3.11 Provisions & contingent liability:

Provisions are recognized, when there is a present legal or constructive obligation as a result of a past event, it is
probable that an outflow of resources will be required to settle the obligation, and when a reliable estimate of the
amount of the obligation can be made. If the effect of the time value of money is material, the non - current provisions
are discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the obligation and the unwinding of the discount is recognised as interest expense.

Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to occurrence
or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any
present obligation cannot be measured in terms of future outflow of resources, or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable
outflow of resources are provided for. The Company does not recognise contingent liability but discloses its existence
in financial statements.

3.12 Dividends:

Final Dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends
are recorded as liability on the date of declaration by the Company's Board of Directors.

3.13 segment Reporting:

The Company identifies operating segments based on the internal reporting provided to the chief operating decision¬
maker.

The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Board of Directors that makes strategic decisions.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.
Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on
the basis of their relationship to the operating activities of the segment. The Company operates in a single segment
namely solvent extracted products and geographically operates primarily in a single segment.

3.14 Research and development:

Expenditure on research phase is recognised as an expense as and when it is incurred. Expenditure on development
phase is recognized as intangible assets if it is identifiable, capable of being controlled and from which future economic
benefits are expected to flow to the enterprise. Intangible assets are stated at cost net of tax / duty credits availed, if
any, less accumulated amortisation and cumulative impairment.

Note 5.1 - Amortisation

Amortisation is calculated over the estimated useful life of the asset. Refer Accounting policy no. 3.1.2 of the company
for the method of amortisation. The company is amortizing the other intangible assets - software over a period of 5 years

Note 5.2 - Impairment of assets

Refer Note No. 49 for disclosure relating to impairment of assets
Note 5.3 - Restriction on title - Nil

Note 5.4 - Contractual Commitments

Refer Note No. 37 for outstanding contractual commitments.

The company has one class of equity shares having a par value of Rs. 1 per share. Each shareholder is eligible for
one vote 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 the liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts,
in proportion to the shareholding.

D. Shares reserved under option and contract/commitments for sale of shares/disinvestment - Nil (31^st March 2024 - Nil)

E. The aggregate value of calls unpaid (including Directors and Officers of the Company) - Nil (31^st March 2024 - Nil)

F. There were no bonus share issue/ buy back of shares in the immediately preceding 5 years.

G. The Company has not allotted any shares as fully paid up pursuant to contract without payment being received in cash in the
immediately preceding 5 years..

Nature and purpose of other reserves

1 Capital Reserve - Reserve of capital nature taken to this head under the erstwhile GAAP.

2 General Reserve - General Reserve is created out of the profits earned by the Company by way of transfer from
surplus in the statement of profit and loss. Mandatory transfer to general reserve is not required under the Companies
Act 2013.

3 Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to
general reserve, dividends or other distributions paid to shareholders.

4 Cash flow Hedging Reserve: The cash flow hedging reserve represents the cumulative effective portion of gains or
losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges.
Such gains or losses will be reclassified to statement of profit and loss in the period in which the underlying hedged
transaction occurs

Foot Note:

1. Term loan from banks

(i) Term Loan 1: The company had availed a term loan for a period of five years with half yearly instalments. Secured
by first charge on 27.01 acres of leasehold land and movable fixed assets and buildings (value of buildings and
movable fixed assets being Rs. 3,498 Lakhs). Rate of Interest - 9.70% p.a (31^st March 2024 - 9.70% p.a.). The
loan was fully repaid and in July 2024.

(ii) Term Loan 2: The company has taken an additional term loan for a period of six years including a moratorium
of 1 year. The loan is repayable in 10 equal half yearly instalments with repayment commencing from February
2023 and the last instalment due being August 2028. Secured by first charge on assets created out of the term
loan.Rate of Interest - 8.50% p.a. (31^st March 2024 - 8.75% p.a).

Packing Credit from Banks (*)

Packing credit from banks secured by

- hypothecation of present and future current assets including stocks, semi-finished goods, finished goods,
consumables, stores, spares, book debts.

- 15% margin on sight import letter of credit and performance guarantee

- In some cases second pari passu charge by way of hypothecation and mortgage of movable and immovable
assets of the Company, second charge on entire fixed assets of the Company including EM, In some cases
demand promissory note, hypothecation of book debts, letter of containing security, deposit of letter of credit

“Period and amount of default as on 31^st March 2025 - Nil (31^st March 2024 - Nil)

No loans have been guaranteed by Directors or Others”

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotions
and other relevant factors. The above information has been certified by the actuary and has been relied upon by the
Auditors.

