Tata Coffee Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
Notes to the Statement of Standalone Financial Results
1. (a) Total Income for the current quarter is Rs.18409 lakhs compared to Rs.17854 lakhs for the
corresponding quarter of the previous year.
(b) Total Income for the nine months ended 31st December, 2018 is at Rs.54474 lakhs compared to
Rs.55475 lakhs for the corresponding nine months of the previous year.
2. (a) The Profit before Tax for the current quarter is Rs.2180 lakhs compared to Rs.1551 lakhs for the
corresponding quarter of the previous year.
(b) The Profit before Tax for the nine months ended 31st December, 2018 is at Rs.8136 lakhs
compared to Rs.7758 lakhs for the corresponding nine months of the previous year.
3. (a) The Profit after Tax for the current quarter is Rs.1591 lakhs compared to Rs.1012 lakhs for the
corresponding quarter of the previous year.
(b) The Profit after Tax for the nine months ended 31st December, 2018 is at Rs.5939 lakhs compared to
Rs.5885 lakhs for the corresponding nine months of the previous year.
4. Other Income includes Dividend income of Rs.1405 lakhs received from the Company’s overseas Subsidiary, Consolidated Coffee Inc., for the current quarter (Previous Period – Rs.802 lakhs) and Rs.2860 lakhs for the nine months ended 31st December, 2018 (Previous Period – Rs.2117 lakhs).
5. Produce growing on Bearer plants is a Biological asset and is fair valued based on the biological transformation. As coffee, tea and pepper go through Biological transformation , the same are fair valued only when the growth can be measured reliably. In the current quarter, the management has determined that it can reliably measure the biological transformation. These have accordingly been measured at fair values based on the management's estimates of expected produce on harvest considering the assessment of the biological transformation observed at the period end and assumption of factors such as weather patterns and crop health until harvest, etc. Fair values have been assessed at market prices at the reporting date adjusted for estimates of costs to be incurred from the reporting date until harvest. These estimates and assumptions are reviewed periodically and at every reporting date and revisions to the fair values will be carried out on a cumulative basis at every reporting date until harvest.
6. Changes in inventories-(Increase)/Decrease of Finished Goods, Work in Progress, Stock-in-trade and Biological Assets comprises the following:
Quarter ended 31st Dec
(Audited) Quarter ended 30th Sep
(Audited) Quarter ended 31st Dec
(Audited) Nine Months ended 31st Dec
(Audited) Nine Months ended 31st Dec
(Audited) Year ended 31st March (Audited)
2018 2018 2017 2018 2017 2018
Changes in inventories-(Increase)/
Decrease of Finished Goods,
Work in Progress and Stock-in-trade (849) 4088 (498) 4487 4384 (36)
Change in fair value of biological asset till harvest and on transfer to inventory - (Increase) / Decrease 1032 (2893) 314 (4800) (6865) (442)
(Rs. Lakhs)
7. Exceptional Items of Rs.160 lakhs for the quarter and Rs.l611 lakhs for the nine months ended 31st December, 2018 represents Profit on sale of non-core Fixed Assets.
8. In relation to acquisition of certain Tea and Coffee estates made by the Company in the past period, the District Revenue Officer (Stamps), has issued an Order in January, 2019 determining the market value of these estates and directing the Company to pay the differential stamp duty of Rs.774 lakhs. This has since been paid by the Company along with Registration fee of Rs 97 lakhs. The aggregate amount of Rs.871 lakhs has been capitalized as part of the acquisition cost of the assets.
9. Effective April 1, 2018, the Company adopted Ind AS 115 “Revenue from Contracts with Customers” using the cumulative catch-up transition method which is applied to contracts that were not completed as of April 1, 2018. Accordingly, the comparatives have not been retrospectively adjusted. The effect on adoption of Ind AS 115 does not have any material impact on the financial statements of the Company.
10. Effective April 1, 2018, the Company has adopted Appendix B to Ind AS 21 'Foreign Currency Transactions and Advance Considerations'. This Appendix requires the advances received or paid in Foreign Currency to be treated as non-monetary items not subject to restatement in subsequent period. The application of Appendix B to Ind AS 21 did not have any material impact on the financial statements of the Company.
11. Segmental information is disclosed as part of the consolidated financial results for the quarter and nine months ended 31st December, 2018.
12. The Board of Directors of Tata Coffee Limited at their meeting held on 24th December 2018, has designated Mr. Chacko Purackal Thomas (who is currently the Executive Director & Deputy CEO) as 'Managing Director & CEO ' with effect from 1st April 2019. He will assume charge as Managing Director & CEO of Tata Coffee Limited, effective 1st April 2019 after the retirement of Mr. Sanjiv Sarin, the current Managing Director and CEO, whose term of office would expire by 31st March 2019.
13. The aforementioned results were reviewed by the Audit Committee of the Board and subsequently taken on record by the Board of Directors at its Meeting held on 29th January, 2019. The Auditors have issued an unqualified Audit opinion on these results.
14. The results for the quarter and nine months ended 31st December, 2018 are available on the websites of BSE Limited (URL: www.bseindia.com) and the National Stock Exchange of India Limited (URL: www.nseindia.com) and on the Company’s website (URL: www.tatacoffee.com).