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Accounting Policies of Asian Tea Exports Ltd. Company

Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared on an accrual basis and under historical cost convention and in compliance with all material aspects with the applicable accounting principles in India, the applicable accounting standards issued by The Institute of Chartered Accountants of India and referred to Section 129 & 133 of the Companies Act, 2013.

All the Assets and Liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle to be 12 months for the purpose of current, non-current classification of assets and liabilities.

1.2 USE OF ESTIMATES

The preparation of financial statements require judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/materialized.

1.3 INVENTORIES

Inventories are stated at lower of cost or net realizable value. Cost is determined using FIFO method and comprises of the purchase price including duties and taxes, freight inward and other expenditure directly attributable to the acquisition, but excluding the trade discount and other rebates.

1.4 REVENUE RECOGNITION

In compliance with the requirement of accrual system of accounting following standards have been set out and are being followed over years :

a) Sale is recognized when the ownership and control has been transferred to the prospective buyer provided there is no significant uncertainty in collection of the amount of consideration.

b) In case of benefit of DEPB, income is recognized after obtaining the license from the concerned authorities.

c) Revenue from interest is recognized on time/proportion basis taking into account the amount outstanding and the rate applicable.

d) Income from Investments/Other Income is recognized on accrual basis.

e) Having regard to the size of operations and nature and complexities of Company's business, in manage- ment's opinion the above are the reasonable standards of applying the accrual system of accounting required by the law.

1.5. FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

b) Depreciation on Fixed Assets is provided on historical cost and where revaluation of assets has been made, on revalued amount as per Written down Value Method. Depreciation for the current year is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

1.6. FOREIGN CURRENCY TRANSACTIONS

a) Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of transaction.

b) Conversion: Foreign currency assets (debtors) are translated at the rates of exchange prevailing on the date of the transaction.

c) Exchange Differences: Exchange difference arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

1.7. INVESTMENT

Current Investments are stated at lower of cost and fair value. Long-term Investments intended to be held for more than a year are classified as non-current investments, and are carried at cost. However, provision for diminution in value, other than temporary, has been recognized, wherever necessary.

1.8. EARNINGS PER SHARE

Basic & Diluted earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period as per Accounting Standard-20 issued by The Institute of Chartered Accountants of India.

1.9. TAXATION & DEFERRED TAX

Tax expense comprises both current and deferred taxes. Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognized for all the timing differences subject to the consideration of prudence in respect of deferred tax assets and measured using the tax rates and tax laws enacted by the balance sheet date. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

1.10. IMPAIRMENT OF ASSETS (AS-28)

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

1.11 PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

Provisions are recognized for present obligation as a result of past events where it is probable that outflow of resources will be required to settle the obligation, and in respect of which a reliable estimate can be made at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities not provided for are disclosed in the notes to the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2014

1.1. Basis of Preparation of Financial Statements:

The financial statements have been prepared on accrual basis and under historical cost convention and in compliance with all the material aspects of the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) and other relevant provisions of the Companies Act,1956.

All the Assets and Liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956.The Company has ascertained its operating cycle to be 12 months for the purpose of current, non-current classification of assets and liabilities.

1.2. Revenue Recognition : In compliance with the requirement of accrual system of accounting following standards have been set out and are being followed over years :

a) Sale is recognized when the ownership and control has been transferred to the prospective buyer provided there is no significant uncertainty in collection of the amount of consideration.

b) In case of benefit of DEPB, income is recognized after obtaining the license from the concerned authorities.

c) Revenue from interest is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

Having regard to the size of operations and nature and complexities of company''s business, in management''s opinion the above are the reasonable standards of applying the accrual system of accounting required by the law.

1.3. Inventories/Work-in-Progress : Inventories are stated at lower of cost or net realizable value. Cost is determined using FIFO method and comprises of the purchase price including duties and taxes and other expenditure directly attributable to the acquisition, but excluding the trade discount and other rebates.

1.4. Fixed Assets And Depreciation:

a) Fixed assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

b) Depreciation has been provided on historical cost and where revaluation of assets has been made on written up cost in the manner and as per Written Down Value Method at the rates prescribed in the Schedule XIV of the Companies Act, 1956. Proportionate depreciation is charged for additions/ deletions during the year on the basis of no. of days of use of the asset.

1.5. Foreign Currency Transactions:

a) Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of transaction.

b) Conversion: Foreign currency assets (debtors) are translated at the rates of exchange prevailing on the date of the transaction.

c) Exchange Differences: Exchange difference arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

1.6. Investment:

Current Investments are stated at lower of cost and fair value. Long-term Investments intended to be held for more than a year are classified as non-current investments, and are carried at cost. However, provision for diminution in value, other than temporary, has been recognized, wherever necessary.

1.7. Earnings per share: Basic and diluted earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding, there being no potential equity shares in the capital structure of the company.

