approximate)] in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta ,Sub-Court, Sulthan Bathery and High Court of Kerala.

g. An area of 304 hectares (approximately) [31 March 2017: 304 hectares (approximate)] re-notified as vested forests by the Government of Kerala as the Company''s writ petition challenging the notification is pending before the High Court of Kerala.

h. An area of 1982.45 hectares (31 March 2017: 1982.45 hectares) of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

i. An area of 336.64 hectares (31 March 2017: 336.64 hectares) of rubber field of Koney estate in respect of which the Writ Petition filed by the Company has been allowed by the Hon''ble High Court setting aside the proceedings initiated by the Government of Kerala to resume such lands.

j. An area of 12154 hectares (31 March 2017: 12154 hectares) in respect of which the Government of Kerala had issued resumption proceedings under the Kerala Land Conservancy Act claiming it to be Government Lands, has been set aside by the Hon''ble High Court on HMLs Writ Petition challenging the proceedings.

9 Segment information

Management currently identifies the Company''s three business lines as its operating segments: Tea, Rubber and others. Other Segment comprise of Fruits, Spices and others and Wyanad Medical Fund.

Income / expenses of a financial nature, and the assets / liabilities they are attributable to, have not been allocated to any segment as they are managed on a group basis. Current taxes, deferred taxes and items of income and expense reported under paragraph 97 of Ind AS 1, presentation of financial statements (“exceptional items”) have not been allocated to any segment since these items are also managed on a group basis. Net defined benefit obligation and the expenditure pertaining to such plan constitutes provision for gratuity payable.

F Revenue from major customers

There are no customers contributing to 10 percent or more of Company''s revenues from product sale.

10 First time adoption of Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP'').

Accordingly, the Company has prepared financial statements for the comparative period for the year ended 31 March 2017 that comply with the Ind AS applicable, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its previous GAAP financial statements, including the balance sheet as at 1 April 2016 and the comparative financial statements as at and for the year ended 31 March 2017.

i) Ind AS optional exemptions

a) Deemed cost for property, plant and equipment and intangible assets

Ind AS 101 First-time Adoption of Indian Accounting Standards, permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

b) Deemed cost for investments in subsidiaries

Ind AS 101 First-time Adoption of Indian Accounting Standards, permits a first-time adopter to elect to continue with the carrying value for investments in subsidiaries 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. Accordingly, the Company has elected to measure its investments in subsidiaries in the standalone financial statements at their previous GAAP carrying value.

c) Lease

Appendix C to Ind AS 17, Leases, requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, Leases, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101, First-time Adoption of Indian Accounting Standards, provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/ arrangements.

ii) Ind AS mandatory exemptions

a) Estimates

In accordance with Ind AS, as at the date of transition to Ind AS an entity''s estimates shall be consistent with the estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP except impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition this was not required under the previous GAAP

b) Classification and measurement of financial assets and liabilities

The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109 Financial Instruments are met based on facts and circumstances existing at the date of transition.

Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money i.e. the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:

- The effects of the retrospective application or retrospective restatement are not determinable; or

- The retrospective application or restatement requires assumptions about what management''s intent would have been in that period; or

- The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.

c) De-recognition of financial assets and liabilities

Ind AS 101 First-time Adoption of Indian Accounting Standards, requires a first-time adopter to apply the derecognition provisions of Ind AS 109, Financial Instruments, prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 First-time Adoption of Indian Accounting Standards, allows a first-time adopter to apply the de-recognition requirements in Ind AS 109, Financial Instruments, retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109, Financial Instruments, to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109, Financial Instruments, prospectively from the date of transition to Ind AS.

iii) Reconciliations between previous GAAP and Ind AS

Ind AS 101 First-time Adoption of Indian Accounting Standards, requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS as at the periods specified below.

Notes

iv) Fair valuation of standing crops

Ind AS 2 ‘Inventories'' does not envisage any change in the existing system of valuation of Inventories of finished products of tea and rubber from Accounting Standard 2 ‘Valuation of Inventories'' followed by the Company during prior years. However Ind AS 2 ‘Inventories'' does not apply to valuation of Agricultural Produce, but will continue to apply to valuation of Inventory of finished products of Tea and rubber. Ind AS 41 ‘Agriculture'' deals with the recognition and valuation of Agricultural Produce viz. standing crop of tea and rubber as Biological assets. The Company has valued its standing crops for tea and rubber as at Ind AS transition date (1 April 2016) and adjusted the same in the retained earnings. Further movement in valuation at the reporting dates were routed through the Statement of Profit and Loss.

v) Capitalisation of replanting expenses towards bearer plants

Under the previous GAAP all the replanting expenses consequent to replacement were charged to revenue as and when incurred. No adjustments have been made to the value of bearer plants existing as at 31 March 2016 on account of the replanting expenses of prior years. However all the replanting expenses incurred from the Ind AS transition date (1 April 2016) have been identified and capitalised.

vi) Defined benefit obligation

Both under Previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements comprising of actuarial gains and losses are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus the employee benefit cost is reduced by such amount with a corresponding adjustment on defined benefit plans has been recognised in the OCI net of tax.

vii) Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as ‘other comprehensive income'' includes re-measurements of defined benefit plans, effective portion of gains and losses on cash flow hedging instruments and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP

viii) Property, plant and equipment

As the Company decided to adopt the cost model, Rs.13,957.19 lakhs being the revaluation amount included in the carrying value of land has been adjusted against the related Fixed Asset Revaluation Reserve as on 1 April 2016, effected as at the transition date in these standalone financial statements.

(ix) Other Equity

Adjustments to retained earnings as at 1 April 2016 and 31 March 2017 has been adjusted consequent to the above Ind AS transition adjustments.


Mar 31, 2017

1. Rights, preferences and restrictions attached to equity shares mentioned above :

The Company has only one class of equity shares having a par value ofRs.10 per share. 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.

Term loan from banks

2. Loan availedRs.6,000.00 Lacs during 2010 - 11 and 2011 - 12 repayable in 17 quarterly installments ofRs.333.30 Lacs commencing from September 2012 and final quarterly installment ofRs.333.90 Lacs is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 3% per annum payable on a monthly basis from disbursement of the loan. During March 2014, the Company has revised the terms of repayment of the loan outstanding ofRs.1,500 lacs (balance being paid) repayable in 5 quarterly installments commencing from December 2015 ofRs.166.67 Lacs andRs.333.33 Lacs for the balance 4 installments up to December 2016. Yearend balance is Rs. Nil (Previous yearRs.1,000 Lacs).

3. Loan availed ofRs.1,173.61 Lacs during 2012 - 13 is repayable in 31 quarterly installments ofRs.36.69 Lacs commencing from July 2014 and final quarterly installment ofRs.36.22 Lacs, is secured by equitable mortgage to be created on immovable property of the Company situated in Mayfield Estate. The loan carries an interest rate of base rate plus 2.75% per annum payable on a monthly basis from disbursement of the loan. Yearend balance isRs.770.18 Lacs (Previous yearRs.916.89 Lacs)

4. Loan availed of Rs.4,000.00 Lacs during the year 2013 - 14 is repayable in 24 quarterly installments repayable as 6 quarterly installments ofRs.50.00 Lacs commencing from June 2015 up to September 2016, 4 quarterly installments ofRs.100.00 Lacs from December 2016 to September 2017, 8 quarterly installment ofRs.200.00 Lacs from December 2017 to September 2019, 4 quarterly installments ofRs.250.00 Lacs from December 2019 to September 2020 and 2 quarterly final installments ofRs.350 Lacs from December 2020 to March 2021, is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 2% per annum payable on a monthly basis from disbursement of the loan. Yearend balance is Rs..3,500.00 Lacs (Previous yearRs.3,800.00 Lacs).

