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Accounting Policies of Beeyu Overseas Ltd. Company

Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards under section 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.

b) The financial statements have been prepared under the historical cost convention as modified by revaluation of certain fixed assets.

2. USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liability at the date of the financial statements and the results of operation during the reporting period. Although these estimates are based upon managements'' best knowledge of current events and actions, actual results could differ from these estimates.

3. FIXED ASSETS AND DEPRECIATION

a) Land, Building as at March 31, 2003 are stated at valuation made by an approved valuer at the then current cost. Subsequent acquisition of these assets and other fixed assets are stated at their purchase cost together with any incidental expenses of acquisition/installation including borrowing cost, wherever applicable, directly attributable to the acquisition, construction and production of qualifying assets.

b) Leasehold land is being amortized over the lease period. Depreciation on fixed assets other than Leasehold land is provided on written down value and from April 01, 2006 in accordance with Schedule XIV of the Companies Act 1956.

c) Profit or Loss on disposal of depreciable fixed assets is recognized in the Statement of Profit and Loss.

d) An impairment loss is recognized wherever the carrying value of the Fixed Assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

4. REVENUE RECOGNITION

a) Interest income is accounted on time proportion basis taking in to account the amount outstanding and applicable interest rate.

b) Other Incomes are accounted for on confirmation provided by the constituents.

5. EMPLOYEE BENEFITS

a) Short - term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service has been rendered.

b) Contributions to Provident Fund & other Funds including under the provisions of the Employees'' Provident Fund and Miscellaneous Provisions Act, 1952, will be accounted for on an accrual basis whenever applicable.

c) Leave encashment benefit had been determined on the basis of actuarial valuation up to March 31, 2010. However, during the previous year as well as in current year no Actuarial Valuation was considered necessary in view of resignation of most of the employees.

d) Provision for Gratuity is not made in accounts and is accounted for as and when paid.

6. BORROWING COST

Borrowing cost relating to (i) funds borrowed for acquisition/construction of qualifying assets are capitalised up to the date the assets are put to use, and (ii) funds borrowed for other purposes are charged to the Statement of Profit and Loss.

7. TAXATION

a) Tax liability is estimated considering the provisions of the Income Tax Act, 1961.

b) Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, deferred tax asset is recognised and carried forward to the extent only when there is reasonable certainty that the assets will be adjusted in future. There is no Deferred Tax Liability / Asset at the year end.

8. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

a) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

b) Contingent Liabilities are not recognised but are disclosed in the notes.

c) Contingent Assets are neither recognised nor disclosed in the financial statements.

9. PRIOR PERIOD ITEMS, EXTRA ORDINARY ITEMS, EXCEPTIONAL ITEMS & CHANGES IN ACCOUNTING POLICIES

Prior period items, Extra-ordinary items, Exceptional items and Changes in Accounting Policies having material impact, if any, on the financial affairs of the company are disclosed, wherever applicable.


Mar 31, 2013

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards under section 211 (3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.

b) The financial statements have been prepared under the historical cost convention as modified by revaluation of certain fixed assets.

1.2 USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liability at the date of the financial statements and the results of operation during the reporting period. Although these estimates are based upon managements'' best knowledge of current events and actions, actual results could differ from these estimates.

1.3 FIXED ASSETS AND DEPRECIATION

a) Land, Building as at March 31, 2003 are stated at valuation made by an approved valuer at the then current cost. Subsequent acquisition of these assets and other fixed assets are stated at their purchase cost together with any incidental expenses of acquisition/installation including borrowing cost, wherever applicable, directly attributable to the acquisition, construction and production of qualifying assets.

b) Leasehold land is being amortized over the lease period. Depreciation on fixed assets other than Leasehold land is provided on written down value and from April 01, 2006 in accordance with Schedule XIV of the Companies Act 1956.

c) Profit or Loss on disposal of depreciable fixed assets is recognized in the Statement of Profit and Loss.

d) An impairment loss is recognized wherever the carrying value of the Fixed Assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

1.4 REVENUE RECOGNITION

a) Interest income is accounted on time proportion basis taking in to account the amount outstanding and applicable interest rate.

b) Other Incomes are accounted for on confirmation provided by the constituents.

