Terai Tea Co Ltd Management Discussions

Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 stipulates disclosure under specific heads which are given in the following paragraphs and which continue to be followed in the usual course of the Companys business over the years in discussion amongst the Directors and Senior Management Personnel.

INDUSTRY STRUCTURE AND DEVELOPMENT

The Companys main business is manufacture and sale of Tea. Tea being a seasonal industry manufacture of tea commences from around mid-March and continues till around mid-December. The crop yield depends to a large extant on the weather conditions. The plantation area being constant the yield depends on irrigation facilities, better soil management techniques, weather etc. Necessary steps are initiated by the Company for improving the yield and quality of crop in its gardens. The Company lays stress on improving the quality. Use of vermi compost in the plantation areas is in vogue for sustaining the quality of soil as well as for improving the yield. The Company adopts good tea plantation practices to maintain the yield and has embarked on production of quality teas. We have initiated Integrated Pest and Nutrient Management practices on the estates as part of our improvement drive.

OPPORTUNITIES AND THREATS:

The continuous promotional efforts and better marketing and brand building initiatives taken jointly by the Government/Tea Board including TRUSTEA programmes are likely to benefit the industry in the long term. Erratic weather conditions and shortage of labour are the main threats to the industry. Inspite of all technological advancement tea remain totally a rain dependent crop.

Global Warming induced drastic climate change is effecting all agriculture crop including tea.

Climate change have changed the character of monsoon to no rain for long period with heavy rain for short periods.

RISK AND CONCERN:-

The Management has to constantly monitor the risks and concerns associated with the industry by ensuring adequate irrigation facilities to the Plantation areas, soil enrichment, protection of plantation against attacks by pests etc and is also subject to changing market conditions and the trends. Further increased supply in the global market and slowdown of the economic growth may also adversely affect the Companys business prospects.

SEGMENT ANALYSIS AND REVIEW

The Company is engaged in the Manufacturing of Tea, and Trading of Sugar, Raw Jute and other Merchandise.

INDIAN TEA MARKET OUTLOOK

The tea industry in India is being driven by the high penetration of the beverage in the country across socioeconomic classes. Indias healthy economic growth and the subsequent rise in the middle-class population are also proving to be catalysts for the industrys growth as the consumers are preferring premium brands. The rising demand for the packaged variety of the beverage in both urban and rural areas due to lesser chances of adulteration, convenient storage, and their superior quality is further aiding the tea industry in India. The demand for packaged varieties with natural ingredients is also witnessing a growth.

The Tea market is projected to grow at a CAGR of nearly 4.5% in the forecast period of 2023-2028. The market in the country is projected to witness a further growth in the forecast period of 2023-2028, growing at a CAGR of 4.2%. In 2026, the tea industry in India is expected to attain 1.40 million tons.

FINANCIAL REVIEW & ANALYSIS

The Companys financial position is strong enough which has helped Company to pass through in turbulent times. The development work in garden is always given top priority for improvement in quality as well as quantity. The surplus fund of the Company is deployed in such a way that reasonable returns are derived.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has laid down guidelines, procedures and policies for better management control which are periodically tested and supplemented by an extensive internal audit programme. Significant findings are placed before the Audit Committee and the corrective measures are recommended for implementation. In the opinion of the management, the existing internal checks and controls are effective and adequate.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The relationships were cordial with the employees throughout the year. Tea Industry being highly labour intensive, prime focus is always on the Labour class. The Company carries out various program for development of its executives at all levels. During the year the Company carried out restructuring exercise at key level for improvement in plantation activities and overall corporate performance. The Company would like to record appreciation of the whole hearted support and dedication from employees at all levels in maintaining smooth production and manufacture of tea from all the Tea Estates during the year.

RATIO ANALYSIS

Following are ratios for the current financial year and their comparison with preceding financial year along with explanations:

Sl. Ratios	2026	2025	% Change	Explanation if the change is more than 25%
1. Debtors Turnover (Times)	34.25	100.98	(66.08)%	The decline is due to slower collection from customers and a higher level of outstanding receivables at the year-end.
2. Inventory Turnover (Times)	70.36	88.36	(20.38)%	-
3. Interest Coverage Ratio	2.58	2.22	16.21%	-
4. Current Ratio	2.77	3.89	(28.90)%	The decline is due to the company using part of its liquid resources to repay borrowings during the year, which reduced the assets available in the short term.
5. Debt Equity Ratio	0.39	0.77	(49.15)%	The improvement is due to repayment of loans during the year along with an increase in reserves from profits earned, which strengthened the companys own funds compared to borrowed funds.
6. Net Profit Margin	10.82	3.57	202.79%	The improvement is due to higher profits during the year, supported by lower input costs and income earned from investments.
7. Return on Net Worth (%)	10.35	4.28	142.13%	The improvement is due to higher profits earned during the year, resulting in better returns and resulting in increased return on equity ratio.

CAUTIONARY STATEMENT

The forward-looking statements and the views expressed in the Management Discussion and Analysis Report are based on certain assumptions. The actual results, performances or achievements may differ materially from those stated therein. The Company would not be held liable, in any manner, if the future turns out to be quite different, even materially.