Term loan from others

5. Term loan from others are secured by hypothecation of assets acquired out of these loans which are repayable in equated monthly installments (ranging between 3 to 5 years) along with the applicable interest rates (ranging between 10.75% to 15.01%).

6. There are no amounts due for payment to the Investor Education and Protection Fund under Section 125 of The Companies Act, 2013 as at the year end. ForRs.6.20 lacs (previous year Rs. Nil), where the Company had initiated the process for the transfer of the Unclaimed dividend (pertaining to the financial year 2008-2009) to the Investor Education and Protection Fund (IEPF), the challenge generated by the Company on December 5, 2016 (due date being December 5, 2016) was processed by Punjab National Bank only on December 14, 2016 due to certain technical problem encountered by the said bank. Accordingly the money was credited to IEPF on December 14, 2016.

7. No adjustment is required to be made in the accounts in respect of :

8. An area of 807 hectares (approximately) [Previous Year 807 hectares (approximately)], which is on a leasehold tenure falls under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969. Company''s appeal challenging the Order of the Settlement Officer rejecting its application for Patta is pending before the District Court, Ooty. During the year the Madras High Court held that out of this area, the notification of 335 Hectares (Previous Year 335 Hectares) as forest by the Settlement Officer is valid and the Company is in the process of filing appeal before the division bench against this judgment.

9. An area of 178 hectares (approximately) [Previous Year 178 hectares (approximately)] deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company''s claim for the exclusion of the area from the purview of the Act is pending decision of the Forest Tribunal, Palghat and restoration by the Forest Department.

10. An area of 2588 hectares (approximately) [Previous Year 2588 hectares (approximately)] liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending in the High Court of Kerala.

11. The Vythiri Taluk Land Board''s order directing the Company to surrender 707 hectares (approximately) [Previous Year 707 hectares (approximately)] as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythri Taluk Land Board for fresh consideration and disposal.

12. An area of 415 hectares (approximately) [Previous Year 415 hectares (approximately)] held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorized Officer, Coimbatore.

13. An area of 1722 hectares (approximately) [Previous Year 1187 hectares (approximately)] in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta ,Sub-Court, Sulthan Bathery and High Court of Kerala.

14. An area of 304 hectares (approximately) [Previous Year 304 hectares (approximately)] re-notified as vested forests by the Government of Kerala as the Company''s writ petition challenging the notification is pending before the High Court of Kerala.

15. An area of 1982.45 hectares (Previous Year 1982.45 hectares) of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

16. An area of 336.64 hectares (Previous Year 336.64 hectares) of rubber field of Koney estate in respect of which the Writ Petition filed by the Company and the status quo order passed by the High Court of Kerala challenging the proceedings initiated by the Government of Kerala to resume such lands, is in force.

17. An area of 12154 hectares (Previous Year 12154 hectares) in respect of which the Government of Kerala has issued order of resumption under the Kerala Land Conservancy Act claiming it to be Government Lands, the further proceedings of which has been prevented by High Court of Kerala, on a writ petition filed by the Company.

18. Segment reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber,Engineering and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Fruits, Spices and others and Wyanaad Medical Fund. The geographical segments are identified on the basis of the location of customers.

19. Changes in Accounting Policy

20. Property Plant and Equipment

Up to March 31, 2016, cost of bearer plants (rubber trees and tea bushes) was accounted for and disclosed as part of Land and Development cost (Refer note 1.3). Consequent to the Companies (Accounting Standards) Amendment Rules , 2016 , published by the Ministry of Corporate Affairs which is effective from April 1,2016 the new Accounting Standard AS - 10 Property Plant and Equipment recognizes bearer Plants as a separate class of depreciable Property, Plant and Equipment . The development cost (representing cost of bearer plants) as was disclosed under the head “Land and Development” as on March 31, 2016 has been bifurcated as Land , Bearer Plants and Bearer Plants in Progress and measured as per the Cost Model as on April 1, 2016 in keeping with the aforesaid AS 10.

Land

As the Company decided to adopt the cost model,Rs.13,957.19 lakhs being the revaluation amount included in the carrying value of Land has been adjusted against the related Fixed Asset Revaluation Reserve as on April 1, 2016 (Refer Note 3).

Bearer Plants

The Bearer Plants as at March 31, 2016 have been depreciated over their balance useful life. Had the Company continued to follow the earlier accounting policy, the depreciation charge recognized in the Statement of Profit and Loss would have been lower byRs.39.00 lakhs and the net block of Property Plant and Equipment as on March 31, 2017 would have been higher byRs.39.00 lakhs. Consequentially, the loss for the year would have been lower byRs.39.00 lakhs and the loss per equity share would have been lower by Re. 0.21.

Bearer Plant in Progress

As on 1st April 2016, Bearer Plants in Progress amounting toRs.389.66 lakhs has been classified as Capital Work in Progress.

21. Derivative contract:

The Company was following a policy for accounting for derivative contracts based on the announcement of Institute of Chartered Accountants of India (ICAI) issued in March 2008, wherein only mark to market losses were recognized in the statement of profit and loss, however based on the new Guidance Note by ICAI effective accounting period commencing from April 1, 2016 the Company recognizes profits and losses (net) if any, in the statement of profit and loss . Had the Company followed the earlier accounting policy the Mark to Market gain on foreign currency would have been lower byRs.1.49 lakhs with a corresponding impact on the loss for the year (higher byRs.1.49 Lacs) and the loss per equity share would have been higher by Re.0.01.

22 Taxation

23. No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

24. The Company has not recognized any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 “Accounting for Taxes on Income” in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realized.

25. The Company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realized.

26. The Company has entered into a composite scheme of arrangement and amalgamation amongst Harrisons Malayalam Limited (HML) and Enchanting Plantations Limited (100% subsidiary of HML) and Malayalam Plantations Limited (100% subsidiary of Enchanting Plantations Limited) and Harmony Plantations Limited (100% subsidiary of HML) and their respective shareholders and their creditors (“the Scheme”). The Scheme has been approved by the Board of Directors and sanctioned by the shareholders of the Company and the Company has intimated to the Stock Exchanges in which the Company''s shares are listed. As per the Scheme interalia certain Tea and Rubber estates would be transferred/ demerged to its subsidiaries. The Scheme was pending before the High Court of Kerala and now before the National Company Law Tribunal, Chennai, as directed vide order dated March 9, 2017.

27. Permitted payments

Permitted payments represents payment made to Kerala State Electricity Board.

28. Non-Permitted Receipts

29. Receipt at Hospital

The Company runs hospitals in various estates for the Company''s workers/employees and for the local population. In view of the emergency medical requirements at the Hospitals, the specified bank notes were accepted from the patients till 14th November 2016 amounting to Rs.0.25 lacs.

30. Currency exchange from Company’s own employees/workers

The Company runs estates across Kerala and TamilNadu and most of the estates are in remote areas without easy access to banking facilities. In view of the announcement of November 8, 2016 on non validity of the thenRs.500/andRs.1000/- notes as legal tender, some of the workers were carrying SBNs and were not in a position to readily exchange the same at the banks. Having regard to the business and practices prevalent in estates, which are highly labor intensive, the Company had to take steps to mitigate the situation faced by the workers. AccordinglyRs.7.83 lacs was exchanged to the workers in lieu of the SBN''s.

