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Accounting Policies of B&A Ltd. Company

Mar 31, 2015

A) Basis of Preparation

These financial statements have been prepared in accordance with the historicl cost convention on an accrual basis and in conformity with the relevant accounting standards as notified under the Companies(Accounts) Rules,2014 and the Companies Act,2013.

b) Fixed Assets Fixed assets:-

i) Fixed Assets are stated at cost of acquisition together with any incidental expenses on acquisition.

ii) Expenditure on Replanting and Replacement are capitalised under Lease Hold Land Plantations as per consistent policy of the Company, and Tea Board Replanting and Extension Planting Subsidy are deducted from the value of Lease Hold Land & Plantations as and when received.

iii) Capital subsidy received from Government Authorities is treated as capital receipt and shown under Capital Reserve.

iv) Loss on account of impairment of assets is recognised if and when the carrying amount of Fixed Assets exceeds the recoverable amount i.e higher of net selling price and value in use.

Intangible assets :-

The expenses of computer software installed at the companys gardens,corporate office and head office have been capitalised.

c) Capital work-in-progress

These are stated at cost which includes payments for availing facilities in connection with the work -in-progress

d) Depreciation

i) Depreciation has been provided on staight line method as per Schedule-II of the Companies Act, 2013

ii) Depreciation on Lease Hold Land used for Tea Plantation has not been provided since on expiry of Lease period the Lease is renewed.

e) Investments

Investments in shares are stated at cost less adjustment for permanent dimunition in value thereof to the extent determined. Profit /Loss on disposals of such investment are recognised as income/ expenditure.

f) Inventories

Inventories are valued as under:

- Stores and Spare Parts : At lower of cost (determined under weighted average method) or net realisable value.

- Stock of tea : Valued at average cost or net realisable value, whichever is lower.

g) Borrowing Cost

Interest and other cost in connection with borrowing of funds by the Company are recognised as expenses in the period on which they are incurred unless these are attributable to the acquisition and construction of qualifying assets and added to the cost up to the date on which such assets are ready for their intened use.

h) Taxes on Income

Current Tax represents the amount computed as per prevailing taxation laws.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forwared only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i) Foreign Currency Transactions

Sales and expenditure in foreign currency are translated at rupee value at rates prevailing on the date of transactions.

j) Retirement Benefits

i) Gratuity is accounted for on the basis of actuarial valuation.

ii) Provident funds are accounted for on accrual basis with contribution to recognised funds.

k) Government Grants

Government grants related to specific fixed assets are deducted from gross values of related assets in arriving at their book value.

Government grants related to revenue are recognised in the Profit and Loss Statments.

l) Sales

Sales are recognised on passing of property in goods i.e. delivery as per terms of sale or on completion of auction in case of auction sale.

m) Recognition of Income and Expenditure

i) Income other than sales are recognised on accrual basis,

ii) Items of expenditure are recognised on accrual basis.

n) Research and Development Contribution made to approved Research & Development Associations is charged as revenue on accrual basis.


Mar 31, 2014

A) Fixed Assets

Tangible assets:-

i) Free hold Land, Lease hold Land & Plantations, Buildings, Plant & Machinery, Electrical Instal- lations and Vehicles situated at the company''s tea estates were revalued as at 31st Decem- ber, 1993, at net of replacement cost by approved valuers appointed for the purpose. The resultant incremental effect in the value of the related fixed assets arising from the aforesaid revaluation over and above the increase which had arisen as a result of prior revaluation of the company''s Free Hold Land and Lease Hold Land & Plantations, Buildings and Plant and Machinery at the tea estates on 1.4.85 at net of replacement cost was transferred to Revalua- tion Reserve.

ii) Other Fixed Assets items [ i.e. items not covered by revaluation referred to in (i) above] are stated at cost.

iii) Additions to assets [ referred to in (i) above] subsequent to the date of revaluation are stated at cost.

iv) Assets acquired on hire purchase are capitalised at cash cost.

v) Expenditure on Replanting and Replacement are capitalised under Lease Hold Land & Plantations as per consistent policy of the company and Tea Board Replanting and Extension Planting Subsidy are deducted from the value of Lease Hold Land & Plantations as and when received.

vi) Capital subsidy received from Statutory Authorities is treated as capital receipt and shown under Capital Reserve.

vii) Loss on account of Impairment of Assets is to be recognised if and when the carrying amount of Fixed Assets exceeds the recoverable amount i.e higher of net selling price and value in use.

