* Deferred tax assets (other than DTA on indexation benefit on land) have been recognised to the extent of deferred tax liabilities as there is no reasonable certainty of future taxable income against which such deferred tax assets can be realised. Accordingly, no tax impact is considered on the items classified in OCI.
Significant management judgement is required in determining deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.
(ii) The Corporation has the following unused tax losses which arose on incurrence of business loss under the Income-tax Act, 1961, for which deferred tax assets has been recognised in the standalone balance sheet only to the extent of the deferred tax liabilities.
(iii) Temporary difference on which no deferred tax assets is recognised in balance sheet is amounting to ^ 5,380.39 (31 March 2024: ^ 4,657.67)
The Corporation offsets tax assets and tax liabilities if and only if it has a legally enforceable right to set off tax assets and tax liabilities and entity's intention is to settle on a net basis or to realise the asset and settle liabilities simultaneously, and deferred tax assets and deferred tax liabilities related to the income taxes levied by the same tax authorities.
As per Ind AS 12 “Income Taxes" a deferred tax asset ('DTA') shall be recognised for the carry forward of unused tax loss, unused tax credits and taxable timing differences to the extent it is probable that future taxable profit will be available against which the unused tax loss, unused tax credits and taxable timing differences can be utilised. Accordingly, DTA has been recognised only to the extent of deferred tax liabilities.
Write down of inventories to its net realisable value during the year is ^ Nil (31 March 2024: ^ 12.56). There is no reversal of written down inventories during the year.
* include goods-in-transit of ^ 684.75 (31 March 2024: ^ 408.28)
Refer note 19 for information on assets provided as collateral or security for borrowings or financing facilities availed by the Corporation
The carrying value of inventories except stock in trade and real estate inventory are pledged as securities against the working capital loan
#includes inventory lying with third party for raw materials of ^ 200.62 ( 31 March 2024: ^ 230.07), work in progress of ^ 88.21 (31 March 2024: ^ 88.14) and finished goods of ^ 8.29 ( 31 March 2024: ^ 3.40)
“The physical quantities of tea leaves produced during the year and estimated quantity thereof at the end of reporting period is 138.11 lakhs kg (31 March 2024: 168.18 lakhs kg) and 6.69 lakhs kg (31 March 2024: 4.77 lakhs kg) respectively. The entire biological assets as at 31 March 2025 and 31 March 2024 classifies as mature biological assets'!
Refer note 19 for information on assets provided as collateral or security for borrowings or financing facilities availed by the Corporation.
II Measurement of fair value
i) Fair value hierarchy
The fair value measurements for tea leaves has been categorised as Level 3 fair values based on the inputs to valuation technique used.
III Risk management strategies related to agricultural activities
The Corporation is exposed to the following risks relating to its plantation activity
i) Regulatory and environmental risks
The Corporation is subject to laws and regulations in the country in which it operates. It has established various environmental policies and procedures aimed to comply with the local environmental and other laws.
ii) Supply and demand risks
The Corporation is exposed to risks arising from fluctuations in the price and sales volume of tea produce. When possible, the Corporation manages this risk by aligning its produce to market supply and demand. Management regularly analyses industry trend for projected produce and prices.
iii) Climate and other risks
The Corporation's plantations are exposed to the risk of damage from climatic changes, pests, forest fires and other natural forces. The Corporation has extensive processes in place aimed at monitoring and mitigating those risks, including regular estate health inspections and industrial pest surveys.