1.8. Taxation : Tax expense comprises both current and deferred taxes. Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognized for all the timing differences subject to the consideration of prudence in respect of deferred tax assets and measured using the tax rates and tax laws enacted by the balance sheet date. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

1.9. Impairment of Assets (AS-28) :

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

1.10. Provisions, Contingent Liabilities & Contingent Assets :

Provisions are recognized for present obligation as a result of past events where it is probable that outflow of resources will be required to settle the obligation, and in respect of which a reliable estimate can be made at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities not provided for are disclosed in the notes to the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

1.1. Basis of Preparation of Financial Statements: The financial statements have been prepared on accrual basis and under historical cost convention and in compliance with all the material aspects of the applicable accounting principles in India, the applicable accounting standards notified under section 211 (3C) and other relevant provisions of the Companies Act, 1956.

AHthe Assets and Liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956.The Company has ascertained its operating cycle to be 12 months for the purpose of current, non-current classification of assets and liabilities.

1.2. Revenue Recognition : In compliance with the requirement of accrual system of accounting following standards have been set out and are being followed over years :

a) Sale is recognized when the ownership and control has been transferred to the prospective buyer provided there is no significant uncertainty in collection of the amount of consideration.

b) In case of benefit of DEPB, income is recognized after obtaining the license from the concerned authorities.

c) Revenue from interest is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

Having regard to the size of operations and nature and complexities of company''s business, in management''s opinion the above are the reasonable standards of applying the accrual system of accounting required by the law.

1.3 Inventories/Work-in-Progress : Inventories are stated at lower of cost or net realizable value. Cost is determined using FIFO method and comprises of the purchase price including duties and taxes and other expenditure directly attributable to the acquisition, but excluding the trade discount and other rebates.

1.4. Fixed Assets And Depreciation:

a) Fixed assets are stated at cost or revalued amounts, as the case may be,

less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

b) Depreciation has been provided on historical cost and where revaluation of assets has been made on written up cost in the manner and as per Written Down Value Method at the rates prescribed in the Schedule XIV of the Companies Act, 1956. Proportionate depreciation is charged for additions/ deletions during the year on the basis of no. of days of use of the asset.

1.5. Foreign Currency Transactions:

a) Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of transaction.

b) Conversion: Foreign currency assets (debtors) are translated at the rates of exchange prevailing on the date of the transaction.

c) Exchange Differences: Exchange difference arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

1.6. Investment:

Current Investments are stated at lower of cost and fair value. Long-term Investments intended to be held for more than a year are classified as non- current investments, and are carried at cost. However, provision for diminution in value, other than temporary, has been recognized, wherever necessary.

1.7. Earnings per share: Basic and diluted earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding, there being no potential equity shares in the capital structure of the company.

1.8. Taxation : Tax expense comprises both current and deferred taxes. Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognized for all the timing differences subject to the consideration of prudence in respect of deferred tax assets and measured using the tax rates and tax laws enacted by the balance sheet date. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

1.9. Impairment of Assets (AS-28):

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

1.10. Provisions, Contingent Liabilities & Contingent Assets :

Provisions are recognized for present obligation as a result of past events where it is probable that outflow of resources will be required to settle the obligation, and in respect of which a reliable estimate can be made at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities not provided for are disclosed in the notes to the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

1.1. Basis of Preparation : The financial statements are prepared under historical cost convention and following fundamental accounting assumptions namely going concern, consistency and accrual so as to comply with the mandatory accounting standards issued by The Institute of Chartered Accountants of India. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

1.2. Revenue Recognition : In compliance with the requirement of accrual system of accounting following standards have been set out and are being followed over years :

a) Sale is recognized when the ownership and control has been transferred to the prospective buyer provided there is no significant uncertainty in collection of the amount of consideration.

b) In case of benefit of DEPB, income is recognized after obtaining the license from the concerned authorities.

c) Revenue from interest is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

d) Dividend income is recognized when right to receive such income is established.

Having regard to the size of operations and nature and complexities of company''s business, in management''s opinion the above are the reasonable standards of applying the accrual system of accounting required by the law.

1.3. Inventories/Work-in-Progress : Inventories are stated at lower of cost or net realizable value. Cost is determined using FIFO method and comprises of the purchase price including duties and taxes and other expenditure directly attributable to the acquisition, but excluding the trade discount and other rebates.

1.4. Fixed Assets And Depreciation :

a) Fixed assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

b) Depreciation has been provided on historical cost and where revaluation of assets has been made on written up cost in the manner and as per Written Down Value Method at the rates prescribed in the Schedule XIV of the Companies Act, 1956. Proportionate depreciation is charged for additions/ deletions during the year on the basis of no. of days of use of the asset.

1.5. Foreign Currency Transactions:

a) Initial Recognition : Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of transaction.

b) Conversion : Foreign currency assets (debtors) are translated at the rates of exchange prevailing on the date of the transaction.

c) Exchange Differences : Exchange difference arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

d) Forward contract other than those entered into to hedge foreign currency risk on unexecuted firm commitment or of highly probable forecast transactions are treated as foreign currency transactions and accounted accordingly. Exchange difference arising on such contracts is recognized in the period in which they arise.

1.6. Derivative Instruments :

Derivative financial instruments such as forward exchange contracts are used to hedge its risks associated with foreign currency fluctuations related to the underlying transactions. In respect of Forward Exchange contracts with underlying transactions, the premium or discount arising at the inception of the contract is amortized as expense or income over the life of the contract.