Intangible assets :-

The expenses of computer software installed at the company''s gardens,corporate office and Registered office have been capitalised.

b) Capital work-in-progress

These are stated at cost which includes payments for availing facilities in connection with the work -in-progress.- Nil

c) Depreciation

i) Depreciation on Fixed Assets upto 31.3.85 has been provided for on Written Down Value Method.

ii) From 1.4.85, depreciation on Fixed Assets covered by revaluation referred to in a(i) above is calculated at their revalued amounts on the Straight Line Method at rates specified in Schedule

XIV to the Companies Act,1956 and accordingly includes additional depreciation charge. An amount equivalent to the aforesaid additional depreciation charge is transferred to the credit of the year''s Profit & Loss Account from Revaluation Reseve.

iii) From 1.4.85, depreciation on other assets items [i.e. not covered by revaluation referred to in

(a)(i)above] is calculated on Straight Line Method at rates specified in Schedule XIV to the Companies Act,1956

iv) Depreciation on Lease Hold Land used for Tea Plantation has not been provided since on expiry of Lease period when lease rent is paid the Lease Hold Land is renewed for similar period on which lease was granted. During the year under audit the free-hold and lease- hold land and plantation have been seperately shown.

d) Investments

Investments in Shares are stated at cost less adjustment for permanent dimunition in value thereof to the extent determined. Profit /Loss on disposals of such investment are recognised as income/expenditure.

e) Inventories

Inventories are valued as under:

- Stores and Spare Parts : At lower of cost (determined under weighted average method) and net realisable value.

- Stock of tea : Valued at average cost or net realisable value, whichever is lower.

f) Foreign Currency Transactions

Sales and expenditure in foreign currency are translated at rupee value at rates ruling on the date of transactions.

g) Retirement Benefits

i) Gratuity is accounted for on the basis of actuarial valuation.

ii) Provident funds are accounted for on accrual basis with contribution to recognised funds.

h) Sales

Sales are recognised on passing of property in goods i.e. delivery as per terms of sale or an completion of auction in case of auction sale.

i) Recognition of Income and Expenditure

i) Items of Income are recognised on accrual basis except Dividend,refund of government dues, Taxes and sundry receipts which are treated on cash basis.

ii) Items of Expenditure are recognised on accrual basis.

j) Research and Development

Contribution made to approved Research & Development Associations is charged as revenue on accrual basis.


Mar 31, 2013

A) Fixed Assets

Tangible assets:- i) Free hold Land, Lease hold Land & Plantations, Buildings, Plant & Machinery, Electrical Installations and Vehicles situated at the Company''s tea estates were revalued as at 31st December, 1993, at net of replacement cost by approved valuers appointed for the purpose. The resultant incremental effect in the value of the related fixed assets arising from the aforesaid revaluation over and above the increase which had arisen as a result of prior revaluation of the Company''s Free Hold Land and lease Hold Land & Plantations, Buildings and Plant and Machinery at the tea estates on 1.4.85 at net of replacement cost was transferred to Revaluation Reserve.

ii) Other Fixed Assets items [ i.e. items not covered by revaluation referred to in (i) above] are stated at cost.

iii) Additions to assets [ referred to in (i) above] subsequent to the date of revaluation are stated at cost.

iv) Assets acquired on hire purchase are capitalised at cash cost.

v) Expenditure on Replanting and Replacement are capitalised under Lease Hold Land & Plantations as per consistent policy of the Company and Tea Board Replanting and Extension Planting Subsidy are deducted from the value of Lease Hold Land & Plantations as and when received.

vi) Capital subsidy received from Statutory Authorities is treated as capital receipt and shown under Capital Reserve.

vii) Loss on account of Impairment of Assets is to be recognised if and when the carrying amount of Fixed Assets exceeds the recoverable amount i.e higher of net selling price and value in use.

Intangible assets :- The expenses of computer software installed at the company''s gardens,corporate office and Regd. office have been capitalised.

b) Capital work-in-progress

These are stated at cost which includes payments for availing facilities in connection with the work -in-progress.- Nil

c) Depreciation

i) Depreciation on Fixed Assets upto 31.3.85 has been provided for on Written Down Value Method.

ii) From 1.4.85, depreciation on Fixed Assets covered by revaluation referred to in a(i) above is calculated at their revalued amounts on the Straight Line Method at rates specified in Schedule

