Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow ofresources will be required to settle the obligation and in respect of which reliable estimate can be made.
Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will beconfirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of theCompany or a present obligation that arises from past events where it is either not probable that an outflow of resources will berequired to settle the obligation or reliable estimate of the amount cannot be made.
q) Earnings per share
Basic Earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by theweighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company'searnings per share is the net profit for the period.
For the purpose of calculating the diluted earnings per share the net profit or loss for the period attributable to the equityshareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutivepotential equity shares.
r) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmaker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of theoperating segments, has been identified as the Chairman and Managing Director.
s) Use of estimates and critical accounting judgments
In preparation of the financial statements, the Company makes judgments, estimates and assumptions about the carryingvalues of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptionsare based on historical experience and other factors that are considered to be relevant. Actual results may differ from theseestimates.
The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates arerecognized in the period in which the estimate is revised and future periods affected.
Significant judgments and estimates relating to the carrying values of assets and liabilities include
i. Useful lives of property, plant and equipment - Note 3(a)
ii. Fair valuation of Investment Properties and Unquoted Investments - Note 3(d) and 5
iii. Provisions - Note 21
iv. Current tax and deferred tax - Note 9
v. Valuation of Biological assets and harvested tea leaves (agricultural produce) - Note 42
vi. Impairment of Investments Note 5, Property, plant and equipment Note 3(a), Right of use assets Note 3(b), Capital Work-in¬progress Note 3(c), Investment properties Note 3(d) and Trade receivables Note 6
vii. Provisions and Contingencies related to litigations and claims- Note 35
t) Rounding off amount
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirementof schedule III, unless otherwise stated.
u) Recent Pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to existing standards under Companies (IndianAccounting Standards) Rules as issued from time to time. For the year ended 31st March 2025, MCA has not notified any newstandards or amendments to the existing standards applicable to the Company.
(i) General reserve
Under the erstwhile Indian Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentagein accordance with applicable regulations. Consequent to introduction of Companies Act, 2013, the requirement to mandatory transfer aspecified percentage of the net profit to general reserve has been withdrawn though the Company may transfer such percentage of its profitsfor the financial year as it may consider appropriate. Declaration of dividend out of such reserve shall not be made except in accordance withrules prescribed in this behalf under the Act.
(ii) Fair value through other comprehensive income (FVOCI)- equity instruments
The Company has elected to recognise changes in the fair value of certain investments in equity instruments through other comprehensiveincome. These changes are accumulated within the FVOCI equity instruments reserve. The Company transfers amounts from this reserve toretained earnings when the relevant equity instruments are derecognised.
(iii) Retained earning
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributionspaid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassifiedto Statement of Profit and Loss.
(i) Auto Loan from a bankNature of Security
Auto loans from bank are secured by hypothecation of respective vehicles.
Repayment and other terms
(i) Auto loan from Bank is repayable in 60 instalments of Rs. 0.55 lakhs (31 March 2024: Rs. 0.55 lakhs) each starting from January 7, 2022and interest rate of 7% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 10.77 lakhs (31 March 2024:16.36 lakhs) (Maturity Date:07-12-2026)
(ii) Auto loan from Bank is repayable in 39 instalments of Rs. 0.77 lakhs (31 March 2024: Nil) each starting from October 5, 2024 andinterest rate of 8.95% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 22.47 lakhs (31 March 2024: Nil)(Maturity Date:05-12-2027)
(ii) Agri Infra Fund Term Loan (AIFTL)
Nature of Security
Secured by first charge by way of hypothecation over the entire current assets of the Company ranking pari passu with other consortiumBanks as primary security. Secured by a first hypothecation charge on the immovable properties and movable fixed assets of the Companyranking pari passu with other consortium banks as collateral security.
(i) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 2.47 lakhs (31 March 2024: Rs. 0.99 lakhs) each starting fromOctober 25, 2025 and interest rate of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 119.19 lakhs(31 March 2024: 47.53 lakhs) (Maturity Date:25-09-2030)
(ii) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 3.71 lakhs (31 March 2024: Rs. 3.71 lakhs) each startingfrom November 10, 2025 and interest rate of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 178.65lakhs (31 March 2024: Rs. 178.65 lakhs) (Maturity Date:25-11-2030)
(iii) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 4.15 lakhs (31 March 2024: Rs. 4.15 lakhs) each startingfrom December 10, 2025 and interest rate of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 200.00lakhs (31 March 2024: Rs. 200.00 lakhs) (Maturity Date:10-10-2030)
(iv) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 4.15 lakhs (31 March 2024: Rs. 4.15 lakhs) each startingfrom December 25, 2025 and interest rate of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 200.00lakhs (31 March 2024: 200.00 lakhs) (Maturity Date:10-11-2030)
(v) AIFTL Agri Infra term loan from Bank is repayable in 60 instalments of Rs. 2.54 lakhs (31 March 2024: Rs. 1.63 lakhs) each starting fromJanuary 15, 2026 and interest rate of 9% p.a. is payable on a monthly basis. The outstanding balance as at year end is Rs. 122.50 lakhs(31 March 2024: Rs. 78.75 lakhs) (Maturity Date:15-12-2030)
(vi) The instalment amounts mentioned above also includes interest.