1.5 EMPLOYEE BENEFITS

a) Short - term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service has been rendered.

b) Contributions to Provident Fund & other Funds including under the provisions of the Employees'' Provident Fund and Miscellaneous Provisions Act, 1952, will be accounted for on an accrual basis whenever applicable.

c) Leave encashment benefit had been determined on the basis of actuarial valuation up to March 31, 2010. However, during the previous year as well as in current year no Actuarial Valuation was considered necessary in view of resignation of most of the employees.

d) Provision for Gratuity is not made in accounts and is accounted for as and when paid.

1.6 BORROWING COST

Borrowing cost relating to (i) funds borrowed for acquisition/construction of qualifying assets are capitalised up to the date the assets are put to use, and (ii) funds borrowed for other purposes are charged to the Statement of Profit and Loss.

1.7 TAXATION

a) Tax liability is estimated considering the provisions of the Income Tax Act, 1961.

b) Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, deferred tax asset is recognised and carried forward to the extent only when there is reasonable certainty that the assets will be adjusted in future. There is no Deferred Tax Liability / Asset at the year end.

1.8 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

a) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

b) Contingent Liabilities are not recognised but are disclosed in the notes.

c) Contingent Assets are neither recognised nor disclosed in the financial statements.

1.9 PRIOR PERIOD ITEMS, EXTRA ORDINARY ITEMS, EXCEPTIONAL ITEMS & CHANGES IN ACCOUNTING POLICIES

Prior period items, Extra-ordinary items, Exceptional items and Changes in Accounting Policies having material impact, if any, on the financial affairs of the company are disclosed, wherever applicable.


Mar 31, 2012

A. Convention

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards under section 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.

B. Basis of Accounting

The financial statements have been prepared under the historical cost convention as modified by revaluation of certain fixed assets.

C. Fixed Assets and Depreciation

Land, Building as at March 31, 2003 are stated at valuation made by an approved valuer at the then current cost. Subsequent acquisition of these assets and other fixed assets are stated at their purchase cost together with any incidental expenses of acquisition/installation including borrowing cost, wherever applicable, directly attributable to the acquisition, construction and production of qualifying assets.

Leasehold land is being amortized over the lease period. Depreciation on fixed assets other than Leasehold land is provided on written down value and from 1st April 2006 in accordance with Schedule XIV of the Companies Act 1956.

Profit or Loss on disposal of depreciable fixed assets is recognized in the Statement of Profit and Loss.

An Impairment loss is recognized wherever the carrying value of the Fixed Assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

D. Employee Benefits

i) Post Retirement Benefits

a) Provident Fund

The Company makes regular contributions to Provident Fund maintained with the Regional Provident Fund Commissioner. Such contributions are recognized in the Statement of Profit & Loss on accrual basis.

b) Leave Encashment

Leave encashment benefit had been determined on the basis of actuarial valuation upto March 31,2010. However, during the previous year as well as in current year no Acturial Valuation was considered necessary in view of resignation of most of the employees.

ii) Other employee benefits are accounted for on accrual basis.

E. Deferred Taxation

Deferred Tax is recognised using the liability method, at the current rate of taxation, on all timing differences to the extent it is probable that a liability or asset will crystallize. Deferred Tax Assets are recognised subject to consideration of prudence and to the extent of deferred tax liability. These are periodically reviewed to reassess realisation thereof. There is no Deferred Tax Liability/Asset at the year end.

F. Borrowing Cost

Borrowing costs attributable to acquisition and/or construction of qualifying assets are capitalized as a part of the cost of such assets upto the date when such assets are ready for its intended use. Other borrowing costs are recognized in the Statement of Profit & Loss on accrual basis.


Mar 31, 2010

A. Convention

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956 of India.

B. Basis of Accounting

The financial statements have been prepared underthe historical cost convention as modified by revaluation of certain fixed assets.

C. Fixed Assets and Depreciation

Land, Building, Estate & Development and Plant & Machinery as at 31 st March 2003 are stated at valuation made by an approved valuer at the then current cost. Subsequent acquisition of these assets and other fixed assets are stated at their purchase cost together with any incidental expenses of acquisition/installation including borrowing cost, wherever applicable, directly attributable to the acquisition, construction and production of qualifying assets.

