Description of the nature and purpose of each reserve within equity is as follows:-

a) Capital Reserve - Reserve is created on business combination as per statutory requirement.

b) Preference Share Redemption Reserve - Reserve is created for redemption of preference shares as per statutory requirement.

c) General Reserve - General Reserve are free reserves of the company which are kept aside out of company's profits to meet the future requirements as and when they arise. The Company had transferred a portion of the Profit after Tax (PAT) to general reserve pursuant to the earlier provisions of Companies Act, 1956.

d) Retained Earnings - Retained Earnings are the accumulated profits earned by the Company and remaining undistributed as on date.

e) Other Comprehensive Income - Equity Instruments through Other Comprehensive Income (OCI) -This represents the cumulative gains and losses arising on fair valuation of equity instruments measured at fair value through other comprehensive income under an irrevocable option and remeasurement of Defined Benefit Obligation.

24.3- Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax laibilities relate to income tax levied by the same taxation authority.

26.1 - Details of Security Given for Loan

a) The working capital facilities from Punjab National Bank are secured/ to be secured by hypothecation of Tea Crop, Made Tea, Book Debts and all other Current Assets of the Tea Estates and guaranteed by a Director and are further secured/to be secured by way of Equitable Mortgage on immovable properties situated at the Tea Estates.

b) Working Capital Facilities from Other Banks, (except those availed by Tea Division of the Company from Punjab National Bank ) are secured/ to be secured by hypothecation of Company's (other than Tea Division) entire current assets, both present and future, ranking pari passu inter-se, and are further secured/ to be secured by way of second charge on the property,Plant and Equipments of the Company (other than Tea Division) ranking pari passu inter-se.

26.2 - Details of Interest Rates on Short Term Borrowings

a) The Working Capital Facilities having interest rate varying between 7.50% p.a. - 11.60% p.a. are repayable on demand.

b) Short term loans from Body Corporates and Related Parties having 9.00%-10.50% p.a rate of i nterest.

c) Fixed Deposit from Public is having an interest rate of 8.00% p.a.

Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability is the entity's obligation to transfer goods or services to a customer for which the entity has received consideration from the customer in advance. Contract assets are transferred to receivables when the rights become unconditional and contract liabilities are recognised as revenue as and when the performance obligation is satisfied.

41.1 For Lease commitments, refer Note 52(B)(a) and for derivatives contract refer Note 52(C )(b)

NOTE 42 - LEASES

42.1 - As Lessee

i) The lease liability is measured at the present value of remaining lease payments discounted using incremental borrowing rate at the date of initial application and right of use asset has been recognized at an amount equal to the lease liability plus prepaid rentals recognised in the Balance Sheet before the date of initial application, if any.

ii) Leases for which the lease term ends within 12 months of the date of initial application have been accounted as short term leases.

Further, refer Note 3.6: Significant Accounting Policies for detailed measurement and recognition principles on Leases.

The weighted average incremental borrowing rate applied to lease liabilities as at 1st April, 2019 is 10%.

The changes in the carrying value of right of use (ROU) assets for the year ended 31st March, 2023 are disclosed in Note 4

As per the requirement of Ind As -107 maturity analysis of lease liability have been shown under Note 52B(a).

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Machinery Hire Charges and Rental expense recorded for short-term leases or cancellable in nature was ' 736.87 lakhs (P.Y. - ' 482.88 lakhs) and ' 34.64 lakhs (P.Y. - ' 41.39 lakhs) for the year ended 31st March, 2023 (Refer Note - 36).

42.2 - As Lessor

The company has given office premises under cancellable leases. The leasing arragements range between 3 years and 15 years generally or longer and are usually renewable by mutual consent on mutually agreeable terms. Initial direct costs for such leases are borne by the company and charged off to revenue. Lease rentals are recognised as income for ' 734.47 Lakhs during the year (P.Y. ' 702.68 Lakhs). The gross value and accumulated depreciation of such asset as at 31st March, 2023 was ' 16.57 Lakhs (P.Y. ' 16.57 Lakhs) and ' 4.66 Lakhs (P.Y. ' 4.42 Lakhs) respectively.

NOTE 43 - Revenue expenditure on Research and Development of ' 22.19 Lakhs (P.Y. ' 22.84 Lakhs) represents subscription to Tea Research Association.

The Company has compiled this information based on intimation received from the suppliers of their status as Micro or Small Enterprises and/or its registration with appropriate authority under the Micro, Small and Medium Enterprises Act, 2006 ("MSMED Act").

The Employee's Gratuity Fund Scheme, a defined benefit plan, is administered by Life Insurance Corporation of India (LIC) and SBI Life Insurance Company Ltd. (SBI Life). LIC or SBI Life make payments to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment of an amount based on the respective employee's salary and tenure of employment subject to a maximum limit as prescribed.

h) Asset-Liability Matching Strategy

The money contributed by the Company to the Gratuity Fund to finance the liabilities of the plan has to be invested.

The Employee's Gratuity Fund Scheme, a defined benefit plan, is administered by the Life Insurance Corporation of India (LIC) and SBI Life Insurance Company Ltd (SBI Life). The Insurance Company in turn manages the funds as per the mandate provided to them by the Trustees. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy.

There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company's philosophy is to fund these benefits based on its own liquidity and the level of under funding of the plan.