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.
Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will
increase the plan's liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

NOTE 36

RELATED PARTY TRANSACTIONS
A: details of related parties:

(a) Directors who held the office during the year:

Mr. Ajit Thomas

Mr. M A Alagappan ( Upto 24-07-2024)

Mr. P Shankar (Upto 24-07-2024)

Mr. Habib Hussain (Upto 09-08-2024)

Mr. A D Bopana
Mrs. Shanthi Thomas
Mrs. Kavitha Vijay

Mr. M M Venkatachalam (From 25-07-2024)

Mr. Rahul Thomas (From 12-06-2024)

Mr. Ranganath N Krishna (From 25-07-2024)

(b) Key Management Personnel (KMP):

Mr. Balasundaram Krishnakumar Sr. Vice President and Manager (Upto 31-03-2025)

Mr. A. Ramadas, Sr. Vice President and Chief Financial Officer
Mr. Sharon Josh, Company Secretary (Upto 21-07-2024)

Mr. P Mahadevan, Company Secretary (From 12-11-2024)

(c) subsidiaries

AVT Natural Europe Limited, UK (formerly known as 'AVT Tea Services Limited')

AVT Natural S.A. DE C.V

AVT Natural North America Inc., USA (step down subsidiary)

AVT Natural FZCO, Dubai

Entities/Persons with whom transactions carried out / were carried in current / previous year

(d) Entities having significant influence over the reporting entity

The Midland Rubber and Produce Company Limited
Neelamalai Agro Industries Limited

(e) Entities with common control through board composition / shareholding

AVT Gavia Foods Private Limited

The Nelliampathy Tea and Produce Company Limited

A V Thomas & Company Limited

Midland Corporate Advisory Services Private Limited

AVT McCormick Ingredients Private Limited

Midland Charitable Trust

Parry Agro Industries Ltd.

(f) Relatives of the directors

Mr. Rahul Thomas - Son of Mr. Ajit Thomas

Mr. Ashwin Thomas - Son of Mr. Ajit Thomas

Mrs. Shabri Roberson - Daughter of Mrs Shanthi Thomas

C. Fair value of Financial Instruments measured at amortised cost :

Due to the short-term nature of cash and cash equivalents and the short-term maturities of trade receivables, loans,
borrowings-current, financial liabilities and assets the management considers that the carrying amount of assets and
liabilities recognised at amortised cost in financial statements is approximate to their fair value.

The fair value of financial instruments as referred to in note (A) above has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in
active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs
[Level 3 measurements].

D. Valuation inputs and relationship to fair value

There are no material level 3 fair value measurements in respect of the financial assets and liabilities of the company.

NOTE 43

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees
to support its operations. The Company's principal financial assets include loans, trade and other receivables, and cash
and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the
management of these risks. The financial risk activities are governed by appropriate policies and procedures and that
financial risks are identified, measured and managed by the senior management in accordance with the Company's policies
and risk objectives. All derivative activities for risk management purposes are carried out by professionals who have the
appropriate skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative
purposes may be undertaken.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price
risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and
borrowings and derivative financial instruments.

The sensitivity analyses in the following sections relate to the position as at 31^st March 2025 and 31^st March 2024.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating
interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all
constant and on the basis of hedge designations in place at 31^st March 2025.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post¬
retirement obligations; provisions; and the non-financial assets.

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This
is based on the financial assets and financial liabilities held at 31^st March 2025 and 31^st March 2024 including the
effect of hedge accounting.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates
relates primarily to the Company's short-term debt obligations with fixed & floating interest rates.

sensitivity Analysis of the Interest Rate

Profit or loss is sensitive to higher/lower interest expense from borrowings at the floating rate as a result of
change in interest rates.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently
observable market environment, showing a significantly higher volatility than in prior years.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates
primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency).

The prices of agricultural commodities are subject to fluctuations due to various factors. In the ordinary course of
business, the company is exposed to commodity price risk to the extent its open sales are not balanced by the
purchase contracts and inventory. The company has in place in a risk management policy to manage such risk by
hedging the sales by direct purchases of the commodity and strategic stocking policies.

(B) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness'
of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for
credit. The Company is exposed to credit risk to credit risk from its operating activities (primarily trade receivables)

and from its financing activity, including deposits with banks and financial institutions, foreign exchange transactions
and other financial instruments. .

(a) Trade receivables

Customer credit risk is managed as per the Company's established policy, procedures and control relating to customer
credit risk management. Credit limits are set with approvals on the basis of the defined policies. Outstanding customer
receivables are regularly monitored and exposures are kept within the credit limits fixed for each customer.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the
same geographical region, or have economic features that would cause their ability to meet contractual obligations
to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative
sensitivity of the Company's performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines
to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and
managed accordingly.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large
number of minor receivables are grouped into homogenous company's and assessed for impairment collectively.
The calculation is based on exchange losses historical data. The Company does not hold collateral as security. The
Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in
several jurisdictions and industries and operate in largely independent markets.

(b) Financial instruments and cash deposits

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 Company's maximum exposure to credit risk for the components of the balance sheet at 31 March 2025 and
31 March 2024 is the carrying amounts as mentioned in Notes.

