REGISTERED NUMBER: 00044242 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Lungla(Sylhet)tea Company,limited(The)

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Independent Auditors' Report

7

Income Statement

11

Statement of Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

15

Statement of Cash Flows

16

Notes to the Statement of Cash Flows

17

Notes to the Financial Statements

18

DIRECTORS:

S A Walker

K B Coombs

N V Hindia

S Moorshid

M Rahman

N U Ahmed

SECRETARY:

N V Hindia

REGISTERED OFFICE:

Wrotham Place

Bull Lane

Wrotham

Near Sevenoaks

Kent

TN15 7AE

REGISTERED NUMBER:

00044242 (England and Wales)

SENIOR STATUTORY AUDITOR:

Makhan Chahal, FCA

INDEPENDENT AUDITORS:

Deloitte LLP

1 New Street Square

London

EC4A 3HQ

The directors present their strategic report for the year ended 31 December 2024.

BUSINESS REVIEW, FUTURE DEVELOPMENTS AND KEY PERFORMANCE INDICATORS

The Company continues to operate as a grower and manufacturer of tea in Bangladesh and is expected to do so in the future. The results for the year and the financial position of the Company are as shown in the attached financial statements.

In 2024 tea production was 4.7 mkg (31 December 2023: 4.9 mkg), sales volume 4.6 mkg (31 December 2023: 4.0 mkg), revenue £6.4m (31 December 2023: £6.5m) and operating loss £1.0m (31 December 2023: loss £1.5m).

Management reviews monthly reports with a range of financial and other indicators to monitor the performance of its operations. This includes data on sales prices and volumes, costs of production and crop volumes against budget and on a per unit basis. Rainfall and other climate data are also considered.

2024 saw a 5% decline in production for our estate crop compared to the previous year. The reduction was primarily due to weather variability and other external challenges that impacted yield during key periods of the growing season. Despite this, long-term trends remain encouraging, as the estate continues to benefit from past investments in replanting and infilling. These efforts have strengthened the foundation for future growth, and overall production in Bangladesh has shown a steady upward trajectory over recent years. Increased crop among many producers and continued growth in the smallholder sector, the Bangladeshi tea market remained well-supplied in 2024. Nonetheless, the overall gains seen by individual estates took place within a context of declining national production. Bangladesh's total tea production in 2024 fell to 93.04 mkg, down from the previous year's record of 102.92 mkg. According to the Bangladesh Tea Board, this decrease was primarily due to adverse weather conditions and labor disruptions in certain regions. The bought leaf sector continues to be unregulated and is increasing annually. Despite the national decline, higher carry-forward stocks from 2023 and steady production levels among several producers contributed to an oversupplied market. This oversupply, combined with weakened demand for older season stock, exerted downward pressure on prices-resulting in an 8.7% decrease in our average net selling price compared to the previous year.

In August 2023 the government established a Wages Board for the tea industry and announced that wage increases from 2024 would be at 5% per annum effective in August each year. This provided some stability to costs.

Plantation in 2024 increased; however, the extent of new planting was constrained by limited funds and dry, hot weather during the planting season, which affected planting operations. The area uprooted for future planting was reduced. The start to the new season appears to be progressing in line with expectations. The market, however, is still heavily supplied with last year's brought forward stocks and prices for these have been very low. The new season teas are expected to see better prices, but this could be somewhat subdued by the levels of tea in the market.

Capital gain of £0.5m recognized from disposal of United Finance Limited and United Insurance Limited investment.

Higher finance costs in 2024 resulted from increased borrowings and higher interest rates. This trend is expected to persist through 2025. The weakening of the Bangladesh Taka against the British Pound persisted throughout 2023 and into 2024, impacting reported results and exacerbating losses during a period of low sales prices and increasing costs.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company grows and manufactures tea in Bangladesh, and is a wholly owned subsidiary of Camellia Plc and as such the principal risks and uncertainties, key performance indicators, strategy and business model are in line with those of the group as a whole as disclosed in respect of Agriculture. A review of the principal risks and uncertainties, strategy and business model of Camellia Plc group can be found in Camellia Plc's Annual Report and Accounts.