31. Accounting differences

Before the announcement in respect of SBN''s certain receipts amounting to Rs.0.65 lacs were collected. However, the same has been recorded in books post 8th November 2016.

All the SBN''s in hand and those accepted net of payments as mentioned above have been deposited with the banks.

32. Previous year''s figures have been regrouped /rearranged wherever necessary to conform to the current year''s presentation.


Mar 31, 2016

1. No adjustment is required to be made in the accounts in respect of :

a An area of 807 hectares (approximately) [Previous Year 807 hectares (approximately)], which is on a leasehold tenure falls under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969. Company''s appeal challenging the Order of the Settlement Officer rejecting its application for Patta is pending before the District Court, Ooty. The status quo Orders passed by the Madras High Court challenging the notification of 335 Hectares (Previous Year 335 Hectares) out of this area as forest by the Government of Tamil Nadu is also in force.

b An area of 178 hectares (approximately) [Previous Year 178 hectares (approximately)] deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company''s claim for the exclusion of the area from the purview of the Act is pending decision of the Forest Tribunal, Palghat and restoration by the Forest Department.

c An area of 2588 hectares (approximately) [Previous Year 2588 hectares (approximately)] liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending in the High Court of Kerala.

d The Vythiri Taluk Land Board''s order directing the Company to surrender 707 hectares (approximately) [Previous Year 707 hectares (approximately)] as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythri Taluk Land Board for fresh consideration and disposal.

e An area of 415 hectares (approximately) [Previous Year 415 hectares (approximately)] held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorized Officer, Coimbatore.

f An area of 1187 hectares (approximately) [Previous Year 1152 hectares (approximately)] in respect of which cases filed by Janmies (original owners) of Lahai, Koney, Kaliyar and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta ,Sub-Court, Sulthan Bathery and High Court of Kerala.

g An area of 304 hectares (approximately) [Previous Year 304 hectares (approximately)] re-notified as vested forests by the Government of Kerala as the Company''s writ petition challenging the notification is pending before the High Court of Kerala.

h An area of 1982.45 hectares (Previous Year 1982.45 hectares) of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

i An area of 336.64 hectares (Previous Year 336.64 hectares) of rubber field of Koney estate in respect of which the Writ Petition filed by the Company and the status quo order passed by the High Court of Kerala challenging the proceedings initiated by the Government of Kerala to resume such lands, is in force.

j An area of 12,154 hectares (Previous Year 12,154 hectares) in respect of which the Government of Kerala has issued order of resumption under the Kerala Land Conservancy Act claiming it to be Government Lands, the further proceedings of which has been prevented by High Court of Kerala, on a writ petition filed by the Company.

2. Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organizational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Fruits, Spices and others and Waylaid Medical Fund. The geographical segments are identified on the basis of the location of customers.

3. Related Party Disclosures

a List of Related Parties where control exists Wholly Owned Subsidiaries

HML Engineering Company Limited (HECL)

Enchanting Plantations Limited (EPL)

Harmony Plantations Limited (HPL)

Malayalam Plantations Limited (MPL) (100% subsidiary of EPL)

b Key management personnel

Mr. V Venugopal (Manager)

Mr Ashok Goyal (Whole Time Director) with effect from April 24, 2014 till July 24, 2014 Mr. N.Dharamraj (Whole Time Director) with effect from August 8, 2014

4 Extraordinary Item

Extraordinary item for the year ended March 31, 2015 represents net gain towards insurance claim received against loss of certain inventories and fixed assets (net of sale proceeds) due to fire in one of the tea factory; Consequent to that, Company received '' 13.95 lacs towards a part of insurance claim during the year ended March 31, 2015.

5. Taxation

a No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

b The Company has not recognized any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 “Accounting for Taxes on Income” in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realized.

c The company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realized.

6. The Company has entered into a composite scheme of arrangement and amalgamation amongst Harrisons Malayalam Limited (HML) and Enchanting Plantations Limited (100% subsidiary of HML) and Malayalam Plantations Limited (100% subsidiary of Enchanting Plantations Limited) and Harmony Plantations Limited (100% subsidiary of HML) and their respective shareholders and their creditors(“the Scheme”). The Scheme has been approved by the Board of Directors and sanctioned by the shareholders of the Company and the Company has intimated to the Stock Exchanges in which the Company''s shares are listed. As per the Scheme interlaid certain Tea and Rubber estates would be transferred/ demerged to its subsidiaries. The Scheme is now pending before the High Court of Kerala.

7. The Company in its Board meeting dated May 15, 2012 has approved the plan for transferring its Engineering division to one of its wholly owned subsidiary and had also obtained the consent of its shareholders by way of postal ballot. The Engineering division is a separate business segment as per AS 17 "Segment Reporting". The decision was consistent with the Company''s long term strategy to focus on core plantation activity. The Company has now stopped quoting for new projects and the existing projects are nearing completion. During the year, the Board in its meeting held on September 28, 2015 has decided to discontinue the engineering business itself and the aforesaid transfer is no longer warranted.

8. Previous year''s figures have been regrouped / rearranged wherever necessary to conform to the current year''s presentation.


Mar 31, 2016

Terms and rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors do not propose any dividend during the current year. No dividend was declared in the preceding year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

1 Deferred tax

Deferred tax asset on account of unabsorbed tax losses is not recognized during the year since there is no virtual certainty of taxable profits in the foreseeable future which would offset the asset as the Company has mainly one source of income being dividend which is exempt under Income Tax Act.

Note:

Provision in diminution in value of investments represents provision created against investments held by the Company in CFL Capital Financial Services Ltd.

2 Segment information

The Company''s income for the year consisted of dividend, interest and income from disposal of investments and accordingly there are no reportable segments.

3 Loans and advances in the nature of loans given to subsidiaries and associates and firms/ companies in which directors are interested.

Advance to Rainbow Investments Ltd. for purchase of shares 35,827,807 827,807

Amount receivable on redemption of debentures from Rainbow 37,445,000 37,445,000

Investments Ltd.

Maximum amount outstanding during the year 73,272,807 38,272,807

4 Details of dues to micro, small and medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006

The Company has not received any intimation from its vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, required under the said Act have not been made.

5 Previous year figures have been regrouped / reclassified wherever necessary to suit current year layout.


Mar 31, 2016

Terms and rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors do not propose any dividend during the current year. No dividend was declared in the preceding year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

1 Deferred tax

Deferred tax asset on account of unabsorbed tax losses is not recognized during the year since there is no virtual certainty of taxable profits in the foreseeable future which would offset the asset as the Company has mainly one source of income being dividend which is exempt under Income Tax Act.

Note:

Provision in diminution in value of investments represents provision created against investments held by the Company in CFL Capital Financial Services Ltd.

2 Segment information

The Company''s income for the year consisted of dividend, interest and income from disposal of investments and accordingly there are no reportable segments.

3 Loans and advances in the nature of loans given to subsidiaries and associates and firms/ companies in which directors are interested.

Advance to Rainbow Investments Ltd. for purchase of shares 35,827,807 827,807

Amount receivable on redemption of debentures from Rainbow 37,445,000 37,445,000

Investments Ltd.

Maximum amount outstanding during the year 73,272,807 38,272,807

4 Details of dues to micro, small and medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006

The Company has not received any intimation from its vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, required under the said Act have not been made.