Board of Directors had approved divestment of assets on 18 April 2023 related to Tea Plantations at Tanzania for a total consideration amounting to ^ 985.00 (USD 1.2 Million), subject to adjustments, as applicable. Further, such consideration had been revised to ^ 910.12 (USD 1.1 Million), as approved by the Board in their meeting held on 10 November 2023. Accordingly, assets of Hekulo estate situated at Tanzania have been sold during the current financial year at a gain of ^ 407.27 This gain is disclosed under exceptional item of the standalone financial statements. Further, assets of Marvera estate continued to be classified as assets held for sale as it meets the criteria laid down under Indian Accounting Standard 105, “Non-current Assets Held for Sale and Discontinued Operations'! There is no requirement to recognise impairment loss as the fair value of these assets are higher than its carrying value.
d Rights, preferences and restrictions attached to equity share
The Corporation has only one class of equity shares having par value of ^ 2 per share. Each holder of equity share is entitled to one vote per equity share. The Corporation declares and pays dividends in INR.
In the event of liquidation of the Corporation, the holders of equity shares will be entitled to receive assets of the Corporation remaining after distribution of all preferential amounts. The distribution will be in proportion to the number of fully paid-up equity shares held by the shareholders.
e Aggregate number of bonus shares issued or buy back of shares during the period of five years immediately preceding the reporting date
The Corporation has neither issued bonus shares nor there has been any buy back of shares during five years immediately preceding 31 March 2025.
f Shares issued for consideration other than cash
The Corporation has not issued any shares for consideration other than cash.
As per records of the Company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the shareholding detailed here represents both legal and beneficial ownership of shares.
# Includes 2,076,682 number of shares earlier held by Macrofil Investments Limited, merged vide National Company Law Tribunal (NCLT) order dated 25 November 2024 w.e.f. 01 April 2023.
Wallace Brothers Trading and Industrial Limited (WBTIL) had filed a statement with SEBI in July 2023 declaring itself as promoters group of the Corporation since 1997 Thereafter, the Corporation had filed revised shareholding details with NSE and BSE, declaring WBTIL as a member of the promoter group retrospectively, from the year 1997
The Corporation also declares that it has not entered into any transactions with WBTIL and hence, there has been no impact on the published standalone financial statements of the corporation since 1997 and disclosure made, other than above revised disclosure, as a result of WBTIL being a related party.
Footnotes:
Rupee term loan from Mahindra & Mahindra Financial Services Limited ('MMFSL') of ^ 2,500.00 [current principal outstanding : ^ 634.74 (31 March 2024: ^ 2,241.14)], which is repayable in monthly instalments upto August 2025. The loan is secured by way of first pari passu charge by way of an equitable mortgage by deposit of title deeds of Electromags Unit in favour of MMFSL. The rate of interest on the loan is ranging from 10.25% to 11.25% p.a. The loan amounting to ^ 634.74 (31 March 2024: ^ 1,649.06) which is repayable within next one year is classified under “Borrowings (current)” (refer note 19).
a) Principal protected market linked unlisted Non-convertible debentures ('PP-NCD') aggregating to ^ 5,000.00 [current principal outstanding : ^ Nil (31 March 2024: ^ 5,000.00)] were issued on 28 March 2023 by way of private placement. NCD's worth ^ 5,000.00 has been repaid on 23 April 2024, secured by way of first pari passu charge by way of an equitable mortgage by deposit of title deeds of Mudis estates in favour of the Mitcon Credentia Trusteeship Services Limited (debenture trustee). The coupon range of PP-NCD is 9.25% to 9.75% p.a. payable quarterly.
b) Packing credit/Cash credit / WCDL / Short Term Loan from The Hongkong and Shanghai Banking Corporation Limited of ^ 2,100.00 (31 March 2024: ^ 1,650.00) is secured by hypothecation of present and future stocks, book debts on pari-passu basis. The rate of interest on the loan is ranging from 9.00% to 11.00% p.a.
c) Cash credit / WCDL from Axis Bank Limited ^ 1,20757 (31 March 2024: ^ Nil) was secured by hypothecation of present and future stocks, trade receivables (book debts) and other current assets on pari-passu basis. The rate of interest is ranging from 9.00% to 11.00% p.a.
d) Cash credit / WCDL from HDFC Bank Limited ^ 989.81 (31 March 2024: ^ Nil) was secured by hypothecation of present and future stocks and book debts on pari-passu basis. The rate of interest on the loan is ranging from 9.00% to 11.00% p.a.