XIV to the Companies Act,1956 and accordingly includes additional depreciation charge. An amount equivalent to the aforesaid additional depreciation charge is transferred to the credit of the year''s Profit & Loss Account from Revaluation Reseve :- iii) From 1.4.85, depreciation on other assets items [i.e. not covered by revaluation referred to in (a)(i)above] is calculated on Straight Line Method at rates specified in Schedule XIV to the Companies Act,1956

iv) Depreciation on Lease Hold Land used for Tea Plantation has not been provided since on expiry of Lease period when lease rent is paid the Lease Hold Land is renewed for similar period on which lease was granted. During the year under audit the free-hold and lease- hold land and plantation have been seperately shown.

d) Investments

Investments in Shares are stated at cost less adjustment for permanent dimunition in value thereof to the extent determined. Profit /Loss on disposals of such investment are recognised as income/expenditure.

e) Inventories

Inventories are valued as under:

– Stores and Spare Parts : At lower of cost (determined under weighted average method) and net realisable value.

– Stock of tea : Valued at average cost or net realisable value, whichever is lower.

f) Foreign Currency Transactions

Sales and expenditure in foreign currency are translated at rupee value at rates ruling on the date of transactions.

g) Retirement Benefits

i) Gratuity is accounted for on the basis of actuarial valuation.

ii) Provident funds are accounted for on accrual basis with contribution to recognised funds.

h) Sales

Sales are recognised on passing of property in goods i.e. delivery as per terms of sale or an completion of auction in case of auction sale.

i) Recognition of Income and Expenditure

i) Items of Income are recognised on accrual basis except Dividend,refund of government dues, Taxes and sundry receipts which are treated on cash basis.

ii) Items of Expenditure are recognised on accrual basis.

j) Research and Development

Contribution made to approved Research & Development Associations is charged as revenue on accrual basis.


Mar 31, 2012

A) Fixed Assets Tangible assets:-

i) Free-hold Land, Lease-Hold Land & Plantations, Buildings, Plant & Machinery, Electrical Installations and Vehicles situated at the Company's tea estates were revalued as at 31st December, 1993, at net of replacement cost by approved valuers appointed for the purpose. The resultant incremental effect in the value of the related fixed assets arising from the aforesaid revaluation over and above the increase which had arisen as a result of prior revalu- ation of the Company's Free-Hold Land and lease-hold Land & Plantations, Buildings and Plant and Machinery at the tea estates on 1.4.85 at net of replacement cost was transferred to Revaluation Reserve.

ii) Other Fixed Assets items [ i.e. items not covered by revaluation referred to in (i) above] are stated at cost.

iii) Additions to assets [ referred to in (i) above] subsequent to the date of revaluation are stated at cost.

iv) Assets acquired on hire purchase are capitalised at cash cost.

v) Expenditure on Replanting and Replacement are capitalised under Lease-Hold Land & Plantations as per consistent policy of the Company and Tea Board Replanting and Extension Planting Subsidy are deducted from the value of Lease-hold Land & Plantations as and when received.

vi) Capital subsidy received from Statutory Authorities is treated as capital receipt and shown under Capital Reserve.

vii) Loss on account of Impairment of Assets is to be recognised if and when the carrying amount of Fixed Assets exceeds the recoverable amount i.e higher of net selling price and value in use.

Intangible assets :-

The expenses of computer software installed at the company's gardens,corporate office and head office have been capitalised.

b) Capital work-in-progress

These are stated at cost which includes payments for availing facilities in connection with the work -in-progress.- Nil

c) Depreciation

i) Depreciation on Fixed Assets upto 31.3.85 has been provided for on Written Down Value Method.

ii) From 1.4.85, depreciation on Fixed Assets covered by revaluation referred to in a(i) above is calculated at their revalued amounts on the Straight Line Method at rates specified in Schedule XIV to the Companies Act,1956 and accordingly includes additional depreciation charge. An amount equivalent to the aforesaid additional depreciation charge is transferred to the credit of the year's Profit & Loss Account from Revaluation Reserve.

iii) From 1.4.85, depreciation on other assets items [i.e. not covered by revaluation referred to in (a)(i)above] is calculated on Straight Line Method at rates specified in Schedule XIV to the Companies Act,1956

iv) Depreciation on Lease-Hold Land used for Tea Plantation has not been provided since on expiry of Lease period when lease rent is paid the Lease-Hold Land is renewed for similar period on which lease was granted. During the year under audit the free-hold and lease- hold land and plantation have been seperately shown.

d) Investments

Investments in Shares are stated at cost less adjustment for permanent dimunition in value thereof to the extent determined. Profit /Loss on disposals of such investment are recognised as income/ expenditure.

e) Inventories

Inventories are valued as under:

- Stores and Spare Parts : At lower of cost (determined under weighted average method) and net realisable value.