Financial Highlights : Standalone Balance Sheet

(For Five Years)

	2025-26	2024-25	2023-24	2022-23	2021-22
ASSETS
Non-Current Assets
Property Plant and Equipment	5153.86	5130.83	5237.20	4930.08	5069.98
Capital Work-In-Progress	30.57	135.09	-	8.09	14.35
Financial Assets
(a) Investments	680.40	705.97	715.52	1723.01	1708.60
(b) Loans	-	-	-	16.99	10.23
(c) Other Financial Assets	39.94	42.35	10.22	01.00	16.02
Other Non-Current Assets	419.37	414.87	342.63	324.21	321.14
Deferred Tax Assets	384.20	-	-	-	-
Income-Tax Assets	17.94	32.42	72.67	34.29	37.25
Total Non-Current Assets	6726.27	6461.53	6388.35	7037.67	7177.57
Current Assets
Inventories	128.25	73.37	118.64	236.47	155.37
Financial Assets
(a) Investments	5332.66	3996.34	3675.44	2498.96	3167.56
(b) Trade Receivables	461.03	56.85	146.26	305.43	1541.11
(c) Cash and Cash Equivalents	55.85	5150.33	92.20	118.73	63.68
(d) Loans
Other Financial Assets	43.15	28.51	28.51	19.00	19.00
Other Current Assets	1697.30	372.57	1666.26	2163.30	562.43
Total Current Assets	7718.25	9677.96	5727.31	5341.90	5509.16
Total Assets	14444.52	16139.48	12115.66	12379.57	12686.72
EQUITY AND LIABILITIES
Equity
Equity Share Capital	687.93	687.93	687.93	687.93	687.93
Other Equity	9064.34	8104.41	7736.36	7427.56	7295.72
TOTAL EQUITY	9752.27	8792.34	8424.29	8115.49	7983.65
LIABILITIES
Non-Current Liabilities
Financial Liabilities
Borrowings	1447.57	4623.55	1634.17	1538.56	1531.75
Provisions	137.10	147.57	130.72	129.66	119.11
Deferred Tax Liabilities (Net)	-	41.76	-	16.96	40.31
Other Non-Current Liabilities	320.43	49.39	54.37	59.84	65.96
Total Non-Current Liabilities	1905.10	4862.27	1819.27	1745.02	1757.13
Current Liabilities
Financial Liabilities
(a) Borrowings	2395.02	2043.23	1443.96	1969.17	1483.88
(b) Trade Payables	225.18	148.97	139.44	209.85	1130.05
(c) Other Financial Liabilities	-	146.36	135.94	113.74	129.04
Other Current Liabilities	71.71	65.20	64.91	140.83	127.18
Provisions	95.24	81.11	87.86	85.48	75.78
Current Tax Liabilities (Net)	-	-	-	-	-
Total Current Liabilities	2787.15	2484.87	1872.10	2519.06	2945.94
Total Liabilities	4692.25	7347.14	3691.37	4264.08	4703.07
Total Equity and Liabilities	14444.52	16139.48	12115.66	12379.57	12686.72
Net Worth per Equity Shares of Rs. 10/- each (in Rs.)
Earnings per Equity Share:
(1) Basic	13.95	5.35	4.49	1.92	13.66
(2) Diluted	13.95	5.35	4.49	1.92	13.66

Financial Highlights : Standalone Profit & Loss A/c

(For Five Years) ( in Lakh)

	2025-26	2024-25	2023-24	2022-23	2021-22
A. INCOME
1. Revenue from Operations	8871.39	10299.49	10806.44	9315.60	7318.38
2. Other Income	1395.24	1094.93	759.54	472.88	1532.09
Total Income	10266.63	11394.42	11565.98	9788.48	8850.47
B. EXPENDITURE
1. Change in Inventories of Finished Goods,
Work-in-progress and Stock-in-trade	(61.99)	57.41	107.08	(116.91)	147.29
2. Purchase of Stock-in-trade	5575.73	6750.79	8161.31	6265.57	4161.52
3. Cost of Material Consumed	1530.30	1732.11	879.06	1160.58	1583.81
4. Employee Benefits Expenses	733.36	720.24	805.88	675.98	631.83
5. Consumption of Stores & Spare Parts	165.26	131.33	120.08	201.28	158.91
6. Excise Duty	-	-	-	-	-
7. Power & Fuel	520.44	465.00	461.91	602.47	552.17
8. Manufacturing & Other Miscellaneous Exp.	43.99	32.98	21.17	36.30	28.87
9. Selling & Distribution Expenses	79.43	70.69	56.37	59.42	61.92
10. Depreciation and Amortisation Expenses	116.71	129.08	143.93	165.92	158.24
11. Interest (Net)	324.45	350.08	253.23	248.19	149.47
12. Other Expenses	725.22	524.60	268.83	380.25	274.87
Total Expenditure	9752.91	10964.31	11278.85	9679.06	7908.90
C. Profit / (Loss) Before Taxation (A-B)	513.72	430.11	287.13	109.42	941.57
D. Tax Expenses
Current Tax	-	4.64	-	-	-
MAT Credit Entitlement		-	-	39.85	-
Tax Adjustment for Earlier Years	(20.25)	5.55	5.40	0.93	12.12
Provision for Taxation-Deferred Tax	(425.95)	51.87	(27.07)	(63.20)	(8.30)
Total Tax Expenses	(446.20)	62.06	(21.67)	(22.42)	1.83
E. Profit / (Loss) After Taxation (C-D)	959.92	368.05	308.81	131.84	939.74
F. Other Comprehensive Income	-	-	-	-	-
G. Total Comprehensive Income (Net of Tax) (E-F)	959.92	368.05	308.81	131.84	939.74