(i) Loans repayable on demand from Banks are secured by a first hypothecation charge on the current assets of the Company, viz. stock of rawmaterials, finished goods, stores and spares not relating to plant and machinery, bills receivable, book debts and all other movables, bothpresent and future, wherever situated. Secured by a first hypothecation charge on the movable fixed assets of the Company and equitablemortgage over the immovable properties by deposit of title deeds of tea estates.
Rate of Interest
Loan from Bank is availed as per the requirements of the Company at interest rates mutually agreed at the time of drawing the facility withinterest rates varying from 7.98% to 9.50%
(ii) Unsecured loan from related parties will be due in a year and payable at one go along with interest @8% p.a
(c) The Company has not defaulted on repayment of any borrowings and interest therof.
(d) The Company has been sanctioned working capital limits in excess of Rs. five crores in aggregate from banks during the year on the basisof security of current assets of the Company. The quarterly returns/statements filed by the Company with such banks are in agreementwith the books of accounts of the Company.
The undiscounted amount of Short-term Employee Benefits expected to be paid in exchange for the services rendered by employees isrecognised during the period when the employee renders the service.
(b) Compensated Absences
Compensated absences cover the Company's liability for sick and earned leave. As the Company does not have an unconditional right to deferthe payment beyond 12 months the entire amount has been treated as current.
(ii) Defined contribution plan
Provident Fund: The Company contributes 12% of the basic salary of employees towards Provident Fund Scheme to the relevant providentfund authorities (Regional Provident Fund Commissioner/ Assam Tea Plantation Provident Fund account).
The Company contributed Rs. 2,010.43 and Rs. 2,034.41 lakhs during the year ended 31 March 2025 and 31 March 2024 respectively.
Superannuation Fund: The Company provides for Superannuation benefit to certain employees wherein 15% of basic salary is funded withLife Insurance Corporation of India.
The Company contributed Rs. 2.59 lakhs and Rs. 2.09 lakhs during the year ended 31 March 2025 and 31 March 2024 respectively.
Others: Others consist of company and employee's contribution to:
Employees Pension Scheme [Total amount charged to the statement of Profit and Loss for the year Rs. 10.33 lakhs (2023-24 Rs.11.08 lakhs)]Employees State Insurance [Total amount charged to the statement of Profit and Loss for the year Rs. 0.58 lakhs (2023-24 Rs. 0.66 lakhs)]
Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:
Investment risk:
If plan is funded, then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuationdate can impact the liability.
Interest risk:
A decrease in the interest rate on plan assets will increase the plan liability.
Life expectancy:
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants bothduring and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.
Salary growth risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salaryof the plan participants will increase the plan liability.
Expected contributions to post-employment benefits plans for the year ending 31 March 2025 is Rs. 2,950.46 lakhs (31 March 2024 :Rs 3,016.39 lakhs).
The weighted average duration of the defined benefit obligation is 7 years (31 March 2024 - 7 years).
The company’s objectives when managing capital are to:
(a) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for otherstakeholders, and
(b) maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital toshareholders or issue new shares.
The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors andmarket confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain,or if necessary adjust, its capital structure.
The capital structure of the Company consists of debt, cash and cash equivalents and equity attributable to equity shareholders of the Companywhich comprises issued share capital and accumulated reserves disclosed in the Statement of Changes in Equity.
Consistent with others in the industry, the Company monitors capital on the basis of net debt to equity ratio and maturity profile of overall debtportfolio of the Company.
Net Debt implies borrowings including interest accrued on borrowings of the Company as reduced by Cash and Cash Equivalents and Equitycomprises all components attributable to the owners of the Company.
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and financial liabilitiesmeasured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using avaluation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrumentnor are they based on available market data. This level of hierarchy includes Company’s investment in equity shares which are unquoted or forwhich quoted prices are not available at the reporting dates.
There is no transfer during the year between level 1, level 2 and level 3 with reference to financial instruments and biological assets other thanbearer plants.
(iii) Valuation technique used to determine fair value
Specific valuation technique used to determine fair value includes:
(a) Investments carried at fair value are generally based on market price quotations. However in cases where quoted prices are not available themanagement has involved valuation experts to help in determining the fair value of the investments. Fair value of biological assets other thanbearer plant are arrived at based on observable market price of green leaves.