- Stock of tea : Valued at average cost or net realisable value, whichever is lower.

f) Foreign Currency Transactions

Sales and expenditure in foreign currency are translated at rupee value at rates ruling on the date of transactions.

g) Retirement Benefits

i) Gratuity is accounted for on the basis of actuarial valuation.

ii) Provident funds are accounted for on accrual basis with contribution to recognised funds.

h) Sales

Sales are inclusive of excise duty,other than export sales, and recognised on passing of property in goods i.e. delivery as per terms of sale or on completion of auction in case of auction sale.

i) Recognition of Income and Expenditure

i) Items of Income are recognised on accrual basis except Dividend,refund of government dues, Taxes and sundry receipts which are treated on cash basis.

ii) Items of Expenditure are recognised on accrual basis.

j) Research and Development

Contribution made to approved Research & Development Associations is charged as revenue on accrual basis.


Mar 31, 2011

A) FIXED ASSETS

i) Land & Plantations, Buildings, Plant & Machinery, Electrical Installations and Vehicles situated at the Company's tea estates were revalued as at 31st December 1993, at net of replacement cost by approved valuers appointed for the purpose. The resultant incremental effect in the value of the related fixed assets arising from the aforesaid revaluation over and above the increase which had arisen as a result of prior revaluation of the Company's Land and Plantations, Buildings and Plant & Machinery at the tea estates on 1.4.85 at net of replacement cost was transferred to Revaluation Reserve.

ii) Other Fixed Assets items [ i.e. items not covered by revaluation referred to in (i) above] are stated at cost.

iii) Additions to assets [ referred to in (i) above] subsequent to the date of revaluation are stated at cost.

iv) Assets acquired on hire purchase are capitalised at cash cost.

v) Expenditure on Replanting and Replacement are capitalised under Land & Plantations as per consistent policy of the Company and Tea Board Replanting and Extension Planting Subsidy are deducted from the value of Land & Plantations as and when received.

vi) Capital subsidy received from Statutory Authorities is treated as capital receipt and shown under Capital Reserve.

vii) Loss on account of Impairment of Assets is to be recognised if and when the carrying amount of Fixed Assets exceeds the recoverable amount i.e. higher of net selling price and value in use.

b) CAPITAL WORK- IN- PROGRESS

These are stated at cost which includes payments for availing facilities in connection with the Work-in-progress.

c) DEPRECIATION

i) Depreciation on Fixed Assets upto 31.3.85 has been provided for on Written Down Value Method.

ii) From 1.4.85, depreciation on Fixed Assets covered by revaluation referred to in a(i) above is calculated at their revalued amounts on the Straight Line Method at rates specified in Schedule XIV to the Companies Act,1956 and accordingly includes additional depreciation charge. An amount equivalent to the aforesaid additional depreciation charge is transferred to the credit of the year's Profit and Loss Account from Revaluation Reserve.

iii) From 1.4.85, depreciation on other assets items [i.e. not covered by revaluation referred to in a(i)above] is calculated on Straight Line Method at rates specified in Schedule XIV to the Companies Act,1956.

d) INVESTMENTS

Investments in Shares are stated at cost less adjustment for permanent dimunition in value thereof to the extent determined. Profit /Loss on disposals of such investments are recognised as income/ expenditure.

e) INVENTORIES

Inventories are valued as under :

- Stores and Spare Parts : At lower of cost (determined under weighted average method) and net realisable value.

- Stock of Tea : Valued at average cost or net realisable value, whichever is lower.

f) FOREIGN CURRENCY TRANSACTIONS

Sales and expenditure in foreign currency are translated at rupee value at rates ruling on the date of transactions.

g) RETIREMENT BENEFITS

i) Gratuity is accounted for on the basis of actuarial valuation.

ii) Provident funds payments are accounted for on accrual basis with contribution to recognised funds.

h) SALES

Sales are inclusive of excise duty, other than export sales, and recognised on passing of property in goods i.e. delivery as per terms of sale or on completion of auction in case of auction sale.

i) RECOGNITION OF INCOME AND EXPENDITURE

i) Items of Income are recognised on accrual basis except Dividend, Refund of Government dues, Taxes and sundry receipts which are treated on cash basis.

ii) Items of Expenditure are recognised on accrual basis.

j) RESEARCH AND DEVELOPMENT

Contribution made to approved Research & Development Associations is charged as revenue on accrual basis.

 
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