e) Cash credit / Overdraft from IDFC FIRST Bank Limited of ^ 1,986.36 (31 March 2024: ^ Nil) was secured by way of first pari passu charge created by way of an equitable mortgage by deposit of title deeds of Mudis estates. The rate of interest is 12 Months MCLR (Marginal Cost of Lending Rate) 0.50% to 2.00%.
f) Rupee term loan from Hero Fincorp Limited ('HFL') of ^ 7,500.00 [current principal outstanding : ^ 6,750.00 (31 March 2024: ^ Nil)], which is repayable in quarterly instalments till September 2025. The loan is secured by way of bank deposits of ^ 750.00 in favour of HFL. The rate of interest on the loan is 10.50% p.a. which is payable in quarterly instalments till September 2025.
g) The rate of interest on ICD is 8.75% p.a. (31 March 2024: 8.75% to 9.25% p.a.). Principal repayable on maturity and interest payable on half yearly basis.
h) The Company has outstanding commercial paper of ^ 7,800.00 (31 March 2024: ^ Nil) which carries coupon rate of 9.25% to 9.40%.
i) Cash credit (CC) loan is repayable on demand.
j) The outstanding amount in above footnotes are exclusive of EIR impact as per Ind AS 109 “Financial instruments'.'
36 Leases
The disclosures required in accordance with Ind AS 116 “Leases” are as follows:
(a) Corporation as a lessee
The Corporation's leased assets primarily consists of leases for office premises and vehicles having different lease terms. There are several lease agreements with extension and termination options, for which management exercise significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. Since it is reasonably certain to exercise extension option and not to exercise termination option, the Corporation has opted to include such extended term and ignore termination option in determination of lease term. Further, Corporation is not exposed to any variable lease payments or residual value guarantee.
Above figures are excluding amounts pertaining to discontinued operations for the year ended 31 March 2024 of ^ 9.80. Employer's contribution towards employees' state insurance and labour welfare fund, which is insignificant, have been included in the line item “Contribution to providend fund and other funds” in note 28. Also, the contribution of the Corporation is limited to the amount contributed and it has no further contractual or constructive obligation.
The Corporation's exemption w.r.t maintaining “The Bombay Burmah Trading Corporation Limited Employees' Exempt Provident Fund (PF Trust)” has been withdrawn vide an order dated 25 March 2025 under the provisions of Employees Provident Fund Scheme,1952 w.e.f 01 April 2025. In compliance of the said order the PF Trust has monetised its investments and transferred ^ 1,523.41 to Employee Provident Fund Organisation (EPFO) on 16 April 2025.
(B) Defined benefit plans - Gratuity:
The Corporation has The Bombay Burmah Trading Corporation Limited Covenanted Staff Gratuity Fund and The Bombay Burmah Trading Corporation Limited Employees' Gratuity Fund which are funded defined benefit plans for qualifying employees.
(i) In respect of covenanted staff covered under The Bombay Burmah Trading Corporation Limited Covenanted Staff Gratuity Fund: The gratuity scheme provides for lump sum payment to vested employees based on a combination of factors such as length of service and manner of cessation of service viz. retirement, death / disability, termination. In such case, lump sum payment will be made for an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months subject to the maximum amount payable as per the Payment of Gratuity Act, 1972.
(ii) In respect of non-covenanted staff covered under The Bombay Burmah Trading Corporation Limited Employees' Gratuity Fund. The gratuity scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months subject to the maximum amount payable as per the Payment of Gratuity Act, 1972.
Vesting under the above scheme occurs only upon completion of 5 years of service, except in case of death or disability. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each standalone balance sheet date.
These assumptions were developed by the management with the assistance of independent actuarial appraiser. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management's historical experience. The estimates of future salary growth rate considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
7 The Corporation expects to make a contribution of ^ 307.30 (31 March 2024: ^ 504.39) to the defined benefit plans during the next financial year.