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank
overdrafts, bank loans and lease liabilities. Approximately, 93% of the Company's debt will mature in less than one
year at 31 March 2025 (31 March 2024: 26% Company's debt will mature in less than one year) based on the carrying
value of borrowings reflected in the financial statements. The Company assessed the concentration of risk with
respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources
of funding and debt maturing within 12 months can be rolled over with existing lenders.

NOTE 44

CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the parent. The primary objective of the Company's capital management is to maximise
the shareholder value.

The Company 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 Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a
gearing ratio, which is net debt divided by fund attributable to Equity Shares Holders. The company includes within net
debt, interest bearing loans and borrowings less cash and short-term deposits and current investments.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March
2025 and 31 March 2024

NOTE 45

PERFORMANCE OBLIGATION ON REVENUE

In majority of the contracts performance obligation is satisfied “at a point in time” which is primarily determined on customer
obtaining the control of the asset.

Contract with the customer normally do not contain significant financing component and any advance payment received and
/or amount retained by customer is with intention of protecting either parties to the contract.

Variable consideration primarily consists of discounts, rebates, price concessions which are reduced from the transaction
price, if specified in the contract with customer/ based on customary business practices.

For revenue recognition in respect of performance obligation satisfied at a “point in time” the following criteria is used for
determining whether the customer has obtained “Control on asset”

i. Transfer of significant risk and rewards

ii. Customer has legal right/title to the asset

iii. The entity has transferred the physical possession of the asset

iv. Customer has accepted the asset

v. Entity has the present right to payment for the asset

NOTE 46

CODE ON SOCIAL SECURITY, 2020

The implementation of the Code on Social Security, 2020 is getting postponed. The Company will assess the impact
thereof and give effect in the Financial Statements when the date of implementation of the codes and the Rules / Schemes
thereunder are notified.

NOTE 48
DIVIDENDS

Dividends paid during the year 2024-25 represent 50% final dividend for the financial year 2023-24 amounting to
Rs. 761.42 Lakhs and interim dividend of 30% declared in the financial year 2024-25 Rs.456.85 Lakhs.

The dividends declared by the Company are in Indian Rupees and are based on the profits available for distribution as
reported in the statutory financial statements of the Company. Subsequent to March 31, 2025, the Board of Directors of
Company have proposed a final dividend of Re. 0.40 per share (40%) in respect of financial year 2024-25. The proposal is
subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of
approximately Rs. 609.14 Lakhs. .

NOTE 49 : IMPAIRMENT OF ASSETS

Company has analysed indications of impairment of assets/financial instruments. On the basis of assessment of internal
and external factors, none of the assets/financial instruments has found indications of impairment of its assets/financial
instruments.

NOTE 50 : CONTINGENT ASSETS

Contingent assets are neither recognised nor disclosed in the financial statements..

NOTE 51 : OTHER Statutory Information

(a) The company has identified transactions with Struck-off companies by comparing company's counter parties with
publicly available database of struck of companies through a manual name search. Based on such a manual search,
no party identified to be reported in the financial statements.

(b) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”)
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party
identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any
party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in
other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

(c) The company has done registration of charges or satisfaction with ROC within the statutory period during the
year.

(d) Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken
at the balance sheet date.

(e) The differences between the quarterly return of inventories and receivables submitted to the banks and the books
of account, did not affect the drawing power for the actual borrowing and the required security cover computed in
accordance with the sanctioned terms.

(f) Details of benami property held - No proceedings have been initiated on or are pending against the company for holding
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(g) Wilful defaulter - The company has not been declared as wilful defaulter by any bank or financial institution or
government or any government authority.

(h) Compliance with number of layers of companies - The Company has complied with the number of layers prescribed
under the Companies Act, 2013.

(i) Compliance with approved scheme(s) of arrangements - The Company has not entered into any scheme of
arrangement which has an accounting impact on current or previous year.

(j) Undisclosed income -There is no income surrendered or disclosed as income during the current or previous year in
the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(k) Details of crypto currency or virtual currency - The Company has not traded or invested in crypto currency or virtual
currency during the current or previous year.

(l) Valuation of Property, Plant and Equipment - The Company has not revalued its property, plant and equipment

(including right-of-use assets) during the current or previous year .

NOTE 54

Figures for the previous periods have been regrouped / reclassified to conform to the classification of the current period.
See accompanying notes to the financial statements

As per our report of even date attached For and on behalf of the Board of Directors

FOR SURI & CO.,

Chartered Accountants
FRN : 004283S

G Rengarajan Ajit Thomas M M Venkatachalam

Partner Chairman Director

Membership No. 219922 DIN: 00018691 DIN: 00152619

Place: Chennai A. Ramadas P. Mahadevan

Date: 28 May 2025 Sr. Vice President & CFO Company Secretary