5 Previous year figures have been regrouped / reclassified wherever necessary to suit current year layout.


Mar 31, 2016

Terms and rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors do not propose any dividend during the current year. No dividend was declared in the preceding year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

1 Deferred tax

Deferred tax asset on account of unabsorbed tax losses is not recognized during the year since there is no virtual certainty of taxable profits in the foreseeable future which would offset the asset as the Company has mainly one source of income being dividend which is exempt under Income Tax Act.

Note:

Provision in diminution in value of investments represents provision created against investments held by the Company in CFL Capital Financial Services Ltd.

2 Segment information

The Company''s income for the year consisted of dividend, interest and income from disposal of investments and accordingly there are no reportable segments.

3 Loans and advances in the nature of loans given to subsidiaries and associates and firms/ companies in which directors are interested.

Advance to Rainbow Investments Ltd. for purchase of shares 35,827,807 827,807

Amount receivable on redemption of debentures from Rainbow 37,445,000 37,445,000

Investments Ltd.

Maximum amount outstanding during the year 73,272,807 38,272,807

4 Details of dues to micro, small and medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006

The Company has not received any intimation from its vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, required under the said Act have not been made.

5 Previous year figures have been regrouped / reclassified wherever necessary to suit current year layout.


Mar 31, 2015

1. Rights, preferences and restrictions attached to Equity shares mentioned above :

The company has only one class of equity shares having a par value of Rs.10 per share. 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.

Term loan from banks

a.Loan availed Rs.6,000.00 Lacs during 2010-11 and 2011-12 repayable in 17 quarterly instalments of Rs.333.30 Lacs commencing from September 2012 and final quarterly instalment of Rs.333.90 Lacs is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 3% per annum payable on a monthly basis from disbursement of the loan. During March 2014, the Company has revised the terms of repayment of the loan outstanding of Rs. 1,500 lacs (balance being paid) repayable in 5 quarterly instalments commencing from December 2015 of Rs. 166.67 Lacs and Rs. 333.33 Lacs for the balance 4 instalments upto December 2016. Year end balance is Rs. 1,500.01 Lacs (Previous year Rs. 1,500.01 Lacs).

b Loan availed of Rs.1,173.61 Lacs during 2012-2013 is repayable in 31 quarterly instalments of Rs.36.69 Lacs commencing from July 2014 and final quarterly instalment of Rs. 36.22 Lacs, is secured by equitable mortgage to be created on immovable property of the Company situated in Mayfield Estate. The loan carries an interest rate of base rate plus 2.75% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs. 1,063.58 Lacs (Previous year Rs. 1,173.61 Lacs)

c Loan availed of Rs. 4,000.00 Lacs during the year 2013-14 is repayable in 24 quarterly instalments repayable as 6 quarterly instalments of Rs. 50.00 Lacs commencing from June 2015 upto September 2016, 4 quarterly instalments of Rs. 100.00 Lacs from December 2016 to September 2017, 8 quarterly instalment of Rs. 200.00 Lacs from December 2017 to September 2019, 4 quarterly instalments of Rs. 250.00 Lacs from December 2019 to September 2020 and 2 quarterly final instalments of Rs. 350 Lacs from December 2020 to March 2021, is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 2% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs. 4,000.00 Lacs (Previous year Rs. 4,000.00 Lacs).

Term loan from others

d Term loan from others are secured by hypothecation of assets acquired out of these loans which are repayable in equated monthly instalments (ranging between 3 to 5 years) along with the applicable interest rates (ranging between 10.49% to 15.50%).

Secured by equitable mortgage of immovable properties of the Company situated in Arrapetta Estate, hypothecation of standing crop in Achoor, Arrapetta, Panniar, Mayfield , Lahai, Isfield and Nagamallay Estates and by hypothecation of stocks of tea, rubber, trading merchandise, stores and spares, book debts and other movable assets both present and future.

25.1 In keeping with the Company's gratuity scheme ( an unfunded defined benefit plan ), eligible employees are entitled for gratuity benefit (as per the The Payment of Gratuity Act, 1972 ) on retirement/death/incapacitation/ termination. Also refer note 1.11(ii)( c ) for accounting policy relating to gratuity. Following are the further particulars with respect to gratuity:-

As at March 31, As at March 31, 2015 2014 Rs. Lacs Rs. Lacs

2. Contingent Liabilities and commitments

Contingent Liabilities :

a) Claims against the Company not acknowledged as debt

i. Employee related 367.59 324.71

ii. Penalties under section 14B of Employees' Provident Fund 59.33 49.41 Miscellaneous Provisions Act 1952

iii. Disputed Income Tax matters 1,302.59 1,019.97

iv The Government of Kerala had issued a notification in February 2006, 205.47 348.49 enhancing the minimum wages of plantation workers which has been challenged by the Association of Planters of Kerala of which the Company was a member and an interim stay was granted by the High Court of Kerala. As the Company resigned from Association of Planters of Kerala with effect from 12.02.2007, a separate writ petition was filed and an interim stay of the Government Notification obtained.

b) Others

(i) Outstanding bills discounted with bank 77.78 -

3. Commitments :

Estimated amount of contracts remaining to be executed on Capital Account 1.53 121.94 and not provided for, net of advance payments of Rs.22.30 lacs (Previous year Rs.68.24 lacs)

4. No adjustment is required to be made in the accounts in respect of :

a An area of 807 hectares (approximately) [Previous Year 807 hectares (approximately)], which is on a leasehold tenure falls under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969. Company's appeal challenging the Order of the Settlement Officer rejecting its application for Patta is pending before the District Court, Ooty. The status quo Orders passed by the Madras High Court challenging the notification of 335 Hectares (Previous Year 335 hectares) out of this area as forest by the Government of Tamil Nadu is also in force.

b An area of 178 hectares (approximately) [Previous Year 125.80 hectares (approximately)] deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company's claim for the exclusion of the area from the purview of the Act is pending decision of the Forest Tribunal, Palghat and restoration by the Forest Department.

c An area of 2588 hectares (approximately) [Previous Year 2588 hectares (approximately)] liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending in the High Court of Kerala.

d The Vythiri Taluk Land Board's order directing the Company to surrender 707 hectares (approximately) [Previous Year 707 hectares (approximately)] as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythri Taluk Land Board for fresh consideration and disposal.

e An area of 415 hectares (approximately) [Previous Year 415 hectares (approximately)] held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

f An area of 1152 hectares (approximately) [Previous Year 1310 hectares (approximately)] in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta ,Sub-Court, Sulthan Bathery and High Court of Kerala.

g An area of 304 hectares (approximately) [Previous Year 304 hectares (approximately)] re-notified as vested forests by the Government of Kerala as the Company's writ petition challenging the notification is pending before the High Court of Kerala.

h An area of 1982.45 hectares (Previous Year 1982.45 hectares) of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

i An area of 336.64 hectares (Previous Year 336.64 hectares) of rubber field of Koney estate in respect of which the Writ Petition filed by the Company and the status quo order passed by the High Court of Kerala challenging the proceedings intiated by the Government of Kerala to resume such lands, is in force.

j An area of 12154 hectares (Previous Year Nil) in respect of which the Government of Kerala has issued order of resumption under the Kerala Land Conservancy Act claiming it to be Government Lands, the further proceedings of which has been prevented by High Court of Kerala, on a writ petition filed by the Company.

5. Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Clearing and Shipping, Fruits, Spices and others and Wyanaad Medical Fund. The geographical segments are identified on the basis of the location of customers.

6. Related Party Disclosures

a List of Related Parties where control exists (Wholly Owned Subsidiaries)

HML Engineering Company Limited (HECL)

Enchanting Plantations Limited (EPL)

Harmony Plantations Limited (HPL)

Malayalam Plantations Limited (MPL) (100% subsidiary of EPL)

b Key management personnel

Mr. V Venugopal (Manager)

Mr. Ashok Goyal (Whole Time Director) with effect from April 24, 2014 till July 24, 2014

Mr. N.Dharma raj (Whole Time Director) with effect from August 8, 2014

7. Taxation

a The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

b No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

c The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 "Accounting for Taxes on Income" in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realised.

d The company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realised.

8. The Company has entered into a composite scheme of arrangement and amalgamation amongst Harrisons Malayalam Limited (HML) and Enchanting Plantations Limited (100% subsidiary of HML) and Malayalam Plantations Limited (100% subsidiary of Enchanting Plantations Limited) and Harmony Plantations Limited (100% subsidiary of HML) and their respective shareholders and their creditors ("the Scheme"). The Scheme has been approved by the Board of Directors and sanctioned by the shareholders of the Company and the Company has intimated to the Stock Exchanges in which the Company's shares are listed. As per the Scheme interalia certain Tea and Rubber estates would be transferred/ demerged to its subsidiaries. The Scheme is now pending before the High Court of Kerala.

9. The Company in its Board meeting dated May 15, 2012 has approved the plan for transferring its Engineering division to its wholly owned subsidiary and has also obtained the consent of its shareholders by way of postal ballot. The Engineering division is a separate business segment as per AS 17 "Segment Reporting". The decision is consistent with the Company's long term strategy to focus on core plantation activity. The Board in its meeting of May 28, 2015, discussed on this to evalauate the modus operandi/ process of transfer.

10. Previous year's figures have been regrouped / rearranged wherever necessary to conform to the current year's presentation.


Mar 31, 2014

1 Share Capital

As at March 31, As at March 31, 2014 2013 Rs. Lacs Rs. Lacs

(i) Authorised:

3,00,00,000 Equity Shares 3,000.00 3,000.00 of Rs.10 each

(ii) Issued, Subscribed and Paid up:

1,84,55,405 Equity Shares 1,845.54 1,845.54 of Rs.10 each fully paid up

Less: Allotment Money in Arrears 0.11 0.11

1,845.43 1,845.43

(iii) Rights, preferences and restrictions attached to Equity shares mentioned above :

The company has only one class of equity shares having a par value of Rs.10 per share. 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.

Term loan from banks

a) Loan availed Rs.6,000.00 Lacs during 2010-11 and 2011-12 repayable in 17 quarterly instalments of Rs.333.30 Lacs commencing from September 2012 and final quarterly instalment of Rs.333.90 Lacs is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 3% per annum payable on a monthly basis from disbursement of the loan. During March 2014, the Company has revised the terms of repayment of the loan outstanding of Rs 1,500 lacs (balance being paid) repayable in 5 quarterly instalments commencing from December 2015 of Rs 166.67 Lacs and Rs 333.33 Lacs for the balance 4 instalments upto December 2016. Year end balance is Rs.1,500.01 Lacs (Previous year Rs.5,000.01 Lacs).

b) Loan availed of Rs.1,173.61 Lacs during 2012-2013 is repayable in 31 quarterly instalments of Rs.36.69 Lacs commencing from July 2014 and final quarterly instalment of Rs. 36.22 Lacs, is secured by equitable mortgage to be created on immovable property of the Company situated in Mayfield Estate. The loan carries an interest rate of base rate plus 2.75% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs 1,173.61 Lacs (Previous year Rs 1,173.61 Lacs)

c) Loan availed of Rs 4,000.00 Lacs during the year is repayable in 24 quarterly instalments repayable as 6 quarterly instalments of Rs. 50.00 Lacs commencing from September 2015 upto December 2016, 4 quarterly instalments of Rs 100.00 Lacs from March 2017 to December 2017, 8 quarterly instalment of Rs 200.00 Lacs from March 2018 to December 2019, 4 quarterly instalments of Rs 250.00 Lacs from March 2020 to December 2020 and 2 quarterly final instalments of Rs. 350 Lacs from March 2021 to June 2021, is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 2% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs.4,000.00 Lacs (Previous year Rs. Nil).

Term loan from others

d) Term loan from others are secured by hypothecation of assets acquired out of these loans which are repayable in equated monthly instalments (ranging between 3 to 5 years) along with the applicable interest rates (ranging between 10.49 to 15.50 % ).

As at March 31, 2014 As at March 31, 2013 Rs. Lacs Rs. Lacs

2 Contingent Liabilities and commitments

2.1 Contingent Liabilities :

Claims against the Company not acknowledged as debt

i. Employee related 324.71 560.03

ii. Penalties under section 49.41 93.49 14B of Employees'' Provident Fund Miscellaneous Provisions Act 1952

iii. Disputed Income Tax matters 1,019.97 674.10

iv The Government of Kerala had 348.49 348.49 issued a notification in February 2006, enhancing the minimum wages of plantation workers which has been challenged by the Association of Planters of Kerala of which the Company was a member and an interim stay was granted by the High Court of Kerala. As the Company resigned from Association of Planters of Kerala with effect from 12.02.2007, a separate writ petition was filed and an interim stay of the Government Notification obtained.

2.2 Commitments :

Estimated amount of contracts 121.94 19.89 remaining to be executed on Capital Account and not provided for, net of advance payments of Rs.68.24 lacs (Previous year Rs.35.12 lacs)

3 No adjustment is required to be made in the accounts in respect of :

a) An area of 807 hectares (approximately) [Previous Year 807 hectares (approximately)], which is on a leasehold tenure falls under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969. Company''s appeal challenging the Order of the Settlement Officer rejecting its application for Patta is pending before the District Court, Ooty. The status quo Orders passed by the Madras High Court challenging the notification of 335 Hectares out of this area as forest by the Government of Tamil Nadu is also in force.

b) An area of 125.80 hectares (approximately) [Previous Year 889 hectares (approximately)] deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company''s claim for the exclusion of the area from the purview of the Act is pending decision of the Forest Tribunal, Palghat and restoration by the Forest Department.

c) An area of 2588 hectares (approximately) [Previous Year 2588 hectares (approximately)] liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending in the High Court of Kerala.

d) The Vythiri Taluk Land Board''s order directing the Company to surrender 707 hectares (approximately) [Previous Year 707 hectares (approximately)] as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythri Taluk Land Board for fresh consideration and disposal.

e) An area of 415 hectares (approximately) [Previous Year 415 hectares (approximately)] held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

f) An area of 1310 hectares (approximately) [Previous Year 1460 hectares (approximately)] in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta, Sub-Court, Sulthan Bathery and High Court of Kerala.

g) An area of 22.45 hectares (approximately) [Previous Year 22.45 hectares (approximately)] resumed by the Government of Kerala, as the Government''s writ appeal challenging the High Court judgement directing to return the land to the Company is pending before the High Court of Kerala.

h) An area of 304 hectares (approximately) [Previous Year 304 hectares (approximately)] re-notified as vested forests by the Government of Kerala as the Company''s writ petition challenging the notification is pending before the High Court of Kerala.

i) An area of 1982.45 hectares (Previous Year 1982.45 hectares) of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

j) An area of 336.64 hectares (Previous Year 336.64 hectares) of rubber field of Koney estate in respect of which the Writ Petition filed by the Company and the status quo order passed by the High Court of Kerala challenging the proceedings intiated by the Government of Kerala to resume such lands, is in force.

k) Guarantee of Rs. Nil (Previous Year Rs. 1,800 Lacs), provided to the Registrar General, High Court of Kerala for commencing the felling of trees in litigated lands as indicated interalia in points a to j above is secured by equitable mortgage of property situated at Mumbai and Coimbatore.