Other derivative contracts outstanding at the balance sheet date are marked to market and resulting loss, if any, is provided for in the financial statements. Any profit or losses arising on cancellation of derivative instruments are recognized as income or expense for the period.

1.7. Investment: Investments intended to be held for more than a year are classified as non- current investments and carried at cost. However, provision for diminution in value, other than temporary, will be recognized wherever necessary.

1.8. Earnings per share : Basic and diluted earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding, there being no potential equity shares in the capital structure of the company.

1.9. Taxation : Tax expense comprises both current and deferred taxes. Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognized for all the timing differences subject to the consideration of prudence in respect of deferred tax assets and measured using the tax rates and tax laws enacted by the balance sheet date. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

1.10. Impairment of Assets (AS-28): The management has carried out an impairment test as perAS-28, Impairment of Assets, issued by the Institute of Chartered Accounts of India on all its fixed assets. As there was no impairment, no provision has been made.

1.11. Provisions : Provisions are recognized for present obligation as a result of past events where it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

As per Accounting Standard 15 "Employee benefits", the disclosure as defined in the Accounting Standard are given below :

Provident fund and Pension fund are defined contribution schemes and the contributions thereto are charged to Profit & Loss Account for the year when the contributions to the respective funds are paid/ due. '' Group Gratuity Fund is defined contribution scheme. In case of Defined Benefit Plans, the cost o providing the benefit is determined using the Projected Unit Credit Method with actuarial valuatior being carried out at each Balance Sheet date.


Mar 31, 2010

1. Basis of Preparation: The financial statements are prepared under historical cost convention and following fundamental accounting assumptions namely going concern, consistency and accrual so as to comply with the mandatory accounting standards issued by The Institute of Chartered Accountants of India. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

2. Revenue Recognition : In compliance with the requirement of accrual system of accounting following standards have been set out and are being followed over years :

a) Sale is recognized when the ownership and control has been transferred to the prospective buyer provided there is no significant uncertainty in collection of the amount of consideration.

b) In case of benefit of DEPB, income is recognized after obtaining the license from the concerned authorities.

c) Revenue from interest is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

d) Dividend income is recognized when right to receive such income is established.

Having regard to the size of operations and nature and complexities of companys business, in managements opinion the above are the reasonable standards of applying the accrual system of accounting required by the law.

3. Inventories/Work-in-Proqress : Inventories are stated at lower of cost or net realizable value. Cost is determined using FIFO method and comprises of the purchase price including duties and taxes and other expenditure directly attributable to the acquisition, but excluding the trade discount and other rebates.

4. Fixed Assets And Depreciation:

a) Fixed assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attrib- utable cost of bringing the asset to its working condition for its intended use.

b) Depreciation has been provided on historical cost and where revaluation of assets has been made on written up cost in the manner and as per Written Down Value Method at the rate prescribed in the Schedule XIV of the Companies Act, 1956. Proportionate depreciation is charged for additions/ deletions during the year on the basis of no. of days of use of the asset.

5. Foreign Currency Transactions:

a) Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of transaction.

b) Conversion: Foreign currency assets (debtors) are translated at the rates of exchange prevail- ing on the date of the transaction.

c) Exchange Differences: Exchange difference arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

d) Forward contract other than those entered into to hedge foreign currency risk on unexecuted firm commitment or of highly probable forecast transactions are treated as foreign currency transactions and accounted accordingly. Exchange difference arising on such contracts is recognized in the period in which they arise.

6. Derivative Instruments:

Derivative financial instruments such as forward exchange contracts are used to hedge its risks associated with foreign currency fluctuations related to the underlying transactions. In respect of Forward Exchange contracts with underlying transactions, the premium or discount arising at the inception of the contract is amortized as expense or income over the life of the contract.

Other derivative contracts outstanding at the balance sheet date are marked to market and resulting loss, if any, is provided for in the financial statements. Any profit or losses arising on cancellation of derivative instruments are recognized as income or expense for the period.

7. Investment: Investments intended to be held for more than a year are classified as long term investments and carried at cost. However, provision for diminution in value, other than tempo- rary, will be recognized wherever necessary.

8. Retirement Benefit : Provident fund and Pension fund are defined contribution schemes and the contributions thereto are charged to Profit & Loss Account for the year when the contribu- tions to the respective funds are paid/due.

Group Gratuity Fund is defined contribution scheme. In case of Defined Benefit Plans, the cost of providing the benefit is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date.

9. Earnings per share: Basic and diluted earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding, there being no potential equity shares in the capital structure of the company.

10. Taxation : Tax expense comprises both current and deferred taxes. Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognized for all the timing differences subject to the consideration of prudence in respect of deferred tax assets and measured using the tax rates and tax laws enacted by the balance sheet date. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

11. Impairment of Assets (AS-28) : The management has carried out an impairment test as per AS-28, Impairment of Assets, issued by the Institute of Chartered Accounts of India on all its fixed assets. As there was no impairment, no provision has been made.

12. Provisions : Provisions are recognized for present obligation as a result of past events where it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

 
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