(b) The carrying amounts of other financial assets and liabilities carried at amortised cost closely approximate their fair values. The impact ofdiscounting on such financial assets or liabilities is not significant due to the market terms (rates and tenor) available and because the instrumentsare short term in nature or do not have any fixed contractual maturities.
(c) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations inany estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarilyindicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financialinstruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
(iv) Equity Instruments carried at fair value through other comprehensive income
These investments in equity shares are not held for trading. Instead, they are held for long term purpose. The Company has chosen to designatethese investments in equity instruments at FVOCI since, it provides a more meaningful presentation.
In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, whichmay adversely impact the fair value of its financial instruments. In order to minimise any adverse effects on the financial performance of theCompany, the company has risk management policies as described below :-
(A) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financialloss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) including deposits with banks and financialinstitutions and other financial instruments carried at amortised cost and financial guarantees.
Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables,investments, other financial assets and cash and cash equivalents held by the Company. None of the financial instruments of the Company resultin material concentration of credit risk.
The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was Rs. 15311.31 lakhs, Rs.13997.21 lakhs, as at 31 March 2025 and 31 March 2024 respectively, being the total carrying value of financial assets excluding cash onhand.
i) Trade and other receivables
Credit risk on receivables is minimum since sales through different mode (eg. auction, consignment, private) are made after judging creditworthiness of the customers or advance payment. The history of defaults has been minimal and outstanding receivables are regularly monitored.
For credit risk on the loans to employees, the Company is not expecting any material risk on account of non-performance by any of theparties. Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance withthe Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to eachcounterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potentialfailure to make payments.
Liquidity risk refers to the risk that the Company may encounter difficulty in meeting its financial obligations in accordance with terms ofcontract. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding throughan adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Management monitors rolling forecasts of the company's liquidity position (including the undrawn credit facilities extended by banks and financialinstitutions) and cash and cash equivalents on the basis of expected cash flows. In addition, the Company's liquidity management policy involvesprojecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios againstinternal and external regulatory requirements and maintaining debt financing plans.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interestrates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligationswith floating interest rates.
The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interestrate risk. During 31 March, 2025 and 31 March, 2024, the Company’s borrowings at variable rate were denominated in Rupees.
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,since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
(a) Exposure
The Company’s exposure to equity securities & mutual funds price risk arises from investments held by the Company and classified in thebalance sheet at fair value through Other Comprehensive Income or at Fair Value through Profit & Loss Account. To manage its price risk arisingfrom investments in equity securities & mutual funds, the Company diversifies its portfolio. Diversification of the portfolio is done in accordancewith the limits set by the Company. In general, these investments are not held for trading purposes.
The company does not hold any quoted investments as on 31st March 2025 and 31st March 2024.
(iii) Foreign currency risk
The company deals with foreign currency loan, trade and other receivables, cash and cash equivalents, trade payables, etc. and is thereforeexposed to foreign exchange risk associated with exchange rate movement.
The company is is exposed to foreign exchange risk through its borrowings. The management regularly monitors the currency movement tomanage its currency risk.
Cultivation of tea being an agricultural activity, there are certain specific financial risks. These financial risks arise mainly due to adverse
weather conditions, logistic problems inherent to remote areas, and fluctuation of selling price of finished goods (tea) due to changes in supply/
availability.
The Company manages the above financial risks in the following manner:
• Sufficient inventory levels of agro chemicals, fertilizers and other inputs are maintained so that timely corrective action can be taken in caseof adverse weather conditions.
• Sufficient level of consumable stores viz packing materials, coal and HSD are maintained in order to mitigate financial risk arising fromlogistics problems.
• Sufficient working-capital-facility is obtained from banks in such a way that cultivation, manufacture and sale of tea is not adversely affectedeven in times of adverse conditions.
Note 40: Segment reporting
The Company's chief operating decision maker viz. Chairman and Managing Director examine the Company's performance as a single segment,
viz. "Growing, harvesting and sale of loose and packet tea and other allied services relating to plantation sector”.
@ Represents remuneration to key managerial person
# Includes Rent paid against leased assets has been accounted for in accordance with Indian Accounting Standards 116 (Ind AS 116, Leases w.e.f. 01-04¬2019)
Transactions related to dividend were on the same terms and conditions that applied to other shareholders. The other transactions are made in the ordinarycourse of business. Outstanding balances at the year end are unsecured. No provision are held against receivable from related parties. All the transactionsmentioned above are inclusive of GST, where applicable.