Leasehold land is being amortized over the lease period. Depreciation on fixed assets other than Leasehold land is provided on written down value and from 1 st April 2006 new factory building and plant & machinery at Ooty is provided on Straight Line Method, in accordance with Schedule XIV of the Companies Act 1956, of India.

Profit or Loss on disposal of fixed assets is recognized in the Profit and Loss Account.

An Impairment loss is recognized wherever the carrying value of the Fixed Assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

D. Investments

Long term investments are stated at cost. Provision is made for diminution, other than temporary, in the value of investments, wherever applicable.

E. Inventories

Inventories are stated at cost or net realizable value, whichever is lower. Cost is determined on FIFO basis, except for manufactured tea, which is valued at weighted average method and comprises of expenditure incurred in the normal course of business in bringing such inventories to their location and condition including appropriate overheads, wherever applicable.

F. Foreign Currency Transactions

Transactions in foreign currency are recorded in rupee at the exchange rate prevailing at the date of transactions. Gains/Losses arising out of fluctuations in the exchange rates are recognised in Profit & Loss Account in the period in which they arise. Premium or discounts on forward contracts are amortized over the , life of the contract. Foreign exchange forward contracts are revalued at the Balance Sheet date and the exchange difference between the spot rate at the date of the contract and the spot rate on the balance sheet -».. * date is recognized as gain/loss in the Profit & Loss Account.

G. Sales and Services

Sales and services represent the invoiced value of goods sold or services rendered in accordance with the terms of the contract, net of taxes and duties.

H. Grants and Subsidy

Grants/Subsidy, for acquiring specific fixed assets are deducted from the cost of the asset concerned otherwise it is recognized as income in Profit & Loss A/c .

I. Employee Benefits

i) Post Retirement Benefits

a) Provident Fund

The Company makes regular contributions to Provident Fund maintained with the Regional Provident Fund Commissioner. Such contributions are recognized in the Profit & Loss Account on accrual basis.

b) Superannuation Fund

The company operates a non-contributory Superannuation Scheme with Life Insurance Corporation of India, towards future payments of pensions for its eligible employees. The company contributes 15% of the employees current salary to the above fund which is recognised in the profit and loss.

c) Gratuity

The Company has Gratuity Fund administered by trustees which is independent of the Companys Finance. The Gratuity Fund has taken a Group Gratuity Policy which is maintained with Life Insurance Corporation of India (LIC) for future payment of gratuity liability to its employees. Consequent to the adoption of Accounting Standard 15 ( Revised) on "Employee "¦*"- Benefits", gratuity liability as on 31 st March 2010 has been determined on the basis of actuarial valuation in accordance with the method stated in the said standard and such liability has been provided for in the accounts. Annual premium determined by LIC has been contributed.

d) Leave Encashment

Leave encashment benefit has been determined on the basis of actuarial valuation as at 31st March of each year and such liability is provided for in the accounts. In the current year, consequent to the adoption of AS-15 (Revised), such actuarial valuation has been done based on the method prescribed in the said standard.

Actuarial gains and losses, wherever applicable, are recognized in the Income & Expenditure Account.

ii) Other employee benefits are accounted for on accrual basis.

J. Deferred Taxation

Deferred Tax is recognised using the liability method, at the current rate of taxation, on all timing differences to the extent it is probable that a liability or asset will crystallize. Deferred Tax Assets are recognised subject to consideration of prudence and to the extent of deferred tax liability. These are periodically reviewed to reassess realisation thereof.

K. Miscellaneous Expenditure

Prelirhinary and preoperative expenses are being amortized over a period of ten years.

Public issue and amalgamation expenses are being amortized over a period of five years.

L. Borrowing Cost

Borrowing costs attributable to acquisition and/or construction of qualifying assets are capitalized as a part of the cost of such assets upto the date when such assets are ready for its intended use. Other borrowing costs are charged to Profit & loss Account.

M. Financial Instruments

In respect of Forward Contracts, premium paid provision for losses on restatement and gains/ losses on settlement are recognised along with the underlying transactions and charged to Profit and Loss Account. The company follows the principles of prudence and assesses the losses, if any, by marking to market all its forward contracts taken to cover their foreign exchange risk in respect of future receivables by way of firm commitments and highly probable forecast transactions outstanding at the balance sheet date and provide for such losses.

 
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