3.14. Provisions, Contingent Liabilities and Contingent Assets

3.14.1. Provisions

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event
and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. Provisions are determined by
discounting the expected future cash flows (representing the best estimate of the expenditure required to set¬
tle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments
of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized
as finance cost.

3.14.2. Contingent Liabilities

Contingent liability is a possible obligation arising from past events and the existence of which will be con¬
firmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events but is not recognized because
it is not possible that an outflow of resources embodying economic benefit will be required to settle the ob¬
ligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the
existence of contingent liabilities in Other Notes to Financial Statements.

3.14.3. Contingent Assets

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of
an inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow
of economic benefits is probable.

3.15. Intangible Assets

3.15.1. Recognition and Measurement

Software which is not an integral part of related hardware, is treated as intangible asset and are stated at cost
on initial recognition and subsequently measured at cost less accumulated amortization and accumulated
impairment loss, if any.

3.15.2. Subsequent Expenditure

Subsequent costs are included in the asset's carrying amount, only when it is probable that future economic
benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured
reliably. All other expenditure is recognized in the Statement of Profit & Loss.

3.15.3. Amortization

> Intangible assets are amortized over their estimated useful lives.

> The amortization period and the amortization method are reviewed at least at the end of each financial
year. If the expected useful life of the assets is significantly different from previous estimates, the amor¬
tization period is changed accordingly.

3.15.4. Intangible Assets under Development

Intangible Assets under development is stated at cost which includes expenses incurred in connection with
development of Intangible Assets in so far as such expenses relate to the period prior to the getting the assets
ready for use.

3.16. Biological Assets and Agricultural Produce

3.16.1. Biological Assets

Biological assets of the company comprise of un-harvested green tea leaves that are classified as current bio¬
logical assets.

The Company recognizes biological assets when, and only when, the Company controls the assets as a result
of past events, it is probable that future economic benefits associated with such assets will flow to the compa¬
ny and the fair value or cost of the assets can be measured reliably. Expenditure incurred on biological assets
is measured on initial recognition and at the end of each reporting period at its fair value less costs to sell. The
gain or loss arising from a change in fair value less cost to sell of biological assets is included in Statement of
Profit and Loss for the period in which it arises.

3.16.2. Agricultural Produce

The Company recognizes agricultural produce when, and only when, the Company controls the assets as a
result of past events, it is probable that future economic benefits associated with such assets will flow to the
Company and the fair value or the cost of the assets can be measured reliably. Agricultural produce harvested
from the Company's biological assets are valued at fair value less cost to sell at the point of harvest. A gain or
loss arising on initial recognition of agricultural produce at fair value less cost to sell shall be included in State¬
ment of Profit & Loss for the period in which it arises.

The Company's agricultural produce comprises of green leaves plucked from its tea estate.

3.17. Operating Segment

Operating Segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker (CODM). The CODM, who is responsible for allocating resources and assessing per¬
formance of the operating segments, has been identified as the Board of Directors. Segments are organized
based on businesses which have similar economic characteristics as well as exhibit similarities in nature of
production processes, the type and class of customer and distribution methods. Accordingly, the company
has only one segment i.e., Manufacturing of Black Tea.

4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES

Estimates and judgements are continually evaluated. They are based on historical experience and other fac¬
tors, including expectations of future events that may have a financial impact on the Company and that are
believed to be reasonable under the circumstances. Information about Significant judgements and Key sourc¬
es of estimation made in applying accounting policies that have the most significant effects on the amounts
recognized in the financial statements is included in the following notes:

> Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based
on an assessment of the probability of the Company's future taxable income against which the deferred
tax assets can be utilized. In addition, significant judgement is required in assessing the impact of any
legal or economic limits.

> Useful lives of depreciable/ amortisable assets (tangible and intangible): Management reviews its
estimate of the useful lives of depreciable/ amortisable assets at each reporting date, based on the ex¬
pected utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that
may change the utility of plant and equipment.

> Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuar¬
ial assumptions which include mortality and withdrawal rates as well as assumptions concerning future
developments in discount rates, medical cost trends, anticipation of future salary increases and the infla¬
tion rate. The Company considers that the assumptions used to measure its obligations are appropriate.
However, any changes in these assumptions may have a material impact on the resulting calculations.

> Provisions and Contingencies: The assessments undertaken in recognising provisions and contingen¬
cies have been made in accordance with Indian Accounting Standards (Ind AS) 37, 'Provisions, Contin¬
gent Liabilities and Contingent Assets'. The evaluation of the likelihood of the contingent events is ap¬
plied best judgement by management regarding the probability of exposure to potential loss.