The carrying amount of the biological assets other than bearer plants as per note 12 of these Standalone Financial Statements amounts toRs. 160.50 lakhs (31 March 2024 Rs. 91.32 lakhs)
The carrying amount of the Finished Goods (Inventories) as per Note 11 of these Standalone Financial Statements amounts to Rs. 1,285.43lakhs (PY Rs. 2,203.94 lakhs). The same comprise of Tea made out of tea leaves harvested from own gardens ("agricultural produce”)amounting to Rs. 1,246.64 lakhs (PY Rs. 1,058.05 lakhs), Tea made out of purchased tea leaves amounting to Rs. Nil (PY Rs. 613.78 lakhs)and Tea purchased amounting to Rs. 38.79 lakhs (PY Rs. 532.09 lakhs).
The biological assets ("Tea leaves growing on tea bushes”) and agricultural produce used in the production of finished goods of tea used in suchinventory are stated at fair value less costs to sell. Such inventory of Tea is carried at the lower of cost and net realizable value. The same isapplying the principles of Ind AS 41 and Ind AS 2.
The valuation of biological assets and agricultural produce used in the production of finished goods (Tea) involves judgements in the considerationof factors used in the determination of fair value of such agricultural produce. The company considers various factors such as comparing theactual selling prices prevailing around year end for completed seasonal cycle, including technical factors which determine the quality and hencethe fair value of biological assets and agricultural produce. The said practice is consistently practiced followed by the company.
The Company’s lease contract which qualifies as leases under Ind AS 116, are majorly in respect of leases for Buildings, Plant & equipmentsand Furniture & fixtures. The movement in right of use assets and lease liability during the year is given below:-
Note 45: The Company had acquired certain tea estates in the Financial Year 2022-23 wherein the Company had taken over the outstandingEmployees Provident Fund liabilities for the respective gardens as on January 01, 2023 from the erstwhile owner. As agreed with ProvidentFund authorities, the Company is in the process of discharging such liabilities in the specified number of instalments. The balance outstandingof such Provident Fund liability is Rs. 134.44 lakhs as on March 31, 2025 (March 31, 2024: Rs. 457.42 lakhs). The Company has been regularin depositing the Provident Fund liabilities of January 2023 onwards for the respective tea estates.
(i) The Company does not have any transactions with companies struck off.
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC (Registrar of Companies) beyond the statutoryperiod.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding(whether recorded in writing or otherwise) that the Company shall directly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of theUltimate Beneficiaries.
(v) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds)to any other person or entity, including foreign entities ("Intermediaries") with the understanding (whether recorded in writing or otherwise) thatthe Intermediary shall, whether directly or indirectly lend or invest in other persons/entities identified in any other manner whatsoever by or onbehalf of the Company ('ultimate beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries . However,the Company has invested Rs. 1,283.97 lakhs during the year (PY Rs. 830.62 lakhs) to Dhunseri Petrochem Tea & Pte Limited, a wholly ownedsubsidiary in the ordinary course of business and in keeping with the applicable regulatory requirements for onward funding to a overseasstep-down wholly owned subsidiary of the Company towards meeting their business requirements. Accordingly, no further disclosures, in thismatter is required.
(vi) The Company has complied with the relevant provision of Foreign Exchange Management Act, 1999 (42 of 1999) and the Companies Act2013, for the above transaction and the transactions are not violative of the prevention of Money-laundering Act, 2002(15 of 2003)
(vii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessmentsunder the Income Tax Act, 1961 as income during the year.
(viii) There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act, 1988 and rules made thereunder.
(ix) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(x) The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facilityand the same has operated throughout the year for all relevant transactions recorded in the software except that, audit trail feature is notenabled for direct changes to data when using certain access rights, due to technical reasons. Pursuant to implementation of new ERP in thecurrent year, the Company is in the process of establishing necessary controls and documentation regarding maintenance of audit trail. Further,no instance of audit trail feature being tampered with was noted in respect of those accounting software where the audit trail has been enabled.
Additionally, the audit trail feature in the accounting software was not enabled in the previous year and hence the audit trail in respect of the yearended March 31, 2024 has not been preserved by the Company as per the statutory requirements for record retention.
(xi) The Company has defined process to take daily back-up of books of account maintained electronically and maintain the back-up of suchbooks of account on the servers located outside India. Pursuant to implementation of new ERP in the current year, the Company is in the processof establishing necessary controls and documentations regarding back up to ensure that logs of daily back up for books of account is maintainedon a daily basis for all its locations.
As per our report of even date attached For and on behalf of the Board of Directors of
Dhunseri Tea & Industries Limited
For S.R. Batliboi & CO. LLP C. K. Dhanuka Siddhartha Rampuria
Chartered Accountants Managing Director Director
Firm Registration No. 301003E/E300005 (DIN - 00005684) (DIN - 00755458)
Sanjay Kumar Agarwal Pravir Murari Pankaj Prabhat R. Mahadevan
Partner Chief Executive Officer Chief Financial Officer Company Secretary
Membership No. 060352 M. No. ACS 2080
Place : KolkataDate : May 22,2025