8 The weighted average duration of the DBO at the end of the reporting period ranges between 4.00 to 5.00 years (31 March 2024: 9.00 to 11.00 years).
9 Sensitivity analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, salary growth rate, attrition rate and mortality rate. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of the sensitivity analysis is given below:
There have been no transfers amongst the levels of fair value hierarchy during the year.
For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Corporation determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions are used to estimate the fair values:
1. Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, trade payables, other current financial assets / liabilities approximate their carrying amounts largely due to short term maturities of these instruments. These are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.
2. Financial instruments with fixed and variable interest rates are evaluated by the Corporation based on parameters such as interest rates and individual credit worthiness of the counter-party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts. These are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.
3. The fair values for deposits were calculated based on cash flows discounted using lending rate on the date of initial recognition. The lease liability is initially measured at amortised cost at the present value of the future lease payments and are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. Accordingly, all these are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.
4. Investment in quoted equity instruments are classified as Level 1 fair values in the fair value hierarchy. Investments in unquoted equity instruments of companies are classified as Level 2 fair values in the fair value hierarchy as valuation of these instruments is based on the recent market transactions and investment in co-operative societies and government securities are classified as Level 3 fair values.
B. Fair value hierarchy and method of valuation
The Corporation uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data (unobservable inputs). For level 3 financial instruments the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk."
C. Financial risk management
The Corporation has exposure to the following risks arising from financial instruments:
i) Credit risk
ii) Liquidity risk
iii) Market risk
Risk management framework
The Corporation's Board of Directors has overall responsibility for the establishment and oversight of the Corporation's risk management framework. The Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Corporation's risk management policies. The committee reports regularly to the Board of Directors on its activities.
The Corporation's risk management policies are established to identify and analyse the risks faced by the Corporation, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Corporation's activities. The Corporation, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit Committee oversees how management monitors compliance with the Corporation's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Corporation. The Audit Committee is assisted in its oversight role by internal audit function. Internal audit function includes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
i) Credit risk
Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises from cash and cash equivalents, bank balances other than cash and cash equivalents, other financial assets as well as credit exposures to customers including outstanding receivables. The maximum exposure to credit risk is equal to the carrying value of the financial assets.
Trade receivables
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Corporation causing financial loss. It arises from cash and cash equivalents, deposits with banks and financial institutions, security deposits, loans given and principally from credit exposures to customers relating to outstanding receivables. The Corporation's maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date.
The Corporation continuously monitors defaults of customers and other counterparties, identified either individually or by the Corporation, and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and / or reports on customers and other counterparties are obtained and used. The Corporation's policy is to deal only with creditworthy counterparties.
In respect of trade and other receivables, the Corporation is not exposed to any significant credit risk exposure to any single counterparty or any company of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. The Company has very limited history of customer default, and considers the credit quality of trade receivables for evaluation of expected credit loss.
Outstanding customer receivables are regularly monitored.
Other financial assets
The Corporation periodically monitors the recoverability and credit risks of its other financial assets. The Corporation evaluates 12 months expected credit losses for all the financial assets for which credit risk has not increased. In case credit risk has increased significantly, the Company considers life time expected credit losses for the purpose of impairment provisioning.
The Corporation has considered financial condition, current economic trends, forward looking macroeconomic information, analysis of historical bad or doubtful receivables and ageing of receivables related to cash and cash equivalents, bank balances other than cash and cash equivalents, margin deposits, security deposits, finance lease assets and other financial assets. In most of the cases, risk is considered low since the counterparties are reputed organisations with no history of default to the Company and no unfavourable forward looking macro economic factors. Wherever applicable, expected credit loss allowance is recorded.
ii) Liquidity risk
Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they become due. The Corporation manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Corporation manages its liquidity needs by monitoring scheduled debt servicing payments for financial liabilities as well as forecast cash inflow and outflows due in day to day business. In addition, processes and policies related to such risks are overseen by senior management.