4 Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Clearing and Shipping, Fruits, Spices and others and Wyanaad Medical Fund. The geographical segments are identified on the basis of the location of customers.

5 Earnings Per Share

Particulars 2013-14 2012-13 Rs. Lacs Rs. Lacs

a) Profit after tax 441.50 229.76 (including extraordinary item) (Rs in lacs )

b) Profit after tax 439.77 229.76 (excluding extraordinary item) (Rs in lacs )

c) Number of equity shares at the beginning of the year 18,455,405 18,455,405

d) Number of equity shares 18,455,405 18,455,405 at the end of the year

e) Weighted average number 18,455,405 18,455,405 of equity shares outstanding

f) Nominal Value of each 10.00 10.00 equity share (Rs.)

g) Basic and diluted earnings 2.39 1.24 per share (including extraordinary item) (Rs.) (a/e)

h) Basic and diluted earnings 2.38 1.24 per share (excluding extraordinary item) (Rs.) (b/e)

6 Taxation

a) The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

b) No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

c) The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 "Accounting for Taxes on Income" in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realised.

d) The company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realised.

7 The Company has entered into a composite scheme of arrangement and amalgamation amongst Harrisons Malayalam Limited (HML) and Enchanting Plantations Limited (100% subsidiary of HML) and Malayalam Plantations Limited (100% subsidiary of Enchanting Plantations Limited) and Harmony Plantations Limited (100% subsidiary of HML) and their respective shareholders and their creditors ("the Scheme"). The Scheme has been approved by the Board of Directors and sanctioned by the shareholders of the Company and the Company has intimated to the Stock Exchanges in which the Company''s shares are listed. As per the Scheme interalia certain Tea and Rubber estates would be transferred/ demerged to its subsidiaries. The Scheme is now pending before the High Court of Kerala.

8 The Company in its Board meeting dated May 15, 2012 has approved the plan for transferring its Engineering division to its wholly owned subsidiary and has also obtained the consent of its shareholders by way of postal ballot. The Engineering division is a separate business segment as per AS 17 "Segment Reporting". The decision is consistent with the Company''s long term strategy to focus on core plantation activity.

The operating activities of the Company''s discontinuing operations are summarised as follows:

9 Previous year''s figures have been regrouped / rearranged wherever necessary to conform to the current year''s presentation.


Mar 31, 2013

1.1 Certain employees of the Company were members of the Provident Fund Trust set up by the Company and the Company had an obligation to fund any shortfall in return on plan asset over the interest rate prescribed by the authorities from time to time. In view of Company''s obligation to meet the shortfall, it was a defined benefit plan.

During the year the Company on obtaining necessaray approvals from the Employees Provident Fund Organisation transferred the corpus of the aforesaid Trust to the Regional Provident Fund and discontinued making contribution to the said Trust and is contributing to the Regional Provident Fund effective January 1, 2013. Pursuant to above, all contributions to Provident Fund effective January 1, 2013 are defined contribution plan.

1.2 Commitments :

Estimated amount of contracts remaining to be executed on Capital Account and not provided for, net of advance payments of Rs. 35.12 lacs (Previous year Rs.75.68 lacs) 19.89 80.37

2 No adjustment is required to be made in the accounts in respect of:

a An area of 807 hectares (approximately), which is on a lease hold tenure falling under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969. Company''s appeal challenging the order of the Settlement Officer rejecting its application for patta is pending before the District Court,Ooty. The status quo orders passed by the Madras High Court challenging the notification of vesting of 335 hectares out of the aforesaid area as forest lands by the Government of Tamil Nadu are also in force.

b An area of 889 hectares (approximately) deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company''s claim for the exclusion of the area from the purview of the Act has been upheld by the Forest Tribunal, Palghat.

c An area of 2588 hectares (approximately) liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending in the High Court of Kerala.

d The Vythiri Taluk Land Board''s order directing the Company to surrender 707 hectares (approximately) as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Vythri Taluk Land Board for fresh consideration and disposal.

e An area of 415 hectares (approximately) held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

f An area of 1460 hectares (approximately) in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta ,Sub-Court, Sulthan Bathery and High Court of Kerala.

g An area of 22.45 hectares (approximately) resumed by the Government of Kerala, as the Government''s writ appeal challenging the High Court judgement directing to return the land to the Company is pending before the High Court of Kerala.

h An area of 304 hectares (approximately) re-notified as vested forests by the Government of Kerala as the Company''s writ petition challenging the notification is pending before the High Court of Kerala.

i An area of 1982.45 hectares of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

j An area of 336.64 hectares of rubber field of Koney estate in respect of which the Writ Petition filed by the Company and the status quo order passed by the High Court of Kerala challenging the proceedings intiated by the Government of Kerala to resume such lands, is in force.

k Guarantee of Rs. 1,800 lacs, provided to the Registrar General, High Court of Kerala for commencing the felling of trees in litigated lands as indicated interalia in points a to j above is secured by equitable mortgage of property situated at Mumbai and Coimbatore.

3 Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Clearing and Shipping, Fruits, Spices and others and Wyanaad Medical Fund. The geographical segments are identified on the basis of the location of customers.

(a) Primary Segment Information - By Business Segments *

4 Related Party Disclosures

a List of Related Parties where control exists (Wholly Owned Subsidiaries)

HML Engineering Company Limited (HECL) effective June 6, 2011

Enchanting Plantations Limited (EPL) effective February 8, 2012

Harmony Plantations Limited (HPL) effective February 12, 2012

Malayalam Plantations Limited (MPL) effective November 11, 2011 ( 100% subsidiary of EPL)

b Key management personnel

Mr. Pankaj Kapoor (Managing Director) upto June 30, 2012. Mr. V Venugopal (Manager) with effect from August 14, 2012

5 Taxation

a The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

b No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

c The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 "Accounting for Taxes on Income" in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realised.

d The Company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realised.

6 The Company has entered into a composite scheme of arrangement and amalgamation amongst Harrisons Malayalam Limited (HML) and Enchanting Plantations Limited (100% subsidiary of HML) and Malayalam Plantations Limited (100% subsidiary of Enchanting Plantations Limited) and Harmony Plantations Limited (100% subsidiary of HML) and their respective shareholders and their creditors ("the Scheme"). The Scheme has been approved by the Board of Directors and sanctioned by the shareholders of the Company and the Company has intimated to the Stock Exchanges in which the Company''s shares are listed. As per the Scheme interalia certain Tea and Rubber estates would be transferred/ demerged to its subsidiaries. The Scheme is now pending before the High Court of Kerala.

7 The Company in its Board meeting dated May 15, 2012 has approved the plan for transferring its Engineering division to its wholly owned subsidiary and has also obtained the consent of its shareholders by way of postal ballot. The Engineering division is a separate business segment as per AS 17 "Segment Reporting". The decision is consistent with the Company''s long term strategy to focus on core plantation activity.