The nature of the Company's principal activity is such that the Board takes a long-term view on its operations. The Board receives monthly data on sales prices and volumes, cost of production and crop yields against budget. Rainfall and other climate data are also reviewed.

SECTION 172(1) STATEMENT

This section 172 statement should be read in conjunction with this Strategic Report and the Statement of Directors' Responsibilities.

In performing their duty under section 172(1) (a) to (f) of the Companies Act 2006, Directors have acted in a way that they have considered, in good faith, to promote the success of the Company, whilst carefully considering the interests of shareholders and its employees, in consultation with the managing agent.

CORPORATE GOVERNANCE

The Board comprises six directors, two of whom are executive directors, three are non-executive directors and one is an independent non-executive directors. The Board met throughout the year. Members of the Board also liaised throughout the year with the shareholder.

The Company's operations are exclusively undertaken in Bangladesh and as such it has not adopted a UK corporate governance code. No board committees have been constituted. The management of the day to day operation of the business is managed by Duncan Brothers (Bangladesh) Limited, and is subject to local laws and regulations.

The Directors, through the Company's managing agent Duncan Brothers (Bangladesh) Limited, continue to have regard to the interests of the Company's employees and other stakeholders. The Company is a member of the Bangladesh Tea Association (Bangladeshiyo Cha Sangshad) and through that forum engages with the Bangladesh Cha Sramik Union, which represents tea workers, and Bangladesh Tea Estates Staff Association, which represents clerical staff.

The Board also regularly considers the views of its principal stakeholders and how to engage with them. The stakeholder voice is brought into the boardroom throughout the annual cycle through information provided by presentations, meetings and operational visits.

ON BEHALF OF THE BOARD:

M Rahman - Director

3 July 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of growing and manufacturing tea in Bangladesh.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

FUTURE DEVELOPMENTS

A statement on future developments is included in the strategic report.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

S A Walker has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

I Ahmed - resigned 31 December 2024

S E Quadir - resigned 30 November 2024

J F B Panter - resigned 31 December 2024

K B Coombs , N V Hindia , S Moorshid , M Rahman and N U Ahmed were appointed as directors after 31 December 2024 but prior to the date of this report.

FINANCIAL RISK MANAGEMENT

Information on the Company's financial risk management objectives and policies and on the exposure of the Company to relevant risks in respect of financial instruments is given in the notes to the financial statements.

GOING CONCERN

As set out in the Strategic Report, our business is currently operating broadly as normal.

The Directors, at the time of approving the financial statements, considered the Company's business activities together with the main trends and factors likely to affect the Company, and the most recent business performance of the Company.

The Directors have considered the current trading environment, including the potential impact of the conflicts in Ukraine and Israel on the business over the next 15 months. The Board has also assessed the implications of the new USA tariffs and concluded that, while the effects remain uncertain, they are not expected to have a materially adverse impact on the Company, as all produce is sold within the domestic market of Bangladesh.

A range of variables that could affect revenue, profits, and cash flows has been considered. Given the nature of the business and our experience of trading through similar geopolitical disruptions, the Directors expect the business to continue operating broadly in line with current performance.

We have modelled various severe but plausible scenarios using assumptions including the combined effect of reduced sales volumes and sales prices for tea during 2025 and into 2026. The revenue and operational impact of such volume and price reductions would have a substantially negative impact on Company profitability.

Historically in the tea sector, restrictions on, or reductions in the supply of tea, have led to higher selling prices. However, for prudence for the purposes of our downside scenario planning, we have not reflected increased selling prices for tea nor any significant reduction to our operating cost base.

Lawrie Group plc confirmed that it will continue to support the Company up to a maximum funding limit of £6.7m, to enable it to continue trading in a reasonable worst case scenario for a period lasting at least 12 months from the date of approving these financial statements.

Under both the base case and the downside scenarios, the Company is expected to have sufficient headroom relative to the funding available to it.

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approving the financial statements. The Directors therefore continue to adopt the going concern basis in preparing the financial statements.

INSURANCE

Camellia Plc purchases insurance to cover its Directors and officers, and those of its subsidiaries in respect of legal actions against them in their capacity as Directors of the Company. All Directors have access to independent professional advice at the Company's expense.