(iii) Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables, foreign currency payables and borrowings.
The Corporation is exposed to the following components of market risk:
a) Foreign currency risk
b) Interest rate risk
c) Price risk
a) Foreign currency risk
Foreign currency risk is the risk that future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Corporation primarily deals in United States Dollars ('USD') , Great Britian Pound ('GBP') and 'EURO.' The Corporation mainly has foreign currency trade payables and trade receivables which are unhedged and exposed to foreign currency risk.
The Corporation evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies. There are earnings from customers in foreign currency which act as a natural hedge against foreign currency risk.
40 Contingent liabilities and capital commitments
(i) Contingent liabilities classified as claims against the Company not acknowledged as debt:
a) Sundry claims against the Corporation by employees and others not admitted (amount indeterminate). In the opinion of the management, the outcome of these claims is likely to be immaterial.
b) Interest on unpaid damages on alleged unauthorised occupation of residential premises determined by the Estate Officer of Life Insurance Corporation of India up to 31 March 2025 and disputed by the Corporation ^ 139.53 (31 March 2024: ^ 136.35).
c) The Corporation had received two demand notices for differential lease rent in respect of Singampatti estate rent being arrears aggregating to ^ 23,192.58 (31 March 2024: ^ 23,192.58) for the period from 1958 to 2019. The Corporation has challenged the said demands by way of writ petition before Madras High Court and the said demands have been stayed by the Honorable High Court.
d) Matters under dispute in respect of the Electromags Automotive Products Private Limited (amalgamated with the Corporation in past years) for earlier years are:
- relating to income tax demand of ^ 6.52 (31 March 2024 : ^ 6.52)
- relating to custom and sales tax demand of ^ 9.19 (31 March 2024 : ^ 9.19)
e) Income tax matter under dispute for A.Y. 2017-18, 2021-22 and 2024-25 amounting to ^ 86.48, ^ 121.14 and ^ 40.69 respectively (31 March 2024 : A.Y. 2017-18 ^ 86.48, 2021-22 ^ 121.14 and 2024-25 ^ Nil).
f) The Corporation has received an intimation of tax ascertained as being payable under section 73(5) of the Goods and Service Tax Act (GST Act) amounting to ^ 2,004.64 in respect of sale of Akurdi land concluded in March, 2022. As per the tax department's contention the sale of land is a transfer of leasehold rights covered by Goods and Service Tax Act and hence, GST is applicable on such transaction.
The Company contests and has argued that all the rights pertaining to the land and building have been effectively transferred and the said sale transaction is outside the purview of GST Act. The Company has filed protest letter contesting the liability and deposited ^ 1,453.97 under protest in April, 2024
(ii) Contingent liabilities classified as other money for which the Company is contingently liable:
The Supreme court of India in the month of February 2019 had passed a judgement relating to definition of wages under The Employees' Provident Funds and Miscellaneous Provisions Act, 1952. However, considering that there are numerous interpretative issues relating to this judgement and in the absence of reliable measurement of the provision for the earlier periods, the Corporation has made a provision for provident fund contribution pursuant to the judgement. The Corporation will evaluate its position and update its provision, if required, on receiving further clarity on the subject. The Corporation does not expect any material impact of the same.
(iii) Capital commitments:
Estimated amount of contracts remaining to be executed on capital account to the extent not provided for (net of advances) is ^ 131.63 (31 March 2024 : ^ 126.81).
Notes:
i) It is not practicable for the Corporation to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.
ii) The amounts disclosed above represent the best possible estimates arrived at on the basis of available information and do not include any penalty payable.