8 Previous year''s figures have been regrouped / rearranged wherever necessary to confrom to the current year''s presentation.


Mar 31, 2012

(i) Rights, preferences and restrictions attached to Equity shares mentioned above :

The company has only one class of equity shares having a par value of Rs.10 per share. 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.

Term loan from banks

a Loan availed Rs.5,800 Lacs during financial years 2008-09 and 2009-10 repayable in 17 quarterly instalments of Rs.322.23 Lacs repayable from April 2009 and final instalment of Rs.322.09 Lacs along with interest of BPLR minus 1.25% is secured by equitable mortgage of immovable properties of the Company situated in Wentworth Estate and Coimbatore factory and also by a charge on the movable assets of the Company situated in the above properties. Year end balance is Rs Nil Lacs (previous year Rs.3,122.16 Lacs).

b Loan availed Rs. 883.54 Lacs during financial years 2009-10 and 2010-11 repayable in 32 quarterly instalments of Rs.23.80 Lacs commencing from June 2014 and 4 quarterly instalments of Rs.30.485 Lacs commencing from 2022-23 is secured on a pari passu basis by equitable mortgage of immovable property of the Company situated in Mayfield Estate and also by a charge on the movable assets of the Company situated in the above estate. The loan carries an interest rate of 0.75% above SBAR payable on a monthly basis from disbursement of the loan. Year end balance is Rs. 883.54 Lacs (previous year Rs.883.54 Lacs).

c Loan availed Rs.290.07 Lacs during financial years 2009-10 and 2010-11 repayable in 35 quarterly instalments of Rs.8.06 Lacs commencing from June 2014 and final quarterly instalment of Rs.7.97 Lacs is secured on a pari passu basis by equitable mortgage of immovable property of the Company situated in Mayfield Estate and also by a charge on the movable assets of the Company situated in the above estate. The loan carries an interest rate of 12.50% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs.290.07 Lacs (previous year Rs.290.07 Lacs).

d Loan availed Rs.6,000.00 Lacs during 2010-11 and 2011-12 repayable in 17 quarterly instalments of Rs.333.30 Lacs commencing from September 2012 and final quarterly instalment of Rs.333.90 Lacs is secured by equitable mortgage of immovable properties of the Company situated in Kumbazha estate. The loan carries an interest rate of base rate plus 3% per annum payable on a monthly basis from disbursement of the loan. Year end balance is Rs.6,000.00 Lacs (previous year Rs.4,000.00 Lacs).

Term loan from others

e Term loan from others are secured by hypothecation of assets acquired out of these loans which are repayable in equated monthly instalments (ranging between 3 to 4 years) along with the applicable interest rates (ranging between 10.49 to 15.50 % ).

Secured by equitable mortgage of immovable properties of the Company situated in Arrapetta Estate, hypothecation of standing crop in Achoor, Arrapetta, Panniar, Mayfield , Lahai, Isfield and Nagamallay Estates and by hypothecation of stocks of tea, rubber, trading merchandise, stores and spares, book debts and other movable assets both present and future. Cash credit carries an interest within the range of 13 - 18 % p.a.

1. Land and development includes

a) Certain leasehold lands the value of which is not separately ascertainable

b) Rs. 13,957.19 Lacs added on revaluation during 1990-1991 and credited to Fixed Assets Revaluation Reserve.

c) Rs. 22,739.61 Lacs added on revaluation during 2009-2010 and credited to Fixed Assets Revaluation Reserve. The credit to Fixed Assets Revaluation Reserve has been adjusted against the excess of liabilities over the assets taken over (Rs.21,233.80 lacs) and the carrying value of investments in the shares of the wholly owned subsidiary companies (Rs. 1,218.91 lacs) and the balance amount of Rs.286.90 Lacs was transferred to Capital Reserve arising from amalgamation as per the scheme.

2. Plant and Machinery

Additions to Plant and Machinery is net of capital subsidy of Rs.72.30 lacs ( Previous year Rs. 17.92 lacs)

1.1 In keeping with the Company's gratuity scheme ( an unfunded defined benefit plan ), eligible employees are entitled for gratuity benefit (as per the Payment of Gratuity Act, 1972) on retirement/death/incapacitation/ termination. Also refer note 1.11 (ii) (c) for accounting policy relating to gratuity. Following are the further particulars with respect to gratuity:-

The estimation of future salary increase considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in employment market.

1.2 Contributions towards provident funds are recognised as expense for the year. The Company has set up Provident Fund Trust in respect of certain categories of employees which is administered by Trustees. Both the employees and the Company make monthly contributions to the Funds at specified percentage of the employee's salary and aggregate contributions along with interest thereon are paid to the employees/nominees at retirement, death or cessation of employment. The Trust invests funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of tthe Trust is not lower than the rate of interest declared annually by the Government under The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

In terms of the Guidance on implementing Accounting Standard 15 (Revised 2005) on Employee Benefits issued by the Accounting Standard Board of The Institute of Chartered Accountants of India (ICAI), a provident fund set up by the Company is defined benefit plan in view of the Company's obligation to meet shortfall, if any, on account of interest.

Unlike in earlier years, the Actuary has carried out actuarial valuation of plan's liabilities and interest rate guarantee obligations as at the balance sheet date using Project Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate obligation of the Company as at the balance sheet date. Further during the year, the Company's contribution of Rs.15.75 lacs ( Previous year - Rs.12.71 lacs) to the Provident Fund Trust has been expensed under the "Contribution to Provident Fund'. Disclosures given hereunder are restricted to the information available as per the Actuary's report.

2 Contingent Liabilities and commitments

Contingent Liabilities :

2.1 Claims against the Company not acknowledged as debt

i. Employee related 468.19 352.38

ii. Penalties under section 14B of Employees'

Provident Fund Miscellaneous Provisions Act 1952 146.04 95.59

iii. Disputed Income Tax matters 469.14 323.67

iv. Disputed Sales Tax matters - 61.53

v. Customs duty payable pending fulfillment of export obligation - 23.50

vi. The Government of Kerala had issued a notification in February 2006, enhancing the minimum wages of plantation workers which has been challenged by the Association of Planters of Kerala of which the Company was a member and an interim stay was granted by the High Court of Kerala. As the Company resigned from Association of Planters of Kerala with effect from 12.02.2007, a separate writ petition was filed and an interim stay of the Government Notification obtained. 348.49 382.75

2.2 No adjustment has been made in the accounts in respect of :

a An area of 335 hectares (approximately) declared to be vested with the Government of Tamil Nadu under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969 as this has been disputed by the company.

b An area of 1050 hectares (approximately) deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company's claim for the exclusion of the area from the purview of the Act has been upheld by the Forest Tribunal, Palghat.

c An area of 2588 hectares (approximately) liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending before High Court of Kerala.

d The Vythiri Taluk Land Board's order directing the Company to surrender 707 hectares (approximately) as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Taluk Land Board, Vythiri for fresh consideration and disposal.

e An area of 415 hectares (approximately) held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

f An area of 1460.101 hectares (approximately) in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta and Sub-Court, Sulthan Bathery.

g An area of 22.45 hectares (approximately) resumed by the Government of Kerala, as the Company's Writ Petition challenging the resumption order is pending before the High Court of Kerala.

h An area of 304 hectares (approximately) re-notified as vested forests by the Government of Kerala as the Company's Writ Petition challenging the notification is pending before the High Court of Kerala.

i An area of 4896.65 acres of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

3 Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisational structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture, Clearing and Shipping, Fruits, Spices and others and Wyanaad Medical Fund. The geographical segments are identified on the basis of the location of customers.