REVIEW OF BUSINESS

The Company undertakes its principle activities through a branch in Bangladesh.

EMPLOYEES

The Company's policy is to consult and discuss with employees on any matters likely to affect their interests. It is also company policy that due consideration be given to employment applications received from disabled persons and to give employees who become disabled every opportunity to continue their employment. Information on matters of concern to employees is given through regular bulletins, notices and briefings, in order to achieve a common awareness of the financial and economic factors affecting the performance of the Company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state that the financial statements comply with IFRS;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Deloitte LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M Rahman - Director

3 July 2025

Opinion

In our opinion the financial statements of Lungla (Sylhet) Tea Company Limited (the 'company'):

o give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;

o have been properly prepared in accordance with United Kingdom adopted international accounting standards and IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB); and

o have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

o the income statement;

o the statement of comprehensive income;

o the statement of financial position;

o the statement of changes in equity;

o the statement of cash flows and notes; and

o the related notes 1 to 26.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom adopted international accounting standards and IFRS Accounting Standards as issued by the IASB.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (the 'FRC's') Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included:

o Obtaining the latest cash flow forecasts of the Company and assessing the reasonability of the assumptions that management have used in their cash forecasts based on actual outcome post year end;

o Reviewed the letter of support provided by the parent company and assessed the business rationale and ability of the parent entity to provide this support;

o Reviewing copies of existing and new overdraft and short-term loan facilities and assessing the Company's cash forecasts against available facilities;

o Evaluating each of the sensitivities adopted by management and assessing downside scenarios of cash headroom over the forecast period by performing our own sensitivity analyses to gain adequate assurance regarding the solvency of the Company over the going concern review period; and

o Assessing the adequacy of the financial statement disclosures in relation to going concern.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company's business sector.

We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:

o had a direct effect on the determination of material amounts and disclosures in the financial statements. These included:

- UK Companies Act 2006

- Pensions regulations

- Tax legislation

o do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included:

- Food safety act (1990)

- Data protection Act

- Employment laws

- Health and Safety Act 1974

- Bribery Act

We discussed among the audit engagement team including relevant internal specialists such as tax and pensions specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:

Revenue Recognition

The entity is a grower and manufacturer of tea in Bangladesh and its sales are made through auction. We have identified a fraud risk in relation to inappropriate cut-off of revenue recognition around the balance sheet date.

In addressing the risk of fraud on revenue recognition, we have performed the following procedures:

o We reviewed and assessed commercial arrangements to determine the correct point of revenue recognition of different type of shipments.

o We performed detailed cut-off testing of revenue transactions during the period either side of the balance sheet date with reference to the relevant terms of business, dispatch, or delivery documentation as appropriate.

o We examined material journal entries that were posted to revenue accounts and obtained supporting evidence to test the appropriateness of revenue recognition.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

o reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

o performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

o enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

o reading minutes of meetings of those charged with governance.

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

o the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

o the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

o adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

o the financial statements are not in agreement with the accounting records and returns; or

o certain disclosures of directors' remuneration specified by law are not made; or

o we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Makhan Chahal, FCA (Senior Statutory Auditor)

for and on behalf of Deloitte LLP

1 New Street Square

London

EC4A 3HQ

3 July 2025

CONTINUING OPERATIONS

Revenue

4

6,408,677

6,493,679

Cost of sales

(7,046,731

)

(7,680,054

)

GROSS LOSS

(638,054

)

(1,186,375

)

Other operating income

119,151

149,305

Administrative expenses

(515,693

)

(501,153

)

OPERATING LOSS BEFORE EXCEPTIONAL ITEMS

(1,034,596

)

(1,538,223

)

Exceptional items

6

522,250

-

OPERATING LOSS

(512,346

)

(1,538,223

)

Finance costs

7

(678,604

)

(395,862

)

Finance income

7

182,351

84,397

LOSS BEFORE TAXATION

8

(1,008,599

)

(1,849,688

)

Taxation

9

(58,217

)

(190,791

)

LOSS FOR THE YEAR

(1,066,816

)

(2,040,479

)

LOSS FOR THE YEAR

(1,066,816

)

(2,040,479

)