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

NOTE 47 - Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to confirmation/reconciliation and consequential adjustment, if any. Reconciliations are carried out on an on-going basis. Provisions, wherever considered necessary, have been made. However, management does not expect to have any material financial impact of such pending confirmation/reconciliation.

NOTE 50 - FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITES MEASURED AT AMORTISED COST

50.1 - The management assessed that the fair values of Loan given, cash and cash equivalents, other Bank balances, trade receivables, other financial assets, long term borrowings, trade payables, short term borrowings, and other financial liabilities approximates their carrying amounts.

50.2 - 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.

NOTE 51 - FAIR VALUE HIERARCHY

The following are the judgements and estimates made in determining the fair values of the financial instruments 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 the 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.

51.2 - The following are the judgements and estimates made in determining the fair value of the biological assets other than bearer plants that are recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its biological assets other than bearer plants into Level 2 in the fair value hierarchy, since no significant adjustments need to be made to the prices obtained from the local markets.

NOTE 52: FINANCIAL RISK MANAGEMENT

The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. The Company's senior management has the overall responsibility for establishing and governing the Company's financial risk management framework. The Company's Audit Committee, is responsible for developing and monitoring the Company's financial risk management policies. The Company's financial risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate controls.

(A) Credit risk

Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, bank balances, loans, investments and other financial assets.

At each reporting date, the Company measures loss allowance for certain class of financial assets based on historical trend, industry practices and the business environment in which the Company operates.

Credit risk arising from investments, derivative financial instruments and balances with banks is limited because the counterparties are banks and recognized financial institutions with high credit worthiness.

(i) Provision for expected credit losses

The Company measures Expected Credit Loss (ECL) for financial instruments based on historical trend, industry practices and the business environment in which the Company operates.

For financial assets, a credit loss is the present value of the difference between:

(a) the contractual cash flows that are due to an entity under the contract; and

(b) the cash flows that the entity expects to receive

The Company recognises in profit and loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date in accordance with Ind AS 109.

In determination of the allowances for credit losses on trade receivables, the Company has used a practical experience by computing the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience and adjusted for forward looking information.

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements.

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit facilities agreed with the banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost effective manner.

The following table shows the maturity analysis of the Company's derivative and non derivative financial liabilities based on contractually agreed undiscounted cash flows.

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, currency risk and other price risk.

a) Interest rate risk:

Interest rate risk is measured by using cash flow sensitivity for changes in variable interest rate. Any movement in the reference rates could have an impact on the Company's cash flow as well as cost. The management is focused towards reducing the volatility due to interest rates, which is reflected in proportion of variable interest rate borrowing to total borrowing.

b) Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the recognized underlying liabilities / assets and firm commitments. The Company's policy is to hedge its exposures other than natural hedge. The Company does not enter into any derivative instruments for trading or speculative purposes.

The Company's objective when managing capital (defined as net debt and equity) is to safeguard the Company's ability to continue as a going concern in order to provide returns to shareholders and benefit for other stakeholders, while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in light of changes to economic conditions and strategic objectives of the Company.

NOTE 54 - SEGMENT REPORTING

54.1 - Information in accordance with the requirements of the IND AS - 108 on 'Segment Reporting':-

The Company has identified four primary business segments viz :

i) Textile Manufacture and sale of yarn made out of Cotton and Man-made Fibre viz.,

Acrylic, Polyster, Viscose, Staple and Blends thereof.

ii) Tea Manufacture and sale of Tea

iii) Engineering (Micco) Manufacture and sale of Steel Structural, Pipes and equipments and Designing,

Supplying, Erectioning and Commissioning of projects on turnkey basis.

iv) Property Letting out property on rent

Segments have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with the following additional policies for segment reporting.

i) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

ii) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related asset and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

54.4 - Other Disclosures

a) The Company's corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. The Company is currently focused on four business groups : Textile, Tea, Engineering and Property. The Company's organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them.

b) The geographical information considered for disclosure are:

-Sales within India

NOTE 56 - OTHER STATUTORY INFORMATION

i) Details of Benami Property held - The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

ii) Relationship with Struck off Companies - The Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956

iii) Registration of charges or satisfaction with Registrar of Companies (ROC) - The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv) Details of Crypto Currency or Virtual Currency - The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) Utilisation of Borrowed funds and share premium - The Company have not advanced or loaned or invested funds, during the year, to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vi) The Company have not received any fund, during the year, 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:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii) Disclosure in relation to undisclosed income - The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search or survey) or any other relevant provisions of the Income Tax Act, 1961.

viii) Utilisation of Borrowing - The company has utilised the Borrowings from Banks and Financial Instituions for the purpose for which it was taken.

ix) Wilful Defaulter - The Company has not been declared as willfull defaulter by any Bank or Financial Institutions.

x) Loans or advances (repayable on demand or without specifying any terms or period of repayment) to specified persons - During the year the company did not provide any loans or advances (repayable on demand or without specifying any term or period of repayment) to specified person.

xi) Corporate Social Responsibility (CSR) - The average net profits made by the Company during the 3 immediately preceding financial years is negative, as such the Company did not spend any amount in CSR activities for the financial year 2022-2023.

xii) Compliance with number of layers of companies - The Company has complied with number of layers prescribed under clause (87) of Section 2 of Companies Act 2013 read with Companies (Restriction on number of layers) Rules 2017.

The current assets referred above are for Textile (GCM) and Engineering (Micco) Divisions of the Company. NOTE 57 - Previous years figures have been rearranged / regrouped wherever necessary.