(a) Primary Segment Information - By Business Segments *

All operating facilities are located in India.

* Figures in bracket represent previous year's figures

4 Related Party Disclosures

a List of Related Parties where control exists (Wholly Owned Subsidiaries)

HML Engineering Company Limited (HECL) effective June 6, 2011 Enchanting Plantations Limited (EPL) effective February 8, 2012 Harmony Plantations Limited (HPL) effective February 12, 2012 Malayalam Plantations Limited (MPL) effective November 11, 2011

b Key management personnel

Mr. Pankaj Kapoor (Managing Director)

5. Change in Accounting Estimate

During the year the Company has reassessed the useful life of depreciable fixed assets based on economic benefits derived from these assets. Based on this reassessment, depreciation rate for Furniture and Fittings has been revised from 18.10% to 33.33% (under written down value method). As a result of this change, the depreciation charge has increased by Rs.9.28 lacs with corresponding impact on the profit for the year.

6. Taxation

a The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

b No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

c The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 "Accounting for Taxes on Income" in the absence of virtual/ reasonable certainty that sufficient future taxable income will be available against which such asset could be realised.

d The company has not recognized MAT credit on a prudent basis in the absence of reasonable certainty that sufficient future tax profit against which such credit could be realised.

7. The Company in its Board meeting dated May 15, 2012 has decided to obtain the consent of its shareholders by way of postal ballot for transferring its Engineering Division to its wholly owned subsidiary HML Engineering Company Limited and the same has been subsequently sanctioned by the shareholders. Also refer note 37 for results and capital employed of the Engineering Division.

8. The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per the Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for the previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2011

As at As at

March 31,2011 March 31,2010

Rs. Lacs Rs. Lacs 1. Contingent Liabilities

i. Claims against the Company not acknowledged as debt

A Employee related 352.38 206.21

B Interest @12% on Levy of damages under section 14B of Employees' Provident Fund Miscellaneous Provisions Act 1952. 95.59 81.50

ii. Disputed Sales Tax/ Income Tax demands 385.20 69.53

iii. Customs Duty payable, pending fulfillment of export obligation 23.50 23.50

iv. The Government of Kerala had issued a notification in February 2006, enhancing the minimum wages of plantation workers which has been challenged by the Association of Planters of Kerala of which the Company was a member and an interim stay was granted by the High Court of Kerala. As the Company resigned from Association of Planters of Kerala with effect from 12.02.2007, a separate writ petition was filed and an interim stay of the Government Notification obtained. The possible impact would be Rs. 822.75 Lacs (Previous year Rs.822.75 Lacs), against which an amount of Rs 489.04 Lacs has been paid as advance which has not been expensed as the Company has been legally advised that the claim is not maintainable.

2. No adjustment has been made in the accounts in respect of:

(a) An area of 398 hectares (approximately) declared to be vested with the Government of Tamil Nadu under the provisions of the Gudalur Jenmam Estate (Abolition and Conversion into Ryotwari) Act, 1969 as this has been disputed by the company.

(b) An area of 1050 hectares (approximately) deemed to have been vested with the Government of Kerala pursuant to Kerala Private Forests (Vesting and Assignment) Act, 1971, as the Company's claim for the exclusion of the area from the purview of the Act has been upheld by the Forest Tribunal, Palghat.

(c) An area of 2588 hectares (approximately) liable to be surrendered to the Government of Kerala under the Kerala Private Forests (Vesting and Assignment) Act, 1971, as the appeals relating to this area are pending before Supreme Court of India.

(d) The Vythiri Taluk Land Board's order directing the Company to surrender 707 hectares (approximately) as excess land under the Kerala Land Reforms Act, 1963 has been set aside by the High Court of Kerala on a revision petition filed by the Company and the matter has been remanded to the Taluk Land Board, Vythiri for fresh consideration and disposal.

(e) An area of 415 hectares (approximately) held to be surplus under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 as the Special Land Tribunal, Madras has remanded the matter for fresh consideration by the Authorised Officer, Coimbatore.

(f) An area of 1435 hectares (approximately) in respect of which cases filed by Janmies (original owners) of Lahai, Koney and Arrapetta Estates challenging the validity of the lease is pending before the Sub-Court, Pathanamthitta and Sub-Court, Sulthan Bathery.

(g) An area of 22.45 hectares (approximately) resumed by the Government of Kerala, as the Company's Writ Petition challenging the resumption order is pending before the High Court of Kerala

(h) An area of 304 hectares (approximately) re-notified as vested forests by the Government of Kerala as the Company's Writ Petition challenging the notification is pending before the High Court of Kerala.

(i) An area of 4896.65 acres of Mooply Valley estates notified by the Government of Kerala for resumption alleging violation of lease conditions as proceedings has been stayed by the Sub Court, Irinjalakuda.

3. Segment Reporting

The Company has considered business segments as the primary segment and geographical segments as the secondary segments. The business segments are: Tea, Rubber, Engineering and others which have been identified taking into account the organisation structure as well as the differing risks and returns of these segments. Other segments comprise of Plant Tissue Culture and Clearing and Shipping. The geographical segments are identified on the basis of location of customers.

4. Related Party Disclosures

a) Key management personnel

Mr. Sanjiv Goenka (Chairman)

Mr. Pankaj Kapoor (Managing Director)

b) The above information regarding related parties have been determined to the extent such parties have been identified on the basis of information available with the Company.

5. Taxation

(a) The Company is liable to pay Minimum Alternate Tax under section 115JB of the Income Tax Act, 1961 based on which the current tax has been computed and provided in the accounts.

(b) No provision for Agricultural Income Tax has been considered necessary in view of the carry forward losses.

(c) The Company has not recognised any Deferred Tax Asset in respect of unabsorbed depreciation/ brought forward losses and other timing differences in accordance with Accounting Standard 22 'Accounting for Taxes on Income" in the absence of virtual certainty that sufficient future taxable income will be available against which such asset could be realised.

(d) The company has not recognized MAT credit in the absence of reasonable certainty that sufficient future tax profit will be available against which such credit could be adjusted.

6. Previous year's figures have been regrouped/ reclassified wherever necessary to conform to the current year's presentation.


Mar 31, 2010

1.1 Contingent Liabilities

1.1.1 1,623,734 shares of CESC Ltd., having a cost of Rs. 353,811,639/- is pledged with IDBI Trusteeship Services Limited as a borrowing arrangement of CESC Ltd.

1.1.2 Disputed income tax dues relating to AY 1999 - 00 amounting to Rs. 8,680 for which a rectification application is still pending before the assessing authority

1.2 Segment Reporting

The Companys income for the year consisted of dividend income and accordingly there are no reportable segments.

1.3 Related Party Transactions

Disclosure of Related Party Transaction in accordance with Accounting Standard (AS-18) "Related Party Disclosures" issued by the Institute of Chartered Accountants of India:

Name of the Company Relationship

Harrisons Malayalam Ltd. Holding Company (Till April 1, 2009) Associate (From April 2, 2009)

1.4 Deferred Tax

Deferred tax asset on account of unabsorbed tax losses is not recognized during the year since there is no virtual certainty of taxable profits in the foreseeable future which would offset the asset as the Company.has mainly one source of income being dividend which is exempt under Income Tax Act.

1.5 Previous years figures have been regrouped / reclassified wherever necessary to conform to the classification for the year.

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