OTHER COMPREHENSIVE LOSS

Items that will not be reclassified to profit or loss:

Post employment benefit obligations

(189,440

)

(213,795

)

Deferred tax

(5,708

)

61,047

Income tax relating to items that will not be reclassified to profit or loss

-

-

(195,148

)

(152,748

)

Item that may be reclassified subsequently to profit or loss:

Foreign exchange translation differences

(150,178

)

(1,059,011

)

Income tax relating to item that may be reclassified subsequently to profit or loss

-

-

(150,178

)

(1,059,011

)

OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF INCOME TAX

(345,326

)

(1,211,759

)

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(1,412,142

)

(3,252,238

)

ASSETS

NON-CURRENT ASSETS

Owned

Property, plant and equipment

10

9,988,294

10,386,334

Right-of-use

Property, plant and equipment

10, 17

258,823

290,117

Investment in associates

11

-

90,809

Investments

11

13,274

14,199

Trade and other receivables

13

87,260

93,342

10,347,651

10,874,801

CURRENT ASSETS

Inventories

12

2,033,690

1,910,464

Trade and other receivables

13

2,540,346

1,790,214

Cash and cash equivalents

14

466,062

81,302

5,040,098

3,781,980

LIABILITIES

CURRENT LIABILITIES

Trade and other payables

15

4,064,500

4,162,732

Financial liabilities - borrowings

Bank overdrafts

16

3,532,110

-

Loan and lease liabilities

16, 17

33,145

1,107,581

Tax payable

677,142

642,222

Provisions

19

130,278

134,763

8,437,175

6,047,298

NET CURRENT LIABILITIES

(3,397,077

)

(2,265,318

)

NON-CURRENT LIABILITIES

Financial liabilities - borrowings

Loan and lease liabilities

16, 17

276,107

300,555

Pension liability

23

77,043

66,901

Deferred tax

20

1,551,047

1,783,508

1,904,197

2,150,964

NET ASSETS

5,046,377

6,458,519

SHAREHOLDERS' EQUITY

Called up share capital

21

900,000

900,000

Retained earnings

22

4,146,377

5,558,519

TOTAL EQUITY

5,046,377

6,458,519

The financial statements were approved by the Board of Directors and authorised for issue on 3 July 2025 and were signed on its behalf by:

M Rahman - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

900,000

8,810,757

9,710,757

Changes in equity

Total comprehensive loss

-

(3,252,238

)

(3,252,238

)

Balance at 31 December 2023

900,000

5,558,519

6,458,519

Changes in equity

Total comprehensive loss

-

(1,412,142

)

(1,412,142

)

Balance at 31 December 2024

900,000

4,146,377

5,046,377

Cash flows from operating activities

Cash generated from operations

1

(362,121

)

(1,046,624

)

Interest paid

(504,205

)

(362,691

)

Tax paid

(87,427

)

(105,768

)

Net cash from operating activities

(953,753

)

(1,515,083

)

Cash flows from investing activities

Purchase of tangible fixed assets

(814,577

)

(764,215

)

Sale of tangible fixed assets

216

-

Sale of fixed asset investments

608,332

-

Interest received

162,864

63,672

Dividends received

19,487

20,609

Net cash from investing activities

(23,678

)

(679,934

)

Cash flows from financing activities

New loans in year

677,538

1,340,406

Loan repayments in year

(1,693,848

)

(226,956

)

Intra-group loans movement

(1,070,600

)

515,550

Payment of lease liabilities

(4,930

)

(5,131

)

Net cash from financing activities

(2,091,840

)

1,623,869

Decrease in cash and cash equivalents

(3,069,271

)

(571,148

)

Cash and cash equivalents at beginning of year

2

81,302

713,131

Effect of foreign exchange rate changes

(78,079

)

(60,681

)

Cash and cash equivalents at end of year

2

(3,066,048

)

81,302

1.	RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Loss before income tax

(1,008,599

)

(1,849,688

)

Depreciation charges

544,550

583,378

Profit on disposal of fixed assets

-

(3,705

)

Change in intra-grp balances excl loans

45,945

806,066

Actuarial movement

22,833

(213,795

)

Exceptional item

(522,250

)