> Impairment of Financial Assets: The Company reviews its carrying value of investments carried at am¬
ortized cost annually, or more frequently when there is indication of impairment. If recoverable amount
is less than its carrying amount, the impairment loss is accounted for.

> Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropri¬
ate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment
and estimates. Where the expectation is different from the original estimate, such difference will impact
the carrying value of the trade and other receivables and doubtful debts expenses in the period in which
such estimate has been changed.

> Fair value measurement of financial Instruments: When the fair values of financial assets and finan¬
cial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active mar¬
kets, their fair value is measured using valuation techniques including the Discounted Cash Flow model.
The input to these models are taken from observable markets where possible, but where this not feasi¬
ble, a degree of judgement is required in establishing fair values. Judgements include considerations of
inputs such as liquidity risk, credit risk and volatility.

> Fair Value of Biological Assets: The fair value of Biological Assets is determined based on recent trans¬
actions entered into with third parties or available market price.

18.4Terms/ Rights attached to Equity Shares :

The Company has only one class of Ordinary Equity Share having a face value of ' 10 per share and each holder
of Ordinary Equity Share is entitled to one vote per share. The Company declares and pays dividends in Indian
Rupees. The dividend proposed by the Board of Directors (except interim dividend) is subject to the approval of
the shareholders in the Annual General Meeting. The claim of Ordinary Equity Shareholders on earnings and on
assets in the event of liquidation, follows all others, in proportion to their shareholding.

18.5Shareholding Pattern with respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.

20.3 Details of Security Given for Loan

Term Loan from Punjab National Bank is secured by hypothecation of green tea leaves, before and after pluck¬
ing, teas in process, finished tea in stock/transit or tea lying with brokers , book debts (present and future) and
by way of equitable mortgage of immovable properties and machineries of Mackeypore & Lakmijan Tea Estate
as collateral security and further guaranteed by two directors of the Company.

20.4 Refer note no. 38 for information on the carrying amounts of financial and non-financial assets pledged as secu¬
rity for the non-current borrowings.

20.5 The statements of current assets filed by the Company with the bank are in agreement with the books of ac¬
counts.

20.7 The Company has not been declared as a wilful defaulter by any bank or other lender in accordance with the
guidelines on wilful defaulters issued by the Reserve Bank of India.

25.2Terms and conditions of Short Term Borrowings

a Cash Credit from Punjab National Bank is secured by hypothecation of green tea leaves, before and after pluck¬
ing, teas in process, finished tea in stock/transit, tea lying with brokers/agents awaiting sale, other tea stocks,
book debts (present and future) arising out of sale of teas, first charge over all current assets (both present and
future) pertaining to Mackeypore and Lakmijan Tea Estate and equitable mortgage of immovable properties
and machineries of Mackeypore and Lakmijan Tea Estate as collateral security and further guaranteed by two
directors of the Company.

b Interest on Cash Credit Loan @9% p.a. and the same is repayable on demand.

c The statements of current assets filed by the Company with the bank are in agreement with the books of ac¬
counts.

d The Company has not been declared as a wilful defaulter by any bank or other lender in accordance with the
guidelines on wilful defaulters issued by the Reserve Bank of India.

The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life
Insurance Corporation (LIC) of India . The information on the allocation of the fund into major asset classes and
expected return on each major class are not readily available. The expected rate of return on plan assets is based on
market expectations, at the beginning of the period, for returns over the entire life of the related obligation.

39.2.9 Asset-Liability Matching Strategy

The company ensures that the investment positions are managed within an asset-liability matching (ALM) framework
that has been developed to achieve long-term investments that are in line with the obligations under the employee
benefit plans. Within this framework, the company's ALM objective is to match assets to the obligations under
Gratuity Scheme by investing the entire fund with LIC of India.

The Company actively monitors how the return on funds invested with LIC of India are matching the expected cash
outflows arising from the employee defined benefit obligation. The company has not changed the processes used to
manage its risks from previous periods.

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

39.2.12 At 31st March 2025, the weighted average duration of the defined benefit obligation was 5 years (previous
year 9 years). The distribution of the timing of benefits payment i.e., the maturity analysis of the benefit payments is
as follows:

43.2 The management assessed that the fair values of cash and cash equivalents, trade receivables, trade payables,
short term borrowings, and other financial liabilities approximates their carrying amounts largely due to the
short-term maturities of these instruments.

43.3 For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair
values.

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

43.5 The following methods and assumptions were used to estimate the fair values:

The fair values for loans, security deposits were calculated based on cash flows discounted using a current lend¬
ing rate. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable
inputs including counterparty credit risks, which has been assessed to be insignificant.