46 Segment information
The Corporation has opted to present data related to its segments in the consolidated financial statements, in accordance with Ind AS 108 “Operating Segments'.' No disclosures regarding segments are therefore presented in these standalone financial statements.
e) Compliance with number of layers of companies
The Corporation has complied with the number of layers prescribed under section 2(87) of the Act.
f) Compliance with approved scheme of arrangements
The Corporation has not entered into any scheme of arrangement in terms of section 230 to 237 of the Act for the year ended 31 March 2025 and 31 March 2024.
g) Utilisation of borrowed funds and share premium
The Corporation has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to any other person or entity, including foreign entity ('Intermediaries') with the understanding (whether recorded in writing or otherwise) 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 Corporation ('Ultimate Beneficiaries') or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Corporation has not received any fund from any person or entity, including foreign entity ('Funding Party') with the understanding (whether recorded in writing or otherwise) that the Corporation 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.
h) Undisclosed income
No income has been surrendered or disclosed as income during the current and previous year.
i) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current and previous year.
j) Registration of charges or satisfaction with Registrar of Companies ('ROC')
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
53 As per the transfer pricing rules, the Corporation has examined international transactions and documentation in respect thereof to ensure compliance with the said rules. The management does not anticipate any material adjustments with regard to the transactions involved.
54 Go Airlines (India) Limited ('Go Air'), an associate of the Corporation had filed a voluntary application on 2 May 2023 for initiation of Corporate Insolvency Resolution Process (CIRP) and grant of interim moratorium to preserve its assets and keep it as a Going Concern. On 10 May 2023, National Company Law Tribunal ('NCLT') had admitted the application and granted moratorium. Accordingly, there was loss of significant influence over Go Air with effect from 10 May 2023. Further,NCLT has approved Go Air's liquidation vide order dated 20 January 2025 and the Corporation has filed its claim with the official liquidator. The claim submitted in the capacity of financial creditor of ^ 10,536.85 has been accepted.
55 The Board vide its meeting dated 29 May 2024 approved a Voluntary Retirement Scheme (VRS) for Singampatti tea estate workers on 29 May 2024 to address operational difficulties. This scheme was designed to provide financial relief and ease operational constraints from the ongoing legal dispute. The Corporation had paid 25% of the VRS amount i.e. ^ 37724 in the month of June 2024 and settled all final payments, including gratuity, bonus, and leave encashment. The remaining 75% amounting to ^ 1,131.73 was deposited into the Labour Commissioner's account on 18 July 2024. The total expenses of ^ 1,662.65 incurred on account of such VRS including ex-gratia has been classified as an Exceptional Loss during the year ended 31 March 2025.
Further, the Corporation has de-recognised the development plantation at Singampatti tea estate amounting to ^ 828.95 which has been classified as an exceptional item in the standalone financial statements.
56 The Corporation had received an order dated 30 October 2024 from the Collector's office demanding lease rental arrears for the period 1999 to 2018 amounting to ^ 1,955.63 which was paid on 19 November 2024. The Corporation has also created a provision of ^ 662.81 for the period January 2019 to March 2024 (classified as an exceptional item) and ^ 126.25 for the period April 2024 to March 2025. Further, the renewal application related to such lease is in process of approval from respective statutory authorities.
57 A Settlement Application was filed by the Corporation proposing to settle, without admitting or denying the findings of fact and conclusions of law, the enforcement proceedings that may be initiated by SEBI against the Corporation, for the alleged violation of certain provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with regard to incorrect disclosure of promoter's shareholding pattern and its disclosure with regard to Related Party. Pursuant to the said application, the SEBI has accepted the settlement application and passed a settlement order dated 10 January 2025 levying settlement charges of ^ 31.01 which has been duly paid by the Corporation.
58 Authorisation of standalone financial statements
The standalone financial statements as at and for the year ended 31 March 2025 were approved by the Board of Directors on 15 May 2025.
59 Other matters
Comparative figures have been regrouped, reclassified and rearranged wherever necessary, to conform to current year's presentation, which are not considered material to these standalone financial statement.
These are the material accounting policies and other explanatory information referred to in our report of even date
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