-

Finance costs

678,604

395,862

Finance income

(182,351

)

(84,397

)

(421,268

)

(366,279

)

Increase in inventories

(123,226

)

(210,599

)

Decrease/(increase) in trade and other receivables

187,411

(35,104

)

Decrease in trade and other payables

(5,038

)

(434,642

)

Cash generated from operations

(362,121

)

(1,046,624

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

466,062

81,302

Bank overdrafts

(3,532,110

)

-

(3,066,048

)

81,302

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

81,302

713,131

1.	STATUTORY INFORMATION

Lungla(Sylhet)tea Company,limited(The) is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Lungla(Sylhet)tea Company,limited(The) as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Camellia Plc, Wrotham Place, Bull Lane, Wrotham, Near Sevenoaks, Kent TN15 7AE.

Changes in accounting policies and disclosures

(i) New and amended IFRS Accounting Standards that are effective for the current year

In the current year, the Company has applied the following amendments to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB), none of which have had any material impact on the disclosure or on amounts reported in these financial statements:

Amendments to IAS 1

Classification of liabilities as current or non-current

Amendments to IAS 1

Non-current liabilities with covenants

(ii) Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Company

At the date of authorisation of these financial statements, the Company has not applied the following new and revised IFRS Standards that have been issued but are not yet effective:

Amendments to IAS 21

The Effects of Changes in Foreign Exchange Rates (amendments) - lack of exchangeability

Amendments to IFRS 7, 9

Classification and measurement of financial instruments

IFRS 18

Presentation and Disclosure in Financial Statements

Annual Improvements to IFRS Accounting Standards, Volume 11

The Directors do not expect that the adoption of the standards, amendments and interpretations listed above will have a material impact on the financial statements of the Company.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, value added tax and other sales related taxes.

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the identification of contract(s) with customers

- the identification of the performance obligations in the contract

- the determination of the transaction price

- the allocation of the transaction price to the performance obligations in the contract

- the recognition of revenue when (or as) a performance obligation has been satisfied

Revenue is recognised at the point in time that control of goods is transferred to the customer.

Cash and cash equivalents

Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

Property, plant and equipment

Property, plant and equipment includes biological assets (bearer plants) which are accounted for under IAS 16.

Property, plant and equipment is shown at cost less subsequent depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of these assets. On transition to IFRS, the Company has followed the transitional provisions and elected that previous UK GAAP revaluations be treated as deemed cost. Subsequent costs are included in the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Depreciation of assets is calculated to write off their cost less residual value on a straight line basis over their expected useful lives.

Rates of depreciation are:

Biological assets (bearer plants)

28 to 50 years

Buildings

5 to 40 years

Plant and machinery

15 years

Vehicles

8 years

Fixtures, fittings, tools and equipment

10 to 20 years

No depreciation is provided on bearer plants until maturity when commercial levels of production have been reached. No depreciation is provided on assets under the course of construction until they are brought into use.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is included in the statement of comprehensive income.

Financial assets

Classification of financial assets

Equity instruments designated as at fair value through other comprehensive income ('FVTOCI').

On initial recognition, the Company has made an irrevocable election (on an instrument by instrument basis to designate investments in equity instruments as at FVTOCI.

Investments in equity instruments designated as FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the investments revaluation reserve. The cumulative gain or loss is not reclassified to profit or loss on disposal of the equity investments, instead, it is transferred to retained earnings.

Dividends on these investments in equity instruments are recognised in profit or loss in accordance with IFRS 9, unless the dividends clearly represent a recovery of part of the cost of the investment. Dividends are included as investment income in the statement of comprehensive income.

The Company has designated all investments in equity instruments that are not held for trading purposes as FVTOCI on initial application of IFRS 9. Financial assets measured at amortised cost include trade receivables and cash and cash equivalents.

Impairment of financial assets

The Company recognises a loss allowance for expected credit losses ('ECL') on investments in debt instruments that are measured at amortised cost, lease receivables, trade receivables and contract assets. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12 month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The Company recognises lifetime ECL for trade receivables, contract assets and lease receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the Company’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.

For all other financial instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12 month ECL.

(i) Significant increase in credit risk