44 Fair Value Hierarchy

The following are the judgements and estimates made in determining the fair values of the financial instru¬
ments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which
fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs
used in determining fair value, the Company has classified its financial instruments into three levels of fair value
measurement as prescribed under the Ind AS 113"Fair Value Measurement". An explanation of each level follows
underneath the tables.

44.3 During the year ended March 31, 2025 and March 31,2024, there were no transfers between Level 1 and Level 2
fair value measurements, and no transfer into and out of Level 3 fair value measurements.

44.4Explanation to the fair value hierarchy

The Company measures financial instruments, such as, quoted investments at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within the fair value hierarchy as described in Note no. 2.7

45 Financial Risk Management

The Company measures financial instruments, such as, quoted investments at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the fair value measurement as a whole.

45.1 Credit Risk

Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial
obligations as per the terms of contract. The Company is exposed to credit risk for receivables, Cash & Cash
equivalents, financial guarantees and derivative financial instruments. None of the financial instruments of the
Company result in material concentration of credit risks.

Credit risk on receivables is minimum since sales through different mode (auction, private ) are made after judg¬
ing credit worthiness of the customers or, advance payment. The history of defaults has been minimal and out¬
standing receivables are regularly monitored. For credit risk on the loans to parties, the Company is not expect¬
ing any material risk on account of non-performance by any of the parties.

For financial instruments, the Company manages its credit risks by dealing with reputable banks and financial
institutions. Credit risk from balances with banks and financial institutions is managed by the Company's
treasury department in accordance with the Company's policy. Investments of surplus funds are made only with
approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimize
the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make
payments.

45.2 Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company monitors
rolling forecast of its liquidity position on the basis of expected cash flows. The Company's approach is to ensure that
it has sufficient liquidity or borrowing headroom to meet its obligations at all point in time. The Company has
sufficient short-term fund based lines, which provides healthy liquidity and these carry highest quality credit rating
from reputed credit rating agency.

45.2.1 Fund Management

Management monitors rolling forecasts of the Company's liquidity position (including the undrawn credit facilities
extended by banks and financial institutions) and Cash & Cash equivalents on the basis of expected cash flows. In
addition, the Company's liquidity management policy involves projecting cash flows and considering the level
of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external reg¬
ulatory requirements and maintaining debt financing plans.

45.3 Market Risk

45.3.1 Foreign Exchange Risk

The Company operates in domestic market and it doesn't have any foreign associate, subsidiary etc. The Company is

therefore not exposed to foreign exchange risk arising from foreign currency transactions.

a Exposure to Currency risk- Nil

b Sensitivity Analysis

Since, the Company doesn't have material foreign currency operations, the analysis is not reported.

45.3.2 Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation, on the following:

a Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rate of interest.
However, Company does not have any interest bearing financial asset or liability at the end of the financial year
ended 31st March 2025.

b The interest rate risk can also impact the provision for retiral benefits. The Company generally utilizes variable
rate borrowings and therefore subject to interest rate risk, as both the carrying amount and the future cash flows
will fluctuate because of change in the market interest rates.

49 Capital Management

The Company's objective for capital management is to maximize shareholder wealth, safeguard business conti¬
nuity and support the growth of the Company. The Company determines the capital management requirement
based on annual operating plans and long-term and other strategic investment plans. The funding requirements
are met through optimum mix of borrowed and own funds.

Notes-

(i) The change in ratio resulted from losses suffered by the company during the year under review.

51 On the basis or notification dated 28th June, 2023 by Govt of Assam providing 3 year tax holiday on Agricultural
Income Tax, no provision on agricultural income tax has been made for the year ended 31st March, 2025.

52 There are no transactions that have been surrendered or disclosed as income during the year In the tax assess¬
ments under the Income Tax Act,1961, which have not been recorded in the books of account.

53 The company does not have any transactions or relationships with any companies struck off under Section 248
of the Companies Act,2013 or Section 560 of the Companies Act,1956.

54 The other prescribed clauses as prescribed under other regulatory information for the year ended 31st March,
2025 being not applicable have not been given.

55 Previous year figures have been re-classified/re-grouped to confirm the presentation requirements under IND
AS and the requirements laid down in Division-II of the Schedule-III of the Companies Act, 2013.

The Notes are an integral part of the Financial Statements
As per our Report annexed of even date

For NKSJ & ASSOCIATES

Chartered Accountants

Firm Registration No. 329563E U. KANORIA

UDIN: 25234454BMLGZA4007 Chairman & Managing Director

(DIN: 00081108)

CA. Sneha Jain

Partner C. KABRA S. K. PARHI

Membership No. 234454 Company Secretary Chief Financial Officer

Kolkata

Dated the 30th day of May, 2025